Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.

Over 95% of the Company’s revenues are generated in the United States (“U.S.”). The remaining revenues are generated in the U.K. and other international locations.

We report our results of operations consistent with the manner in which our chief operating decision maker ("CODM") reviews the business to assess performance, make operating decisions and allocate resources. The Company’s reporting segments, as well as the Corporate category, are as follows:

Commercial Lines

Commercial Lines provides a variety of insurance products and risk management services in the U.S. and internationally, with insurance coverages including workers’ compensation, property, automobile, general liability, umbrella, package business, professional liability, bond, marine, livestock, accident and health, and assumed reinsurance.

Personal Lines

Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. This agreement provides an important competitive advantage given the size of the 50 plus population and the

strength of the AARP brand, and is in place through December 31, 2032.

Property & Casualty Other Operations

Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental ("A&E") exposures.

Group Benefits

Group Benefits provides employers and associations with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Hartford Funds

Hartford Funds offers investment products for retail and retirement accounts and provides investment management, distribution and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support third-party life and annuity separate accounts.

Corporate

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. Interest expense of $199, $213 and $234, on debt for the years ended December 31, 2023, 2022 and 2021, respectively, is included in the Corporate category for segment reporting. Corporate also includes investment management fees and expenses related to managing third party assets. Talcott Resolution Life, Inc. is the holding company of the life and annuity business that we sold in May 2018. Up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution"). Refer to Note 5 - Investments for additional information.

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net income is unaffected by such transactions.

Revenues

	For the years ended December 31,
	2023		2022		2021
Earned premiums and fee income:
Commercial Lines
Workers’ compensation	$	3,670	$	3,499	$	3,172
General liability	1,977		1,836		1,622
Marine	256		235		228
Package business	2,076		1,844		1,665
Property	1,053		845		829
Professional liability	787		737		655
Bond	321		303		287
Assumed reinsurance	615		467		328
Automobile	927		844		789
Total Commercial Lines	11,682		10,610		9,575
Personal Lines
Automobile	2,156		2,047		2,059
Homeowners	961		932		927
Total Personal Lines [1]	3,117		2,979		2,986
Property & Casualty Other Operations	—		—		—
Group Benefits
Group disability	3,530		3,310		2,983
Group life	2,583		2,393		2,388
Other	402		354		316
Total Group Benefits	6,515		6,057		5,687
Hartford Funds
Mutual fund and ETF	900		964		1,094
Third-party life and annuity separate accounts [2]	73		80		95
Total Hartford Funds	973		1,044		1,189
Corporate	39		49		50
Total earned premiums and fee income	22,326		20,739		19,487
Total net investment income	2,305		2,177		2,313
Net realized gains (losses)	(188)		(627)		509
Other revenues	84		73		81
Total revenues	$	24,527	$	22,362	$	22,390

[1]For 2023, 2022 and 2021, AARP members accounted for earned premiums of $2.9 billion, $2.7 billion and $2.7 billion, respectively.

[2]Represents revenues earned for investment advisory services on third party life and annuity separate account AUM by the Company's Hartford Funds segment.

Net Income (Loss)

	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	2,085	$	1,624	$	1,757
Personal Lines	(39)		91		385
Property & Casualty Other Operations	(130)		(190)		(95)
Group Benefits	535		327		256
Hartford Funds	174		162		217
Corporate	(121)		(195)		(149)
Net income	2,504		1,819		2,371
Preferred stock dividends	21		21		21
Net income available to common stockholders	$	2,483	$	1,798	$	2,350

Net Investment Income

	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	1,532	$	1,415	$	1,502
Personal Lines	171		140		157
Property & Casualty Other Operations	69		63		75
Group Benefits	469		524		550
Hartford Funds	17		9		5
Corporate	47		26		24
Net investment income	$	2,305	$	2,177	$	2,313

Amortization of DAC

	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	1,779	$	1,563	$	1,398
Personal Lines	231		228		230
Group Benefits	34		33		40
Total amortization of DAC	$	2,044	$	1,824	$	1,668

Amortization of Other Intangible Assets

	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	29	$	29	$	29
Personal Lines	2		2		2
Group Benefits	40		40		40
Total amortization of other intangible assets	$	71	$	71	$	71

Income Tax Expense (Benefit)

	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	502	$	426	$	402
Personal Lines	(15)		22		95
Property & Casualty Other Operations	(36)		(52)		(28)
Group Benefits	133		75		56
Hartford Funds	45		41		56
Corporate	(45)		(69)		(47)
Total income tax expense	$	584	$	443	$	534

Assets

	As of December 31,
	2023		2022
Commercial Lines	$	49,711	$	47,234
Personal Lines	5,579		5,130
Property & Casualty Other Operations	4,235		3,897
Group Benefits	13,697		13,278
Hartford Funds	684		635
Corporate	2,874		2,834
Total assets	$	76,780	$	73,008

Non-Insurance Revenue from Contracts with Customers

		For the years ended December 31,
	Revenue Line Item	2023		2022		2021
Commercial Lines
Installment billing fees	Fee income	$	41	$	39	$	34
Personal Lines
Installment billing fees	Fee income	30		30		32
Insurance servicing revenues	Other revenues	81		73		80
Group Benefits
Administrative services	Fee income	217		187		183
Hartford Funds
Advisory, servicing and distribution fees	Fee income	973		1,044		1,189
Corporate
Investment management and other fees	Fee income	39		49		50
Other	Other revenues	1		1		1
Total non-insurance revenues with customers		$	1,382	$	1,423	$	1,569