EX-99.2 3 ex992ifs9302023.htm EX-99.2 Document


INVESTOR FINANCIAL SUPPLEMENT
September 30, 2023
thehartfordlogoa.jpg

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear in this document. These measures are defined within the Discussion of Non-GAAP and Other Financial Measures section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
As of October 25, 2023
Address:
One Hartford Plaza  A.M. Best  Standard & Poor’s  Moody’s
Hartford, CT 06155Insurance Financial Strength Ratings:      
Hartford Fire Insurance Company  A+  A+  A1
Hartford Life and Accident Insurance Company  A+  A+  A1
Navigators Insurance CompanyA+A+NR
- Hartford Fire Insurance Company and Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address:- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.comNR - Not Rated
Other Ratings:      
Contact:Senior debt  a-BBB+Baa1
Susan Spivak BernsteinJunior subordinated debenturesbbbBBB-Baa2
Senior Vice PresidentPreferred stockbbbBBB-Baa3
Investor Relations
Phone (860) 547-6233- The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
TRANSFER AGENT
Stockholder correspondence should be mailed to:Overnight correspondence should be mailed to:
ComputershareComputershare
P.O. Box 505000462 South 4th Street, Suite 1600
Louisville, KY 40233Louisville, KY 40202
    
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively. This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

On January 1, 2023, the Company adopted the Financial Accounting Standards Board's ("FASB") long-duration targeted improvements ("LDTI") guidance, which was applied on a modified retrospective basis as of January 1, 2021. Impacted prior periods in this document have been restated to reflect the adoption of LDTI. For additional information refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements in the Company's most recent Quarterly Report on Form 10-Q.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTOR FINANCIAL SUPPLEMENT
TABLE OF CONTENTS


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
HIGHLIGHTS
Net income$651 $547 $535 $592 $340 $444 $443 $1,733 $1,227 
Net income available to common stockholders [1]$645 $542 $530 $587 $334 $439 $438 $1,717 $1,211 
Core earnings*$708 $588 $536 $749 $472 $716 $559 $1,832 $1,747 
Total revenues$6,168 $6,049 $5,910 $6,016 $5,580 $5,373 $5,393 $18,127 $16,346 
Total assets$74,516 $73,895 $74,249 $73,008 $71,786 $72,395 $75,255 
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders$2.12 $1.75 $1.69 $1.85 $1.04 $1.34 $1.32 $5.55 $3.70 
Core earnings*$2.32 $1.90 $1.71 $2.36 $1.47 $2.19 $1.68 $5.92 $5.34 
Diluted earnings per common share
Net income available to common stockholders$2.09 $1.73 $1.66 $1.82 $1.02 $1.32 $1.30 $5.48 $3.65 
Core earnings*$2.29 $1.88 $1.68 $2.32 $1.45 $2.16 $1.66 $5.84 $5.27 
Weighted average common shares outstanding (basic)304.6 309.4 314.0 317.5 322.1 327.4 332.3 309.3 327.3 
Dilutive effect of stock compensation4.4 3.9 4.6 5.1 4.2 4.4 5.0 4.3 4.5 
Weighted average common shares outstanding and dilutive potential common shares (diluted)309.0 313.3 318.6 322.6 326.3 331.8 337.3 313.6 331.8 
Common shares outstanding302.4 307.1 311.8 315.1 319.5 324.7 330.7 
Book value per common share$44.13 $45.00 $44.92 $42.34 $39.64 $42.84 $47.04 
Per common share impact of accumulated other comprehensive income [2]13.82 11.47 10.44 12.19 13.70 10.01 5.17 
Book value per common share (excluding AOCI)*$57.95 $56.47 $55.36 $54.53 $53.34 $52.85 $52.21 
Book value per diluted share$43.50 $44.43 $44.27 $41.67 $39.13 $42.27 $46.34 
Per diluted share impact of AOCI13.62 11.33 10.28 11.99 13.52 9.87 5.09 
Book value per diluted share (excluding AOCI)*$57.12 $55.76 $54.55 $53.66 $52.65 $52.14 $51.43 
Common shares outstanding and dilutive potential common shares306.8 311.0 316.4 320.2 323.7 329.1 335.7 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")17.7 %14.4 %12.8 %11.7 %12.8 %13.1 %15.5 %
Core earnings ROE*14.9 %13.6 %14.3 %14.5 %14.3 %14.0 %14.8 %
[1]Net income available to common stockholders includes the impact of preferred stock dividends.
[2]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement benefit plan adjustments.
[3]For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page 33.

1
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Earned premiums$5,310 $5,220 $5,063 $5,019 $4,910 $4,810 $4,651 $15,593 $14,371 
Fee income330 328 319 318 328 341 362 977 1,031 
Net investment income597 540 515 640 487 541 509 1,652 1,537 
Net realized gains (losses) (90)(64)(7)22 (166)(338)(145)(161)(649)
Other revenues21 25 20 17 21 19 16 66 56 
Total revenues 6,168 6,049 5,910 6,016 5,580 5,373 5,393 18,127 16,346 
Benefits, losses and loss adjustment expenses3,543 3,580 3,482 3,537 3,407 3,074 3,120 10,605 9,601 
Amortization of deferred policy acquisition costs ("DAC")517 502 491 473 464 450 437 1,510 1,351 
Insurance operating costs and other expenses 1,226 1,225 1,216 1,200 1,206 1,225 1,210 3,667 3,641 
Interest expense50 50 50 50 50 51 62 150 163 
Amortization of other intangible assets18 17 18 18 18 17 18 53 53 
Restructuring and other costs [1]1 3 — 3 3 2 5 4 10 
Total benefits, losses and expenses5,355 5,377 5,257 5,281 5,148 4,819 4,852 15,989 14,819 
Income before income taxes813 672 653 735 432 554 541 2,138 1,527 
Income tax expense162 125 118 143 92 110 98 405 300 
Net income [2]651 547 535 592 340 444 443 1,733 1,227 
Preferred stock dividends 6 5 5 5 6 5 5 16 16 
Net income available to common stockholders645 542 530 587 334 439 438 1,717 1,211 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax76 53 7 (22)166 336 146 136 648 
Restructuring and other costs, before tax [1]1 3 — 3 3 2 5 4 10 
Loss on extinguishment of debt, before tax— — — — — 9 — — 9 
Integration and other non-recurring M&A costs, before tax [3]2 2 2 5 5 6 5 6 16 
Change in deferred gain on retroactive reinsurance, before tax — — — 229 — — — — — 
Income tax benefit [4](16)(12)(3)(53)(36)(76)(35)(31)(147)
Core earnings [2]$708 $588 $536 $749 $472 $716 $559 $1,832 $1,747 
[1]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
[2]Adopting LDTI resulted in an after tax increase (decrease) to net income and core earnings of $3, $1, $2 and $(2) for the three months ended December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.
[3]Includes integration costs in connection with the 2019 acquisition of Navigators Group and 2017 acquisition of Aetna's group life and disability business.
[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.

2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income (loss):
Commercial Lines$519 $458 $421 $566 $286 $389 $383 $1,398 $1,058 
Personal Lines(12)(60)(1)44 (36)6 77 (73)47 
Property & Casualty Other Operations ("P&C Other Operations")9 9 6 (184)6 (20)8 24 (6)
Property & Casualty ("P&C")516 407 426 426 256 375 468 1,349 1,099 
Group Benefits146 121 92 143 86 106 (8)359 184 
Hartford Funds41 45 41 45 41 34 42 127 117 
Sub-total703 573 559 614 383 515 502 1,835 1,400 
Corporate (52)(26)(24)(22)(43)(71)(59)(102)(173)
Net income 651 547 535 592 340 444 443 1,733 1,227 
Preferred stock dividends6 5 5 5 6 5 5 16 16 
Net income available to common stockholders$645 $542 $530 $587 $334 $439 $438 $1,717 $1,211 
Core earnings (loss):
Commercial Lines$542 $493 $436 $562 $363 $544 $456 $1,471 $1,363 
Personal Lines(8)(57)— 42 (28)21 84 (65)77 
P&C Other Operations11 10 8 (5)10 (13)11 29 8 
P&C545 446 444 599 345 552 551 1,435 1,448 
Group Benefits170 133 90 144 117 163 6 393 286 
Hartford Funds45 44 37 39 47 44 50 126 141 
Sub-total760 623 571 782 509 759 607 1,954 1,875 
Corporate (52)(35)(35)(33)(37)(43)(48)(122)(128)
Core earnings$708 $588 $536 $749 $472 $716 $559 $1,832 $1,747 



3
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATE [1]CONSOLIDATED
Sept 30 2023Dec 31 2022Sept 30 2023Dec 31 2022Sept 30 2023Dec 31 2022Sept 30 2023Dec 31 2022Sept 30 2023Dec 31 2022
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value$30,061 $28,222 $7,720 $7,736 $— $— $181 $273 $37,962 $36,231 
Fixed maturities, at fair value using the fair value option275 275 57 58 — — — — 332 333 
Equity securities, at fair value466 1,194 98 308 117 115 197 184 878 1,801 
Mortgage loans, net4,404 4,346 1,612 1,654 — — — — 6,016 6,000 
Limited partnerships and other alternative investments3,680 3,311 984 866 — — — — 4,664 4,177 
Other investments152 137 8 7 8 15 — — 168 159 
Short-term investments1,752 2,475 317 325 246 202 985 857 3,300 3,859 
Total investments40,790 39,960 10,796 10,954 371 332 1,363 1,314 53,320 52,560 
Cash91 193 10 27 7 6 3 3 111 229 
Restricted cash62 104 8 11 — — — — 70 115 
Premiums receivable and agents’ balances, net4,944 4,369 591 580 — — — — 5,535 4,949 
Reinsurance recoverables, net [2]6,467 6,455 249 250 — — 247 259 6,963 6,964 
Deferred policy acquisition costs ("DAC")1,091 966 33 32 — — — — 1,124 998 
Deferred income taxes 919 902 116 58 7 8 444 469 1,486 1,437 
Goodwill778 778 723 723 181 181 229 229 1,911 1,911 
Property and equipment, net780 808 57 57 8 9 49 53 894 927 
Other intangible assets348 370 367 398 10 10 — — 725 778 
Other assets1,561 1,356 233 188 83 89 500 507 2,377 2,140 
Total assets$57,831 $56,261 $13,183 $13,278 $667 $635 $2,835 $2,834 $74,516 $73,008 
Unpaid losses and loss adjustment expenses$33,453 $33,083 $8,233 $8,160 $— $— $— $— $41,686 $41,243 
Reserves for future policy benefits [2]— — 299 319 — — 164 183 463 502 
Other policyholder funds and benefits payable [2]— — 412 419 — — 233 239 645 658 
Unearned premiums8,636 7,779 44 36 — — — — 8,680 7,815 
Debt— — — — — — 4,361 4,357 4,361 4,357 
Other liabilities2,762 2,434 191 254 142 143 1,907 1,926 5,002 4,757 
Total liabilities44,851 43,296 9,179 9,188 142 143 6,665 6,705 60,837 59,332 
Common stockholders' equity, excluding AOCI*15,233 14,977 4,653 4,623 525 492 (2,888)(2,909)17,523 17,183 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax(2,253)(2,012)(649)(533)— — (1,276)(1,296)(4,178)(3,841)
Total stockholders' equity12,980 12,965 4,004 4,090 525 492 (3,830)(3,871)13,679 13,676 
Total liabilities and stockholders' equity$57,831 $56,261 $13,183 $13,278 $667 $635 $2,835 $2,834 $74,516 $73,008 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of approximately $1.0 billion as of September 30, 2023 and December 31, 2022, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
[2]Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold in May 2018.

4
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022
DEBT
Short-term debt $— $— $— $— $— $— $591 
Senior notes3,862 3,861 3,859 3,858 3,857 $3,856 $3,855 
Junior subordinated debentures499 499 499 499 499 499 499 
Total debt $4,361 $4,360 $4,358 $4,357 $4,356 $4,355 $4,945 
STOCKHOLDERS’ EQUITY
Total stockholders’ equity$13,679 $14,152 $14,340 $13,676 $12,999 $14,245 $15,890 
Less: Preferred stock334 334 334 334 334 334 334 
Less: AOCI(4,178)(3,524)(3,254)(3,841)(4,377)(3,249)(1,710)
Common stockholders' equity, excluding AOCI$17,523 $17,342 $17,260 $17,183 $17,042 $17,160 $17,266 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$18,040 $18,512 $18,698 $18,033 $17,355 $18,600 $20,835 
Total capitalization, excluding AOCI, net of tax*$22,218 $22,036 $21,952 $21,874 $21,732 $21,849 $22,545 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI24.2 %23.6 %23.3 %24.2 %25.1 %23.4 %23.7 %
Total debt to capitalization, excluding AOCI*19.6 %19.8 %19.9 %19.9 %20.0 %19.9 %21.9 %
Total debt and preferred stock to capitalization, including AOCI26.0 %25.4 %25.1 %26.0 %27.0 %25.2 %25.3 %
Total debt and preferred stock to capitalization, excluding AOCI*21.1 %21.3 %21.4 %21.4 %21.6 %21.5 %23.4 %
Total rating agency adjusted debt to capitalization [1] [2]25.7 %25.0 %24.7 %25.7 %27.4 %25.7 %25.1 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]13.6:112.8:112.6:110.1:18.9:18.9:18.0:1
[1]The leverage calculation reflects adjustments, as applicable, related to defined benefit plans' unfunded pension liability, lease liabilities and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.3 billion and $0.5 billion as of September 30, 2023 and 2022, respectively.
[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.
[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.

5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
SEPTEMBER 30, 2023

P&C GROUP BENEFITS
U.S. statutory net income [1][2]$1,259 $446 
U.S. statutory capital [2][3][4]$12,274 $2,628 
U.S. GAAP adjustments [2]:
DAC1,050 33 
Non-admitted deferred tax assets [5]224 150 
Deferred taxes [6](52)(192)
Goodwill141 723 
Other intangible assets43 367 
Non-admitted assets other than deferred taxes910 75 
Asset valuation and interest maintenance reserve— 311 
Benefit reserves(88)380 
Unrealized gains (losses) on investments(2,716)(1,053)
Deferred gain on retroactive reinsurance agreements [7](762)— 
Other, net962 582 
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]11,986 4,004 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group994 — 
Total U.S. GAAP stockholders’ equity$12,980 $4,004 
[1]Statutory net income is for the nine months ended September 30, 2023.
[2]Excludes insurance operations based in the U.K.
[3]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital."
[4]The statutory capital for property and casualty insurance subsidiaries in this table does not include the value of an intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company.
[5]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
[6]Represents the tax timing differences between U.S. GAAP and U.S. STAT.
[7]Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and asbestos and environmental adverse development cover ("A&E ADC") agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.



6
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022
Net unrealized gain (loss) on fixed maturities, AFS [1]$(2,948)$(2,277)$(2,008)$(2,594)$(3,038)$(1,858)$(261)
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")
(9)(10)(13)(7)(7)(2)(2)
Net gains on cash flow hedging instruments27 31 48 40 69 30 5 
Total net unrealized gain (loss)(2,930)(2,256)(1,973)(2,561)(2,976)(1,830)$(258)
Foreign currency translation adjustments35 36 33 31 14 33 41 
Liability for future policy benefits adjustments [1]47 32 27 35 37 13 (16)
Pension and other postretirement plan adjustments(1,330)(1,336)(1,341)(1,346)(1,452)(1,465)(1,477)
Total AOCI [1]$(4,178)$(3,524)$(3,254)$(3,841)$(4,377)$(3,249)$(1,710)
[1]Adopting LDTI, including removing shadow adjustments formerly reported in net unrealized gain (loss) on fixed maturities, AFS as well as the liability for future policy benefits adjustments, resulted in an after tax increase (decrease) to total AOCI of $35, $37, $13 and $(11) as of December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.

7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Written premiums
$3,872 $3,979 $3,856 $3,428 $3,583 $3,592 $3,516 $11,707 $10,691 
Change in unearned premium reserve137 333 351 (93)131 251 310 821 692 
Earned premiums 3,735 3,646 3,505 3,521 3,452 3,341 3,206 10,886 9,999 
Fee income 18 17 18 17 18 17 17 53 52 
Losses and loss adjustment expenses
Current accident year before catastrophes2,255 2,216 2,085 2,081 2,070 1,944 1,833 6,556 5,847 
Current accident year catastrophes [1]184 226 185 135 293 123 98 595 514 
Prior accident year development [2](43)(39)— 183 (53)(58)(36)(82)(147)
Total losses and loss adjustment expenses2,396 2,403 2,270 2,399 2,310 2,009 1,895 7,069 6,214 
Amortization of DAC509 493 482 466 456 441 428 1,484 1,325 
Underwriting expenses601 616 604 598 610 606 577 1,821 1,793 
Amortization of other intangible assets8 7 8 8 8 7 8 23 23 
Dividends to policyholders 16 7 8 8 7 7 7 31 21 
Underwriting gain*223 137 151 59 79 288 308 511 675 
Net investment income460 415 392 469 360 407 382 1,267 1,149 
Net realized gains (losses)(45)(57)(23)3 (110)(225)(104)(125)(439)
Net servicing and other income (expense)5 7 6 2 3 2 (2)18 3 
Income before income taxes643 502 526 533 332 472 584 1,671 1,388 
Income tax expense127 95 100 107 76 97 116 322 289 
Net income516 407 426 426 256 375 468 1,349 1,099 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax35 48 23 (3)109 222 106 106 437 
Integration and other non-recurring M&A costs, before tax1 2 — 3 3 4 3 3 10 
Change in deferred gain on retroactive reinsurance, before tax [2]— — — 229 — — — — — 
Income tax expense (benefit) [3](7)(11)(5)(56)(23)(49)(26)(23)(98)
Core earnings$545 $446 $444 $599 $345 $552 $551 $1,435 $1,448 
ROE
Net income available to common stockholders [4] 17.6 %13.8 %12.8 %12.7 %15.2 %15.7 %18.4 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax1.1 %1.8 %3.3 %4.0 %2.8 %1.2 %(1.3 %)
Integration and other non-recurring M&A costs, before tax0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %
Change in deferred gain on retroactive reinsurance, before tax [2]2.5 %2.3 %2.2 %2.1 %1.6 %1.8 %2.1 %
Income tax expense (benefit) [3](0.8 %)(0.9 %)(1.3 %)(1.4 %)(1.0 %)(0.7 %)(0.3 %)
Impact of AOCI, excluded from core earnings ROE(4.3 %)(2.6 %)(1.6 %)(0.9 %)(1.0 %)(0.2 %)0.6 %
Core earnings [4]16.2 %14.5 %15.5 %16.6 %17.7 %17.9 %19.6 %
[1]The three months ended September 30, 2022 included $214 of losses, net of reinsurance, from Hurricane Ian, including $133 in Commercial Lines and $81 in Personal Lines.
[2]Prior accident year development does not include a benefit for the portion of ceded losses in excess of ceded premium paid under ADC agreements, which is recognized as a deferred gain under retroactive reinsurance accounting.
[3]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[4]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.

8
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Workers’ compensation$(61)$(52)$(61)$(61)$(58)$(40)$(45)$(174)$(143)
Workers' compensation discount accretion10 11 11 9 9 9 9 32 27 
General liability11 16 12 23 — 21 12 39 33 
Marine— (2)1 — 5 (3)— (1)2 
Package business(10)(3)(5)(4)(11)(13)(11)(18)(35)
Commercial property2 (5)5 6 4 (6)(15)2 (17)
Professional liability— (3)— (2)— (9)— (3)(9)
Bond— 12 — (28)— (4)— 12 (4)
Assumed reinsurance2 15 2 7 — — 12 19 12 
Automobile liability - Commercial Lines— 6 — 15 11 12 — 6 23 
Automobile liability - Personal Lines— — — — (9)— (5)— (14)
Homeowners— 2 (1)1 (2)— — 1 (2)
Net asbestos and environmental reserves— — — — — — — — — 
Catastrophes— (44)— (30)(2)(27)(3)(44)(32)
Uncollectible reinsurance1 4 8 — (3)6 — 13 3 
Other reserve re-estimates2 4 28 18 3 (4)10 34 9 
Prior accident year development before change in deferred gain(43)(39)— (46)(53)(58)(36)(82)(147)
Change in deferred gain on retroactive reinsurance included in other liabilities— — — 229 — — — — — 
Total prior accident year development$(43)$(39)$— $183 $(53)$(58)$(36)$(82)$(147)


9
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
UNDERWRITING GAIN$223 $137 $151 $59 $79 $288 $308 $511 $675 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes 60.4 60.8 59.5 59.1 60.0 58.2 57.2 60.2 58.5 
Current accident year catastrophes4.9 6.2 5.3 3.8 8.5 3.7 3.1 5.5 5.1 
Prior accident year development(1.2)(1.1)— 5.2 (1.5)(1.7)(1.1)(0.8)(1.5)
Total losses and loss adjustment expenses64.1 65.9 64.8 68.1 66.9 60.1 59.1 64.9 62.1 
Expenses [1]29.5 30.1 30.7 30.0 30.6 31.0 31.1 30.1 30.9 
Policyholder dividends0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.2 
Combined ratio94.0 96.2 95.7 98.3 97.7 91.4 90.4 95.3 93.2 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(3.7)(5.1)(5.3)(9.0)(7.0)(2.0)(2.0)(4.7)(3.6)
Underlying combined ratio *90.3 91.1 90.4 89.3 90.8 89.4 88.5 90.6 89.6 
[1]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.


10
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Written premiums$3,003 $3,177 $3,109 $2,733 $2,780 $2,836 $2,809 $9,289 $8,425 
Change in unearned premium reserve52 291 343 (34)77 221 323 686 621 
Earned premiums 2,951 2,886 2,766 2,767 2,703 2,615 2,486 8,603 7,804 
Fee income11 10 10 10 10 10 9 31 29 
Losses and loss adjustment expenses
Current accident year before catastrophes1,669 1,638 1,564 1,542 1,555 1,467 1,395 4,871 4,417 
Current accident year catastrophes [1]115 123 138 114 179 67 81 376 327 
Prior accident year development(46)(38)(23)(68)(42)(88)(33)(107)(163)
Total losses and loss adjustment expenses1,738 1,723 1,679 1,588 1,692 1,446 1,443 5,140 4,581 
Amortization of DAC451 436 424 408 399 385 371 1,311 1,155 
Underwriting expenses 460 469 456 461 455 447 425 1,385 1,327 
Amortization of other intangible assets7 7 7 8 7 7 7 21 21 
Dividends to policyholders16 7 8 8 7 7 7 31 21 
Underwriting gain290 254 202 304 153 333 242 746 728 
Net investment income395 364 338 411 315 356 333 1,097 1,004 
Net realized losses(38)(51)(19)(1)(95)(198)(91)(108)(384)
Other income (expense) [2]2 — — (2)(3)(1)(6)2 (10)
Income before income taxes649 567 521 712 370 490 478 1,737 1,338 
Income tax expense130 109 100 146 84 101 95 339 280 
Net income519 458 421 566 286 389 383 1,398 1,058 
Adjustments to reconcile net income to core earnings:
Net realized losses, excluded from core earnings, before tax29 43 19 1 95 194 93 91 382 
Integration and other non-recurring M&A costs, before tax [2]1 2 — 3 3 4 3 3 10 
Income tax benefit [3](7)(10)(4)(8)(21)(43)(23)(21)(87)
Core earnings$542 $493 $436 $562 $363 $544 $456 $1,471 $1,363 
[1]Refer to [1] on page 8 for information about catastrophe losses related to Hurricane Ian for the three months ended September 30, 2022.
[2]Includes Navigators Group integration costs.
[3]Primarily represents federal income tax benefit related to before tax items not included in core earnings.

11
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Workers’ compensation$(61)$(52)$(61)$(61)$(58)$(40)$(45)$(174)$(143)
Workers' compensation discount accretion10 11 11 9 9 9 9 32 27 
General liability11 16 12 23 — (10)12 39 2 
Marine— (2)1 — 5 (3)— (1)2 
Package business(10)(3)(5)(4)(11)(13)(11)(18)(35)
Commercial property2 (5)5 6 4 (6)(15)2 (17)
Professional liability— (3)— (2)— (9)— (3)(9)
Bond— 12 — (28)— (4)— 12 (4)
Assumed reinsurance2 15 2 7 — — 12 19 12 
Automobile liability— 6 — 15 11 12 — 6 23 
Catastrophes— (40)— (29)(2)(26)(3)(40)(31)
Uncollectible reinsurance(2)4 5 — (1)— — 7 (1)
Other reserve re-estimates2 3 7 (4)1 2 8 12 11 
Total prior accident year development$(46)$(38)$(23)$(68)$(42)$(88)$(33)$(107)$(163)



12
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
UNDERWRITING GAIN$290 $254 $202 $304 $153 $333 $242 $746 $728 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes 56.6 56.8 56.5 55.7 57.5 56.1 56.1 56.6 56.6 
Current accident year catastrophes3.9 4.3 5.0 4.1 6.6 2.6 3.3 4.4 4.2 
Prior accident year development(1.6)(1.3)(0.8)(2.5)(1.6)(3.4)(1.3)(1.2)(2.1)
Total losses and loss adjustment expenses58.9 59.7 60.7 57.4 62.6 55.3 58.0 59.7 58.7 
Expenses [1]30.7 31.3 31.7 31.3 31.5 31.7 31.9 31.2 31.7 
Policyholder dividends0.5 0.2 0.3 0.3 0.3 0.3 0.3 0.4 0.3 
Combined ratio90.2 91.2 92.7 89.0 94.3 87.3 90.3 91.3 90.7 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(2.3)(3.0)(4.2)(1.6)(5.0)0.8 (2.0)(3.2)(2.1)
Underlying combined ratio 87.8 88.3 88.5 87.4 89.3 88.1 88.3 88.2 88.6 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio87.7 90.8 90.8 89.4 89.3 85.2 82.9 89.7 85.9 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(3.2)(5.7)(6.2)(6.3)(5.3)(3.0)(1.9)(5.0)(3.4)
Prior accident year development5.2 4.5 4.9 4.5 4.4 4.7 4.9 4.9 4.7 
Underlying combined ratio 89.7 89.7 89.5 87.5 88.5 86.9 85.9 89.6 87.1 
MIDDLE & LARGE COMMERCIAL
Combined ratio94.5 93.6 97.6 91.8 100.7 95.6 94.6 95.2 97.1 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(4.5)(3.8)(5.0)(3.1)(6.6)(2.0)(2.3)(4.4)(3.7)
Prior accident year development(1.8)(1.1)(2.7)1.5 (0.4)(0.8)(0.9)(1.9)(0.7)
Underlying combined ratio88.1 88.7 89.9 90.2 93.7 92.9 91.5 88.9 92.7 
GLOBAL SPECIALTY
Combined ratio88.9 87.3 88.7 84.1 94.2 85.0 96.9 88.3 91.9 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(4.3)(2.6)(3.1)(1.9)(9.0)(2.8)(6.9)(3.3)(6.2)
Prior accident year development(0.3)0.3 (0.4)0.7 (0.6)0.9 (1.8)(0.1)(0.5)
Underlying combined ratio84.3 85.0 85.2 83.0 84.5 83.1 88.2 84.8 85.2 
[1]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.

13
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
WRITTEN PREMIUMS
Small Commercial$1,228 $1,266 $1,319 $1,130 $1,131 $1,145 $1,180 $3,813 $3,456 
Middle & Large Commercial1,031 1,013 935 911 979 907 853 2,979 2,739 
Middle Market900 881 796 773 856 785 724 2,577 2,365 
National Accounts and Other131 132 139 138 123 122 129 402 374 
Global Specialty [1]730 885 842 681 659 772 764 2,457 2,195 
U.S.500 551 468 466 466 516 466 1,519 1,448 
International96 121 99 110 92 103 91 316 286 
Global Re134 213 275 105 101 153 207 622 461 
Other14 13 13 11 11 12 12 40 35 
Total$3,003 $3,177 $3,109 $2,733 $2,780 $2,836 $2,809 $9,289 $8,425 
EARNED PREMIUMS
Small Commercial$1,221 $1,190 $1,139 $1,147 $1,117 $1,081 $1,034 $3,550 $3,232 
Middle & Large Commercial955 948 914 915 896 855 828 2,817 2,579 
Middle Market829 806 785 788 774 733 717 2,420 2,224 
National Accounts and Other126 142 129 127 122 122 111 397 355 
Global Specialty [1]761 735 700 695 678 666 613 2,196 1,957 
U.S.501 484 463 472 460 450 426 1,448 1,336 
International104 108 99 93 99 98 87 311 284 
Global Re156 143 138 130 119 118 100 437 337 
Other14 13 13 10 12 13 11 40 36 
Total$2,951 $2,886 $2,766 $2,767 $2,703 $2,615 $2,486 $8,603 $7,804 
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium$220 $237 $242 $191 $190 $201 $186 $699 $577 
Renewal Written Price Increases4.5 %4.3 %3.9 %4.7 %4.0 %3.4 %3.1 %4.2 %3.5 %
Policy Count Retention85 %85 %86 %86 %86 %85 %86 %85 %86 %
Policies in Force (in thousands)1,479 1,461 1,439 1,421 1,411 1,395 1,378 
Middle Market [2]
Net New Business Premium$137 $164 $148 $131 $150 $130 $120 $449 $400 
Renewal Written Price Increases7.6 %7.4 %6.6 %6.2 %6.1 %5.1 %5.0 %7.2 %5.4 %
Premium Retention82 %83 %82 %83 %84 %82 %82 %83 %83 %
Global Specialty
Gross New Business Premium [3]
$216 $246 $191 $192 $201 $226 $206 $653 $633 
Renewal Written Price Increases [4]3.9 %5.1 %3.7 %4.5 %4.3 %6.6 %9.3 %4.3 %6.7 %
[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures. International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.
[2]Except for net new business premium, metrics for Middle Market exclude loss sensitive and programs businesses.
[3]Excludes Global Re and is before ceded reinsurance.
[4]Excludes Global Re, offshore energy policies, credit and political risk insurance policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 delegates underwriting authority to coverholders and other third parties.

14
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Written premiums$869 $802 $747 $695 $803 $756 $707 $2,418 $2,266 
Change in unearned premium reserve85 42 8 (59)54 30 (13)135 71 
Earned premiums784 760 739 754 749 726 720 2,283 2,195 
Fee income 7 7 8 7 8 7 8 22 23 
Losses and loss adjustment expenses
Current accident year before catastrophes586 578 521 539 515 477 438 1,685 1,430 
Current accident year catastrophes [1]69 103 47 21 114 56 17 219 187 
Prior accident year development 1 (3)20 1 (11)— (3)18 (14)
Total losses and loss adjustment expenses656 678 588 561 618 533 452 1,922 1,603 
Amortization of DAC58 57 58 58 57 56 57 173 170 
Underwriting expenses138 145 145 135 153 157 149 428 459 
Amortization of other intangible assets1 — 1 — 1 — 1 2 2 
Underwriting gain (loss)(62)(113)(45)7 (72)(13)69 (220)(16)
Net investment income47 34 38 41 31 35 33 119 99 
Net realized gains (losses)(5)(5)(1)3 (11)(18)(9)(11)(38)
Net servicing and other income (expense)3 7 6 4 6 3 4 16 13 
Income (loss) before income taxes(17)(77)(2)55 (46)7 97 (96)58 
Income tax expense (benefit)(5)(17)(1)11 (10)1 20 (23)11 
Net income (loss)(12)(60)(1)44 (36)6 77 (73)47 
Adjustments to reconcile net income (loss) to core earnings (loss):
Net realized losses (gains), excluded from core earnings, before tax5 4 1 (3)10 19 9 10 38 
Income tax expense (benefit) [2](1)(1)— 1 (2)(4)(2)(2)(8)
Core earnings (loss)$(8)$(57)$— $42 $(28)$21 $84 $(65)$77 
[1]Refer to [1] on page 8 for information about catastrophe losses related to Hurricane Ian.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

15
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Automobile liability$— $— $— $— $(9)$— $(5)$— $(14)
Homeowners— 2 (1)1 (2)— — 1 (2)
Catastrophes— (4)— (1)— (1)— (4)(1)
Uncollectible reinsurance1 — — — (2)— — 1 (2)
Other reserve re-estimates, net [1]— (1)21 1 2 1 2 20 5 
Total prior accident year development$1 $(3)$20 $1 $(11)$— $(3)$18 $(14)
[1]Other reserve re-estimates, net for the nine months ended September 30, 2023 includes a $22 increase in automobile physical damage reserves.

16
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
UNDERWRITING GAIN (LOSS)$(62)$(113)$(45)$7 $(72)$(13)$69 $(220)$(16)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes74.7 76.1 70.5 71.5 68.8 65.7 60.8 73.8 65.1 
Current accident year catastrophes8.8 13.6 6.4 2.8 15.2 7.7 2.4 9.6 8.5 
Prior accident year development0.1 (0.4)2.7 0.1 (1.5)— (0.4)0.8 (0.6)
Total losses and loss adjustment expenses83.7 89.2 79.6 74.4 82.5 73.4 62.8 84.2 73.0 
Expenses24.2 25.7 26.5 24.7 27.1 28.4 27.6 25.4 27.7 
Combined ratio107.9 114.9 106.1 99.1 109.6 101.8 90.4 109.6 100.7 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
(8.9)(13.2)(9.1)(2.9)(13.7)(7.7)(2.0)(10.4)(7.9)
Underlying combined ratio99.0 101.7 97.0 96.2 95.9 94.1 88.5 99.3 92.8 
PRODUCT
Automobile
Combined ratio110.8 116.4 110.2 108.6 113.2 101.2 92.8 112.5 102.6 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(2.3)(3.8)(1.1)(0.1)(11.9)(1.4)(0.3)(2.4)(4.7)
Prior accident year development— (0.8)(4.0)0.3 1.4 0.2 0.9 (1.5)0.8 
Underlying combined ratio108.5 111.8 105.1 108.9 102.6 100.0 93.3 108.5 98.7 
Homeowners
Combined ratio101.4 115.1 96.8 78.1 102.6 103.1 85.2 104.5 97.0 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(23.1)(35.5)(17.8)(8.8)(22.6)(21.2)(7.0)(25.5)(17.0)
Prior accident year development(0.3)(0.1)(0.1)(1.0)0.4 0.1 (0.8)(0.1)(0.1)
Underlying combined ratio78.1 79.6 78.9 68.3 80.4 82.0 77.4 78.8 79.9 


17
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA

 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$754 $698 $648 $596 $698 $655 $610 $2,100 $1,963 
AARP Agency57 52 50 50 50 50 48 159 148 
Other Agency53 48 44 44 48 46 43 145 137 
Other5 4 5 5 7 5 6 14 18 
Total$869 $802 $747 $695 $803 $756 $707 $2,418 $2,266 
EARNED PREMIUMS
AARP Direct$681 $659 $640 $653 $645 $625 $617 $1,980 $1,887 
AARP Agency50 51 49 50 50 50 50 150 150 
Other Agency47 45 45 45 46 46 47 137 139 
Other6 5 5 6 8 5 6 16 19 
Total$784 $760 $739 $754 $749 $726 $720 $2,283 $2,195 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$596 $543 $529 $473 $541 $509 $497 $1,668 $1,547 
Homeowners273 259 218 222 262 247 210 750 719 
Total$869 $802 $747 $695 $803 $756 $707 $2,418 $2,266 
EARNED PREMIUMS
Automobile$541 $523 $509 $519 $516 $497 $493 $1,573 $1,506 
Homeowners243 237 230 235 233 229 227 710 689 
Total$784 $760 $739 $754 $749 $726 $720 $2,283 $2,195 


18
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile$61 $52 $46 $41 $71 $57 $58 $159 $186 
Homeowners$25 $22 $21 $18 $22 $19 $15 $68 $56 
Renewal Written Price Increases
Automobile19.7 %13.7 %9.9 %6.2 %5.0 %4.0 %2.9 %14.6 %4.0 %
Homeowners14.1 %14.4 %13.9 %13.3 %11.8 %9.0 %8.8 %14.1 %9.9 %
Policy Count Retention
Automobile85 %86 %85 %85 %85 %84 %84 %85 %84 %
Homeowners84 %84 %84 %84 %84 %84 %84 %84 %84 %
Policies in Force (in thousands)
Automobile1,270 1,287 1,305 1,323 1,331 1,315 1,315 
Homeowners712 723 731 740 749 756 765 


19
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Losses and loss adjustment expenses
Prior accident year development $2 $2 $3 $250 $— $30 $— $7 $30 
Total losses and loss adjustment expenses2 2 3 250 — 30 — 7 30 
Underwriting expenses3 2 3 2 2 2 3 8 7 
Underwriting loss(5)(4)(6)(252)(2)(32)(3)(15)(37)
Net investment income18 17 16 17 14 16 16 51 46 
Net realized gains (losses)(2)(1)(3)1 (4)(9)(4)(6)(17)
Income (loss) before income taxes11 12 7 (234)8 (25)9 30 (8)
Income tax expense (benefit)2 3 1 (50)2 (5)1 6 (2)
Net income (loss)9 9 6 (184)6 (20)8 24 (6)
Adjustments to reconcile net income (loss) to core earnings (loss):
Net realized losses (gains), excluded from core earnings, before tax1 1 3 (1)4 9 4 5 17 
Change in deferred gain on retroactive reinsurance, before tax— — — 229 — — — — — 
Income tax benefit [1]1 — (1)(49)— (2)(1)— (3)
Core earnings (loss)$11 $10 $8 $(5)$10 $(13)$11 $29 $8 
[1]Represents federal income tax benefit related to before tax items not included in core earnings (loss).
























20
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Earned premiums$1,575 $1,574 $1,558 $1,498 $1,458 $1,469 $1,445 $4,707 $4,372 
Fee income54 56 51 48 46 48 45 161 139 
Net investment income121 113 110 154 117 130 123 344 370 
Net realized gains (losses)(31)(19)5 1 (37)(70)(16)(45)(123)
Total revenues1,719 1,724 1,724 1,701 1,584 1,577 1,597 5,167 4,758 
Benefits, losses and loss adjustment expenses1,146 1,175 1,210 1,135 1,096 1,063 1,223 3,531 3,382 
Amortization of DAC8 9 9 7 8 9 9 26 26 
Insurance operating costs and other expenses372 381 380 371 364 365 367 1,133 1,096 
Amortization of other intangible assets10 10 10 10 10 10 10 30 30 
Total benefits, losses and expenses1,536 1,575 1,609 1,523 1,478 1,447 1,609 4,720 4,534 
Income (loss) before income taxes183 149 115 178 106 130 (12)447 224 
Income tax expense (benefit)37 28 23 35 20 24 (4)88 40 
Net income (loss) [1]146 121 92 143 86 106 (8)359 184 
Adjustments to reconcile net income (loss) to core earnings:
Net realized losses (gains), excluded from core earnings, before tax28 16 (5)(2)38 70 16 39 124 
Integration and other non-recurring M&A costs, before tax1 — 2 2 2 2 2 3 6 
Income tax expense (benefit) [2](5)(4)1 1 (9)(15)(4)(8)(28)
Core earnings [1]$170 $133 $90 $144 $117 $163 $6 $393 $286 
Margin
Net income margin8.5 %7.0 %5.3 %8.4 %5.4 %6.7 %(0.5 %)6.9 %3.9 %
Core earnings margin*9.8 %7.6 %5.2 %8.5 %7.2 %9.9 %0.4 %7.6 %5.9 %
ROE
Net income available to common stockholders [3]15.9 %13.0 %11.9 %8.3 %5.3 %3.4 %5.1 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax1.3 %1.5 %3.1 %3.6 %1.6 %0.1 %(2.6 %)
Integration and other non-recurring M&A costs, before tax0.2 %0.2 %0.2 %0.2 %0.2 %0.2 %0.2 %
Income tax expense (benefit) [2](0.2 %)(0.4 %)(0.7 %)(0.8 %)(0.4 %)— %0.5 %
Impact of AOCI, excluded from core earnings ROE(3.4 %)(1.8 %)(0.9 %)(0.3 %)(0.1 %)0.1 %0.3 %
Core earnings [3]13.8 %12.5 %13.6 %11.0 %6.6 %3.8 %3.5 %
[1]Adopting LDTI resulted in an after tax increase (decrease) to net income and core earnings of $3, $0, $2 and $(2) for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.

21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA
 
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
PREMIUMS
Fully insured ongoing premiums
Group disability$827 $822 $814 $805 $772 $780 $754 $2,463 $2,306 
Group life 640 650 643 604 593 599 597 1,933 1,789 
Other [1]102 102 100 89 88 90 87 304 265 
Total fully insured ongoing premiums1,569 1,574 1,557 1,498 1,453 1,469 1,438 4,700 4,360 
Total buyouts [2]6 — 1 — 5 — 7 7 12 
Total premiums$1,575 $1,574 $1,558 $1,498 $1,458 $1,469 $1,445 $4,707 $4,372 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$83 $77 $209 $67 $51 $123 $222 $369 $396 
Group life45 60 227 21 41 70 125 332 236 
Other [1]15 14 38 14 14 11 42 67 67 
Total fully insured ongoing sales143 151 474 102 106 204 389 768 699 
Total buyouts [2]6 — 1 — 5 — 7 7 12 
Total sales$149 $151 $475 $102 $111 $204 $396 $775 $711 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio67.3 %67.0 %70.4 %65.5 %68.4 %66.3 %73.2 %68.2 %69.3 %
Group life loss ratio80.2 %84.1 %86.7 %89.1 %83.1 %78.6 %98.7 %83.7 %86.8 %
Total loss ratio70.2 %72.1 %75.2 %73.4 %72.8 %70.1 %82.0 %72.5 %74.9 %
Expense ratio [3]24.0 %24.5 %24.7 %25.0 %25.4 %25.2 %25.9 %24.4 %25.5 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts.
[3]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.


22

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Investment management fees $189 $186 $182 $183 $190 $198 $216 $557 $604 
Shareowner servicing fees 21 21 21 21 21 23 25 63 69 
Other revenue42 41 41 41 45 43 47 124 135 
Net realized gains (losses)(4)1 5 7 (9)(13)(9)2 (31)
Total revenues 248 249 249 252 247 251 279 746 777 
Sub-advisory expense67 66 65 65 68 71 78 198 217 
Employee compensation and benefits28 29 34 29 27 31 36 91 94 
Distribution and service73 73 73 72 75 81 87 219 243 
General, administrative and other27 24 26 29 25 24 28 77 77 
Total expenses 195 192 198 195 195 207 229 585 631 
Income before income taxes53 57 51 57 52 44 50 161 146 
Income tax expense12 12 10 12 11 10 8 34 29 
Net income41 45 41 45 41 34 42 127 117 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax4 (1)(5)(7)9 13 9 (2)31 
Income tax expense (benefit) [1]— — 1 1 (3)(3)(1)1 (7)
Core earnings$45 $44 $37 $39 $47 $44 $50 $126 $141 
Daily average Hartford Funds AUM$128,786 $127,540 $127,084 $124,087 $129,782 $136,841 $150,131 $127,810 $138,843 
Return on assets (bps, net of tax) [2]
Net income12.7 14.1 12.9 14.5 12.6 9.9 11.2 13.2 11.2 
Core earnings*14.0 13.8 11.6 12.6 14.5 12.9 13.3 13.1 13.5 
ROE
Net income available to common stockholders [3]44.9 %44.9 %42.7 %42.4 %48.2 %51.9 %58.0 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax(2.4 %)(1.1 %)2.7 %6.5 %7.8 %6.0 %2.0 %
Income tax expense (benefit) [1]0.5 %(0.3 %)(1.1 %)(1.6 %)(1.7 %)(1.1 %)— %
Impact of AOCI, excluded from core earnings ROE(2.5 %)(1.9 %)(1.5 %)(1.2 %)(1.5 %)(0.9 %)(0.6 %)
Core earnings [3]40.5 %41.6 %42.8 %46.1 %52.8 %55.9 %59.4 %
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[2]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.



23
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Equity Funds
Beginning balance $78,951 $76,132 $73,782 $69,128 $74,891 $89,282 $95,703 $73,782 $95,703 
Sales3,096 3,447 4,202 4,200 4,257 5,631 6,856 10,745 16,744 
Redemptions(4,366)(4,145)(5,221)(6,505)(5,178)(6,795)(6,965)(13,732)(18,938)
Net flows(1,270)(698)(1,019)(2,305)(921)(1,164)(109)(2,987)(2,194)
Change in market value and other (3,375)3,517 3,369 6,959 (4,842)(13,227)(6,312)3,511 (24,381)
Ending balance$74,306 $78,951 $76,132 $73,782 $69,128 $74,891 $89,282 $74,306 $69,128 
Fixed Income Funds
Beginning balance $16,149 $16,399 $15,861 $16,018 $17,388 $18,889 $20,113 $15,861 $20,113 
Sales1,160 1,216 1,521 1,852 1,084 1,736 1,900 3,897 4,720 
Redemptions(1,127)(1,468)(1,372)(2,471)(2,071)(2,306)(2,254)(3,967)(6,631)
Net flows33 (252)149 (619)(987)(570)(354)(70)(1,911)
Change in market value and other (241)2 389 462 (383)(931)(870)150 (2,184)
Ending balance$15,941 $16,149 $16,399 $15,861 $16,018 $17,388 $18,889 $15,941 $16,018 
Multi-Strategy Investments Funds [1]
Beginning balance$19,764 $19,941 $19,975 $19,028 $20,362 $22,603 $23,610 $19,975 $23,610 
Sales354 402 516 530 467 598 722 1,272 1,787 
Redemptions(968)(918)(892)(959)(810)(841)(826)(2,778)(2,477)
Net flows(614)(516)(376)(429)(343)(243)(104)(1,506)(690)
Change in market value and other (577)339 342 1,376 (991)(1,998)(903)104 (3,892)
Ending balance$18,573 $19,764 $19,941 $19,975 $19,028 $20,362 $22,603 $18,573 $19,028 
Exchange-Traded Funds ("ETF") AUM
Beginning balance$3,243 $3,036 $2,854 $2,590 $2,765 $3,211 $3,206 $2,854 $3,206 
Net flows222 210 67 60 28 (34)143 499 137 
Change in market value and other(103)(3)115 204 (203)(412)(138)9 (753)
Ending balance$3,362 $3,243 $3,036 $2,854 $2,590 $2,765 $3,211 $3,362 $2,590 
Mutual Fund and ETF AUM
Beginning balance$118,107 $115,508 $112,472 $106,764 $115,406 $133,985 $142,632 $112,472 $142,632 
Sales - mutual fund4,610 5,065 6,239 6,582 5,808 7,965 9,478 15,914 23,251 
Redemptions - mutual fund(6,461)(6,531)(7,485)(9,935)(8,059)(9,942)(10,045)(20,477)(28,046)
Net flows - ETF222 210 67 60 28 (34)143 499 137 
Net flows - mutual fund and ETF(1,629)(1,256)(1,179)(3,293)(2,223)(2,011)(424)(4,064)(4,658)
Change in market value and other (4,296)3,855 4,215 9,001 (6,419)(16,568)(8,223)3,774 (31,210)
Ending balance
112,182 118,107 115,508 112,472 106,764 115,406 133,985 112,182 106,764 
Third-party life and annuity separate account AUM11,011 11,799 11,672 11,635 11,063 11,992 14,061 11,011 11,063 
Hartford Funds AUM$123,193 $129,906 $127,180 $124,107 $117,827 $127,398 $148,046 $123,193 $117,827 
[1]Includes balanced, allocation, and alternative investment products.

24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS 
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Fee income [1]$10 $11 $9 $12 $11 $13 $13 $30 $37 
Other revenue1 — 1 — — — 1 2 1 
Net investment income12 8 10 13 7 3 3 30 13 
Net realized gains (losses)(10)11 6 11 (10)(30)(16)7 (56)
Total revenues (losses)13 30 26 36 8 (14)1 69 (5)
Benefits, losses and loss adjustment expenses [2]1 2 2 3 1 2 2 5 5 
Insurance operating costs and other expenses [1][3]27 11 13 13 12 23 13 51 48 
Interest expense50 50 50 50 50 51 62 150 163 
Restructuring and other costs1 3 — 3 3 2 5 4 10 
Total expenses79 66 65 69 66 78 82 210 226 
Loss before income taxes(66)(36)(39)(33)(58)(92)(81)(141)(231)
Income tax benefit(14)(10)(15)(11)(15)(21)(22)(39)(58)
Net loss [4](52)(26)(24)(22)(43)(71)(59)(102)(173)
Preferred stock dividends6 5 5 5 6 5 5 16 16 
Net loss available to common stockholders(58)(31)(29)(27)(49)(76)(64)(118)(189)
Adjustments to reconcile net loss available to common stockholders to core loss:
Net realized losses (gains), excluded from core earnings, before tax9 (10)(6)(10)10 31 15 (7)56 
Restructuring and other costs, before tax1 3 — 3 3 2 5 4 10 
Loss on extinguishment of debt, before tax— — — — — 9 — — 9 
Income tax expense (benefit) [5](4)3 — 1 (1)(9)(4)(1)(14)
Core loss [4]$(52)$(35)$(35)$(33)$(37)$(43)$(48)$(122)$(128)
[1]Includes investment management fees and expenses related to managing third-party business.
[2]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[3]Insurance operating costs and other expenses for the three and nine months ended September 30, 2023, includes a $14 capital-based state tax expense covering several years recorded in the 2023 period related to recently released guidance, and for the nine months ended September 30, 2022, includes a $9 loss on extinguishment of debt related to The Hartford's redemption of its 7.875% junior subordinated loans on April 15, 2022.
[4]Adopting LDTI resulted in an after tax decrease to net loss and core loss of $1 for the three months ended September 30, 2022. There were no impacts to the other periods presented in the table above.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.


25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$433 $411 $395 $365 $323 $290 $275 $1,239 $888 
Tax-exempt47 49 50 51 53 56 56 146 165 
Total fixed maturities480 460 445 416 376 346 331 1,385 1,053 
Equity securities9 9 13 17 15 13 12 31 40 
Mortgage loans59 58 57 55 53 53 50 174 156 
Limited partnerships and other alternative investments [2]72 32 26 169 62 158 126 130 346 
Other [3](1)4 (2)4 (1)(7)9 1 1 
Subtotal619 563 539 661 505 563 528 1,721 1,596 
Investment expense(22)(23)(24)(21)(18)(22)(19)(69)(59)
Total net investment income$597 $540 $515 $640 $487 $541 $509 $1,652 $1,537 
Annualized investment yield, before tax [4]4.2 %3.9 %3.7 %4.6 %3.5 %3.9 %3.6 %3.9 %3.7 %
Annualized limited partnerships and other alternative investment yield, before tax [4]6.3 %2.9 %2.5 %16.8 %6.3 %17.3 %14.6 %4.0 %13.0 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*4.1 %4.0 %3.8 %3.7 %3.3 %3.0 %2.9 %3.9 %3.1 %
Annualized investment yield, net of tax [4]3.4 %3.1 %3.0 %3.7 %2.8 %3.2 %2.9 %3.2 %3.0 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*3.3 %3.2 %3.0 %3.0 %2.7 %2.4 %2.4 %3.2 %2.5 %
Average reinvestment rate [5]6.0 %5.3 %5.8 %6.0 %4.9 %4.5 %3.3 %5.7 %4.1 %
Average sales/maturities yield [6]4.5 %4.1 %4.2 %4.2 %3.7 %3.6 %3.0 %4.2 %3.4 %
Portfolio duration (in years) [7]4.1 4.0 4.0 4.0 4.0 4.3 4.4 4.1 4.0 
[1]Includes income on short-term investments.
[2]Within Property & Casualty, other alternative investments include an insurer-owned life insurance policy, which is primarily invested in private equity funds and fixed income.
[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost, as applicable, excluding derivatives book value.
[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and cash equivalents.
[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and paydowns, during the respective period. Excludes U.S. Treasury securities and cash equivalents.
[7]Excludes certain short-term investments.

26
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$333 $316 $304 $276 $243 $219 $207 $953 $669 
Tax-exempt34 37 37 38 40 43 41 108 124 
Total fixed maturities367 353 341 314 283 262 248 1,061 793 
Equity securities6 7 9 9 10 10 9 22 29 
Mortgage loans43 42 41 39 38 38 36 126 112 
Limited partnerships and other alternative investments [2]60 26 21 119 44 123 97 107 264 
Other [3]— 5 (2)4 (2)(9)6 3 (5)
Subtotal476 433 410 485 373 424 396 1,319 1,193 
Investment expense(16)(18)(18)(16)(13)(17)(14)(52)(44)
Total net investment income$460 $415 $392 $469 $360 $407 $382 $1,267 $1,149 
Annualized investment yield, before tax [4]4.3 %3.9 %3.6 %4.4 %3.4 %3.9 %3.7 %3.9 %3.7 %
Annualized limited partnerships and other alternative investment yield, before tax [4]6.7 %3.0 %2.5 %14.8 %5.7 %16.7 %14.1 %4.2 %12.4 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]4.0 %4.0 %3.7 %3.6 %3.3 %2.9 %2.9 %3.9 %3.0 %
Annualized investment yield, net of tax [4]3.5 %3.1 %3.0 %3.6 %2.7 %3.1 %3.0 %3.2 %3.0 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]3.2 %3.2 %3.0 %2.9 %2.6 %2.4 %2.4 %3.2 %2.5 %
Average reinvestment rate [5]6.0 %5.3 %5.8 %6.1 %4.9 %4.4 %3.2 %5.7 %4.0 %
Average sales/maturities yield [6]4.5 %4.1 %4.2 %4.1 %3.7 %3.6 %2.9 %4.2 %3.4 %
Portfolio duration (in years) [7]3.9 3.8 3.9 3.8 3.9 4.2 4.3 3.9 3.9 
Footnotes [1] through [7] are explained on page 26.

27
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$86 $85 $81 $79 $75 $69 $67 $252 $211 
Tax-exempt10 11 12 12 11 12 13 33 36 
Total fixed maturities96 96 93 91 86 81 80 285 247 
Equity securities3 1 2 2 3 2 2 6 7 
Mortgage loans16 16 16 16 15 15 14 48 44 
Limited partnerships and other alternative investments [2]12 6 5 50 18 35 29 23 82 
Other [3]— (1)— — — 2 3 (1)5 
Subtotal127 118 116 159 122 135 128 361 385 
Investment expense(6)(5)(6)(5)(5)(5)(5)(17)(15)
Total net investment income$121 $113 $110 $154 $117 $130 $123 $344 $370 
Annualized investment yield, before tax [4]4.1 %3.9 %3.8 %5.3 %4.0 %4.4 %4.2 %3.9 %4.2 %
Annualized limited partnerships and other alternative investment yield, before tax [4]4.8 %2.5 %2.5 %24.5 %8.7 %19.4 %16.7 %3.3 %15.4 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]4.1 %4.0 %3.9 %3.8 %3.6 %3.4 %3.4 %4.0 %3.5 %
Annualized investment yield, net of tax [4]3.3 %3.1 %3.0 %4.2 %3.2 %3.6 %3.4 %3.2 %3.4 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]3.3 %3.2 %3.1 %3.1 %2.9 %2.8 %2.8 %3.2 %2.8 %
Average reinvestment rate [5]5.9 %5.3 %6.0 %5.9 %4.8 %4.7 %3.6 %5.7 %4.4 %
Average sales/maturities yield [6]4.8 %4.3 %4.4 %4.3 %4.0 %3.8 %3.3 %4.5 %3.7 %
Portfolio duration (in years) [7]5.1 4.9 4.8 4.8 4.8 5.0 5.2 5.1 4.8 
Footnotes [1] through [7] are explained on page 26.

28
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income by SegmentSept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Investment Income
Commercial Lines$395 $364 $338 $411 $315 $356 $333 $1,097 $1,004 
Personal Lines47 34 38 41 31 35 33 119 99 
P&C Other Operations18 17 16 17 14 16 16 51 46 
Total Property & Casualty460 415 392 469 360 407 382 1,267 1,149 
Group Benefits121 113 110 154 117 130 123 344 370 
Hartford Funds4 4 3 4 3 1 1 11 5 
Corporate12 8 10 13 7 3 3 30 13 
Total net investment income by segment$597 $540 $515 $640 $487 $541 $509 $1,652 $1,537 
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income from Limited Partnerships and Other Alternative InvestmentsSept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Total Property & Casualty$60 $26 $21 $119 $44 $123 $97 $107 $264 
Group Benefits12 6 5 50 18 35 29 23 82 
Total net investment income from limited partnerships and other alternative investments [1]$72 $32 $26 $169 $62 $158 $126 $130 $346 
[1]Amounts are included above in total net investment income by segment.


29
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Realized Gains (Losses)
Gross gains on sales of fixed maturities
$6 $3 $17 $3 $16 $15 $23 $26 $54 
Gross losses on sales of fixed maturities
(27)(21)(39)(59)(81)(80)(95)(87)(256)
Equity securities [1](13)10 35 101 (81)(262)(107)32 (450)
Net credit losses on fixed maturities, AFS(5)(3)(5)(3)(3)— (12)(13)(15)
Change in ACL on mortgage loans(5)(5)— — — (5)(2)(10)(7)
Intent-to-sell impairments— — — (1)(2)— (3)— (5)
Other net gains (losses) [2](46)(48)(15)(19)(15)(6)51 (109)30 
 Total net realized gains (losses)(90)(64)(7)22 (166)(338)(145)(161)(649)
Net realized losses (gains), included in core earnings, before tax [3]14 11 — — — 2 (1)25 1 
 Total net gains (losses) excluded from core earnings, before tax(76)(53)(7)22 (166)(336)(146)(136)(648)
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings15 10 3 4 34 73 29 28 136 
 Total net realized gains (losses) excluded from core earnings, after tax$(61)$(43)$(4)$26 $(132)$(263)$(117)$(108)$(512)
[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of fair value option securities and non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and commodity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation.
[3]Represents net periodic settlements on credit derivatives.

30
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022
 Amount [1]PercentAmountPercentAmountPercentAmount [1]PercentAmountPercent
Total investments$53,320 100.0 %$52,668 100.0 %$53,667 100.0 %$52,560 100.0 %$50,661 100.0 %
Asset-backed securities$3,130 8.2 %$2,685 7.2 %$2,181 5.8 %$1,941 5.4 %$1,892 5.3 %
Collateralized loan obligations3,043 8.0 %2,981 8.0 %3,013 8.0 %2,941 8.1 %2,919 8.2 %
Commercial mortgage-backed securities3,124 8.2 %3,227 8.6 %3,329 8.9 %3,368 9.3 %3,278 9.2 %
Corporate16,651 43.9 %16,096 42.9 %16,210 43.3 %15,233 42.0 %14,888 41.7 %
Foreign government/government agencies567 1.5 %539 1.4 %549 1.5 %547 1.5 %584 1.6 %
Municipal5,686 15.0 %6,226 16.6 %6,365 17.0 %6,296 17.4 %6,197 17.3 %
Residential mortgage-backed securities3,827 10.1 %3,729 9.9 %3,737 10.0 %3,708 10.2 %3,724 10.4 %
U.S. Treasuries1,934 5.1 %2,014 5.4 %2,060 5.5 %2,197 6.1 %2,235 6.3 %
Total fixed maturities, AFS [2]$37,962 100.0 %$37,497 100.0 %$37,444 100.0 %$36,231 100.0 %$35,717 100.0 %
U.S. government/government agencies$4,747 12.5 %$4,790 12.8 %$4,904 13.1 %$5,025 13.9 %$5,018 14.0 %
AAA6,733 17.8 %6,752 18.0 %6,047 16.1 %5,824 16.1 %5,675 15.9 %
AA6,959 18.3 %6,782 18.1 %6,879 18.4 %6,650 18.4 %6,465 18.1 %
A9,273 24.4 %9,295 24.8 %9,275 24.8 %8,968 24.7 %8,972 25.1 %
BBB8,561 22.6 %8,143 21.7 %8,559 22.9 %7,973 22.0 %7,732 21.7 %
BB1,115 2.9 %1,130 3.0 %1,189 3.2 %1,235 3.4 %1,333 3.8 %
B565 1.5 %595 1.6 %576 1.5 %535 1.5 %490 1.4 %
CCC8 — %9 — %14 — %19 — %16 — %
CC & below1 — %1 — %1 — %2 — %16 — %
Total fixed maturities, AFS [2]$37,962 100.0 %$37,497 100.0 %$37,444 100.0 %$36,231 100.0 %$35,717 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Fixed maturities, at fair value using the fair value option are not included.

31
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
SEPTEMBER 30, 2023
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$5,774 $5,312 10.0 %
Technology and communications2,436 2,177 4.1 %
Consumer non-cyclical2,310 2,104 3.9 %
Utilities2,161 1,912 3.6 %
Capital goods1,549 1,425 2.7 %
Consumer cyclical1,265 1,159 2.2 %
Energy1,227 1,123 2.1 %
Basic industry1,003 927 1.7 %
Transportation783 696 1.3 %
Other747 694 1.3 %
Total$19,255 $17,529 32.9 %
Top Ten Exposures by Issuer [1]
Goldman Sachs Group Inc.$377 $349 0.7 %
Government of Canada241 234 0.4 %
NextEra Energy Inc.219 203 0.4 %
UBS Group AG203 187 0.4 %
Morgan Stanley201 181 0.3 %
Penske Corporation175 169 0.3 %
Eversource Energy174 165 0.3 %
Toronto Dominion Bank183 163 0.3 %
Philip Morris International Inc.165 162 0.3 %
HarbourVest Structured Solutions IV Holdings158 157 0.3 %
Total$2,096 $1,970 3.7 %
[1]Includes corporate bonds, municipal bonds, bonds issued by foreign government/government agencies, and equity securities excluding exchange-traded mutual funds.

32

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
APPENDIX
BASIS OF PRESENTATION AND DEFINITIONS
All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.
The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.
Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 95% of the Company's asbestos and environmental exposures, before considering losses ceded to the A&E ADC.
Group Benefits provides group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups and associations. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.
Hartford Funds provides investment management, administration, distribution and related services to investors through investment products in domestic markets. Mutual fund and exchange-traded funds are sold primarily through retail, bank trust and registered investment advisor channels.
The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party assets.
Certain operating and statistical measures for P&C Commercial Lines and Personal Lines have been incorporated herein to provide supplemental data that indicates current trends in the Company's business. These measures include net new business premium, gross new business premium, renewal written price increases, policy count retention, premium retention, and policies in-force.
•Net new business premium represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium.
•Gross new business premium represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium. For global specialty, gross new business premium is used by management, as it is thought to be more indicative of new business growth trends, in part because global specialty includes the Global Re assumed reinsurance book of business.
•Renewal written price increases for Commercial Lines represents the combined effect of rate changes and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed and includes amount of insurance, which is a component of change in exposure and offsets increases in loss cost trends due to inflation. For Personal Lines, renewal written price increases represents the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.
•Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal.
•Premium retention for middle and large commercial, represents the ratio of prior period premiums that were successfully renewed divided by premiums associated with policies available for renewal in the current period. Premium retention excludes premium amounts from annual audits, renewal written price increases and changes in exposure, including amount of insurance. Premium Retention statistics are subject to change from period to period based on a number of factors, including the effect of subsequent cancellations and non-renewals.
•Policies-in-force represents the number of policies with coverage in effect as of the end of the period. The number of policies in force is a growth measure used for Personal Lines and standard commercial lines (small commercial and middle market lines within middle & large commercial) and is affected by both new business growth and policy count retention.
The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses less fee income to earned premiums. Underwriting expenses included in the expense ratio consist of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and other non-recurring M&A costs. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
A catastrophe is a severe loss, resulting from natural or man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack, civil unrest and similar events. Each catastrophe has unique characteristics and the events are unpredictable as to timing or loss amount. Catastrophe losses are not included in either earnings or in losses and loss adjustment expense reserves prior to occurrence of the catastrophe event. The Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines major losses and, consistent with that definition, incurred losses arising from the Ukraine conflict have been accounted for as catastrophe losses. The Company does not treat incurred benefits and losses arising from the COVID-19 pandemic as catastrophe losses.
33
The Company, along with others in the insurance industry, use loss and expense ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and other non-recurring M&A costs) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.
The Hartford Funds segment provides supplemental data on sales, redemptions, net flows and account value that indicate current trends in that segment.
DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized gains and losses - Generally realized gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.
•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
•Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and excluding the deferred gain on retroactive reinsurance and related amortization of the deferred gain from core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share is the most directly comparable U.S. GAAP measure. Core earnings per share should not be considered as a substitute for net income (loss) available to common stockholders per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.

34
BASIC EARNINGS PER SHARE
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Income available to common stockholders per share
$2.12 $1.75 $1.69 $1.85 $1.04 $1.34 $1.32 $5.55 $3.70 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax
0.25 0.17 0.02 (0.07)0.52 1.03 0.44 0.44 1.98 
Restructuring and other costs, before tax— 0.01 — 0.01 0.01 0.01 0.02 0.01 0.03 
Loss on extinguishment of debt, before tax— — — — — 0.03 — — 0.03 
Integration and other non-recurring M&A costs, before tax
0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.05 
Change in deferred gain on retroactive reinsurance, before tax
— — — 0.72 — — — — — 
Income tax benefit on items excluded from core earnings
(0.06)(0.04)(0.01)(0.17)(0.12)(0.24)(0.12)(0.10)(0.45)
Core earnings per share$2.32 $1.90 $1.71 $2.36 $1.47 $2.19 $1.68 $5.92 $5.34 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measure. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
NINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net Income available to common stockholders per diluted share$2.09 $1.73 $1.66 $1.82 $1.02 $1.32 $1.30 $5.48 $3.65 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax0.25 0.17 0.02 (0.07)0.51 1.01 0.43 0.43 1.95 
Restructuring and other costs, before tax— 0.01 — 0.01 0.01 0.01 0.01 0.01 0.03 
Loss on extinguishment of debt, before tax
— — — — — 0.03 — — 0.03 
Integration and other non-recurring M&A costs, before tax
0.01 0.01 0.01 0.02 0.02 0.02 0.01 0.02 0.05 
Change in deferred gain on retroactive reinsurance, before tax
— — — 0.71 — — — — — 
Income tax benefit on items excluded from core earnings
(0.06)(0.04)(0.01)(0.17)(0.11)(0.23)(0.09)(0.10)(0.44)
Core earnings per diluted share
$2.29 $1.88 $1.68 $2.32 $1.45 $2.16 $1.66 $5.84 $5.27 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:




35
 
LAST TWELVE MONTHS ENDED
 
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022
Net income ROE17.7 %14.4 %12.8 %11.7 %12.8 %13.1 %15.5 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains) excluded from core earnings, before tax0.9 %1.5 %3.3 %4.1 %2.9 %1.3 %(1.7 %)
Restructuring and other costs, before tax0.1 %0.1 %0.1 %0.1 %0.1 %— %— %
Loss on extinguishment of debt, before tax
— %— %0.1 %0.1 %0.1 %0.1 %— %
Integration and other non-recurring M&A costs, before tax
0.1 %0.1 %0.1 %0.1 %0.1 %0.2 %0.3 %
Change in deferred gain on retroactive reinsurance, before tax1.8 %1.7 %1.5 %1.5 %1.1 %1.3 %1.5 %
Income tax benefit on items not included in core earnings(0.6 %)(0.8 %)(1.1 %)(1.3 %)(0.9 %)(0.6 %)(0.1 %)
Impact of AOCI, excluded from denominator of core earnings ROE(5.1 %)(3.4 %)(2.5 %)(1.8 %)(1.9 %)(1.4 %)(0.7 %)
Core earnings ROE14.9 %13.6 %14.3 %14.5 %14.3 %14.0 %14.8 %
Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity, excluding AOCI to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 4.
Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in stockholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)- This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.

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PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income$516 $407 $426 $426 $256 $375 $468 $1,349 $1,099 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(460)(415)(392)(469)(360)(407)(382)(1,267)(1,149)
Net realized losses (gains)45 57 23 (3)110 225 104 125 439 
Net servicing and other expense (income)(5)(7)(6)(2)(3)(2)2 (18)(3)
Income tax expense 127 95 100 107 76 97 116 322 289 
Underwriting gain223 137 151 59 79 288 308 511 675 
Current accident year catastrophes184 226 185 135 293 123 98 595 514 
Prior accident year development(43)(39)— 183 (53)(58)(36)(82)(147)
Underlying underwriting gain$364 $324 $336 $377 $319 $353 $370 $1,024 $1,042 
COMMERCIAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income$519 $458 $421 $566 $286 $389 $383 $1,398 $1,058 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(395)(364)(338)(411)(315)(356)(333)(1,097)(1,004)
Net realized losses38 51 19 1 95 198 91 108 384 
Other expense (income)(2)— — 2 3 1 6 (2)10 
Income tax expense130 109 100 146 84 101 95 339 280 
Underwriting gain290 254 202 304 153 333 242 746 728 
Current accident year catastrophes115 123 138 114 179 67 81 376 327 
Prior accident year development(46)(38)(23)(68)(42)(88)(33)(107)(163)
Underlying underwriting gain$359 $339 $317 $350 $290 $312 $290 $1,015 $892 







37

PERSONAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income (loss)$(12)$(60)$(1)$44 $(36)$6 $77 $(73)$47 
Adjustments to reconcile net income (loss) to underlying underwriting gain (loss):
Net investment income(47)(34)(38)(41)(31)(35)(33)(119)(99)
Net realized losses (gains)5 5 1 (3)11 18 9 11 38 
Net servicing and other expense (income)(3)(7)(6)(4)(6)(3)(4)(16)(13)
Income tax expense (benefit)(5)(17)(1)11 (10)1 20 (23)11 
Underwriting gain (loss)(62)(113)(45)7 (72)(13)69 (220)(16)
Current accident year catastrophes69 103 47 21 114 56 17 219 187 
Prior accident year development1 (3)20 1 (11)— (3)18 (14)
Underlying underwriting gain (loss)$8 $(13)$22 $29 $31 $43 $83 $17 $157 
P&C OTHER OPERATIONS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income (loss)$9 $9 $6 $(184)$6 $(20)$8 $24 $(6)
Adjustments to reconcile net income (loss) to underlying underwriting loss:
Net investment income(18)(17)(16)(17)(14)(16)(16)(51)(46)
Net realized losses (gains)2 1 3 (1)4 9 4 6 17 
Income tax expense (benefit)2 3 1 (50)2 (5)1 6 (2)
Underwriting gain (loss)(5)(4)(6)(252)(2)(32)(3)(15)(37)
Prior accident year development2 2 3 250 — 30 — 7 30 
Underlying underwriting loss$(3)$(2)$(3)$(2)$(2)$(2)$(3)$(8)$(7)
Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.

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Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Net income margin8.5 %7.0 %5.3 %8.4 %5.4 %6.7 %(0.5)%6.9 %3.9 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains), before tax1.5 %0.8 %(0.3)%(0.1)%2.3 %4.1 %1.0 %0.8 %2.5 %
Integration and other non-recurring M&A costs, before tax0.1 %— %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %
Income tax expense (benefit)(0.3)%(0.2)%0.1 %0.1 %(0.6)%(1.0)%(0.2)%(0.2)%(0.6)%
Core earnings margin9.8 %7.6 %5.2 %8.5 %7.2 %9.9 %0.4 %7.6 %5.9 %
Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Return on Assets ("ROA") 12.7 14.1 12.9 14.5 12.6 9.9 11.2 13.2 11.2 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax1.3 (0.3)(1.6)(2.2)2.8 3.9 2.4 (0.2)3.0 
Effect of income tax expense (benefit)— — 0.3 0.3 (0.9)(0.9)(0.3)0.1 (0.7)
Return on Assets ("ROA"), core earnings 14.0 13.8 11.6 12.6 14.5 12.9 13.3 13.1 13.5 













39


Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Total net investment income$597 $540 $515 $640 $487 $541 $509 $1,652 $1,537 
Adjustment for income from limited partnerships and other alternative investments(72)(32)(26)(169)(62)(158)(126)(130)(346)
Net investment income excluding limited partnerships and other alternative investments$525 $508 $489 $471 $425 $383 $383 $1,522 $1,191 
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Total net investment income$460 $415 $392 $469 $360 $407 $382 $1,267 $1,149 
Adjustment for income from limited partnerships and other alternative investments(60)(26)(21)(119)(44)(123)(97)(107)(264)
Net investment income excluding limited partnerships and other alternative investments$400 $389 $371 $350 $316 $284 $285 $1,160 $885 
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Total net investment income$121 $113 $110 $154 $117 $130 $123 $344 $370 
Adjustment for income from limited partnerships and other alternative investments(12)(6)(5)(50)(18)(35)(29)(23)(82)
Net investment income excluding limited partnerships and other alternative investments$109 $107 $105 $104 $99 $95 $94 $321 $288 

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Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, as applicable, excluding derivatives book value and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of annualized investment yield to annualized investment yield, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Annualized investment yield4.2 %3.9 %3.7 %4.6 %3.5 %3.9 %3.6 %3.9 %3.7 %
Adjustment for income from limited partnerships and other alternative investments(0.1)%0.1 %0.1 %(0.9)%(0.2)%(0.9)%(0.7)%— %(0.6)%
Annualized investment yield excluding limited partnerships and other alternative investments4.1 %4.0 %3.8 %3.7 %3.3 %3.0 %2.9 %3.9 %3.1 %
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Annualized investment yield4.3 %3.9 %3.6 %4.4 %3.4 %3.9 %3.7 %3.9 %3.7 %
Adjustment for income from limited partnerships and other alternative investments(0.3)%0.1 %0.1 %(0.8)%(0.1)%(1.0)%(0.8)%— %(0.7)%
Annualized investment yield excluding limited partnerships and other alternative investments4.0 %4.0 %3.7 %3.6 %3.3 %2.9 %2.9 %3.9 %3.0 %
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2023Jun 30 2023Mar 31 2023Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Sept 30 2023Sept 30 2022
Annualized investment yield4.1 %3.9 %3.8 %5.3 %4.0 %4.4 %4.2 %3.9 %4.2 %
Adjustment for income from limited partnerships and other alternative investments— %0.1 %0.1 %(1.5)%(0.4)%(1.0)%(0.8)%0.1 %(0.7)%
Annualized investment yield excluding limited partnerships and other alternative investments4.1 %4.0 %3.9 %3.8 %3.6 %3.4 %3.4 %4.0 %3.5 %

41