8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 2, 2010

The Hartford Financial Services Group, Inc.
(Exact name of registrant as specified in its charter)

Delaware	001-13958	13-3317783
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Hartford Plaza, Hartford, Connecticut	06155
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 860-547-5000

Not Applicable

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On November 2, 2010, The Hartford Financial Services Group, Inc. (“The Hartford”) issued a press release announcing its financial results for the nine months ended September 30, 2010. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

Exhibit No.
99.1	Press Release of The Hartford Financial Services Group, Inc. dated November 2, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The Hartford Financial Services Group, Inc.
November 2, 2010	By:	/s/ Beth A. Bombara
		Name: Beth A. Bombara
		Title: Senior Vice President and Controller

EX-99.1

Exhibit 99.1

NEWS RELEASE

THE HARTFORD REPORTS THIRD QUARTER 2010 NET INCOME OF
$666 MILLION, COMPARED TO NET LOSS OF $220 MILLION
IN PRIOR YEAR

• Core earnings* of $710 million, or $1.43 per diluted share

• Investment portfolio continues to improve, with a net unrealized gain of $1.2 billion at end of third quarter, compared to a net unrealized loss of $1.5 billion at June 30, 2010

• Book value per common share of $45.80, up 11% sequentially and 21% year-over-year

• P&C Commercial written premium* up 4% over the prior year period

HARTFORD, Conn., November 2, 2010 — The Hartford Financial Services Group, Inc. (NYSE:HIG) today reported third quarter 2010 net income of $666 million, or $1.34 per diluted share. In the third quarter of 2009, the company reported a net loss of $220 million, or $(0.79) per diluted share. Core earnings for the third quarter of 2010 were $710 million, or $1.43 per diluted share, compared with core earnings of $660 million, or $1.56 per diluted share, for the prior year period.

“The Hartford delivered strong financial performance this quarter,” said Liam E. McGee, The Hartford’s chairman, president and chief executive officer. “These results were achieved through solid execution, including disciplined underwriting performance, improved investment results and growth in assets under management.”

“The environment in the commercial property and casualty lines remains competitive, and economic growth has been slow. In response, we are focused on execution — leveraging our capabilities to retain profitable business and to win new business where it makes sense for us, and driving greater efficiency. We are making good progress implementing our strategy and are well positioned for when the economy begins to expand,” added McGee.

THIRD QUARTER 2010 FINANCIAL RESULTS

	Quarterly Results
(in millions except per share data)	3Q ‘10		3Q ‘09			Change
Net income (loss)	$	666	$	(220	)	NM
Net income (loss) available to common shareholders per diluted share	$	1.34	$	(0.79	)	NM
Core earnings	$	710	$	660			8	%
Core earnings available to common shareholders per diluted share*	$	1.43	$	1.56			(8	%)
Book value per common share	$	45.80	$	37.90			21	%
Book value per common share (ex. AOCI)*	$	45.36	$	46.30			(2	%)

The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as “NM” or not meaningful.

The company’s third quarter 2010 core earnings included the effect of the following items, which contributed core earnings of $0.45 per diluted share in total (all numbers are after-tax unless otherwise noted):

• Positive DAC unlock of $166 million, or $0.34 per diluted share, driven by global equity market appreciation

• A benefit of $99 million, or $0.19 per diluted share, from net prior year reserve development in P&C Commercial and Consumer Markets

• A charge of $40 million, or $0.08 per diluted share, to increase reserves as a result of the company’s annual environmental reserve evaluation, included in the Corporate and Other segment

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COMMERCIAL MARKETS

Third Quarter 2010 Highlights:

• Strong profitability in P&C Commercial, with a 92.2% combined ratio, excluding catastrophes and prior year reserve development

• P&C Commercial written premium* up 4% from prior year period, driven by growth in the small commercial and specialty casualty lines

• In standard commercial lines, policy count retention was up 3 points over the prior year period and policies-in-force grew 4% over the prior year period

• Renewal written pricing remained positive in standard commercial lines, up 1% for the third consecutive quarter

• Disability claims experience remains elevated in Group Benefits, and the company is implementing rate changes to address loss cost and interest rate trends

P&C Commercial

	3Q ‘10			3Q ‘09
Written Premium (in millions)	$	1,447		$	1,387
Combined Ratio**		92.2	%		93.1	%

** Excludes catastrophes and prior year development

Group Benefits

	3Q ‘10			3Q ‘09
Fully Insured Premium*** (in millions)	$	1,043		$	1,059
Loss Ratio***		77.1	%		69.4	%

*** Excludes buyout premiums

Commercial Markets net income was $352 million for the third quarter of 2010, an increase of 25% compared with $282 million for the prior year period.

P&C Commercial net income was $306 million, an increase of 41% compared with $217 million for the prior year period. The increase in net income reflected lower catastrophes and underwriting expenses, higher investment income, and almost a full point improvement in the combined ratio, excluding catastrophes and prior year development, to 92.2%.

Group Benefits net income was $46 million, compared to $65 million for the prior year period. The decline reflected a 2% reduction in fully insured premium and an increase in loss costs.

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CONSUMER MARKETS

Third Quarter 2010 Highlights:

• Strong underwriting profitability, with a combined ratio of 93.3%, excluding catastrophes and prior year development

• Catastrophe ratio of 5.1 points, down from prior year level

• Continuing to sharpen focus on target customer groups and to implement rate increases where appropriate

• Renewal written price increases of 8% in auto and 11% in homeowners

	3Q ‘10			3Q ‘09
Written Premium (in millions)*	$	1,014		$	1,049
Combined Ratio**		93.3	%		94.6	%

** Excludes catastrophes and prior year development

Consumer Markets net income was $70 million for the third quarter of 2010, compared with $15 million for the prior year period. The increase was driven by significantly lower current accident year catastrophe losses, an improvement in ex-catastrophe current accident year underwriting results and an improvement in net realized capital gains and losses.

Written premiums were $1.01 billion, compared with $1.05 billion in the prior year period. The modest decline reflected the company’s rate and underwriting actions to increase profitability and the move towards a more preferred customer demographic in the agency channel.

WEALTH MANAGEMENT

Third Quarter 2010 Highlights:

• Net income of $320 million, up from a net loss of $335 million in the prior year period, driven by a significant decline in net realized losses

• Assets under management* were $301.0 billion at September 30, 2010, up 3% from the prior year period and up 6% sequentially

• Individual Life sales up 14% from prior year period

• Retirement Plans deposits up 13% from prior year period

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Account Values

(in billions)	Sept. 30, 2010		Sept. 30, 2009		Change
Global Annuity — U.S.	$	92.8	$	95.4		(3	%)
Global Annuity — International	$	38.3	$	39.3		(3	%)
Mutual Funds****	$	95.2	$	91.7		4	%
Retirement Plans	$	49.2	$	42.7		15	%

**** Beginning with the first quarter of 2010, investment-only mutual funds, Canadian mutual funds and proprietary mutual funds assets and results were transferred to the Mutual Funds business for reporting purposes on a prospective basis. The chart above provides the 2009 mutual fund account values on a pro forma basis. Proprietary mutual fund assets of $41.8 billion and $44.8 billion in years 2010 and 2009, respectively, are included in mutual funds and in other segments to the extent that they generate earnings for those segments.

Wealth Management — Deposits (in billions)

	3Q ‘10		2Q ‘10		1Q ‘10		4Q ‘09		3Q ‘09
Total Deposits	$	6.0	$	7.2	$	8.1	$	7.1	$	6.9

Wealth Management net income was $320 million for the third quarter of 2010, compared to a net loss of $335 million for the prior year period. The third quarter of 2010 included net realized capital losses of $308 million, pre tax. In the third quarter of 2009, net realized capital losses were $1.0 billion, pre tax.

Total Wealth Management deposits were $6.0 billion in the third quarter of 2010, compared to $7.2 billion in the second quarter of 2010 and $6.9 billion in the prior year period. Global Annuity deposits were down 71% compared with the prior year period due to the suspension of sales in International markets and the movement to a new product in the United States. Retail mutual fund deposits declined by 19% compared to the prior year period, as mutual funds across the industry experienced weak equity fund flows.

Individual Life sales increased 14% from the prior year period, reflecting strong progress in the independent agent channel. Retirement Plans deposits increased 13% compared to the prior year period.

Assets under management totaled $301.0 billion at September 30, 2010, compared to $291.8 billion at September 30, 2009. The increase reflects equity market appreciation and positive flows in non-annuity businesses, particularly in Retirement Plans.

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INVESTMENTS

Third Quarter 2010 Highlights:

• Pre-tax net investment income, excluding trading securities, increased 3% over the prior year period, primarily driven by an $81 million improvement in returns on limited partnerships and other alternative investments

• Investment portfolio had a net unrealized gain of $1.2 billion at end of third quarter of 2010, compared to a net unrealized loss of $1.5 billion at June 30, 2010

• Impairment losses and net additions to the mortgage loan loss reserve totaled $122 million, continuing to trend lower from previous quarters

• Continued to reduce risk in the investment portfolio by reducing commercial real estate exposures by approximately $800 million during the quarter

The Hartford’s total invested assets, excluding trading securities, were $101.1 billion as of September 30, 2010, compared with $96.0 billion as of September 30, 2009. Net investment income, excluding trading securities, was $1.1 billion, pre-tax, in the third quarter of 2010, a 3% increase over the prior year period.

The net unrealized gain on investments was $1.2 billion as of September 30, 2010, compared with a net unrealized loss of $1.5 billion as of June 30, 2010. The improvement was driven by improved security valuations due to declining interest rates and spread tightening across virtually all fixed maturity asset classes.

Impairments and the net increase to the mortgage loan loss reserve declined to $122 million in the third quarter of 2010. Credit impairments and additions to the mortgage loan reserve were $78 million, largely the result of property specific collateral deterioration associated with commercial real estate backed securities. The remaining impairments relate to securities the company intends to sell in the near future.

The Hartford continued to reduce investment portfolio risk during the third quarter of 2010, reducing its net commercial real estate-related holdings by about $800 million, as market prices improved. During the quarter, the company purchased $2.1 billion of investment-grade corporate debt with a focus on higher quality industrial and utility issuers that are well positioned in a modest economic growth environment.

2010 GUIDANCE

Based on the assumptions below, The Hartford has increased its 2010 core earnings per diluted share guidance to between $2.60 and $2.70. The new guidance reflects the company’s actual results for the first three quarters of 2010, as well as higher than expected P&C Commercial and Consumer Markets catastrophe losses recorded in October due to significant storm activity in the southwest United States. The previous guidance was a range of $2.10 to $2.30. The guidance contained within this news release is subject to unusual or unpredictable benefits or charges that might occur in 2010, as well as factors noted below. Historically, the company has frequently experienced unusual or unpredictable benefits and charges that were not anticipated in previously provided guidance.

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This guidance assumes the following:

• U.S. equity markets produce an annualized return of 9.0% (including 7.2% stock appreciation and 1.8% dividends) from the S&P 500 level of 1,183 on October 29, 2010;

• This guidance incorporates no estimate of the effect of the fourth quarter of 2010 unlock of the account values and related assumptions underlying the company’s estimate of future gross profits used in the determination of certain asset and liability balances, principally life deferred acquisition costs;

• A full year, pre-tax underwriting loss of $266 million from P&C other operations. In the last several years, underwriting losses in other operations have differed materially from the assumptions incorporated in guidance;

• A full year, total catastrophe ratio of 4.75% to 5.25% for the combined P&C Commercial and Consumer Markets segments, inclusive of estimated October catastrophe losses;

• An annualized yield on limited partnerships and other alternative investments of 0% for the fourth quarter of 2010. In the last several years, yields have differed materially from the assumptions incorporated in guidance; and

• Diluted weighted average shares of common stock outstanding of approximately 481 million for 2010.

The economy and market conditions remain uncertain and persistent stress in financial markets and recessionary global economic conditions increase the likelihood that the company’s 2010 earnings guidance will turn out to be incorrect. The company’s actual experience in 2010 will almost certainly differ from many of the assumptions described above, and investors should consider the risks and uncertainties that may cause the company’s actual results to differ, potentially materially, from the 2010 earnings guidance, including, but not limited to, those set forth in the discussion of forward looking statements at the end of this release and the risk factors included in the company’s quarterly reports on Form 10-Q for the quarters ended September 30, 2010, June 30, 2010 and March 31, 2010, and the annual report on Form 10-K for the year ended December 31, 2009.

CONFERENCE CALL

The Hartford will discuss its third quarter 2010 results in a conference call on Wednesday, November 3^rd at 10:00 a.m. EDT. The call, along with a slide presentation, can be simultaneously accessed through The Hartford’s website at ir.thehartford.com. More detailed financial information can be found in The Hartford’s Investor Financial Supplement for the third quarter of 2010, which is available on The Hartford’s website, ir.thehartford.com.

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ABOUT THE HARTFORD

Celebrating 200 years of helping its customers achieve what’s ahead, The Hartford (NYSE: HIG) is an insurance and wealth management company. Through its unique focus on customer needs, the company serves businesses and consumers by providing the products and solutions they need to protect their assets and income from risks and manage their wealth and retirement needs. A Fortune 100 company, The Hartford is recognized widely for its service expertise and as one of the world’s most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.

HIG-F
Media Contact(s):	Investor Contact(s):
Shannon Lapierre	Rick Costello
860-547-5624	860-547-8480
shannon.lapierre@thehartford.com	richard.costello@thehartford.com
Debora Raymond
860-547-9613
debora.raymond@thehartford.com

* Denotes financial measures not calculated based on generally accepted accounting principles (“non-GAAP”). More information is provided in the Discussion of Non-GAAP and Other Financial Measures section below.

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

The Hartford uses non-GAAP and other financial measures in this press release to assist investors in analyzing the company’s operating performance for the periods presented herein. Because The Hartford’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford’s non-GAAP and other financial measures to those of other companies.

The Hartford uses the non-GAAP financial measure core earnings (loss) as an important measure of the company’s operating performance. The Hartford believes that the measure core earnings (loss) provides investors with a valuable measure of the performance of the company’s ongoing businesses because it reveals trends in the company’s insurance and financial services businesses that may be obscured by the net effect of certain realized capital gains and losses. Some realized capital 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 the company’s business.

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Accordingly, core earnings (loss) excludes the effect of all realized gains and losses (net of tax and the effects of deferred policy acquisition costs) that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to the company’s insurance operations, so core earnings (loss) includes net realized gains and losses such as net periodic settlements on credit derivatives and net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the statement of operations such as net investment income (loss). Net income (loss) is the most directly comparable GAAP measure. Core earnings (loss) should not be considered as a substitute for net income (loss) and does not reflect the overall profitability of the company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate both net income (loss) and core earnings (loss) when reviewing the company’s performance. A reconciliation of net income (loss) to core earnings (loss) for the three and nine months ended September 30, 2009 and 2010 is set forth in the results by segment table. The 2010 earnings guidance presented in this release is based in part on core earnings (loss). A quantitative reconciliation of The Hartford’s net income (loss) to core earnings (loss) is not calculable on a forward-looking basis because it is not possible to provide a reliable forecast of realized capital gains and losses, which typically vary substantially from period to period.

Core earnings (loss) per share is calculated based on the non-GAAP financial measure core earnings (loss). The Hartford believes that the measure core earnings (loss) per share provides investors with a valuable measure of the company’s operating performance for many of the same reasons applicable to its underlying measure, core earnings (loss). Net income (loss) per share is the most directly comparable GAAP measure. Core earnings (loss) per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate both net income (loss) per share and core earnings (loss) per share when reviewing the company’s performance. A reconciliation of net income (loss) per share to core earnings (loss) per share for the three and nine months ended September 30, 2009 and 2010 is set forth on page 8 of The Hartford’s Investor Financial Supplement for the third quarter of 2010.

Written premium is a statutory accounting financial measure used by The Hartford as an important indicator of the operating performance of the company’s operations. Because written premium represents the amount of premium charged for policies issued, net of reinsurance, during a fiscal period, The Hartford believes it is useful to investors because it reflects current trends in The Hartford’s sale of property and casualty insurance products. Earned premium, the most directly comparable GAAP measure, represents all premiums that are recognized as revenues during a fiscal period. The difference between written premium and earned premium is attributable to the change in unearned premium reserves. A reconciliation of written premium to earned premium for P&C Commercial and Consumer Markets for the three and nine months ended September 30, 2009 and 2010 is set forth on pages of 14 and 19 of The Hartford’s Investor Financial Supplement for the third quarter of 2010.

Book value per common share excluding accumulated other comprehensive income (“AOCI”) is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) stockholders’ equity excluding AOCI, net of tax, by (b) common shares outstanding. The Hartford provides book value per common share excluding AOCI to enable investors to analyze the amount of the company’s net worth that is primarily attributable to the company’s business operations. The Hartford believes book value per common share 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. Book value per common share is the most directly comparable GAAP measure. A reconciliation of book value per common share to book value per common share excluding AOCI as of September 30, 2009 and 2010 is set forth in the results by segment table.

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Assets under management is an internal performance measure used by The Hartford because a significant portion of the company’s revenues are based upon asset values. These revenues increase or decrease with a rise or fall, correspondingly, in the level of assets under management. Assets under management are comprised of account values for Global Annuity — U.S., Global Annuity — International, Retirement Plans, Mutual Funds and Individual Life. Account values include policyholders’ balances for investment contracts and reserves for future policy benefits for insurance contracts. Mutual funds are owned by the shareholders of those funds and not by the Company. As such, the mutual fund assets and liabilities and related investment returns are not reflected in the Company’s consolidated financial statements since they are not assets, liabilities and operations of the Company.

The Hartford’s management evaluates profitability of the P&C Commercial and Consumer Markets segments primarily on the basis of underwriting results. Underwriting results is a before-tax 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 results are 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, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses. The Hartford believes that underwriting results provides investors with a valuable measure of before-tax profitability derived from underwriting activities, which are managed separately from the company’s investing activities. Underwriting results are presented for P&C Commercial and Consumer Markets in The Hartford’s Investor Financial Supplement. A reconciliation of underwriting results to net income (loss) is set forth on pages 14 and 19 of The Hartford’s Investor Financial Supplement for the third quarter of 2010.

The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. This ratio is a relative measurement that describes the related cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100.0 demonstrates underwriting profit; a combined ratio above 100.0 demonstrates underwriting losses. The combined ratio before catastrophes and prior accident year development represents the combined ratio for the current accident year, excluding the impact of catastrophes. 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 development. Combined ratio before catastrophes and prior accident year reserve development are presented for P&C Commercial and Consumer Markets in The Hartford’s Investor Financial Supplement. A reconciliation of combined ratio before catastrophes and prior year development to the combined ratio is set forth on pages 14 and 19 of The Hartford’s Investor Financial Supplement for the third quarter of 2010.

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A catastrophe is a severe loss, resulting from natural or man-made events, including fire, earthquake, windstorm, explosion, terrorist attack and similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance, and therefore their effects are not included in earnings or losses and loss adjustment expense reserves prior to occurrence. The Hartford believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings.

Some of the statements in this release should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to the future. Examples of forward-looking statements include, but are not limited to, statements we make regarding our future results of operations and our guidance for 2010 core earnings per diluted share. The Hartford cautions investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include risks and uncertainties related to the Company’s current operating environment, which reflects continued volatility in financial markets, constrained capital and credit markets and uncertainty about the strength of an economic recovery and the impact of U.S. and other governmental stimulus, budgetary and legislative initiatives, and whether management’s efforts to identify and address these risks will be timely and effective; risks associated with our continued execution of steps to realign our business and reposition our investment portfolio, including the potential need to take other actions, such as divestitures; market risks associated with our business, including changes in interest rates, credit spreads, equity prices and foreign exchange rates, as well as challenging or deteriorating conditions in key sectors such as the commercial real estate market, that have pressured our results and have continued to do so in 2010; volatility in our earnings resulting from our adjustment of our risk management program to emphasize protection of statutory surplus; the impact on our statutory capital of various factors, including many that are outside the Company’s control, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the valuation of the Company’s financial instruments that could result in changes to investment valuations; the subjective determinations that underlie the Company’s evaluation of other-than-temporary impairments on available-for-sale securities; losses due to nonperformance or defaults by others; the potential for further acceleration of deferred policy acquisition cost amortization; the potential for further impairments of our goodwill or the potential for additional valuation allowances against deferred tax assets; the possible occurrence of terrorist attacks and the Company’s ability to contain its exposure, including the effect of the absence or insufficiency of applicable terrorism legislation on coverage; the difficulty in predicting the Company’s potential exposure for asbestos and environmental claims; the possibility of a pandemic or other man-made disaster that may adversely affect our

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businesses and cost and availability of reinsurance; weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, natural disasters such as hurricanes and earthquakes, as well as climate change, including effects on weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain and snow; the response of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; the possibility of unfavorable loss development; actions by our competitors, many of which are larger or have greater financial resources than we do; the restrictions, oversight, costs and other consequences of being a savings and loan holding company, including from the supervision, regulation and examination by the Office of Thrift Supervision (the “OTS”), and in the future, as a result of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), The Federal Reserve and the Office of the Controller of the Currency as regulator of Federal Trust Bank; the potential effect of domestic and foreign regulatory developments, including those that could adversely impact the demand for the Company’s products, operating costs and required capital levels, including changes to statutory reserves and/or risk- based capital requirements related to secondary guarantees under universal life and variable annuity products; the cost and other effects of increased regulation as a result of the enactment of the Dodd-Frank Act, which will, among other effects, vest a newly created Financial Services Oversight Council with the power to designate “systemically important” institutions, require central clearing of, and/or impose new margin and capital requirements on, derivatives transactions, and may affect our ability as a savings and loan holding company to manage our general account by limiting or eliminating investments in certain private equity and hedge funds; the Company’s ability to distribute its products through distribution channels, both current and future; the uncertain effects of emerging claim and coverage issues; the ability of the Company to declare and pay dividends is subject to limitations; the Company’s ability to effectively price its property and casualty policies, including its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal of certain product lines; the Company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster or other unanticipated events; the risk that our framework for managing business risks may not be effective in mitigating risk and loss to us that could adversely affect our business; the potential for difficulties arising from outsourcing relationships; the impact of potential changes in federal or state tax laws, including changes affecting the availability of the separate account dividend received deduction; the impact of potential changes in accounting principles and related financial reporting requirements; the Company’s ability to protect its intellectual property and defend against claims of infringement; unfavorable judicial or legislative developments; and other factors described in The Hartford’s Quarterly Reports on Form 10-Q, the 2009 Annual Report on Form 10-K and other filings The Hartford makes with the Securities and Exchange Commission. Any forward-looking statement made by us in this release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

- financial tables follow -

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
RESULTS BY SEGMENT
(in millions except per share data)

	THREE MONTHS ENDED									NINE MONTHS ENDED
	Sept. 30,			Sept. 30,						Sept. 30,			Sept. 30,
	2009			2010			Change			2009			2010			Change
Property & Casualty Commercial		258			300			16	%		718			800			11	%
Group Benefits		85			44			(48	%)		192			128			(33	%)
Commercial Markets core earnings		343			344			—			910			928			2	%
Consumer Markets core earnings		24			69			188	%		112			117			4	%
Global Annuity		135			146			8	%		223			429			92	%
Life Insurance		56			57			2	%		137			169			23	%
Retirement Plans		8			10			25	%		14			33			136	%
Mutual Funds		11			19			73	%		17			67			NM
Wealth Management core earnings, Excluding DAC Unlock		210			232			10	%		391			698			79	%
DAC Unlock		231			166			(28	%)		(904	)		77		NM
Wealth Management core earnings		441			398			(10	%)		(513	)		775		NM
Corporate and Other core losses		(148	)		(101	)		32	%		(402	)		(473	)		(18	%)
CONSOLIDATED
Core earnings		660			710			8	%		107			1,347		NM
Add: Net realized capital losses, net of tax and DAC, excluded from core earnings [1][2]		(880	)		(44	)		95	%		(1,551	)		(286	)		82	%
Net Income (loss)		(220	)		666		NM				(1,444	)		1,061		NM
PER SHARE DATA
Diluted Earnings Per Share
Net income (loss)	$	(0.79	)	$	1.34		NM			$	(4.52	)	$	1.21		NM
Core earnings	$	1.56		$	1.43			(8	%)	$	0.12		$	1.82		NM
Book value per common share (including AOCI)	$	37.90		$	45.80			21	%
Per share impact of AOCI	$	(8.40	)	$	0.44		NM
Book value per common share (excluding AOCI)	$	46.30		$	45.36			(2	%)

[1]

Includes those net realized capital gains and losses not included in core earnings. See discussion of Non-GAAP and Other Financial Measures section of this release.

[2]

Consolidated, net realized capital losses, after-tax and DAC, includes DAC amortization (benefit) of $145, $(198), $524, and $(214) in the three and nine months ended September 30, 2009 and 2010, respectively. Consolidated, net realized capital losses, after-tax and DAC, includes tax benefit of $(480), $(21), $(741) and $(21) for the three and nine months ended September 30, 2009 and 2010, respectively.

The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as “NM” or not meaningful

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The Hartford
2010 Fiscal Year Guidance
Core Earnings Per Diluted Share of $2.60 — $2.70

Commercial Markets

P&C Commercial
Combined Ratio1	92.0% - 94.0%
2010 Full Year Written Premium Growth	Flat - 2.0%
Group Benefits
2010 Full Year Loss Ratio	76% - 78%
2010 Full Year Expense Ratio	26% - 28%
Fully Insured Ongoing Premium2	$4.0 - 4.2 Billion

[1]	Excludes catastrophes and prior year development
[2]	Guidance for fully insured ongoing premiums excludes buyout premiums and premium equivalents

Consumer Markets

	2010 Full Year Written	2010
	Premium Growth	Combined Ratio3
Consumer Markets	(3.5%) - (1.5%)	92% - 94%
Auto	(5.0%) - (3.0%)
Homeowners	1.5% - 3.5%

[3] Excludes catastrophes and prior year development

Wealth Management

	Deposits	Net Flows	Core Earnings ROA4
Global Annuity			35 - 40 bps
U.S. Variable Annuity	$1.25 - $1.5 Billion	($9.75) - ($9.25) Billion
Retirement Plans	$8.25 - $8.75 Billion	$1.5 - $2.0 Billion	6 - 11 bps
Mutual Funds5	$14.5 - $15.5 Billion	$2.0 - $3.0 Billion	8 - 12 bps
Life Insurance
After-tax Margin, excl. DAC Unlocks6	13.0% - 15.0%

[4]	ROA outlooks exclude impact of DAC unlocks
[5]	Mutual Fund Deposits and Net Flows guidance excludes Insurance product mutual funds
[6]	Guidance on after-tax margin is core earnings divided by total core revenue
*	Based on 2010 guidance assumptions outlined in the “2010 GUIDANCE” section of the news release.

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