# EDGAR Filing Document

**Accession Number:** 0000874766
**File Stem:** 0000874766-23-000012
**Filing Date:** 2023-2
**Character Count:** 285114
**Document Hash:** 6e613d13e91a4bf7706af273a04c2cc0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000874766-23-000012.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0000874766-23-000012

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20230202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HARTFORD FINANCIAL SERVICES GROUP, INC.
- **CENTRAL INDEX KEY:** 0000874766
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **IRS NUMBER:** 133317783
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13958
- **FILM NUMBER:** 23581119

**BUSINESS ADDRESS:**
- **STREET 1:** ONE HARTFORD PLAZA
- **CITY:** HARTFORD
- **STATE:** CT
- **ZIP:** 06155
- **BUSINESS PHONE:** 8605475000

**MAIL ADDRESS:**
- **STREET 1:** ONE HARTFORD PLAZA
- **CITY:** HARTFORD
- **STATE:** CT
- **ZIP:** 06155

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HARTFORD FINANCIAL SERVICES GROUP INC/DE
- **DATE OF NAME CHANGE:** 19990402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ITT HARTFORD GROUP INC /DE
- **DATE OF NAME CHANGE:** 19930328

?xml version="1.0" ? hig-20230202

**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): February 2, 2023**

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.** 

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-13958** | **13-3317783** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

**The Hartford Financial Services Group, Inc.**

**One Hartford Plaza, Hartford, Connecticut 06155** 

**(Address of Principal Executive Offices) (Zip Code)**

**Registrant's telephone number, including area code: (860) 547-5000** 

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:

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.01 per share | HIG | The New York Stock Exchange |
| 6.10% Notes due October 1, 2041 | HIG 41 | The New York Stock Exchange |
| Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share | HIG PR G | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition

On February 2, 2023, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended December 31, 2022, and (ii) its Investor Financial Supplement ("IFS") relating to its financial results for the quarterly period ended December 31, 2022. Copies of the press release and the IFS are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits

---

| | |
|:---|:---|
| Exhibit No. |  |
| 99.1 | <u>[Press Release of The Hartford Financial Services Group, Inc. dated February 2, 2023](ex991earningsnewsrelease12.htm)</u> |
| 99.2 | <u>[Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended December 31, 2022](ex992ifs12312022.htm)</u> |
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. |

---

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SIGNATURE

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.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 2, 2023 | By: | /s/ Scott R. Lewis |
|  |  | Name: | Scott R. Lewis |
|  |  | Title: | Senior Vice President and Controller |

---

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;![thehartfordlogorgba08.jpg](thehartfordlogorgba08.jpg)

**NEWS RELEASE** 

**The Hartford Announces Fourth Quarter And Full Year 2022 Financial Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fourth quarter 2022 net income available to common stockholders of $584 million ($1.81 per diluted share) compared to $724 million ($2.10 per diluted share) in the 2021 period, and core earnings\* of $746 million ($2.31 core earnings per diluted share\*) were up 7% from $697 million ($2.02 core earnings per diluted share) in the 2021 period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full year 2022 net income available to common stockholders of $1.8 billion ($5.44 per diluted share) and core earnings of $2.5 billion ($7.56 core earnings per diluted share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income ROE for the year of 11.6% and core earnings ROE\* of 14.4%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Property & Casualty (P&C) written premiums rose 8% in fourth quarter 2022 and 9% in the full year, driven by Commercial Lines premium growth of 9% in the quarter and 11% in the full year. Group Benefits fully insured ongoing premium growth of 9% in fourth quarter and 6% in the full year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial Lines fourth quarter combined ratio of 89.0 and underlying combined ratio\* of 87.4. Full year 2022 combined ratio of 90.2 and underlying combined ratio of 88.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Group Benefits fourth quarter net income margin was 8.2% and the core earnings margin\* was 8.3%. Full year net income margin was 5.0% and the core earnings margin was 6.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Returned $473 million to stockholders in the fourth quarter, including $350 million of shares repurchased and $123 million in common stockholder dividends paid. For the full year, returned $2.1 billion to stockholders, including $1.6 billion of shares repurchased and $506 million in common stockholder dividends paid.

*\* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures*

*\*\* All amounts and percentages set forth in this press release are approximate unless otherwise noted.*

------

HARTFORD, Conn., Feb. 2, 2023 – The Hartford (NYSE: HIG) today announced financial results for the fourth quarter and year ended Dec. 31, 2022.

"Fourth quarter results were excellent contributing to an outstanding 2022 that delivered a core earnings ROE of 14.4 percent. Results reflect strong underwriting with solid premium growth across the business, excellent margins, and a significant contribution from the investment portfolio. With another quarter of strong financial performance, The Hartford continues to demonstrate the power of our strategy and superior execution," said Chairman and CEO Christopher Swift.

Chief Financial Officer Beth Costello said, "Our P&C results for the year were excellent. Commercial Lines written premium exceeded $11 billion, up 11 percent for the year, and fourth quarter pricing in our U.S. Standard Commercial Lines book, excluding workers' compensation, accelerated one point from the third quarter to 7.9 percent. In Personal Lines, we are driving significant rate increases to address industry-wide loss cost pressure. In Group Benefits, a core earnings margin of 6.5 percent for the year benefited from 6 percent growth in fully insured ongoing premium and a reduced impact from excess mortality. We continue to actively manage our capital and, in 2022, returned $2.1 billion to shareholders through repurchases and dividends."

Swift continued, "I am confident that our diverse, yet complementary portfolio of businesses, underwriting expertise, distribution relationships and best in class talent will continue to drive consistent and sustainable returns. The Hartford franchise has never been better positioned to deliver industry-leading financial performance while creating value for all our stakeholders."

------

**CONSOLIDATED RESULTS:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions except per share data)* | **Dec 31 2022** | **Dec 31 2021** | **<br>Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| Net income available to common stockholders | $584 | $724 | (19)% | $1794 | $2344 | (23)% |
| *Net income available to common stockholders per diluted share*<sup>1</sup> | *$1.81* | *$2.10* | (14)% | *$5.44* | *$6.62* | (18)% |
| Core earnings<sup>2</sup> | $746 | $697 | 7% | $2492 | $2178 | 14% |
| *Core earnings per diluted share*<sup>2</sup> | *$2.31* | *$2.02* | 14% | *$7.56* | *$6.15* | 23% |
| Book value per diluted share |  |  |  | $41.53 | $51.36 | (19%) |
| Book value per diluted share (ex. AOCI)<sup>2</sup> |  |  |  | $53.63 | $50.86 | 5% |
| Net income available to common stockholders' return on equity (ROE)<sup>3</sup>, last 12-months |  |  |  | 11.6% | 13.1% | (1.5) |
| Core earnings ROE<sup>2,</sup><sup>3</sup>, last 12-months |  |  |  | 14.4% | 12.7% | 1.7 |

---

*[1] Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends*

*[2] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures*

*[3] Return on equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders' equity including AOCI; for core earnings ROE, the denominator is common stockholders' equity excluding AOCI*

*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*

Fourth quarter 2022 net income available to common stockholders was $584 million, or $1.81 per diluted share, compared to $724 million in fourth quarter 2021, primarily due to a decrease in P&C underwriting results and a decrease in net realized gains, partially offset by a reduction in excess mortality in Group Benefits and higher net investment income. Included in fourth quarter 2022 net income was a charge for a deferred gain on retroactive reinsurance of $229 million, before tax, related to asbestos and environmental reserves compared to a charge of $155 million, before tax, in fourth quarter 2021.

Fourth quarter 2022 core earnings of $746 million, or $2.31 per diluted share, increased from $697 million of core earnings in fourth quarter 2021. Contributing to the results were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower excess mortality losses in group life with $43 million, before tax, in fourth quarter 2022, compared to $161 million, before tax, in fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in earnings generated by 8% growth in P&C earned premium and a 9% increase in Group Benefits fully insured ongoing premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net investment income of $640 million, before tax, compared to $573 million in fourth quarter 2021, driven by a higher yield on variable rate securities and reinvesting at higher rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An improvement in the group disability loss ratio to 65.5% from 71.6%, driven by elevated estimated long-term disability incidence trends in fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial Lines loss and loss adjustment expense ratio of 57.4 compared to 52.2 in fourth quarter 2021, including 3.9 points of higher CATs and 2.0 points of less favorable prior accident year development (PYD). Underlying loss and loss adjustment expense ratio\* improved 0.8 points, to 55.7 in fourth quarter 2022 from 56.5 in fourth quarter 2021, primarily driven by margin improvement in Global Specialty.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• P&C CAY CAT losses of $135 million, before tax, in fourth quarter 2022, including $167 million for Winter Storm Elliott in December and $68 million of favorable development on prior quarter catastrophes, compared to CAY CAT losses of $22 million in fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net favorable PYD in core earnings of $46 million, before tax, in fourth quarter 2022, compared to net favorable PYD of $144 million in core earnings in fourth quarter 2021. Among other changes, net favorable PYD in fourth quarter 2022 primarily included reserve reductions in workers' compensation, catastrophes and bond, partially offset by reserve increases in general liability and commercial auto liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Personal Lines loss and loss adjustment expense ratio of 74.4 compared to 65.7 in fourth quarter 2021, including 0.6 points of higher CATs and 4.2 points of favorable PYD in fourth quarter 2021. Underlying loss and loss adjustment expense ratio of 71.5 in fourth quarter 2022 compared to 67.8 in fourth quarter 2021, with the increase largely due to higher severity in auto liability and physical damage, partially offset by earned pricing increases benefiting both auto and homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in the group life loss ratio apart from excess mortality driven by higher accidental death losses as compared to very favorable fourth quarter 2021 experience.

Full year 2022 net income available to common stockholders was $1.8 billion, or $5.44 per diluted share, compared to $2.3 billion in the 2021 period, primarily due to a change from net realized gains to net realized losses and a reduction in net investment income due to lower income from limited partnerships and other alternative investments (LPs), partially offset by lower excess mortality in Group Benefits and higher P&C underwriting results.

Full year 2022 core earnings of $2.5 billion, or $7.56 per diluted share, compared to $2.2 billion of core earnings in the 2021 period. Contributing to the results were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower excess mortality losses in group life, with $160 million, before tax, in 2022, compared to $583 million, before tax, in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in earnings generated by 8% growth in P&C earned premium and a 6% increase in Group Benefits fully insured ongoing premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net favorable PYD in core earnings of $193 million, before tax, in 2022, compared to net favorable PYD of $47 million in core earnings in 2021. Among other changes, net favorable PYD in 2022 primarily included reserve reductions in workers' compensation, catastrophes, package business and bond, partially offset by reserve increases in general liability and commercial auto liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net investment income of $2.2 billion, before tax, compared to $2.3 billion in 2021, with lower LP income and a decline in valuation of equity fund investments, partially offset by a higher yield on variable rate securities and reinvesting at higher rates. LP income was $515 million, before tax, a 14.4% annualized return, in 2022, compared to LP income of $732 million, for a 31.8% annualized return, in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in insurance operating costs and other expenses in P&C and Group Benefits, primarily driven by investments in technology, an increase in staffing costs and higher performance-based commissions as well as lower doubtful accounts expense in 2021, partially offset by incremental savings from the Hartford Next program and lower direct marketing costs in Personal Lines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Personal Lines loss and loss adjustment expense ratio of 73.4 compared to 63.1 in 2021, including 4.5 points of less favorable PYD and 1.4 points of higher CATs. Underlying loss and loss adjustment expense ratio of 66.8 in 2022 compared to 62.3 in 2021, with the increase largely due to higher auto liability and physical damage severity,

------

higher auto liability frequency, and higher non-CAT homeowners losses, partially offset by earned pricing increases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial Lines loss and loss adjustment expense ratio of 58.4 compared to 63.3 in 2021, including a change to net favorable PYD of 3.7 points and lower CATs of 1.0 point. Underlying loss and loss adjustment expense ratio improved 0.3 points, to 56.4 in 2022 from 56.7 in 2021, driven by margin improvement in Global Specialty and lower COVID-19 losses, partially offset by higher non-CAT property losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• P&C CAY CAT losses of $649 million, before tax, in 2022, compared to $664 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower earnings from Hartford Funds due to a decrease in daily average assets under management.

Dec. 31, 2022, book value per diluted share of $41.53 decreased 19%, from $51.36 at Dec. 31, 2021, principally due to a change from net unrealized gains to net unrealized losses on investments within AOCI as a result of an increase in interest rates and wider credit spreads.

Book value per diluted share (excluding AOCI)\* of $53.63 as of Dec. 31, 2022, increased from $50.86 at Dec. 31, 2021, as the impact from net income in excess of stockholder dividends through Dec. 31, 2022, was partially offset by the dilutive effect of share repurchases.

Net income available to common stockholders' ROE (net income ROE) was 11.6% for the twelve-month period ending Dec. 31, 2022 compared to 13.1% from fourth quarter 2021.

Core earnings ROE for the twelve-month period ending Dec. 31, 2022, was 14.4%, an increase of 1.7 points from fourth quarter 2021 due to higher trailing 12-month core earnings.

**BUSINESS RESULTS:**

**Commercial Lines**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| *($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **<br>Change** | **Dec 31 2022** | **Dec 31 2021** | **<br>Change** |
| **Net income** | **$566** | **$702** | **(19%)** | **$1624** | **$1757** | **(8)%** |
| **Core earnings** | **$562** | **$622** | **(10%)** | **$1925** | **$1631** | **18%** |
| **Written premiums** | **$2733** | **$2512** | **9%** | **$11158** | **$10041** | **11%** |
| **Underwriting gain (loss)**<sup>1</sup> | **$304** | **$387** | **(21%)** | **$1032** | **$402** | **157%** |
| **Underlying underwriting gain**<sup>1</sup> | **$350** | **$279** | **25%** | **$1242** | **$1039** | **20%** |
| **Losses and loss adjustment expense ratio** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 55.7 | 56.5 | (0.8) | 56.4 | 56.7 | (0.3) |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 4.1 | 0.2 | 3.9 | 4.2 | 5.2 | (1.0) |
| &nbsp;&nbsp;&nbsp;Unfavorable (favorable) prior accident year development | (2.5) | (4.5) | 2.0 | (2.2) | 1.5 | (3.7) |
| **Expenses** | **31.3** | **32.1** | **(0.8)** | 31.6 | 32.2 | (0.6) |
| **Policyholder dividends** | **0.3** | **0.3** | **—** | 0.3 | 0.3 |  |
| **Combined ratio** | **89.0** | **84.6** | **4.4** | **90.2** | **95.8** | **(5.6)** |
| &nbsp;&nbsp;&nbsp;Impact of catastrophes and PYD on combined ratio | (1.6) | 4.3 | (5.9) | (2.0) | (6.7) | 4.7 |
| **Underlying combined ratio** | **87.4** | **88.9** | **(1.5)** | **88.3** | **89.1** | **(0.8)** |

---

*[1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures*

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Fourth quarter 2022 net income of $566 million compared to net income of $702 million in fourth quarter 2021, principally due to a change from net realized gains to net realized losses and a decrease in underwriting gain, partially offset by higher net investment income.

Commercial Lines core earnings of $562 million in fourth quarter 2022 compared to $622 million in fourth quarter 2021. Contributing to the results were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CAY CAT losses of $114 million, before tax, in fourth quarter 2022, including $151 million for Winter Storm Elliott and $56 million of favorable development on prior quarter catastrophes, compared to CAY CAT losses of $6 million in fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Favorable PYD within core earnings of $68 million, before tax, in fourth quarter 2022, compared to $132 million of favorable PYD within core earnings in fourth quarter 2021. Among other changes the $68 million of net favorable PYD in fourth quarter 2022 primarily included reserve reductions in workers' compensation, catastrophes, and bond, partially offset by reserve increases in general liability and auto liability. Favorable PYD within core earnings in fourth quarter 2021 of $132 million primarily included reserve reductions in workers' compensation, catastrophes, and package business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An underlying loss and loss adjustment expense ratio of 55.7, in fourth quarter 2022 compared to 56.5 in fourth quarter 2021, with the decrease primarily driven by margin improvement in Global Specialty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A 10% growth in earned premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net investment income of $411 million before, tax, compared to $372 million in fourth quarter 2021, primarily driven by a higher yield on variable rate securities and reinvesting at higher rates, partially offset by lower returns on LP investments.

Combined ratio was 89.0 in fourth quarter 2022, 4.4 points higher than 84.6 in fourth quarter 2021, primarily due to 2.0 points of less favorable prior accident reserve development and 3.9 points of higher CAY CAT losses, partially offset by a 1.5 point improvement in the underlying combined ratio. Underlying combined ratio was 87.4, a 1.5 point improvement from fourth quarter 2021, primarily due to a 0.8 point decrease in the underlying loss and loss adjustment expense ratio and a 0.8 point decrease in the expense ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Small Commercial combined ratio of 89.4 compared to 79.0 in fourth quarter 2021 including 6.1 points of higher CAY CATs and 4.7 points of less favorable PYD. Underlying combined ratio of 87.5 improved from 88.0 in fourth quarter 2021 due to a lower expense ratio, largely offset by a higher package business loss ratio driven by non-CAT property losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Middle & Large Commercial combined ratio of 91.8 compared to 83.5 in fourth quarter 2021 including 5.2 points of higher CAY CATs and 2.9 points of less favorable PYD. Underlying combined ratio of 90.2 compared with 90.0 in fourth quarter 2021 due to a higher expense ratio, largely driven by a doubtful account reserve reduction in 4Q21, and higher non-CAT property losses that were largely offset by large losses in excess liability in 4Q21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Global Specialty combined ratio of 84.1 compared to 94.8 in fourth quarter 2021 including 1.6 points of lower CAY CATs and a 3.2 point change to favorable PYD. Underlying combined ratio of 83.0 improved 5.8 points from fourth quarter 2021 primarily due to a lower expense ratio and a lower loss ratio in U.S. wholesale, due in part to large losses in 4Q21, and improved results in financial lines and ocean marine lines of business as well as lower loss ratios in international marine and global reinsurance.

The expense ratio of 31.3% was down 0.8 points from fourth quarter 2021 driven by the impact of higher earned premium and incremental savings from the Hartford Next program, partially

------

offset by investments in technology and the impact of a decrease in the allowance for credit losses on premiums receivable recognized in fourth quarter 2021.

Fourth quarter 2022 written premiums of $2.7 billion were up 9% from fourth quarter 2021, reflecting higher new business and policy count retention in both Small Commercial and Middle Market, and the effect of renewal written price increases in Small Commercial, Middle Market, and Global Specialty, partially offset by lower new business in Global Specialty.

------

**Personal Lines**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Net income** | **$44** | **$81** | **(46%)** | **$91** | **$385** | **(76%)** |
| **Core earnings** | **$42** | **$70** | **(40%)** | **$119** | **$362** | **(67%)** |
| **Written premiums** | **$695** | **$668** | **4%** | **$2961** | **$2908** | **2%** |
| **Underwriting gain (loss)** | **$7** | **$45** | **(84%)** | **$(9)** | **$275** | **NM** |
| **Underlying underwriting gain** | **$29** | **$30** | **(3%)** | **$186** | **$299** | **(38%)** |
| **Losses and loss adjustment expense ratio** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 71.5 | 67.8 | 3.7 | 66.8 | 62.3 | 4.5 |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 2.8 | 2.2 | 0.6 | 7.1 | 5.7 | 1.4 |
| &nbsp;&nbsp;&nbsp;Unfavorable (favorable) prior accident year development | 0.1 | (4.2) | 4.3 | (0.4) | (4.9) | 4.5 |
| **Expenses** | **24.7** | **28.2** | **(3.5)** | 26.9 | 27.6 | (0.7) |
| **Combined ratio** | **99.1** | **93.9** | **5.2** | **100.3** | **90.7** | 9.6 |
| &nbsp;&nbsp;&nbsp;Impact of catastrophes and PYD on combined ratio | (2.9) | 2.0 | (4.9) | (6.7) | (0.8) | (5.9) |
| **Underlying combined ratio** | **96.2** | **95.9** | **0.3** | **93.7** | **89.9** | 3.8 |

---

Net income of $44 million in fourth quarter 2022 compared to net income $81 million in fourth quarter 2021 largely driven by a decrease in underwriting gain and, to a lesser extent, a decrease in net realized gains.

Personal Lines core earnings of $42 million compared to $70 million of core earnings in fourth quarter 2021. Contributing to the results were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An underlying loss and loss adjustment expense ratio of 71.5, in fourth quarter 2022 compared to 67.8 in fourth quarter 2021, with the increase primarily driven by higher severity in auto liability and physical damage, partially offset by earned pricing increases benefiting both auto and homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $31 million, before tax, of favorable PYD in fourth quarter 2021 compared to unfavorable PYD of $1 million in fourth quarter of 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A decrease in underwriting expenses largely attributable to lower direct marketing costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CAY CAT losses of $21 million, before tax, in fourth quarter 2022, including Winter Storm Elliott, compared to $16 million in fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net investment income, of $41 million, before tax, in fourth quarter 2022 compared to $38 million in fourth quarter 2021.

Combined ratio of 99.1 in fourth quarter 2022, compared to 93.9 in fourth quarter 2021, primarily due to 4.2 points of favorable PYD in fourth quarter 2021, a 3.7 point increase in CAY losses before CATs, and a 0.6 point increase in the CAY CAT ratio. Underlying combined ratio of 96.2 compared to 95.9 in fourth quarter 2021, primarily due to an increase in CAY losses before CATs in auto, partially offset by a 3.5 point decrease in the expense ratio and a lower non-CAT CAY homeowners loss ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Auto combined ratio of 108.6 compared to 102.4 in fourth quarter 2021. The underlying combined ratio of 108.9 increased from 105.4 in fourth quarter 2021, primarily due to an increase in auto liability and physical damage severity, partially offset by an increase in earned pricing and a lower expense ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Homeowners combined ratio of 78.1 compared to 74.8 in fourth quarter 2021. The underlying combined ratio of 68.3 was down from 75.1 in fourth quarter 2021, as the

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effect of earned pricing increases, lower severity and a lower expense ratio were partially offset by higher weather-related frequency.

The decrease in the expense ratio to 24.7 was mostly driven by lower direct marketing costs and, to a lesser extent, an increase in earned premium and incremental savings from the Hartford Next program.

Written premiums in fourth quarter 2022 were $695 million compared to $668 million in fourth quarter 2021 with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher renewal written price increases in auto and homeowners in response to increased loss cost trends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in new business in homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A slight increase in auto policy count retention with homeowners' retention flat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Partially offset by a decline in new business in auto.

**Group Benefits**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **<br>Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Net income** | **$140** | **$42** | **NM** | **$324** | **$249** | **30%** |
| **Core earnings (loss)** | **$141** | **($12)** | **NM** | **$427** | **$153** | **179%** |
| **Fully insured ongoing premiums (ex. buyout premiums)** | **$1498** | **$1380** | **9%** | **$5858** | **$5502** | **6%** |
| **Loss ratio** | **73.6%** | **84.0%** | **(10.4)** | **74.6%** | **81.1%** | **(6.5)** |
| **Expense ratio** | **25.0%** | **26.3%** | **(1.3)** | **25.3%** | **25.5%** | **(0.2)** |
| **Net income margin** | **8.2%** | **2.6%** | **5.6** | **5.0%** | **3.9%** | **1.1** |
| **Core earnings margin** | **8.3%** | **(0.8)%** | **9.1** | **6.5%** | **2.5%** | **4.0** |

---

Net income of $140 million in fourth quarter 2022 compared to $42 million in fourth quarter 2021, largely driven by lower excess mortality losses in group life and a lower loss ratio in group disability, partially offset by a decrease in net realized gains.

Core earnings were $141 million, improving from a core loss of $12 million in fourth quarter 2021, largely driven by a reduction in excess mortality losses, an improvement in the group disability loss ratio, higher net investment income and earnings generated by 9% growth in fully insured ongoing premiums, partially offset by a higher group life loss ratio excluding excess mortality\* and higher insurance operating expenses.

Fully insured ongoing premiums were up 9% compared to fourth quarter 2021, driven by an increase in exposure on existing accounts as well as strong persistency and sales. Fully insured ongoing sales were $102 million in fourth quarter 2022, up 52% over fourth quarter 2021, driven by an increase in group disability.

Loss ratio of 73.6% improved 10.4 points from fourth quarter 2021, driven by an improvement of 15.4 points in group life and 6.1 points in group disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Group life loss ratio of 89.6% improved 15.4 points, primarily due to $43 million, before tax, or 7.1 points, of excess mortality losses in fourth quarter 2022 compared to $161 million, before tax, or 27.2 points, of excess mortality losses in fourth quarter 2021. The group life loss ratio excluding excess mortality increased 4.7 points primarily due to higher accidental death losses as compared to very favorable fourth quarter 2021 experience.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Group disability loss ratio of 65.5% improved 6.1 points from fourth quarter 2021, driven by elevated estimated long-term disability incidence trends in fourth quarter 2021 and lower COVID-19 related short-term disability losses of 0.7 points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expense ratio of 25.0% improved 1.3 points from fourth quarter 2021, primarily due to the effect of higher earned premiums, lower premium taxes, and incremental expense savings from Hartford Next, partially offset by higher claims staffing and investments in technology.

**Hartford Funds**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Net income** | **$45** | **$62** | **(27)%** | **$162** | **$217** | **(25)%** |
| **Core earnings** | **$39** | **$60** | **(35)%** | **$180** | **$214** | **(16)%** |
| **Daily average Hartford Funds AUM** | **$124087** | **$156533** | **(21)%** | **$135124** | **$151347** | **(11)%** |
| **Mutual Funds and exchange-traded funds (ETF) net flows** | **$(3293)** | **$358** | **NM** | **$(7951)** | **$3867** | **NM** |
| **Total Hartford Funds AUM** | **$124107** | **$157895** | **(21)%** | **$124107** | **$157895** | **(21)%** |

---

Net income of $45 million in fourth quarter 2022, compared to $62 million in fourth quarter 2021, and core earnings of $39 million compared to $60 million in fourth quarter 2021 largely driven by lower daily average Hartford Funds AUM resulting in lower fee income and variable expenses.

Daily average AUM of $124 billion in fourth quarter 2022 declined 21% from fourth quarter 2021 driven by decreases in market values and, to a lesser extent, net outflows over the preceding twelve months.

Mutual fund and ETF net outflows totaled $3.3 billion in fourth quarter 2022, compared to net inflows of $0.4 billion in fourth quarter 2021.

**Corporate**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Net loss** | **$(22)** | **$(37)** | **41%** | **$(196)** | **$(148)** | **(32)%** |
| **Net loss available to common stockholders** | **$(27)** | **$(42)** | **36%** | **$(217)** | **$(169)** | **(28)%** |
| **Core loss** | **$(33)** | **$(41)** | **20%** | **$(162)** | **$(200)** | **19%** |
| **Other revenue (loss)** | **$0** | **$0** | **NM** | **$1** | **$(10)** | **NM** |
| **Net investment income, before tax** | **$13** | **$16** | **(19)%** | **$26** | **$24** | **8%** |
| **Interest expense and preferred dividends, before tax** | **$55** | **$67** | **(18)%** | **$234** | **$255** | **(8)%** |

---

Net loss available to common stockholders of $27 million in fourth quarter 2022 compared to a net loss available to common stockholders of $42 million in fourth quarter 2021, primarily driven by a decrease in interest expense and an increase in net realized gains.

Fourth quarter 2022 core loss of $33 million compared to a fourth quarter 2021 core loss of $41 million primarily due to lower interest expense, partially offset by lower net investment income.

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**INVESTMENT INCOME AND PORTFOLIO DATA:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| <br>*($ in millions, unless otherwise noted)* | **Dec 31 2022** | **Dec 31 2021** | **<br>Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Net investment income, before tax** | **$640** | **$573** | **12%** | **$2177** | **$2313** | **(6%)** |
| **Annualized investment yield, before tax** | **4.6%** | **4.1%** | **0.5** | **3.9%** | **4.3%** | **(0.4)** |
| **Annualized investment yield, before tax, excluding LPs**<sup>1</sup> | **3.7%** | **3.1%** | **0.6** | **3.2%** | **3.1%** | **0.1** |
| **Annualized LP yield, before tax** | **16.8%** | **22.1%** | **(5.3)** | **14.4%** | **31.8%** | **(17.4)** |
| **Annualized investment yield, after tax** | **3.7%** | **3.4%** | **0.3** | **3.2%** | **3.5%** | **(0.3)** |

---

*[1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures*

Fourth quarter 2022 consolidated net investment income of $640 million increased from $573 million in fourth quarter 2021, largely driven by a higher yield on variable rate securities and reinvesting at higher rates.

Fourth quarter 2022 benefited from $169 million, before tax, or a 16.8% annualized return, on LPs, while fourth quarter of 2021 benefited from $170 million of LP income, or a 22.1% annualized return. Higher income from sales of underlying real estate properties in fourth quarter 2022 was offset by lower returns on private equity funds. Income from private equity and other funds is generally reported on a three-month lag.

Net realized gains decreased to $22 million, before tax, in fourth quarter 2022, from $212 million, before tax, in fourth quarter 2021 primarily due to a change from net gains to net losses on sales of fixed maturities.

Total invested assets of $52.6 billion decreased 9% from Dec. 31, 2021, primarily due to a decrease in valuations of fixed maturities driven by higher interest rates and wider credit spreads. The decrease in fair value of fixed maturities was partially offset by an increase in other asset classes, including mortgage loans and LPs.

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**CONFERENCE CALL**

The Hartford will discuss its fourth quarter and full year 2022 financial results and its 2023 outlook on a webcast at 9:00 a.m. EST on Friday, Feb. 3, 2023. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at <u>https://ir.thehartford.com</u>. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for Dec. 31, 2022, and the fourth quarter 2022 Financial Results Presentation, both of which are available at <u>https://ir.thehartford.com</u>.

**About The Hartford**

The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at <u>https://www.thehartford.com</u>.

The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Connecticut. For additional details, please read <u>https://www.thehartford.com/legal-notice</u>.

HIG-F

From time to time, The Hartford may use its website and/or social media outlets, such as Twitter and Facebook, to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at <u>https://ir.thehartford.com.</u> In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at <u>https://ir.thehartford.com</u>.

**Media Contacts:**&nbsp;&nbsp;&nbsp;&nbsp;**Investor Contact:**

Michelle Loxton &nbsp;&nbsp;&nbsp;&nbsp;Susan Spivak Bernstein

860-547-7413 &nbsp;&nbsp;&nbsp;&nbsp;860-547-6233

michelle.loxton@thehartford.com &nbsp;&nbsp;&nbsp;&nbsp;susan.spivak@thehartford.com

Matthew Sturdevant

860-547-8664

matthew.sturdevant@thehartford.com

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** |
| **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** |
| **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* |
|  | **Commercial Lines** | **Personal Lines** | **P&C <br>Other Ops** | **Group Benefits** | **Hartford Funds** | **Corporate** | **Consolidated** |
| Earned premiums | $2767 | $754 | $— | $1498 | $— | $— | $5019 |
| Fee income | 10 | 7 |  | 48 | 241 | 12 | 318 |
| Net investment income | 411 | 41 | 17 | 154 | 4 | 13 | 640 |
| Other revenue |  | 17 |  |  |  |  | 17 |
| Net realized gains (losses) | (1) | 3 | 1 | 1 | 7 | 11 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **3187** | **822** | **18** | **1701** | **252** | **36** | **6016** |
| Benefits, losses, and loss adjustment expenses | 1588 | 561 | 250 | 1138 |  | 3 | 3540 |
| Amortization of DAC | 408 | 58 |  | 7 | 2 |  | 475 |
| Insurance operating costs and other expenses | 471 | 148 | 2 | 371 | 193 | 13 | 1198 |
| Restructuring and other costs |  |  |  |  |  | 3 | 3 |
| Interest expense |  |  |  |  |  | 50 | 50 |
| Amortization of other intangible assets | 8 |  |  | 10 |  |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total benefits, losses and expenses** | **2475** | **767** | **252** | **1526** | **195** | **69** | **5284** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **712** | **55** | **(234)** | **175** | **57** | **(33)** | **732** |
| Income tax expense (benefit) | 146 | 11 | (50) | 35 | 12 | (11) | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **566** | **44** | **(184)** | **140** | **45** | **(22)** | **589** |
| Preferred stock dividends |  |  |  |  |  | 5 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss) available to common stockholders** | **566** | **44** | **(184)** | **140** | **45** | **(27)** | **584** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss)** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 1 | (3) | (1) | (2) | (7) | (10) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax |  |  |  |  |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 3 |  |  | 2 |  |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax |  |  | 229 |  |  |  | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (8) | 1 | (49) | 1 | 1 | 1 | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**562** | $**42** | $**(5)** | $**141** | $**39** | $**(33)** | $**746** |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** |
| **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** |
| **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* |
|  | **Commercial Lines** | **Personal Lines** | **P&C <br>Other Ops** | **Group Benefits** | **Hartford Funds** | **Corporate** | **Consolidated** |
| Earned premiums | $2513 | $738 | $— | $1380 | $— | $— | $4631 |
| Fee income | 9 | 8 |  | 47 | 305 | 12 | 381 |
| Net investment income | 372 | 38 | 17 | 128 | 2 | 16 | 573 |
| Other revenue | 1 | 18 |  |  |  |  | 19 |
| Net realized gains | 118 | 12 | 6 | 70 | 3 | 3 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **3013** | **814** | **23** | **1625** | **310** | **31** | **5816** |
| Benefits, losses, and loss adjustment expenses | 1313 | 485 | 174 | 1198 |  | 3 | 3173 |
| Amortization of DAC | 360 | 57 |  | 8 | 3 |  | 428 |
| Insurance operating costs and other expenses | 456 | 172 | 3 | 358 | 229 | 15 | 1233 |
| Restructuring and other costs |  |  |  |  |  | 2 | 2 |
| Interest expense |  |  |  |  |  | 62 | 62 |
| Amortization of other intangible assets | 8 |  |  | 10 |  |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total benefits, losses and expenses** | **2137** | **714** | **177** | **1574** | **232** | **82** | **4916** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **876** | **100** | **(154)** | **51** | **78** | **(51)** | **900** |
| Income tax expense (benefit) | 174 | 19 | (33) | 9 | 16 | (14) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **702** | **81** | **(121)** | **42** | **62** | **(37)** | **729** |
| Preferred stock dividends | **—** | **—** | **—** | **—** | **—** | **5** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss) available to common stockholders** | **702** | **81** | **(121)** | **42** | **62** | **(42)** | **724** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss)** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (120) | (13) | (6) | (70) | (3) |  | (212) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other costs |  |  |  |  |  | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 18 |  | 155 |  |  |  | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 4 |  |  | 1 |  |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 18 | 2 | (30) | 15 | 1 | (1) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**622** | $**70** | $**(2)** | $**(12)** | $**60** | $**(41)** | $**697** |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** |
| **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** |
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* |
|  | **Commercial Lines** | **Personal Lines** | **P&C <br>Other Ops** | **Group Benefits** | **Hartford Funds** | **Corporate** | **Consolidated** |
| Earned premiums | $10571 | $2949 | $— | $5870 | $— | $— | $19390 |
| Fee income | 39 | 30 |  | 187 | 1044 | 49 | 1349 |
| Net investment income | 1415 | 140 | 63 | 524 | 9 | 26 | 2177 |
| Other revenue (loss) | (1) | 73 |  |  |  | 1 | 73 |
| Net realized losses | (385) | (35) | (16) | (122) | (24) | (45) | (627) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **11639** | **3157** | **47** | **6459** | **1029** | **31** | **22362** |
| Benefits, losses, and loss adjustment expenses | 6169 | 2164 | 280 | 4520 |  | 9 | 13142 |
| Amortization of DAC | 1563 | 228 |  | 33 | 11 |  | 1835 |
| Insurance operating costs and other expenses | 1828 | 650 | 9 | 1467 | 815 | 61 | 4830 |
| Restructuring and other costs |  |  |  |  |  | 13 | 13 |
| Interest expense |  |  |  |  |  | 213 | 213 |
| Amortization of other intangible assets | 29 | 2 |  | 40 |  |  | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total benefits and expenses** | **9589** | **3044** | **289** | **6060** | **826** | **296** | **20104** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **2050** | **113** | **(242)** | **399** | **203** | **(265)** | **2258** |
| Income tax expense (benefit) | 426 | 22 | (52) | 75 | 41 | (69) | 443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **1624** | **91** | **(190)** | **324** | **162** | **(196)** | **1815** |
| Preferred stock dividends | **—** | **—** | **—** | **—** |  | 21 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Income (loss) available to common stockholders** | **1624** | **91** | **(190)** | **324** | **162** | **(217)** | **1794** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss)** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 383 | 35 | 16 | 122 | 24 | 46 | 626 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  |  |  |  | 9 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs, before tax |  |  |  |  |  | 13 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 13 |  |  | 8 |  |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax |  |  | 229 |  |  |  | 229 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (95) | (7) | (52) | (27) | (6) | (13) | (200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**1925** | $**119** | $**3** | $**427** | $**180** | $**(162)** | $**2492** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** | **THE HARTFORD FINANCIAL SERVICES GROUP, INC.** |
| **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** | **CONSOLIDATING INCOME STATEMENTS** |
| **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* | *($ in millions)* |
|  | **Commercial Lines** | **Personal Lines** | **P&C <br>Other Ops** | **Group Benefits** | **Hartford Funds** | **Corporate** | **Consolidated** |
| Earned premiums | 9541 | 2954 |  | 5504 |  |  | 17999 |
| Fee income | 34 | 32 |  | 183 | 1189 | 50 | 1488 |
| Net investment income | 1502 | 157 | 75 | 550 | 5 | 24 | 2313 |
| Other revenue (loss) | 11 | 80 |  |  |  | (10) | 81 |
| Net realized gains | 260 | 29 | 13 | 130 | 4 | 73 | 509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **11348** | **3252** | **88** | **6367** | **1198** | **137** | **22390** |
| Benefits, losses, and loss adjustment expenses | 6044 | 1864 | 202 | 4612 |  | 7 | 12729 |
| Amortization of DAC | 1398 | 230 |  | 40 | 12 |  | 1680 |
| Insurance operating costs and other expenses | 1718 | 676 | 9 | 1373 | 913 | 90 | 4779 |
| Restructuring and other costs |  |  |  |  |  | 1 | 1 |
| Interest expense |  |  |  |  |  | 234 | 234 |
| Amortization of other intangible assets | 29 | 2 |  | 40 |  |  | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total benefits and expenses** | **9189** | **2772** | **211** | **6065** | **925** | **332** | **19494** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **2159** | **480** | **(123)** | **302** | **273** | **(195)** | **2896** |
| Income tax expense (benefit) | 402 | 95 | **(28)** | 53 | 56 | (47) | 531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **1757** | **385** | **(95)** | **249** | **217** | **(148)** | **2365** |
| Preferred stock dividends | **—** | **—** | **—** | **—** |  | 21 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss) available to common stockholders** | **1757** | **385** | **(95)** | **249** | **217** | **(169)** | **2344** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) available to common stockholders to core earnings (loss)** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (260) | (29) | (13) | (129) | (4) | (70) | (505) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs, before tax |  |  |  |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 20 |  |  | 6 |  | 32 | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 91 |  | 155 |  |  |  | 246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 23 | 6 | (29) | 27 | 1 | 6 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | **1631** | **362** | **18** | **153** | **214** | **(200)** | $**2178** |

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**DISCUSSION OF NON-GAAP FINANCIAL MEASURES**

The Hartford uses non-GAAP 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 financial measures to those of other companies. Definitions and calculations of other financial measures used in this press release can be found below and in The Hartford's Investor Financial Supplement for fourth quarter 2022, which is available on The Hartford's website, <u>https://ir.thehartford.com.</u>

**<u>Annualized investment yield, excluding limited partnerships and other alternative investments</u>** - 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, excluding repurchase agreement and securities lending collateral, 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 the annualized investment yield, before tax, to annualized investment yield excluding limited partnerships and other alternatives investments, before tax, for the quarterly periods ended Dec. 31, 2022 and 2021 is provided in the table below.

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** |
| | **Consolidated** | **Consolidated** |
| Annualized investment yield, before tax | 4.6% | 4.1% |
| Impact on annualized investment yield of limited partnerships and other alternative investments, before tax | (0.9)% | (1.0)% |
| Annualized investment yield excluding limited partnerships and other alternative investments, before tax | 3.7% | 3.1% |

---

---

| | | |
|:---|:---|:---|
| | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** |
| | **Consolidated** | **Consolidated** |
| Annualized investment yield, before tax | 3.9% | 4.3% |
| Impact on annualized investment yield of limited partnerships and other alternative investments, before tax | (0.7)% | (1.2)% |
| Annualized investment yield excluding limited partnerships and other alternative investments, before tax | 3.2% | 3.1% |

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**<u>Book</u> <u>value per diluted share (excluding AOCI)</u>** - 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. A reconciliation of book value per diluted share to book value per diluted share (excluding AOCI) is provided in the table below.

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| | | | |
|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| Book value per diluted share | $41.53 | $51.36 | (19%) |
| Per diluted share impact of AOCI | $12.10 | $(0.50) | NM |
| **Book value per diluted share (excluding AOCI)** | **$53.63** | **$50.86** | **5%** |

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**<u>Core earnings</u> -** 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 available to common stockholders, 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.

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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) to core earnings for the quarterly periods and twelve months ended Dec. 31, 2022 and 2021, is included in this press release. A reconciliation of net income (loss) to core earnings for individual reporting segments can be found in this press release under the heading "The Hartford Financial Services Group, Inc. Consolidating Income Statements" and in The Hartford's Investor Financial Supplement for the quarter ended Dec. 31, 2022.

**<u>Core earnings margin</u>** - 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 for the quarterly periods and twelve months ended Dec. 31, 2022 and 2021, is set forth below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| **Margin** | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| Net income margin | 8.2% | 2.6% | 5.6 | 5.0% | 3.9% | 1.1 |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income margin to core earnings margin:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), before tax | (0.1)% | (4.3)% | 4.2 | 1.8% | (2.0)% | 3.8 |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.1% | 0.1% |  | 0.1% | 0.1% |  |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 0.1% | 0.8% | (0.7) | (0.4)% | 0.5% | (0.9) |
| **Core earnings margin** | **8.3%** | **(0.8)%** | **9.1** | **6.5%** | **2.5%** | **4.0** |

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**<u>Core earnings per diluted share</u>** - 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 common share to core earnings per diluted share for the quarterly periods and twelve months ended Dec. 31, 2022 and 2021 is provided in the table below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **PER SHARE DATA** | | | | | | |
| Diluted earnings per common share: |  |  |  |  |  |  |
| **Net income available to common stockholders per share**<sup>1</sup> | **$1.81** | **$2.10** | **(14)%** | **$5.44** | **$6.62** | **(18)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (0.07) | (0.61) | 89% | 1.90 | (1.43) | **NM** |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 0.01 | 0.01 | —% | 0.04 |  | **NM** |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  | —% | 0.03 |  | **NM** |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.02 | 0.01 | 100% | 0.06 | 0.16 | **(63)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 0.71 | 0.50 | 42% | 0.69 | 0.69 | **—%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) on items excluded from core earnings | (0.17) | 0.01 | NM | (0.60) | 0.11 | **NM** |
| **Core earnings per diluted share** | **$2.31** | **$2.02** | **14%** | **$7.56** | **$6.15** | **23%** |

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*[1] Net income available to common stockholders includes dilutive potential common shares*

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**<u>Core Earnings Return on Equity</u>** - 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 quantitative reconciliation of net income available to common stockholders ROE to core earnings ROE is not calculable on a forward-looking basis because it is not possible to provide a reliable forecast of realized gains and losses, which typically vary substantially from period to period.

A reconciliation of consolidated net income available to common stockholders ROE to consolidated core earnings ROE is set forth below.

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| | | |
|:---|:---|:---|
| | **Last Twelve Months Ended** | **Last Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** |
| **Net income available to common stockholders ROE** | **11.6%** | **13.1%** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income available to common stockholders ROE to core earnings ROE:** |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) excluded from core earnings, before tax | 4.1% | (2.8)% |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 0.1% | —% |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax | 0.1% | —% |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.1% | 0.3% |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 1.5% | 1.4% |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) on items not included in core earnings | (1.3)% | 0.2% |
| &nbsp;&nbsp;&nbsp;Impact of AOCI, excluded from core earnings ROE | (1.8)% | 0.5% |
| **Core earnings ROE** | **14.4%** | **12.7%** |

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**<u>Underlying combined ratio-</u>** 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 individual reporting segments can be found in this press release under the heading "Business Results" for Commercial Lines" and "Personal Lines". A reconciliation of the combined ratio to underlying combined ratio for lines of business within the Company's P&C reporting segments is set forth below.

**SMALL COMMERCIAL**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Combined ratio** | **89.4** | **79.0** | **10.4** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | (6.3) | (0.2) | (6.1) |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 4.5 | 9.2 | (4.7) |
| **Underlying combined ratio** | **87.5** | **88.0** | **(0.5)** |

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**MIDDLE & LARGE COMMERCIAL**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Combined ratio** | **91.8** | **83.5** | **8.3** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | (3.1) | 2.1 | (5.2) |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 1.5 | 4.4 | (2.9) |
| **Underlying combined ratio** | **90.2** | **90.0** | **0.2** |

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**GLOBAL SPECIALTY**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Combined ratio** | **84.1** | **94.8** | **(10.7)** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | (1.9) | (3.5) | 1.6 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 0.7 | (2.5) | 3.2 |
| **Underlying combined ratio** | **83.0** | **88.8** | **(5.8)** |

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**PERSONAL LINES AUTO**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Combined ratio** | **108.6** | **102.4** | **6.2** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | (0.1) | (0.4) | 0.3 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 0.3 | 3.4 | (3.1) |
| **Underlying combined ratio** | **108.9** | **105.4** | **3.5** |

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**PERSONAL LINES HOMEOWNERS**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Combined ratio** | **78.1** | **74.8** | **3.3** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | (8.8) | (6.0) | (2.8) |
| &nbsp;&nbsp;&nbsp;Prior accident year development | (1.0) | 6.2 | (7.2) |
| **Underlying combined ratio** | **68.3** | **75.1** | **(6.8)** |

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**<u>Underwriting gain (loss)</u>** - 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. A reconciliation of net income to underwriting results for the quarterly periods ended Dec. 31, 2022 and 2021, is set forth below.

**<u>Underlying underwriting gain (loss)</u>** - 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. A reconciliation of net income (loss) to underlying underwriting gain (loss) for individual reporting segments for the quarterly periods ended Dec. 31, 2022 and 2021, is set forth below.

**COMMERCIAL LINES**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income** | $**566** | $**702** | $**1624** | $**1757** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to underwriting gain** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (411) | (372) | (1415) | (1502) |
| &nbsp;&nbsp;Net realized losses (gains) | 1 | (118) | 385 | (260) |
| &nbsp;&nbsp;&nbsp;Other expense (income) | 2 | 1 | 12 | 5 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 146 | 174 | 426 | 402 |
| **Underwriting gain (loss)** | **304** | **387** | **1032** | **402** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile underwriting gain to underlying underwriting gain** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 114 | 6 | 441 | 496 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | (68) | (114) | (231) | 141 |
| **Underlying underwriting gain** | $**350** | $**279** | $**1242** | $**1039** |

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**PERSONAL LINES**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income** | $**44** | $**81** | $**91** | $**385** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to underwriting gain** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (41) | (38) | (140) | (157) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | (3) | (12) | 35 | (29) |
| &nbsp;&nbsp;&nbsp;Net servicing and other expense (income) | (4) | (5) | (17) | (19) |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 11 | 19 | 22 | 95 |
| **Underwriting gain (loss)** | **7** | **45** | **(9)** | **275** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile underwriting gain (loss) to underlying underwriting gain** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 21 | 16 | 208 | 168 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 1 | (31) | (13) | (144) |
| **Underlying underwriting gain** | $**29** | $**30** | $**186** | $**299** |

---

**PROPERTY & CASUALTY**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income** | $**426** | $**662** | $**1525** | $**2047** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to underwriting gain (loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (469) | (427) | (1618) | (1734) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | (3) | (136) | 436 | (302) |
| &nbsp;&nbsp;&nbsp;Net servicing and other expense (income) | (2) | (3) | (5) | (13) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 107 | 160 | 396 | 469 |
| **Underwriting gain (loss)** | **59** | **256** | **734** | **467** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile underwriting gain (loss) to underlying underwriting gain** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 135 | 22 | 649 | 664 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 183 | 29 | 36 | 199 |
| **Underlying underwriting gain** | $**377** | $**307** | $**1419** | $**1330** |

---

------

**<u>Underlying loss and loss adjustment expense ratio -</u>** This non-GAAP financial measure of the loss and loss adjustment expense ratio for Commercial Lines and Personal Lines represents the loss and loss adjustment expense ratio before catastrophes and prior accident year development. The loss and loss adjustment expense ratio is the most directly comparable GAAP measure. The underlying loss and loss adjustment expense 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 reserve development. A reconciliation of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio for the quarterly periods ended Dec. 31, 2022 and 2021, is set forth below.

**Commercial Lines**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Loss and loss adjustment expense ratio** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 57.4 | 52.2 | 5.2 | 58.4 | 63.3 | (4.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (4.1) | (0.2) | (3.9) | (4.2) | (5.2) | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 2.5 | 4.5 | (2.0) | 2.2 | (1.5) | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underlying loss and loss adjustment expenses | 55.7 | 56.5 | (0.8) | 56.4 | 56.7 | (0.3) |

---

**Personal Lines**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Loss and loss adjustment expense ratio** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 74.4 | 65.7 | 8.7 | 73.4 | 63.1 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (2.8) | (2.2) | (0.6) | (7.1) | (5.7) | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | (0.1) | 4.2 | (4.3) | 0.4 | 4.9 | (4.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underlying loss and loss adjustment expenses | 71.5 | 67.8 | 3.7 | 66.8 | 62.3 | 4.5 |

---

------

**<u>Group life loss ratio excluding excess mortality -</u>** This non-GAAP financial measure of the loss ratio for the Group Benefits segment represents the ratio of group life benefits, losses and loss adjustment expenses, excluding those related to buyout premiums and to excess mortality, divided by premiums and other considerations, excluding buyout premiums. Excess mortality includes both claims where COVID-19 is specifically listed as the cause of death and indirect impacts of the pandemic such as causes of death due to patients deferring regular treatments of chronic conditions. The Company believes that the group life loss ratio excluding excess mortality provides investors with an important measure of the trend in the group life business because it excludes the impact of volatile and unpredictable mortality arising from the COVID-19 pandemic. The most directly comparable U.S. GAAP measure is the group life loss ratio, calculated as the ratio of group life benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. A reconciliation of the group life loss ratio to the group life loss ratio excluding excess mortality is set forth below.

**Group Life**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Dec 31 2022** | **Dec 31 2021** | **Change** |
| **Group life loss ratio** | **89.6%** | **105.0%** | **(15.4)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess mortality | (7.1)% | (27.2)% | 20.1 |
| **Group life loss ratio excluding excess mortality** | **82.5%** | **77.8%** | **4.7** |

---

------

**SAFE HARBOR STATEMENT**

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of 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 future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; or in The Hartford's 2021 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission.

<u>Risks Relating to Economic, Political and Global Market Conditions:</u> challenges related to the Company's current operating environment, including global political, economic and market conditions, and the effect of financial market disruptions, economic downturns, changes in trade regulation including tariffs and other barriers or other potentially adverse macroeconomic developments on the demand for our products and returns in our investment portfolios; the effects of the continued COVID-19 pandemic, including exposure to COVID-19 business interruption property claims, the possibility of a resurgence of excess mortality losses in Group Benefits, and the potential for further legislative, regulatory or judicial actions pertaining to insurance underwriting and claims; market risks associated with our business, including changes in credit spreads, equity prices, interest rates, inflation rate, foreign currency exchange rates and market volatility; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy; the impacts of changing climate and weather patterns on our businesses, operations and investment portfolio including on claims, demand and pricing of our products, the availability and cost of reinsurance, our modeling data used to evaluate and manage risks of catastrophes and severe weather events, the value of our investment portfolios and credit risk with reinsurers and other counterparties;

<u>Insurance Industry and Product-Related Risks:</u> the possibility of unfavorable loss development, including with respect to long-tailed exposures; the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims; the possibility of another pandemic, civil unrest, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the intensity and frequency of thunderstorms, tornadoes, hail, wildfires, flooding, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; the possible occurrence of terrorist attacks and the Company's inability to contain its exposure as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; 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; actions by competitors that may be larger or have greater financial resources than we do; technological changes, including usage-based methods of determining premiums, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing; the Company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of

------

emerging claim and coverage issues; political instability, politically motivated violence or civil unrest, which may increase the frequency and severity of insured losses;

<u>Financial Strength, Credit and Counterparty Risks:</u> 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; capital requirements which are subject to many factors, including many that are outside the Company's control, such as National Association of Insurance Commissioners ("NAIC") risk based capital formulas, rating agency capital models, Funds at Lloyd's and Solvency Capital Requirement, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; losses due to nonperformance or defaults by others, including credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; state and international regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;

<u>Risks Relating to Estimates, Assumptions and Valuations:</u> risks associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance and catastrophe risk management; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the Company's fair value estimates for its investments and the evaluation of intent-to-sell impairments and allowance for credit losses on available-for-sale securities and mortgage loans; the potential for impairments of our goodwill;

<u>Strategic and Operational Risks:</u> the Company's ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber or other information security incident or other unanticipated event; the potential for difficulties arising from outsourcing and similar third-party relationships; the risks, challenges and uncertainties associated with capital management plans, expense reduction initiatives and other actions; risks associated with acquisitions and divestitures, including the challenges of integrating acquired companies or businesses, which may result in our inability to achieve the anticipated benefits and synergies and may result in unintended consequences; difficulty in attracting and retaining talented and qualified personnel, including key employees, such as executives, managers and employees with strong technological, analytical and other specialized skills; the Company's ability to protect its intellectual property and defend against claims of infringement;

<u>Regulatory and Legal Risks:</u> the cost and other potential effects of increased federal, state and international regulatory and legislative developments, including those that could adversely impact the demand for the Company's products, operating costs and required capital levels; unfavorable judicial or legislative developments; the impact of changes in federal, state or foreign tax laws; regulatory requirements that could delay, deter or prevent a takeover attempt that stockholders might consider in their best interests; and the impact of potential changes in accounting principles and related financial reporting requirements.

Any forward-looking statement made by the Company in this document speaks only as of the date of this release. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

## Exhibit 99.2

**INVESTOR FINANCIAL SUPPLEMENT**

**December 31, 2022**

![thehartfordlogoa.jpg](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 <u>[Discussion of Non-GAAP and Other Financial Measures](#i1cb845f7c002493e82f5c752c5cfba85_130)</u> section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

------

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | As of February 1, 2023 | | | |
| Address: |  |  |  |  |
| One Hartford Plaza |  | A.M. Best | Standard & Poor's | Moody's |
| Hartford, CT 06155 | **Insurance Financial Strength Ratings:** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Hartford Fire Insurance Company | A+ | A+ | A1 |
|  | &nbsp;&nbsp;&nbsp;Hartford Life and Accident Insurance Company | A+ | A+ | A1 |
|  | &nbsp;&nbsp;&nbsp;Navigators Insurance Company | A+ | 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 <br> Poor's | - 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 <br> Poor's | - 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 <br> Poor's | - 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 <br> Poor's |
| Internet address: | - Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's | - Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's | - Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's | - Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's |
| http://www.thehartford.com | NR - Not Rated | NR - Not Rated | NR - Not Rated | NR - Not Rated |
|  | **Other Ratings:** |  |  |  |
| Contact: | &nbsp;&nbsp;&nbsp;Senior debt | a- | BBB+ | Baa1 |
| Susan Spivak Bernstein | &nbsp;&nbsp;&nbsp;Junior subordinated debentures | bbb | BBB- | Baa2 |
| Senior Vice President | &nbsp;&nbsp;&nbsp;Preferred stock | bbb | BBB- | 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, <br> Standard and Poor's, and Moody's. | - The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, <br> Standard and Poor's, and Moody's. | - The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, <br> Standard and Poor's, and Moody's. | - The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, <br> Standard and Poor's, and Moody's. |
|  | TRANSFER AGENT | TRANSFER AGENT | TRANSFER AGENT | TRANSFER AGENT |
|  | Stockholder correspondence should be mailed to: | Overnight correspondence should be mailed to: | Overnight correspondence should be mailed to: | Overnight correspondence should be mailed to: |
|  | Computershare | Computershare | Computershare | Computershare |
|  | P.O. Box 505000 | 462 South 4th Street, Suite 1600 | 462 South 4th Street, Suite 1600 | 462 South 4th Street, Suite 1600 |
|  | Louisville, KY 40233 | Louisville, KY 40202 | Louisville, KY 40202 | Louisville, KY 40202 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

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.

------

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.** 

**INVESTOR FINANCIAL SUPPLEMENT**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>[CONSOLIDATED](#i1cb845f7c002493e82f5c752c5cfba85_10)</u>** | <u>[Consolidated Financial Results](#i1cb845f7c002493e82f5c752c5cfba85_10)</u> | <u>[1](#i1cb845f7c002493e82f5c752c5cfba85_10)</u> |
|  | <u>[Consolidated Statements of Operations](#i1cb845f7c002493e82f5c752c5cfba85_13)</u> | <u>[2](#i1cb845f7c002493e82f5c752c5cfba85_13)</u> |
|  | <u>[Operating Results by Segment](#i1cb845f7c002493e82f5c752c5cfba85_16)</u> | <u>[3](#i1cb845f7c002493e82f5c752c5cfba85_16)</u> |
|  | <u>[Consolidating Balance Sheets](#i1cb845f7c002493e82f5c752c5cfba85_19)</u> | <u>[4](#i1cb845f7c002493e82f5c752c5cfba85_19)</u> |
|  | <u>[Capital Structure](#i1cb845f7c002493e82f5c752c5cfba85_22)</u> | <u>[5](#i1cb845f7c002493e82f5c752c5cfba85_22)</u> |
|  | <u>[Statutory Capital to GAAP Stockholders' Equity Reconciliation](#i1cb845f7c002493e82f5c752c5cfba85_25)</u> | <u>[6](#i1cb845f7c002493e82f5c752c5cfba85_25)</u> |
|  | <u>[Accumulated Other Comprehensive Income (Loss)](#i1cb845f7c002493e82f5c752c5cfba85_28)</u> | <u>[7](#i1cb845f7c002493e82f5c752c5cfba85_28)</u> |
| **<u>[PROPERTY & CASUALTY](#i1cb845f7c002493e82f5c752c5cfba85_31)</u>** | <u>[Property & Casualty Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_37)</u> | <u>[8](#i1cb845f7c002493e82f5c752c5cfba85_37)</u> |
|  | <u>[Property & Casualty Income Statements (Continued)](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> | <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> |
|  | <u>[Property & Casualty Underwriting Ratios](#i1cb845f7c002493e82f5c752c5cfba85_43)</u> | <u>[10](#i1cb845f7c002493e82f5c752c5cfba85_43)</u> |
|  | <u>[Commercial Lines Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_46)</u> | <u>[11](#i1cb845f7c002493e82f5c752c5cfba85_46)</u> |
|  | <u>[Commercial Lines Income Statements (Continued)](#i1cb845f7c002493e82f5c752c5cfba85_49)</u> | <u>[12](#i1cb845f7c002493e82f5c752c5cfba85_49)</u> |
|  | <u>[Commercial Lines Underwriting Ratios](#i1cb845f7c002493e82f5c752c5cfba85_52)</u> | <u>[13](#i1cb845f7c002493e82f5c752c5cfba85_52)</u> |
|  | <u>[Commercial Lines Supplemental Data](#i1cb845f7c002493e82f5c752c5cfba85_55)</u> | <u>[14](#i1cb845f7c002493e82f5c752c5cfba85_55)</u> |
|  | <u>[Personal Lines Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_58)</u> | <u>[15](#i1cb845f7c002493e82f5c752c5cfba85_58)</u> |
|  | <u>[Personal Lines Income Statements (Continued)](#i1cb845f7c002493e82f5c752c5cfba85_61)</u> | <u>[16](#i1cb845f7c002493e82f5c752c5cfba85_61)</u> |
|  | <u>[Personal Lines Underwriting Ratios](#i1cb845f7c002493e82f5c752c5cfba85_64)</u> | <u>[17](#i1cb845f7c002493e82f5c752c5cfba85_64)</u> |
|  | <u>[Personal Lines Supplemental Data](#i1cb845f7c002493e82f5c752c5cfba85_67)</u> | <u>[18](#i1cb845f7c002493e82f5c752c5cfba85_67)</u> |
|  | <u>[Personal Lines Supplemental Data (Continued)](#i1cb845f7c002493e82f5c752c5cfba85_70)</u> | <u>[19](#i1cb845f7c002493e82f5c752c5cfba85_70)</u> |
|  | <u>[P&C Other Operations Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_73)</u> | <u>[20](#i1cb845f7c002493e82f5c752c5cfba85_73)</u> |
| **<u>[GROUP BENEFITS](#i1cb845f7c002493e82f5c752c5cfba85_76)</u>** | <u>[Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_79)</u> | <u>[21](#i1cb845f7c002493e82f5c752c5cfba85_79)</u> |
|  | <u>[Supplemental Data](#i1cb845f7c002493e82f5c752c5cfba85_82)</u> | <u>[22](#i1cb845f7c002493e82f5c752c5cfba85_82)</u> |
| **<u>[HARTFORD FUNDS](#i1cb845f7c002493e82f5c752c5cfba85_85)</u>** | <u>[Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_88)</u> | <u>[23](#i1cb845f7c002493e82f5c752c5cfba85_88)</u> |
|  | <u>[Asset Value Rollforward - Assets Under Management By Asset Class](#i1cb845f7c002493e82f5c752c5cfba85_91)</u> | <u>[24](#i1cb845f7c002493e82f5c752c5cfba85_91)</u> |
| **<u>[CORPORATE](#i1cb845f7c002493e82f5c752c5cfba85_94)</u>** | <u>[Income Statements](#i1cb845f7c002493e82f5c752c5cfba85_97)</u> | <u>[25](#i1cb845f7c002493e82f5c752c5cfba85_97)</u> |
| **<u>[INVESTMENTS](#i1cb845f7c002493e82f5c752c5cfba85_100)</u>** | <u>[Investment Income Before Tax - Consolidated](#i1cb845f7c002493e82f5c752c5cfba85_103)</u> | <u>[26](#i1cb845f7c002493e82f5c752c5cfba85_103)</u> |
|  | <u>[Investment Income Before Tax - Property & Casualty](#i1cb845f7c002493e82f5c752c5cfba85_106)</u> | <u>[27](#i1cb845f7c002493e82f5c752c5cfba85_106)</u> |
|  | <u>[Investment Income Before Tax - Group Benefits](#i1cb845f7c002493e82f5c752c5cfba85_109)</u> | <u>[28](#i1cb845f7c002493e82f5c752c5cfba85_109)</u> |
|  | <u>[Net Investment Income](#i1cb845f7c002493e82f5c752c5cfba85_112)</u> | <u>[29](#i1cb845f7c002493e82f5c752c5cfba85_112)</u> |
|  | <u>[Components of Net Realized Gains (Losses)](#i1cb845f7c002493e82f5c752c5cfba85_115)</u> | <u>[30](#i1cb845f7c002493e82f5c752c5cfba85_115)</u> |
|  | <u>[Composition of Invested Assets](#i1cb845f7c002493e82f5c752c5cfba85_118)</u> | <u>[31](#i1cb845f7c002493e82f5c752c5cfba85_118)</u> |
|  | <u>[Invested Asset Exposures](#i1cb845f7c002493e82f5c752c5cfba85_121)</u> | <u>[32](#i1cb845f7c002493e82f5c752c5cfba85_121)</u> |
| **<u>[APPENDIX](#i1cb845f7c002493e82f5c752c5cfba85_124)</u>** | <u>[Basis of Presentation and Definitions](#i1cb845f7c002493e82f5c752c5cfba85_127)</u> | <u>[33](#i1cb845f7c002493e82f5c752c5cfba85_127)</u> |
|  | <u>[Discussion of Non-GAAP and Other Financial Measures](#i1cb845f7c002493e82f5c752c5cfba85_130)</u> | <u>[34](#i1cb845f7c002493e82f5c752c5cfba85_130)</u> |

---

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**CONSOLIDATED FINANCIAL RESULTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **HIGHLIGHTS** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $589 | $339 | $442 | $445 | $729 | $482 | $905 | $249 | $1815 | $2365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income available to common stockholders [1] | $584 | $333 | $437 | $440 | $724 | $476 | $900 | $244 | $1794 | $2344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core earnings\* | $746 | $471 | $714 | $561 | $697 | $442 | $836 | $203 | $2492 | $2178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $6016 | $5580 | $5373 | $5393 | $5816 | $5686 | $5589 | $5299 | $22362 | $22390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $73022 | $71801 | $72402 | $75252 | $76578 | $76290 | $74732 | $74201 |  |  |
| **PER SHARE AND SHARES DATA** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Basic earnings per common share** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income available to common stockholders | $1.84 | $1.03 | $1.33 | $1.32 | $2.14 | $1.38 | $2.54 | $0.68 | $5.52 | $6.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core earnings\* | $2.35 | $1.46 | $2.18 | $1.69 | $2.06 | $1.28 | $2.36 | $0.57 | $7.67 | $6.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Diluted earnings per common share** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income available to common stockholders | $1.81 | $1.02 | $1.32 | $1.30 | $2.10 | $1.36 | $2.51 | $0.67 | $5.44 | $6.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core earnings\* | $2.31 | $1.44 | $2.15 | $1.66 | $2.02 | $1.26 | $2.33 | $0.56 | $7.56 | $6.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Weighted average common shares outstanding (basic)** | **317.5** | **322.1** | **327.4** | **332.3** | **338.8** | **345.6** | **353.7** | **358.2** | **324.8** | **349.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of stock compensation | 5.1 | 4.2 | 4.4 | 5.0 | 6.0 | 5.1 | 4.8 | 4.0 | 4.7 | 5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Weighted average common shares outstanding and dilutive potential common shares (diluted)** | **322.6** | **326.3** | **331.8** | **337.3** | **344.8** | **350.7** | **358.5** | **362.2** | **329.5** | **354.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Common shares outstanding** | 315.1 | 319.5 | 324.7 | 330.7 | 334.9 | 341.8 | 349.0 | 357.5 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Book value per common share** | $42.20 | $39.50 | $42.78 | $47.06 | $52.28 | $51.28 | $51.32 | $48.58 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per common share impact of accumulated other comprehensive income [2] | 12.30 | 13.82 | 10.05 | 5.14 | (0.51) | (0.90) | (1.64) | (0.74) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Book value per common share (excluding AOCI)\*** | $54.50 | $53.32 | $52.83 | $52.20 | $51.77 | $50.38 | $49.68 | $47.84 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Book value per diluted share** | $41.53 | $38.99 | $42.21 | $46.36 | $51.36 | $50.53 | $50.62 | $48.04 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per diluted share impact of AOCI | 12.10 | 13.64 | 9.91 | 5.06 | (0.50) | (0.89) | (1.61) | (0.73) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Book value per diluted share (excluding AOCI)\*** | $53.63 | $52.63 | $52.12 | $51.42 | $50.86 | $49.64 | $49.01 | $47.31 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Common shares outstanding and dilutive potential common shares** | 320.2 | 323.7 | 329.1 | 335.7 | 340.9 | 346.9 | 353.8 | 361.5 |  |  |
| **RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income available to common stockholders' ROE ("Net income ROE") | 11.6% | 12.8% | 13.1% | 15.4% | 13.1% | 12.3% | 12.3% | 10.5% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Core earnings ROE\* | 14.4% | 14.3% | 14.0% | 14.8% | 12.7% | 12.5% | 13.1% | 10.9% |  |  |

---

[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 <u>[33](#i1cb845f7c002493e82f5c752c5cfba85_127)</u>.

<u>1</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Earned premiums | $5019 | $4910 | $4810 | $4651 | $4631 | $4565 | $4460 | $4343 | $19390 | $17999 |
| Fee income | 318 | 328 | 341 | 362 | 381 | 377 | 375 | 355 | 1349 | 1488 |
| Net investment income | 640 | 487 | 541 | 509 | 573 | 650 | 581 | 509 | 2177 | 2313 |
| Net realized gains (losses) | 22 | (166) | (338) | (145) | 212 | 70 | 147 | 80 | (627) | 509 |
| Other revenues | 17 | 21 | 19 | 16 | 19 | 24 | 26 | 12 | 73 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **6016** | **5580** | **5373** | **5393** | **5816** | **5686** | **5589** | **5299** | **22362** | **22390** |
| Benefits, losses and loss adjustment expenses | 3540 | 3408 | 3076 | 3118 | 3173 | 3420 | 2786 | 3350 | 13142 | 12729 |
| Amortization of deferred acquisition costs ("DAC") | 475 | 467 | 453 | 440 | 428 | 419 | 417 | 416 | 1835 | 1680 |
| Insurance operating costs and other expenses | 1198 | 1203 | 1222 | 1207 | 1233 | 1200 | 1202 | 1144 | 4830 | 4779 |
| Interest expense | 50 | 50 | 51 | 62 | 62 | 58 | 57 | 57 | 213 | 234 |
| Amortization of other intangible assets | 18 | 18 | 17 | 18 | 18 | 18 | 17 | 18 | 71 | 71 |
| Restructuring and other costs [1] | 3 | 3 | 2 | 5 | 2 | (12) |  | 11 | 13 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total benefits, losses and expenses** | **5284** | **5149** | **4821** | **4850** | **4916** | **5103** | **4479** | **4996** | **20104** | **19494** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | **732** | **431** | **552** | **543** | **900** | **583** | **1110** | **303** | **2258** | **2896** |
| Income tax expense | 143 | 92 | 110 | 98 | 171 | 101 | 205 | 54 | 443 | 531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | **589** | **339** | **442** | **445** | **729** | **482** | **905** | **249** | **1815** | **2365** |
| Preferred stock dividends | 5 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 21 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income available to common stockholders** | **584** | **333** | **437** | **440** | **724** | **476** | **900** | **244** | **1794** | **2344** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income available to common stockholders to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (22) | 166 | 336 | 146 | (212) | (68) | (148) | (77) | 626 | (505) |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax [1] | 3 | 3 | 2 | 5 | 2 | (12) |  | 11 | 13 | 1 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  | 9 |  |  |  |  |  | 9 |  |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax [2] | 5 | 5 | 6 | 5 | 5 | 8 | 36 | 9 | 21 | 58 |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 229 |  |  |  | 173 | 28 | 39 | 6 | 229 | 246 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [3] | (53) | (36) | (76) | (35) | 5 | 10 | 9 | 10 | (200) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings** | $**746** | $**471** | $**714** | $**561** | $**697** | $**442** | $**836** | $**203** | $**2492** | $**2178** |

---

[1]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.

[2]Includes integration costs in connection with the 2019 acquisition of Navigators Group and 2017 acquisition of Aetna's group benefits business. The twelve months ended December 31, 2021 includes legal and consulting costs associated with the unsolicited proposals from Chubb Limited to acquire the Company.

[3]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.

<u>2</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**OPERATING RESULTS BY SEGMENT**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Net income (loss): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Lines | $566 | $286 | $389 | $383 | $702 | $357 | $569 | $129 | $1624 | $1757 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal Lines | 44 | (36) | 6 | 77 | 81 | 51 | 118 | 135 | 91 | 385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property & Casualty Other Operations ("P&C Other Operations") | (184) | 6 | (20) | 8 | (121) | 22 | 17 | (13) | (190) | (95) |
| **Property & Casualty ("P&C")** | **426** | **256** | **375** | **468** | **662** | **430** | **704** | **251** | **1525** | **2047** |
| **Group Benefits** | **140** | **86** | **104** | **(6)** | **42** | **28** | **170** | **9** | **324** | **249** |
| **Hartford Funds** | **45** | **41** | **34** | **42** | **62** | **56** | **52** | **47** | **162** | **217** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Sub-total** | **611** | **383** | **513** | **504** | **766** | **514** | **926** | **307** | **2011** | **2513** |
| **Corporate** | **(22)** | **(44)** | **(71)** | **(59)** | **(37)** | **(32)** | **(21)** | **(58)** | **(196)** | **(148)** |
| **Net income** | **589** | **339** | **442** | **445** | **729** | **482** | **905** | **249** | **1815** | **2365** |
| Preferred stock dividends | 5 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 21 | 21 |
| **Net income available to common stockholders** | $**584** | $**333** | $**437** | $**440** | $**724** | $**476** | $**900** | $**244** | $**1794** | $**2344** |
| Core earnings (loss): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Lines | $562 | $363 | $544 | $456 | $622 | $344 | $560 | $105 | $1925 | $1631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal Lines | 42 | (28) | 21 | 84 | 70 | 48 | 113 | 131 | 119 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;P&C Other Operations | (5) | 10 | (13) | 11 | (2) | 20 | 15 | (15) | 3 | 18 |
| **P&C** | **599** | **345** | **552** | **551** | **690** | **412** | **688** | **221** | **2047** | **2011** |
| **Group Benefits** | **141** | **117** | **161** | **8** | **(12)** | **19** | **149** | **(3)** | **427** | **153** |
| **Hartford Funds** | **39** | **47** | **44** | **50** | **60** | **58** | **51** | **45** | **180** | **214** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Sub-total** | **779** | **509** | **757** | **609** | **738** | **489** | **888** | **263** | **2654** | **2378** |
| **Corporate** | **(33)** | **(38)** | **(43)** | **(48)** | **(41)** | **(47)** | **(52)** | **(60)** | **(162)** | **(200)** |
| **Core earnings** | $**746** | $**471** | $**714** | $**561** | $**697** | $**442** | $**836** | $**203** | $**2492** | $**2178** |

---

<u>3</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

 **THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**CONSOLIDATING BALANCE SHEETS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **PROPERTY & CASUALTY** | **PROPERTY & CASUALTY** | **GROUP BENEFITS** | **GROUP BENEFITS** | **HARTFORD<br>FUNDS** | **HARTFORD<br>FUNDS** | **CORPORATE [1]** | **CORPORATE [1]** | **CONSOLIDATED** | **CONSOLIDATED** |
| | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Investments |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities, available-for-sale ("AFS"), at fair value | $28222 | $33019 | $7736 | $9451 | $— | $— | $273 | $377 | $36231 | $42847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities, at fair value using the fair value option | 275 | 124 | 58 | 36 |  |  |  |  | 333 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities, at fair value | 1194 | 1410 | 308 | 338 | 115 | 116 | 184 | 230 | 1801 | 2094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans, net | 4346 | 3908 | 1654 | 1475 |  |  |  |  | 6000 | 5383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnerships and other alternative investments | 3311 | 2689 | 866 | 664 |  |  |  |  | 4177 | 3353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 137 | 165 | 7 | 9 | 15 | 29 |  | 12 | 159 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 2475 | 1332 | 325 | 352 | 202 | 251 | 857 | 1762 | 3859 | 3697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 39960 | 42647 | 10954 | 12325 | 332 | 396 | 1314 | 2381 | 52560 | 57749 |
| Cash | 193 | 176 | 27 | 15 | 6 | 3 | 3 | 11 | 229 | 205 |
| Restricted cash | 104 | 121 | 11 | 11 |  |  |  |  | 115 | 132 |
| Premiums receivable and agents' balances, net | 4369 | 3924 | 580 | 521 |  |  |  |  | 4949 | 4445 |
| Reinsurance recoverables, net [2] | 6455 | 5997 | 250 | 250 |  |  | 261 | 276 | 6966 | 6523 |
| Deferred policy acquisition costs ("DAC") | 966 | 843 | 32 | 31 | 4 | 7 |  |  | 1002 | 881 |
| Deferred income taxes | 902 | (22) | 71 | (228) | 8 |  | 468 | 520 | 1449 | 270 |
| Goodwill | 778 | 778 | 723 | 723 | 181 | 181 | 229 | 229 | 1911 | 1911 |
| Property and equipment, net | 808 | 883 | 57 | 71 | 9 | 11 | 53 | 62 | 927 | 1027 |
| Other intangible assets | 370 | 410 | 398 | 438 | 10 | 10 |  |  | 778 | 858 |
| Other assets | 1356 | 1856 | 188 | 285 | 85 | 112 | 507 | 324 | 2136 | 2577 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**56261** | $**57613** | $**13291** | $**14442** | $**635** | $**720** | $**2835** | $**3803** | $**73022** | $**76578** |
| Unpaid losses and loss adjustment expenses | $33083 | $31449 | $8160 | $8210 | $— | $— | $— | $— | $41243 | $39659 |
| Reserves for future policy benefits [2] |  |  | 380 | 399 |  |  | 181 | 197 | 561 | 596 |
| Other policyholder funds and benefits payable [2] |  |  | 419 | 426 |  |  | 239 | 261 | 658 | 687 |
| Unearned premiums | 7779 | 7154 | 36 | 40 |  |  |  |  | 7815 | 7194 |
| Debt |  |  |  |  |  |  | 4357 | 4944 | 4357 | 4944 |
| Other liabilities | 2434 | 3047 | 254 | 355 | 143 | 229 | 1926 | 2024 | 4757 | 5655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **43296** | **41650** | **9249** | **9430** | **143** | **229** | **6703** | **7426** | **59391** | **58735** |
| Common stockholders' equity, excluding AOCI\* | 14977 | 14845 | 4613 | 4530 | 492 | 491 | (2909) | (2529) | 17173 | 17337 |
| Preferred stock |  |  |  |  |  |  | 334 | 334 | 334 | 334 |
| AOCI, net of tax | (2012) | 1118 | (571) | 482 |  |  | (1293) | (1428) | (3876) | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **12965** | **15963** | **4042** | **5012** | **492** | **491** | **(3868)** | **(3623)** | **13631** | **17843** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**56261** | $**57613** | $**13291** | $**14442** | $**635** | $**720** | $**2835** | $**3803** | $**73022** | $**76578** |

---

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.0 billion and $1.9 billion as of December 31, 2022 and 2021, 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.

<u>4</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**CAPITAL STRUCTURE**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** |
| **DEBT** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $— | $— | $— | $591 | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior notes | 3858 | 3857 | 3856 | 3855 | 3854 | $3853 | $3264 | $3263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures | 499 | 499 | 499 | 499 | 1090 | 1090 | 1090 | 1090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total debt** | $**4357** | $**4356** | $**4355** | $**4945** | $**4944** | $**4943** | $**4354** | $**4353** |
| **STOCKHOLDERS' EQUITY** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | $**13631** | $**12955** | $**14226** | $**15897** | $**17843** | $**17862** | $**18244** | $**17702** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Preferred stock | 334 | 334 | 334 | 334 | 334 | 334 | 334 | 334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: AOCI | (3876) | (4414) | (3262) | (1699) | 172 | 307 | 570 | 264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Common stockholders' equity, excluding AOCI** | $**17173** | $**17035** | $**17154** | $**17262** | $**17337** | $**17221** | $**17340** | $**17104** |
| **CAPITALIZATION** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total capitalization, including AOCI, net of tax** | $**17988** | $**17311** | $**18581** | $**20842** | $**22787** | $**22805** | $**22598** | $**22055** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total capitalization, excluding AOCI, net of tax\*** | $**21864** | $**21725** | $**21843** | $**22541** | $**22615** | $**22498** | $**22028** | $**21791** |
| **DEBT TO CAPITALIZATION RATIOS** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total debt to capitalization, including AOCI** | **24.2%** | **25.2%** | **23.4%** | **23.7%** | **21.7%** | **21.7%** | **19.3%** | **19.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total debt to capitalization, excluding AOCI\*** | **19.9%** | **20.1%** | **19.9%** | **21.9%** | **21.9%** | **22.0%** | **19.8%** | **20.0%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total debt and preferred stock to capitalization, including AOCI** | **26.1%** | **27.1%** | **25.2%** | **25.3%** | **23.2%** | **23.1%** | **20.7%** | **21.3%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total debt and preferred stock to capitalization, excluding AOCI\*** | **21.5%** | **21.6%** | **21.5%** | **23.4%** | **23.3%** | **23.5%** | **21.3%** | **21.5%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total rating agency adjusted debt to capitalization [1] [2]** | **25.7%** | **27.4%** | **25.7%** | **25.1%** | **23.1%** | **24.3%** | **22.0%** | **22.6%** |
| **FIXED CHARGE COVERAGE RATIOS** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total earnings to total fixed charges [3]** | **10.1:1** | **8.9:1** | **8.9:1** | **8.0:1** | **10.9:1** | **9.8:1** | **10.7:1** | **4.8:1** |

---

[1]The leverage calculation reflects adjustments related to the Company's defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.3 billion and $0.5 billion as of December 31, 2022 and 2021, 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.

<u>5</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**STATUTORY CAPITAL TO GAAP STOCKHOLDERS' EQUITY RECONCILIATION**

**DECEMBER 31, 2022** 

---

| | | |
|:---|:---|:---|
| | **P&C** | **GROUP BENEFITS** |
| **U.S. statutory net income [1][2]** | $**1514** | $**378** |
| **U.S. statutory capital [2][3]** | $**12111** | $**2571** |
| **U.S. GAAP adjustments [2]:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DAC | 929 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-admitted deferred tax assets [4] | 210 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes [5] | (10) | (236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 137 | 723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets | 49 | 398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-admitted assets other than deferred taxes | 845 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset valuation and interest maintenance reserve |  | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit reserves | (98) | 345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on investments | (2490) | (973) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred gain on retroactive reinsurance agreements [6] | (760) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 1040 | 639 |
| **U.S. GAAP stockholders' equity of U.S. insurance entities [2]** | **11963** | **4042** |
| **U.S. GAAP stockholders' equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group** | **1002** | **—** |
| **Total U.S. GAAP stockholders' equity** | $**12965** | $**4042** |

---

[1]Statutory net income is for the year ended December 31, 2022.

[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]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").

[5]Represents the tax timing differences between U.S. GAAP and U.S. STAT.

[6]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.

<u>6</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **AS OF** | **AS OF** | **AS OF** | **AS OF** | **AS OF** | **AS OF** | **AS OF** | **AS OF** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** |
| Net unrealized gain (loss) on fixed maturities, AFS | $(2594) | $(3038) | $(1858) | $(266) | $1616 | $1930 | $2204 | $1909 |
| Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL") | (7) | (7) | (2) | (2) | (2) | (2) | (2) | (2) |
| Net gains on cash flow hedging instruments | 40 | 69 | 30 | 5 | 6 | 13 | 12 | 17 |
| Total net unrealized gain (loss) | (2561) | (2976) | (1830) | (263) | 1620 | 1941 | $2214 | $1924 |
| Foreign currency translation adjustments | 31 | 14 | 33 | 41 | 41 | 42 | 46 | 44 |
| Pension and other postretirement plan adjustments | (1346) | (1452) | (1465) | (1477) | (1489) | (1676) | (1690) | (1704) |
| &nbsp;&nbsp;&nbsp;**Total AOCI** | $**(3876)** | $**(4414)** | $**(3262)** | $**(1699)** | $**172** | $**307** | $**570** | $**264** |

---

<u>7</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PROPERTY & CASUALTY** 

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Written premiums | $3428 | $3583 | $3592 | $3516 | $3180 | $3297 | $3254 | $3218 | $14119 | $12949 |
| Change in unearned premium reserve | (93) | 131 | 251 | 310 | (71) | 104 | 172 | 249 | 599 | 454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earned premiums | 3521 | 3452 | 3341 | 3206 | 3251 | 3193 | 3082 | 2969 | 13520 | 12495 |
| Fee income | 17 | 18 | 17 | 17 | 17 | 16 | 16 | 17 | 69 | 66 |
| Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 2081 | 2070 | 1944 | 1833 | 1921 | 1830 | 1786 | 1710 | 7928 | 7247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes [1] | 135 | 293 | 123 | 98 | 22 | 300 | 128 | 214 | 649 | 664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [2] | 183 | (53) | (58) | (36) | 29 | 90 | (149) | 229 | 36 | 199 |
| Total losses and loss adjustment expenses | 2399 | 2310 | 2009 | 1895 | 1972 | 2220 | 1765 | 2153 | 8613 | 8110 |
| Amortization of DAC | 466 | 456 | 441 | 428 | 417 | 405 | 404 | 402 | 1791 | 1628 |
| Underwriting expenses [3] | 598 | 610 | 606 | 577 | 608 | 588 | 561 | 544 | 2391 | 2301 |
| Amortization of other intangible assets | 8 | 8 | 7 | 8 | 8 | 8 | 7 | 8 | 31 | 31 |
| Dividends to policyholders | 8 | 7 | 7 | 7 | 7 | 5 | 6 | 6 | 29 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)\*** | **59** | **79** | **288** | **308** | **256** | **(17)** | **355** | **(127)** | **734** | **467** |
| Net investment income | 469 | 360 | 407 | 382 | 427 | 487 | 442 | 378 | 1618 | 1734 |
| Net realized gains (losses) | 3 | (110) | (225) | (104) | 136 | 57 | 56 | 53 | (436) | 302 |
| Net servicing and other income (expense) | 2 | 3 | 2 | (2) | 3 | 2 | 6 | 2 | 5 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | **533** | **332** | **472** | **584** | **822** | **529** | **859** | **306** | **1921** | **2516** |
| Income tax expense | 107 | 76 | 97 | 116 | 160 | 99 | 155 | 55 | 396 | 469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | **426** | **256** | **375** | **468** | **662** | **430** | **704** | **251** | **1525** | **2047** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (3) | 109 | 222 | 106 | (139) | (56) | (56) | (51) | 434 | (302) |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 3 | 3 | 4 | 3 | 4 | 5 | 4 | 7 | 13 | 20 |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax [2] | 229 |  |  |  | 173 | 28 | 39 | 6 | 229 | 246 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [4] | (56) | (23) | (49) | (26) | (10) | 5 | (3) | 8 | (154) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings** | $**599** | $**345** | $**552** | $**551** | $**690** | $**412** | $**688** | $**221** | $**2047** | $**2011** |
| **ROE** |  |  |  |  |  |  |  |  |  |  |
| **Net income available to common stockholders [5]** | **12.7%** | **15.2%** | **15.7%** | **18.4%** | **15.3%** | **14.0%** | **13.8%** | **11.5%** |  |  |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income available to common stockholders to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 4.0% | 2.8% | 1.2% | (1.3%) | (2.4%) | (1.8%) | (1.2%) | (1.4%) |  |  |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% | 0.3% |  |  |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax [2] | 2.1% | 1.6% | 1.8% | 2.1% | 2.0% | 2.4% | 2.2% | 2.6% |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [4] | (1.4%) | (1.0%) | (0.7%) | (0.3%) | —% | (0.3%) | (0.5%) | (0.4%) |  |  |
| &nbsp;&nbsp;&nbsp;Impact of AOCI, excluded from core earnings ROE | (0.9%) | (1.0%) | (0.2%) | 0.6% | 1.7% | 1.8% | 2.0% | 0.7% |  |  |
| **Core earnings [5]** | **16.6%** | **17.7%** | **17.9%** | **19.6%** | **16.8%** | **16.3%** | **16.5%** | **13.3%** |  |  |

---

[1]The three months ended December 31, 2022 included $167 of net losses from Winter Storm Elliott, including $151 in Commercial Lines and $16 in Personal Lines. The $167 of losses from Winter Storm Elliott is net of a $35 reinsurance recoverable under the Company's per occurrence catastrophe treaty that covers 70% of up to $250 of losses in excess of $100 for one catastrophe event other than from earthquakes and named hurricanes and tropical storms, subject to a $50 annual aggregate deductible. 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]The three months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $20 primarily due to lower than previously estimated receivables from loss sensitive business within middle and large commercial. The twelve months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $42, primarily related to the lessening impacts of COVID-19.

[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.

[5]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.

<u>8</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PROPERTY & CASUALTY** 

**INCOME STATEMENTS (CONTINUED)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT** | | | | | | | | | | |
| Workers' compensation | $(61) | $(58) | $(40) | $(45) | $(77) | $(30) | $(43) | $(40) | $(204) | $(190) |
| Workers' compensation discount accretion | 9 | 9 | 9 | 9 | 9 | 8 | 9 | 9 | 36 | 35 |
| General liability [1] | 23 |  | 21 | 12 | 3 | 144 |  | 307 | 56 | 454 |
| Marine |  | 5 | (3) |  | 1 | (1) | (5) | 6 | 2 | 1 |
| Package business | (4) | (11) | (13) | (11) | (25) | (20) | (19) | (27) | (39) | (91) |
| Commercial property | 6 | 4 | (6) | (15) | (2) | (4) | (7) | (13) | (11) | (26) |
| Professional liability | (2) |  | (9) |  | 5 |  | (6) | (1) | (11) | (2) |
| Bond | (28) |  | (4) |  |  | (12) | (14) |  | (32) | (26) |
| Assumed reinsurance | 7 |  |  | 12 | (6) |  | (2) | 2 | 19 | (6) |
| Automobile liability - Commercial Lines | 15 | 11 | 12 |  |  | 9 |  |  | 38 | 9 |
| Automobile liability - Personal Lines |  | (9) |  | (5) | (17) | (30) | (20) | (23) | (14) | (90) |
| Homeowners | 1 | (2) |  |  | 1 | 1 | 4 | (3) | (1) | 3 |
| Net asbestos and environmental reserves [2] |  |  |  |  |  |  |  |  |  |  |
| Catastrophes | (30) | (2) | (27) | (3) | (56) |  | (82) | (16) | (62) | (154) |
| Uncollectible reinsurance |  | (3) | 6 |  | 4 |  | (1) | (9) | 3 | (6) |
| Other reserve re-estimates [3] | 18 | 3 | (4) | 10 | 16 | (3) | (2) | 31 | 27 | 42 |
| **Prior accident year development before change in deferred gain** | **(46)** | **(53)** | **(58)** | **(36)** | **(144)** | **62** | **(188)** | **223** | **(193)** | **(47)** |
| Change in deferred gain on retroactive reinsurance included in other liabilities [2] [4] | 229 |  |  |  | 173 | 28 | 39 | 6 | 229 | 246 |
| **Total prior accident year development** | $**183** | $**(53)** | $**(58)** | $**(36)** | $**29** | $**90** | $**(149)** | $**229** | $**36** | $**199** |

---

[1]The year ended December 31, 2021 included an increase in reserves related to an agreement in principle with the Boy Scouts of America under which The Hartford will pay $787, before tax, to settle sexual molestation and sexual abuse claims.

[2]A&E reserves were reviewed in fourth quarter 2022 and 2021, resulting in an increase in reserves before ADC reinsurance of $229 and $155, respectively, which were ceded to the A&E ADC resulting in a deferred gain on retroactive reinsurance. For 2022 and 2021, this included an increase in asbestos reserves of $162 and $106, respectively, and an increase in environmental reserves of $67 and $49, respectively. As of December 31, 2022 the Company has incurred $1,244 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty with $256 of available limit remaining. The Company has recorded a cumulative deferred gain of $594 as of December 31, 2022 within other liabilities, representing the amount of losses ceded to the ADC in excess of ceded premium paid. See [4] below.

[3]Other reserve re-estimates for the three months ended December 31, 2022 primarily includes a $22 increase in unallocated loss adjustment expense ("ULAE") reserves within P&C Other Operations driven by the increase in gross asbestos and environmental reserves discussed in [2] above.

[4]The three and twelve months ended December 31, 2021 also included an increase in deferred gain on retroactive reinsurance of $18 and $91, respectively, relating to ceding losses to the Navigators ADC, which reinsures adverse development on Navigators' 2018 and prior accident year reserves. As of December 31, 2022, the Company has cumulatively ceded all of the $300 available limit of losses to the Navigators ADC, of which $209 has been recognized as a deferred gain within other liabilities. Any net adverse loss development above the $300 limit is reflected in the Company's core earnings.

<u>9</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PROPERTY & CASUALTY**

**UNDERWRITING RATIOS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **UNDERWRITING GAIN (LOSS)** | $**59** | $**79** | $**288** | $**308** | $**256** | $**(17)** | $**355** | $**(127)** | $**734** | $**467** |
| **UNDERWRITING RATIOS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 59.1 | 60.0 | 58.2 | 57.2 | 59.1 | 57.3 | 57.9 | 57.6 | 58.6 | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | 3.8 | 8.5 | 3.7 | 3.1 | 0.7 | 9.4 | 4.2 | 7.2 | 4.8 | 5.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [1] | 5.2 | (1.5) | (1.7) | (1.1) | 0.9 | 2.8 | (4.8) | 7.7 | 0.3 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 68.1 | 66.9 | 60.1 | 59.1 | 60.7 | 69.5 | 57.3 | 72.5 | 63.7 | 64.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses [2] [3] | 30.0 | 30.6 | 31.0 | 31.1 | 31.3 | 30.8 | 31.0 | 31.6 | 30.7 | 31.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder dividends | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 |
| **Combined ratio** | **98.3** | **97.7** | **91.4** | **90.4** | **92.1** | **100.5** | **88.5** | **104.3** | **94.6** | **96.3** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes and prior accident year development | (9.0) | (7.0) | (2.0) | (2.0) | (1.6) | (12.2) | 0.6 | (14.9) | (5.1) | (6.9) |
| **Underlying combined ratio \*** | **89.3** | **90.8** | **89.4** | **88.5** | **90.6** | **88.3** | **89.2** | **89.4** | **89.5** | **89.4** |

---

[1]See [2] and [4] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for discussion related to the deferred gain on retroactive reinsurance.

[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.

[3]The three and twelve months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $20 and $42 respectively, representing 0.6 points and 0.3 points of the expense ratio, respectively.

<u>10</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMMERCIAL LINES**

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Written premiums | $2733 | $2780 | $2836 | $2809 | $2512 | $2532 | $2494 | $2503 | $11158 | $10041 |
| Change in unearned premium reserve | (34) | 77 | 221 | 323 | (1) | 83 | 150 | 268 | 587 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earned premiums | 2767 | 2703 | 2615 | 2486 | 2513 | 2449 | 2344 | 2235 | 10571 | 9541 |
| Fee income | 10 | 10 | 10 | 9 | 9 | 8 | 8 | 9 | 39 | 34 |
| Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 1542 | 1555 | 1467 | 1395 | 1421 | 1351 | 1339 | 1296 | 5959 | 5407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes [1] | 114 | 179 | 67 | 81 | 6 | 222 | 93 | 175 | 441 | 496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [2] | (68) | (42) | (88) | (33) | (114) | 122 | (105) | 238 | (231) | 141 |
| Total losses and loss adjustment expenses | 1588 | 1692 | 1446 | 1443 | 1313 | 1695 | 1327 | 1709 | 6169 | 6044 |
| Amortization of DAC | 408 | 399 | 385 | 371 | 360 | 348 | 346 | 344 | 1563 | 1398 |
| Underwriting expenses | 461 | 455 | 447 | 425 | 447 | 432 | 405 | 394 | 1788 | 1678 |
| Amortization of other intangible assets | 8 | 7 | 7 | 7 | 8 | 7 | 7 | 7 | 29 | 29 |
| Dividends to policyholders | 8 | 7 | 7 | 7 | 7 | 5 | 6 | 6 | 29 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **304** | **153** | **333** | **242** | **387** | **(30)** | **261** | **(216)** | **1032** | **402** |
| Net investment income | 411 | 315 | 356 | 333 | 372 | 421 | 382 | 327 | 1415 | 1502 |
| Net realized gains (losses) | (1) | (95) | (198) | (91) | 118 | 51 | 47 | 44 | (385) | 260 |
| Other income (expense) [3] | (2) | (3) | (1) | (6) | (1) | (3) | 1 | (2) | (12) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | **712** | **370** | **490** | **478** | **876** | **439** | **691** | **153** | **2050** | **2159** |
| Income tax expense | 146 | 84 | 101 | 95 | 174 | 82 | 122 | 24 | 426 | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | **566** | **286** | **389** | **383** | **702** | **357** | **569** | **129** | **1624** | **1757** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 1 | 95 | 194 | 93 | (120) | (50) | (47) | (43) | 383 | (260) |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax [3] | 3 | 3 | 4 | 3 | 4 | 5 | 4 | 7 | 13 | 20 |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax |  |  |  |  | 18 | 28 | 39 | 6 |  | 91 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [4] | (8) | (21) | (43) | (23) | 18 | 4 | (5) | 6 | (95) | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings** | $**562** | $**363** | $**544** | $**456** | $**622** | $**344** | $**560** | $**105** | $**1925** | $**1631** |

---

[1]Refer to [1] on page <u>[8](#i1cb845f7c002493e82f5c752c5cfba85_37)</u> for information about catastrophe losses related to Winter Storm Elliott in the three months ended December 31, 2022 and Hurricane Ian for the three months ended September 30, 2022.

[2]Refer to [4] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for discussion related to the deferred gain on retroactive reinsurance.

[3]Includes Navigators Group integration costs.

[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.

<u>11</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMMERCIAL LINES**

**INCOME STATEMENTS (CONTINUED)**

Prior accident year development included the following unfavorable (favorable) reserve development:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Workers' compensation | $(61) | $(58) | $(40) | $(45) | $(77) | $(30) | $(43) | $(40) | $(204) | $(190) |
| Workers' compensation discount accretion | 9 | 9 | 9 | 9 | 9 | 8 | 9 | 9 | 36 | 35 |
| General liability [1] | 23 |  | (10) | 12 | 3 | 144 |  | 307 | 25 | 454 |
| Marine |  | 5 | (3) |  | 1 | (1) | (5) | 6 | 2 | 1 |
| Package business | (4) | (11) | (13) | (11) | (25) | (20) | (19) | (27) | (39) | (91) |
| Commercial property | 6 | 4 | (6) | (15) | (2) | (4) | (7) | (13) | (11) | (26) |
| Professional liability | (2) |  | (9) |  | 5 |  | (6) | (1) | (11) | (2) |
| Bond | (28) |  | (4) |  |  | (12) | (14) |  | (32) | (26) |
| Assumed Reinsurance | 7 |  |  | 12 | (6) |  | (2) | 2 | 19 | (6) |
| Auto liability | 15 | 11 | 12 |  |  | 9 |  |  | 38 | 9 |
| Catastrophes | (29) | (2) | (26) | (3) | (40) |  | (53) | (4) | (60) | (97) |
| Uncollectible reinsurance |  | (1) |  |  |  |  |  | (5) | (1) | (5) |
| Other reserve re-estimates | (4) | 1 | 2 | 8 |  |  | (4) | (2) | 7 | (6) |
| **Prior accident year development before change in deferred gain** | **(68)** | **(42)** | **(88)** | **(33)** | **(132)** | **94** | **(144)** | **232** | **(231)** | **50** |
| Change in deferred gain on retroactive reinsurance included in other liabilities [2] |  |  |  |  | 18 | 28 | 39 | 6 |  | 91 |
| **Total prior accident year development** | $**(68)** | $**(42)** | $**(88)** | $**(33)** | $**(114)** | $**122** | $**(105)** | $**238** | $**(231)** | $**141** |

---

[1]See [1] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for discussion related to general liability prior year development.

[2]See [4] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.

<u>12</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMMERCIAL LINES**

**UNDERWRITING RATIOS** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **UNDERWRITING GAIN (LOSS)** | $**304** | $**153** | $**333** | $**242** | $**387** | $**(30)** | $**261** | $**(216)** | $**1032** | $**402** |
| **UNDERWRITING RATIOS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 55.7 | 57.5 | 56.1 | 56.1 | 56.5 | 55.2 | 57.1 | 58.0 | 56.4 | 56.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | 4.1 | 6.6 | 2.6 | 3.3 | 0.2 | 9.1 | 4.0 | 7.8 | 4.2 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [1] | (2.5) | (1.6) | (3.4) | (1.3) | (4.5) | 5.0 | (4.5) | 10.6 | (2.2) | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 57.4 | 62.6 | 55.3 | 58.0 | 52.2 | 69.2 | 56.6 | 76.5 | 58.4 | 63.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses [2] [3] | 31.3 | 31.5 | 31.7 | 31.9 | 32.1 | 31.8 | 32.0 | 32.9 | 31.6 | 32.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder dividends | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 |
| **Combined ratio [4]** | **89.0** | **94.3** | **87.3** | **90.3** | **84.6** | **101.2** | **88.9** | **109.7** | **90.2** | **95.8** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes and prior accident year development | (1.6) | (5.0) | 0.8 | (2.0) | 4.3 | (14.1) | 0.5 | (18.4) | (2.0) | (6.7) |
| **Underlying combined ratio** | **87.4** | **89.3** | **88.1** | **88.3** | **88.9** | **87.2** | **89.4** | **91.2** | **88.3** | **89.1** |
| **COMBINED RATIOS BY LINE OF BUSINESS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**SMALL COMMERCIAL** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Combined ratio** | **89.4** | **89.3** | **85.2** | **82.9** | **79.0** | **84.5** | **83.6** | **95.4** | **86.8** | **85.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustments to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (6.3) | (5.3) | (3.0) | (1.9) | (0.2) | (5.0) | (3.8) | (12.1) | (4.2) | (5.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 4.5 | 4.4 | 4.7 | 4.9 | 9.2 | 4.4 | 7.2 | 5.0 | 4.6 | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying combined ratio** | **87.5** | **88.5** | **86.9** | **85.9** | **88.0** | **83.9** | **87.0** | **88.3** | **87.2** | **86.7** |
| &nbsp;&nbsp;&nbsp;**MIDDLE & LARGE COMMERCIAL** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Combined ratio** | **91.8** | **100.7** | **95.6** | **94.6** | **83.5** | **108.0** | **92.9** | **98.9** | **95.7** | **95.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustments to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (3.1) | (6.6) | (2.0) | (2.3) | 2.1 | (16.3) | (5.8) | (7.0) | (3.5) | (6.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 1.5 | (0.4) | (0.8) | (0.9) | 4.4 | (0.4) | 4.4 | 3.3 | (0.1) | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying combined ratio** | **90.2** | **93.7** | **92.9** | **91.5** | **90.0** | **91.4** | **91.5** | **95.3** | **92.1** | **92.0** |
| &nbsp;&nbsp;&nbsp;**GLOBAL SPECIALTY** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Combined ratio [4]** | **84.1** | **94.2** | **85.0** | **96.9** | **94.8** | **97.1** | **91.9** | **92.4** | **89.9** | **94.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustments to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (1.9) | (9.0) | (2.8) | (6.9) | (3.5) | (6.2) | (1.8) | (2.2) | (5.1) | (3.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [1] | 0.7 | (0.6) | 0.9 | (1.8) | (2.5) | (4.0) | 0.1 | (0.3) | (0.2) | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying combined ratio** | **83.0** | **84.5** | **83.1** | **88.2** | **88.8** | **86.9** | **90.3** | **89.9** | **84.6** | **88.9** |

---

[1]See [4] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for discussion related to the change in deferred gain on retroactive reinsurance for the three and twelve months ended December 31, 2021.

[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.

[3]The three and twelve months ended December 31, 2021 included a before tax decrease in the ACL on premiums receivable including the lessening impacts of COVID-19 of $20 and $39, respectively, representing 0.8 points and 0.4 points, respectively, of the expense ratio.

[4]The three and twelve months ended December 31, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC representing 0.7 and 1.0 points, respectively, of the Commercial Lines combined ratio and 2.9 points and 3.8 points, respectively, of the global specialty combined ratio.

<u>13</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMMERCIAL LINES**

**SUPPLEMENTAL DATA**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **WRITTEN PREMIUMS** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Small Commercial** | $**1130** | $**1131** | $**1145** | $**1180** | $**1025** | $**1012** | $**977** | $**1053** | $**4586** | $**4067** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Middle & Large Commercial** | **911** | **979** | **907** | **853** | **847** | **884** | **817** | **775** | **3650** | **3323** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Middle Market | 773 | 856 | 785 | 724 | 722 | 765 | 720 | 662 | 3138 | 2869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National Accounts and Other | 138 | 123 | 122 | 129 | 125 | 119 | 97 | 113 | 512 | 454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Global Specialty [1]** | **681** | **659** | **772** | **764** | **629** | **625** | **689** | **665** | **2876** | **2608** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | 466 | 466 | 516 | 466 | 457 | 452 | 466 | 421 | 1914 | 1796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 110 | 92 | 103 | 91 | 109 | 81 | 113 | 110 | 396 | 413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Re | 105 | 101 | 153 | 207 | 63 | 92 | 110 | 134 | 566 | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other** | **11** | **11** | **12** | **12** | **11** | **11** | **11** | **10** | **46** | **43** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**2733** | $**2780** | $**2836** | $**2809** | $**2512** | $**2532** | $**2494** | $**2503** | $**11158** | $**10041** |
| **EARNED PREMIUMS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Small Commercial** | $**1147** | $**1117** | $**1081** | $**1034** | $**1043** | $**1015** | $**956** | $**916** | $**4379** | $**3930** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Middle & Large Commercial** | **915** | **896** | **855** | **828** | **840** | **820** | **788** | **752** | **3494** | **3200** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Middle Market | 788 | 774 | 733 | 717 | 725 | 704 | 682 | 653 | 3012 | 2764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National Accounts and Other | 127 | 122 | 122 | 111 | 115 | 116 | 106 | 99 | 482 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Global Specialty [1]** | **695** | **678** | **666** | **613** | **619** | **604** | **589** | **556** | **2652** | **2368** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | 472 | 460 | 450 | 426 | 434 | 421 | 406 | 386 | 1808 | 1647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 93 | 99 | 98 | 87 | 97 | 95 | 99 | 102 | 377 | 393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Re | 130 | 119 | 118 | 100 | 88 | 88 | **84** | **68** | 467 | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other** | **10** | **12** | **13** | **11** | **11** | **10** | **11** | **11** | **46** | **43** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**2767** | $**2703** | $**2615** | $**2486** | $**2513** | $**2449** | $**2344** | $**2235** | $**10571** | $**9541** |
| **COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Small Commercial** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net New Business Premium | $191 | $190 | $201 | $186 | $162 | $165 | $170 | $176 | $768 | $673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal Written Price Increases | 4.5% | 4.0% | 3.4% | 3.2% | 3.6% | 3.4% | 3.2% | 2.4% | 3.8% | 3.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy Count Retention [2] | 86% | 86% | 85% | 86% | 85% | 84% | 84% | 84% | 86% | 84% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policies in Force (in thousands) | 1421 | 1411 | 1395 | 1378 | 1366 | 1352 | 1329 | 1304 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Middle Market [3]** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net New Business Premium | $131 | $150 | $130 | $120 | $124 | $139 | $147 | $122 | $531 | $532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal Written Price Increases | 6.7% | 6.4% | 5.2% | 5.1% | 5.8% | 5.7% | 6.2% | 6.1% | 5.9% | 5.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy Count Retention [2] | 84% | 83% | 84% | 84% | 83% | 84% | 82% | 80% | 84% | 82% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Global Specialty** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross New Business Premium [4] | $192 | $201 | $226 | $206 | $225 | $234 | $237 | $216 | $825 | $912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal Written Price Increases [5] | 3.2% | 4.3% | 6.7% | 9.7% | 10.1% | 11.9% | 14.8% | 18.5% | 5.9% | 13.6% |

---

[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure"). International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.

[2]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.

[3]Except for net new business premium, metrics for Middle Market exclude loss sensitive and programs businesses.

[4]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.

[5]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.

<u>14</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PERSONAL LINES**

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Written premiums | $695 | $803 | $756 | $707 | $668 | $765 | $760 | $715 | $2961 | $2908 |
| Change in unearned premium reserve | (59) | 54 | 30 | (13) | (70) | 21 | 22 | (19) | 12 | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earned premiums | 754 | 749 | 726 | 720 | 738 | 744 | 738 | 734 | 2949 | 2954 |
| Fee income | 7 | 8 | 7 | 8 | 8 | 8 | 8 | 8 | 30 | 32 |
| Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 539 | 515 | 477 | 438 | 500 | 479 | 447 | 414 | 1969 | 1840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes [1] | 21 | 114 | 56 | 17 | 16 | 78 | 35 | 39 | 208 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 1 | (11) |  | (3) | (31) | (27) | (44) | (42) | (13) | (144) |
| Total losses and loss adjustment expenses | 561 | 618 | 533 | 452 | 485 | 530 | 438 | 411 | 2164 | 1864 |
| Amortization of DAC | 58 | 57 | 56 | 57 | 57 | 57 | 58 | 58 | 228 | 230 |
| Underwriting expenses | 135 | 153 | 157 | 149 | 159 | 154 | 154 | 148 | 594 | 615 |
| Amortization of other intangible assets |  | 1 |  | 1 |  | 1 |  | 1 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **7** | **(72)** | **(13)** | **69** | **45** | **10** | **96** | **124** | **(9)** | **275** |
| Net investment income | 41 | 31 | 35 | 33 | 38 | 44 | 40 | 35 | 140 | 157 |
| Net realized gains (losses) | 3 | (11) | (18) | (9) | 12 | 4 | 6 | 7 | (35) | 29 |
| Net servicing and other income (expense) | 4 | 6 | 3 | 4 | 5 | 5 | 5 | 4 | 17 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **55** | **(46)** | **7** | **97** | **100** | **63** | **147** | **170** | **113** | **480** |
| Income tax expense (benefit) | 11 | (10) | 1 | 20 | 19 | 12 | 29 | 35 | 22 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **44** | **(36)** | **6** | **77** | **81** | **51** | **118** | **135** | **91** | **385** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) to core earnings (loss):** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (3) | 10 | 19 | 9 | (13) | (4) | (6) | (6) | 35 | (29) |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [2] | 1 | (2) | (4) | (2) | 2 | 1 | 1 | 2 | (7) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**42** | $**(28)** | $**21** | $**84** | $**70** | $**48** | $**113** | $**131** | $**119** | $**362** |

---

[1]Refer to [1] on page <u>[8](#i1cb845f7c002493e82f5c752c5cfba85_37)</u> for information about catastrophe losses related to Winter Storm Elliott in the three months ended December 31, 2022 and Hurricane Ian for the three months ended September 30, 2022.

[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

<u>15</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PERSONAL LINES**

**INCOME STATEMENTS (CONTINUED)**

Prior accident year development included the following unfavorable (favorable) reserve development:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Auto liability | $— | $(9) | $— | $(5) | $(17) | $(30) | $(20) | $(23) | $(14) | $(90) |
| Homeowners | 1 | (2) |  |  | 1 | 1 | 4 | (3) | (1) | 3 |
| Catastrophes | (1) |  | (1) |  | (16) |  | (29) | (12) | (2) | (57) |
| Uncollectible Reinsurance |  | (2) |  |  |  |  |  |  | (2) |  |
| Other reserve re-estimates, net | 1 | 2 | 1 | 2 | 1 | 2 | 1 | (4) | 6 |  |
| **Total prior accident year development** | $**1** | $**(11)** | $**—** | $**(3)** | $**(31)** | $**(27)** | $**(44)** | $**(42)** | $**(13)** | $**(144)** |

---

<u>16</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PERSONAL LINES**

**UNDERWRITING RATIOS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **UNDERWRITING GAIN (LOSS)** | $**7** | $**(72)** | $**(13)** | $**69** | $**45** | $**10** | $**96** | $**124** | $**(9)** | $**275** |
| **UNDERWRITING RATIOS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophes | 71.5 | 68.8 | 65.7 | 60.8 | 67.8 | 64.4 | 60.6 | 56.4 | 66.8 | 62.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | 2.8 | 15.2 | 7.7 | 2.4 | 2.2 | 10.5 | 4.7 | 5.3 | 7.1 | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 0.1 | (1.5) |  | (0.4) | (4.2) | (3.6) | (6.0) | (5.7) | (0.4) | (4.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 74.4 | 82.5 | 73.4 | 62.8 | 65.7 | 71.2 | 59.3 | 56.0 | 73.4 | 63.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses | 24.7 | 27.1 | 28.4 | 27.6 | 28.2 | 27.4 | 27.6 | 27.1 | 26.9 | 27.6 |
| **Combined ratio** | **99.1** | **109.6** | **101.8** | **90.4** | **93.9** | **98.7** | **87.0** | **83.1** | **100.3** | **90.7** |
| &nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Current accident year catastrophes and prior accident year development | (2.9) | (13.7) | (7.7) | (2.0) | 2.0 | (6.9) | 1.3 | 0.4 | (6.7) | (0.8) |
| **Underlying combined ratio** | **96.2** | **95.9** | **94.1** | **88.5** | **95.9** | **91.8** | **88.2** | **83.5** | **93.7** | **89.9** |
| **PRODUCT** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Automobile** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Combined ratio** | **108.6** | **113.2** | **101.2** | **92.8** | **102.4** | **96.5** | **89.2** | **83.5** | **104.1** | **92.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (0.1) | (11.9) | (1.4) | (0.3) | (0.4) | (2.3) | (1.3) | (0.5) | (3.5) | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | 0.3 | 1.4 | 0.2 | 0.9 | 3.4 | 5.5 | 4.2 | 3.3 | 0.7 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying combined ratio** | **108.9** | **102.6** | **100.0** | **93.3** | **105.4** | **99.7** | **92.1** | **86.3** | **101.3** | **95.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Homeowners** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Combined ratio** | **78.1** | **102.6** | **103.1** | **85.2** | **74.8** | **103.4** | **82.0** | **86.8** | **92.2** | **86.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustment to reconcile combined ratio to underlying combined ratio:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophes | (8.8) | (22.6) | (21.2) | (7.0) | (6.0) | (28.3) | (12.8) | (15.9) | (14.9) | (15.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development | (1.0) | 0.4 | 0.1 | (0.8) | 6.2 | (0.5) | 10.0 | 6.3 | (0.3) | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying combined ratio** | **68.3** | **80.4** | **82.0** | **77.4** | **75.1** | **74.6** | **79.2** | **77.2** | **77.0** | **76.5** |

---

<u>17</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PERSONAL LINES**

**SUPPLEMENTAL DATA**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **DISTRIBUTION** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**WRITTEN PREMIUMS** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AARP Direct | $596 | $698 | $655 | $610 | $566 | $659 | $653 | $612 | $2559 | $2490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AARP Agency | 50 | 50 | 50 | 48 | 50 | 51 | 51 | 51 | 198 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Agency | 44 | 48 | 46 | 43 | 45 | 49 | 50 | 45 | 181 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 5 | 7 | 5 | 6 | 7 | 6 | 6 | 7 | 23 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**695** | $**803** | $**756** | $**707** | $**668** | $**765** | $**760** | $**715** | $**2961** | $**2908** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EARNED PREMIUMS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AARP Direct | $653 | $645 | $625 | $617 | $631 | $635 | $629 | $623 | $2540 | $2518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AARP Agency | 50 | 50 | 50 | 50 | 52 | 52 | 53 | 53 | 200 | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Agency | 45 | 46 | 46 | 47 | 48 | 49 | 50 | 51 | 184 | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 6 | 8 | 5 | 6 | 7 | 8 | 6 | 7 | 25 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**754** | $**749** | $**726** | $**720** | $**738** | $**744** | $**738** | $**734** | $**2949** | $**2954** |
| **PRODUCT LINE** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**WRITTEN PREMIUMS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | $473 | $541 | $509 | $497 | $458 | $516 | $515 | $508 | $2020 | $1997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | 222 | 262 | 247 | 210 | 210 | 249 | 245 | 207 | 941 | 911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**695** | $**803** | $**756** | $**707** | $**668** | $**765** | $**760** | $**715** | $**2961** | $**2908** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EARNED PREMIUMS** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | $519 | $516 | $497 | $493 | $508 | $511 | $509 | $507 | $2025 | $2035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | 235 | 233 | 229 | 227 | 230 | 233 | 229 | 227 | 924 | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**754** | $**749** | $**726** | $**720** | $**738** | $**744** | $**738** | $**734** | $**2949** | $**2954** |

---

<u>18</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**PERSONAL LINES**

**SUPPLEMENTAL DATA (CONTINUED)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | **STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net New Business Premium** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | $41 | $71 | $57 | $58 | $52 | $58 | $56 | $53 | $227 | $219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | $18 | $22 | $19 | $15 | $14 | $17 | $16 | $13 | $74 | $60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Renewal Written Price Increases** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | 6.3% | 5.0% | 4.0% | 2.9% | 2.6% | 2.1% | 2.3% | 1.8% | 4.5% | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | 13.3% | 11.8% | 9.0% | 8.8% | 8.1% | 8.1% | 8.5% | 9.4% | 10.7% | 8.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Policy Count Retention [1]** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | 85% | 85% | 84% | 84% | 84% | 84% | 85% | 85% | 84% | 84% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | 84% | 84% | 84% | 84% | 84% | 84% | 85% | 85% | 84% | 85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Policies in Force (in thousands)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | 1323 | 1331 | 1315 | 1315 | 1317 | 1328 | 1339 | 1357 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homeowners | 740 | 749 | 756 | 765 | 773 | 786 | 799 | 815 |  |  |

---

[1]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.

<u>19</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

 **THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**P&C OTHER OPERATIONS**

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident year development [1] [2] | $250 | $— | $30 | $— | $174 | $(5) | $— | $33 | $280 | $202 |
| Total losses and loss adjustment expenses | 250 |  | 30 |  | 174 | (5) |  | 33 | 280 | 202 |
| Underwriting expenses | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 2 | 9 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **(252)** | **(2)** | **(32)** | **(3)** | **(176)** | **3** | **(2)** | **(35)** | **(289)** | **(210)** |
| Net investment income | 17 | 14 | 16 | 16 | 17 | 22 | 20 | 16 | 63 | 75 |
| Net realized gains (losses) | 1 | (4) | (9) | (4) | 6 | 2 | 3 | 2 | (16) | 13 |
| Other expense |  |  |  |  | (1) |  |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **(234)** | **8** | **(25)** | **9** | **(154)** | **27** | **21** | **(17)** | **(242)** | **(123)** |
| Income tax expense (benefit) | (50) | 2 | (5) | 1 | (33) | 5 | 4 | (4) | (52) | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **(184)** | **6** | **(20)** | **8** | **(121)** | **22** | **17** | **(13)** | **(190)** | **(95)** |
| **Adjustments to reconcile net income (loss) to core earnings (loss):** |  |  |  |  |  |  |  |  |  |  |
| Net realized losses (gains), excluded from core earnings, before tax | (1) | 4 | 9 | 4 | (6) | (2) | (3) | (2) | 16 | (13) |
| Change in deferred gain on retroactive reinsurance, before tax | 229 |  |  |  | 155 |  |  |  | 229 | 155 |
| Income tax expense (benefit) [3] | (49) |  | (2) | (1) | (30) |  | 1 |  | (52) | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**(5)** | $**10** | $**(13)** | $**11** | $**(2)** | $**20** | $**15** | $**(15)** | $**3** | $**18** |

---

[1]A&E reserves were reviewed in fourth quarter 2022 resulting in a $229 increase in reserves in P&C Other Operations, including $161 for asbestos and $68 for environmental. The Company recognized a $229 deferred gain on retroactive reinsurance, all recorded within P&C Other Operations, as cumulative losses ceded to the A&E ADC exceed the $650 of ceded premium paid for the cover. See [2] and [4] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for additional discussion related to the deferred gain on retroactive reinsurance, including discussion of the reserve increase in fourth quarter 2021.

[2]Refer to note [3] on page <u>[9](#i1cb845f7c002493e82f5c752c5cfba85_40)</u> for a discussion of an increase in ULAE reserves in the three months ended December 31, 2022.

[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

<u>20</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

 **THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**GROUP BENEFITS**

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Earned premiums | $1498 | $1458 | $1469 | $1445 | $1380 | $1372 | $1378 | $1374 | $5870 | $5504 |
| Fee income | 48 | 46 | 48 | 45 | 47 | 43 | 49 | 44 | 187 | 183 |
| Net investment income | 154 | 117 | 130 | 123 | 128 | 159 | 136 | 127 | 524 | 550 |
| Net realized gains (losses) | 1 | (37) | (70) | (16) | 70 | 13 | 28 | 19 | (122) | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **1701** | **1584** | **1577** | **1597** | **1625** | **1587** | **1591** | **1564** | **6459** | **6367** |
| Benefits, losses and loss adjustment expenses [1] | 1138 | 1096 | 1065 | 1221 | 1198 | 1199 | 1019 | 1196 | 4520 | 4612 |
| Amortization of DAC | 7 | 8 | 9 | 9 | 8 | 11 | 10 | 11 | 33 | 40 |
| Insurance operating costs and other expenses | 371 | 364 | 365 | 367 | 358 | 336 | 340 | 339 | 1467 | 1373 |
| Amortization of other intangible assets | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 40 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total benefits, losses and expenses** | **1526** | **1478** | **1449** | **1607** | **1574** | **1556** | **1379** | **1556** | **6060** | **6065** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income taxes** | **175** | **106** | **128** | **(10)** | **51** | **31** | **212** | **8** | **399** | **302** |
| Income tax expense (benefit) | 35 | 20 | 24 | (4) | 9 | 3 | 42 | (1) | 75 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | **140** | **86** | **104** | **(6)** | **42** | **28** | **170** | **9** | **324** | **249** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) to core earnings (loss):** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (2) | 38 | 70 | 16 | (70) | (13) | (28) | (18) | 122 | (129) |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 2 | 2 | 2 | 2 | 1 | 1 | 2 | 2 | 8 | 6 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [2] | 1 | (9) | (15) | (4) | 15 | 3 | 5 | 4 | (27) | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings (loss)** | $**141** | $**117** | $**161** | $**8** | $**(12)** | $**19** | $**149** | $**(3)** | $**427** | $**153** |
| **Margin** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income margin | 8.2% | 5.4% | 6.6% | (0.4%) | 2.6% | 1.8% | 10.7% | 0.6% | 5.0% | 3.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Core earnings margin\* | 8.3% | 7.2% | 9.8% | 0.5% | (0.8%) | 1.2% | 9.5% | (0.2%) | 6.5% | 2.5% |
| **ROE** |  |  |  |  |  |  |  |  |  |  |
| **Net income available to common stockholders [3]** | **8.2%** | **5.4%** | **3.3%** | **5.1%** | **5.0%** | **5.4%** | **7.6%** | **6.4%** |  |  |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income available to common stockholders to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 3.6% | 1.6% | 0.1% | (2.6%) | (3.2%) | (1.9%) | (1.8%) | (1.2%) |  |  |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.2% | 0.2% | 0.2% | 0.2% | 0.1% | 0.2% | 0.3% | 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [2] | (0.8%) | (0.4%) | —% | 0.5% | 0.7% | 0.4% | 0.3% | 0.2% |  |  |
| &nbsp;&nbsp;&nbsp;Impact of AOCI, excluded from core earnings ROE | (0.3%) | (0.2%) | 0.1% | 0.3% | 0.5% | 0.8% | 1.1% | 0.5% |  |  |
| **Core earnings [3]** | **10.9%** | **6.6%** | **3.7%** | **3.5%** | **3.1%** | **4.9%** | **7.5%** | **6.3%** |  |  |

---

[1]Includes an increase in incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $43 and $161, respectively, for the three months ended December 31, 2022 and 2021 and $160 and $583, respectively, for the twelve months ended December 31, 2022 and 2021. The $43 of excess mortality losses in the fourth quarter of 2022 included $41 of losses with dates of loss in the fourth quarter as well as a $2 unfavorable change of estimated losses related to prior quarters. Also includes COVID-19 related losses from short-term disability of $3 and $8, respectively, for the three months ended December 31, 2022 and 2021 and $12 and $31, respectively, for the twelve months ended December 31, 2022 and 2021.

[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.

<u>21</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**GROUP BENEFITS**

**SUPPLEMENTAL DATA**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **PREMIUMS** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fully insured ongoing premiums** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group disability | $805 | $772 | $780 | $754 | $708 | $702 | $696 | $693 | $3111 | $2799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group life | 604 | 593 | 599 | 597 | 591 | 591 | 603 | 602 | 2393 | 2387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other [1] | 89 | 88 | 90 | 87 | 81 | 79 | 79 | 77 | 354 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total fully insured ongoing premiums** | **1498** | **1453** | **1469** | **1438** | **1380** | **1372** | **1378** | **1372** | **5858** | **5502** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total buyouts [2] |  | 5 |  | 7 |  |  |  | 2 | 12 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total premiums** | $**1498** | $**1458** | $**1469** | $**1445** | $**1380** | $**1372** | $**1378** | $**1374** | $**5870** | $**5504** |
| **SALES (GROSS ANNUALIZED NEW PREMIUMS)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fully insured ongoing sales** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group disability | $67 | $51 | $123 | $222 | $35 | $35 | $44 | $321 | $463 | $435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group life | 21 | 41 | 70 | 125 | 23 | 31 | 43 | 151 | 257 | 248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other [1] | 14 | 14 | 11 | 42 | 9 | 16 | 12 | 40 | 81 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total fully insured ongoing sales** | **102** | **106** | **204** | **389** | **67** | **82** | **99** | **512** | **801** | **760** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total buyouts [2] |  | 5 |  | 7 |  |  |  | 2 | 12 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total sales** | $**102** | $**111** | $**204** | $**396** | $**67** | $**82** | $**99** | $**514** | $**813** | $**762** |
| **RATIOS, EXCLUDING BUYOUTS** |  |  |  |  |  |  |  |  |  |  |
| Group disability loss ratio [3] | 65.5% | 68.4% | 66.3% | 73.2% | 71.6% | 68.4% | 64.2% | 68.4% | 68.3% | 68.2% |
| Group life loss ratio [4] | 89.6% | 83.1% | 78.9% | 98.4% | 105.0% | 110.9% | 83.6% | 108.3% | 87.5% | 101.9% |
| Total loss ratio | 73.6% | 72.8% | 70.2% | 81.9% | 84.0% | 84.7% | 71.4% | 84.3% | 74.6% | 81.1% |
| Expense ratio [5] | 25.0% | 25.4% | 25.2% | 25.9% | 26.3% | 25.2% | 25.1% | 25.3% | 25.3% | 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]Includes losses on short-term disability claims related to COVID-19 of 0.4 points and 1.1 points, respectively, for the three months ended December 31, 2022 and 2021 and 0.4 points and 1.0 points, respectively, for the twelve months ended December 31, 2022 and 2021.

[4]Includes an increase in incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 7.1 points and 27.2 points, respectively, for the three months ended December 31, 2022 and 2021 and 6.7 points and 24.4 points, respectively, for the twelve months ended December 31, 2022 and 2021.

[5]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.

<u>22</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**HARTFORD FUNDS**

**INCOME STATEMENTS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Investment management fees | $183 | $190 | $198 | $216 | $230 | $229 | $221 | $208 | $787 | $888 |
| Shareowner servicing fees | 21 | 21 | 23 | 25 | 25 | 26 | 25 | 24 | 90 | 100 |
| Other revenue | 41 | 45 | 43 | 47 | 52 | 53 | 50 | 51 | 176 | 206 |
| Net realized gains (losses) | 7 | (9) | (13) | (9) | 3 | (3) | 2 | 2 | (24) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **252** | **247** | **251** | **279** | **310** | **305** | **298** | **285** | **1029** | **1198** |
| Sub-advisory expense | 65 | 68 | 71 | 78 | 82 | 83 | 81 | 75 | 282 | 321 |
| Employee compensation and benefits | 29 | 27 | 31 | 36 | 32 | 31 | 33 | 37 | 123 | 133 |
| Distribution and service | 72 | 75 | 81 | 87 | 93 | 94 | 92 | 90 | 315 | 369 |
| General, administrative and other | 29 | 25 | 24 | 28 | 25 | 27 | 25 | 25 | 106 | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | **195** | **195** | **207** | **229** | **232** | **235** | **231** | **227** | **826** | **925** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | **57** | **52** | **44** | **50** | **78** | **70** | **67** | **58** | **203** | **273** |
| Income tax expense | 12 | 11 | 10 | 8 | 16 | 14 | 15 | 11 | 41 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | **45** | **41** | **34** | **42** | **62** | **56** | **52** | **47** | **162** | **217** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (7) | 9 | 13 | 9 | (3) | 3 | (2) | (2) | 24 | (4) |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [1] | 1 | (3) | (3) | (1) | 1 | (1) | 1 |  | (6) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Core earnings** | $**39** | $**47** | $**44** | $**50** | $**60** | $**58** | $**51** | $**45** | $**180** | $**214** |
| **Daily average Hartford Funds AUM** | $**124087** | $**129782** | $**136841** | $**150131** | $**156533** | $**155041** | $**150527** | $**143164** | $**135124** | $**151347** |
| **Return on assets (bps, net of tax) [2]** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 14.5 | 12.6 | 9.9 | 11.2 | 15.8 | 14.4 | 13.8 | 13.1 | 12.0 | 14.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core earnings\* | 12.6 | 14.5 | 12.9 | 13.3 | 15.3 | 15.0 | 13.6 | 12.6 | 13.3 | 14.1 |
| **ROE** |  |  |  |  |  |  |  |  |  |  |
| **Net income available to common stockholders [3]** | **42.4%** | **48.2%** | **51.9%** | **58.0%** | **57.8%** | **56.9%** | **54.3%** | **52.9%** |  |  |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income available to common stockholders to core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) excluded from core earnings, before tax | 6.5% | 7.8% | 6.0% | 2.0% | (1.1%) | (2.0%) | (4.3%) | (6.3%) |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [1] | (1.6%) | (1.7%) | (1.1%) | —% | 0.3% | 0.3% | 0.9% | 1.2% |  |  |
| &nbsp;&nbsp;&nbsp;Impact of AOCI, excluded from core earnings ROE | (1.2%) | (1.5%) | (0.9%) | (0.6%) | 0.4% | 0.4% | 0.3% | (0.2%) |  |  |
| **Core earnings [3]** | **46.1%** | **52.8%** | **55.9%** | **59.4%** | **57.4%** | **55.6%** | **51.2%** | **47.6%** |  |  |

---

[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.

<u>23</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**HARTFORD FUNDS**

**ASSET VALUE ROLLFORWARD**

**ASSETS UNDER MANAGEMENT BY ASSET CLASS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Equity Funds** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning balance** | $**69128** | $**74891** | $**89282** | $**95703** | $**91600** | $**93448** | $**87456** | $**82123** | $**95703** | $**82123** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | 4200 | 4257 | 5631 | 6856 | 4840 | 4757 | 5927 | 6202 | 20944 | 21726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (6505) | (5178) | (6795) | (6965) | (4938) | (5076) | (4461) | (5191) | (25443) | (19666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | (2305) | (921) | (1164) | (109) | (98) | (319) | 1466 | 1011 | (4499) | 2060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in market value and other | 6959 | (4842) | (13227) | (6312) | 4201 | (1529) | 4526 | 4322 | (17422) | 11520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance** | $**73782** | $**69128** | $**74891** | $**89282** | $**95703** | $**91600** | $**93448** | $**87456** | $**73782** | $**95703** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fixed Income Funds** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning balance** | $**16018** | $**17388** | $**18889** | $**20113** | $**19632** | $**18913** | $**17705** | $**17034** | $**20113** | $**17034** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | 1852 | 1084 | 1736 | 1900 | 1965 | 1708 | 2098 | 2258 | 6572 | 8029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (2471) | (2071) | (2306) | (2254) | (1498) | (996) | (1121) | (1486) | (9102) | (5101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | (619) | (987) | (570) | (354) | 467 | 712 | 977 | 772 | (2530) | 2928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in market value and other | 462 | (383) | (931) | (870) | 14 | 7 | 231 | (101) | (1722) | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance** | $**15861** | $**16018** | $**17388** | $**18889** | $**20113** | $**19632** | $**18913** | $**17705** | $**15861** | $**20113** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Multi-Strategy Investments Funds [1]** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning balance** | $**19028** | $**20362** | $**22603** | $**23610** | $**22925** | $**23039** | $**22170** | $**22645** | $**23610** | $**22645** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | 530 | 467 | 598 | 722 | 656 | 621 | 629 | 738 | 2317 | 2644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (959) | (810) | (841) | (826) | (711) | (706) | (718) | (1751) | (3436) | (3886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | (429) | (343) | (243) | (104) | (55) | (85) | (89) | (1013) | (1119) | (1242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in market value and other | 1376 | (991) | (1998) | (903) | 740 | (29) | 958 | 538 | (2516) | 2207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance** | $**19975** | $**19028** | $**20362** | $**22603** | $**23610** | $**22925** | $**23039** | $**22170** | $**19975** | $**23610** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Exchange-Traded Funds ("ETF") AUM** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning balance** | $**2590** | $**2765** | $**3211** | $**3206** | $**3129** | $**3111** | $**2923** | $**2825** | $**3206** | $**2825** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | 60 | 28 | (34) | 143 | 44 | (13) | 86 | 4 | 197 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in market value and other | 204 | (203) | (412) | (138) | 33 | 31 | 102 | 94 | (549) | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance** | $**2854** | $**2590** | $**2765** | $**3211** | $**3206** | $**3129** | $**3111** | $**2923** | $**2854** | $**3206** |
| **Mutual Fund and ETF AUM** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning balance** | $**106764** | $**115406** | $**133985** | $**142632** | $**137286** | $**138511** | $**130254** | $**124627** | $**142632** | $**124627** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales - mutual fund | 6582 | 5808 | 7965 | 9478 | 7461 | 7086 | 8654 | 9198 | 29833 | 32399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions - mutual fund | (9935) | (8059) | (9942) | (10045) | (7147) | (6778) | (6300) | (8428) | (37981) | (28653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows - ETF | 60 | 28 | (34) | 143 | 44 | (13) | 86 | 4 | 197 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows - mutual fund and ETF | (3293) | (2223) | (2011) | (424) | 358 | 295 | 2440 | 774 | (7951) | 3867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in market value and other | 9001 | (6419) | (16568) | (8223) | 4988 | (1520) | 5817 | 4853 | (22209) | 14138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance** | **112472** | **106764** | **115406** | **133985** | **142632** | **137286** | **138511** | **130254** | **112472** | **142632** |
| **Talcott Resolution life and annuity separate account AUM [2]** | **11635** | **11063** | **11992** | **14061** | **15263** | **14800** | **15282** | **14944** | **11635** | **15263** |
| **Hartford Funds AUM** | $**124107** | $**117827** | $**127398** | $**148046** | $**157895** | $**152086** | $**153793** | $**145198** | $**124107** | $**157895** |

---

[1]Includes balanced, allocation, and alternative investment products.

[2]Represents AUM of the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.

<u>24</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**CORPORATE**

**INCOME STATEMENTS** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Fee income [1] | $12 | $11 | $13 | $13 | $12 | $12 | $14 | $12 | $49 | $50 |
| Other revenue (loss) [2] |  |  |  | 1 |  |  | (2) | (8) | 1 | (10) |
| Net investment income | 13 | 7 | 3 | 3 | 16 | 2 | 3 | 3 | 26 | 24 |
| Net realized gains (losses) | 11 | (10) | (30) | (16) | 3 | 3 | 61 | 6 | (45) | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues (losses)** | **36** | **8** | **(14)** | **1** | **31** | **17** | **76** | **13** | **31** | **137** |
| Benefits, losses and loss adjustment expenses [3] | 3 | 2 | 2 | 2 | 3 | 1 | 2 | 1 | 9 | 7 |
| Insurance operating costs and other expenses [1][4] | 13 | 12 | 23 | 13 | 15 | 17 | 45 | 13 | 61 | 90 |
| Interest expense | 50 | 50 | 51 | 62 | 62 | 58 | 57 | 57 | 213 | 234 |
| Restructuring and other costs | 3 | 3 | 2 | 5 | 2 | (12) |  | 11 | 13 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | **69** | **67** | **78** | **82** | **82** | **64** | **104** | **82** | **296** | **332** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss before income taxes** | **(33)** | **(59)** | **(92)** | **(81)** | **(51)** | **(47)** | **(28)** | **(69)** | **(265)** | **(195)** |
| Income tax benefit | (11) | (15) | (21) | (22) | (14) | (15) | (7) | (11) | (69) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss** | **(22)** | **(44)** | **(71)** | **(59)** | **(37)** | **(32)** | **(21)** | **(58)** | **(196)** | **(148)** |
| Preferred stock dividends | 5 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 21 | 21 |
| **Net loss available to common stockholders** | **(27)** | **(50)** | **(76)** | **(64)** | **(42)** | **(38)** | **(26)** | **(63)** | **(217)** | **(169)** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net loss available to common stockholders to core loss:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (10) | 10 | 31 | 15 |  | (2) | (62) | (6) | 46 | (70) |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax [5] |  |  |  |  |  | 2 | 30 |  |  | 32 |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 3 | 3 | 2 | 5 | 2 | (12) |  | 11 | 13 | 1 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  | 9 |  |  |  |  |  | 9 |  |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) [6] | 1 | (1) | (9) | (4) | (1) | 3 | 6 | (2) | (13) | 6 |
| **Core loss** | $**(33)** | $**(38)** | $**(43)** | $**(48)** | $**(41)** | $**(47)** | $**(52)** | $**(60)** | $**(162)** | $**(200)** |

---

[1]Includes investment management fees and expenses related to managing third party business, including management of a portion of the invested assets of Talcott Resolution.

[2]The year ended December 31, 2021 included $11 of loss before tax from the Company's former retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021.

[3]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.

[4]The twelve months ended December 31, 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.

[5]See note [2] on [page](#i1cb845f7c002493e82f5c752c5cfba85_13) <u>[2](#i1cb845f7c002493e82f5c752c5cfba85_13)</u> for explanation of the integration and other non-recurring M&A costs in the three months ended June 30, 2021.

[6]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

<u>25</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

 **THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**INVESTMENT INCOME BEFORE TAX**

**CONSOLIDATED**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Investment Income (Loss)** | | | | | | | | | | |
| Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $365 | $323 | $290 | $275 | $270 | $269 | $273 | $279 | $1253 | $1091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 51 | 53 | 56 | 56 | 60 | 63 | 65 | 70 | 216 | 258 |
| Total fixed maturities | 416 | 376 | 346 | 331 | 330 | 332 | 338 | 349 | 1469 | 1349 |
| Equity securities | 17 | 15 | 13 | 12 | 30 | 23 | 10 | 10 | 57 | 73 |
| Mortgage loans | 55 | 53 | 53 | 50 | 48 | 45 | 45 | 43 | 211 | 181 |
| Limited partnerships and other alternative investments [2] | 169 | 62 | 158 | 126 | 170 | 259 | 191 | 112 | 515 | 732 |
| Other [3] | 4 | (1) | (7) | 9 | 15 | 11 | 18 | 14 | 5 | 58 |
| Subtotal | 661 | 505 | 563 | 528 | 593 | 670 | 602 | 528 | 2257 | 2393 |
| Investment expense | (21) | (18) | (22) | (19) | (20) | (20) | (21) | (19) | (80) | (80) |
| **Total net investment income** | $**640** | $**487** | $**541** | $**509** | $**573** | $**650** | $**581** | $**509** | $**2177** | $**2313** |
| Annualized investment yield, before tax [4] | 4.6% | 3.5% | 3.9% | 3.6% | 4.1% | 4.8% | 4.4% | 3.8% | 3.9% | 4.3% |
| Annualized limited partnerships and other alternative investment yield, before tax [4] | 16.8% | 6.3% | 17.3% | 14.6% | 22.1% | 39.6% | 32.5% | 21.1% | 14.4% | 31.8% |
| Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]\* | 3.7% | 3.3% | 3.0% | 2.9% | 3.1% | 3.0% | 3.1% | 3.1% | 3.2% | 3.1% |
| Annualized investment yield, net of tax [4] | 3.7% | 2.8% | 3.2% | 2.9% | 3.4% | 3.9% | 3.6% | 3.1% | 3.2% | 3.5% |
| Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]\* | 3.0% | 2.7% | 2.4% | 2.4% | 2.5% | 2.5% | 2.5% | 2.6% | 2.6% | 2.5% |
| Average reinvestment rate [5] | 6.0% | 4.9% | 4.5% | 3.3% | 2.9% | 2.6% | 2.5% | 2.3% | 4.4% | 2.6% |
| Average sales/maturities yield [6] | 4.2% | 3.7% | 3.6% | 3.0% | 3.3% | 3.1% | 2.9% | 2.9% | 3.6% | 3.0% |
| Portfolio duration (in years) [7] | 4.0 | 4.0 | 4.3 | 4.4 | 4.3 | 4.5 | 4.6 | 4.8 | 4.0 | 4.3 |

---

[1]Includes income on short-term investments.

[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in private equity, fixed income, hedge funds and public equity.

[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 repurchase agreements and 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 repurchase agreement and securities lending collateral, if any.

[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, cash equivalent securities, and repurchase agreement collateral.

[7]Excludes certain short-term investments.

<u>26</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**INVESTMENT INCOME BEFORE TAX**

**PROPERTY & CASUALTY** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Investment Income (Loss)** | | | | | | | | | | |
| Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $276 | $243 | $219 | $207 | $202 | $200 | $203 | $207 | $945 | $812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 38 | 40 | 43 | 41 | 44 | 47 | 49 | 52 | 162 | 192 |
| Total fixed maturities | 314 | 283 | 262 | 248 | 246 | 247 | 252 | 259 | 1107 | 1004 |
| Equity securities | 9 | 10 | 10 | 9 | 11 | 18 | 8 | 7 | 38 | 44 |
| Mortgage loans | 39 | 38 | 38 | 36 | 35 | 31 | 32 | 30 | 151 | 128 |
| Limited partnerships and other alternative investments [2] | 119 | 44 | 123 | 97 | 137 | 198 | 151 | 84 | 383 | 570 |
| Other [3] | 4 | (2) | (9) | 6 | 13 | 8 | 15 | 12 | (1) | 48 |
| Subtotal | 485 | 373 | 424 | 396 | 442 | 502 | 458 | 392 | 1678 | 1794 |
| Investment expense | (16) | (13) | (17) | (14) | (15) | (15) | (16) | (14) | (60) | (60) |
| **Total net investment income** | $**469** | $**360** | $**407** | $**382** | $**427** | $**487** | $**442** | $**378** | $**1618** | $**1734** |
| Annualized investment yield, before tax [4] | 4.4% | 3.4% | 3.9% | 3.7% | 4.2% | 4.8% | 4.5% | 3.9% | 3.9% | 4.4% |
| Annualized limited partnerships and other alternative investment yield, before tax [4] | 14.8% | 5.7% | 16.7% | 14.1% | 22.0% | 37.3% | 31.4% | 19.2% | 13.4% | 30.2% |
| Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] | 3.6% | 3.3% | 2.9% | 2.9% | 3.0% | 3.0% | 3.1% | 3.2% | 3.2% | 3.1% |
| Annualized investment yield, net of tax [4] | 3.6% | 2.7% | 3.1% | 3.0% | 3.4% | 4.0% | 3.7% | 3.2% | 3.1% | 3.6% |
| Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4] | 2.9% | 2.6% | 2.4% | 2.4% | 2.5% | 2.5% | 2.6% | 2.6% | 2.6% | 2.5% |
| Average reinvestment rate [5] | 6.1% | 4.9% | 4.4% | 3.2% | 2.8% | 2.6% | 2.5% | 2.3% | 4.4% | 2.6% |
| Average sales/maturities yield [6] | 4.1% | 3.7% | 3.6% | 2.9% | 3.1% | 3.0% | 2.9% | 2.8% | 3.5% | 3.0% |
| Portfolio duration (in years) [7] | 3.8 | 3.9 | 4.2 | 4.3 | 4.3 | 4.5 | 4.5 | 4.7 | 3.8 | 4.3 |

---

Footnotes [1] through [7] are explained on page <u>[26](#i1cb845f7c002493e82f5c752c5cfba85_103)</u>.

<u>27</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**INVESTMENT INCOME BEFORE TAX**

**GROUP BENEFITS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Investment Income (Loss)** | | | | | | | | | | |
| Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $79 | $75 | $69 | $67 | $67 | $69 | $69 | $71 | $290 | $276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 12 | 11 | 12 | 13 | 14 | 14 | 15 | 16 | 48 | 59 |
| Total fixed maturities | 91 | 86 | 81 | 80 | 81 | 83 | 84 | 87 | 338 | 335 |
| Equity securities | 2 | 3 | 2 | 2 | 3 | 4 | 1 | 2 | 9 | 10 |
| Mortgage loans | 16 | 15 | 15 | 14 | 13 | 14 | 13 | 13 | 60 | 53 |
| Limited partnerships and other alternative investments [2] | 50 | 18 | 35 | 29 | 33 | 61 | 40 | 28 | 132 | 162 |
| Other [3] |  |  | 2 | 3 | 3 | 2 | 3 | 2 | 5 | 10 |
| Subtotal | 159 | 122 | 135 | 128 | 133 | 164 | 141 | 132 | 544 | 570 |
| Investment expense | (5) | (5) | (5) | (5) | (5) | (5) | (5) | (5) | (20) | (20) |
| **Total net investment income** | $**154** | $**117** | $**130** | $**123** | $**128** | $**159** | $**136** | $**127** | $**524** | $**550** |
| Annualized investment yield, before tax [4] | 5.3% | 4.0% | 4.4% | 4.2% | 4.4% | 5.4% | 4.7% | 4.4% | 4.5% | 4.7% |
| Annualized limited partnerships and other alternative investment yield, before tax [4] | 24.5% | 8.7% | 19.4% | 16.7% | 22.3% | 49.7% | 37.1% | 29.8% | 18.5% | 38.7% |
| Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] | 3.8% | 3.6% | 3.4% | 3.4% | 3.4% | 3.5% | 3.5% | 3.5% | 3.6% | 3.5% |
| Annualized investment yield, net of tax [4] | 4.2% | 3.2% | 3.6% | 3.4% | 3.5% | 4.4% | 3.8% | 3.5% | 3.6% | 3.8% |
| Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4] | 3.1% | 2.9% | 2.8% | 2.8% | 2.8% | 2.8% | 2.8% | 2.9% | 2.9% | 2.8% |
| Average reinvestment rate [5] | 5.9% | 4.8% | 4.7% | 3.6% | 3.1% | 2.9% | 2.7% | 2.8% | 4.6% | 2.9% |
| Average sales/maturities yield [6] | 4.3% | 4.0% | 3.8% | 3.3% | 3.7% | 3.5% | 3.4% | 3.3% | 3.8% | 3.5% |
| Portfolio duration (in years) [7] | 4.8 | 4.8 | 5.0 | 5.2 | 5.4 | 5.6 | 5.7 | 5.8 | 4.8 | 5.4 |

---

Footnotes [1] through [7] are explained on page <u>[26](#i1cb845f7c002493e82f5c752c5cfba85_103)</u>.

<u>28</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**NET INVESTMENT INCOME** 

**CONSOLIDATED**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| **Net Investment Income by Segment** | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| &nbsp;&nbsp;&nbsp;**Net Investment Income** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Lines | $411 | $315 | $356 | $333 | $372 | $421 | $382 | $327 | $1415 | $1502 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal Lines | 41 | 31 | 35 | 33 | 38 | 44 | 40 | 35 | 140 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;P&C Other Operations | 17 | 14 | 16 | 16 | 17 | 22 | 20 | 16 | 63 | 75 |
| &nbsp;&nbsp;&nbsp;**Total Property & Casualty** | **469** | **360** | **407** | **382** | **427** | **487** | **442** | **378** | **1618** | **1734** |
| &nbsp;&nbsp;&nbsp;&nbsp;Group Benefits | 154 | 117 | 130 | 123 | 128 | 159 | 136 | 127 | 524 | 550 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hartford Funds | 4 | 3 | 1 | 1 | 2 | 2 |  | 1 | 9 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 13 | 7 | 3 | 3 | 16 | 2 | 3 | 3 | 26 | 24 |
| **Total net investment income by segment** | $**640** | $**487** | $**541** | $**509** | $**573** | $**650** | $**581** | $**509** | $**2177** | $**2313** |
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |  |  | **YEAR ENDED** | **YEAR ENDED** |
| **Net Investment Income From Limited Partnerships and Other Alternative Investments** | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| &nbsp;&nbsp;&nbsp;Total Property & Casualty | $119 | $44 | $123 | $97 | $137 | $198 | $151 | $84 | $383 | $570 |
| &nbsp;&nbsp;&nbsp;Group Benefits | 50 | 18 | 35 | 29 | 33 | 61 | 40 | 28 | 132 | 162 |
| **Total net investment income from limited partnerships and other alternative investments [1]** | $**169** | $**62** | $**158** | $**126** | $**170** | $**259** | $**191** | $**112** | $**515** | $**732** |

---

[1]Amounts are included above in total net investment income by segment.

<u>29</u>

------

<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMPONENTS OF NET REALIZED GAINS (LOSSES)**

**CONSOLIDATED**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Realized Gains (Losses)** | | | | | | | | | | |
| &nbsp;&nbsp;Gross gains on sales of fixed maturities | $3 | $16 | $15 | $23 | $157 | $63 | $68 | $31 | $57 | $319 |
| &nbsp;&nbsp;Gross losses on sales of fixed maturities | (59) | (81) | (80) | (95) | (35) | (8) | (15) | (31) | (315) | (89) |
| &nbsp;&nbsp;&nbsp;Equity securities [1] | 101 | (81) | (262) | (107) | 93 | 3 | 88 | 43 | (349) | 227 |
| &nbsp;&nbsp;&nbsp;Net credit losses on fixed maturities, AFS | (3) | (3) |  | (12) |  |  |  | 4 | (18) | 4 |
| &nbsp;&nbsp;&nbsp;Change in ACL on mortgage loans |  |  | (5) | (2) | (3) | (2) | 10 | 4 | (7) | 9 |
| &nbsp;&nbsp;&nbsp;Intent-to-sell impairments | (1) | (2) |  | (3) |  |  |  |  | (6) |  |
| &nbsp;&nbsp;&nbsp;Other net gains (losses) [2] | (19) | (15) | (6) | 51 |  | 14 | (4) | 29 | 11 | 39 |
| **Total net realized gains (losses)** | **22** | **(166)** | **(338)** | **(145)** | **212** | **70** | **147** | **80** | **(627)** | **509** |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), included in core earnings, before tax |  |  | 2 | (1) |  | (2) | 1 | (3) | 1 | (4) |
| **Total net gains (losses) excluded from core earnings, before tax** | **22** | **(166)** | **(336)** | **(146)** | **212** | **68** | **148** | **77** | **(626)** | **505** |
| &nbsp;&nbsp;&nbsp;Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings | 4 | 34 | 73 | 29 | (46) | (14) | (32) | (15) | 140 | (107) |
| **Total net realized gains (losses) excluded from core earnings, after tax** | $**26** | $**(132)** | $**(263)** | $**(117)** | $**166** | $**54** | $**116** | $**62** | $**(486)** | $**398** |

---

[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, equity derivatives, 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.

<u>30</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**COMPOSITION OF INVESTED ASSETS**

**CONSOLIDATED**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Dec 31 2022** | **Dec 31 2022** | **Sept 30 2022** | **Sept 30 2022** | **Jun 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Mar 31 2022** | **Dec 31 2021** | **Dec 31 2021** |
| | **Amount [1]** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** | **Amount [1]** | **Percent** |
|<br>**Total investments** | $**52560** | **100.0%** | $**50661** | **100.0%** | $**52392** | **100.0%** | $**55951** | **100.0%** | $**57749** | **100.0%** |
| Asset-backed securities | $1941 | 5.4% | $1892 | 5.3% | $1342 | 3.6% | $942 | 2.4% | $1135 | 2.7% |
| Collateralized loan obligations | 2941 | 8.1% | 2919 | 8.2% | 2890 | 7.6% | 2971 | 7.4% | 3025 | 7.1% |
| Commercial mortgage-backed securities | 3368 | 9.3% | 3278 | 9.2% | 3398 | 8.9% | 3722 | 9.3% | 4119 | 9.6% |
| Corporate | 15233 | 42.0% | 14888 | 41.7% | 16151 | 42.8% | 17618 | 43.8% | 18707 | 43.6% |
| Foreign government/government agencies | 547 | 1.5% | 584 | 1.6% | 661 | 1.7% | 784 | 1.9% | 910 | 2.1% |
| Municipal | 6296 | 17.4% | 6197 | 17.3% | 7067 | 18.6% | 7594 | 18.8% | 8257 | 19.3% |
| Residential mortgage-backed securities | 3708 | 10.2% | 3724 | 10.4% | 3929 | 10.3% | 3936 | 9.8% | 3643 | 8.5% |
| U.S. Treasuries | 2197 | 6.1% | 2235 | 6.3% | 2449 | 6.5% | 2666 | 6.6% | 3051 | 7.1% |
| **Total fixed maturities, AFS [2]** | $**36231** | **100.0%** | $**35717** | **100.0%** | $**37887** | **100.0%** | $**40233** | **100.0%** | $**42847** | **100.0%** |
| U.S. government/government agencies | $5025 | 13.9% | $5018 | 14.0% | $5326 | 14.0% | $5426 | 13.5% | $5881 | 13.7% |
| AAA | 5824 | 16.1% | 5675 | 15.9% | 5576 | 14.7% | 5728 | 14.2% | 6133 | 14.3% |
| AA | 6650 | 18.4% | 6465 | 18.1% | 6847 | 18.1% | 7324 | 18.2% | 7718 | 18.0% |
| A | 8968 | 24.7% | 8972 | 25.1% | 9660 | 25.5% | 10300 | 25.6% | 10962 | 25.6% |
| BBB | 7973 | 22.0% | 7732 | 21.7% | 8514 | 22.5% | 9060 | 22.5% | 9708 | 22.7% |
| BB | 1235 | 3.4% | 1333 | 3.8% | 1383 | 3.7% | 1799 | 4.5% | 1811 | 4.2% |
| B | 535 | 1.5% | 490 | 1.4% | 548 | 1.4% | 560 | 1.4% | 599 | 1.4% |
| CCC | 19 | —% | 16 | —% | 22 | 0.1% | 27 | 0.1% | 30 | 0.1% |
| CC & below | 2 | —% | 16 | —% | 11 | —% | 9 | —% | 5 | —% |
| **Total fixed maturities, AFS [2]** | $**36231** | **100.0%** | $**35717** | **100.0%** | $**37887** | **100.0%** | $**40233** | **100.0%** | $**42847** | **100.0%** |

---

[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page <u>[4](#i1cb845f7c002493e82f5c752c5cfba85_19)</u>).

[2]Fixed maturities, at fair value using the fair value option are not included.

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**THE HARTFORD FINANCIAL SERVICES GROUP, INC.**

**INVESTED ASSET EXPOSURES**

**DECEMBER 31, 2022**

---

| | | | |
|:---|:---|:---|:---|
| | **Cost or<br>Amortized Cost** | **Fair Value** | **Percent of Total<br>Invested Assets** |
| **Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector** | | | |
| Financial services | $5527 | $5094 | 9.7% |
| Technology and communications | 2582 | 2340 | 4.5% |
| Consumer non-cyclical | 2338 | 2156 | 4.1% |
| Utilities | 1918 | 1709 | 3.2% |
| Capital goods | 1466 | 1351 | 2.6% |
| Consumer cyclical | 1186 | 1089 | 2.1% |
| Energy | 1161 | 1072 | 2.0% |
| Basic industry | 832 | 769 | 1.5% |
| Transportation | 731 | 651 | 1.2% |
| Other | 854 | 803 | 1.5% |
| **Total** | $**18595** | $**17034** | **32.4%** |
| **Top Ten Exposures by Issuer [1]** |  |  |  |
| Toronto Dominion Bank | $206 | $191 | 0.4% |
| Morgan Stanley | 195 | 178 | 0.3% |
| Mitsubishi UFJ Financial Group | 179 | 174 | 0.3% |
| Penske Corporation | 171 | 166 | 0.3% |
| Goldman Sachs Group Inc. | 176 | 151 | 0.3% |
| Government of Canada | 152 | 145 | 0.3% |
| JPMorgan Chase & Company | 168 | 144 | 0.3% |
| Hyundai Motor Company | 162 | 143 | 0.3% |
| Walmart Inc. | 145 | 141 | 0.3% |
| Westpac Banking Corporation | 152 | 137 | 0.2% |
| **Total** | $**1706** | $**1570** | **3.0%** |

---

[1]Includes corporate bonds, municipal bonds, bonds issued by foreign government/government agencies, and equity securities excluding exchange-traded mutual funds.

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**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 business, including management of a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well as certain of Talcott's affiliates. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP, the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").

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, and policies in-force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Renewal written price increases for Commercial Lines represent 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 represent 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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.

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.

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**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.

**<u>Core earnings</u>-** 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 available to common stockholders, 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 <u>[2](#i1cb845f7c002493e82f5c752c5cfba85_13)</u>.

**<u>Core earnings per share</u>**-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.

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**BASIC EARNINGS PER SHARE**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Income available to common stockholders per share** | $**1.84** | $**1.03** | $**1.33** | $**1.32** | $**2.14** | $**1.38** | $**2.54** | $**0.68** | $**5.52** | $**6.71** |
| &nbsp;&nbsp;&nbsp;**Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (0.07) | 0.52 | 1.03 | 0.44 | (0.63) | (0.20) | (0.42) | (0.21) | 1.93 | (1.45) |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | (0.03) |  | 0.03 | 0.04 |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  | 0.03 |  |  |  |  |  | 0.03 |  |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.02 | 0.10 | 0.03 | 0.06 | 0.17 |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 0.72 |  |  |  | 0.51 | 0.08 | 0.11 | 0.02 | 0.71 | 0.70 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) on items excluded from core earnings | (0.17) | (0.12) | (0.24) | (0.11) | 0.02 | 0.03 | 0.03 | 0.02 | (0.62) | 0.11 |
| **Core earnings per share** | $**2.35** | $**1.46** | $**2.18** | $**1.69** | $**2.06** | $**1.28** | $**2.36** | $**0.57** | $**7.67** | $**6.24** |

---

**<u>Core earnings per diluted share</u>**-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**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net Income available to common stockholders per diluted share** | $**1.81** | $**1.02** | $**1.32** | $**1.30** | $**2.10** | $**1.36** | $**2.51** | $**0.67** | $**5.44** | $**6.62** |
| &nbsp;&nbsp;&nbsp;**Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | (0.07) | 0.51 | 1.01 | 0.43 | (0.61) | (0.19) | (0.41) | (0.21) | 1.90 | (1.43) |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | (0.03) |  | 0.03 | 0.04 |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax |  |  | 0.03 |  |  |  |  |  | 0.03 |  |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.02 | 0.10 | 0.02 | 0.06 | 0.16 |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 0.71 |  |  |  | 0.50 | 0.08 | 0.11 | 0.02 | 0.69 | 0.69 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) on items excluded from core earnings | (0.17) | (0.12) | (0.24) | (0.09) | 0.01 | 0.02 | 0.02 | 0.03 | (0.60) | 0.11 |
| **Core earnings per diluted share** | $**2.31** | $**1.44** | $**2.15** | $**1.66** | $**2.02** | $**1.26** | $**2.33** | $**0.56** | $**7.56** | $**6.15** |

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**<u>Book</u> <u>value per diluted share (excluding AOCI)</u>**-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 <u>[1](#i1cb845f7c002493e82f5c752c5cfba85_10)</u>.

**<u>Core Earnings Return on Equity</u>**- 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:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** | **LAST TWELVE MONTHS ENDED** |
|  | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** |
| **Net income ROE** | **11.6%** | **12.8%** | **13.1%** | **15.4%** | **13.1%** | **12.3%** | **12.3%** | **10.5%** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) ROE to core earnings ROE:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), excluded from core earnings, before tax | 4.1% | 2.9% | 1.3% | (1.7%) | (2.8%) | (2.3%) | (1.9%) | (1.8)% |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, before tax | 0.1% | 0.1% | —% | —% | —% | 0.1% | 0.7% | 0.7% |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, before tax | 0.1% | 0.1% | 0.1% | —% | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.1% | 0.1% | 0.2% | 0.3% | 0.3% | 0.4% | 0.4% | 0.3% |
| &nbsp;&nbsp;&nbsp;Change in deferred gain on retroactive reinsurance, before tax | 1.5% | 1.1% | 1.3% | 1.5% | 1.4% | 1.6% | 1.6% | 1.8% |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) on items not included in core earnings | (1.3%) | (0.9%) | (0.6%) | (0.1%) | 0.2% | (0.1%) | (0.3%) | (0.3%) |
| &nbsp;&nbsp;&nbsp;Impact of AOCI, excluded from denominator of core earnings ROE | (1.8%) | (1.9%) | (1.4%) | (0.6%) | 0.5% | 0.5% | 0.3% | (0.3%) |
| **Core earnings ROE** | **14.4%** | **14.3%** | **14.0%** | **14.8%** | **12.7%** | **12.5%** | **13.1%** | **10.9%** |

---

**<u>Common stockholders' equity, excluding AOCI</u>**- 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 <u>[4](#i1cb845f7c002493e82f5c752c5cfba85_19)</u>.

**<u>Total capitalization, excluding AOCI, net of tax</u>**- 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 <u>[5](#i1cb845f7c002493e82f5c752c5cfba85_22)</u>.

**<u>Underwriting gain (loss)</u>**- 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.

**<u>Underlying underwriting gain (loss)</u>**- 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**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income** | $**426** | $**256** | $**375** | $**468** | $**662** | $**430** | $**704** | $**251** | $**1525** | $**2047** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to underlying underwriting gain:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (469) | (360) | (407) | (382) | (427) | (487) | (442) | (378) | (1618) | (1734) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | (3) | 110 | 225 | 104 | (136) | (57) | (56) | (53) | 436 | (302) |
| &nbsp;&nbsp;&nbsp;Net servicing and other expense (income) | (2) | (3) | (2) | 2 | (3) | (2) | (6) | (2) | (5) | (13) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 107 | 76 | 97 | 116 | 160 | 99 | 155 | 55 | 396 | 469 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **59** | **79** | **288** | **308** | **256** | **(17)** | **355** | **(127)** | **734** | **467** |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 135 | 293 | 123 | 98 | 22 | 300 | 128 | 214 | 649 | 664 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 183 | (53) | (58) | (36) | 29 | 90 | (149) | 229 | 36 | 199 |
| **Underlying underwriting gain** | $**377** | $**319** | $**353** | $**370** | $**307** | $**373** | $**334** | $**316** | $**1419** | $**1330** |

---

**COMMERCIAL LINES**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income** | $**566** | $**286** | $**389** | $**383** | $**702** | $**357** | $**569** | $**129** | $**1624** | $**1757** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to underlying underwriting gain:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (411) | (315) | (356) | (333) | (372) | (421) | (382) | (327) | (1415) | (1502) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | 1 | 95 | 198 | 91 | (118) | (51) | (47) | (44) | 385 | (260) |
| &nbsp;&nbsp;&nbsp;Other expense (income) | 2 | 3 | 1 | 6 | 1 | 3 | (1) | 2 | 12 | 5 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 146 | 84 | 101 | 95 | 174 | 82 | 122 | 24 | 426 | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **304** | **153** | **333** | **242** | **387** | **(30)** | **261** | **(216)** | **1032** | **402** |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 114 | 179 | 67 | 81 | 6 | 222 | 93 | 175 | 441 | 496 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | (68) | (42) | (88) | (33) | (114) | 122 | (105) | 238 | (231) | 141 |
| **Underlying underwriting gain** | $**350** | $**290** | $**312** | $**290** | $**279** | $**314** | $**249** | $**197** | $**1242** | $**1039** |

---

<u>37</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**PERSONAL LINES**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income (loss)** | $**44** | $**(36)** | $**6** | $**77** | $**81** | $**51** | $**118** | $**135** | $**91** | $**385** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) to underlying underwriting gain:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (41) | (31) | (35) | (33) | (38) | (44) | (40) | (35) | (140) | (157) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | (3) | 11 | 18 | 9 | (12) | (4) | (6) | (7) | 35 | (29) |
| &nbsp;&nbsp;&nbsp;Net servicing and other expense (income) | (4) | (6) | (3) | (4) | (5) | (5) | (5) | (4) | (17) | (19) |
| &nbsp;&nbsp;&nbsp;Income tax (benefit) | 11 | (10) | 1 | 20 | 19 | 12 | 29 | 35 | 22 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **7** | **(72)** | **(13)** | **69** | **45** | **10** | **96** | **124** | **(9)** | **275** |
| &nbsp;&nbsp;&nbsp;Current accident year catastrophes | 21 | 114 | 56 | 17 | 16 | 78 | 35 | 39 | 208 | 168 |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 1 | (11) |  | (3) | (31) | (27) | (44) | (42) | (13) | (144) |
| **Underlying underwriting gain** | $**29** | $**31** | $**43** | $**83** | $**30** | $**61** | $**87** | $**121** | $**186** | $**299** |

---

**P&C OTHER OPERATIONS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income (loss)** | $**(184)** | $**6** | $**(20)** | $**8** | $**(121)** | $**22** | $**17** | $**(13)** | $**(190)** | $**(95)** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income (loss) to underlying underwriting loss:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (17) | (14) | (16) | (16) | (17) | (22) | (20) | (16) | (63) | (75) |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains) | (1) | 4 | 9 | 4 | (6) | (2) | (3) | (2) | 16 | (13) |
| &nbsp;&nbsp;&nbsp;Other expense |  |  |  |  | 1 |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (50) | 2 | (5) | 1 | (33) | 5 | 4 | (4) | (52) | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Underwriting gain (loss)** | **(252)** | **(2)** | **(32)** | **(3)** | **(176)** | **3** | **(2)** | **(35)** | **(289)** | **(210)** |
| &nbsp;&nbsp;&nbsp;Prior accident year development | 250 |  | 30 |  | 174 | (5) |  | 33 | 280 | 202 |
| **Underlying underwriting loss** | $**(2)** | $**(2)** | $**(2)** | $**(3)** | $**(2)** | $**(2)** | $**(2)** | $**(2)** | $**(9)** | $**(8)** |

---

**<u>Underlying combined ratio</u>**-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 <u>[10](#i1cb845f7c002493e82f5c752c5cfba85_43)</u>, <u>[13](#i1cb845f7c002493e82f5c752c5cfba85_52)</u> and <u>[17](#i1cb845f7c002493e82f5c752c5cfba85_64)</u>, respectively.

<u>38</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**<u>Core earnings margin</u>**- 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 ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Net income margin** | **8.2%** | **5.4%** | **6.6%** | **(0.4)%** | **2.6%** | **1.8%** | **10.7%** | **0.6%** | **5.0%** | **3.9%** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income margin to core earnings margin:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized losses (gains), before tax | (0.1)% | 2.3% | 4.1% | 1.0% | (4.3)% | (0.9)% | (1.7)% | (1.1)% | 1.8% | (2.0)% |
| &nbsp;&nbsp;&nbsp;Integration and other non-recurring M&A costs, before tax | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 0.1% | (0.6)% | (1.0)% | (0.2)% | 0.8% | 0.2% | 0.4% | 0.2% | (0.4)% | 0.5% |
| **Core earnings margin** | **8.3%** | **7.2%** | **9.8%** | **0.5%** | **(0.8)%** | **1.2%** | **9.5%** | **(0.2)%** | **6.5%** | **2.5%** |

---

**<u>Return on Assets ("ROA"), Core Earnings</u>**- 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 ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| **Return on Assets ("ROA")** | **14.5** | **12.6** | **9.9** | **11.2** | **15.8** | **14.4** | **13.8** | **13.1** | **12.0** | **14.3** |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile ROA to ROA, core earnings:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Effect of net realized losses (gains), excluded from core earnings, before tax | (2.2) | 2.8 | 3.9 | 2.4 | (0.8) | 0.8 | (0.5) | (0.5) | 1.7 | (0.3) |
| &nbsp;&nbsp;&nbsp;Effect of income tax expense (benefit) | 0.3 | (0.9) | (0.9) | (0.3) | 0.3 | (0.2) | 0.3 |  | (0.4) | 0.1 |
| **Return on Assets ("ROA"), core earnings** | **12.6** | **14.5** | **12.9** | **13.3** | **15.3** | **15.0** | **13.6** | **12.6** | **13.3** | **14.1** |

---

<u>39</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**<u>Net investment income, excluding limited partnerships and other alternative investments</u>**- 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 ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Total net investment income | $640 | $487 | $541 | $509 | $573 | $650 | $581 | $509 | $2177 | $2313 |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (169) | (62) | (158) | (126) | (170) | (259) | (191) | (112) | (515) | (732) |
| **Net investment income excluding limited partnerships and other alternative investments** | $**471** | $**425** | $**383** | $**383** | $**403** | $**391** | $**390** | $**397** | $**1662** | $**1581** |

---

**PROPERTY & CASUALTY**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Total net investment income | $469 | $360 | $407 | $382 | $427 | $487 | $442 | $378 | $1618 | $1734 |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (119) | (44) | (123) | (97) | (137) | (198) | (151) | (84) | (383) | (570) |
| **Net investment income excluding limited partnerships and other alternative investments** | $**350** | $**316** | $**284** | $**285** | $**290** | $**289** | $**291** | $**294** | $**1235** | $**1164** |

---

**GROUP BENEFITS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Total net investment income | $154 | $117 | $130 | $123 | $128 | $159 | $136 | $127 | $524 | $550 |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (50) | (18) | (35) | (29) | (33) | (61) | (40) | (28) | (132) | (162) |
| **Net investment income excluding limited partnerships and other alternative investments** | $**104** | $**99** | $**95** | $**94** | $**95** | $**98** | $**96** | $**99** | $**392** | $**388** |

---

<u>40</u>

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<u>[**Table of Contents**](#i1cb845f7c002493e82f5c752c5cfba85_4)</u>

**<u>Annualized investment yield, excluding limited partnerships and other alternative investments</u>**-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, excluding repurchase agreement and securities lending collateral, 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 ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Annualized investment yield | 4.6% | 3.5% | 3.9% | 3.6% | 4.1% | 4.8% | 4.4% | 3.8% | 3.9% | 4.3% |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (0.9)% | (0.2)% | (0.9)% | (0.7)% | (1.0)% | (1.8)% | (1.3)% | (0.7)% | (0.7)% | (1.2)% |
| **Annualized investment yield excluding limited partnerships and other alternative investments** | **3.7%** | **3.3%** | **3.0%** | **2.9%** | **3.1%** | **3.0%** | **3.1%** | **3.1%** | **3.2%** | **3.1%** |

---

**PROPERTY & CASUALTY**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Annualized investment yield | 4.4% | 3.4% | 3.9% | 3.7% | 4.2% | 4.8% | 4.5% | 3.9% | 3.9% | 4.4% |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (0.8)% | (0.1)% | (1.0)% | (0.8)% | (1.2)% | (1.8)% | (1.4)% | (0.7)% | (0.7)% | (1.3)% |
| **Annualized investment yield excluding limited partnerships and other alternative investments** | **3.6%** | **3.3%** | **2.9%** | **2.9%** | **3.0%** | **3.0%** | **3.1%** | **3.2%** | **3.2%** | **3.1%** |

---

**GROUP BENEFITS**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **YEAR ENDED** | **YEAR ENDED** |
| | **Dec 31 2022** | **Sept 30 2022** | **Jun 30 2022** | **Mar 31 2022** | **Dec 31 2021** | **Sept 30 2021** | **Jun 30 2021** | **Mar 31 2021** | **Dec 31 2022** | **Dec 31 2021** |
| Annualized investment yield | 5.3% | 4.0% | 4.4% | 4.2% | 4.4% | 5.4% | 4.7% | 4.4% | 4.5% | 4.7% |
| Adjustment for loss (income) from limited partnerships and other alternative investments | (1.5)% | (0.4)% | (1.0)% | (0.8)% | (1.0)% | (1.9)% | (1.2)% | (0.9)% | (0.9)% | (1.2)% |
| **Annualized investment yield excluding limited partnerships and other alternative investments** | **3.8%** | **3.6%** | **3.4%** | **3.4%** | **3.4%** | **3.5%** | **3.5%** | **3.5%** | **3.6%** | **3.5%** |

---

<u>41</u>