HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - HARTFORD FINANCIAL SERVICES GROUP, INC.	d387360d8k.htm
EX-99.1 - EX-99.1 - HARTFORD FINANCIAL SERVICES GROUP, INC.	d387360dex991.htm

Exhibit 99.2

LOGO

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2012

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Address:

One Hartford Plaza

Hartford, CT 06155

Internet address:

http://www.thehartford.com

Contacts:

Sabra Purtill

Senior Vice President

Investor Relations

Phone (860) 547-8691

Margaret Mann

Program Assistant

Investor Relations

Phone (860) 547-3800

As of July 26, 2012


	A.M. Best	Fitch	Standard & Poor’s	Moody’s
*Insurance Financial Strength Ratings:*
Hartford Fire Insurance Company	A	A+	A	A2
Hartford Life Insurance Company	A	A-	A-	A3
Hartford Life and Accident Insurance Company	A	A-	A-	A3
Hartford Life and Annuity Insurance Company	A	A-	BBB+	A3
*Other Ratings:*
The Hartford Financial Services Group, Inc.:
Senior debt	bbb+	BBB	BBB	Baa3
Commercial paper	AMB-2	F2	A-2	P-3

TRANSFER AGENT

The Bank of New York Mellon

BNY Mellon Shareowner Services

480 Washington Boulevard

Jersey City, NJ 07310

1 (877) 272-7740

COMMON STOCK

Common stock of The Hartford Financial Services Group, Inc. is traded on the New York Stock Exchange under the symbol “HIG”.

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 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


Basis of Presentation			i, ii, iii

CONSOLIDATED
Consolidated Financial Results			1
Operating Results by Segment			2
Consolidated Statements of Operations			3
Consolidating Balance Sheets			4
Capital Structure			5
Statutory Surplus to GAAP Stockholders’ Equity Reconciliation			6
Accumulated Other Comprehensive Loss			7
Computation of Basic and Diluted Earnings (Losses) Per Common Share			8
Analysis of Net Realized Capital Gains (Losses) After-tax and DAC			9
Computation of Return-on-Equity Measures			10

COMMERCIAL MARKETS
Income Statements			11
Property & Casualty Commercial
Operating Results			12
Underwriting Results			13
Supplemental Data			14
Group Benefits
Income Statements			15
Supplemental Data			16

CONSUMER MARKETS
Income Statements			17
Operating Results			18
Underwriting Results			19
Written and Earned Premiums			20

WEALTH MANAGEMENT
Operating Results			21
Financial Highlights Excluding Impact of Unlock			22
Deferred Policy Acquisition Costs and Present Value of Future Profits			23
Individual Life
Income Statements			24
Supplemental Data			25
Account Value Rollforward			26
Retirement Plans
Income Statements			27
Supplemental Data
Assets Under Management			28
Account Value and Asset Rollforward			29
Mutual Funds
Income Statements			30
Supplemental Data
Deposits and Assets Under Management			31
Asset Rollforward			32

RUNOFF OPERATIONS
Financial Highlights			33
Life Other Operations
Supplemental Data			34
U.S. Annuity - Account Value Rollforward			35
International Annuity - Account Value Rollforward			36
Deferred Policy Acquisition Costs and Present Value of Future Profits			37
Annuity Death and Income Benefits			38

CORPORATE
Income Statements			39

INVESTMENTS
Investment Earnings Before-tax
Consolidated			40
Life			41
Property & Casualty			42
Composition of Invested Assets
Consolidated			43
Life			44
Property & Casualty			45
Unrealized Loss Aging			46
Invested Asset Exposures
As of June 30, 2012			47

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

•	All amounts are in millions, except for per share and ratio information unless otherwise stated.

•

On March 21, 2012, the Company announced the completion of an evaluation of its businesses and strategy. As a result of this review, which was conducted by the Company’s management and Board of Directors over the past several quarters, the Company announced that it will focus on its Property and Casualty, Group Benefits and Mutual Fund businesses, place its Individual Annuity business into runoff and pursue sales or other strategic alternatives for the Individual Life, Woodbury Financial Services and Retirement Plans businesses. Starting in the second quarter of 2012, financial results for the Individual Annuity segment, which consists of U.S. variable, fixed and fixed indexed annuities, will be reported in the Life Other Operations segment. The Company is organized into four divisions: Commercial Markets, Consumer Markets, Wealth Management and Runoff Operations and currently conducts business principally in nine reporting segments, as well as the Corporate category

•

The Commercial Markets division consists of the reporting segments of Property & Casualty Commercial and Group Benefits. Property & Casualty Commercial provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages, primarily throughout the United States (“U.S.”), along with a variety of customized insurance products and risk management services including professional liability, fidelity, surety, and specialty casualty coverages. Group Benefits provides employers, associations, affinity groups and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits and group retiree health.

•

Consumer Markets provides standard automobile, homeowners and home-based business coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Consumer Markets also operates a member contact center for health insurance products offered through the AARP Health program.

•

The Wealth Management division includes the reporting segments of Individual Life, Retirement Plans and Mutual Funds. Individual Life sells a variety of life insurance products, including variable universal life, universal life, and term life. Retirement Plans provides products and services to corporations pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) and products and services to municipalities and not-for-profit organizations under Sections 457 and 403(b) of the Code, collectively referred to as government plans. Mutual Funds offers retail mutual funds, investment-only mutual funds and college savings plans under Section 529 of the Code (collectively referred to as non-proprietary) and proprietary mutual funds supporting insurance products issued by The Hartford.

•

The Runoff Operations division includes the reporting segments of Life Other Operations and Property & Casualty Other Operations. Life Other Operations includes U.S. Annuity, International Annuity, Institutional Annuity, and Private Placement Life Insurance, previously reported in Wealth Management.

•

The Hartford includes in Corporate the Company’s debt financing and related interest expense, as well as other capital raising activities; banking operations; certain fee inome and commissions expenses associated with sales of non-proprietary products by broker-dealer subsidiaries; and certain purchase accounting adjustments and other charges not allocated to the segments.

•

The balance sheet and certain balance sheet measures incorporated herein are presented in the statutory legal entity views for Life and Property & Casualty. Life consists of the Wealth Management division, Life Other Operations, Group Benefits and an Other category. Property & Casualty consists of the of Property & Casualty Commercial, Property & Casualty Other Operations and the Consumer Markets Division. Corporate primarily includes the Company’s debt financing and related interest expense, as well as other capital raising, banking operations and certain purchase accounting adjustment activities.

•

Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in The Hartford’s business. These measures include sales, deposits, net flows, account value, insurance in-force and premium retention. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period.

•

The Hartford, 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 (amortization of deferred policy acquisition costs, as well as other underwriting expenses) to earned premiums. 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 and expenses for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses to earned premiums.

•

The Hartford, along with others in the life insurance industry, uses underwriting ratios as measures of the Group Benefits segment’s performance. The loss ratio is the ratio of total benefits, losses and loss adjustment expenses, excluding buyouts, to total premiums and other considerations excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses to total premiums and other considerations excluding buyout premiums.

•

Accumulated other comprehensive income (“AOCI”) represents net of tax unrealized gain (loss) on available-for-sale securities, other than temporary impairment losses recognized in AOCI, net gain (loss) on cash-flow hedging instruments, foreign currency translation adjustments and pension and other postretirement adjustments.

•	Mutual fund assets are an internal measure of assets under management used by the Company because a portion of revenues are based upon asset levels. Mutual funds assets are not included on the balance sheet.

•	Return on assets (“ROA”) is calculated using annualized earnings divided by a two-point average of assets under management.

•

Assets under management (“AUM”) include account values and mutual funds assets. AUM is a measure used by the Company because a significant portion of the Company's revenues are based upon asset values. These revenues increase or decrease with a rise or fall in the amount of account value whether caused by changes in capital markets or through net flows.

•

Assets under administration (“AUA”) represents the client asset base of the Company’s recordkeeping business for which revenues are predominately based on the number of plan participants. Unlike assets under management, increases or decreases in assets under administration do not have a direct corresponding increase or decrease to the Company's revenues.

•

Yields are calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, and consolidated variable interest entity non-controlling interests.

•	NM—Not meaningful means increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

BASIS OF PRESENTATION (CONTINUED)

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

•

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

•

The Hartford uses the non-GAAP financial measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that the measure 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 realized capital gains and losses, discontinued operations and loss on extinguishment of debt. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax and the effects of deferred policy acquisition costs (“DAC”)) that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives and net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Core earnings is also used by management to assess our operating performance and is one of the measures considered in determining incentive compensation for the Company’s managers. Net income is the most directly comparable GAAP measure. Core earnings should not be considered as a substitute for net income and does not reflect the overall profitability of the Company's business. Therefore, The Hartford believes that it is useful for investors to evaluate both net income and core earnings when reviewing the Company’s performance. A reconciliation of net income to core earnings for the periods presented herein is set forth on page 2.

•

Core earnings per share is calculated based on the non-GAAP financial measure core earnings. The Hartford believes that the measure core earnings per share provides investors with a valuable measure of the Company's operating performance for many of the same reasons applicable to its underlying measure, core earnings. Net income per share is the most directly comparable GAAP measure. Core earnings per share should not be considered as a substitute for net income per share and does not reflect the overall profitability of the Company's business. Therefore, The Hartford believes that it is useful for investors to evaluate both net income per share and core earnings per share when reviewing our performance. A reconciliation of net income per share to core earnings per share for the periods presented herein is set forth on page 8.

•

Written premiums is a statutory accounting financial measure used by The Hartford as an important indicator of the operating performance of the Company’s Property & Casualty Commercial and Consumer Markets operations. Because written premiums represents the amount of premium charged for policies issued, net of reinsurance, during a fiscal period, The Hartford believes it is useful to investors because it reflects current trends in The Hartford's sale of property and casualty insurance products. Earned premiums, the most directly comparable GAAP measure, represents all premiums that are recognized as revenues during a fiscal period. The difference between written premiums and earned premiums is attributable to the change in unearned premium reserves. A reconciliation of written premiums to earned premiums for Property & Casualty Commercial and Consumer Markets is set forth at pages 12 and 18, respectively.

•

The Hartford’s management evaluates profitability of the Property & Casualty Commercial and Consumer Markets segments primarily on the basis of underwriting results. Underwriting results is a before-tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income is the most directly comparable GAAP measure Underwriting results are influenced significantly by earned premium growth and the adequacy of The Hartford’s pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses. The Hartford believes that underwriting results provides investors with a valuable measure of before-tax profitability derived from underwriting activities, which are managed separately from the Company's investing activities. A reconciliation of underwriting results to net income for Property & Casualty Commercial and Consumer Markets is set forth at pages 12 and 18, respectively.

•

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

•

ROA, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings,excluding discontinued operations and the impact of the DAC unlock, is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, segment operating performance. ROA is the most directly comparable U.S. GAAP measure. The Hartford believes that the measure ROA, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, excluding discontinued operations and the impact of the DAC unlock, provides investors with a valuable measure of the performance of the Company’s on-going businesses because it reveals trends in our businesses that may be obscured by the effect of including net realized gains (losses), net of tax and DAC, excluded from core earnings,the effect of including discontinued operations and the effect of including the DAC unlock. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to insurance aspects of our businesses. Accordingly, these non-GAAP measures exclude 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 capital gains and losses are integrally related to our insurance operations, so ROA, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings,excluding discontinued operations, and the impact of the DAC unlock should include net realized gains and losses on net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the statement of operations such as net investment income. ROA, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings,excluding discontinued operations, and the impact of the DAC unlock should not be considered as a substitute for ROA and does not reflect the overall profitability of our businesses. Therefore, the Company believes it is important for investors to evaluate both ROA, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings,excluding discontinued operations, and excluding the impact of the DAC unlock and ROA when reviewing the Company’s performance.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

BASIS OF PRESENTATION (CONTINUED)

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

•

After-tax margin, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, segment operating performance. After-tax margin is the most directly comparable U.S. GAAP measure. The Hartford believes that the measure after-tax margin, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, provides investors with a valuable measure of the performance of the Company’s on-going businesses because it reveals trends in our businesses that may be obscured by the effect of including certain realized gains (losses). Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to insurance aspects of our businesses. Accordingly, these non-GAAP measures exclude 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 capital gains and losses are integrally related to our insurance operations, so after-tax margin, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, should include net realized gains and losses on net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the statement of operations such as net investment income. After-tax margin, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, should not be considered as a substitute for after-tax margin and does not reflect the overall profitability of our businesses. Therefore, the Company believes it is important for investors to evaluate both after-tax margin, excluding net realized gains (losses), net of tax and DAC, excluded from core earnings, and after-tax margin when reviewing the Company’s performance.

•

Book value per common share excluding AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) common stockholders' equity, excluding AOCI, net of tax, by (b) common shares outstanding. The Hartford provides book value per common share excluding AOCI to enable investors to analyze the amount of the Company’s net worth that is primarily attributable to the Company’s business operations. The Hartford believes book value per common share, excluding AOCI, is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per common share is the most directly comparable GAAP measure. A reconciliation of book value per common share to book value per common share, excluding AOCI, for the periods presented herein is set forth at page 1.

•

Book value per diluted share, excluding AOCI, is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) total stockholders’ equity, excluding AOCI, net of tax, by (b) common shares outstanding and dilutive potential common shares. The Hartford provides book value per diluted share excluding AOCI to enable investors to analyze the amount of the Company’s net worth that is primarily attributable to the Company’s business operations. The Hartford believes book value per diluted share, excluding AOCI, is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable GAAP measure. A reconciliation of book value per diluted share to book value per diluted share, excluding AOCI, for the periods presented herein is set forth at page 1.

•

The Hartford provides different measures of the return on common equity (“ROE”) of the Company. ROE (core earnings last twelve months to common equity, excluding AOCI), is calculated based on non-GAAP financial measures. ROE (core earnings last twelve months to common equity, excluding AOCI) is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders’ equity, excluding AOCI. When calculating ROE, the Mandatory Convertible preferred stock (“MCP”) is included in average common stockholders’ equity and MCP dividends are added back to net income (loss) available to common shareholders and core earnings (losses) available to common shareholders. The Hartford provides to investors return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above. The Hartford excludes AOCI in the calculation of these return-on-equity measures 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. ROE (net income last twelve months to common equity, including AOCI) is the most directly comparable GAAP measure. A reconciliation of the non-GAAP return-on-equity measures for the periods presented herein to ROE (net income last twelve months to common equity, including AOCI) is set forth at page 10.

iii

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
HIGHLIGHTS
Net income (loss) [1]	$	33		$	60		$	118		$	96		$	(101	)		NM			NM		$	534		$	(5	)		NM
Core earnings	$	14		$	50		$	339		$	612		$	119			NM			(81	%)	$	588		$	731			24	%

Total revenues [2]	$	5,401		$	4,520		$	5,638		$	7,661		$	4,574			(15	%)		(40	%)	$	11,701		$	12,235			5	%
Total assets	$	315,957		$	304,188		$	302,609		$	310,548		$	304,142			(4	%)		(2	%)

PER SHARE AND SHARES DATA [3]
Basic earnings (losses) per common share
Net income (loss) available to common shareholders	$	0.05		$	0.11		$	0.24		$	0.20		$	(0.26	)		NM			NM		$	1.15		$	(0.06	)		NM
Core earnings available to common shareholders	$	0.01		$	0.09		$	0.74		$	1.37		$	0.25			NM			(82	%)	$	1.27		$	1.62			27	%
Diluted earnings (losses) per common share
Net income (loss) available to common shareholders	$	0.05		$	0.11		$	0.23		$	0.18		$	(0.26	)		NM			NM		$	1.06		$	(0.06	)		NM
Core earnings available to common shareholders	$	0.01		$	0.08		$	0.69		$	1.25		$	0.23			NM			(82	%)	$	1.16		$	1.50			29	%
Weighted average common shares outstanding (basic)		445.1			445.3			445.1			440.7			438.2			(6.9	) sh		(2.5	) sh		444.9			439.4			(5.5	) sh
Weighted average common shares outstanding and dilutive potential common shares (diluted)		482.4			473.4			489.6			489.9			464.8			(17.6	) sh		(25.1	) sh		505.6			487.9			(17.7	) sh
Common shares outstanding		445.3			445.5			442.5			440.9			435.6			(9.7	) sh		(5.3	) sh		445.3			435.6			(9.7	) sh
Book value per common share	$	44.02		$	46.70		$	47.30		$	46.99		$	49.14			12	%		5	%
Per common share impact of AOCI	$	(0.06	)	$	2.59		$	2.83		$	3.01		$	5.18			NM			72	%
Book value per common share (excluding AOCI)	$	44.08		$	44.11		$	44.47		$	43.98		$	43.96			—			—
Book value per diluted share	$	40.09		$	43.81		$	44.31		$	43.25		$	45.59			14	%		5	%
Per diluted share impact of AOCI	$	(0.05	)	$	2.37		$	2.58		$	2.70		$	4.68			NM			73	%
Book value per diluted share (excluding AOCI)	$	40.14		$	41.44		$	41.73		$	40.55		$	40.91			2	%		1	%
Common shares outstanding and dilutive potential common shares		502.8			487.6			484.9			491.9			481.7			(21.1	) sh		(10.2	) sh

FINANCIAL RATIOS
ROE (net income last 12 months to common stockholder equity including AOCI) [4]		9.8	%		5.9	%		3.5	%		1.5	%		0.8	%		(9.0	)		(0.7	)
ROE (core earnings last 12 months to common stockholder equity excluding AOCI) [4]		9.6	%		6.0	%		4.9	%		5.1	%		5.6	%		(4.0	)		0.5
Debt to capitalization, including AOCI		24.7	%		23.6	%		22.4	%		22.6	%		24.5	%		(0.2	)		1.9
Annualized investment yield, after-tax		3.1	%		2.9	%		2.8	%		3.0	%		3.0	%		(0.1	)		—			3.1	%		3.0	%		(0.1	)

[1]

Includes a loss on extinguishment of debt of $587, after-tax, recognized in the second quarter of 2012 related to the repurchase of all outstanding 10% fixed-to-floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz. The loss consisted of the premium associated with repurchasing the 10% Debentures at an amount greater than the face amount, the write-off of the unamortized discount and debt issuance costs related to the 10% Debentures and other costs related to the repurchase transaction.

[2]

Total revenues of The Hartford are impacted by net investment income and mark-to-market effects of equity securities, trading, supporting the international variable annuity business, which have corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses. See page 3 for the impact to total revenues along with the corresponding amounts in benefits, losses and loss adjustment expenses in the three months ended June 30, 2011, September 30, 2011,December 31, 2011,March 31, 2012 and June 30, 2012, respectively.

[3]	See page 8 for computation of basic and diluted earnings (losses) per common share.

[4]	See page 10 for a computation of ROE measures.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

(A reconciliation of core earnings (losses) to net income (loss) for each of the segments is set forth on the respective segment pages contained in this supplement.)


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Property & Casualty Commercial	$	96		$	87		$	29		$	162		$	160			67	%		(1	%)	$	273		$	322			18	%
Group Benefits		30			20			17			5			34			13	%		NM			49			39			(20	%)

Commercial Markets core earnings		126			107			46			167			194			54	%		16	%		322			361			12	%

Consumer Markets core earnings (losses)		(177	)		(10	)		85			102			(48	)		73	%		NM			(66	)		54			NM
Individual Life		41			(20	)		36			26			25			(39	%)		(4	%)		77			51			(34	%)
Retirement Plans		11			(20	)		—			12			5			(55	%)		(58	%)		22			17			(23	%)
Mutual Funds		27			24			20			20			18			(33	%)		(10	%)		54			38			(30	%)

Wealth Management core earnings (losses)		79			(16	)		56			58			48			(39	%)		(17	%)		153			106			(31	%)

ONGOING OPERATIONS		28			81			187			327			194			NM			(41	%)		409			521			27	%

Life Other Operations		236			43			206			373			37			(84	%)		(90	%)		485			410			(15	%)
P&C Other Operations		(167	)		9			16			20			(14	)		92	%		NM			(144	)		6			NM

Runoff Operations core earnings (losses)		69			52			222			393			23			(67	%)		(94	%)		341			416			22	%

Corporate core losses		(83	)		(83	)		(70	)		(108	)		(98	)		(18	%)		9	%		(162	)		(206	)		(27	%)

CONSOLIDATED
Core earnings		14			50			339			612			119			NM			(81	%)		588			731			24	%
Add: Income (loss) from discontinued operations		(80	)		3			1			(1	)		(1	)		99	%		—			82			(2	)		NM
Add: Loss on extinguishment of debt, net of tax		—			—			—			—			(587	)		—			—			—			(587	)		—
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [1]		99			7			(222	)		(515	)		368			NM			NM			(136	)		(147	)		(8	%)

Net income (loss)	$	33		$	60		$	118		$	96		$	(101	)		NM			NM		$	534		$	(5	)		NM

PER SHARE DATA [2]
Diluted earnings (losses) per common share
Core earnings available to common shareholders	$	0.01		$	0.08		$	0.69		$	1.25		$	0.23			NM			(82	%)	$	1.16		$	1.50			29	%
Net income (loss) available to common shareholders	$	0.05		$	0.11		$	0.23		$	0.18		$	(0.26	)		NM			NM		$	1.06		$	(0.06	)		NM

DAC UNLOCK IMPACT ON CORE EARNINGS BY SEGMENT
Individual Life		(1	)		(57	)		2			(8	)		1			NM			NM			(3	)		(7	)		(133	%)
Retirement Plans		(2	)		(24	)		(1	)		8			(3	)		(50	%)		NM			—			5			—
Life Other Operations		(14	)		(126	)		44			192			(125	)		NM			NM			42			67			60	%

DAC unlock impact on core earnings		(17	)		(207	)		45			192			(127	)		NM			NM			39			65			67	%
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		(49	)		(262	)		(40	)		22			(19	)		61	%		NM			(48	)		3			NM

DAC unlock impact on net income (loss)	$	(66	)	$	(469	)	$	5		$	214		$	(146	)		(121	%)		NM		$	(9	)	$	68			NM

[1]	Includes those net realized capital gains (losses) excluded from core earnings. See page 9 for further analysis.

[2]	See page 8 for the reconciliation of net income per common share to core earnings per common share.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Earned premiums	$	3,545		$	3,518		$	3,506		$	3,442		$	3,400			(4	%)		(1	%)	$	7,064		$	6,842			(3	%)
Fee income		1,219			1,192			1,130			1,134			1,114			(9	%)		(2	%)		2,428			2,248			(7	%)
Net investment income (loss):
Securities available-for-sale and other		1,104			1,062			998			1,070			1,097			(1	%)		3	%		2,212			2,167			(2	%)
Equity securities, trading [1]		(597	)		(1,890	)		325			2,866			(1,687	)		(183	%)		NM			206			1,179			NM

Total net investment income (loss)		507			(828	)		1,323			3,936			(590	)		NM			NM			2,418			3,346			38	%
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses		(31	)		(71	)		(42	)		(36	)		(106	)		NM			(194	%)		(150	)		(142	)		5	%
OTTI losses recognized in other comprehensive income		8			11			6			7			8			—			14	%		72			15			(79	%)

Net OTTI losses recognized in earnings		(23	)		(60	)		(36	)		(29	)		(98	)		NM			NM			(78	)		(127	)		(63	%)
Net realized capital gains (losses), excluding OTTI losses recognized in earnings		92			635			(350	)		(881	)		687			NM			NM			(256	)		(194	)		24	%

Total net realized capital gains (losses)		69			575			(386	)		(910	)		589			NM			NM			(334	)		(321	)		4	%
Other revenues		61			63			65			59			61			—			3	%		125			120			(4	%)

Total revenues		5,401			4,520			5,638			7,661			4,574			(15	%)		(40	%)		11,701			12,235			5	%

Benefits, losses and loss adjustment expenses		3,976			4,006			3,465			3,038			3,621			(9	%)		19	%		7,154			6,659			(7	%)
Benefits, losses and loss adjustment expenses—returns credited on international variable annuities [1]		(597	)		(1,889	)		324			2,864			(1,686	)		(182	%)		NM			206			1,178			NM
Amortization of deferred policy acquisition costs and present value of future profits		592			1,005			397			321			554			(6	%)		73	%		1,042			875			(16	%)
Insurance operating costs and other expenses		1,452			1,273			1,206			1,303			1,261			(13	%)		(3	%)		2,806			2,564			(9	%)
Loss on extinguishment of debt		—			—			—			—			910			—			—			—			910			—
Interest expense		128			128			124			124			115			(10	%)		(7	%)		256			239			(7	%)
Goodwill impairment		—			—			30			—			—			—			—			—			—			—
Restructuring and other costs		—			14			11			9			48			—			NM			—			57			—

Total benefits and expenses		5,551			4,537			5,557			7,659			4,823			(13	%)		(37	%)		11,464			12,482			9	%

Income (loss) from continuing operations before income taxes		(150	)		(17	)		81			2			(249	)		(66	%)		NM			237			(247	)		NM

Income tax expense (benefit)		(263	)		(74	)		(36	)		(95	)		(149	)		43	%		(57	%)		(215	)		(244	)		(13	%)

Income (loss) from continuing operations, net of tax		113			57			117			97			(100	)		NM			NM			452			(3	)		NM

Income (loss) from discontinued operations, net of tax		(80	)		3			1			(1	)		(1	)		99	%		—			82			(2	)		NM

Net income (loss)		33			60			118			96			(101	)		NM			NM			534			(5	)		NM

Less: Income (loss) from discontinued operations, net of tax		(80	)		3			1			(1	)		(1	)		99	%		—			82			(2	)		NM
Less: Loss on extinguishment of debt, net of tax		—			—			—			—			(587	)		—			—			—			(587	)		—
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		99			7			(222	)		(515	)		368			NM			NM			(136	)		(147	)		(8	%)

Core earnings	$	14		$	50		$	339		$	612		$	119			NM			(81	%)	$	588		$	731			24	%

[1]	Includes investment income and mark-to-market effects of equity securities, trading, supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

AS OF DECEMBER 31, 2011 AND JUNE 30, 2012


	LIFE [1]								PROPERTY & CASUALTY [1]							CORPORATE [1]									CONSOLIDATED
	Dec. 31, 2011		Jun. 30, 2012			Change			Dec. 31, 2011		Jun. 30, 2012		Change			Dec. 31, 2011			Jun. 30, 2012			Change			Dec. 31, 2011		Jun. 30, 2012		Change
Investments																														—
Fixed maturities, available-for-sale, at fair value	$	55,633	$	58,891			6	%	$	26,023	$	26,222		1	%	$	153		$	114			(25	%)	$	81,809	$	85,227		4	%
Fixed maturities, at fair value using the fair value option		1,317		1,154			(12	%)		11		11		—			—			—			—			1,328		1,165		(12	%)
Equity securities, trading, at fair value		30,499		29,215			(4	%)		—		—		—			—			—			—			30,499		29,215		(4	%)
Equity securities, available-for-sale, at fair value		515		446			(13	%)		302		295		(2	%)		104			110			6	%		921		851		(8	%)
Mortgage loans		4,979		5,817			17	%		749		1,058		41	%		—			—			—			5,728		6,875		20	%
Policy loans, at outstanding balance		2,001		1,956			(2	%)		—		—		—			—			—			—			2,001		1,956		(2	%)
Limited partnerships and other alternative investments		1,318		1,543			17	%		1,214		1,401		15	%		—			—			—			2,532		2,944		16	%
Other investments		2,244		1,365			(39	%)		121		157		30	%		29			26			(10	%)		2,394		1,548		(35	%)
Short-term investments		5,641		3,549			(37	%)		658		466		(29	%)		1,437			1,139			(21	%)		7,736		5,154		(33	%)

Total investments		104,147		103,936			—			29,078		29,610		2	%		1,723			1,389			(19	%)		134,948		134,935		—
Cash		2,377		2,163			(9	%)		203		175		(14	%)		1			—			(100	%)		2,581		2,338		(9	%)
Premiums receivable and agents’ balances		344		331			(4	%)		3,102		3,206		3	%		—			—			—			3,446		3,537		3	%
Reinsurance recoverables		2,022		2,193			8	%		2,746		2,750		—			—			—			—			4,768		4,943		4	%
Deferred policy acquisition costs and present value of future profits		6,000		5,770			(4	%)		556		566		2	%		—			—			—			6,556		6,336		(3	%)
Deferred income taxes		174		(165	)		NM			800		528		(34	%)		1,157			1,445			25	%		2,131		1,808		(15	%)
Goodwill		470		470			—			119		119		—			417			417			—			1,006		1,006		—
Property and equipment, net		388		369			(5	%)		632		623		(1	%)		9			9			—			1,029		1,001		(3	%)
Other assets		1,070		2,112			97	%		1,205		1,216		1	%		(1	)		83			NM			2,274		3,411		50	%
Separate account assets		143,870		144,662			1	%		—		—		—			—			—			—			143,870		144,662		1	%

Total assets	$	260,862	$	261,841			—		$	38,441	$	38,793		1	%	$	3,306		$	3,343			1	%	$	302,609	$	303,977		—

Future policy benefits, unpaid losses and loss adjustment expenses		19,466		19,445			—			21,550		21,535		—			—			—			—		$	41,016	$	40,980		—
Other policyholder funds and benefits payable		45,612		44,014			(4	%)		—		—		—			—			—			—			45,612		44,014		(4	%)
Other policyholder funds and benefits payable— International variable annuities		30,461		29,174			(4	%)		—		—		—			—			—			—			30,461		29,174		(4	%)
Unearned premiums		182		173			(5	%)		5,041		5,106		1	%		(1	)		(1	)		—			5,222		5,278		1	%
Debt		—		—			—			—		—		—			6,216			7,125			15	%		6,216		7,125		15	%
Consumer notes		314		254			(19	%)		—		—		—			—			—			—			314		254		(19	%)
Other liabilities		5,152		7,373			43	%		1,831		1,656		(10	%)		1,429			1,500			5	%		8,412		10,529		25	%
Separate account liabilities		143,870		144,662			1	%		—		—		—			—			—			—			143,870		144,662		1	%

Total liabilities		245,057		245,095			—			28,422		28,297		—			7,644			8,624			13	%		281,123		282,016		—

Common equity, excluding AOCI		13,943		14,326			3	%		9,393		9,418		—			(3,657	)		(4,595	)		(26	%)		19,679		19,149		(3	%)
Preferred stock		—		—			—			—		—		—			556			556			—			556		556		—
AOCI, net of tax		1,862		2,420			30	%		626		1,078		72	%		(1,237	)		(1,242	)		—			1,251		2,256		80	%

Total stockholders’ equity		15,805		16,746			6	%		10,019		10,496		5	%		(4,338	)		(5,281	)		(22	%)		21,486		21,961		2	%
Total liabilities and equity	$	260,862	$	261,841			—		$	38,441	$	38,793		1	%	$	3,306		$	3,343			1	%	$	302,609	$	303,977		—

[1]	Please refer to the basis of presentation on page i for a description of Life, Property & Casualty and Corporate.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE


																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month
	2011			2011			2011			2012			2012			Change			Change
DEBT
Short-term debt (includes current maturities of long-term debt)	$	400		$	400		$	—		$	—		$	—			(100	%)		—
Senior notes		4,480			4,480			4,481			4,481			6,025			34	%		34	%
Junior subordinated debentures		1,734			1,737			1,735			1,739			1,100			(37	%)		(37	%)

Total debt [1][2]	$	6,614		$	6,617		$	6,216		$	6,220		$	7,125			8	%		15	%

STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI, net of tax	$	19,627		$	19,651		$	19,679		$	19,390		$	19,149			(2	%)		(1	%)
Preferred stock		556			556			556			556			556			—			—
AOCI, net of tax		(25	)		1,155			1,251			1,328			2,256			NM			70	%

Total stockholders’ equity	$	20,158		$	21,362		$	21,486		$	21,274		$	21,961			9	%		3	%

CAPITALIZATION
Total capitalization, including AOCI, net of tax	$	26,772		$	27,979		$	27,702		$	27,494		$	29,086			9	%		6	%

Total capitalization, excluding AOCI, net of tax	$	26,797		$	26,824		$	26,451		$	26,166		$	26,830			—			3	%

DEBT TO CAPITALIZATION RATIOS [2]
Total debt to capitalization, including AOCI		24.7	%		23.6	%		22.4	%		22.6	%		24.5	%		(0.2	)		1.9

Total debt to capitalization, excluding AOCI		24.7	%		24.7	%		23.5	%		23.8	%		26.6	%		1.9			2.8

Total rating agency adjusted debt to capitalization [3] [4]		28.6	%		27.4	%		26.5	%		26.5	%		27.3	%		(1.3	)		0.8

[1]

On April 5, 2012, the Company issued $1.55 billion aggregate principal amount of senior notes and $600 million of junior subordinated debentures. The Company used the proceeds from these debt issuances to repurchase all of the outstanding 10% fixed to floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz SE for $2.125 billion. For additional information on the debt issuance, see Note 14 of the Company's June 30, 2012 10Q.

[2]	The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $368, $349, $314,$310 and $254 as of June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[3]

Reflects a rating agency assignment in the leverage calculation of an estimate of the adjusted unfunded pension liability of the Company’s defined benefit plans and six times the Company's rental expense on operating leases for total adjustments of $1.5 billion, $1.5 billion, $1.6 billion,$1.5 billion and $1.5 billion for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[4]	Reflects 25% equity credit for the junior subordinated debentures and the discount value of the debentures issued in October 2008. Reflects 100% equity credit for the MCP stock.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY SURPLUS TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION


	June 30, 2012			December 31, 2011
P&C U.S. Statutory Net Income [1] [2]	$	528		$	514

Life U.S. Statutory Net Income (Loss) [1] [2] [3]	$	622		$	(1,272	)

P&C U.S. Statutory Capital and Surplus [1]	$	7,732		$	7,412

GAAP Adjustments
Deferred policy acquisition costs		566			556
Benefit reserves		(55	)		(59	)
GAAP unrealized losses on investments, net of tax		1,021			641
Goodwill		119			119
Non-admitted assets		900			1,081
Other, net		213			269

P&C GAAP Stockholders’ Equity	$	10,496		$	10,019


Life U.S. Statutory Capital and Surplus [1]	$	7,666		$	7,388

GAAP Adjustments
Investment in subsidiaries		3,696			3,748
Deferred policy acquisition costs		5,769			6,000
Deferred taxes		(2,074	)		(1,542	)
Benefit reserves		(2,741	)		(2,991	)
Unrealized losses on investments, net of impairments		3,294			2,472
Asset valuation reserve and interest maintenance reserve		987			816
Goodwill		470			470
Other, net		(321	)		(556	)

Life GAAP Stockholders’ Equity	$	16,746		$	15,805

[1]	Please refer to the basis of presentation on page i for a description of Life and Property & Casualty.

[2]	The net income (loss) shown above includes the six months ended June 30, 2012 and the year ended December 31, 2011, respectively.

[3]	Net income (loss) does not include hedging activity recorded directly to surplus.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


	THREE MONTHS ENDED															Year Over Year			Sequential 3 Month Change
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012			3 Month Change			Sequential 3 Month Change
Fixed maturities net unrealized gain	$	324		$	1,313		$	1,599		$	1,793		$	2,507			NM			40	%
Equities net unrealized gain (loss)		7			(68	)		(88	)		(41	)		(8	)		NM			80	%
Other-than-temporary impairment losses recognized in AOCI		(107	)		(97	)		(99	)		(107	)		(94	)		12	%		12	%
Net deferred gain on cash-flow hedging instruments		388			542			516			463			544			40	%		17	%

Total net unrealized gain		612			1,690			1,928			2,108			2,949			NM			40	%
Foreign currency translation adjustments		493			571			574			438			494			—			13	%
Pension and other postretirement adjustment		(1,130	)		(1,106	)		(1,251	)		(1,218	)		(1,187	)		(5	%)		3	%

Total accumulated other comprehensive income (loss)	$	(25	)	$	1,155		$	1,251		$	1,328		$	2,256			NM			70	%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSSES) PER COMMON SHARE


	THREE MONTHS ENDED														SIX MONTHS ENDED
	Jun. 30,			Sept. 30,		Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011		2011			2012			2012			2011			2012
Numerator:
Net income (loss)	$	33		$	60	$	118		$	96		$	(101	)	$	534		$	(5	)
Less: MCP dividends		11			10		11			10			11			21			21

Net income (loss) available to common shareholders		22			50		107			86			(112	)		513			(26	)
Add: Impact of assumed conversion of preferred shares to common [4]		—			—		—			—			—			21			—

Net income (loss) available to common shareholders and assumed conversion of preferred shares		22			50		107			86			(112	)		534			(26	)

Net income (loss) available to common shareholders		22			50		107			86			(112	)		513			(26	)
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [1]		99			7		(222	)		(515	)		368			(136	)		(147	)
Less: Loss on extinguishment of debt, net of tax		—			—		—			—			(587	)		—			(587	)
Less: Income (loss) from discontinued operations		(80	)		3		1			(1	)		(1	)		82			(2	)

Core earnings available to common shareholders		3			40		328			602			108			567			710
Add: Impact of assumed conversion of preferred shares to common [4]		—			—		11			10			—			21			21

Core earnings available to common shareholders and assumed conversion of preferred shares	$	3		$	40	$	339		$	612		$	108		$	588		$	731

Denominator:
Weighted average common shares outstanding (basic)		445.1			445.3		445.1			440.7			438.2			444.9			439.4
Dilutive effect of stock compensation		1.0			0.7		0.7			1.9			1.5			1.4			1.8
Dilutive effect of CPP Warrants [2]		32.9			27.4		23.1			26.4			25.1			33.4			25.7
Dilutive effect of Allianz warrants [3]		3.4			—		—			—			—			5.2			—

Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares		482.4			473.4		468.9			469.0			464.8			484.9			466.9
Dilutive effect of assumed conversion of MCP [4]		—			—		20.7			20.9			—			20.7			21.0

Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares		482.4			473.4		489.6			489.9			464.8			505.6			487.9

Basic earnings (losses) per common share
Net income (loss) available to common shareholders	$	0.05		$	0.11	$	0.24		$	0.20		$	(0.26	)	$	1.15		$	(0.06	)
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.22			0.02		(0.50	)		(1.17	)		0.84			(0.30	)		(0.33	)
Less: Loss on extinguishment of debt, net of tax		—			—		—			—			(1.34	)		—			(1.34	)
Less: Income (loss) from discontinued operations		(0.18	)		—		—			—			(0.01	)		0.18			(0.01	)

Core earnings available to common shareholders	$	0.01		$	0.09	$	0.74		$	1.37		$	0.25		$	1.27		$	1.62

Diluted earnings per common share [5]
Net income (loss) available to common shareholders	$	0.05		$	0.11	$	0.23		$	0.18		$	(0.26	)	$	1.06		$	(0.06	)
Add: Impact of assumed conversion of preferred shares to common [4]		—			—		—			—			—			—			—

Net income (loss) available to common shareholders and assumed conversion of preferred shares	$	0.05		$	0.11	$	0.23		$	0.18		$	(0.26	)	$	1.06		$	(0.06	)

Net income (loss) available to common shareholders	$	0.05		$	0.11	$	0.23		$	0.18		$	(0.26	)	$	1.06		$	(0.06	)
Add: Difference arising from shares used for the denominator between net loss and core earnings		—			—		—			—			0.01			—			0.01
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.20			0.02		(0.47	)		(1.10	)		0.79			(0.28	)		(0.30	)
Less: Loss on extinguishment of debt, net of tax		—			—		—			—			(1.26	)		—			(1.26	)
Less: Income (loss) from discontinued operations		(0.16	)		0.01		—			—			(0.01	)		0.17			(0.01	)

Core earnings available to common shareholders		0.01			0.08		0.70			1.28			0.23			1.17			1.52
Add: Impact of assumed conversion of preferred shares to common [4]		—			—		(0.01	)		(0.03	)		—			(0.01	)		(0.02	)

Core earnings available to common shareholders and assumed conversion of preferred shares		0.01			0.08		0.69			1.25			0.23			1.16			1.50

[1]	See pages 11 and 12 for disclosure of the components of net realized capital gains (losses), net of tax and DAC, for the periods presented herein.

[2]

The Hartford issued 52.1 million warrants to purchase The Hartford Common Stock to the U.S. Department of the Treasury on June 26, 2009 at a strike price of $9.79. The declaration of a quarterly common stock dividend of $0.10 during the third quarter of 2011 triggered a provision in The Hartford’s Warrant Agreement with The Bank of New York Mellon resulting in an adjustment to the warrant exercise price to $9.649 from $9.676.

[3]	The Hartford issued 69.4 million warrants to purchase The Hartford Common Stock to Allianz on October 17, 2008 at a strike price of $25.23. On March 30, 2012, The Hartford repurchased 69.4 million warrants for $300 million as part of the company's existing $500 million equity repurchase program.

[4]

The Hartford issued $575 of mandatory convertible preferred stock which, at June 30, 2011, September 30, 2011, and June 30, 2012 would have been convertible into 20.7 million, 20.8, and 21.0 million weighted average shares of common stock, respectively. However, the impact of applying the "if-converted" method to these shares was anti-dilutive and, therefore, the shares were not included in core earnings available to common shareholders and assumed conversion of preferred shares. Additionally at December 31, 2011 and March 31, 2012, the shares were not included in net income available to common shareholders and assumed conversion of preferred shares. At December 31, 2011 and March 31, 2012, the mandatory convertible preferred stock would have been convertible into 20.7 million and 20.9 million weighted average shares of common stock, respectively.

[5]	As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ANALYSIS OF NET REALIZED CAPITAL GAINS (LOSSES) AFTER-TAX AND DAC


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Net Realized Capital Gains (Losses), After-Tax and DAC

Gains/losses on sales, net	$	174		$	52		$	69		$	112		$	56			(68	%)		(50	%)	$	126		$	168			33	%
Net impairment losses		(14	)		(34	)		(34	)		(16	)		(60	)		NM			NM			(44	)		(76	)		(73	%)
Japanese fixed annuity contract hedges, net		4			5			4			(13	)		1			(75	%)		NM			(7	)		(12	)		(71	%)
Results of variable annuity hedge program
U.S. GMWB derivatives, net		(19	)		(167	)		(74	)		78			(55	)		(189	%)		NM			3			23			NM
U.S. macro hedge		(11	)		24			(29	)		(76	)		(1	)		91	%		99	%		(39	)		(77	)		(97	%)

Total U.S. Program		(30	)		(143	)		(103	)		2			(56	)		(87	%)		NM			(36	)		(54	)		(50	%)
International program		67			621			(98	)		(760	)		508			NM			NM			(85	)		(252	)		(196	%)

Total results of variable annuity hedge program		37			478			(201	)		(758	)		452			NM			NM			(121	)		(306	)		(153	%)
Other net gain (loss) [1]		(52	)		(228	)		(17	)		137			(56	)		(8	%)		NM			(41	)		81			NM

Total net realized capital gains (losses), after-tax and DAC, excluding unlock	$	149		$	273		$	(179	)	$	(538	)	$	393			164	%		NM		$	(87	)	$	(145	)		(67	%)

DAC unlock impacts on net realized gains (losses)		(49	)		(262	)		(40	)		22			(19	)		61	%		NM			(48	)		3			NM

Total net realized captial gains (losses), after-tax and DAC		100			11			(219	)		(516	)		374			NM			NM			(135	)		(142	)		(5	%)

Reconciliation of Net Realized Capital Gains (Losses), net of tax and DAC, excluded from Core Earnings (Losses) to Total Net Realized Capital Gains (Losses) — After-Tax and DAC

Total net realized capital gains (losses)	$	100		$	11		$	(219	)	$	(516	)	$	374			NM			NM		$	(135	)	$	(142	)		(5	%)
Less: total net realized capital gains (losses) included in core earnings (losses)		1			4			3			(1	)		6			NM			NM			1			5			NM

Total net realized capital gains (losses), after tax and DAC, excluded from core earnings (losses)	$	99		$	7		$	(222	)	$	(515	)	$	368			NM			NM		$	(136	)	$	(147	)		(8	%)

[1]	Other net gain (loss) primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPUTATION OF RETURN-ON-EQUITY MEASURES


	THREE MONTHS ENDED
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012
Numerator [1]:
Net income available to common shareholders - last 12 months	$	1,774		$	1,208		$	712		$	307		$	173
Core earnings available to common shareholders - last 12 months	$	1,802		$	1,173		$	977		$	1,015		$	1,120

Denominator [2]:
Average common stockholders’ equity, including AOCI		18,079.0			20,387.0			20,120.0			20,360.5			21,059.5
Less: Average AOCI		(720.6	)		708.2			130.5			295.0			1,115.5

Average common stockholders' equity, excluding AOCI		18,799.6			19,678.8			19,989.5			20,065.5			19,944.0

ROE (net income last 12 months to common stockholders’ equity, including AOCI) [3]		9.8	%		5.9	%		3.5	%		1.5	%		0.8	%
ROE (core earnings last 12 months to common stockholders’ equity, excluding AOCI) [3]		9.6	%		6.0	%		4.9	%		5.1	%		5.6	%

[1]	For a reconciliation of net income to core earnings, see page 8.

[2]	Average equity is calculated by taking the sum of common stockholders' equity at the beginning of the twelve month period and common stockholders' equity at the end of the twelve month period and dividing by 2.

[3]	When calculating return-on-equity, the MCP preferred stock is included in average common stockholders' equity and MCP preferred dividends are added back to net income available to common shareholders and core earnings available to common shareholders.

COMMERCIAL MARKETS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

INCOME STATEMENTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Earned premiums	$	2,579		$	2,553		$	2,554		$	2,514		$	2,502			(3	%)		—		$	5,105		$	5,016			(2	%)
Fee income		14			16			16			15			16			14	%		7	%		30			31			3	%
Net investment income		345			319			311			334			346			—			4	%		691			680			(2	%)
Other revenues		26			28			20			22			26			—			18	%		49			48			(2	%)
Net realized capital gains (losses)		23			(45	)		6			63			(16	)		NM			NM			(14	)		47			NM

Total revenues		2,987			2,871			2,907			2,948			2,874			(4	%)		(3	%)		5,861			5,822			(1	%)

Losses and loss adjustment expenses		1,997			1,983			2,080			1,886			1,847			(8	%)		(2	%)		3,827			3,733			(2	%)
Amortization of deferred policy acquisition costs		239			238			238			239			239			—			—			476			478			—
Insurance operating costs and other expenses		580			567			522			549			541			(7	%)		(1	%)		1,172			1,090			(7	%)
Goodwill impairment		—			—			30			—			—			—			—			—			—			—
Restructuring and other costs		—			—			—			—			4			—			—			—			4			—

Total benefits and expenses		2,816			2,788			2,870			2,674			2,631			(7	%)		(2	%)		5,475			5,305			(3	%)

Income from continuing operations before income taxes		171			83			37			274			243			42	%		(11	%)		386			517			34	%
Income tax expense (benefit) [1]		9			3			(15	)		66			58			NM			(12	%)		50			124			148	%

Income from continuing operations, net of tax		162			80			52			208			185			14	%		(11	%)		336			393			17	%

Income (loss) from discontinued operations, net of tax		(3	)		(2	)		(5	)		(1	)		(1	)		67	%		—			157			(2	)		NM

Net income		159			78			47			207			184			16	%		(11	%)		493			391			(21	%)

Less: Income (loss) from discontinued operations, net of tax		(3	)		(2	)		(5	)		(1	)		(1	)		67	%		—			157			(2	)		NM
Less: Net realized capital gains (losses), after-tax, excluded from core earnings [1]		36			(27	)		6			41			(9	)		NM			NM			14			32			129	%

Core earnings	$	126		$	107		$	46		$	167		$	194			54	%		16	%	$	322		$	361			12	%

[1]	The three months ended June 30, 2011 includes a benefit of $21, related to the release of a tax valuation allowance.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

PROPERTY & CASUALTY COMMERCIAL

OPERATING RESULTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
UNDERWRITING RESULTS
Written premiums		1,498			1,551			1,482			1,687			1,516			1	%		(10	%)		3,143			3,203			2	%
Change in unearned premium reserve		(19	)		(2	)		(77	)		130			(36	)		(89	%)		NM			128			94			(27	%)

Earned premiums		1,517			1,553			1,559			1,557			1,552			2	%		—			3,015			3,109			3	%

Losses and loss adjustment expenses
Current accident year before catastrophes [1]		950			1,085			1,142			1,027			995			5	%		(3	%)		1,912			2,022			6	%
Current accident year catastrophes		166			93			15			32			74			(55	%)		131	%		212			106			(50	%)
Prior accident years [2] [3]		31			(9	)		109			20			19			(39	%)		(5	%)		25			39			56	%

Total losses and loss adjustment expenses		1,147			1,169			1,266			1,079			1,088			(5	%)		1	%		2,149			2,167			1	%

Underwriting expenses [4]		460			453			429			476			466			1	%		(2	%)		922			942			2	%
Dividends to policyholders [5]		4			5			5			(2	)		5			25	%		NM			8			3			(63	%)

Underwriting results		(94	)		(74	)		(141	)		4			(7	)		93	%		NM			(64	)		(3	)		95	%

Net investment income		239			217			212			235			239			—			2	%		481			474			(1	%)
Periodic net coupon settlements on credit derivatives, before-tax		(1	)		(2	)		—			—			—			100	%		—			(3	)		—			100	%
Other expenses		(34	)		(35	)		(29	)		(26	)		(14	)		59	%		46	%		(74	)		(40	)		46	%
Goodwill impairment		—			—			(30	)		—			—			—			—			—			—			—
Restructuring and other costs		—			—			—			—			(4	)		—			—			—			(4	)		—
Income tax (expense) benefit		(14	)		(19	)		17			(51	)		(54	)		NM			(6	%)		(67	)		(105	)		(57	%)

Core earnings		96			87			29			162			160			67	%		(1	%)		273			322			18	%

Add: Net realized capital gains (losses), after-tax		25			(32	)		8			28			(10	)		NM			NM			11			18			64	%

Income from continuing operations, net of tax		121			55			37			190			150			24	%		(21	%)		284			340			20	%

Add: Income (loss) from discontinued operations, net of tax		(3	)		(2	)		(5	)		(1	)		(1	)		67	%		—			157			(2	)		NM

Net income	$	118		$	53		$	32		$	189		$	149			26	%		(21	%)	$	441		$	338			(23	%)

[1]

The three months ended September 30, 2011 included current accident year reserve strengthening of $47 predominantly related to workers compensation business. The three months ended December 31, 2011 included current accident year reserve strengthening of $87 predominantly related to workers compensation business.

[2]	Included within prior accident years development were the following reserve strengthenings (releases):


	THREE MONTHS ENDED															SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011			2011			2012			2012			2011			2012
Auto liability		—			(4	)		1			12			19			(1	)		31
Workers’ compensation		4			7			161			8			43			3			51
Package business		3			(42	)		(30	)		(16	)		(16	)		(4	)		(32	)
General liability		6			(8	)		(44	)		(16	)		(24	)		12			(40	)
Professional liability		2			29			7			9			9			(7	)		18
Discount accretion on workers’ compensation		10			15			6			29			8			17			37
Catastrophes		10			2			5			3			(39	)		5			(36	)
Other reserve re-estimates, net		(4	)		(8	)		3			(9	)		19			—			10

Total prior accident years development		31			(9	)		109			20			19			25			39

[3]	The three months ended June 30, 2012 includes one time reserve releases on certain prior year catastrophes primarily related to 2001 World Trade Center workers’ compensation claims.

[4]	The three months ended December 31, 2011 included taxes, licenses and fees reserve releases of $12.

[5]	The three months ended March 31, 2012 included a decrease in prior year dividends of $8.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

PROPERTY & CASUALTY COMMERCIAL

UNDERWRITING RESULTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
UNDERWRITING RESULTS	$	(94	)	$	(74	)	$	(141	)	$	4		$	(7	)		93	%		NM		$	(64	)	$	(3	)		95	%

UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		62.6			69.9			73.3			66.0			64.1			(1.5	)		1.9			63.4			65.0			(1.6	)
Current accident year catastrophes		11.0			6.0			1.0			2.1			4.8			6.2			(2.7	)		7.0			3.4			3.6
Prior accident years [2]		2.1			(0.6	)		7.0			1.3			1.2			0.9			0.1			0.8			1.3			(0.5	)

Total losses and loss adjustment expenses		75.6			75.3			81.2			69.3			70.1			5.5			(0.8	)		71.3			69.7			1.6

Expenses		30.3			29.2			27.5			30.6			30.0			0.3			0.6			30.6			30.3			0.3
Policyholder dividends		0.3			0.3			0.3			(0.1	)		0.3			—			(0.4	)		0.3			0.1			0.2

Combined ratio		106.2			104.8			109.0			99.7			100.5			5.7			(0.8	)		102.1			100.1			2.0

Catastrophes
Current year		11.0			6.0			1.0			2.1			4.8			6.2			(2.7	)		7.0			3.4			3.6
Prior year		0.7			0.1			0.3			0.2			(2.5	)		3.2			2.7			0.2			(1.2	)		1.4

Catastrophe ratio		11.6			6.1			1.3			2.2			2.3			9.3			(0.1	)		7.2			2.3			4.9

Combined ratio before catastrophes		94.5			98.6			107.8			97.5			98.2			(3.7	)		(0.7	)		94.9			97.8			(2.9	)

Combined ratio before catastrophes and prior year development		93.1			99.4			101.1			96.4			94.5			(1.4	)		1.9			94.2			95.4			(1.2	)

[1]

The three months ended September 30, 2011 included current accident year reserve strengthening of 3.0 points, predominantly related to workers’ compensation business. The three months ended December 31, 2011 included current accident year reserve strengthening of 5.6 points, predominantly related to workers’ compensation business.

[2]	Refer to footnote 2 on page 12 for a summary of reserve strengthenings (releases) that are included within prior accident years development.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

PROPERTY & CASUALTY COMMERCIAL

SUPPLEMENTAL DATA


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
WRITTEN PREMIUMS [1]

Small Commercial	$	725		$	719		$	688		$	815		$	769			6	%		(6	%)	$	1,480		$	1,584			7	%
Middle Market	$	537		$	572		$	569		$	581		$	512			(5	%)		(12	%)	$	1,139		$	1,093			(4	%)

EARNED PREMIUMS [1]

Small Commercial	$	692		$	715		$	719		$	726		$	738			7	%		2	%	$	1,371		$	1,464			7	%
Middle Market	$	576		$	587		$	584		$	577		$	562			(3	%)		(3	%)	$	1,150		$	1,139			(1	%)

SMALL COMMERCIAL
Combined ratio		104.1			96.2			101.1			97.3			94.8			9.3			2.5			97.7			96.1			1.6
Combined ratio before catastrophes		85.1			89.8			99.5			93.1			88.7			(3.6	)		4.4			86.1			90.9			(4.8	)
Combined ratio before catastrophes and prior year development		84.4			92.5			92.9			91.8			87.1			(2.7	)		4.7			86.0			89.4			(3.4	)

MIDDLE MARKET

Combined ratio		105.8			109.4			121.0			98.8			104.1			1.7			(5.3	)		104.9			101.4			3.5
Combined ratio before catastrophes		99.2			101.3			119.2			97.6			102.5			(3.3	)		(4.9	)		100.4			100.0			0.4
Combined ratio before catastrophes and prior year development		98.2			103.7			108.9			99.2			98.4			(0.2	)		0.8			99.5			98.8			0.7

STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)

Renewal Written Price Increases

Small Commercial and Middle Market		3	%		4	%		5	%		7	%		7	%		4	%		—			3	%		7	%		4	%

Policy Count Retention
Small Commercial		83	%		82	%		83	%		84	%		82	%		(1	%)		(2	%)		83	%		83	%		—
Middle Market		79	%		77	%		77	%		79	%		73	%		(6	%)		(6	%)		79	%		76	%		(3	%)

New Business Premium $
Small Commercial	$	146		$	135		$	119		$	145		$	135			(8	%)		(7	%)	$	289		$	280			(3	%)
Middle Market	$	107		$	105		$	86		$	91		$	78			(27	%)		(14	%)	$	232		$	169			(27	%)

Policies in force
Small Commercial		1,165,123			1,172,591			1,170,947			1,179,995			1,188,147			2	%		1	%
Middle Market		85,809			84,421			82,695			81,159			78,676			(8	%)		(3	%)

[1]	The difference between the written premiums and earned premiums is attributable to the change in unearned premium reserve.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

GROUP BENEFITS

INCOME STATEMENTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Earned premiums	$	1,062		$	1,000		$	995		$	957		$	950			(11	%)		(1	%)	$	2,090		$	1,907			(9	%)
Fee income		14			16			16			15			16			14	%		7	%		30			31			3	%
Net investment income		106			102			99			99			107			1	%		8	%		210			206			(2	%)
Net realized capital gains (losses)		10			6			(5	)		20			—			(100	%)		(100	%)		(4	)		20			NM

Total revenues		1,192			1,124			1,105			1,091			1,073			(10	%)		(2	%)		2,326			2,164			(7	%)

Benefits, losses and loss adjustment expenses		850			814			814			807			759			(11	%)		(6	%)		1,678			1,566			(7	%)
Amortization of deferred policy acquisition costs		9			9			8			8			8			(11	%)		—			18			16			(11	%)
Insurance operating costs and other expenses [1]		286			274			270			258			261			(9	%)		1	%		577			519			(10	%)

Total benefits and expenses		1,145			1,097			1,092			1,073			1,028			(10	%)		(4	%)		2,273			2,101			(8	%)

Income from continuing operations before income taxes		47			27			13			18			45			(4	%)		150	%		53			63			19	%

Income tax expense (benefit)		6			2			(2	)		—			10			67	%		—			1			10			NM

Net income		41			25			15			18			35			(15	%)		94	%		52			53			2	%

Less: Net realized capital gains (losses), after-tax, excluded from core earnings		11			5			(2	)		13			1			(91	%)		(92	%)		3			14			NM

Core earnings	$	30		$	20		$	17		$	5		$	34			13	%		NM		$	49		$	39			(20	%)

Earnings margin (After-tax)
Net income		3.6	%		2.2	%		1.4	%		1.7	%		3.3	%		(0.3	)		1.6			2.3	%		2.5	%		0.2
Core earnings		2.6	%		1.8	%		1.5	%		0.5	%		3.2	%		0.6			2.7			2.1	%		1.8	%		(0.3	)

[1]	The six months ended June 30, 2011 includes a one-time payment to a third-party administrator of $8, before-tax.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL MARKETS

GROUP BENEFITS

SUPPLEMENTAL DATA


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
PREMIUMS
Fully Insured — Ongoing Premiums
Group disability	$	452		$	452		$	452		$	428		$	423			(6	%)		(1	%)	$	914		$	851			(7	%)
Group life		512			501			495			476			478			(7	%)		—			1,028			954			(7	%)
Other		49			47			48			50			49			—			(2	%)		99			99			—

Total fully insured — ongoing premiums	$	1,013		$	1,000		$	995		$	954		$	950			(6	%)		—		$	2,041		$	1,904			(7	%)

Total buyouts [1]		49			—			—			3			—			(100	%)		(100	%)		49			3			(94	%)

Total premiums		1,062			1,000			995			957			950			(11	%)		(1	%)		2,090			1,907			(9	%)
Group disability — premium equivalents [2]		107			109			111			110			111			4	%		1	%		212			221			4	%

Total premiums and premium equivalent	$	1,169		$	1,109		$	1,106		$	1,067		$	1,061			(9	%)		(1	%)	$	2,302		$	2,128			(8	%)

SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully Insured — Ongoing Sales
Group disability	$	41		$	36		$	33		$	86		$	27			(34	%)		(69	%)	$	150		$	113			(25	%)
Group life		48			53			40			135			37			(23	%)		(73	%)		176			172			(2	%)
Other		3			2			5			7			2			(33	%)		(71	%)		10			9			(10	%)

Total fully insured — ongoing sales		92			91			78			228			66			(28	%)		(71	%)		336			294			(13	%)

Total buyouts [1]		49			(1	)		—			2			1			(98	%)		(50	%)		49			3			(94	%)

Total sales		141			90			78			230			67			(52	%)		(71	%)		385			297			(23	%)
Group disability premium equivalents [2]		22			23			14			31			3			(86	%)		(90	%)		69			34			(51	%)

Total sales and premium equivalents	$	163		$	113		$	92		$	261		$	70			(57	%)		(73	%)	$	454		$	331			(27	%)

RATIOS [3]
Loss ratio		78.0	%		80.1	%		80.5	%		83.0	%		78.6	%		0.6			(4.4	)		78.7	%		80.8	%		2.1
Expense ratio [4]		28.7	%		27.9	%		27.5	%		27.5	%		27.8	%		(0.9	)		0.3			28.7	%		27.6	%		(1.1	)

GAAP RESERVES [5]
Group disability	$	5,225		$	5,259		$	5,307		$	5,342		$	5,348			2	%		—
Group life		1,210			1,206			1,202			1,174			1,159			(4	%)		(1	%)
Other		75			75			77			75			73			(3	%)		(3	%)

Total GAAP reserves	$	6,510		$	6,540		$	6,586		$	6,591		$	6,580			1	%		—

[1]	Takeover of open claim liabilities and other non-recurring premium amounts.

[2]	ASO fees and claims under claim management agreements.

[3]	Ratios calculated excluding the effects of buyout premiums.

[4]	The six months ended June 30, 2011 includes a one-time payment to a third-party administrator totaling 0.3 points.

[5]	Reserve balances for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012 are net of reinsurance recoverables of $219, $225, $233, $239, and $244, respectively.

CONSUMER MARKETS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

INCOME STATEMENTS


	THREE MONTHS ENDED													Year Over Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,		Mar. 31,		Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011		2012		2012			Change			Change			2011			2012		Change
Earned premiums	$	939		$	930		$	922	$	909	$	904			(4	%)		(1	%)	$	1,895		$	1,813		(4	%)
Net investment income		49			46			42		43		41			(16	%)		(5	%)		99			84		(15	%)
Other revenues		36			35			45		37		35			(3	%)		(5	%)		76			72		(5	%)
Net realized capital gains (losses)		2			(10	)		1		7		(2	)		NM			NM			(2	)		5		NM

Total revenues		1,026			1,001			1,010		996		978			(5	%)		(2	%)		2,068			1,974		(5	%)

Losses and loss adjustment expenses		904			767			616		558		788			(13	%)		41	%		1,503			1,346		(10	%)
Amortization of deferred policy acquisition costs		85			84			83		83		84			(1	%)		1	%		170			167		(2	%)
Insurance operating costs and other expenses [1]		311			180			183		196		187			(40	%)		(5	%)		508			383		(25	%)
Restructuring and other costs		—			—			—		—		1			—			—			—			1		—

Total benefits and expenses		1,300			1,031			882		837		1,060			(18	%)		27	%		2,181			1,897		(13	%)

Income (loss) before income taxes		(274	)		(30	)		128		159		(82	)		70	%		NM			(113	)		77		NM

Income tax expense (benefit)		(102	)		(14	)		41		51		(32	)		69	%		NM			(49	)		19		NM

Net income (loss)		(172	)		(16	)		87		108		(50	)		71	%		NM			(64	)		58		NM

Less: Net realized capital gains (losses), after-tax, excluded from core earnings (losses)		5			(6	)		2		6		(2	)		NM			NM			2			4		100	%

Core earnings (losses)	$	(177	)	$	(10	)	$	85	$	102	$	(48	)		73	%		NM		$	(66	)	$	54		NM

[1]	The three months ended June 30, 2011 includes a charge of $113, before-tax, related to a discontinued software program.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

OPERATING RESULTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
UNDERWRITING RESULTS
Written premiums	$	969		$	964		$	858		$	861		$	950			(2	%)		10	%	$	1,853		$	1,811			(2	%)
Change in unearned premium reserve		30			34			(64	)		(48	)		46			53	%		NM			(42	)		(2	)		95	%

Earned premiums		939			930			922			909			904			(4	%)		(1	%)		1,895			1,813			(4	%)

Losses and loss adjustment expenses
Current accident year before catastrophes		623			663			634			574			595			(4	%)		4	%		1,239			1,169			(6	%)
Current accident year catastrophes		281			113			(1	)		39			216			(23	%)		NM			313			255			(19	%)
Prior accident years [1]		—			(9	)		(17	)		(55	)		(23	)		—			58	%		(49	)		(78	)		(59	%)

Total losses and loss adjustment expenses		904			767			616			558			788			(13	%)		41	%		1,503			1,346			(10	%)

Underwriting expenses		232			225			218			233			230			(1	%)		(1	%)		466			463			(1	%)

Underwriting results		(197	)		(62	)		88			118			(114	)		42	%		NM			(74	)		4			NM

Net investment income		49			46			42			43			41			(16	%)		(5	%)		99			84			(15	%)
Periodic net coupon settlements on credit derivatives, before-tax		(1	)		—			(1	)		(1	)		—			100	%		100	%		(1	)		(1	)		—
Other expenses [2]		(128	)		(4	)		(3	)		(9	)		(5	)		96	%		44	%		(136	)		(14	)		90	%
Restructuring and other costs		—			—			—			—			(1	)		—			—			—			(1	)		—
Income tax (expense) benefit		100			10			(41	)		(49	)		31			(69	%)		NM			46			(18	)		NM

Core earnings (losses)		(177	)		(10	)		85			102			(48	)		73	%		NM			(66	)		54			NM

Add: Net realized capital gains (losses), after-tax		5			(6	)		2			6			(2	)		NM			NM			2			4			100	%

Net income (loss)	$	(172	)	$	(16	)	$	87		$	108		$	(50	)		71	%		NM		$	(64	)	$	58			NM

[1]	Included within prior accident years development were the following reserve strengthenings (releases):


	THREE MONTHS ENDED															SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011			2011			2012			2012			2011			2012
Auto liability	$	(9	)	$	(19	)	$	(10	)	$	(30	)	$	(11	)	$	(64	)	$	(41	)
Homeowners		1			14			(2	)		(5	)		(1	)		(13	)		(6	)
Catastrophes		9			—			(3	)		(14	)		(9	)		28			(23	)
Other reserve re-estimates, net		(1	)		(4	)		(2	)		(6	)		(2	)		—			(8	)

Total prior accident years development	$	—		$	(9	)	$	(17	)	$	(55	)	$	(23	)	$	(49	)	$	(78	)

[2]	The three months ended June 30, 2011 includes a charge of $113, before-tax, related to a discontinued software program.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RESULTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
UNDERWRITING RESULTS	$	(197	)	$	(62	)	$	88		$	118		$	(114	)		42	%		NM			(74	)		4			NM

UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes		66.5			71.3			68.8			63.1			65.8			0.7			(2.7	)		65.4			64.5			0.9
Current accident year catastrophes		29.9			12.2			(0.1	)		4.3			23.9			6.0			(19.6	)		16.5			14.1			2.4
Prior accident years [1]		(0.0	)		(1.0	)		(1.8	)		(6.1	)		(2.5	)		2.5			(3.6	)		(2.6	)		(4.3	)		1.7

Total losses and loss adjustment expenses		96.4			82.5			66.8			61.4			87.2			9.2			(25.8	)		79.4			74.2			5.2

Expenses		24.7			24.2			23.6			25.6			25.4			(0.7	)		0.2			24.7			25.5			(0.8	)

Combined ratio		121.1			106.7			90.5			87.0			112.6			8.5			(25.6	)		104.1			99.8			4.3

Catastrophes
Current year		29.9			12.2			(0.1	)		4.3			23.9			6.0			(19.6	)		16.5			14.1			2.4
Prior year		1.0			—			(0.3	)		(1.5	)		(1.0	)		2.0			(0.5	)		1.5			(1.3	)		2.8

Catastrophe ratio		30.8			12.2			(0.4	)		2.8			22.9			7.9			(20.1	)		18.0			12.8			5.2

Combined ratio before catastrophes		90.2			94.5			90.9			84.3			89.7			0.5			(5.4	)		86.0			87.0			(1.0	)
Combined ratio before catastrophes and prior year development		91.2			95.5			92.4			88.8			91.3			(0.1	)		(2.5	)		90.1			90.0			0.1


PRODUCT
Automobile		98.0			99.4			99.0			88.4			98.8			(0.8	)		(10.4	)		91.5			93.6			(2.1	)
Homeowners		175.0			124.1			72.5			83.8			144.1			30.9			(60.3	)		133.1			113.9			19.2

Total		121.1			106.7			90.5			87.0			112.6			8.5			(25.6	)		104.1			99.8			4.3

[1]	Refer to footnote 1 on page 18 for a summary of reserve strengthenings (releases) that are included within prior accident years development.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

WRITTEN AND EARNED PREMIUMS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
BUSINESS UNIT
WRITTEN PREMIUMS [1]

AARP Direct	$	724		$	717		$	630		$	633		$	710			(2	%)		12	%	$	1,371		$	1,343			(2	%)
AARP Agency		17			19			22			27			32			88	%		19	%		31			59			90	%
Other Agency		216			213			194			186			194			(10	%)		4	%		426			380			(11	%)
Other		12			15			12			15			14			17	%		(7	%)		25			29			16	%

Total	$	969		$	964		$	858		$	861		$	950			(2	%)		10	%	$	1,853		$	1,811			(2	%)

EARNED PREMIUMS [1]

AARP Direct	$	694		$	687		$	685		$	676		$	671			(3	%)		(1	%)	$	1,392		$	1,347			(3	%)
AARP Agency		12			14			16			19			23			92	%		21	%		22			42			91	%
Other Agency		222			215			208			201			195			(12	%)		(3	%)		455			396			(13	%)
Other		11			14			13			13			15			36	%		15	%		26			28			8	%

Total	$	939		$	930		$	922		$	909		$	904			(4	%)		(1	%)	$	1,895		$	1,813			(4	%)

PRODUCT LINE
WRITTEN PREMIUMS [1]

Automobile	$	665		$	657		$	599		$	620		$	649			(2	%)		5	%	$	1,306		$	1,269			(3	%)
Homeowners		304			307			259			241			301			(1	%)		25	%		547			542			(1	%)

Total	$	969		$	964		$	858		$	861		$	950			(2	%)		10	%	$	1,853		$	1,811			(2	%)

EARNED PREMIUMS [1]

Automobile	$	657		$	649		$	641		$	632		$	630			(4	%)		—		$	1,329		$	1,262			(5	%)
Homeowners		282			281			281			277			274			(3	%)		(1	%)		566			551			(3	%)

Total	$	939		$	930		$	922		$	909		$	904			(4	%)		(1	%)	$	1,895		$	1,813			(4	%)


STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)

Renewal Written Price Increases [2]
Automobile		6	%		4	%		3	%		4	%		4	%		(2.0	)		—			6	%		4	%		(2.0	)
Homeowners		9	%		8	%		6	%		6	%		6	%		(3.0	)		—			9	%		6	%		(3.0	)

Policy Count Retention [3]
Automobile		82	%		83	%		83	%		84	%		84	%		2.0			—			82	%		84	%		2.0
Homeowners		84	%		84	%		84	%		85	%		86	%		2.0			1.0			83	%		85	%		2.0

New Business Premium $
Automobile	$	75		$	80		$	77		$	86		$	85			13	%		(1	%)	$	141		$	171			21	%
Homeowners	$	23		$	26		$	23		$	25		$	30			30	%		20	%	$	42		$	55			31	%

Policies in force
Automobile		2,137,351			2,106,385			2,080,535			2,065,317			2,044,874			(4	%)		(1	%)
Homeowners		1,380,301			1,358,162			1,338,676			1,330,117			1,323,557			(4	%)		—

[1]	The difference between written premiums and earned premiums is attributable to the change in unearned premium reserve.

[2]

Renewal written price increases represents the combined effect of rate changes and amount of insurance per unit of exposure since the prior year. It does not include other factors that affect average premium per unit of exposure such as changes in the mix of business by state, territory, class plan and tier of risk.

[3]	Policy count retention represents the ratio of the number of policies renewed during the period divided by the number of policies from the previous policy term period.

WEALTH MANAGEMENT

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

OPERATING RESULTS


	THREE MONTHS ENDED															Year Over Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
REVENUES
Earned premiums [1]	$	(23	)	$	(24	)	$	(27	)	$	(26	)	$	(27	)		(17	%)		(4	%)	$	(44	)	$	(53	)		(20	%)
Fee income [1]		511			514			493			500			489			(4	%)		(2	%)		1,016			989			(3	%)
Net investment income		214			215			211			222			232			8	%		5	%		423			454			7	%
Net realized capital gains (losses)		17			26			16			14			6			(65	%)		(57	%)		(21	)		20			NM

Total revenues		719			731			693			710			700			(3	%)		(1	%)		1,374			1,410			3	%

Benefits and claims, losses and loss adjustment expenses [1]		255			341			274			297			294			15	%		(1	%)		509			591			16	%
Amortization of deferred policy acquisition costs [1]		63			149			46			48			47			(25	%)		(2	%)		107			95			(11	%)
Insurance operating costs and other expenses		294			274			272			290			283			(4	%)		(2	%)		586			573			(2	%)
Restructuring and other costs		—			—			—			—			12			—			—			—			12			—

Total benefits and expenses		612			764			592			635			636			4	%		—			1,202			1,271			6	%

Income (loss) before income taxes		107			(33	)		101			75			64			(40	%)		(15	%)		172			139			(19	%)

Income tax expense (benefit) [1] [2]		7			(25	)		29			18			12			71	%		(33	%)		21			30			43	%

Net income (loss)		100			(8	)		72			57			52			(48	%)		(9	%)		151			109			(28	%)

Less: Net realized capital gains (losses), after-tax, excluded from core earnings [1][3]		21			8			16			(1	)		4			(81	%)		NM			(2	)		3			NM

Core earnings (losses)	$	79		$	(16	)	$	56		$	58		$	48			(39	%)		(17	%)	$	153		$	106			(31	%)

[1]	The DAC unlock recorded in the periods presented below affected each income statement line item as follows:


	THREE MONTHS ENDED															SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011			2011			2012			2012			2011			2012
Fee Income	$	1		$	18		$	13		$	—		$	3		$	1		$	3
Benefits, losses and loss adjustment expense		—			68			(4	)		10			(2	)		—			8
Amortization of deferred policy acquisition costs		7			80			16			(9	)		9			5			—
Income tax expense (benefit)		(2	)		(45	)		(1	)		—			(1	)		(1	)		(1	)

Net income (loss)		(4	)		(85	)		2			(1	)		(3	)		(3	)		(4	)
Less: Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		(1	)		(4	)		1			(1	)		(1	)		—			(2	)

Core earnings (losses)	$	(3	)	$	(81	)	$	1		$	—		$	(2	)	$	(3	)	$	(2	)

[2]	The three months ended June 30, 2011 includes a tax benefit of $7 related to the resolution of a tax matter with the IRS for the computation of dividends received deductions for years 1998, 2000 and 2001.

[3]	The three months ended June 30, 2011 includes a benefit of $16 related to the release of a deferred tax valuation allowance.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

FINANCIAL HIGHLIGHTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
CORE EARNINGS BY SEGMENT

Individual Life		42			37			34			34			24			(43	%)		(29	%)		80			58			(28	%)
Retirement Plans		13			4			1			4			8			(38	%)		100	%		22			12			(45	%)
Mutual Funds		27			24			20			20			18			(33	%)		(10	%)		54			38			(30	%)

Wealth Management core earnings, excluding DAC unlock		82			65			55			58			50			(39	%)		(14	%)		156			108			(31	%)
DAC unlock impacts on net income (loss)		(4	)		(85	)		2			(1	)		(3	)		25	%		NM			(3	)		(4	)		(33	%)
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		22			12			15			—			5			(77	%)		—			(2	)		5			NM

Wealth Management net income (loss)		100			(8	)		72			57			52			(48	%)		(9	%)		151			109			(28	%)

DAC UNLOCK IMPACT ON CORE EARNINGS (LOSSES) BY SEGMENT

Individual Life		(1	)		(57	)		2			(8	)		1			NM			NM			(3	)		(7	)		(133	%)

Retirement Plans		(2	)		(24	)		(1	)		8			(3	)		(50	%)		NM			—			5			—

DAC unlock impact on core earnings (losses)		(3	)		(81	)		1			—			(2	)		33	%		—			(3	)		(2	)		33	%

DAC unlock impact on net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		(1	)		(4	)		1			(1	)		(1	)		—			—			—			(2	)		—

DAC unlock impact on net income (loss)	$	(4	)	$	(85	)	$	2		$	(1	)	$	(3	)		25	%		NM		$	(3	)	$	(4	)		(33	%)

ASSETS UNDER MANAGEMENT BY SEGMENT

Individual Life	$	12,366		$	11,808		$	12,300		$	12,928		$	12,758			3	%		(1	%)

Retirement Plans		55,555			49,685			52,302			57,155			54,898			(1	%)		(4	%)

Non-proprietary Mutual Funds		58,150			47,307			48,768			53,244			49,944			(14	%)		(6	%)

Total assets under management	$	126,071		$	108,800		$	113,370		$	123,327		$	117,600			(7	%)		(5	%)
DEPOSITS BY SEGMENT

Individual Life	$	448		$	512		$	545		$	481		$	429			(4	%)		(11	%)	$	863		$	910			5	%

Retirement Plans		2,069			2,470			2,034			2,606			2,447			18	%		(6	%)		4,932			5,053			2	%

Non-proprietary Mutual Funds		3,872			4,338			2,318			2,744			2,548			(34	%)		(7	%)		8,693			5,292			(39	%)

Total deposits	$	6,389		$	7,320		$	4,897		$	5,831		$	5,424			(15	%)		(7	%)	$	14,488		$	11,255			(22	%)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS (“DAC”)


	Individual Life			Retirement Plans			Mutual Funds			Wealth Management
Balance, December 31, 2011	$	2,002		$	304		$	27		$	2,333
Adjustments to unrealized gains and losses on securities available-for-sale and other		236			44			—			280

Balance, excluding adjustments to unrealized gains and losses on securities available-for-sale and other		2,238			348			27			2,613
Deferred costs		120			27			15			162
Amortization — DAC		(61	)		(16	)		(18	)		(95	)
Amortization — Core unlock benefit (charge), pre-tax		(5	)		8			—			3
Amortization — Non-core unlock benefit (charge), pre-tax		(1	)		(2	)		—			(3	)

Balance, June 30, 2012		2,291			365			24			2,680
Adjustments to unrealized gains and losses on securities available-for-sale and other		(283	)		(77	)		—			(360	)

Balance, June 30, 2012 including adjustments to unrealized gains and losses on securities available-for-sale and other	$	2,008		$	288		$	24		$	2,320

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

INDIVIDUAL LIFE

INCOME STATEMENTS


																Year Over
																Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Fee income [1]	$	237		$	269		$	262		$	255		$	248			5	%		(3	%)	$	470		$	503			7	%
Earned premiums		(25	)		(25	)		(28	)		(28	)		(28	)		(12	%)		—			(49	)		(56	)		(14	%)
Net investment income		115			115			115			122			126			10	%		3	%		226			248			10	%
Net realized capital gains (losses)		6			28			26			(1	)		20			NM			NM			(24	)		19			NM

Total revenues		333			387			375			348			366			10	%		5	%		623			714			15	%

Benefits, losses and loss adjustment expenses [1]		180			260			194			216			211			17	%		(2	%)		362			427			18	%
Amortization of deferred policy acquisition costs [1]		34			87			25			39			28			(18	%)		(28	%)		59			67			14	%
Insurance operating costs and other expenses		67			63			70			70			71			6	%		1	%		128			141			10	%
Restructuring and other costs		—			—			—			—			7			—			—			—			7			—

Total benefits and expenses		281			410			289			325			317			13	%		(2	%)		549			642			17	%

Income (loss) before income taxes		52			(23	)		86			23			49			(6	%)		113	%		74			72			(3	%)

Income tax expense (benefit) [1] [2]		6			(14	)		27			4			13			117	%		NM			10			17			70	%

Net income (loss)		46			(9	)		59			19			36			(22	%)		89	%		64			55			(14	%)

Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings (loss) [1]		5			11			23			(7	)		11			120	%		NM			(13	)		4			NM

Core earnings (losses)	$	41		$	(20	)	$	36		$	26		$	25			(39	%)		(4	%)	$	77		$	51			(34	%)

EARNINGS MARGIN (After-tax)
Net income (loss)		13.8	%		(2.3	%)		15.7	%		5.5	%		9.8	%		(4.0	)		4.3			10.3	%		7.7	%		(2.6	)
Core earnings (losses), excluding impact of DAC unlock		13.0	%		11.0	%		10.0	%		9.8	%		7.1	%		(5.9	)		(2.7	)		12.4	%		8.4	%		(3.9	)

[1]	The DAC unlock recorded in the periods presented below affected each income statement line item as follows:


	THREE MONTHS ENDED															SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011			2011			2012			2012			2011			2012
Fee Income	$	1		$	18		$	13		$	—		$	3		$	1		$	3
Benefits, losses and loss adjustment expense		—			66			(4	)		10			(2	)		—			8
Amortization of deferred policy acquisition costs		3			40			14			1			5			4			6
Income tax expense (benefit)		(1	)		(30	)		—			(3	)		—			(1	)		(3	)

Net income (loss)		(1	)		(58	)		3			(8	)		—			(2	)		(8	)
Less: Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings (losses)		—			(1	)		1			—			(1	)		1			(1	)

Core earnings (losses)		(1	)		(57	)		2			(8	)		1			(3	)		(7	)

[2]	The three months ended June 30, 2011 include a tax benefit of $3 related to the resolution of a tax matter with the IRS for the computation of dividends received deductions for years 1998, 2000 and 2001.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

INDIVIDUAL LIFE

SUPPLEMENTAL DATA


	THREE MONTHS ENDED										Year Over Year 3			Sequential 3			SIX MONTHS ENDED
	Jun. 30,		Sept. 30,		Dec. 31,		Mar. 31,		Jun. 30,		Year Over Year 3			Sequential 3			JUNE 30,
	2011		2011		2011		2012		2012		Month Change			Month Change			2011		2012		Change
SALES BY DISTRIBUTION
National Accounts	$	28	$	29	$	39	$	26	$	22		(21	%)		(15	%)	$	50	$	48		(4	%)
Independent		25		31		36		32		28		12	%		(13	%)		53		60		13	%
Other		3		2		2		3		1		(67	%)		(67	%)		7		4		(43	%)

Total sales by distribution	$	56	$	62	$	77	$	61	$	51		(9	%)		(16	%)	$	110	$	112		2	%

SALES BY PRODUCT
Variable life	$	8	$	6	$	6	$	5	$	4		(50	%)		(20	%)	$	15	$	9		(40	%)
Universal life		43		52		67		52		43		—			(17	%)		86		95		10	%
Term/other life		5		4		4		4		4		(20	%)		—			9		8		(11	%)

Total sales by product	$	56	$	62	$	77	$	61	$	51		(9	%)		(16	%)	$	110	$	112		2	%

PREMIUMS & DEPOSITS
Variable life	$	130	$	134	$	126	$	118	$	111		(15	%)		(6	%)	$	257	$	229		(11	%)
Universal life/other life		318		378		419		363		318		—			(12	%)		606		681		12	%
Term/other		39		43		42		41		41		5	%		—			76		82		8	%

Total Premiums & Deposits	$	487	$	555	$	587	$	522	$	470		(3	%)		(10	%)	$	939	$	992		6	%

ACCOUNT VALUE
General account	$	6,954	$	7,126	$	7,337	$	7,501	$	7,629		10	%		2	%
Separate account		5,412		4,682		4,963		5,427		5,129		(5	%)		(5	%)

Total account value	$	12,366	$	11,808	$	12,300	$	12,928	$	12,758		3	%		(1	%)

ACCOUNT VALUE BY PRODUCT
Variable life	$	5,993	$	5,259	$	5,535	$	5,996	$	5,699		(5	%)		(5	%)
Universal life/other life		6,373		6,549		6,765		6,932		7,059		11	%		2	%

Total account value by product	$	12,366	$	11,808	$	12,300	$	12,928	$	12,758		3	%		(1	%)

LIFE INSURANCE IN-FORCE
Variable life	$	71,977	$	70,926	$	69,716	$	68,642	$	67,514		(6	%)		(2	%)
Universal life		60,759		62,052		64,006		65,400		66,625		10	%		2	%
Term		78,714		80,249		81,494		82,659		83,291		6	%		1	%

Total life insurance in-force	$	211,450	$	213,227	$	215,216	$	216,701	$	217,430		3	%		—

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

INDIVIDUAL LIFE

SUPPLEMENTAL DATA—ACCOUNT VALUE ROLL FORWARD


	THREE MONTHS ENDED
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012
VARIABLE LIFE
Beginning balance	$	6,235		$	5,993		$	5,259		$	5,535		$	5,996
First year & single premiums		16			15			12			9			7
Renewal premiums		114			119			114			109			104

Premiums and deposits		130			134			126			118			111
Surrenders		(102	)		(91	)		(100	)		(108	)		(87	)
Death benefits/annuitizations/other [1]		(17	)		(20	)		(15	)		(16	)		(21	)

Net flows		11			23			11			(6	)		3
Policy Fees		(111	)		(120	)		(109	)		(108	)		(106	)
Change in market value/interest credited		(142	)		(637	)		374			575			(194	)

Ending balance	$	5,993		$	5,259		$	5,535		$	5,996		$	5,699

UNIVERSAL LIFE [1]
Beginning balance	$	6,235		$	6,373		$	6,549		$	6,765		$	6,932
First year & single premiums		165			210			251			198			152
Renewal premiums		153			168			168			165			166

Premiums and deposits		318			378			419			363			318
Surrenders		(36	)		(44	)		(44	)		(39	)		(41	)
Death benefits/annuitizations/other [1]		(29	)		(29	)		(26	)		(32	)		(25	)

Net flows		253			305			349			292			252
Policy Fees		(173	)		(193	)		(194	)		(188	)		(188	)
Change in market value/interest credited		58			64			61			63			63

Ending balance	$	6,373		$	6,549		$	6,765		$	6,932		$	7,059

INDIVIDUAL LIFE
Beginning balance	$	12,470		$	12,366		$	11,808		$	12,300		$	12,928
First year & single premiums		181			225			263			207			159
Renewal premiums		267			287			282			274			270

Premiums and deposits		448			512			545			481			429
Surrenders		(138	)		(135	)		(144	)		(147	)		(128	)
Death benefits/annuitizations/other [1]		(46	)		(49	)		(41	)		(48	)		(46	)

Net flows		264			328			360			286			255
Policy Fees		(284	)		(313	)		(303	)		(296	)		(294	)
Change in market value/interest credited		(84	)		(573	)		435			638			(131	)

Ending balance	$	12,366		$	11,808		$	12,300		$	12,928		$	12,758

[1]	Includes Universal Life, Interest Sensitive Whole Life, Modified Guaranteed Life Insurance and Other.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

RETIREMENT PLANS

INCOME STATEMENTS


															Year Over
	THREE MONTHS ENDED														Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,		Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012		2012			Change			Change			2011			2012			Change
Fee income	$	99		$	92		$	88		$	94	$	93			(6	%)		(1	%)	$	193		$	187			(3	%)
Earned premiums		2			1			1			2		1			(50	%)		(50	%)		5			3			(40	%)
Net investment income		100			100			97			101		106			6	%		5	%		199			207			4	%
Net realized capital gains (losses)		11			(2	)		(10	)		14		(12	)		NM			NM			2			2			—

Total revenues		212			191			176			211		188			(11	%)		(11	%)		399			399			—

Benefits, losses and loss adjustment expenses [1]		75			81			80			81		83			11	%		2	%		147			164			12	%
Amortization of deferred policy acquisition costs [1]		17			50			10			—		10			(41	%)		—			24			10			(58	%)
Insurance operating costs and other expenses		107			106			102			109		104			(3	%)		(5	%)		215			213			(1	%)
Restructuring and other costs		—			—			—			—		4			—			—			—			4			—

Total benefits and expenses		199			237			192			190		201			1	%		6	%		386			391			1	%

Income (loss) before income taxes		13			(46	)		(16	)		21		(13	)		NM			NM			13			8			(38	%)

Income tax expense (benefit) [1] [2]		(14	)		(23	)		(10	)		3		(11	)		21	%		NM			(19	)		(8	)		58	%

Net income (loss)		27			(23	)		(6	)		18		(2	)		NM			NM			32			16			(50	%)

Less: Net realized capital gains (losses), after-tax, excluded from core earnings (loss) [1]		16			(3	)		(6	)		6		(7	)		NM			NM			10			(1	)		NM

Core earnings (losses)	$	11		$	(20	)	$	—		$	12	$	5			(55	%)		(58	%)	$	22		$	17			(23	%)

RETURN ON ASSETS (After-tax bps)
Net income (loss)		19.5			(17.5	)		(4.7	)		13.2		(1.4	)		(20.9	)		(14.6	)		11.8			6.0			(50	%)
Core earnings (losses), excluding impact of DAC unlock		9.4			3.0			0.8			3.0		5.7			(3.7	)		2.7			8.1			4.5			(45	%)

[1]	The DAC unlock recorded in the periods presented below affected each income statement line item as follows:


	THREE MONTHS ENDED															SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			JUNE 30,
	2011			2011			2011			2012			2012			2011			2012
Benefits, losses and loss adjustment expenses	$	—		$	2		$	—		$	—		$	—		$	—		$	—
Amortization of deferred policy acquisition costs		3			40			2			(10	)		4			1			(6	)
Income tax expense (benefit)		—			(15	)		(1	)		3			(1	)		—			2

Net income (loss)		(3	)		(27	)		(1	)		7			(3	)		(1	)		4
Less: Net realized gains (losses), net of tax and DAC, excluded from core earnings		(1	)		(3	)		—			(1	)		—			(1	)		(1	)

Core earnings (losses)		(2	)		(24	)		(1	)		8			(3	)		—			5

[2]	The three months ended June 30, 2011 include a tax benefit of $4 related to the resolution of a tax matter with the IRS for the computation of dividends received deductions for years 1998, 2000 and 2001.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

RETIREMENT PLANS

SUPPLEMENTAL DATA — ASSETS UNDER MANAGEMENT


	Jun. 30, 2011		Sept. 30, 2011		Dec. 31, 2011		Mar. 31, 2012		Jun. 30, 2012		Year 3 Month Change			Sequential 3 Month Change
RETIREMENT PLANS
General account	$	7,638	$	8,042	$	8,374	$	8,644	$	8,913		17	%		3	%
Non-guaranteed separate account		27,443		23,799		25,525		28,459		27,680		1	%		(3	%)

Total Retirement Plans account value	$	35,081	$	31,841	$	33,899	$	37,103	$	36,593		4	%		(1	%)
401(k) mutual funds		20,085		17,488		18,038		19,630		17,881		(11	%)		(9	%)
403(b)/457 mutual funds		389		356		365		422		424		9	%		—

Total Retirement Plans assets under management	$	55,555	$	49,685	$	52,302	$	57,155	$	54,898		(1	%)		(4	%)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

RETIREMENT PLANS

SUPPLEMENTAL DATA—ACCOUNT VALUE AND ASSET ROLL FORWARD


	THREE MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,
	2011			2011			2011			2012			2012
401(k) GROUP ANNUITY ACCOUNT VALUE
Beginning balance	$	21,891		$	21,963		$	19,769		$	21,124		$	23,378
Deposits		1,194			1,425			1,239			1,625			1,464
Surrenders		(1,049	)		(911	)		(1,150	)		(1,099	)		(1,083	)
Death benefits/annuitizations/other		(20	)		(19	)		(17	)		(18	)		(18	)
Transfers [1]		1			11			47			4			19

Net flows		126			506			119			512			382
Change in market value/change in reserve/interest credited		(54	)		(2,700	)		1,236			1,742			(675	)

Ending balance	$	21,963		$	19,769		$	21,124		$	23,378		$	23,085

403(b)/457 GROUP ANNUITY ACCOUNT VALUE
Beginning balance	$	13,133		$	13,118		$	12,072		$	12,775		$	13,725
Deposits		326			330			336			364			321
Surrenders		(347	)		(259	)		(216	)		(246	)		(271	)
Death benefits/annuitizations/other		(12	)		(12	)		(11	)		(11	)		(11	)
Transfers [1]		—			3			2			(3	)		(1	)

Net flows		(33	)		62			111			104			38
Change in market value/change in reserve/interest credited		18			(1,108	)		592			846			(255	)

Ending balance	$	13,118		$	12,072		$	12,775		$	13,725		$	13,508

401(k) /403(b)/457 MUTUAL FUNDS ASSETS
Beginning balance	$	20,324		$	20,474		$	17,844		$	18,403		$	20,052
Reclassification of AUA to AUM		267			—			—			—			—

Deposits		549			715			459			617			662
Surrenders		(814	)		(511	)		(1,127	)		(806	)		(1,688	)
Death benefits/annuitizations/other [1]		(2	)		2			1			(1	)		—
Transfers		(1	)		(14	)		(49	)		(1	)		(19	)

Net flows		(268	)		192			(716	)		(191	)		(1,045	)
Change in market value/change in reserve/interest credited		151			(2,822	)		1,275			1,840			(702	)

Ending balance	$	20,474		$	17,844		$	18,403		$	20,052		$	18,305

TOTAL RETIREMENT
Beginning balance	$	55,348		$	55,555		$	49,685		$	52,302		$	57,155
Reclassification of AUA to AUM		267			—			—			—			—

Deposits		2,069			2,470			2,034			2,606			2,447
Surrenders		(2,210	)		(1,681	)		(2,493	)		(2,151	)		(3,042	)
Death benefits/annuitizations/other [1]		(34	)		(29	)		(27	)		(30	)		(29	)
Transfers		—			—			—			—			(1	)

Net flows		(175	)		760			(486	)		425			(625	)
Change in market value/change in reserve/interest credited		115			(6,630	)		3,103			4,428			(1,632	)

Ending balance	$	55,555		$	49,685		$	52,302		$	57,155		$	54,898

[1]	Includes internal product exchanges, policyholder balance transfers from the accumulation phase to the annuitization phase, and death benefit remaining on deposit.

[2]	Specific plans were identified that required reclassification from AUA to AUM.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

MUTUAL FUNDS

INCOME STATEMENTS


															Year Over
	THREE MONTHS ENDED														Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,		Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011		2011			2012			2012			Change			Change			2011			2012			Change
Fee income	$	175		$	153	$	143		$	151		$	148			(15	%)		(2	%)	$	353		$	299			(15	%)
Net investment income		(1	)		—		(1	)		(1	)		—			100	%		100	%		(2	)		(1	)		50	%
Net realized capital gains (losses)		—			—		—			1			(2	)		—			NM			1			(1	)		NM

Total revenues		174			153		142			151			146			(16	%)		(3	%)		352			297			(16	%)

Amortization of deferred policy acquisition costs		12			12		11			9			9			(25	%)		—			24			18			(25	%)
Insurance operating costs and other expenses		120			105		100			111			108			(10	%)		(3	%)		243			219			(10	%)
Restructuring and other costs		—			—		—			—			1			—			—			—			1			—

Total benefits and expenses		132			117		111			120			118			(11	%)		(2	%)		267			238			(11	%)

Income before income taxes		42			36		31			31			28			(33	%)		(10	%)		85			59			(31	%)
Income tax expense		15			12		12			11			10			(33	%)		(9	%)		30			21			(30	%)

Net income		27			24		19			20			18			(33	%)		(10	%)		55			38			(31	%)

Less: Net realized capital gains (losses), after-tax, excluded from core earnings		—			—		(1	)		—			—			—			—			1			—			(100	%)

Core earnings		27		$	24	$	20		$	20		$	18			(33	%)		(10	%)	$	54		$	38			(30	%)

RETURN ON ASSETS (After-tax bps)
Net income		10.6			10.5		9.0			9.0			8.1			(2.5	)		(0.9	)		11.0			8.9			(2.1	)
Core earnings		10.6			10.5		9.5			9.0			8.1			(2.5	)		(0.9	)		10.8			8.9			(1.9	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

MUTUAL FUNDS

SUPPLEMENTAL DATA


	THREE MONTHS ENDED
	Jun. 30, 2011		Sept. 30, 2011		Dec. 31, 2011		Mar. 31, 2012		Jun. 30, 2012		Year Over Year 3 Month Change			Sequential 3 Month Change
NON-PROPRIETARY MUTUAL FUNDS DEPOSITS
Retail mutual funds		3,131		2,051		1,760		2,140		1,975		(37	%)		(8	%)
Investment only mutual funds [1]		676		2,228		493		534		517		(24	%)		(3	%)
529 college savings plan		65		59		65		70		56		(14	%)		(20	%)

Total Deposits		3,872		4,338		2,318		2,744		2,548		(34	%)		(7	%)

ASSETS UNDER MANAGEMENT
Retail mutual fund assets		49,584		39,258		40,228		43,575		40,942		(17	%)		(6	%)
Investment only mutual fund assets		6,954		6,625		6,983		7,929		7,279		5	%		(8	%)
Proprietary mutual fund assets [2]		42,204		35,494		36,770		39,161		36,287		(14	%)		(7	%)
529 college savings plan assets		1,612		1,424		1,557		1,740		1,723		7	%		(1	%)

Total Mutual Fund Assets		100,354		82,801		85,538		92,405		86,231		(14	%)		(7	%)

[1]	Investment only mutual funds refers to mutual funds offered as defined contribution investments within employee directed retirements plans.

[2]	Include Company-sponsored mutual fund assets that are held in separate accounts supporting variable insurance and investment products.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

WEALTH MANAGEMENT

MUTUAL FUNDS

SUPPLEMENTAL DATA — ASSET ROLL FORWARD


	THREE MONTHS ENDED
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012
NON-PROPRIETARY MUTUAL FUNDS
Beginning balance	$	59,945		$	58,150		$	47,307		$	48,768		$	53,244
Deposits		3,872			4,338			2,318			2,744			2,548
Redemptions		(5,054	)		(6,734	)		(4,112	)		(3,781	)		(3,755	)

Net flows		(1,182	)		(2,396	)		(1,794	)		(1,037	)		(1,207	)
Change in market value/currency/change in reserve/interest credited		(635	)		(8,430	)		3,271			5,533			(2,032	)
Other [1]		22			(17	)		(16	)		(20	)		(61	)

Ending balance	$	58,150		$	47,307		$	48,768		$	53,244		$	49,944

PROPRIETARY MUTUAL FUNDS [2]
Beginning balance	$	44,044		$	42,204		$	35,494		$	36,770		$	39,161
Net flows		(1,604	)		(1,244	)		(1,442	)		(1,372	)		(1,577	)
Change in market value/currency/change in reserve/interest credited		(236	)		(5,466	)		2,718			3,763			(1,297	)

Ending balance	$	42,204		$	35,494		$	36,770		$	39,161		$	36,287

[1]	Includes front end loads on A share products.

[2]	Includes Company-sponsored mutual fund assets that are held in separate accounts supporting variable insurance and investment products.

RUNOFF OPERATIONS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS

FINANCIAL HIGHLIGHTS


	THREE MONTHS ENDED															Year Over Year 3 Month Change			Sequential 3 Month Change			SIX MONTHS ENDED
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012									JUNE 30,
	Jun. 30, 2011			Sept. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012									2011			2012			Change
NET INCOME(LOSS)
U.S. Annuity	$	87		$	(224	)	$	18		$	198		$	(19	)		NM			NM		$	230		$	179			(22	%)
International Annuity		104			376			(44	)		(465	)		402			NM			NM			6			(63	)		NM
Institutional Annuity		58			(53	)		1			52			13			(78	%)		(75	%)		76			65			(14	%)
Private Placement Life Insurance (“PPLI”)		12			6			9			8			10			(17	%)		25	%		22			18			(18	%)

Life Other Operations net income (loss) [1]		261			105			(16	)		(207	)		406			56	%		NM			334			199			(40	%)

Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings — Hedging		37			478			(201	)		(758	)		452			NM			NM			(152	)		(306	)		(101	%)
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings — all other		(12	)		(416	)		(21	)		178			(83	)		NM			NM			1			95			NM

Life Other Operations core earnings	$	236		$	43		$	206		$	373		$	37			(84	%)		(90	%)	$	485		$	410			(15	%)

Property & Casualty Other Operations net income (loss) [2] [3]		(164	)		8			18			27			(15	)		91	%		NM			(143	)		12			NM
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		3			(1	)		2			7			(1	)		NM			NM			1			6			NM

Property & Casualty Other Operations core earnings (losses)	$	(167	)	$	9		$	16		$	20		$	(14	)		92	%		NM		$	(144	)	$	6			NM

Runoff Operations net income (loss)		97			113			2			94			391			NM			NM			191			211			10	%
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings — Hedging		37			478			(201	)		(758	)		452			NM			NM			(152	)		(306	)		(101	%)
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings — all other		(9	)		(417	)		(19	)		185			(84	)		NM			NM			2			101			NM


Runoff Operations core earnings (losses)	$	69		$	52		$	222		$	393		$	23			(67	%)		(94	%)	$	341		$	416			22	%


DAC unlock impact on net income (loss) by segment
U.S. Annuity	$	(52	)	$	(170	)	$	29		$	90		$	(43	)		17	%		NM		$	(9	)	$	47			NM
International Annuity		(11	)		(212	)		(25	)		125			(100	)		NM			NM			3			25			NM
Institutional Annuity		1			(2	)		(1	)		—			—			(100	%)		—			—			—			—

Life Other Operations	$	(62	)	$	(384	)	$	3		$	215		$	(143	)		(131	%)		NM		$	(6	)	$	72			NM

DAC unlock impact on core earnings (losses) by segment
U.S. Annuity	$	(4	)	$	(163	)	$	69		$	88		$	(39	)		NM			NM		$	39		$	49			26	%
International Annuity		(10	)		41			(26	)		104			(86	)		NM			NM			3			18			NM
Institutional Annuity		—			(4	)		1			—			—			—			—			—			—			—

Life Other Operations	$	(14	)	$	(126	)	$	44		$	192		$	(125	)		NM			NM		$	42		$	67			60	%

[1]

The three months ended June 30, 2011 include a tax benefit of $45 related to the resolution of a tax matter with the IRS for the computation of dividends received deductions for years 1998, 2000, and 2001. Additionally, the three months ended June 30, 2011 includes a benefit of $18, after tax, related to the release of reserves associated with the 3 Win product.

[2]

The three months ended June 30, 2011 included net asbestos reserve strengthening of $290, before-tax. The three months ended September 30, 2011 included net environmental reserve strengthening of $19, before-tax. The three months ended June 30, 2012 included net asbestos and environmental reserve strengthening of $48 and $3, before-tax, respectively.

[3]	Additionally, includes prior accident years development reserve strengthenings (releases) for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012 of $(4), $2, $6, $6, and $2 before-tax, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS

LIFE OTHER OPERATIONS

SUPPLEMENTAL DATA


															Year Over
	THREE MONTHS ENDED														Year			Sequential			SIX MONTHS ENDED
	Jun. 30,		Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011		2011			2011			2012			2012			Change			Change			2011		2012			Change
Core earnings (losses), excluding impact of DAC unlock
U.S. Annuity	$	154	$	90		$	92		$	96		$	78			(49	%)		(19	%)	$	262	$	174			(34	%)
International Annuity		79		73			70			74			68			(14	%)		(8	%)		143		142			(1	%)
Institutional Annuity		7		(5	)		(10	)		4			5			(29	%)		25	%		18		9			(50	%)
Private Placement Life Insurance		10		11			10			7			11			10	%		57	%		20		18			(10	%)

Life Other Operations core earnings	$	250	$	169		$	162		$	181		$	162			(35	%)		(10	%)	$	443	$	343			(23	%)

Return on assets (After-tax bps)
U.S. Annuity return on assets
Net income (loss)		37.3		(105.6	)		9.1			96.5			(9.4	)		(46.7	)		(105.9	)		49.3		45.3			(4.0	)
Core earnings, excluding impact of DAC unlock		66.1		42.4			46.3			46.8			38.6			(27.5	)		(8.2	)		56.2		44.0			(12.2	)

International Annuity return on assets
Net income (loss)		110.5		405.1			(48.6	)		(518.0	)		458.4			347.9			976.4			3.2		(35.9	)		(39.1	)
Core earnings, excluding impact of DAC unlock		83.9		78.6			77.3			82.4			77.5			(6.4	)		(4.9	)		75.4		80.9			5.5

Life Other Operations return on assets
Net income (loss)		56.4		23.8			(3.8	)		(48.1	)		95.6			39.3			143.7			36.0		23.6			(12.4	)
Core earnings, excluding impact of DAC unlock		54.0		38.4			38.2			42.0			38.2			(15.8	)		(3.9	)		47.7		40.8			(6.9	)

Account Value
U.S. Variable Annuity	$	79,347	$	66,716		$	68,760		$	72,235		$	66,538			(16	%)		(8	%)
U.S. Fixed Annuity and Other		11,978		11,727			11,631			11,507			11,228			(6	%)		(2	%)

Total U.S. Annuity account value	$	91,325	$	78,443		$	80,391		$	83,742		$	77,766			(15	%)		(7	%)

International Variable Annuity	$	32,981	$	31,438		$	31,162		$	31,392		$	29,831			(10	%)		(5	%)
International Fixed Annuity		4,824		5,013			4,786			4,469			4,461			(8	%)		—

Total International Annuity account value	$	37,805	$	36,451		$	35,948		$	35,861		$	34,292			(9	%)		(4	%)

Institutional Annuity [1]	$	19,230	$	19,477		$	19,330		$	18,622		$	18,233			(5	%)		(2	%)

PPLI	$	36,700	$	35,989		$	36,335		$	36,830		$	36,911			1	%		—

Total Life Other Operations account value [1]	$	183,575	$	168,886		$	170,708		$	173,743		$	165,873			(10	%)		(5	%)

[1]	Included in the Institutional Annuity account value balance is approximately $1.5 billion for the three months ended June 30, 2011 and September 30, 2011 and approximately $1.3 billion for the three months ended December 31, 2011, March 31, 2012 and June 30, 2012.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS

LIFE OTHER OPERATIONS — U.S. ANNUITY

SUPPLEMENTAL DATA — ACCOUNT VALUE ROLL FORWARD


	THREE MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,
	2011			2011			2011			2012			2012
VARIABLE ANNUITIES
Beginning balance	$	82,977		$	79,347		$	66,716		$	68,760		$	72,235
Deposits		227			192			216			307			169
Partial Withdrawals [1]		(888	)		(797	)		(912	)		(815	)		(780	)
Full Surrenders [1]		(2,253	)		(1,648	)		(1,295	)		(1,687	)		(2,251	)
Death benefits/annuitizations/other [2]		(392	)		(344	)		(346	)		(449	)		(397	)
Transfers		(44	)		(45	)		(44	)		3			—

Net flows		(3,350	)		(2,642	)		(2,381	)		(2,641	)		(3,259	)
Change in market value/change in reserve/interest credited		(281	)		(9,989	)		4,425			6,116			(2,439	)
Other [3]		1			—			—			—			1

Ending balance	$	79,347		$	66,716		$	68,760		$	72,235		$	66,538

FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	12,136		$	11,978		$	11,727		$	11,631		$	11,507
Deposits		20			36			42			46			16
Surrenders		(203	)		(301	)		(175	)		(204	)		(298	)
Death benefits/annuitizations/other [2]		(167	)		(165	)		(163	)		(102	)		(106	)
Transfers		68			73			62			1			(4	)

Net flows		(282	)		(357	)		(234	)		(259	)		(392	)
Change in market value/change in reserve/interest credited		124			106			138			136			113
Other		—			—			—			(1	)		—

Ending balance	$	11,978		$	11,727		$	11,631		$	11,507		$	11,228

TOTAL U.S. ANNUITY
Beginning balance	$	95,113		$	91,325		$	78,443		$	80,391		$	83,742
Deposits		247			228			258			353			185
Surrenders [1]		(3,344	)		(2,746	)		(2,382	)		(2,706	)		(3,329	)
Death benefits/annuitizations/other [2]		(559	)		(509	)		(509	)		(551	)		(503	)
Transfers		24			28			18			4			(4	)

Net flows		(3,632	)		(2,999	)		(2,615	)		(2,900	)		(3,651	)
Change in market value/change in reserve/interest credited		(157	)		(9,883	)		4,563			6,252			(2,326	)
Other [3]		1			—			—			(1	)		1

Ending balance	$	91,325		$	78,443		$	80,391		$	83,742		$	77,766

[1]

Surrenders in the three months ended, June 30, 2012 on the U.S. variable annuity book averaged 17% compared with 15% in the three months ended, June 30,2011. Surrender activity increased after the company’s March 21^st announcement that it was placing the U.S. Annuity business into runoff, rising to a 20% annualized rate in April, which trended down to 18% in May and 15% in June.

[2]	Includes transfers from the accumulation phase to the annuitization phase.

[3]	Includes a bonus on certain products, front end loads on A share products and annual maintenance fees.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS

LIFE OTHER OPERATIONS—INTERNATIONAL ANNUITY

SUPPLEMENTAL DATA—ACCOUNT VALUE ROLL FORWARD


	THREE MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,
	2011			2011			2011			2012			2012
VARIABLE ANNUITIES
Beginning balance	$	33,027		$	32,981		$	31,438		$	31,162		$	31,392
Deposits		1			—			—			—			—
Surrenders [1]		(291	)		(296	)		(291	)		(311	)		(379	)
Death benefits/annuitizations/other		(166	)		(165	)		(164	)		(194	)		(194	)

Net flows		(456	)		(461	)		(455	)		(505	)		(573	)
Change in market value/change in reserve/interest credited		(404	)		(2,477	)		141			2,681			(1,862	)
Effect of currency translation		814			1,395			38			(1,946	)		874

Ending balance	$	32,981		$	31,438		$	31,162		$	31,392		$	29,831

FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	4,463		$	4,824		$	5,013		$	4,786		$	4,469
Surrenders [1]		(31	)		(44	)		(59	)		(47	)		(152	)
Death benefits/annuitizations/other		246			(16	)		(204	)		1			(18	)

Net flows		215			(60	)		(263	)		(46	)		(170	)
Change in market value/change in reserve/interest credited		22			19			28			40			23
Effect of currency translation		124			230			8			(311	)		139

Ending balance	$	4,824		$	5,013		$	4,786		$	4,469		$	4,461

TOTAL INTERNATIONAL ANNUITY
Beginning balance	$	37,490		$	37,805		$	36,451		$	35,948		$	35,861
Deposits		1			—			—			—			—
Surrenders [1]		(322	)		(340	)		(350	)		(358	)		(531	)
Death benefits/annuitizations/other		80			(181	)		(368	)		(193	)		(212	)

Net flows		(241	)		(521	)		(718	)		(551	)		(743	)
Change in market value/change in reserve/interest credited		(382	)		(2,458	)		169			2,721			(1,839	)
Effect of currency translation		938			1,625			46			(2,257	)		1,013

Ending balance	$	37,805		$	36,451		$	35,948		$	35,861		$	34,292

[1]	Surrender activity on the International Annuity book averaged 5% in the three months ended June 30,2012 compared with 4% in the three months ended June 30,2011.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS

LIFE OTHER OPERATIONS

DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS (“DAC”)


	U.S. Annuity			International Annuity			Institutional Annuity			PPLI			Life Other Operations
Balance, December 31, 2011	$	2,412		$	1,125		$	55		$	33		$	3,625
Adjustments to unrealized gains and losses on securities available-for-sale and other		178			(16	)		—			—			162

Balance, excluding adjustments to unrealized gains and losses on securitis available-for-sale and other		2,590			1,109			55			33			3,787
Deferred costs		37			—			—			—			37
Amortization—DAC		(147	)		(20	)		(2	)		(1	)		(170	)
Amortization—Core unlock benefit (charge), pre-tax		22			5			—			—			27
Amortization—Non-core unlock benefit (charge), pre-tax		(2	)		10			—			—			8
Effect of currency translation adjustment		—			(38	)		—			—			(38	)

Balance, June 30, 2012		2,500			1,066			53			32			3,651
Adjustments to unrealized gains and losses on securities available-for-sale and other		(239	)		(5	)		—			1			(243	)

Balance, June 30, 2012 including adjustments to unrealized gains and losses on securities available-for-sale and other	$	2,261		$	1,061		$	53		$	33		$	3,408

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RUNOFF OPERATIONS—LIFE OTHER OPERATIONS

SUPPLEMENTAL DATA—ANNUITY DEATH AND LIVING BENEFITS


	As of Jun. 30, 2011			As of Sept. 30, 2011			As of Dec. 31, 2011			As of Mar. 31, 2012			As of Jun. 30, 2012
U.S. VARIABLE ANNUITY BUSINESS
S&P 500 index value at end of period		1,320.64			1,131.42			1,257.60			1,408.47			1,362.16

Total account value with guaranteed minimum death benefits (“GMDB”)	$	79,347		$	66,716		$	68,760		$	72,235		$	66,538
GMDB gross net amount of risk		8,566			15,833			12,021			7,698			8,998
% of GMDB NAR reinsured		64	%		54	%		58	%		65	%		62	%
GMDB retained net amount of risk		3,104			7,205			5,087			2,724			3,461
GMDB net GAAP liability [1]		346			440			380			322			337

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)		42,501			35,566			36,604			38,312			35,127
GMWB gross net amount of risk		745			3,025			1,888			847			1,198
% of GMWB NAR reinsured		21	%		16	%		16	%		16	%		16	%
GMWB retained net amount of risk		592			2,533			1,587			711			1,009
GMWB net GAAP liability		1,176			2,276			2,082			1,355			1,790

JAPAN VARIABLE ANNUITY BUSINESS
Yen / $		80.8			77.1			76.9			82.3			79.8

Total account value with GMDB	$	30,785		$	29,522		$	29,234		$	29,396		$	27,977
GMDB gross net amount of risk		8,469			11,035			10,857			7,580			9,477
% of GMDB NAR reinsured		15	%		13	%		13	%		15	%		13	%
GMDB retained net amount of risk		7,233			9,583			9,413			6,469			8,236

Total account value with guaranteed minimum income benefits (“GMIB”)		28,526			27,471			27,282			27,350			26,119
GMIB retained net amount of risk [2]		5,442			7,662			7,502			4,785			6,470
GMDB/GMIB net GAAP liability [1]		635			907			930			704			847

[1]

For the three months ended June 30, 2011 there was a decrease to the GMDB/GMIB liability as a result of the unlock for the Japan and U.S. variable annuity business of $(10) and $16, respectively. For the three months ended September 30, 2011, the amounts were $88 and $244, respectively. For the three months ended December 31, 2011 the amounts were $(54) and $32, respectively. For the three months ended March 31, 2012 the amounts were $(61) and $(152), respectively. For the three months ended June 30, 2012 the amounts were $9 and $130, respectively.

[2]

Policies with a guaranteed living benefit (a GMWB in the US) also have a guaranteed death benefit. The net amount at risk ("NAR") for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB is released. Similarly, when a policy goes into benefit status on a GMWB the GMDB NAR is reduced to $0.

CORPORATE

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS


																Year Over
	THREE MONTHS ENDED															Year			Sequential			SIX MONTHS ENDED
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			JUNE 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Earned premiums	$	1		$	—		$	—		$	—		$	—			(100	%)		—		$	—		$	—			—
Fee income		53			55			48			52			45			(15	%)		(13	%)		106			97			(8	%)
Net investment income		13			1			(7	)		(6	)		3			(77	%)		NM			29			(3	)		NM
Net realized capital gains (losses)		6			(51	)		(40	)		15			17			183	%		13	%		(5	)		32			NM
Total revenues		73			5			1			61			65			(11	%)		7	%		130			126			(3	%)

Benefits, losses and loss adjustment expenses		1			(6	)		1			—			(1	)		NM			—			2			(1	)		NM
Insurance operating costs and other expenses		65			43			9			76			63			(3	%)		(17	%)		125			139			11	%
Loss on extinguishment of debt [1]		—			—			—			—			910			—			—			—			910			—
Interest expense		128			128			124			124			115			(10	%)		(7	%)		256			239			(7	%)
Restructuring and other costs		—			14			11			9			28			—			NM			—			37			—

Total benefits and expenses		194			179			145			209			1,115			NM			NM			383			1,324			NM

Loss from continuing operations before income taxes		(121	)		(174	)		(144	)		(148	)		(1,050	)		NM			NM			(253	)		(1,198	)		NM

Income tax benefit		(47	)		(62	)		(48	)		(52	)		(372	)		NM			NM			(91	)		(424	)		NM

Loss from continuing operations		(74	)		(112	)		(96	)		(96	)		(678	)		NM			NM			(162	)		(774	)		NM

Add: Income (loss) from discontinued operations [2]		(77	)		5			6			—			—			100	%		—			(75	)		—			100	%

Net loss		(151	)		(107	)		(90	)		(96	)		(678	)		NM			NM			(237	)		(774	)		NM

Less: Net realized capital gains (losses), net of tax and DAC, excluded from core losses		9			(29	)		(26	)		12			7			(22	%)		(42	%)		—			19			—
Less: Loss on extinguishment of debt, net of tax		—			—			—			—			(587	)		—			—			—			(587	)		—
Less: Income (loss) from discontinued operations [2]		(77	)		5			6			—			—			100	%		—			(75	)		—			100	%

Core losses	$	(83	)	$	(83	)	$	(70	)	$	(108	)	$	(98	)		(18	%)		9	%	$	(162	)	$	(206	)		(27	%)

[1]

[2]	The three months ended June 30, 2011 includes an after-tax charge of $74 related to the disposition of Federal Trust Corporation.

CONSOLIDATED

INVESTMENTS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

CONSOLIDATED


																Year Over
	Three Months Ended															Year			Sequential			Six Months Ended
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			June 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	744		$	711		$	723		$	738		$	729			(2	%)		(1	%)	$	1,463		$	1,467			—
Tax-exempt		126			125			121			120			119			(6	%)		(1	%)		253			239			(6	%)

Total fixed maturities		870			836			844			858			848			(3	%)		(1	%)		1,716			1,706			(1	%)
Equity securities, trading		(597	)		(1,890	)		325			2,866			(1,687	)		(183	%)		NM			206			1,179			NM
Equity securities, available-for-sale		8			8			9			10			8			—			(20	%)		19			18			(5	%)
Mortgage loans		67			75			76			79			86			28	%		9	%		130			165			27	%
Policy loans		34			32			32			30			30			(12	%)		—			67			60			(10	%)
Limited partnerships and other alternative investments [2]		78			67			(2	)		52			72			(8	%)		38	%		178			124			(30	%)
Other [3]		77			73			70			69			81			5	%		17	%		158			150			(5	%)

Subtotal		537			(799	)		1,354			3,964			(562	)		NM			NM			2,474			3,402			38	%
Less: Investment expense		30			29			31			28			28			(7	%)		—			56			56			—

Total net investment income [4]	$	507		$	(828	)	$	1,323		$	3,936		$	(590	)		NM			NM		$	2,418		$	3,346			38	%
Less: Equity securities, trading		(597	)		(1,890	)		325			2,866			(1,687	)		(183	%)		NM			206			1,179			NM

Total net investment income excluding trading securities	$	1,104		$	1,062		$	998		$	1,070		$	1,097			(1	%)		3	%	$	2,212		$	2,167			(2	%)

Annualized investment yield, before-tax [5]		4.6	%		4.3	%		4.0	%		4.3	%		4.4	%		(0.2	)		0.1			4.6	%		4.4	%		(0.2	)
Annualized investment yield, after-tax [5]		3.1	%		2.9	%		2.8	%		3.0	%		3.0	%		(0.1	)		—			3.1	%		3.0	%		(0.1	)

Net Realized Capital Gains (Losses)
Gross gains on sales	$	261		$	197		$	174		$	259		$	246			(6	%)		(5	%)	$	322		$	505			57	%
Gross losses on sales		(98	)		(63	)		(90	)		(97	)		(159	)		(62	%)		(64	%)		(231	)		(256	)		(11	%)
Net impairment losses		(23	)		(60	)		(36	)		(29	)		(98	)		NM			NM			(78	)		(127	)		(63	%)
Valuation allowances on mortgage loans		26			—			1			1			—			(100	%)		(100	%)		23			1			(96	%)
Japanese fixed annuity contract hedges, net [6]		6			9			5			(20	)		2			(67	%)		NM			(11	)		(18	)		(64	%)
Periodic net coupon settlements on credit derivatives/Japan [7]		(2	)		1			(2	)		(5	)		4			NM			NM			(9	)		(1	)		89	%
Results of variable annuity hedge program
U.S. GMWB derivatives, net		(33	)		(323	)		(97	)		185			(115	)		NM			NM			23			70			NM
U.S. macro hedge		(17	)		106			(221	)		(189	)		6			NM			NM			(101	)		(183	)		(81	%)

Total U.S. program		(50	)		(217	)		(318	)		(4	)		(109	)		(118	%)		NM			(78	)		(113	)		(45	%)
International program		52			1,132			(90	)		(1,219	)		753			NM			NM			(267	)		(466	)		(75	%)

Total results of variable annuity hedge program		2			915			(408	)		(1,223	)		644			NM			NM			(345	)		(579	)		(68	%)
Other net gain (loss) [8]		(103	)		(424	)		(30	)		204			(50	)		51	%		NM			(5	)		154			NM

Total net realized capital gains (losses) [9]	$	69		$	575		$	(386	)	$	(910	)	$	589			NM			NM		$	(334	)	$	(321	)		4	%

[1]	Includes income on short-term bonds.

[2]	Includes income on real estate joint ventures and hedge fund investments outside of limited partnerships.

[3]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.

[4]	Includes $2, $1, $1, $1 and $2 in Corporate as of June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively. Please refer to the basis of presentation for a description of the statutory legal entity view for Corporate.

[5]

Yields calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, and consolidated variable interest entity non-controlling interests.

[6]	Relates to the Japanese fixed annuity product (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding periodic net coupon settlements, and Japan fair value option securities).

[7]	Included in core earnings.

[8]	Primarily consists of gains and losses on non-qualifying derivatives and fixed maturities, FVO, Japan 3Win related foreign currency swaps and other investment gains and losses.

[9]	Includes ($1), $0, ($1), ($2) and ($1) in Corporate as of June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

LIFE [1]


																Year Over
	Three Months Ended															Year			Sequential			Six Months Ended
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			June 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Net Investment Income (Loss)
Fixed maturities [2]
Taxable	$	555		$	537		$	541		$	555		$	553			—			—		$	1,096		$	1,108			1	%
Tax-exempt		26			27			26			26			25			(4	%)		(4	%)		53			51			(4	%)

Total fixed maturities		581			564			567			581			578			(1	%)		(1	%)		1,149			1,159			1	%
Equity securities, trading		(597	)		(1,890	)		325			2,866			(1,687	)		(183	%)		NM			206			1,179			NM
Equity securities, available-for-sale		4			3			4			5			3			(25	%)		(40	%)		9			8			(11	%)
Mortgage loans		59			67			67			69			74			25	%		7	%		117			143			22	%
Policy loans		34			32			32			30			30			(12	%)		—			67			60			(10	%)
Limited partnerships and other alternative investments [3]		50			52			(3	)		26			41			(18	%)		58	%		110			67			(39	%)
Other [4]		67			65			59			61			69			3	%		13	%		137			130			(5	%)

Subtotal		198			(1,107	)		1,051			3,638			(892	)		NM			NM			1,795			2,746			53	%
Less: Investment expense		21			22			22			21			21			—			—			41			42			2	%

Total net investment income	$	177		$	(1,129	)	$	1,029		$	3,617		$	(913	)		NM			NM		$	1,754		$	2,704			54	%
Less: Equity securities, trading		(597	)		(1,890	)		325			2,866			(1,687	)		(183	%)		NM			206			1,179			NM

Total net investment income excluding trading securities	$	774		$	761		$	704		$	751		$	774			—			3	%	$	1,548		$	1,525			(1	%)

Annualized investment yield, before-tax [5]		4.7	%		4.5	%		4.1	%		4.4	%		4.5	%		(0.2	)		0.1			4.7	%		4.4	%		(0.3	)
Annualized investment yield, after-tax [5]		3.1	%		3.0	%		2.7	%		2.9	%		3.0	%		(0.1	)		0.1			3.1	%		2.9	%		(0.2	)

Net Realized Capital Gains (Losses)
Gross gains on sales	$	191		$	144		$	123		$	191		$	170			(11	%)		(11	%)	$	227		$	361			59	%
Gross losses on sales		(64	)		(31	)		(61	)		(74	)		(107	)		(67	%)		(45	%)		(154	)		(181	)		(18	%)
Net impairment losses		(13	)		(44	)		(35	)		(24	)		(50	)		NM			(108	%)		(54	)		(74	)		(37	%)
Valuation allowances on mortgage loans		26			—			—			1			—			(100	%)		(100	%)		23			1			(96	%)
Japanese fixed annuity contract hedges, net [6]		6			9			5			(20	)		2			(67	%)		NM			(11	)		(18	)		(64	%)
Periodic net coupon settlements on credit derivatives/Japan [7]		—			2			(1	)		(5	)		4			—			NM			(5	)		(1	)		80	%
Results of variable annuity hedge program																										—
U.S. GMWB derivatives, net		(33	)		(323	)		(97	)		185			(115	)		NM			NM			23			70			NM
U.S. macro hedge		(17	)		106			(221	)		(189	)		6			NM			NM			(101	)		(183	)		(81	%)

Total U.S. program		(50	)		(217	)		(318	)		(4	)		(109	)		(118	%)		NM			(78	)		(113	)		(45	%)
International program		52			1,132			(90	)		(1,219	)		753			NM			NM			(267	)		(466	)		(75	%)

Total results of variable annuity hedge program		2			915			(408	)		(1,223	)		644			NM			NM			(345	)		(579	)		(68	%)
Other net gain (loss) [8]		(96	)		(355	)		(22	)		185			(54	)		44	%		NM			—			131			—

Total net realized capital gains (losses)	$	52		$	640		$	(399	)	$	(969	)	$	609			NM			NM		$	(319	)	$	(360	)		(13	%)

[1]	Please refer to the basis of presentation for a description of the statutory legal entity view for Life.

[2]	Includes income on short-term bonds.

[3]	Includes income on a real estate joint venture.

[4]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.

[5]

[6]	Relates to the Japanese fixed annuity product (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding periodic net coupon settlements, and Japan fair value option securities).

[7]	Included in core earnings.

[8]	Primarily consists of gains and losses on non-qualifying derivatives and fixed maturities, FVO, Japan 3Win related foreign currency swaps and other investment gains and losses.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

PROPERTY & CASUALTY [1]


																Year Over
	Three Months Ended															Year			Sequential			Six Months Ended
	Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			3 Month			3 Month			June 30,
	2011			2011			2011			2012			2012			Change			Change			2011			2012			Change
Net Investment Income (Loss)
Fixed maturities [2]
Taxable	$	187		$	174		$	182		$	183		$	175			(6	%)		(4	%)	$	364		$	358			(2	%)
Tax-exempt		100			98			95			94			94			(6	%)		—			200			188			(6	%)

Total fixed maturities		287			272			277			277			269			(6	%)		(3	%)		564			546			(3	%)
Equity securities, available-for-sale		4			4			4			4			4			—			—			9			8			(11	%)
Mortgage loans		8			8			9			10			12			50	%		20	%		13			22			69	%
Limited partnerships and other alternative investments [3]		28			15			1			26			31			11	%		19	%		68			57			(16	%)
Other [4]		10			8			11			8			12			20	%		50	%		21			20			(5	%)

Subtotal		337			307			302			325			328			(3	%)		1	%		675			653			(3	%)
Less: Investment expense		9			7			9			7			7			(22	%)		—			15			14			(7	%)

Total net investment income	$	328		$	300		$	293		$	318		$	321			(2	%)		1	%	$	660		$	639			(3	%)

Annualized investment yield, before-tax [5]		4.7	%		4.3	%		4.2	%		4.5	%		4.6	%		(0.1	)		0.1			4.7	%		4.5	%		(0.2	)
Annualized investment yield, after-tax [5]		3.5	%		3.2	%		3.1	%		3.4	%		3.4	%		(0.1	)		—			3.5	%		3.4	%		(0.1	)

Net Realized Capital Gains (Losses)
Gross gains on sales	$	69		$	52		$	51		$	67		$	77			12	%		15	%	$	94		$	144			53	%
Gross losses on sales		(34	)		(31	)		(29	)		(23	)		(52	)		(53	%)		(126	%)		(77	)		(75	)		3	%
Net impairment losses		(10	)		(16	)		(1	)		(5	)		(48	)		NM			NM			(24	)		(53	)		(121	%)
Valuation allowances on mortgage loans		—			—			1			—			—			—			—			—			—			—
Periodic net coupon settlements on credit derivatives/Japan [6]		(2	)		(1	)		(1	)		—			—			100	%		—			(4	)		—			100	%
Other net gain (loss) [7]		(5	)		(69	)		(7	)		22			4			NM			(82	%)		(1	)		26			NM

Total net realized capital gains (losses)	$	18		$	(65	)	$	14		$	61		$	(19	)		NM			NM		$	(12	)	$	42			NM

[1]	Please refer to the basis of presentation for a description of the statutory legal entity view for Property & Casualty.

[2]	Includes income on short-term bonds.

[3]	Includes income on a real estate joint venture and hedge fund investments outside of limited partnerships.

[4]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.

[5]	Yields calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable.

[6]	Included in core earnings.

[7]	Primarily consists of gains and losses on non-qualifying derivatives and fixed maturities, FVO, and other investment gains and losses.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED


	June 30,					September 30,					December 31,					March 31,					June 30,
	2011					2011					2011					2012					2012
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value [1]	$	78,132		59.3	%	$	80,263		59.0	%	$	81,809		60.6	%	$	83,157		62.3	%	$	85,227		63.2	%
Fixed maturities, at fair value using fair value option		1,227		0.9	%		1,323		1.0	%		1,328		1.0	%		1,291		1.0	%		1,165		0.9	%
Equity securities, trading, at fair value [2]		32,278		24.4	%		30,770		22.6	%		30,499		22.6	%		30,722		23.0	%		29,215		21.7	%
Equity securities, available-for-sale, at fair value [3]		1,081		0.8	%		989		0.7	%		921		0.7	%		938		0.7	%		851		0.6	%
Mortgage loans [4]		5,304		4.0	%		5,590		4.1	%		5,728		4.2	%		6,275		4.7	%		6,875		5.1	%
Policy loans, at outstanding balance		2,188		1.7	%		2,176		1.6	%		2,001		1.5	%		1,970		1.5	%		1,956		1.4	%
Limited partnerships and other alternative investments [5]		2,028		1.5	%		2,506		1.8	%		2,532		1.9	%		2,732		2.0	%		2,944		2.2	%
Other investments [6]		973		0.7	%		2,857		2.1	%		2,394		1.8	%		1,259		0.9	%		1,548		1.1	%
Short-term investments [7]		8,861		6.7	%		9,704		7.1	%		7,736		5.7	%		5,256		3.9	%		5,154		3.8	%

Total investments	$	132,072		100.0	%	$	136,178		100.0	%	$	134,948		100.0	%	$	133,600		100.0	%	$	134,935		100.0	%
Less: Equity securities, trading		32,278		24.4	%		30,770		22.6	%		30,499		22.6	%		30,722		23.0	%		29,215		21.7	%

Total investments excluding trading securities	$	99,794		75.6	%	$	105,408		77.4	%	$	104,449		77.4	%	$	102,878		77.0	%	$	105,720		78.3	%

Asset-backed securities (“ABS”)	$	3,297		4.2	%	$	3,504		4.4	%	$	3,153		3.9	%	$	3,087		3.7	%	$	3,002		3.5	%
Collateralized debt obligations (“CDOs”)		2,575		3.3	%		2,465		3.1	%		2,487		3.0	%		3,043		3.7	%		3,037		3.5	%
Commercial mortgage-backed securities (“CMBS”)		7,277		9.3	%		6,960		8.7	%		6,951		8.5	%		6,774		8.1	%		6,346		7.5	%
Corporate		41,629		53.2	%		43,316		53.9	%		44,011		53.9	%		43,329		52.2	%		42,983		50.5	%
Foreign government/government agencies		1,864		2.4	%		1,944		2.4	%		2,161		2.6	%		3,352		4.0	%		3,598		4.2	%
Municipal—taxable		1,299		1.7	%		1,649		2.1	%		1,757		2.1	%		2,284		2.7	%		2,364		2.8	%
Municipal—tax-exempt		11,482		14.7	%		11,515		14.3	%		11,503		14.1	%		11,554		13.9	%		11,761		13.8	%
Residential mortgage-backed securities (“RMBS”)		5,214		6.7	%		5,336		6.6	%		5,757		7.0	%		6,595		7.9	%		6,981		8.2	%
U.S. Treasuries		3,495		4.5	%		3,574		4.5	%		4,029		4.9	%		3,139		3.8	%		5,155		6.0	%

Total fixed maturities, AFS [8]	$	78,132		100.0	%	$	80,263		100.0	%	$	81,809		100.0	%	$	83,157		100.0	%	$	85,227		100.0	%

U.S. government/government agencies	$	8,073		10.3	%	$	8,423		10.5	%	$	9,364		11.4	%	$	9,193		11.1	%	$	11,980		14.1	%
AAA		9,409		12.0	%		10,497		13.1	%		10,113		12.4	%		9,712		11.7	%		9,002		10.6	%
AA		15,900		20.4	%		15,921		19.8	%		15,844		19.4	%		16,463		19.8	%		16,290		19.1	%
A		20,470		26.2	%		21,584		26.9	%		21,053		25.7	%		20,773		25.0	%		21,207		24.9	%
BBB		20,568		26.3	%		20,626		25.7	%		21,760		26.6	%		22,664		27.2	%		22,528		26.3	%
BB & below		3,712		4.8	%		3,212		4.0	%		3,675		4.5	%		4,352		5.2	%		4,220		5.0	%

Total fixed maturities, AFS [8]	$	78,132		100.0	%	$	80,263		100.0	%	$	81,809		100.0	%	$	83,157		100.0	%	$	85,227		100.0	%

[1]	Includes $25, $1, $153, $149 and $114 in Corporate at June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[2]	These assets support the Global Annuity-International variable annuity business. Changes in these balances are also reflected in the respective liabilities.

[3]	Includes $100, $96, $104, $110 and $110 in Corporate at June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[4]	Includes $138, $128, $0, $0 and $0 in Corporate at June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[5]	Includes real estate joint ventures and hedge fund investments outside of limited partnerships.

[6]	Primarily relates to derivative instruments. Additionally, includes $27, $27, $29, $26 and $26 in Corporate at June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[7]	Includes $2,274, $2,293, $1,437, $1,346 and $1,139 in the Corporate segment at June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

[8]	Available-for-sale ("AFS").

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

LIFE [1]


	June 30,					September 30,					December 31,					March 31,					June 30,
	2011					2011					2011					2012					2012
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	52,834		52.3	%	$	54,329		51.9	%	$	55,633		53.3	%	$	56,923		55.5	%	$	58,891		56.7	%
Fixed maturities, at fair value using fair value option		1,214		1.2	%		1,314		1.3	%		1,317		1.3	%		1,279		1.2	%		1,154		1.1	%
Equity securities, trading, at fair value [2]		32,278		31.9	%		30,770		29.4	%		30,499		29.3	%		30,722		29.9	%		29,215		28.1	%
Equity securities, available-for-sale, at fair value		603		0.6	%		563		0.5	%		515		0.5	%		506		0.5	%		446		0.4	%
Mortgage loans		4,578		4.5	%		4,779		4.6	%		4,979		4.8	%		5,380		5.2	%		5,817		5.6	%
Policy loans, at outstanding balance		2,188		2.2	%		2,176		2.1	%		2,001		1.9	%		1,970		1.9	%		1,956		1.9	%
Limited partnerships and other alternative investments [3]		1,024		1.0	%		1,320		1.3	%		1,318		1.3	%		1,436		1.4	%		1,543		1.5	%
Other investments [4]		799		0.8	%		2,717		2.6	%		2,244		2.2	%		1,103		1.1	%		1,365		1.3	%
Short-term investments		5,565		5.5	%		6,619		6.3	%		5,641		5.4	%		3,384		3.3	%		3,549		3.4	%

Total investments	$	101,083		100.0	%	$	104,587		100.0	%	$	104,147		100.0	%	$	102,703		100.0	%	$	103,936		100.0	%
Less: Equity securities, trading		32,278		31.9	%		30,770		29.4	%		30,499		29.3	%		30,722		29.9	%		29,215		28.1	%

Total investments excluding trading securities	$	68,805		68.1	%	$	73,817		70.6	%	$	73,648		70.7	%	$	71,981		70.1	%	$	74,721		71.9	%

ABS	$	2,732		5.2	%	$	2,778		5.1	%	$	2,491		4.5	%	$	2,379		4.2	%	$	2,345		4.0	%
CDOs		2,047		3.9	%		1,949		3.6	%		1,968		3.5	%		2,383		4.2	%		2,374		4.0	%
CMBS		4,967		9.4	%		4,715		8.7	%		4,667		8.4	%		4,546		8.0	%		4,308		7.3	%
Corporate		31,595		59.7	%		33,007		60.7	%		33,719		60.6	%		33,621		59.1	%		33,525		56.9	%
Foreign government/government agencies		1,285		2.4	%		1,409		2.6	%		1,605		2.9	%		2,784		4.9	%		3,039		5.2	%
Municipal—taxable		1,167		2.2	%		1,508		2.8	%		1,603		2.9	%		1,950		3.4	%		2,015		3.4	%
Municipal—tax-exempt		2,417		4.6	%		2,500		4.6	%		2,450		4.4	%		2,453		4.3	%		2,485		4.2	%
RMBS		3,738		7.1	%		3,797		7.0	%		4,000		7.2	%		4,694		8.2	%		4,907		8.3	%
U.S. Treasuries		2,886		5.5	%		2,666		4.9	%		3,130		5.6	%		2,113		3.7	%		3,893		6.7	%

Total fixed maturities, AFS	$	52,834		100.0	%	$	54,329		100.0	%	$	55,633		100.0	%	$	56,923		100.0	%	$	58,891		100.0	%

U.S. government/government agencies	$	5,869		11.1	%	$	5,806		10.7	%	$	6,509		11.7	%	$	6,121		10.7	%	$	8,341		14.2	%
AAA		5,747		10.9	%		6,426		11.8	%		6,212		11.2	%		5,952		10.5	%		5,349		9.1	%
AA		8,152		15.4	%		8,498		15.6	%		8,353		15.0	%		9,044		15.9	%		9,130		15.5	%
A		14,873		28.2	%		15,798		29.1	%		15,528		27.8	%		15,574		27.4	%		16,024		27.2	%
BBB		15,218		28.8	%		15,165		27.9	%		16,108		29.0	%		16,775		29.4	%		16,682		28.3	%
BB & below		2,975		5.6	%		2,636		4.9	%		2,923		5.3	%		3,457		6.1	%		3,365		5.7	%

Total fixed maturities, AFS	$	52,834		100.0	%	$	54,329		100.0	%	$	55,633		100.0	%	$	56,923		100.0	%	$	58,891		100.0	%

[1]	Please refer to the basis of presentation for a description of the statutory legal entity view for Life.

[2]	These assets support the International variable annuity business. Changes in these balances are also reflected in the respective liabilities.

[3]	Includes a real estate joint venture.

[4]	Primarily relates to derivative instruments.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

PROPERTY & CASUALTY [1]


	June 30,					September 30,					December 31,					March 31,					June 30,
	2011					2011					2011					2012					2012
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	25,273		88.9	%	$	25,933		89.3	%	$	26,023		89.5	%	$	26,085		89.2	%	$	26,222		88.6	%
Fixed maturities, at fair value using fair value option		13		0.1	%		9		—			11		—			12		—			11		—
Equity securities, available-for-sale, at fair value		378		1.3	%		330		1.1	%		302		1.0	%		322		1.1	%		295		1.0	%
Mortgage loans		588		2.1	%		683		2.4	%		749		2.6	%		895		3.1	%		1,058		3.6	%
Limited partnerships and other alternative investments [2]		1,004		3.5	%		1,186		4.1	%		1,214		4.2	%		1,296		4.4	%		1,401		4.7	%
Other investments [3]		147		0.5	%		113		0.4	%		121		0.4	%		130		0.4	%		157		0.5	%
Short-term investments		1,022		3.6	%		792		2.7	%		658		2.3	%		526		1.8	%		466		1.6	%

Total investments	$	28,425		100.0	%	$	29,046		100.0	%	$	29,078		100.0	%	$	29,266		100.0	%	$	29,610		100.0	%

ABS	$	565		2.2	%	$	726		2.8	%	$	651		2.5	%	$	660		2.5	%	$	620		2.4	%
CDOs		528		2.1	%		516		2.0	%		519		2.0	%		660		2.5	%		663		2.5	%
CMBS		2,310		9.1	%		2,245		8.7	%		2,284		8.8	%		2,228		8.5	%		2,038		7.8	%
Corporate		10,034		39.7	%		10,309		39.7	%		10,292		39.5	%		9,708		37.2	%		9,458		36.1	%
Foreign government/government agencies		579		2.3	%		535		2.1	%		551		2.1	%		561		2.2	%		559		2.1	%
Municipal—taxable		132		0.5	%		141		0.5	%		154		0.6	%		334		1.3	%		349		1.3	%
Municipal—tax-exempt		9,061		35.9	%		9,015		34.8	%		9,053		34.8	%		9,101		34.9	%		9,276		35.4	%
RMBS		1,456		5.8	%		1,538		5.9	%		1,757		6.8	%		1,901		7.3	%		2,074		7.9	%
U.S. Treasuries		608		2.4	%		908		3.5	%		762		2.9	%		932		3.6	%		1,185		4.5	%

Total fixed maturities, AFS	$	25,273		100.0	%	$	25,933		100.0	%	$	26,023		100.0	%	$	26,085		100.0	%	$	26,222		100.0	%

U.S. government/government agencies	$	2,183		8.6	%	$	2,617		10.1	%	$	2,718		10.4	%	$	2,978		11.4	%	$	3,562		13.6	%
AAA		3,662		14.5	%		4,071		15.7	%		3,889		14.9	%		3,712		14.2	%		3,616		13.8	%
AA		7,745		30.7	%		7,423		28.6	%		7,487		28.8	%		7,412		28.4	%		7,160		27.3	%
A		5,596		22.1	%		5,785		22.3	%		5,525		21.3	%		5,199		19.9	%		5,183		19.7	%
BBB		5,350		21.2	%		5,461		21.1	%		5,652		21.7	%		5,889		22.7	%		5,846		22.3	%
BB & below		737		2.9	%		576		2.2	%		752		2.9	%		895		3.4	%		855		3.3	%

Total fixed maturities, AFS	$	25,273		100.0	%	$	25,933		100.0	%	$	26,023		100.0	%	$	26,085		100.0	%	$	26,222		100.0	%

[1]	Please refer to the basis of presentation for a description of the statutory legal entity view for Property & Casualty.

[2]	Includes a real estate joint venture and hedge fund investments outside of limited partnerships.

[3]	Primarily relates to derivative instruments.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROSS UNREALIZED LOSS AGING

AVAILABLE-FOR-SALE SECURITIES


	June 30, 2012							December 31, 2011
	Amortized Cost		Fair Value		Unrealized Loss [1] [2]			Amortized Cost		Fair Value		Unrealized Loss [1] [2]
Total AFS Securities

Three months or less	$	4,939	$	4,839	$	(100	)	$	3,933	$	3,672	$	(261	)
Greater than three months to six months		911		882		(29	)		2,617		2,517		(100	)
Greater than six months to nine months		222		216		(6	)		1,181		1,097		(84	)
Greater than nine months to eleven months		475		463		(12	)		106		95		(11	)
Twelve months or more		10,956		9,208		(1,698	)		11,613		9,324		(2,218	)

Total	$	17,503	$	15,608	$	(1,845	)	$	19,450	$	16,705	$	(2,674	)

[1]

As of June 30, 2012, fixed maturities, AFS, represented $1,766, or 96%, of the Company's total unrealized loss on AFS securities. The Company held no securities of a single issuer that were in an unrealized loss position in excess of 5% of the total unrealized loss amount as of June 30, 2012 and December 31, 2011.

[2]	Unrealized losses exclude the change in fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in net realized capital gains (losses).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

AS OF JUNE 30, 2012


	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets [1]
Top Ten Corporate and Equity, AFS, Exposures by Sector
Utilities	$	8,484	$	9,368		8.9	%
Financial services		7,488		7,503		7.1	%
Consumer non-cyclical		5,516		6,214		5.9	%
Technology and communications		4,048		4,495		4.2	%
Basic industry		4,001		4,360		4.1	%
Energy		3,708		4,086		3.9	%
Capital goods		3,098		3,457		3.3	%
Consumer cyclical		2,246		2,480		2.3	%
Transportation		1,343		1,488		1.4	%
Other		320		383		0.4	%

Total	$	40,252	$	43,834		41.5	%

Top Ten Exposures by Issuer [2]
Government of Japan [3]	$	2,616	$	2,612		2.5	%
State of California		487		514		0.5	%
State of Illinois		403		412		0.4	%
National Grid PLC		348		406		0.4	%
AT&T Inc.		335		405		0.4	%
Government of United Kingdom		322		350		0.3	%
Caterpillar Inc		304		339		0.3	%
State of Massachusetts		286		322		0.3	%
Pfizer Inc		271		314		0.3	%
General Electric Co		345		288		0.2	%

Total	$	5,717	$	5,962		5.6	%

[1]	Excludes equity securities, trading.

[2]	Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exposures resulting from derivative transactions and equity securities, trading.

[3]	These securities are included in short-term investments, fixed maturities, available-for-sale, and fixed maturities, fair value option on the Company’s Consolidating Balance Sheets.

HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2 - August 1, 2012

Attached files

HARTFORD FINANCIAL SERVICES GROUP, INC. Reports