EX-99.2 3 ex992ifs3312022.htm EX-99.2 Document


INVESTOR FINANCIAL SUPPLEMENT
March 31, 2022
thehartfordlogoa.jpg

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


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
As of April 27, 2022
Address:
One Hartford Plaza  A.M. Best  Standard & Poor’s  Moody’s
Hartford, CT 06155Insurance Financial Strength Ratings:      
Hartford Fire Insurance Company  A+  A+  A1
Hartford Life and Accident Insurance Company  A+  A+  A1
Navigators Insurance CompanyA+ANR
- Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
- Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address:- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.comNR- Not Rated
Other Ratings:      
Contact:Senior debt  a-  BBB+  Baa1
Susan Spivak BernsteinJunior subordinated debenturesbbbBBB-Baa2
Senior Vice PresidentPreferred stockbbbBBB-Baa3
Investor Relations
Phone (860) 547-6233 - The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
TRANSFER AGENT
Stockholder correspondence should be mailed to:Overnight correspondence should be mailed to:
ComputershareComputershare
P.O. Box 505000462 South 4th Street, Suite 1600
Louisville, KY 40233Louisville, KY 40202
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.
This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange
Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.


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


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
HIGHLIGHTS
Net income$445 $729 $482 $905 $249 
Net income available to common stockholders [1]$440 $724 $476 $900 $244 
Core earnings*$561 $697 $442 $836 $203 
Total revenues$5,393 $5,816 $5,686 $5,589 $5,299 
Total assets$75,252 $76,578 $76,290 $74,732 $74,201 
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders$1.32 $2.14 $1.38 $2.54 $0.68 
Core earnings*$1.69 $2.06 $1.28 $2.36 $0.57 
Diluted earnings per common share
Net income available to common stockholders$1.30 $2.10 $1.36 $2.51 $0.67 
Core earnings*$1.66 $2.02 $1.26 $2.33 $0.56 
Weighted average common shares outstanding (basic)332.3 338.8 345.6 353.7 358.2 
Dilutive effect of stock compensation5.0 6.0 5.1 4.8 4.0 
Weighted average common shares outstanding and dilutive potential common shares (diluted)337.3 344.8 350.7 358.5 362.2 
Common shares outstanding330.7 334.9 341.8 349.0 357.5 
Book value per common share$47.06 $52.28 $51.28 $51.32 $48.58 
Per common share impact of accumulated other comprehensive income [2]5.14 (0.51)(0.90)(1.64)(0.74)
Book value per common share (excluding AOCI)*$52.20 $51.77 $50.38 $49.68 $47.84 
Book value per diluted share$46.36 $51.36 $50.53 $50.62 $48.04 
Per diluted share impact of AOCI5.06 (0.50)(0.89)(1.61)(0.73)
Book value per diluted share (excluding AOCI)*$51.42 $50.86 $49.64 $49.01 $47.31 
Common shares outstanding and dilutive potential common shares335.7 340.9 346.9 353.8 361.5 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")15.4 %13.1 %12.3 %12.3 %10.5 %
Core earnings ROE*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 33.
1
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Earned premiums$4,651 $4,631 $4,565 $4,460 $4,343 
Fee income362 381 377 375 355 
Net investment income509 573 650 581 509 
Net realized gains (losses) (145)212 70 147 80 
Other revenues16 19 24 26 12 
Total revenues 5,393 5,816 5,686 5,589 5,299 
Benefits, losses and loss adjustment expenses [1]3,118 3,173 3,420 2,786 3,350 
Amortization of deferred acquisition costs ("DAC")440 428 419 417 416 
Insurance operating costs and other expenses1,207 1,233 1,200 1,202 1,144 
Interest expense62 62 58 57 57 
Amortization of other intangible assets18 18 18 17 18 
Restructuring and other costs [2]5 2 (12)— 11 
Total benefits, losses and expenses4,850 4,916 5,103 4,479 4,996 
Income before income taxes543 900 583 1,110 303 
Income tax expense98 171 101 205 54 
Net income445 729 482 905 249 
Preferred stock dividends 5 5 6 5 5 
Net income available to common stockholders440 724 476 900 244 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax146 (212)(68)(148)(77)
Restructuring and other costs, before tax [2]5 2 (12)— 11 
Integration and other non-recurring M&A costs, before tax [3]5 5 8 36 9 
Change in deferred gain on retroactive reinsurance, before tax— 173 28 39 6 
Income tax expense (benefit) [4](35)5 10 9 10 
Core earnings$561 $697 $442 $836 $203 
[1]P&C incurred losses in the current accident year arising from the Coronavirus Disease 2019 ("COVID-19") pandemic were $24 for the three months ended March 31, 2021. Incurred losses in Group Benefits from excess mortality, primarily caused by direct and indirect impacts of COVID-19, were $96 for the three months ended March 31, 2022 and were $185 for the three months ended March 31, 2021. COVID-19 related losses (benefits) from short-term disability claims were $9 for the three ended March 31, 2022 and were $13 for the three months ended March 31, 2021. The three months ended March 31, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America. See note [1] on page 9 for more information.
[2]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
[3]The three months ended March 31, 2022 included Navigators Group acquisition integration costs of $3 and integration costs related to the 2017 acquisition of Aetna's group benefits business of $2. The three month period ended March 31, 2021 included Navigators Group acquisition transaction and integration costs of $7, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $2.
[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.
2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income (loss):
Commercial Lines$383 $702 $357 $569 $129 
Personal Lines77 81 51 118 135 
P&C Other Operations8 (121)22 17 (13)
Property & Casualty ("P&C")468 662 430 704 251 
Group Benefits(6)42 28 170 9 
Hartford Funds42 62 56 52 47 
Sub-total504 766 514 926 307 
Corporate (59)(37)(32)(21)(58)
Net income 445 729 482 905 249 
Preferred stock dividends5 5 6 5 5 
Net income available to common stockholders$440 $724 $476 $900 $244 
Core earnings (losses):
Commercial Lines$456 $622 $344 $560 $105 
Personal Lines84 70 48 113 131 
P&C Other Operations11 (2)20 15 (15)
P&C551 690 412 688 221 
Group Benefits8 (12)19 149 (3)
Hartford Funds50 60 58 51 45 
Sub-total609 738 489 888 263 
Corporate (48)(41)(47)(52)(60)
Core earnings$561 $697 $442 $836 $203 


3
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATE [1]CONSOLIDATED
Mar 31 2022Dec 31 2021Mar 31 2022Dec 31 2021Mar 31 2022Dec 31 2021Mar 31 2022Dec 31 2021Mar 31 2022Dec 31 2021
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value$31,201 $33,019 $8,695 $9,451 $— $— $337 $377 $40,233 $42,847 
Fixed maturities, at fair value using the fair value option241 124 47 36 — — — — 288 160 
Equity securities, at fair value1,285 1,410 342 338 70 116 213 230 1,910 2,094 
Mortgage loans, net4,125 3,908 1,574 1,475 — — — — 5,699 5,383 
Limited partnerships and other alternative investments2,925 2,689 734 664 — — — — 3,659 3,353 
Other investments162 165 7 9 56 29 — 12 225 215 
Short-term investments1,682 1,332 389 352 295 251 1,571 1,762 3,937 3,697 
Total investments41,621 42,647 11,788 12,325 421 396 2,121 2,381 55,951 57,749 
Cash198 176 20 15 3 3 2 11 223 205 
Restricted cash72 121 11 11 — — — — 83 132 
Premiums receivable and agents’ balances, net4,191 3,924 596 521 — — — — 4,787 4,445 
Reinsurance recoverables, net [2]6,101 5,997 251 250 — — 274 276 6,626 6,523 
DAC899 843 35 31 7 7 — — 941 881 
Deferred income taxes 324 (22)(121)(228)2 — 501 520 706 270 
Goodwill778 778 723 723 181 181 229 229 1,911 1,911 
Property and equipment, net856 883 68 71 11 11 60 62 995 1,027 
Other intangible assets397 410 428 438 10 10 — — 835 858 
Other assets1,474 1,856 222 285 96 112 402 324 2,194 2,577 
Total assets$56,911 $57,613 $14,021 $14,442 $731 $720 $3,589 $3,803 $75,252 $76,578 
Unpaid losses and loss adjustment expenses$31,617 $31,449 $8,142 $8,210 $— $— $— $— $39,759 $39,659 
Reserves for future policy benefits [2]— — 394 399 — — 188 197 582 596 
Other policyholder funds and benefits payable [2]— — 422 426 — — 255 261 677 687 
Unearned premiums7,511 7,154 39 40 — — — — 7,550 7,194 
Debt— — — — — — 4,945 4,944 4,945 4,944 
Other liabilities3,081 3,047 514 355 252 229 1,995 2,024 5,842 5,655 
Total liabilities42,209 41,650 9,511 9,430 252 229 7,383 7,426 59,355 58,735 
Common stockholders' equity, excluding AOCI*14,996 14,845 4,504 4,530 479 491 (2,717)(2,529)17,262 17,337 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax(294)1,118 6 482 — — (1,411)(1,428)(1,699)172 
Total stockholders' equity14,702 15,963 4,510 5,012 479 491 (3,794)(3,623)15,897 17,843 
Total liabilities and stockholders' equity$56,911 $57,613 $14,021 $14,442 $731 $720 $3,589 $3,803 $75,252 $76,578 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.7 billion and $1.9 billion as of March 31, 2022 and December 31 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.
4
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
DEBT
Short-term debt $591 $— $— $— $— 
Senior notes3,855 3,854 3,853 3,264 3,263 
Junior subordinated debentures499 1,090 1,090 1,090 1,090 
Total debt $4,945 $4,944 $4,943 $4,354 $4,353 
STOCKHOLDERS’ EQUITY
Total stockholders’ equity$15,897 $17,843 $17,862 $18,244 $17,702 
Less: Preferred stock334 334 334 334 334 
Less: AOCI(1,699)172 307 570 264 
Common stockholders' equity, excluding AOCI$17,262 $17,337 $17,221 $17,340 $17,104 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$20,842 $22,787 $22,805 $22,598 $22,055 
Total capitalization, excluding AOCI, net of tax*$22,541 $22,615 $22,498 $22,028 $21,791 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI23.7 %21.7 %21.7 %19.3 %19.7 %
Total debt to capitalization, excluding AOCI*21.9 %21.9 %22.0 %19.8 %20.0 %
Total debt and preferred stock to capitalization, including AOCI25.3 %23.2 %23.1 %20.7 %21.3 %
Total debt and preferred stock to capitalization, excluding AOCI*23.4 %23.3 %23.5 %21.3 %21.5 %
Total rating agency adjusted debt to capitalization [1] [2]25.1 %23.1 %24.3 %22.0 %22.6 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]8.0:110.9:19.8:110.7:14.8:1
[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 $0.5 billion and $0.9 billion as of March 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.
5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
MARCH 31, 2022

P&C GROUP BENEFITS
U.S. statutory net income (loss) [1][2]$486 $(11)
U.S. statutory capital [2][3]$12,028 $2,392 
U.S. GAAP adjustments [2]:
DAC865 35 
Non-admitted deferred tax assets [4]168 143 
Deferred taxes [5](488)(418)
Goodwill133 723 
Other intangible assets55 428 
Non-admitted assets other than deferred taxes816 79 
Asset valuation and interest maintenance reserve— 366 
Benefit reserves(100)180 
Unrealized gains (losses) on investments(345)60 
Deferred gain on retroactive reinsurance agreements [6](524)— 
Other, net1,003 522 
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]13,611 4,510 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group1,091 — 
Total U.S. GAAP stockholders’ equity$14,702 $4,510 
[1]Statutory net income (loss) is for the three months ended March 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 A&E ADC agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.


6
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net unrealized gain (loss) on fixed maturities, AFS$(266)$1,616 $1,930 $2,204 $1,909 
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")
(2)(2)(2)(2)(2)
Net gains on cash flow hedging instruments5 6 13 12 17 
Total net unrealized gain (loss)$(263)$1,620 $1,941 $2,214 $1,924 
Foreign currency translation adjustments41 41 42 46 44 
Pension and other postretirement plan adjustments(1,477)(1,489)(1,676)(1,690)(1,704)
Total AOCI $(1,699)$172 $307 $570 $264 
7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Written premiums [1]
$3,516 $3,180 $3,297 $3,254 $3,218 
Change in unearned premium reserve310 (71)104 172 249 
Earned premiums [1]3,206 3,251 3,193 3,082 2,969 
Fee income 17 17 16 16 17 
Losses and loss adjustment expenses
Current accident year before catastrophes [2]1,833 1,921 1,830 1,786 1,710 
Current accident year catastrophes [3]98 22 300 128 214 
Prior accident year development [4](36)29 90 (149)229 
Total losses and loss adjustment expenses1,895 1,972 2,220 1,765 2,153 
Amortization of DAC428 417 405 404 402 
Underwriting expenses577 608 588 561 544 
Amortization of other intangible assets8 8 8 7 8 
Dividends to policyholders 7 7 5 6 6 
Underwriting gain (loss)*308 256 (17)355 (127)
Net investment income382 427 487 442 378 
Net realized gains (losses)(104)136 57 56 53 
Net servicing and other income (expense)(2)3 2 6 2 
Income before income taxes584 822 529 859 306 
Income tax expense116 160 99 155 55 
Net income468 662 430 704 251 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax106 (139)(56)(56)(51)
Integration and other non-recurring M&A costs, before tax3 4 5 4 7 
Change in deferred gain on retroactive reinsurance, before tax [4]— 173 28 39 6 
Income tax expense (benefit) [5](26)(10)5 (3)8 
Core earnings$551 $690 $412 $688 $221 
ROE
Net income available to common stockholders [6] 18.4 %15.3 %14.0 %13.8 %11.5 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(1.3 %)(2.4 %)(1.8 %)(1.2 %)(1.4 %)
Integration and other non-recurring M&A costs, before tax0.1 %0.2 %0.2 %0.2 %0.3 %
Change in deferred gain on retroactive reinsurance, before tax [4]2.1 %2.0 %2.4 %2.2 %2.6 %
Income tax expense (benefit) [5](0.3 %)— %(0.3 %)(0.5 %)(0.4 %)
Impact of AOCI, excluded from core earnings ROE0.6 %1.7 %1.8 %2.0 %0.7 %
Core earnings [6]19.6 %16.8 %16.3 %16.5 %13.3 %
[1]The three months ended March 31, 2022 included a provision for reinstatement premium of $11 as a result of estimated ceded incurred losses related to the Ukraine conflict. Refer to note [3] below.
[2]The three months ended March 31, 2021 included $24 of COVID-19 losses and loss adjustment expenses, including $20 for workers' compensation and $4 for financial lines and other.
[3]The three months ended March 31, 2022 included $27 of incurred catastrophe losses net of reinsurance related to the Ukraine conflict, primarily representing losses from political violence and terrorism insurance, including aviation war, and from credit and political risk insurance coverages.
[4]Prior accident year development does not include a benefit for the portion of losses ceded to NICO in excess of ceded premium paid under the Navigators and A&E ADC agreements, which is recognized as a deferred gain under retroactive reinsurance accounting.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[6]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.
8
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)
 THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines$— $— $9 $— $— 
Auto liability - Personal Lines(5)(17)(30)(20)(23)
Homeowners— 1 1 4 (3)
Marine— 1 (1)(5)6 
Professional liability— 5 — (6)(1)
Package business (11)(25)(20)(19)(27)
General liability [1]12 3 144 — 307 
Bond— — (12)(14)— 
Assumed Reinsurance12 (6)— (2)2 
Commercial property(15)(2)(4)(7)(13)
Net asbestos and environmental reserves— — — — — 
Workers’ compensation (45)(77)(30)(43)(40)
Workers' compensation discount accretion9 9 8 9 9 
Catastrophes(3)(56)— (82)(16)
Uncollectible reinsurance— 4 — (1)(9)
Other reserve re-estimates10 16 (3)(2)31 
Prior accident year development before change in deferred gain(36)(144)62 (188)223 
Change in deferred gain on retroactive reinsurance included in other liabilities [2]— 173 28 39 6 
Total prior accident year development$(36)$29 $90 $(149)$229 
[1]The three months ended March 31, 2021 included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an initial agreement to settle claims against the Boy Scouts of America ("BSA"). On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA under which The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s.
[2]For the three months ended March 31, 2021, an increase in deferred gain on retroactive reinsurance of $6 was recognized relating to ceding losses to the Navigators ADC in excess of ceded premium paid and was primarily driven by marine and commercial automobile liability.
9
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
UNDERWRITING GAIN (LOSS)$308 $256 $(17)$355 $(127)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]57.2 59.1 57.3 57.9 57.6 
Current accident year catastrophes3.1 0.7 9.4 4.2 7.2 
Prior accident year development(1.1)0.9 2.8 (4.8)7.7 
Total losses and loss adjustment expenses59.1 60.7 69.5 57.3 72.5 
Expenses [2]31.1 31.3 30.8 31.0 31.6 
Policyholder dividends0.2 0.2 0.2 0.2 0.2 
Combined ratio90.4 92.1 100.5 88.5 104.3 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(2.0)(1.6)(12.2)0.6 (14.9)
Underlying combined ratio *88.5 90.6 88.3 89.2 89.4 
[1]The three months ended March 31, 2021 included 0.8 points of COVID-19 losses. See [2] on page 8.
[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
10
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Written premiums [1]$2,809 $2,512 $2,532 $2,494 $2,503 
Change in unearned premium reserve323 (1)83 150 268 
Earned premiums [1]2,486 2,513 2,449 2,344 2,235 
Fee income9 9 8 8 9 
Losses and loss adjustment expenses
Current accident year before catastrophes [2]1,395 1,421 1,351 1,339 1,296 
Current accident year catastrophes [3]81 6 222 93 175 
Prior accident year development(33)(114)122 (105)238 
Total losses and loss adjustment expenses1,443 1,313 1,695 1,327 1,709 
Amortization of DAC371 360 348 346 344 
Underwriting expenses 425 447 432 405 394 
Amortization of other intangible assets7 8 7 7 7 
Dividends to policyholders7 7 5 6 6 
Underwriting gain (loss)242 387 (30)261 (216)
Net servicing income1 2 2 7 2 
Net investment income333 372 421 382 327 
Net realized gains (losses)(91)118 51 47 44 
Other expenses(7)(3)(5)(6)(4)
Income before income taxes478 876 439 691 153 
Income tax expense95 174 82 122 24 
Net income383 702 357 569 129 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax93 (120)(50)(47)(43)
Integration and other non-recurring M&A costs, before tax [4]3 4 5 4 7 
Change in deferred gain on retroactive reinsurance, before tax— 18 28 39 6 
Income tax expense (benefit) [5](23)18 4 (5)6 
Core earnings$456 $622 $344 $560 $105 
[1]Refer to [1] on page 8 for impact related to Ukraine conflict.
[2]Refer to [2] on page 8 for impact related to COVID-19.
[3]Refer to [3] on page 8 for information about catastrophe losses related to the Ukraine conflict.
[4]Includes Navigators Group integration costs.
[5]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.
11
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Auto liability$— $— $9 $— $— 
Professional liability — 5 — (6)(1)
Package business (11)(25)(20)(19)(27)
General liability [1]12 3 144 — 307 
Marine— 1 (1)(5)6 
Bond— — (12)(14)— 
Assumed Reinsurance12 (6)— (2)2 
Commercial property(15)(2)(4)(7)(13)
Workers’ compensation(45)(77)(30)(43)(40)
Workers' compensation discount accretion9 9 8 9 9 
Catastrophes(3)(40)— (53)(4)
Uncollectible reinsurance— — — — (5)
Other reserve re-estimates8 — — (4)(2)
Prior accident year development before change in deferred gain(33)(132)94 (144)232 
Change in deferred gain on retroactive reinsurance included in other liabilities [2]— 18 28 39 6 
Total prior accident year development$(33)$(114)$122 $(105)$238 
[1]See [1] on page 9 for discussion related to general liability prior year development for the three months ended March 31, 2021.
[2]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.
12
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
UNDERWRITING GAIN (LOSS)$242 $387 $(30)$261 $(216)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]56.1 56.5 55.2 57.1 58.0 
Current accident year catastrophes3.3 0.2 9.1 4.0 7.8 
Prior accident year development (1.3)(4.5)5.0 (4.5)10.6 
Total losses and loss adjustment expenses58.0 52.2 69.2 56.6 76.5 
Expenses [2]31.9 32.1 31.8 32.0 32.9 
Policyholder dividends0.3 0.3 0.2 0.3 0.3 
Combined ratio [3]90.3 84.6 101.2 88.9 109.7 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(2.0)4.3 (14.1)0.5 (18.4)
Underlying combined ratio 88.3 88.9 87.2 89.4 91.2 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio82.9 79.0 84.5 83.6 95.4 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(1.9)(0.2)(5.0)(3.8)(12.1)
Prior accident year development4.9 9.2 4.4 7.2 5.0 
Underlying combined ratio 85.9 88.0 83.9 87.0 88.3 
MIDDLE & LARGE COMMERCIAL
Combined ratio94.6 83.5 108.0 92.9 98.9 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(2.3)2.1 (16.3)(5.8)(7.0)
Prior accident year development(0.9)4.4 (0.4)4.4 3.3 
Underlying combined ratio91.5 90.0 91.4 91.5 95.3 
GLOBAL SPECIALTY
Combined ratio [3]96.9 94.8 97.1 91.9 92.4 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(6.9)(3.5)(6.2)(1.8)(2.2)
Prior accident year development(1.8)(2.5)(4.0)0.1 (0.3)
Underlying combined ratio88.2 88.8 86.9 90.3 89.9 
[1]The three months ended March 31, 2021 included COVID-19 losses of 1.1 points. See [2] on page 8.
[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[3]The three months ended March 31, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $6 and 0.3 points of the Commercial Lines combined ratio and 1.1 points of the global specialty combined ratio.
13
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
WRITTEN PREMIUMS
Small Commercial$1,180 $1,025 $1,012 $977 $1,053 
Middle & Large Commercial853 847 884 817 775 
Middle Market724 722 765 720 662 
National Accounts and Other129 125 119 97 113 
Global Specialty [1]764 629 625 689 665 
U.S.466 457 452 466 421 
International91 109 81 113 110 
Global Re207 63 92 110 134 
Other12 11 11 11 10 
Total$2,809 $2,512 $2,532 $2,494 $2,503 
EARNED PREMIUMS
Small Commercial$1,034 $1,043 $1,015 $956 $916 
Middle & Large Commercial828 840 820 788 752 
Middle Market717 725 704 682 653 
National Accounts and Other111 115 116 106 99 
Global Specialty [1]613 619 604 589 556 
U.S.426 434 421 406 386 
International87 97 95 99 102 
Global Re100 88 88 84 68 
Other11 11 10 11 11 
Total$2,486 $2,513 $2,449 $2,344 $2,235 
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium$186 $162 $165 $170 $176 
Renewal Written Price Increases2.9 %3.5 %3.3 %3.1 %2.4 %
Policy Count Retention [2]86 %85 %84 %84 %84 %
Policies in Force (in thousands)1,378 1,366 1,352 1,329 1,304 
Middle Market [3]
Net New Business Premium$120 $124 $139 $147 $122 
Renewal Written Price Increases4.8 %5.7 %5.8 %6.2 %6.0 %
Policy Count Retention [2]84 %83 %84 %82 %80 %
Global Specialty
Gross New Business Premium [4]$206 $225 $234 $237 $216 
Renewal Written Price Increases [5]8.3 %9.2 %10.7 %13.5 %17.2 %
[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.
14
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Written premiums$707 $668 $765 $760 $715 
Change in unearned premium reserve(13)(70)21 22 (19)
Earned premiums720 738 744 738 734 
Fee income 8 8 8 8 8 
Losses and loss adjustment expenses
Current accident year before catastrophes438 500 479 447 414 
Current accident year catastrophes17 16 78 35 39 
Prior accident year development (3)(31)(27)(44)(42)
Total losses and loss adjustment expenses452 485 530 438 411 
Amortization of DAC57 57 57 58 58 
Underwriting expenses149 159 154 154 148 
Amortization of other intangible assets1 — 1 — 1 
Underwriting gain69 45 10 96 124 
Net servicing income4 4 6 5 4 
Net investment income33 38 44 40 35 
Net realized gains (losses)(9)12 4 6 7 
Other income (expense)— 1 (1)— — 
Income before income taxes97 100 63 147 170 
Income tax expense20 19 12 29 35 
Net income77 81 51 118 135 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax9 (13)(4)(6)(6)
Income tax expense (benefit) [1](2)2 1 1 2 
Core earnings$84 $70 $48 $113 $131 
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Auto liability$(5)$(17)$(30)$(20)$(23)
Homeowners— 1 1 4 (3)
Catastrophes— (16)— (29)(12)
Other reserve re-estimates, net2 1 2 1 (4)
Total prior accident year development$(3)$(31)$(27)$(44)$(42)

16
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
UNDERWRITING GAIN$69 $45 $10 $96 $124 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes60.8 67.8 64.4 60.6 56.4 
Current accident year catastrophes2.4 2.2 10.5 4.7 5.3 
Prior accident year development(0.4)(4.2)(3.6)(6.0)(5.7)
Total losses and loss adjustment expenses62.8 65.7 71.2 59.3 56.0 
Expenses27.6 28.2 27.4 27.6 27.1 
Combined ratio90.4 93.9 98.7 87.0 83.1 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
(2.0)2.0 (6.9)1.3 0.4 
Underlying combined ratio88.5 95.9 91.8 88.2 83.5 
PRODUCT
Automobile
Combined ratio92.8 102.4 96.5 89.2 83.5 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(0.3)(0.4)(2.3)(1.3)(0.5)
Prior accident year development0.9 3.4 5.5 4.2 3.3 
Underlying combined ratio93.3 105.4 99.7 92.1 86.3 
Homeowners
Combined ratio85.2 74.8 103.4 82.0 86.8 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(7.0)(6.0)(28.3)(12.8)(15.9)
Prior accident year development(0.8)6.2 (0.5)10.0 6.3 
Underlying combined ratio77.4 75.1 74.6 79.2 77.2 

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

 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$610 $566 $659 $653 $612 
AARP Agency48 50 51 51 51 
Other Agency43 45 49 50 45 
Other6 7 6 6 7 
Total$707 $668 $765 $760 $715 
EARNED PREMIUMS
AARP Direct$617 $631 $635 $629 $623 
AARP Agency50 52 52 53 53 
Other Agency47 48 49 50 51 
Other6 7 8 6 7 
Total$720 $738 $744 $738 $734 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$497 $458 $516 $515 $508 
Homeowners210 210 249 245 207 
Total$707 $668 $765 $760 $715 
EARNED PREMIUMS
Automobile$493 $508 $511 $509 $507 
Homeowners227 230 233 229 227 
Total$720 $738 $744 $738 $734 

18
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile$58 $52 $58 $56 $53 
Homeowners$15 $14 $17 $16 $13 
Renewal Written Price Increases
Automobile2.9 %2.7 %2.1 %2.3 %1.8 %
Homeowners8.8 %8.1 %8.1 %8.5 %9.4 %
Policy Count Retention [1]
Automobile84 %84 %84 %85 %85 %
Homeowners84 %84 %84 %85 %85 %
Policies in Force (in thousands)
Automobile1,315 1,317 1,328 1,339 1,357 
Homeowners765 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.

19
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Losses and loss adjustment expenses
Prior accident year development$— $174 $(5)$— $33 
Total losses and loss adjustment expenses— 174 (5)— 33 
Underwriting expenses3 2 2 2 2 
Underwriting gain (loss)(3)(176)3 (2)(35)
Net investment income16 17 22 20 16 
Net realized gains (losses)(4)6 2 3 2 
Other income— (1)— — — 
Income (loss) before income taxes9 (154)27 21 (17)
Income tax expense (benefit)1 (33)5 4 (4)
Net income (loss)8 (121)22 17 (13)
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax4 (6)(2)(3)(2)
Change in deferred gain on retroactive reinsurance, before tax— 155 — — — 
Income tax expense (benefit) [1](1)(30)— 1 — 
Core earnings (losses)$11 $(2)$20 $15 $(15)
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.






















20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Earned premiums$1,445 $1,380 $1,372 $1,378 $1,374 
Fee income45 47 43 49 44 
Net investment income123 128 159 136 127 
Net realized gains (losses)(16)70 13 28 19 
Total revenues1,597 1,625 1,587 1,591 1,564 
Benefits, losses and loss adjustment expenses [1]1,221 1,198 1,199 1,019 1,196 
Amortization of DAC9 8 11 10 11 
Insurance operating costs and other expenses367 358 336 340 339 
Amortization of other intangible assets10 10 10 10 10 
Total benefits, losses and expenses1,607 1,574 1,556 1,379 1,556 
Income before income taxes(10)51 31 212 8 
Income tax expense (benefit)(4)9 3 42 (1)
Net income (loss)(6)42 28 170 9 
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax16 (70)(13)(28)(18)
Integration and other non-recurring M&A costs, before tax2 1 1 2 2 
Income tax expense (benefit) [2](4)15 3 5 4 
Core earnings (losses)$8 $(12)$19 $149 $(3)
Margin
Net income margin(0.4 %)2.6 %1.8 %10.7 %0.6 %
Core earnings margin*0.5 %(0.8 %)1.2 %9.5 %(0.2 %)
ROE
Net income available to common stockholders [3]5.1 %5.0 %5.4 %7.6 %6.4 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(2.6 %)(3.2 %)(1.9 %)(1.8 %)(1.2 %)
Integration and other non-recurring M&A costs, before tax0.2 %0.1 %0.2 %0.3 %0.4 %
Income tax expense (benefit) [2]0.5 %0.7 %0.4 %0.3 %0.2 %
Impact of AOCI, excluded from core earnings ROE0.3 %0.5 %0.8 %1.1 %0.5 %
Core earnings [3]3.5 %3.1 %4.9 %7.5 %6.3 %
[1]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $96 and $185, respectively, for the three months ended March 31, 2022 and 2021. The $96 of excess mortality losses in the first quarter of 2022 included $122 of losses with dates of loss in the first quarter and a $26 net decrease of estimated losses from prior accident years. Also includes COVID-19 related losses from short-term disability of $9 and $13, respectively, for the three months ended March 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.
21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA
 
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
PREMIUMS
Fully insured ongoing premiums
Group disability$754 $708 $702 $696 $693 
Group life 597 591 591 603 602 
Other [1]87 81 79 79 77 
Total fully insured ongoing premiums1,438 1,380 1,372 1,378 1,372 
Total buyouts [2]7 — — — 2 
Total premiums$1,445 $1,380 $1,372 $1,378 $1,374 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$222 $35 $35 $44 $321 
Group life125 23 31 43 151 
Other [1]42 9 16 12 40 
Total fully insured ongoing sales389 67 82 99 512 
Total buyouts [2]7 — — — 2 
Total sales$396 $67 $82 $99 $514 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]73.2 %71.6 %68.4 %64.2 %68.4 %
Group life loss ratio [4]98.4 %105.0 %110.9 %83.6 %108.3 %
Total loss ratio81.9 %84.0 %84.7 %71.4 %84.3 %
Expense ratio [5]25.9 %26.3 %25.2 %25.1 %25.3 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts.
[3]Includes losses (benefits) on short-term disability claims related to COVID-19 of 1.1 points and 1.8 points, respectively, for the three months ended March 31, 2022 and 2021.
[4]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 16.1 points and 30.7 points, respectively, for the three months ended March 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.
22


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Investment management fees $216 $230 $229 $221 $208 
Shareholder servicing fees 25 25 26 25 24 
Other revenue47 52 53 50 51 
Net realized gains (losses)(9)3 (3)2 2 
Total revenues 279 310 305 298 285 
Sub-advisory expense78 82 83 81 75 
Employee compensation and benefits36 32 31 33 37 
Distribution and service87 93 94 92 90 
General, administrative and other28 25 27 25 25 
Total expenses 229 232 235 231 227 
Income before income taxes50 78 70 67 58 
Income tax expense8 16 14 15 11 
Net income42 62 56 52 47 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax9 (3)3 (2)(2)
Income tax expense (benefit) [1](1)1 (1)1 — 
Core earnings$50 $60 $58 $51 $45 
Daily average Hartford Funds AUM$150,131 $156,533 $155,041 $150,527 $143,164 
Return on assets (bps, net of tax) [2]
Net income11.2 15.8 14.4 13.8 13.1 
Core earnings*13.3 15.3 15.0 13.6 12.6 
ROE
Net income available to common stockholders [3]58.0 %57.8 %56.9 %54.3 %52.9 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax2.0 %(1.1 %)(2.0 %)(4.3 %)(6.3 %)
Income tax expense (benefit) [1]— %0.3 %0.3 %0.9 %1.2 %
Impact of AOCI, excluded from core earnings ROE(0.6 %)0.4 %0.4 %0.3 %(0.2 %)
Core earnings [3]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.


23
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Equity Funds
Beginning balance $95,703 $91,600 $93,448 $87,456 $82,123 
Sales6,856 4,840 4,757 5,927 6,202 
Redemptions(6,965)(4,938)(5,076)(4,461)(5,191)
Net flows(109)(98)(319)1,466 1,011 
Change in market value and other (6,312)4,201 (1,529)4,526 4,322 
Ending balance$89,282 $95,703 $91,600 $93,448 $87,456 
Fixed Income Funds
Beginning balance $20,113 $19,632 $18,913 $17,705 $17,034 
Sales1,900 1,965 1,708 2,098 2,258 
Redemptions(2,254)(1,498)(996)(1,121)(1,486)
Net flows(354)467 712 977 772 
Change in market value and other (870)14 7 231 (101)
Ending balance$18,889 $20,113 $19,632 $18,913 $17,705 
Multi-Strategy Investments Funds [1]
Beginning balance$23,610 $22,925 $23,039 $22,170 $22,645 
Sales722 656 621 629 738 
Redemptions(826)(711)(706)(718)(1,751)
Net flows(104)(55)(85)(89)(1,013)
Change in market value and other (903)740 (29)958 538 
Ending balance$22,603 $23,610 $22,925 $23,039 $22,170 
Exchange-Traded Funds ("ETF") AUM
Beginning balance$3,206 $3,129 $3,111 $2,923 $2,825 
Net flows143 44 (13)86 4 
Change in market value and other(138)33 31 102 94 
Ending balance$3,211 $3,206 $3,129 $3,111 $2,923 
Mutual Fund and ETF AUM
Beginning balance$142,632 $137,286 $138,511 $130,254 $124,627 
Sales - mutual fund9,478 7,461 7,086 8,654 9,198 
Redemptions - mutual fund(10,045)(7,147)(6,778)(6,300)(8,428)
Net flows - ETF143 44 (13)86 4 
Net flows - mutual fund and ETF(424)358 295 2,440 774 
Change in market value and other (8,223)4,988 (1,520)5,817 4,853 
Ending balance
133,985 142,632 137,286 138,511 130,254 
Talcott Resolution life and annuity separate account AUM [2]14,061 15,263 14,800 15,282 14,944 
Hartford Funds AUM$148,046 $157,895 $152,086 $153,793 $145,198 
[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.
24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS 
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Fee income [1]$13 $12 $12 $14 $12 
Other revenue (loss) [2]1 — — (2)(8)
Net investment income3 16 2 3 3 
Net realized gains (losses)(16)3 3 61 6 
Total revenues1 31 17 76 13 
Benefits, losses and loss adjustment expenses [3]2 3 1 2 1 
Insurance operating costs and other expenses [1]13 15 17 45 13 
Interest expense62 62 58 57 57 
Restructuring and other costs5 2 (12)— 11 
Total expenses82 82 64 104 82 
Loss before income taxes(81)(51)(47)(28)(69)
Income tax benefit(22)(14)(15)(7)(11)
Net loss(59)(37)(32)(21)(58)
Preferred stock dividends5 5 6 5 5 
Net loss available to common stockholders(64)(42)(38)(26)(63)
Adjustments to reconcile net loss available to common stockholders to core losses:
Net realized losses (gains), excluded from core earnings, before tax15 — (2)(62)(6)
Integration and other non-recurring M&A costs, before tax — — 2 30 — 
Restructuring and other costs, before tax5 2 (12)— 11 
Income tax expense (benefit) [4](4)(1)3 6 (2)
Core losses$(48)$(41)$(47)$(52)$(60)
[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 three months ended March 31, 2021 included $8 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]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.


25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$275 $270 $269 $273 $279 
Tax-exempt56 60 63 65 70 
Total fixed maturities331 330 332 338 349 
Equity securities12 30 23 10 10 
Mortgage loans50 48 45 45 43 
Limited partnerships and other alternative investments [2]126 170 259 191 112 
Other [3]9 15 11 18 14 
Subtotal528 593 670 602 528 
Investment expense(19)(20)(20)(21)(19)
Total net investment income$509 $573 $650 $581 $509 
Annualized investment yield, before tax [4]3.6 %4.1 %4.8 %4.4 %3.8 %
Annualized limited partnerships and other alternative investment yield, before tax [4]14.6 %22.1 %39.6 %32.5 %21.1 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*2.9 %3.1 %3.0 %3.1 %3.1 %
Annualized investment yield, net of tax [4]2.9 %3.4 %3.9 %3.6 %3.1 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*2.4 %2.5 %2.5 %2.5 %2.6 %
Average reinvestment rate [5]3.3 %2.9 %2.6 %2.5 %2.3 %
Average sales/maturities yield [6]3.0 %3.3 %3.1 %2.9 %2.9 %
Portfolio duration (in years) [7]4.4 4.3 4.5 4.6 4.8 
[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 agreement 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 pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.
[7]Excludes certain short-term investments.
26
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$207 $202 $200 $203 $207 
Tax-exempt41 44 47 49 52 
Total fixed maturities248 246 247 252 259 
Equity securities9 11 18 8 7 
Mortgage loans36 35 31 32 30 
Limited partnerships and other alternative investments [2]97 137 198 151 84 
Other [3]6 13 8 15 12 
Subtotal396 442 502 458 392 
Investment expense(14)(15)(15)(16)(14)
Total net investment income$382 $427 $487 $442 $378 
Annualized investment yield, before tax [4]3.7 %4.2 %4.8 %4.5 %3.9 %
Annualized limited partnerships and other alternative investment yield, before tax [4]14.1 %22.0 %37.3 %31.4 %19.2 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]2.9 %3.0 %3.0 %3.1 %3.2 %
Annualized investment yield, net of tax [4]3.0 %3.4 %4.0 %3.7 %3.2 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.4 %2.5 %2.5 %2.6 %2.6 %
Average reinvestment rate [5]3.2 %2.8 %2.6 %2.5 %2.3 %
Average sales/maturities yield [6]2.9 %3.1 %3.0 %2.9 %2.8 %
Portfolio duration (in years) [7]4.3 4.3 4.5 4.5 4.7 
Footnotes [1] through [7] are explained on page 26.
27
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDED
 Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$67 $67 $69 $69 $71 
Tax-exempt13 14 14 15 16 
Total fixed maturities80 81 83 84 87 
Equity securities2 3 4 1 2 
Mortgage loans14 13 14 13 13 
Limited partnerships and other alternative investments [2]29 33 61 40 28 
Other [3]3 3 2 3 2 
Subtotal128 133 164 141 132 
Investment expense(5)(5)(5)(5)(5)
Total net investment income$123 $128 $159 $136 $127 
Annualized investment yield, before tax [4]4.2 %4.4 %5.4 %4.7 %4.4 %
Annualized limited partnerships and other alternative investment yield, before tax [4]16.7 %22.3 %49.7 %37.1 %29.8 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.4 %3.4 %3.5 %3.5 %3.5 %
Annualized investment yield, net of tax [4]3.4 %3.5 %4.4 %3.8 %3.5 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.8 %2.8 %2.8 %2.8 %2.9 %
Average reinvestment rate [5]3.6 %3.1 %2.9 %2.7 %2.8 %
Average sales/maturities yield [6]3.3 %3.7 %3.5 %3.4 %3.3 %
Portfolio duration (in years) [7]5.2 5.4 5.6 5.7 5.8 
Footnotes [1] through [7] are explained on page 26.
28
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDED
Net Investment Income by SegmentMar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Investment Income
Commercial Lines$333 $372 $421 $382 $327 
Personal Lines33 38 44 40 35 
P&C Other Operations16 17 22 20 16 
Total Property & Casualty382 427 487 442 378 
Group Benefits123 128 159 136 127 
Hartford Funds1 2 2 — 1 
Corporate3 16 2 3 3 
Total net investment income by segment$509 $573 $650 $581 $509 
THREE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative InvestmentsMar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Total Property & Casualty$97 $137 $198 $151 $84 
Group Benefits29 33 61 40 28 
Total net investment income from limited partnerships and other alternative investments [1]$126 $170 $259 $191 $112 
[1]Amounts are included above in total net investment income by segment.

29
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Realized Gains (Losses)
Gross gains on sales of fixed maturities
$23 $157 $63 $68 $31 
Gross losses on sales of fixed maturities
(95)(35)(8)(15)(31)
Equity securities [1](107)93 3 88 43 
Net credit losses on fixed maturities, AFS(12)— — — 4 
Change in ACL on mortgage loans(2)(3)(2)10 4 
Intent-to-sell impairments(3)— — — — 
Other net gains (losses) [2]51 — 14 (4)29 
 Total net realized gains (losses)(145)212 70 147 80 
Net realized gains, included in core earnings, before tax(1)— (2)1 (3)
Total net gains (losses) excluded from core earnings, before tax(146)212 68 148 77 
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings29 (46)(14)(32)(15)
Total net realized gains (losses) excluded from core earnings, after tax$(117)$166 $54 $116 $62 
[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of 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.
30
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
 Amount [1]PercentAmount [1]PercentAmountPercentAmountPercentAmount [1]Percent
Total investments$55,951 100.0 %$57,749 100.0 %$57,574 100.0 %$56,787 100.0 %$55,727 100.0 %
Asset-backed securities$942 2.4 %$1,135 2.7 %$1,207 2.7 %$1,321 3.0 %$1,435 3.2 %
Collateralized loan obligations2,971 7.4 %3,025 7.1 %3,011 6.9 %3,100 7.0 %3,049 7.0 %
Commercial mortgage-backed securities3,722 9.3 %4,119 9.6 %4,191 9.5 %4,095 9.3 %4,167 9.5 %
Corporate17,618 43.8 %18,707 43.6 %18,861 43.0 %19,161 43.5 %19,495 44.8 %
Foreign government/government agencies784 1.9 %910 2.1 %953 2.2 %873 2.0 %868 2.0 %
Municipal [2]7,594 18.8 %8,257 19.3 %8,878 20.2 %9,161 20.8 %9,214 21.1 %
Residential mortgage-backed securities3,936 9.8 %3,643 8.5 %3,286 7.4 %3,520 8.0 %4,025 9.3 %
U.S. Treasuries2,666 6.6 %3,051 7.1 %3,555 8.1 %2,792 6.4 %1,354 3.1 %
Total fixed maturities, AFS [3]$40,233 100.0 %$42,847 100.0 %$43,942 100.0 %$44,023 100.0 %$43,607 100.0 %
U.S. government/government agencies$5,426 13.5 %$5,881 13.7 %$6,640 15.1 %$6,031 13.7 %$4,837 11.1 %
AAA5,728 14.2 %6,133 14.3 %6,183 14.1 %6,350 14.4 %6,759 15.5 %
AA7,324 18.2 %7,718 18.0 %7,794 17.7 %8,030 18.2 %8,327 19.1 %
A10,300 25.6 %10,962 25.6 %11,068 25.2 %11,175 25.4 %11,109 25.5 %
BBB9,060 22.5 %9,708 22.7 %9,895 22.5 %10,145 23.1 %10,359 23.7 %
BB1,799 4.5 %1,811 4.2 %1,769 4.0 %1,724 3.9 %1,604 3.7 %
B560 1.4 %599 1.4 %550 1.3 %521 1.2 %557 1.3 %
CCC27 0.1 %30 0.1 %38 0.1 %41 0.1 %47 0.1 %
CC & below9 — %5 — %5 — %6 — %8 — %
Total fixed maturities, AFS [3]$40,233 100.0 %$42,847 100.0 %$43,942 100.0 %$44,023 100.0 %$43,607 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Primarily comprised of $5.7 billion in Property & Casualty, $1.7 billion in Group Benefits, and $0.2 billion in Corporate as of March 31, 2022.
[3]Fixed maturities, at fair value using the fair value option are not included.
31
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
MARCH 31, 2022
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$5,526 $5,430 9.7 %
Technology and communications2,986 2,990 5.3 %
Consumer non-cyclical2,562 2,532 4.5 %
Utilities1,997 1,978 3.5 %
Energy [1]1,429 1,435 2.6 %
Capital goods1,436 1,427 2.5 %
Consumer cyclical1,343 1,317 2.4 %
Basic industry839 824 1.5 %
Transportation736 719 1.3 %
Other887 876 1.6 %
Total$19,741 $19,528 34.9 %
Top Ten Exposures by Issuer [2]
Apple Inc.$290 $298 0.5 %
Government of Canada234 232 0.4 %
Goldman Sachs Group Inc.209 201 0.4 %
IBM Corporation191 195 0.4 %
Bank of America Corporation189 187 0.3 %
Mitsubishi UFJ Financial Group178 177 0.3 %
Comcast Corporation168 176 0.3 %
JPMorgan Chase & Company182 174 0.3 %
Morgan Stanley169 170 0.3 %
Citigroup Inc.165 164 0.3 %
Total$1,975 $1,974 3.5 %
[1]Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of, or exposures to, energy-related companies.
[2]Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exchange-traded mutual funds, structured securities, limited partnerships and other alternative investments, and exposures resulting from derivative transactions.

32

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
APPENDIX
BASIS OF PRESENTATION AND DEFINITIONS
All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.
The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.
Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 85% of the Company's asbestos and environmental exposures.
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 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 for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include policies in-force, net new business premium, gross new business premium, policy count retention, and renewal written price increases. 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. Renewal written price increases for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed. 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. Net new business premium represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium. Gross new business premium represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium. For global specialty, gross new business premium is used by management, as it is thought to be more indicative of new business growth trends, in part because global specialty includes the Global Re assumed reinsurance book of business.
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, uses 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.
33

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized gains and losses - Some 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 including the full benefit from retroactive reinsurance in 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 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
34
BASIC EARNINGS PER SHARE
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Income available to common stockholders per share
$1.32 $2.14 $1.38 $2.54 $0.68 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax
0.44 (0.63)(0.20)(0.42)(0.21)
Restructuring and other costs, before tax0.02 0.01 (0.03)— 0.03 
Integration and other non-recurring M&A costs, before tax
0.02 0.01 0.02 0.10 0.03 
Change in deferred gain on retroactive reinsurance, before tax
— 0.51 0.08 0.11 0.02 
Income tax expense (benefit) on items excluded from core earnings
(0.11)0.02 0.03 0.03 0.02 
Core earnings per share$1.69 $2.06 $1.28 $2.36 $0.57 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net Income available to common stockholders per diluted share$1.30 $2.10 $1.36 $2.51 $0.67 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax0.43 (0.61)(0.19)(0.41)(0.21)
Restructuring and other costs, before tax0.01 0.01 (0.03)— 0.03 
Integration and other non-recurring M&A costs, before tax
0.01 0.01 0.02 0.10 0.02 
Change in deferred gain on retroactive reinsurance, before tax
— 0.50 0.08 0.11 0.02 
Income tax expense (benefit) on items excluded from core earnings
(0.09)0.01 0.02 0.02 0.03 
Core earnings per diluted share
$1.66 $2.02 $1.26 $2.33 $0.56 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:
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LAST TWELVE MONTHS ENDED
 
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income ROE15.4 %13.1 %12.3 %12.3 %10.5 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains), excluded from core earnings, before tax(1.7 %)(2.8 %)(2.3 %)(1.9 %)(1.8 %)
Restructuring and other costs, before tax— %— %0.1 %0.7 %0.7 %
Integration and other non-recurring M&A costs, before tax
0.3 %0.3 %0.4 %0.4 %0.3 %
Change in deferred gain on retroactive reinsurance, before tax1.5 %1.4 %1.6 %1.6 %1.8 %
Income tax expense (benefit) on items not included in core earnings(0.1 %)0.2 %(0.1 %)(0.3 %)(0.3 %)
Impact of AOCI, excluded from denominator of core earnings ROE(0.6 %)0.5 %0.5 %0.3 %(0.3 %)
Core earnings ROE14.8 %12.7 %12.5 %13.1 %10.9 %
Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity, excluding AOCI to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 4.
Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in shareholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)-This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income$468 $662 $430 $704 $251 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(382)(427)(487)(442)(378)
Net realized losses (gains)104 (136)(57)(56)(53)
Net servicing and other expense (income)2 (3)(2)(6)(2)
Income tax expense 116 160 99 155 55 
Underwriting gain (loss)308 256 (17)355 (127)
Current accident year catastrophes98 22 300 128 214 
Prior accident year development(36)29 90 (149)229 
Underlying underwriting gain$370 $307 $373 $334 $316 
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COMMERCIAL LINES
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income$383 $702 $357 $569 $129 
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income (1)(2)(2)(7)(2)
Net investment income(333)(372)(421)(382)(327)
Net realized losses (gains)91 (118)(51)(47)(44)
Other expense 7 3 5 6 4 
Income tax expense95 174 82 122 24 
Underwriting gain (loss)242 387 (30)261 (216)
Current accident year catastrophes81 6 222 93 175 
Prior accident year development(33)(114)122 (105)238 
Underlying underwriting gain (loss)$290 $279 $314 $249 $197 
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PERSONAL LINES
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income$77 $81 $51 $118 $135 
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income(4)(4)(6)(5)(4)
Net investment income(33)(38)(44)(40)(35)
Net realized losses (gains)9 (12)(4)(6)(7)
Other expense (income)— (1)1 — — 
Income tax expense20 19 12 29 35 
Underwriting gain 69 45 10 96 124 
Current accident year catastrophes17 16 78 35 39 
Prior accident year development(3)(31)(27)(44)(42)
Underlying underwriting gain$83 $30 $61 $87 $121 
P&C OTHER OPERATIONS
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income (loss)$8 $(121)$22 $17 $(13)
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income(16)(17)(22)(20)(16)
Net realized losses (gains)4 (6)(2)(3)(2)
Other income— 1 — — — 
Income tax expense (benefit)1 (33)5 4 (4)
Underwriting loss(3)(176)3 (2)(35)
Prior accident year development— 174 (5)— 33 
Underlying underwriting loss$(3)$(2)$(2)$(2)$(2)
Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.
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Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income margin(0.4)%2.6 %1.8 %10.7 %0.6 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains) excluded from core earnings, before tax1.0 %(4.3)%(0.9)%(1.7)%(1.1)%
Integration and other non-recurring M&A costs, before tax0.1 %0.1 %0.1 %0.1 %0.1 %
Income tax expense (benefit)(0.2)%0.8 %0.2 %0.4 %0.2 %
Core earnings margin0.5 %(0.8)%1.2 %9.5 %(0.2)%
Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Return on Assets ("ROA") 11.2 15.8 14.4 13.8 13.1 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax2.4 (0.8)0.8 (0.5)(0.5)
Effect of income tax expense (benefit)(0.3)0.3 (0.2)0.3 — 
Return on Assets ("ROA"), core earnings 13.3 15.3 15.0 13.6 12.6 

39

Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Total net investment income$509 $573 $650 $581 $509 
Adjustment for loss (income) from limited partnerships and other alternative investments(126)(170)(259)(191)(112)
Net investment income excluding limited partnerships and other alternative investments$383 $403 $391 $390 $397 
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Total net investment income$382 $427 $487 $442 $378 
Adjustment for loss (income) from limited partnerships and other alternative investments(97)(137)(198)(151)(84)
Net investment income excluding limited partnerships and other alternative investments$285 $290 $289 $291 $294 
GROUP BENEFITS
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Total net investment income$123 $128 $159 $136 $127 
Adjustment for loss (income) from limited partnerships and other alternative investments(29)(33)(61)(40)(28)
Net investment income excluding limited partnerships and other alternative investments$94 $95 $98 $96 $99 
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Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, 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
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Annualized investment yield3.6 %4.1 %4.8 %4.4 %3.8 %
Adjustment for loss (income) from limited partnerships and other alternative investments(0.7)%(1.0)%(1.8)%(1.3)%(0.7)%
Annualized investment yield excluding limited partnerships and other alternative investments2.9 %3.1 %3.0 %3.1 %3.1 %
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Annualized investment yield3.7 %4.2 %4.8 %4.5 %3.9 %
Adjustment for loss (income) from limited partnerships and other alternative investments(0.8)%(1.2)%(1.8)%(1.4)%(0.7)%
Annualized investment yield excluding limited partnerships and other alternative investments2.9 %3.0 %3.0 %3.1 %3.2 %
GROUP BENEFITS
THREE MONTHS ENDED
Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Annualized investment yield4.2 %4.4 %5.4 %4.7 %4.4 %
Adjustment for loss (income) from limited partnerships and other alternative investments(0.8)%(1.0)%(1.9)%(1.2)%(0.9)%
Annualized investment yield excluding limited partnerships and other alternative investments3.4 %3.4 %3.5 %3.5 %3.5 %
41