HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2 - October 29, 2020

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INVESTOR FINANCIAL SUPPLEMENT
September 30, 2020
ifshartfordlogoa02a02a01a1a.jpg




THE HARTFORD FINANCIAL SERVICES GROUP, INC.
As of October 27, 2020
Address:
One Hartford Plaza   A.M. Best  Standard & Poor’s  Moody’s
Hartford, CT 06155Insurance Financial Strength Ratings:      
Hartford Fire Insurance Company  A+  A+  A1
Hartford Life and Accident Insurance Company  A+  A+  A2
Navigators Insurance CompanyA+ANR
- Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
- Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address:- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.com
Other Ratings:      
Contact:Senior debt  a-  BBB+  Baa1
Susan Spivak BernsteinCommercial paper  AMB-1  A-2  P-2
Senior Vice PresidentPreferred stockbbbBBB-Baa3
Investor Relations Junior subordinated debenturesbbbBBB-Baa2
Phone (860) 547-6233
- Hartford Financial Services Group, Inc. senior debt and junior subordinated debentures are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
TRANSFER AGENT
Stockholder correspondence should be mailed to:Overnight correspondence should be mailed to:
ComputershareComputershare
P.O. Box 505000462 South 4th Street, Suite 1600
Louisville, KY 40233Louisville, KY 40202
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.
This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange
Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTOR FINANCIAL SUPPLEMENT
TABLE OF CONTENTS
CONSOLIDATEDConsolidated Financial Results1
Consolidated Statements of Operations2
Operating Results by Segment3
Consolidating Balance Sheets4
Capital Structure5
Statutory Capital to GAAP Stockholders’ Equity Reconciliation6
Accumulated Other Comprehensive Income (Loss)7
PROPERTY & CASUALTYProperty & Casualty Income Statements8
Property & Casualty Income Statements (Continued)9
Property & Casualty Underwriting Ratios10
Commercial Lines Income Statements11
Commercial Lines Income Statements (Continued)12
Commercial Lines Underwriting Ratios13
Commercial Lines Supplemental Data14
Personal Lines Income Statements15
Personal Lines Income Statements (Continued)16
Personal Lines Underwriting Ratios17
Personal Lines Supplemental Data18
Personal Lines Supplemental Data (Continued)19
P&C Other Operations Income Statements20
GROUP BENEFITSIncome Statements21
Supplemental Data22
HARTFORD FUNDSIncome Statements23
Asset Value Rollforward - Assets Under Management By Asset Class24
CORPORATEIncome Statements25
INVESTMENTSInvestment Earnings Before Tax - Consolidated26
Investment Earnings Before Tax - Property & Casualty27
Investment Earnings Before Tax - Group Benefits28
Net Investment Income29
Components of Net Realized Capital Gains (Losses) 30
Composition of Invested Assets31
Invested Asset Exposures32
APPENDIXBasis of Presentation and Definitions33
Discussion of Non-GAAP and Other Financial Measures34



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
HIGHLIGHTS
Net income$459 $468 $273 $548 $535 $372 $630 $1,200 $1,537 
Net income available to common stockholders [1]$453 $463 $268 $543 $524 $372 $625 $1,184 $1,521 
Core earnings*$527 $438 $485 $522 $548 $485 $507 $1,450 $1,540 
Total revenues$5,171 $5,068 $4,956 $5,361 $5,347 $5,092 $4,940 $15,195 $15,379 
Total assets$72,319 $70,990 $68,724 $70,817 $70,256 $69,472$63,324 
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders$1.26 $1.29 $0.75 $1.51 $1.45 $1.03 $1.74 $3.30 $4.21 
Core earnings*$1.47 $1.22 $1.35 $1.45 $1.52 $1.34 $1.41 $4.05 $4.27 
Diluted earnings per common share
Net income available to common stockholders$1.26 $1.29 $0.74 $1.49 $1.43 $1.02 $1.71 $3.29 $4.17 
Core earnings*$1.46 $1.22 $1.34 $1.43 $1.50 $1.33 $1.39 $4.02 $4.22 
Weighted average common shares outstanding (basic)358.3 358.1 358.5 360.5 361.4 361.4 360.0 358.3 361.0 
Dilutive effect of stock compensation2.2 1.2 2.6 3.8 4.0 3.2 3.3 2.0 3.4 
Dilutive effect of warrants [2]— — — — — 0.5 1.4 — 0.7 
Weighted average common shares outstanding and dilutive potential common shares (diluted)360.5 359.3 361.1 364.3 365.4 365.1 364.7 360.3 365.1 
Common shares outstanding358.2 358.1 357.9 359.6 361.0 361.6 360.9 
Book value per common share$48.77 $46.74 $41.72 $44.32 $43.61 $41.37 $38.81 
Per common share impact of accumulated other comprehensive income [3](2.39)(1.34)2.68 (0.15)(0.59)0.54 2.45 
Book value per common share (excluding AOCI)*$46.38 $45.40 $44.40 $44.17 $43.02 $41.91 $41.26 
Book value per diluted share$48.47 $46.59 $41.42 $43.85 $43.13 $41.00 $38.36 
Per diluted share impact of AOCI(2.38)(1.34)2.65 (0.14)(0.58)0.55 2.43 
Book value per diluted share (excluding AOCI)*$46.09 $45.25 $44.07 $43.71 $42.55 $41.55 $40.79 
Common shares outstanding and dilutive potential common shares360.4 359.3 360.5 363.4 365.0 364.8 365.1 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [4]
Net income (loss) available to common stockholders' ROE ("Net income (loss) ROE")10.4 %11.3 %11.8 %14.4 %12.0 %11.8 %13.5 %
Core earnings ROE*12.3 %12.7 %13.3 %13.6 %12.3 %11.7 %11.5 %
[1]Net income available to common stockholders includes the impact of preferred stock dividends.
[2]On June 26, 2019, the Capital Purchase Program warrants issued in 2009 expired.
[3]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement plan adjustments.
[4]For reconciliation of Net income (loss) ROE to Core earnings ROE, see Appendix, page 36.


* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Earned premiums$4,347 $4,234 $4,391 $4,423 $4,394 $4,166 $3,940 $12,972 $12,500 
Fee income323 298 320 331 330 326 314 941 970 
Net investment income492 339 459 503 490 488 470 1,290 1,448 
Net realized capital gains (losses) [1]6 109 (231)63 89 80 163 (116)332 
Other revenues3 88 17 41 44 32 53 108 129 
Total revenues 5,171 5,068 4,956 5,361 5,347 5,092 4,940 15,195 15,379 
Benefits, losses and loss adjustment expenses [2]2,962 2,847 2,916 2,939 2,914 2,934 2,685 8,725 8,533 
Amortization of deferred acquisition costs ("DAC")421 429 437 438 437 392 355 1,287 1,184 
Insurance operating costs and other expenses1,093 1,125 1,176 1,224 1,167 1,141 1,048 3,394 3,356 
Loss on extinguishment of debt [3]— — — — 90 — — — 90 
Loss on reinsurance transaction— — — — — 91 — — 91 
Interest expense58 57 64 65 67 63 64 179 194 
Amortization of other intangible assets18 18 19 19 19 15 13 55 47 
Restructuring and other costs87 — — — — — — 87 — 
Total benefits, losses and expenses4,639 4,476 4,612 4,685 4,694 4,636 4,165 13,727 13,495 
Income before income taxes532 592 344 676 653 456 775 1,468 1,884 
Income tax expense73 124 71 128 118 84 145 268 347 
Net income459 468 273 548 535 372 630 1,200 1,537 
Preferred stock dividends [4]6 5 5 5 11 — 5 16 16 
Net income available to common stockholders453 463 268 543 524 372 625 1,184 1,521 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [1](6)(107)232 (62)(88)(79)(160)119 (327)
Restructuring and other costs, before tax [5]87 — — — — — — 87 — 
Loss on extinguishment of debt, before tax— — — — 90 — — — 90 
Loss on reinsurance transaction, before tax— — — — — 91 — — 91 
Integration and transaction costs associated with acquired business, before tax [6]14 13 13 21 29 31 10 40 70 
Change in loss reserves upon acquisition of a business, before tax [7]— — — — — 97 — — 97 
Change in deferred gain on retroactive reinsurance, before tax [8]14 54 29 16 — — — 97 — 
Income tax expense (benefit) [9](35)15 (57)4 (7)(27)32 (77)(2)
Core earnings$527 $438 $485 $522 $548 $485 $507 $1,450 $1,540 
[1]The three and nine month periods ended September 30, 2020 included a loss on sale of Continental Europe Operations of $51 before-tax and $32 after-tax.
[2]The three and nine months ended September 30, 2020 included $72 and $339, respectively, of benefits, losses and loss adjustment expenses incurred arising from the Coronavirus Disease 2019 ("COVID-19") pandemic.
[3]For the three and nine months ended September 30, 2019, amount relates to the redemptions of $265 of 5.75% senior notes that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes of The Hartford Financial Services Group, Inc.
[4]No preferred stock dividends were declared in second quarter 2019. Preferred stock dividends of $5 and $6 were declared on July 18, 2019 and September 12, 2019, respectively, and were recognized in third quarter 2019.
[5]The three and nine month periods ended September 30, 2020 represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan and included $78 of accrued severance costs.
[6]The three and nine month periods ended September 30, 2020 included Navigators Group acquisition integration costs of $9 and $25, respectively, and integration costs related to the 2017 acquisition of Aetna's group benefits business of $5 and $15, respectively. The three and nine month periods ended September 30, 2019 included Navigators Group acquisition transaction and integration costs of $20 and $42, respectively, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $9 and $28, respectively.
[7]Upon acquisition of Navigators Group and a review of Navigators Insurers reserves, the nine months ended September 30, 2019 included $68 of prior accident year reserve increases and $29 of current accident year reserve increases included in net income.
[8]As of September 30, 2020, the Company has cumulatively ceded $204 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $97 ceded in the nine month period ended September 30, 2020. Of the $204 of cumulative losses ceded, $113 of the ceded losses has been recognized as a deferred gain within other liabilities as of September 30, 2020 since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded exceed the ceded premium paid of $91. As the Company has ceded $204 of the $300 available limit, there is $96 of remaining limit available as of September 30, 2020.
[9]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings. The three and nine month periods ended September 30, 2020 include a tax benefit of $19 related to the loss on sale of Continental Europe Operations (see Note [2] in the Form 10-Q for the quarterly period ended September 30, 2020).
2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income (loss):
Commercial Lines$323 $(66)$121 $302 $336 $191 $363 $378 $890 
Personal Lines79 371 98 66 94 62 96 548 252 
P&C Other Operations2 5 5 9 18 11 23 12 52 
Property & Casualty ("P&C")404 310 224 377 448 264 482 938 1,194 
Group Benefits119 101 104 159 146 113 118 324 377 
Hartford Funds44 39 36 41 40 38 30 119 108 
Sub-total567 450 364 577 634 415 630 1,381 1,679 
Corporate (108)18 (91)(29)(99)(43)— (181)(142)
Net income 459 468 273 548 535 372 630 1,200 1,537 
Preferred stock dividends6 5 5 5 11 — 5 16 16 
Net income available to common stockholders$453 $463 $268 $543 $524 $372 $625 $1,184 $1,521 
Core earnings (losses):
Commercial Lines$349 $(57)$262 $292 $303 $304 $274 $554 $881 
Personal Lines77 364 117 61 87 55 82 558 224 
P&C Other Operations2 2 11 7 15 8 16 15 39 
P&C428 309 390 360 405 367 372 1,127 1,144 
Group Benefits116 102 115 161 141 115 122 333 378 
Hartford Funds40 33 44 40 39 38 28 117 105 
Sub-total584 444 549 561 585 520 522 1,577 1,627 
Corporate (57)(6)(64)(39)(37)(35)(15)(127)(87)
Core earnings$527 $438 $485 $522 $548 $485 $507 $1,450 $1,540 


3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATECONSOLIDATED
Sept 30 2020Dec 31 2019Sept 30 2020Dec 31 2019Sept 30 2020Dec 31 2019Sept 30 2020Dec 31 2019Sept 30 2020Dec 31 2019
Investments
Fixed maturities, available-for-sale, at fair value$33,591 $31,294 $10,241 $10,310 $— $25 $212 $519 $44,044 $42,148 
Fixed maturities, at fair value using the fair value option— 8 — 3 — — — — — 11 
Equity securities, at fair value475 1,295 97 85 73 67 174 210 819 1,657 
Mortgage loans3,110 2,944 1,351 1,271 — — — — 4,461 4,215 
Limited partnerships and other alternative investments1,538 1,463 330 295 — — — — 1,868 1,758 
Other investments137 123 5 7 24 31 21 159 187 320 
Short-term investments1,178 1,476 331 361 244 185 1,646 899 3,399 2,921 
Total investments [1]40,029 38,603 12,355 12,332 341 308 2,053 1,787 54,778 53,030 
Cash [1]151 163 18 13 2 8 2 1 173 185 
Restricted cash87 72 10 5 — — — — 97 77 
Premiums receivable and agents’ balances, net3,941 3,901 509 483 — — — — 4,450 4,384 
Reinsurance recoverables, net [2]5,108 4,954 250 253 — — 310 320 5,668 5,527 
DAC760 726 41 51 7 8 — — 808 785 
Deferred income taxes (255)(168)(246)(179)4 6 546 640 49 299 
Goodwill778 780 723 723 181 181 229 229 1,911 1,913 
Property and equipment, net980 1,011 84 86 13 14 67 70 1,144 1,181 
Other intangible assets474 541 489 519 10 10 — — 973 1,070 
Other assets1,290 1,328 350 309 79 99 382 630 2,101 2,366 
Assets held for sale [3]167 — — — — — — — 167 — 
Total assets$53,510 $51,911 $14,583 $14,595 $637 $634 $3,589 $3,677 $72,319 $70,817 
Unpaid losses and loss adjustment expenses$29,151 $28,261 $8,155 $8,256 $— $— $— $— $37,306 $36,517 
Reserves for future policy benefits [2]— — 426 411 — — 224 224 650 635 
Other policyholder funds and benefits payable [2]— — 422 459 — — 289 296 711 755 
Unearned premiums6,715 6,596 46 39 — — — — 6,761 6,635 
Debt— — — — — — 4,351 4,848 4,351 4,848 
Other liabilities2,037 2,384 262 422 201 227 2,085 2,124 4,585 5,157 
Liabilities held for sale [3]153 — — — — — — — 153 — 
Total liabilities38,056 37,241 9,311 9,587 201 227 6,949 7,492 54,517 54,547 
Common stockholders' equity, excluding AOCI13,750 13,520 4,581 4,547 436 407 (2,155)(2,590)16,612 15,884 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax1,704 1,150 691 461 — — (1,539)(1,559)856 52 
Total stockholders' equity15,454 14,670 5,272 5,008 436 407 (3,360)(3,815)17,802 16,270 
Total liabilities and equity$53,510 $51,911 $14,583 $14,595 $637 $634 $3,589 $3,677 $72,319 $70,817 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.6 billion and $1.2 billion as of September 30, 2020 and December 31, 2019, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
[2]Corporate includes reserves and reinsurance recoverables for run-off structured settlement and terminal funding agreement liabilities.
[3]Related to the sale of Continental Europe Operations classified as held for sale beginning in the third quarter of 2020.
4


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019
DEBT
Short-term debt $— $— $— $500 $500 $500 $499 
Senior notes3,261 3,260 3,260 3,259 3,257 2,961 2,678 
Junior subordinated debentures1,090 1,090 1,089 1,089 1,089 1,089 1,089 
Total debt $4,351 $4,350 $4,349 $4,848 $4,846 $4,550 $4,266 
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI$16,612 $16,259 $15,889 $15,884 $15,530 $15,156 $14,891 
Preferred stock334 334 334 334 334 334 334 
AOCI856 479 (957)52 214 (198)(885)
Total stockholders’ equity$17,802 $17,072 $15,266 $16,270 $16,078 $15,292 $14,340 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$22,153 $21,422 $19,615 $21,118 $20,924 $19,842 $18,606 
Total capitalization, excluding AOCI, net of tax$21,297 $20,943 $20,572 $21,066 $20,710 $20,040 $19,491 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI19.6 %20.3 %22.2 %23.0 %23.2 %22.9 %22.9 %
Total debt to capitalization, excluding AOCI20.4 %20.8 %21.1 %23.0 %23.4 %22.7 %21.9 %
Total debt and preferred stock to capitalization, including AOCI21.1 %21.9 %23.9 %24.5 %24.8 %24.6 %24.7 %
Total debt and preferred stock to capitalization, excluding AOCI22.0 %22.4 %22.8 %24.6 %25.0 %24.4 %23.6 %
Total rating agency adjusted debt to capitalization [1] [2]22.9 %23.5 %25.6 %26.1 %26.6 %26.6 %25.7 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]8.2:17.7:15.4:19.8:19.7:110.1:111.9:1
[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $1.1 billion as of September 30, 2020 and 2019.
[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.
[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.
5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
SEPTEMBER 30, 2020

P&C GROUP BENEFITS
U.S. statutory net income [1][5]$1,061 $302 
U.S. statutory capital [2][5]$10,398 $2,645 
U.S. GAAP adjustments:
DAC762 41 
Non-admitted deferred tax assets [3]177 167 
Deferred taxes [4](994)(565)
Goodwill125 723 
Other intangible assets68 489 
Non-admitted assets other than deferred taxes772 135 
Asset valuation and interest maintenance reserve— 240 
Benefit reserves(71)6 
Unrealized gains on investments2,072 909 
Other, net944 482 
U.S. GAAP stockholders’ equity of U.S. insurance entities [5]14,253 5,272 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group1,201 — 
Total U.S. GAAP stockholders’ equity$15,454 $5,272 
[1]Statutory net income is for the nine months ended September 30, 2020.
[2]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".
[3]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
[4]Represents the tax timing differences between U.S. GAAP and U.S. STAT.
[5]Excludes insurance operations in the U.K. and Continental Europe.
6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019
Fixed maturities net unrealized gain$2,431 $2,055 $627 $1,684 $1,768 $1,367 $703 
Unrealized loss on fixed maturities with ACL(2)(2)(2)
OTTI losses recognized in AOCI(3)(3)(3)(3)
Net gains (losses) on cash flow hedging instruments31 48 53 9 17 11 — 
Total net unrealized gain$2,460 $2,101 $678 $1,690 $1,782 $1,375 $700 
Foreign currency translation adjustments33 27 26 34 30 34 31 
Pension and other postretirement plan adjustments(1,637)(1,649)(1,661)(1,672)(1,598)(1,607)(1,616)
Total AOCI $856 $479 $(957)$52 $214 $(198)$(885)
7


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Written premiums$2,980 $2,903 $3,152 $2,904 $3,057 $2,902 $2,720 $9,035 $8,679 
Change in unearned premium reserve(50)52 113 (169)4 114 144 115 262 
Earned premiums3,030 2,851 3,039 3,073 3,053 2,788 2,576 8,920 8,417 
Fee income 16 14 17 18 17 19 18 47 54 
Losses and loss adjustment expenses
Current accident year before catastrophes [1][2]1,802 1,828 1,806 1,900 1,867 1,696 1,537 5,436 5,100 
Current accident year catastrophes229 248 74 115 106 138 104 551 348 
Prior accident year development [1][3](75)(268)23 (42)(47)35 (11)(320)(23)
Total losses and loss adjustment expenses1,956 1,808 1,903 1,973 1,926 1,869 1,630 5,667 5,425 
Amortization of DAC404 412 420 421 420 375 339 1,236 1,134 
Underwriting expenses [4]539 540 597 625 567 550 495 1,676 1,612 
Amortization of other intangible assets8 9 8 9 8 4 3 25 15 
Dividends to policyholders 8 7 8 6 12 6 6 23 24 
Underwriting gain* [5]131 89 120 57 137 3 121 340 261 
Net investment income371 242 334 363 358 348 323 947 1,029 
Net realized capital gains (losses) [6](21)74 (173)52 73 66 143 (120)282 
Loss on reinsurance transaction— — — — — (91)— — (91)
Net servicing and other income (expense)(4)(7)(3)(10)(14)(2)2 (14)(14)
Income before income taxes477 398 278 462 554 324 589 1,153 1,467 
Income tax expense73 88 54 85 106 60 107 215 273 
Net income404 310 224 377 448 264 482 938 1,194 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [6]20 (71)173 (52)(72)(65)(140)122 (277)
Loss on reinsurance transaction, before tax— — — — — 91 — — 91 
Integration and transaction costs associated with an acquired business, before tax9 8 8 12 19 6 1 25 26 
Change in loss reserves upon acquisition of a business, before tax [1]— — — — — 97 — — 97 
Change in deferred gain on retroactive reinsurance, before tax [3]14 54 29 16 — — — 97 — 
Income tax expense (benefit) [7](19)8 (44)7 10 (26)29 (55)13 
Core earnings$428 $309 $390 $360 $405 $367 $372 $1,127 $1,144 
ROE
Net income available to common stockholders [8] 10.2 %11.0 %12.7 %16.1 %12.0 %11.6 %15.2 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital gains, excluded from core earnings, before tax [6]0.6 %(0.2 %)(0.2 %)(3.7 %)(1.6 %)(1.2 %)(1.2)%
Loss on reinsurance transaction, before tax— %— %1.0 %1.0 %1.0 %1.0 %— %
Integration and transaction costs associated with an acquired business, before tax0.3 %0.4 %0.5 %0.4 %0.3 %0.1 %— %
Changes in loss reserves upon acquisition of a business, before tax [1]— %— %1.1 %1.1 %1.1 %1.1 %— %
Change in deferred gain on retroactive reinsurance, before tax [3]1.0 %0.9 %0.5 %0.2 %— %— %— %
Income tax expense (benefit) [7](0.4 %)(0.2 %)(0.6 %)0.2 %(0.3 %)(0.3 %)0.1 %
Impact of AOCI, excluded from core earnings ROE1.5 %1.4 %0.5 %0.8 %0.8 %0.6 %0.7 %
Core earnings [8]13.2 %13.3 %15.5 %16.1 %13.3 %12.9 %14.8 %
[1]See [7] on page 2 for impact of Navigators Group acquisition for the nine months ended September 30, 2019.
[2]The three months ended September 30, 2020 included $37 of COVID-19 losses and loss adjustment expenses, including $20 for financial lines and other and $17 for workers' compensation net of favorable frequency. The nine months ended September 30, 2020 included $250 of COVID-19 losses and loss adjustment expenses, including $141 for commercial property, $57 for financial lines and other and $52 for workers' compensation net of favorable frequency.
[3]Prior accident year development does not include a benefit for the portion of losses ceded to National Indemnity Company ("NICO") under the Navigators ADC which are recognized as a deferred gain under retroactive reinsurance accounting.
[4]The three and nine months ended September 30, 2020 included an increase (decrease) in the allowance for credit losses ("ACL") on premiums receivable of $(1) and $47 respectively, due to the economic impacts of COVID-19.
[5]Excluding the non-core change in loss reserves upon acquisition of Navigators Group (see [7] on page 2), underwriting gain for the nine months ended September 30, 2019 was $358.
[6]See [1] on page 2 for impact of the loss on sale of Continental Europe Operations.
[7]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[8]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)
 THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines$— $22 $5 $— $25 $2 $— $27 $27 
Auto liability - Personal Lines(32)(15)(6)(10)(23)— (5)(53)(28)
Homeowners3 2 (2)3 (1)— 1 3 — 
Marine— 1 — — (2)10 — 1 8 
Professional liability(21)4 1 (3)(1)33 — (16)32 
Package business (18)(7)1 (15)(23)(14)5 (24)(32)
General liability(2)102 12 (1)19 37 6 112 62 
Bond— (10)— (1)(2)— — (10)(2)
Assumed Reinsurance— (7)— — — 3 — (7)3 
Commercial property(4)5 (7)5 (1)(13)(2)(6)(16)
Workers’ compensation (34)(21)(17)(30)(40)(30)(20)(72)(90)
Workers' compensation discount accretion9 9 9 8 8 9 8 27 25 
Catastrophes [1] — (400)(13)(15)(5)(14)(8)(413)(27)
Uncollectible reinsurance(6)(2)— (30)— — — (8)— 
Other reserve re-estimates16 (5)11 31 (1)12 4 22 15 
Prior accident year development before change in deferred gain(89)(322)(6)(58)(47)35 (11)(417)(23)
Change in deferred gain on retroactive reinsurance included in other liabilities [2]14 54 29 16 — — — 97 — 
Total prior accident year development [3]$(75)$(268)$23 $(42)$(47)$35 $(11)$(320)$(23)
[1]For the three months ended June 30, 2020 and nine months ended September 30, 2020, catastrophe reserve development included a $289 subrogation benefit related to 2017 and 2018 California wildfires, including $260 in Personal Lines and $29 in Commercial Lines.
[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. For the three months ended September 30, 2020, the $14 of adverse development related to the increase in the deferred gain primarily included increased reserves for construction account business within general liability, ocean marine, and assumed reinsurance.
[3]Total prior accident year development for the three months ended June 30, 2019 and nine months ended September 30, 2019 included $68 of reserve increases related to the Navigators Group acquisition, consisting of $34 for general liability, $25 for professional liability, $10 for marine, $3 for assumed reinsurance and $2 for commercial automobile liability, partially offset by a reserve decrease of $6 for commercial property.



9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
UNDERWRITING GAIN (LOSS)$131 $89 $120 $57 $137 $3 121 $340 $261 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1] [2]59.5 64.1 59.4 61.8 61.2 60.8 59.7 60.9 60.6 
Current accident year catastrophes7.6 8.7 2.4 3.7 3.5 4.9 4.0 6.2 4.1 
Prior accident year development [3][4](2.5)(9.4)0.8 (1.4)(1.5)1.3 (0.4)(3.6)(0.3)
Total losses and loss adjustment expenses64.6 63.4 62.6 64.2 63.1 67.0 63.3 63.5 64.5 
Expenses [5][6]30.9 33.2 33.2 33.7 32.0 32.6 31.8 32.4 32.2 
Policyholder dividends0.3 0.2 0.3 0.2 0.4 0.2 0.2 0.3 0.3 
Combined ratio95.7 96.9 96.1 98.1 95.5 99.9 95.3 96.2 96.9 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development [3](5.1)0.7 (3.2)(2.3)(2.0)(6.2)(3.6)(2.6)(3.8)
Current accident year change in loss reserves upon acquisition of a business— — — — — (1.1)— — (0.4)
Underlying combined ratio *90.6 97.6 92.9 95.8 93.6 92.6 91.7 93.6 92.7 
[1]The three and nine months ended September 30, 2020 included COVID-19 losses, net of favorable workers' compensation frequency, of 1.2 points and 2.8 points, respectively. See note [2] on page 8.
[2]The three months ended June 30, 2019 and nine months ended September 30, 2019, includes an increase in loss reserves of $29 upon acquisition of Navigators Group (see [7] on page 2).
[3]The three months ended June 30, 2019 and nine months ended September 30, 2019 include an increase in loss reserves of $68 upon acquisition of Navigators Group (see [7] on page 2).
[4]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.
[5]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[6]The three and nine months ended September 30, 2020 included an increase (decrease) in the ACL on premiums receivable of $(1) and $47 respectively, due to the economic impacts of COVID-19 representing (0.03) points and 0.5 points of the expense ratio, respectively.
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Written premiums$2,199 $2,165 $2,408 $2,190 $2,235 $2,078 $1,949 $6,772 $6,262 
Change in unearned premium reserve(52)8 143 (86)(15)91 172 99 248 
Earned premiums2,251 2,157 2,265 2,276 2,250 1,987 1,777 6,673 6,014 
Fee income8 5 8 9 8 9 9 21 26 
Losses and loss adjustment expenses
Current accident year before catastrophes [1][2]1,366 1,472 1,343 1,361 1,336 1,179 1,037 4,181 3,552 
Current accident year catastrophes 107 193 55 89 74 90 70 355 234 
Prior accident year development [1][3](57)77 41 (37)(19)22 (10)61 (7)
Total losses and loss adjustment expenses1,416 1,742 1,439 1,413 1,391 1,291 1,097 4,597 3,779 
Amortization of DAC344 351 356 356 356 310 274 1,051 940 
Underwriting expenses 391 387 443 461 410 392 337 1,221 1,139 
Amortization of other intangible assets8 7 7 7 7 2 2 22 11 
Dividends to policyholders8 7 8 6 12 6 6 23 24 
Underwriting gain (loss) [4]92 (332)20 42 82 (5)70 (220)147 
Net servicing income (loss)1 — 1 (1)2 2 (1)2 3 
Net investment income316 204 277 298 291 281 259 797 831 
Net realized capital gains (losses) [5](26)64 (143)42 60 54 115 (105)229 
Loss on reinsurance transaction— — — — — (91)— — (91)
Other expenses(8)(11)(6)(11)(20)(6)(1)(25)(27)
Income (loss) before income taxes375 (75)149 370 415 235 442 449 1,092 
Income tax expense (benefit)52 (9)28 68 79 44 79 71 202 
Net income (loss)323 (66)121 302 336 191 363 378 890 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax [5]25 (61)143 (42)(59)(54)(113)107 (226)
Integration and transaction costs associated with an acquired business, before tax [6]9 8 8 12 19 6 1 25 26 
Change in loss reserves upon acquisition of a business, before tax [1]— — — — — 97 — — 97 
Change in deferred gain on retroactive reinsurance, before tax14 54 29 16 — — — 97 — 
Loss on reinsurance transaction, before tax— — — — — 91 — — 91 
Income tax expense (benefit) [7](22)8 (39)4 7 (27)23 (53)3 
Core earnings (loss)$349 $(57)$262 $292 $303 $304 $274 $554 $881 
[1]See [7] on page 2 for impact related to Navigators Group acquisition for the nine months ended September 30, 2019.
[2]See [2] on page 8 for impact related to COVID-19.
[3]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.
[4]Excluding the non-core change in loss reserves upon acquisition of Navigators Group of $97 (see [7] on page 2), underwriting gain for the nine months ended September 30, 2019 was $244.
[5]See [1] on page 2 for impact of the loss on sale of Continental Europe Operations.
[6]Includes Navigators Group integration costs.
[7]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Auto liability$— $22 $5 $— $25 $2 $— $27 $27 
Professional liability (21)4 1 (3)(1)33 — (16)32 
Package business (18)(7)1 (15)(23)(14)5 (24)(32)
General liability(2)102 12 (1)19 37 6 112 62 
Marine— 1 — — (2)10 — 1 8 
Bond— (10)— (1)(2)— — (10)(2)
Assumed Reinsurance— (7)— — — 3 — (7)3 
Commercial property(4)5 (7)5 (1)(13)(2)(6)(16)
Workers’ compensation(34)(21)(17)(30)(40)(30)(20)(72)(90)
Workers' compensation discount accretion9 9 9 8 8 9 8 27 25 
Catastrophes— (67)(5)(7)(5)(16)(12)(72)(33)
Uncollectible reinsurance— — — (5)— — — — — 
Other reserve re-estimates (1)(8)13 (4)3 1 5 4 9 
Prior accident year development before change in deferred gain [1](71)23 12 (53)(19)22 (10)(36)(7)
Change in deferred gain on retroactive reinsurance included in other liabilities [2]14 54 29 16 — — — 97 — 
Total prior accident year development$(57)$77 $41 $(37)$(19)$22 $(10)$61 $(7)
[1]See [1] on page 9 for discussion related to catastrophes prior year development.
[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended September 30, 2020.
12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
UNDERWRITING GAIN (LOSS)$92 $(332)$20 $42 $82 $(5)$70 $(220)$147 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]60.7 68.2 59.3 59.8 59.4 59.3 58.4 62.7 59.1 
Current accident year catastrophes4.8 8.9 2.4 3.9 3.3 4.5 3.9 5.3 3.9 
Prior accident year development [2](2.5)3.6 1.8 (1.6)(0.8)1.1 (0.6)0.9 (0.1)
Total losses and loss adjustment expenses62.9 80.8 63.5 62.1 61.8 65.0 61.7 68.9 62.8 
Expenses [3]32.7 34.3 35.2 35.8 34.0 35.0 34.0 34.1 34.3 
Policyholder dividends0.4 0.3 0.4 0.3 0.5 0.3 0.3 0.3 0.4 
Combined ratio [4] 95.9 115.4 99.1 98.2 96.4 100.3 96.1 103.3 97.6 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(2.3)(12.5)(4.2)(2.3)(2.5)(5.6)(3.3)(6.2)(3.8)
Current accident year change in loss reserves upon acquisition of a business — — — — — (1.5)— — (0.5)
Underlying combined ratio 93.7 102.9 94.9 95.9 93.9 93.2 92.7 97.1 93.3 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio89.5 97.4 93.2 93.0 86.6 89.2 92.4 93.3 89.4 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(5.5)(13.2)(2.6)(4.4)(1.9)(5.6)(3.4)(7.0)(3.6)
Prior accident year development3.7 8.7 (1.3)3.1 3.2 4.3 (0.1)3.6 2.5 
Underlying combined ratio 87.7 92.9 89.3 91.7 87.9 87.8 88.9 89.9 88.2 
MIDDLE & LARGE COMMERCIAL
Combined ratio101.2 124.3 103.8 100.5 107.3 105.8 103.0 109.5 105.4 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(5.1)(9.8)(3.6)(4.2)(5.4)(4.1)(5.0)(6.1)(4.9)
Prior accident year development1.6 (1.6)0.2 1.1 (2.4)(0.7)0.2 0.1 (1.0)
Underlying combined ratio97.7 112.9 100.4 97.4 99.6 100.9 98.1 103.5 99.6 
GLOBAL SPECIALTY
Combined ratio [2] [4]99.6 113.8 102.2 104.5 97.9 120.4 85.7 105.2 103.1 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(3.2)(1.2)(0.6)(2.7)(2.9)(2.3)(2.3)(1.7)(2.6)
Prior accident year development [2]1.8 (7.1)(5.2)(1.1)1.1 (18.2)5.9 (3.5)(4.2)
Current accident year change in loss reserves upon acquisition of a business— — — — — (9.1)— — (2.9)
Underlying combined ratio98.2 105.5 96.4 100.8 96.2 90.7 89.4 100.0 93.4 
[1]The three and nine months ended September 30, 2020 included COVID-19 losses, net of favorable workers' compensation frequency, of 1.6 points and 3.7 points, respectively. See note [2] on page 8.
[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended September 30, 2020.
[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[4]The three and nine months ended September 30, 2020 included a change in deferred gain on retroactive reinsurance of $14 and $97, respectively, representing 0.6 points and 1.5 points, respectively of the Commercial Lines combined ratio and 2.5 points and 5.8 points, respectively, of the global specialty combined ratio.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
13

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
WRITTEN PREMIUMS
Small Commercial$890 $877 $1,011 $881 $897 $960 $1,010 $2,778 $2,867 
Middle & Large Commercial750 683 797 779 768 757 757 2,230 2,282 
Middle Market653 609 680 673 675 673 641 1,942 1,989 
National Accounts and Other97 74 117 106 93 84 116 288 293 
Global Specialty549 595 589 519 559 353 171 1,733 1,083 
U.S. [1]395 389 379 364 376 274 171 1,163 821 
International [2]88 119 98 113 115 43 — 305 158 
Global Re [3]66 87 112 42 68 36 — 265 104 
Other10 10 11 11 11 8 11 31 30 
Total$2,199 $2,165 $2,408 $2,190 $2,235 $2,078 $1,949 $6,772 $6,262 
EARNED PREMIUMS
Small Commercial$935 $877 $930 $939 $936 $933 $910 $2,742 $2,779 
Middle & Large Commercial749 713 772 786 765 729 703 2,234 2,197 
Middle Market646 625 673 683 674 637 608 1,944 1,919 
National Accounts and Other103 88 99 103 91 92 95 290 278 
Global Specialty555 557 552 542 538 314 153 1,664 1,005 
U.S. [1]387 368 374 360 362 241 153 1,129 756 
International [2]101 117 112 106 101 44 — 330 145 
Global Re [3]67 72 66 76 75 29 — 205 104 
Other12 10 11 9 11 11 11 33 33 
Total$2,251 $2,157 $2,265 $2,276 $2,250 $1,987 $1,777 $6,673 $6,014 
U.S. STANDARD COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION [4]
New Business Premium
Small Commercial$129 $118 $157 $138 $150 $183 $175 $404 $508 
Middle Market$131 $99 $125 $121 $146 $177 $140 $355 $463 
Renewal Price Increases [5]
Standard Commercial Lines - Written3.7 %3.8 %4.3 %3.6 %3.1 %2.1 %1.5 %4.0 %2.2 %
Standard Commercial Lines - Earned4.1 %3.8 %3.1 %2.5 %2.1 %2.1 %2.3 %3.7 %2.2 %
Policy Count Retention [5]
Small Commercial [6]79 %88 %84 %83 %83 %83 %84 %84 %83 %
Middle Market77 %79 %77 %77 %83 %81 %81 %78 %82 %
Premium Retention [5]
Small Commercial82 %86 %86 %86 %85 %86 %85 %85 %85 %
Middle Market75 %77 %82 %81 %83 %86 %84 %78 %84 %
Policies in Force (in thousands) [5]
Small Commercial 1,278 1,297 1,291 1,291 1,294 1,291 1,280 
Middle Market59606262646464
[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure").
[2]International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.
[3]Global Re includes assumed premiums previously written by Navigators Re.
[4]Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines.
[5]Middle market disclosures exclude loss sensitive and programs businesses.
[6]Policy count retention for small commercial increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium with resumption of non-payment cancellations in third quarter 2020.
14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Written premiums [1]$781 $738 $744 $714 $822 $824 $771 $2,263 $2,417 
Change in unearned premium reserve2 44 (30)(81)19 23 (28)16 14 
Earned premiums [1]779 694 774 795 803 801 799 2,247 2,403 
Fee income 8 9 9 9 9 10 9 26 28 
Losses and loss adjustment expenses
Current accident year before catastrophes436 356 463 539 531 517 500 1,255 1,548 
Current accident year catastrophes 122 55 19 26 32 48 34 196 114 
Prior accident year development (29)(349)(18)(17)(28)4 (1)(396)(25)
Total losses and loss adjustment expenses529 62 464 548 535 569 533 1,055 1,637 
Amortization of DAC60 61 64 65 64 65 65 185 194 
Underwriting expenses146 150 151 161 154 155 155 447 464 
Amortization of other intangible assets— 2 1 2 1 2 1 3 4 
Underwriting gain52 428 103 28 58 20 54 583 132 
Net servicing income5 3 2 2 4 4 3 10 11 
Net investment income41 28 41 45 46 46 42 110 134 
Net realized capital gains (losses)3 8 (23)7 9 8 19 (12)36 
Other income (expense)(2)1 — — — (2)1 (1)(1)
Income before income taxes99 468 123 82 117 76 119 690 312 
Income tax expense20 97 25 16 23 14 23 142 60 
Net income79 371 98 66 94 62 96 548 252 
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax(3)(8)23 (7)(9)(8)(18)12 (35)
Income tax expense (benefit) [2]1 1 (4)2 2 1 4 (2)7 
Core earnings$77 $364 $117 $61 $87 $55 $82 $558 $224 
[1]Written and earned premiums for the three months ended June 30, 2020 included a reduction of $81 for automobile premium credits given to policyholders because of the reduction in miles driven resulting from shelter-in-place guidelines due to COVID-19.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Auto liability$(32)$(15)$(6)$(10)$(23)$— $(5)$(53)$(28)
Homeowners3 2 (2)3 (1)— 1 3 — 
Catastrophes [1]— (333)(8)(8)— 2 4 (341)6 
Other reserve re-estimates, net— (3)(2)(2)(4)2 (1)(5)(3)
Total prior accident year development$(29)$(349)$(18)$(17)$(28)$4 $(1)$(396)$(25)
[1] The three months ended June 30, 2020 and the nine months ended September 30, 2020 included reductions in catastrophe reserves for various 2018 and 2019 wind and hail events and for the 2017 and 2018 California wildfires, including a $260 subrogation benefit from PG&E. See note [1] on page 9 for further discussion.

16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
UNDERWRITING GAIN$52 $428 $103 $28 $58 $20 $54 $583 $132 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes56.0 51.3 59.8 67.8 66.1 64.5 62.6 55.9 64.4 
Current accident year catastrophes15.7 7.9 2.5 3.3 4.0 6.0 4.3 8.7 4.7 
Prior accident year development(3.7)(50.3)(2.3)(2.1)(3.5)0.5 (0.1)(17.6)(1.0)
Total losses and loss adjustment expenses67.9 8.9 59.9 68.9 66.6 71.0 66.7 47.0 68.1 
Expenses25.4 29.4 26.7 27.5 26.2 26.5 26.5 27.1 26.4 
Combined ratio93.3 38.3 86.7 96.5 92.8 97.5 93.2 74.1 94.5 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
(12.0)42.4 (0.2)(1.2)(0.5)(6.5)(4.2)8.9 (3.7)
Underlying combined ratio81.4 80.7 86.6 95.3 92.3 91.0 89.1 83.0 90.8 
PRODUCT
Automobile
Combined ratio81.3 82.5 89.8 100.3 95.7 97.2 93.1 84.6 95.3 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(1.5)(1.8)(0.3)(0.6)(1.2)(0.9)(0.6)(1.2)(0.9)
Prior accident year development5.2 5.6 1.5 2.8 4.2 0.5 1.1 4.0 1.9 
Underlying combined ratio84.9 86.3 90.9 102.5 98.8 96.7 93.6 87.4 96.4 
Homeowners
Combined ratio122.9 (45.8)79.2 87.8 86.5 99.3 93.1 52.1 93.0 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(47.7)(20.1)(7.0)(9.2)(10.6)(17.6)(12.7)(24.9)(13.6)
Prior accident year development(1.2)136.0 4.0 0.4 0.7 (2.6)(2.1)46.2 (1.3)
Underlying combined ratio74.0 70.1 76.2 79.1 76.6 79.2 78.4 73.4 78.1 
17

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

 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$666 $627 $627 $590 $690 $692 $643 $1,920 $2,025 
AARP Agency53 50 57 58 59 60 62 160 181 
Other Agency54 54 52 58 64 63 58 160 185 
Other8 7 8 8 9 9 8 23 26 
Total$781 $738 $744 $714 $822 $824 $771 $2,263 $2,417 
EARNED PREMIUMS
AARP Direct$657 $581 $647 $664 $667 $663 $657 $1,885 $1,987 
AARP Agency56 52 60 61 62 63 65 168 190 
Other Agency57 54 60 63 64 66 68 171 198 
Other9 7 7 7 10 9 9 23 28 
Total$779 $694 $774 $795 $803 $801 $799 $2,247 $2,403 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$529 $481 $534 $495 $562 $564 $555 $1,544 $1,681 
Homeowners252 257 210 219 260 260 216 719 736 
Total$781 $738 $744 $714 $822 $824 $771 $2,263 $2,417 
EARNED PREMIUMS
Automobile$541 $456 $536 $551 $558 $557 $555 $1,533 $1,670 
Homeowners238 238 238 244 245 244 244 714 733 
Total$779 $694 $774 $795 $803 $801 $799 $2,247 $2,403 

18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile$55 $65 $58 $47 $58 $59 $56 $178 $173 
Homeowners$16 $18 $17 $16 $21 $20 $16 $51 $57 
Renewal Written Price Increases
Automobile2.2 %2.6 %3.1 %3.8 %4.1 %4.8 %5.5 %2.6 %4.8 %
Homeowners7.2 %5.1 %4.7 %5.1 %5.9 %7.0 %7.9 %5.7 %6.9 %
Renewal Earned Price Increases
Automobile3.1 %3.6 %4.2 %4.6 %5.1 %5.6 %6.5 %3.7 %5.8 %
Homeowners5.3 %5.4 %6.1 %7.0 %8.0 %8.9 %9.6 %5.6 %8.8 %
Policy Count Retention [1]
Automobile 84 %90 %86 %85 %85 %85 %85 %86 %85 %
Homeowners84 %89 %86 %85 %86 %85 %84 %86 %85 %
Premium Retention
Automobile [2]85 %74 %86 %86 %87 %87 %87 %81 %87 %
Homeowners91 %92 %89 %88 %90 %90 %89 %91 %90 %
Policies in Force (in thousands)
Automobile1,392 1,416 1,410 1,422 1,445 1,465 1,485 
Homeowners846 865 868 877 893 903 913 
[1] Policy count retention increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium (until May 31, 2020 in most states) and resumption of non-payment cancellations in third quarter 2020.
[2] Premium retention for automobile decreased in the three month period ended June 30, 2020 largely due to $81 of premium credits given to automobile policyholders. Excluding the impact of the premium credits, automobile premium retention would have been 88% in second quarter 2020. See footnote [1] on page 15 for further information.
19

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Written premiums$— $— $— $— $— $— $— $— $— 
Change in unearned premium reserve— — — (2)— — — — — 
Earned premiums— — — 2 — — — — — 
Losses and loss adjustment expenses
Prior accident year development 11 4 — 12 — 9 — 15 9 
Total losses and loss adjustment expenses11 4 — 12 — 9 — 15 9 
Underwriting expenses2 3 3 3 3 3 3 8 9 
Underwriting loss(13)(7)(3)(13)(3)(12)(3)(23)(18)
Net investment income14 10 16 20 21 21 22 40 64 
Net realized capital gains (losses)2 2 (7)3 4 4 9 (3)17 
Income before income taxes3 5 6 10 22 13 28 14 63 
Income tax expense1 — 1 1 4 2 5 2 11 
Net income2 5 5 9 18 11 23 12 52 
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax(2)(2)7 (3)(4)(3)(9)3 (16)
Income tax expense (benefit) [1]2 (1)(1)1 1 — 2 — 3 
Core earnings$2 $2 $11 $7 $15 $8 $16 $15 $39 
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Earned premiums$1,317 $1,378 $1,348 $1,345 $1,337 $1,377 $1,364 $4,043 $4,078 
Fee income44 45 43 45 45 45 45 132 135 
Net investment income117 92 115 123 121 121 121 324 363 
Net realized capital gains (losses)9 3 (8)8 14 7 5 4 26 
Total revenues1,487 1,518 1,498 1,521 1,517 1,550 1,535 4,503 4,602 
Benefits, losses and loss adjustment expenses [1]1,005 1,033 1,007 957 983 1,062 1,053 3,045 3,098 
Amortization of DAC13 13 13 13 14 14 13 39 41 
Insurance operating costs and other expenses [2]312 340 339 343 329 324 315 991 968 
Amortization of other intangible assets10 9 11 10 10 11 10 30 31 
Total benefits, losses and expenses1,340 1,395 1,370 1,323 1,336 1,411 1,391 4,105 4,138 
Income before income taxes147 123 128 198 181 139 144 398 464 
Income tax expense28 22 24 39 35 26 26 74 87 
Net income119 101 104 159 146 113 118 324 377 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(9)(2)8 (7)(15)(6)(5)(3)(26)
Integration and transaction costs associated with acquired business, before tax5 5 5 8 9 10 9 15 28 
Income tax expense (benefit) [3]1 (2)(2)1 1 (2)— (3)(1)
Core earnings$116 $102 $115 $161 $141 $115 $122 $333 $378 
Margin
Net income margin8.0 %6.7 %6.9 %10.5 %9.6 %7.3 %7.7 %7.2 %8.2 %
Core earnings margin*7.9 %6.9 %7.8 %10.6 %9.4 %7.5 %8.0 %7.5 %8.3 %
ROE
Net income available to common stockholders [4]11.0 %12.0 %13.4 %14.2 %12.9 %11.2 %11.1 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(0.3 %)(0.4 %)(0.6 %)(1.0 %)(0.1 %)0.4 %0.6 %
Integration and transaction costs associated with acquired business, before tax0.6 %0.7 %0.9 %1.1 %1.2 %1.3 %1.4 %
Income tax benefit [3](0.1 %)(0.1 %)(0.1 %)— %(0.4 %)(0.1 %)(0.1)%
Impact of AOCI, excluded from core earnings ROE1.8 %1.5 %0.6 %0.5 %0.7 %0.5 %0.3 %
Core earnings [4]13.0 %13.7 %14.2 %14.8 %14.3 %13.3 %13.3 %
[1]The three and nine months ended September 30, 2020 included $35 and $89, respectively, of incurred benefits and losses arising from the COVID-19 pandemic, with benefits and losses in the nine month period including $28 and $71, respectively, in group life claims and $7 and $18, respectively, in losses from short-term disability and New York Paid Family Leave claims.
[2]The three and nine months ended September 30, 2020 included ($8) and $8, respectively, of before tax increases (decreases) in the ACL on uncollectible premiums receivable with the increase for the nine month period due to the economic impacts of COVID-19.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA
 
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
PREMIUMS
Fully insured ongoing premiums
Group disability$652 $672 $660 $657 $652 $679 $659 $1,984 $1,990 
Group life 594 605 605 620 621 633 641 1,804 1,895 
Other [1]70 72 58 67 64 61 62 200 187 
Total fully insured ongoing premiums1,316 1,349 1,323 1,344 1,337 1,373 1,362 3,988 4,072 
Total buyouts [2]1 29 25 1 — 4 2 55 6 
Total premiums$1,317 $1,378 $1,348 $1,345 $1,337 $1,377 $1,364 $4,043 $4,078 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$55 $65 $213 $43 $29 $48 $219 $333 $296 
Group life69 73 136 16 30 43 143 278 216 
Other [1]10 11 36 8 15 8 45 57 68 
Total fully insured ongoing sales134 149 385 67 74 99 407 668 580 
Total buyouts [2]1 29 25 1 — 4 2 55 6 
Total sales$135 $178 $410 $68 $74 $103 $409 $723 $586 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]65.3 %62.6 %71.5 %62.0 %64.4 %72.9 %69.6 %66.4 %69.0 %
Group life loss ratio [4]87.5 %85.9 %74.6 %78.1 %80.8 %77.8 %81.3 %82.6 %80.0 %
Total loss ratio73.8 %72.0 %71.9 %68.8 %71.1 %74.6 %74.7 %72.6 %73.5 %
Expense ratio [5]24.3 %25.6 %26.2 %25.8 %24.9 %23.9 %23.4 %25.4 %24.1 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts. The nine months ended September 30, 2020 included buyout premiums primarily from two large accounts.
[3]The three and nine months ended September 30, 2020 included 1.0 points and 0.9 points, respectively, of incurred losses from COVID-19 short-term disability and New York paid family leave claims.
[4]The three and nine months ended September 30, 2020 included 4.7 points and 3.9 points, respectively, of incurred losses from COVID-19 group life claims.
[5]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.



22


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Investment management fees $182 $165 $178 $185 $183 $180 $171 $525 $534 
Shareholder servicing fees 22 20 22 22 22 21 21 64 64 
Other revenue47 43 48 51 50 52 48 138 150 
Net realized capital gains (losses)5 8 (11)2 1 — 2 2 3 
Total revenues 256 236 237 260 256 253 242 729 751 
Sub-advisory expense66 60 64 67 67 65 62 190 194 
Employee compensation and benefits29 28 32 28 26 28 32 89 86 
Distribution and service82 75 80 83 84 84 81 237 249 
General, administrative and other24 23 17 31 28 29 30 64 87 
Total expenses 201 186 193 209 205 206 205 580 616 
Income before income taxes55 50 44 51 51 47 37 149 135 
Income tax expense11 11 8 10 11 9 7 30 27 
Net income$44 $39 $36 $41 $40 $38 $30 $119 $108 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(5)(8)11 (1)(1)— (2)(2)(3)
Income tax expense (benefit) [1]1 2 (3)— — — — — — 
Core earnings$40 $33 $44 $40 $39 $38 $28 $117 $105 
Daily average Hartford Funds AUM$122,528$110,864$119,632$121,709$119,738$117,875$112,210$117,693 $116,635 
Return on assets (bps, net of tax) [2]
Net income14.4 14.1 12.0 13.0 13.3 12.9 10.9 13.5 12.4 
Core earnings*13.1 11.9 14.7 12.7 12.9 12.9 10.3 13.3 12.1 
ROE
Net income available to common stockholders [3]48.2 %48.2 %50.2 %49.7 %48.0 %49.7 %51.3 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains) excluded from core earnings, before tax(0.9 %)0.3 %3.0 %(1.4 %)— %0.4 %0.7 %
Income tax benefit [1]— %(0.3 %)(1.0 %)— %(0.3 %)(0.4 %)(0.4)%
Impact of AOCI, excluded from core earnings ROE0.3 %0.1 %(0.7 %)(0.5 %)(0.6 %)(0.6 %)(0.4)%
Core earnings [3]47.6 %48.3 %51.5 %47.8 %47.1 %49.1 %51.2 %
[1]Represents federal income tax benefit related to before tax items not included in core earnings.
[2]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).
23

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Equity Funds
Beginning balance $66,838 $55,076 $71,629 $66,999 $68,474 $66,158 $56,986 $71,629 $56,986 
Sales3,545 5,038 5,313 2,888 3,003 3,761 4,358 13,896 11,122 
Redemptions(5,102)(5,083)(5,701)(3,554)(3,867)(4,153)(3,893)(15,886)(11,913)
Net flows(1,557)(45)(388)(666)(864)(392)465 (1,990)(791)
Change in market value and other 5,368 11,807 (16,165)5,296 (611)2,708 8,707 1,010 10,804 
Ending balance$70,649 $66,838 $55,076 $71,629 $66,999 $68,474 $66,158 $70,649 $66,999 
Fixed Income Funds
Beginning balance $14,771 $14,558 $16,130 $15,685 $15,569 $15,070 $14,467 $16,130 $14,467 
Sales1,640 1,667 1,782 1,421 1,420 1,274 1,314 5,089 4,008 
Redemptions(1,121)(2,241)(2,632)(1,122)(1,491)(1,121)(1,138)(5,994)(3,750)
Net flows519 (574)(850)299 (71)153 176 (905)258 
Change in market value and other 365 787 (722)146 187 346 427 430 960 
Ending balance$15,655 $14,771 $14,558 $16,130 $15,685 $15,569 $15,070 $15,655 $15,685 
Multi-Strategy Investments Funds [1]
Beginning balance$20,526 $18,407 $21,332 $20,429 $20,095 $19,540 $18,233 $21,332 $18,233 
Sales693 801 1,026 952 776 672 640 2,520 2,088 
Redemptions(841)(733)(1,145)(825)(768)(823)(869)(2,719)(2,460)
Net flows(148)68 (119)127 8 (151)(229)(199)(372)
Change in market value and other 738 2,051 (2,806)776 326 706 1,536 (17)2,568 
Ending balance$21,116 $20,526 $18,407 $21,332 $20,429 $20,095 $19,540 $21,116 $20,429 
Exchange-traded Products ("ETP") AUM
Beginning balance$2,586 $2,574 $3,442 $2,847 $2,751 $2,457 $1,871 $3,442 $1,871 
Net flows(80)(124)(67)458 127 285 462 (271)874 
Change in market value and other115 136 (801)137 (31)9 124 (550)102 
Ending balance$2,621 $2,586 $2,574 $3,442 $2,847 $2,751 $2,457 $2,621 $2,847 
Mutual Fund and ETP AUM
Beginning balance$104,721 $90,615 $112,533 $105,960 $106,889 $103,225 $91,557 $112,533 $91,557 
Sales - mutual fund5,878 7,506 8,121 5,261 5,199 5,707 6,312 21,505 17,218 
Redemptions - mutual fund(7,064)(8,057)(9,478)(5,501)(6,126)(6,097)(5,900)(24,599)(18,123)
Net flows - ETP(80)(124)(67)458 127 285 462 (271)874 
Net flows - mutual fund and ETP(1,266)(675)(1,424)218 (800)(105)874 (3,365)(31)
Change in market value and other 6,586 14,781 (20,494)6,355 (129)3,769 10,794 873 14,434 
Ending balance
110,041 104,721 90,615 112,533 105,960 106,889 103,225 110,041 105,960 
Talcott Resolution life and annuity separate account AUM [2]13,669 13,123 11,538 14,425 14,021 14,412 14,364 13,669 14,021 
Hartford Funds AUM$123,710 $117,844 $102,153 $126,958 $119,981 $121,301 $117,589 $123,710 $119,981 
[1]Includes balanced, allocation, and alternative investment products.
[2]Represents AUM of the the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.
24


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS
 
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Fee income $13 $12 $13 $12 $14 $11 $13 $38 $38 
Other revenue (loss) [1](21)73 2 28 24 10 34 54 68 
Net investment income3 4 9 15 10 17 24 16 51 
Net realized capital gains (losses)13 24 (39)1 1 7 13 (2)21 
Total revenues8 113 (15)56 49 45 84 106 178 
Benefits, losses and loss adjustment expenses [2]1 6 6 9 5 3 2 13 10 
Insurance operating costs and other expenses9 29 21 17 20 33 13 59 66 
Loss on extinguishment of debt [3]— — — — 90 — — — 90 
Interest expense58 57 64 65 67 63 64 179 194 
Restructuring and other costs87 — — — — — — 87 — 
Total expenses155 92 91 91 182 99 79 338 360 
Income (loss) before income taxes(147)21 (106)(35)(133)(54)5 (232)(182)
Income tax expense (benefit)(39)3 (15)(6)(34)(11)5 (51)(40)
Net income (loss)(108)18 (91)(29)(99)(43)— (181)(142)
Preferred stock dividends6 5 5 5 11 — 5 16 16 
Net income (loss) available to common stockholders(114)13 (96)(34)(110)(43)(5)(197)(158)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(12)(26)40 (2)— (8)(13)2 (21)
Restructuring and other costs, before tax87 — — — — — — 87 — 
Loss on extinguishment of debt, before tax— — — — 90 — — — 90 
Transaction costs, before tax [4]— — — 1 1 15 — — 16 
Income tax expense (benefit) [5](18)7 (8)(4)(18)1 3 (19)(14)
Core losses$(57)$(6)$(64)$(39)$(37)$(35)$(15)$(127)$(87)
[1]The three months ended September 30, 2020 and 2019 include $(21)and $14, respectively, and the nine months ended September 30, 2020 and 2019 include $43 and $45, respectively, of income (loss) before tax from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.
[2]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[3]For the three and nine month periods ended September 30, 2019, amount relates to the redemptions of $265 of 5.75% senior notes that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes of The Hartford Financial Services Group, Inc.
[4]Related to transaction costs incurred in connection with the acquisition of Navigators Group that are included in insurance operating costs and other expenses.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
25


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable$287 $280 $298 $319 $306 $296 $284 $865 $886 
Tax-exempt72 77 79 81 86 90 97 228 273 
Total fixed maturities359 357 377 400 392 386 381 1,093 1,159 
Equity securities9 6 12 15 12 12 7 27 31 
Mortgage loans44 42 42 47 37 41 40 128 118 
Limited partnerships and other alternative investments [2]83 (71)58 51 65 60 56 70 181 
Other [3]14 21 (12)11 5 7 9 23 21 
Subtotal509 355 477 524 511 506 493 1,341 1,510 
Investment expense(17)(16)(18)(21)(21)(18)(23)(51)(62)
Total net investment income$492 $339 $459 $503 $490 $488 $470 $1,290 $1,448 
Annualized investment yield, before tax [4]3.8 %2.7 %3.7 %4.0 %4.0 %4.2 %4.1 %3.4 %4.1 %
Annualized limited partnerships and other alternative investment yield, before tax [4]18.3 %(15.3 %)13.2 %11.9 %15.3 %13.9 %13.4 %5.2 %14.7 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*3.3 %3.4 %3.3 %3.8 %3.6 %3.8 %3.7 %3.3 %3.7 %
Annualized investment yield, net of tax [4]3.2 %2.2 %3.0 %3.3 %3.3 %3.4 %3.4 %2.8 %3.4 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*2.7 %2.8 %2.7 %3.1 %3.0 %3.1 %3.1 %2.7 %3.1 %
Average reinvestment rate [5]2.1 %2.7 %2.9 %3.1 %3.1 %3.5 %4.1 %2.5 %3.5 %
Average sales/maturities yield [6]3.5 %3.6 %3.3 %3.8 %4.1 %4.0 %4.1 %3.5 %4.0 %
Portfolio duration (in years) [7]5.0 5.0 4.8 5.0 4.9 4.9 4.8 5.0 4.9 
[1]Includes income on short-term investments.
[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in fixed income, private equity and hedge funds.
[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value.
[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and repurchase agreement and securities lending collateral, if any.
[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.
[7]Excludes certain short-term investments.
* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

26

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable$210 $206 $216 $232 $218 $201 $182 $632 $601 
Tax-exempt53 57 58 59 65 68 73 168 206 
Total fixed maturities263 263 274 291 283 269 255 800 807 
Equity securities6 3 10 9 9 8 5 19 22 
Mortgage loans31 30 29 32 26 28 27 90 81 
Limited partnerships and other alternative investments [2]72 (62)48 38 52 50 46 58 148 
Other [3]12 19 (14)9 3 7 7 17 17 
Subtotal384 253 347 379 373 362 340 984 1,075 
Investment expense(13)(11)(13)(16)(15)(14)(17)(37)(46)
Total net investment income$371 $242 $334 $363 $358 $348 $323 $947 $1,029 
Annualized investment yield, before tax [4]3.9 %2.6 %3.6 %4.0 %4.0 %4.2 %4.2 %3.4 %4.2 %
Annualized limited partnerships and other alternative investment yield, before tax [4]19.2 %(15.9 %)13.1 %10.6 %14.6 %13.9 %13.0 %5.2 %14.3 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.3 %3.5 %3.2 %3.7 %3.6 %3.8 %3.8 %3.3 %3.7 %
Annualized investment yield, net of tax [4]3.3 %2.2 %3.0 %3.3 %3.3 %3.5 %3.6 %2.8 %3.5 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.7 %2.9 %2.7 %3.1 %3.0 %3.2 %3.2 %2.7 %3.1 %
Average reinvestment rate [5]2.0 %2.7 %2.9 %3.0 %3.1 %3.5 %4.1 %2.4 %3.5 %
Average sales/maturities yield [6]3.4 %3.5 %3.2 %3.8 %4.1 %3.9 %4.1 %3.4 %4.0 %
Portfolio duration (in years) [7]5.0 4.9 4.7 4.8 4.8 4.8 4.9 5.0 4.8 
Footnotes [1] through [7] are explained on page 26.


27

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Investment Income
Fixed maturities [1]
Taxable$76 $73 $76 $79 $81 $81 $81 $225 $243 
Tax-exempt17 18 19 20 20 20 22 54 62 
Total fixed maturities93 91 95 99 101 101 103 279 305 
Equity securities2 1 1 — 1 1 — 4 2 
Mortgage loans13 12 13 15 11 13 13 38 37 
Limited partnerships and other alternative investments [2]11 (9)10 13 13 10 10 12 33 
Other [3]2 2 1 1 1 — 1 5 2 
Subtotal121 97 120 128 127 125 127 338 379 
Investment expense(4)(5)(5)(5)(6)(4)(6)(14)(16)
Total net investment income$117 $92 $115 $123 $121 $121 $121 $324 $363 
Annualized investment yield, before tax [4]4.1 %3.2 %4.0 %4.3 %4.2 %4.2 %4.2 %3.7 %4.2 %
Annualized limited partnerships and other alternative investment yield, before tax [4]13.8 %(12.4 %)14.0 %18.2 %19.0 %14.0 %15.6 %5.0 %16.9 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.8 %3.6 %3.7 %3.9 %3.8 %3.9 %3.9 %3.7 %3.9 %
Annualized investment yield, net of tax [4]3.3 %2.6 %3.3 %3.5 %3.4 %3.4 %3.4 %3.1 %3.4 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]3.1 %3.0 %3.0 %3.2 %3.1 %3.2 %3.2 %3.0 %3.2 %
Average reinvestment rate [5]2.4 %3.3 %3.2 %3.3 %3.4 %3.8 %4.0 %2.9 %3.7 %
Average sales/maturities yield [6]3.8 %3.9 %4.0 %4.1 %4.3 %4.2 %4.0 %3.9 %4.2 %
Portfolio duration (in years) [7]6.2 6.1 5.9 6.1 6.0 5.9 5.8 6.2 6.0 
Footnotes [1] through [7] are explained on page 26.




28

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income by SegmentSept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Investment Income
Commercial Lines$316 $204 $277 $298 $291 $281 $259 $797 $831 
Personal Lines41 28 41 45 46 46 42 110 134 
P&C Other Operations14 10 16 20 21 21 22 40 64 
Total Property & Casualty371 242 334 363 358 348 323 947 1,029 
Group Benefits117 92 115 123 121 121 121 324 363 
Hartford Funds1 1 1 2 1 2 2 3 5 
Corporate3 4 9 15 10 17 24 16 51 
Total net investment income by segment$492 $339 $459 $503 $490 $488 $470 $1,290 $1,448 
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative InvestmentsSept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Total Property & Casualty$72 $(62)$48 $38 $52 $50 $46 $58 $148 
Group Benefits11 (9)10 13 13 10 10 12 33 
Total net investment income from limited partnerships and other alternative investments [1]$83 $(71)$58 $51 $65 $60 $56 $70 $181 
[1]Amounts are included above in total net investment income by segment.

29

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Realized Capital Gains (Losses)
Gross gains on sales$27 $96 $78 $44 $77 $69 $44 $201 $190 
Gross losses on sales(12)(22)(8)(12)(4)(19)(21)(42)(44)
Equity securities [1]42 75 (386)73 19 30 132 (269)181 
Net credit losses on fixed maturities, AFS(1)(20)(12)(33)
Change in ACL on mortgage loans5 (22)(2)(19)
Intent-to-sell impairments— — (5)— — — — (5)— 
Net impairment losses— (1)— (2)(3)
Valuation allowances on mortgage loans— — 1 — 1 
Other net gains (losses) [2](55)2 104 (42)(2)(1)10 51 7 
Total net realized capital gains (losses)6 109 (231)63 89 80 163 (116)332 
Net realized capital gains, included in core earnings, before tax— (2)(1)(1)(1)(1)(3)(3)(5)
Total net realized capital gains (losses) excluded from core earnings, before tax6 107 (232)62 88 79 160 (119)327 
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings5 (21)48 (11)(18)(18)(34)32 (70)
Total net realized capital gains (losses) excluded from core earnings, after tax$11 $86 $(184)$51 $70 $61 $126 $(87)$257 
[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and equity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation. The three and nine months ended September 30, 2020 included $0 and $75, respectively, of realized gains on terminated derivatives used to hedge against a decline in equity market levels. For the same periods, also includes a loss on sale of Continental Europe Operations of $51.


30

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019
 Amount [1]PercentAmountPercentAmountPercentAmount [1]PercentAmountPercent
Total investments$54,778 100.0 %$53,028 100.0 %$50,359 100.0 %$53,030 100.0 %$52,577 100.0 %
Asset-backed securities$1,490 3.4 %$1,416 3.3 %$1,348 3.4 %$1,476 3.5 %$1,337 3.1 %
Collateralized loan obligations2,449 5.6 %2,187 5.2 %1,989 5.0 %2,183 5.2 %2,158 5.1 %
Commercial mortgage-backed securities4,444 10.1 %4,211 10.0 %4,302 10.6 %4,338 10.3 %4,254 10.1 %
Corporate19,416 44.1 %18,563 44.0 %16,798 41.8 %17,396 41.4 %17,801 42.0 %
Foreign government/government agencies984 2.2 %972 2.3 %1,063 2.6 %1,123 2.7 %1,117 2.6 %
Municipal [2]9,310 21.1 %9,394 22.2 %9,497 23.6 %9,498 22.5 %9,895 23.4 %
Residential mortgage-backed securities4,548 10.3 %3,895 9.3 %4,086 10.2 %4,869 11.4 %4,732 11.1 %
U.S. Treasuries1,403 3.2 %1,562 3.7 %1,122 2.8 %1,265 3.0 %1,095 2.6 %
Total fixed maturities, available-for-sale$44,044 100.0 %$42,200 100.0 %$40,205 100.0 %$42,148 100.0 %$42,389 100.0 %
U.S. government/government agencies$5,650 12.8 %$5,204 12.3 %$5,126 12.8 %$5,644 13.4 %$5,588 13.2 %
AAA6,789 15.4 %6,471 15.3 %6,395 15.9 %6,617 15.7 %6,360 15.0 %
AA8,152 18.5 %8,013 19.0 %7,755 19.3 %8,146 19.3 %8,202 19.4 %
A11,414 25.9 %11,289 26.8 %10,541 26.2 %10,843 25.7 %10,894 25.7 %
BBB10,291 23.4 %9,590 22.7 %8,962 22.3 %9,530 22.6 %9,850 23.2 %
BB1,222 2.8 %1,112 2.6 %974 2.4 %877 2.1 %994 2.3 %
B480 1.1 %481 1.2 %408 1.0 %456 1.1 %463 1.1 %
CCC37 0.1 %31 0.1 %35 0.1 %26 0.1 %29 0.1 %
CC & below9 — %9 — %9 — %9 — %9 — %
Total fixed maturities, available-for-sale$44,044 100.0 %$42,200 100.0 %$40,205 100.0 %$42,148 100.0 %$42,389 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Primarily comprised of $6.9 billion in Property & Casualty, $2.2 billion in Group Benefits, and $0.2 billion in Corporate as of September 30, 2020.
31

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
SEPTEMBER 30, 2020
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$4,818 $5,117 9.3 %
Consumer non-cyclical2,882 3,140 5.7 %
Technology and communications2,611 2,924 5.3 %
Utilities1,971 2,174 4.0 %
Capital goods1,537 1,635 3.0 %
Energy [1]1,463 1,547 2.8 %
Consumer cyclical1,361 1,448 2.6 %
Transportation685 753 1.4 %
Basic industry691 740 1.4 %
Other730 757 1.4 %
Total$18,749 $20,235 36.9 %
Top Ten Exposures by Issuer [2]
New York City Transitional Finance Authority$214 $220 0.4 %
IBM Corporation191 217 0.4 %
Commonwealth of Massachusetts194 208 0.4 %
Comcast Corporation177 208 0.4 %
Apple Inc.171 202 0.4 %
Bank of America Corporation180 202 0.4 %
New York State Dormitory Authority189 200 0.4 %
Morgan Stanley165 186 0.3 %
Bristol-Myers Squibb Company163 186 0.3 %
BP PLC165 178 0.3 %
Total$1,809 $2,007 3.7 %
[1]Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of, or exposures to, energy-related companies.
[2]Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exchange-traded mutual funds, and exposures resulting from derivative transactions.

32


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
APPENDIX
BASIS OF PRESENTATION AND DEFINITIONS
All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.
The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.
Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 90% of the Company's asbestos and environmental exposures.
Group Benefits provides group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups and associations. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.
Hartford Funds provides investment management, administration, distribution and related services to investors through investment products in domestic markets. Mutual fund and exchange-traded products are sold primarily through retail, bank trust and registered investment advisor channels.
The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the holding company of the life and annuity business that we sold in May 2018. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold.
Certain operating and statistical measures for P&C standard commercial lines and for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include policies in-force, new business, premium retention, policy count retention and renewal earned and written price increases. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. 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. Renewal earned price increases represent the portions of the prior and current period renewal written price increases that have been earned based on the period of time the underlying renewal policies have been in effect. Renewal written price increases for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.
The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses less fee income to earned premiums. Underwriting expenses included in the expense ratio consists of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and transaction costs associated with an acquired business.The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
A catastrophe is a severe loss, resulting from natural or man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack, civil unrest and similar events. Each catastrophe has unique characteristics and the events are unpredictable as to timing or loss amount. Catastrophe losses are not included in either earnings or in losses and loss adjustment expense reserves prior to occurrence of the catastrophe event. The Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines catastrophes. The Company does not treat incurred benefits and losses arising from the COVID-19 pandemic as catastrophe losses.
The Company, along with others in the insurance industry, uses loss and expense ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and transaction costs associated with an acquired business) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.
The Hartford Funds segment provides supplemental data on sales, redemptions, net flows and account value that indicate current trends in that segment.
33

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized capital gains and losses - Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized 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. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.
•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
•Integration and transaction costs in connection with an acquired business - As transaction costs are incurred upon acquisition of a business and integration costs are completed within a short period after an acquisition, they do not represent ongoing costs of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
34

BASIC EARNINGS PER SHARE
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Income available to common stockholders per share
$1.26 $1.29 $0.75 $1.51 $1.45 $1.03 1.74 $3.30 $4.21 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized capital losses (gains), excluded from core earnings, before tax
(0.02)(0.30)0.65 (0.17)(0.24)(0.22)(0.44)0.33 (0.91)
Restructuring and other costs, before tax0.24 — — — — — — 0.24 — 
Loss on extinguishment of debt, before tax
— — — — 0.25 — — — 0.25 
Loss on reinsurance transactions, before tax
— — — — — 0.25 — — 0.25 
Integration and transaction costs associated with an acquired business, before tax
0.04 0.04 0.04 0.06 0.08 0.09 0.03 0.11 0.19 
Change in loss reserves upon acquisition of a business, before tax
— — — — — 0.27 — — 0.27 
Change in deferred gain on retroactive reinsurance, before tax
0.04 0.15 0.08 0.04 — — — 0.27 — 
Income tax expense (benefit) on items excluded from core earnings
(0.09)0.04 (0.17)0.01 (0.02)(0.08)0.08 (0.20)0.01 
Core earnings per share$1.47 $1.22 $1.35 $1.45 $1.52 $1.34 1.41 $4.05 $4.27 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
NINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net Income available to common stockholders per diluted share$1.26 $1.29 $0.74 $1.49 $1.43 $1.02 1.71 $3.29 $4.17 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized capital losses (gains), excluded from core earnings, before tax(0.02)(0.30)0.64 (0.17)(0.24)(0.22)(0.44)0.33 (0.90)
Restructuring and other costs, before tax0.24 — — — — — — 0.24 — 
Loss on extinguishment of debt, before tax
— — — — 0.25 — — — 0.25 
Loss on reinsurance transactions, before tax
— — — — — 0.25 — — 0.25 
Integration and transaction costs associated with an acquired business, before tax
0.04 0.04 0.04 0.06 0.08 0.08 0.03 0.11 0.19 
Change in loss reserves upon acquisition of a business, before tax
— — — — — 0.27 — — 0.27 
Change in deferred gain on retroactive reinsurance, before tax
0.04 0.15 0.08 0.04 — — — 0.27 — 
Income tax expense (benefit) on items excluded from core earnings
(0.10)0.04 (0.16)0.01 (0.02)(0.07)0.09 (0.22)(0.01)
Core earnings per diluted share
$1.46 $1.22 $1.34 $1.43 $1.50 $1.33 1.39 $4.02 $4.22 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:
35

 
LAST TWELVE MONTHS ENDED
 
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019
Net income ROE10.4 %11.3 %11.8 %14.4 %12.0 %11.8 %13.5 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized capital gains, excluded from core earnings, before tax0.3 %(0.2 %)— %(2.7 %)(1.1 %)(0.7 %)(0.5)%
Restructuring and other costs, before tax0.5 %— %— %— %— %— %— %
Loss on extinguishment of debt, before tax
— %0.6 %0.6 %0.6 %0.6 %— %— %
Loss on reinsurance transaction, before tax
— %— %0.6 %0.6 %0.6 %0.7 %— %
Integration and transaction costs associated with an acquired business, before tax
0.4 %0.5 %0.6 %0.6 %0.6 %0.5 %0.3 %
Changes in loss reserves upon acquisition of a business, before tax— %— %0.7 %0.7 %0.7 %0.7 %— %
Change in deferred gain on retroactive reinsurance, before tax0.7 %0.6 %0.3 %0.1 %— %— %— %
Income tax expense (benefit) on items not included in core earnings(0.4 %)(0.3 %)(0.6 %)— %(0.7 %)(0.5 %)(0.3)%
 Income from discontinued operations, net of tax — %— %— %— %— %— %(1.1)%
Impact of AOCI, excluded from denominator of core earnings ROE0.4 %0.2 %(0.7 %)(0.7 %)(0.4 %)(0.8 %)(0.4)%
Core earnings ROE12.3 %12.7 %13.3 %13.6 %12.3 %11.7 %11.5 %
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)-This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income$404 $310 $224 $377 $448 $264 $482 $938 $1,194 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(371)(242)(334)(363)(358)(348)(323)(947)(1,029)
Net realized capital losses (gains)21 (74)173 (52)(73)(66)(143)120 (282)
Net servicing and other expense (income)4 7 3 10 14 2 (2)14 14 
Loss on reinsurance transaction— — — — — 91 — — 91 
Income tax expense 73 88 54 85 106 60 107 215 273 
Underwriting gain 131 89 120 57 137 3 121 340 261 
Current accident year catastrophes229 248 74 115 106 138 104 551 348 
Prior accident year development(75)(268)23 (42)(47)35 (11)(320)(23)
Current accident year change in loss reserves upon acquisition of a business— — — — — 29 — — 29 
Underlying underwriting gain$285 $69 $217 $130 $196 $205 $214 $571 $615 
36

COMMERCIAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income$323 $(66)$121 $302 $336 $191 $363 $378 $890 
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing loss (income)(1)— (1)1 (2)(2)1 (2)(3)
Net investment income(316)(204)(277)(298)(291)(281)(259)(797)(831)
Net realized capital losses (gains)26 (64)143 (42)(60)(54)(115)105 (229)
Other expense 8 11 6 11 20 6 1 25 27 
Loss on reinsurance transaction— — — — — 91 — — 91 
Income tax expense (benefit)52 (9)28 68 79 44 79 71 202 
Underwriting gain (loss)92 (332)20 42 82 (5)70 (220)147 
Current accident year catastrophes107 193 55 89 74 90 70 355 234 
Prior accident year development(57)77 41 (37)(19)22 (10)61 (7)
Current accident year change in loss reserves upon acquisition of a business— — — — — 29 — — 29 
Underlying underwriting gain (loss)$142 $(62)$116 $94 $137 $136 $130 $196 $403 
PERSONAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income (loss)$79 $371 $98 $66 $94 $62 $96 $548 $252 
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income(5)(3)(2)(2)(4)(4)(3)(10)(11)
Net investment income(41)(28)(41)(45)(46)(46)(42)(110)(134)
Net realized capital losses (gains)(3)(8)23 (7)(9)(8)(19)12 (36)
Other expense (income)2 (1)— — — 2 (1)1 1 
Income tax expense20 97 25 16 23 14 23 142 60 
Underwriting gain 52 428 103 28 58 20 54 583 132 
Current accident year catastrophes122 55 19 26 32 48 34 196 114 
Prior accident year development(29)(349)(18)(17)(28)4 (1)(396)(25)
Underlying underwriting gain$145 $134 $104 $37 $62 $72 $87 $383 $221 
37

P&C OTHER OPERATIONS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income$2 $5 $5 $9 $18 $11 $23 $12 $52 
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income(14)(10)(16)(20)(21)(21)(22)(40)(64)
Net realized capital losses (gains)(2)(2)7 (3)(4)(4)(9)3 (17)
Income tax expense 1 — 1 1 4 2 5 2 11 
Underwriting loss(13)(7)(3)(13)(3)(12)(3)(23)(18)
Prior accident year development11 4 — 12 — 9 — 15 9 
Underlying underwriting loss$(2)$(3)$(3)$(1)$(3)$(3)$(3)$(8)$(9)
Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.
Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Net income margin8.0 %6.7 %6.9 %10.5 %9.6 %7.3 %7.7 %7.2 %8.2 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized capital losses (gains) excluded from core earnings, before tax(0.6)%(0.1)%0.6 %(0.5)%(0.9)%(0.4)%(0.3)%(0.1)%(0.5)%
Integration and transaction costs associated with acquired business, before tax0.3 %0.3 %0.3 %0.5 %0.6 %0.7 %0.6 %0.3 %0.6 %
Income tax expense (benefit)0.2 %(0.1)%(0.1)%0.1 %0.1 %(0.1)%— %— %— %
Impact of excluding buyouts from denominator of core earnings margin— %0.1 %0.1 %— %— %— %— %0.1 %— %
Core earnings margin7.9 %6.9 %7.8 %10.6 %9.4 %7.5 %8.0 %7.5 %8.3 %
Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.
38

THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Return on Assets ("ROA") 14.4 14.1 12.0 13.0 13.3 12.9 10.9 13.5 12.4 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized capital losses (gains), excluded from core earnings, before tax(1.6)(2.9)3.7 (0.3)(0.4)— (0.6)(0.2)(0.3)
Effect of income tax expense0.3 0.7 (1.0)— — — — — — 
Return on Assets ("ROA"), core earnings 13.1 11.9 14.7 12.7 12.9 12.9 10.3 13.3 12.1 





Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Total net investment income$492 $339 $459 $503 $490 $488 $470 $1,290 $1,448 
Adjustment for loss (gain) from limited partnerships and other alternative investments(83)71 (58)(51)(65)(60)(56)(70)(181)
Net investment income excluding limited partnerships and other alternative investments$409 $410 $401 $452 $425 $428 $414 $1,220 $1,267 
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Total net investment income$371 $242 $334 $363 $358 $348 $323 $947 $1,029 
Adjustment for loss (gain) from limited partnerships and other alternative investments(72)62 (48)(38)(52)(50)(46)(58)(148)
Net investment income excluding limited partnerships and other alternative investments$299 $304 $286 $325 $306 $298 $277 $889 $881 
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Total net investment income$117 $92 $115 $123 $121 $121 $121 $324 $363 
Adjustment for loss (gain) from limited partnerships and other alternative investments(11)9 (10)(13)(13)(10)(10)(12)(33)
Net investment income excluding limited partnerships and other alternative investments$106 $101 $105 $110 $108 $111 $111 $312 $330 
39

Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of annualized investment yield to annualized investment yield, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Annualized investment yield3.8 %2.7 %3.7 %4.0 %4.0 %4.2 %4.1 %3.4 %4.1 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.5)%0.7 %(0.4)%(0.2)%(0.4)%(0.4)%(0.4)%(0.1)%(0.4)%
Annualized investment yield excluding limited partnerships and other alternative investments3.3 %3.4 %3.3 %3.8 %3.6 %3.8 %3.7 %3.3 %3.7 %
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Annualized investment yield3.9 %2.6 %3.6 %4.0 %4.0 %4.2 %4.2 %3.4 %4.2 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.6)%0.9 %(0.4)%(0.3)%(0.4)%(0.4)%(0.4)%(0.1)%(0.5)%
Annualized investment yield excluding limited partnerships and other alternative investments3.3 %3.5 %3.2 %3.7 %3.6 %3.8 %3.8 %3.3 %3.7 %
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2020Jun 30 2020Mar 31 2020Dec 31 2019Sept 30 2019Jun 30 2019Mar 31 2019Sept 30 2020Sept 30 2019
Annualized investment yield4.1 %3.2 %4.0 %4.3 %4.2 %4.2 %4.2 %3.7 %4.2 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.3)%0.4 %(0.3)%(0.4)%(0.4)%(0.3)%(0.3)%— %(0.3)%
Annualized investment yield excluding limited partnerships and other alternative investments3.8 %3.6 %3.7 %3.9 %3.8 %3.9 %3.9 %3.7 %3.9 %
40

HARTFORD FINANCIAL SERVICES GROUP, INC. Reports