Exhibit

EX-99.2 3 ex992ifs093017.htm EXHIBIT 99.2 Exhibit

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2017

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of October 19, 2017
Address:
One Hartford Plaza		A.M. Best	Standard & Poor’s	Moody’s
Hartford, CT 06155	Insurance Financial Strength Ratings:
	Hartford Fire Insurance Company	A+	A+	A1
	Hartford Life and Accident Insurance Company	A	A	A2
	Hartford Life Insurance Company	A-	BBB+	Baa2
Internet address:	Hartford Life and Annuity Insurance Company	A-	BBB+	Baa2
http://www.thehartford.com
	Other Ratings:
	The Hartford Financial Services Group, Inc.:
	Senior debt	a-	BBB+	Baa2
Contacts:	Commercial paper	AMB-1	A-2	P-2
Sabra Purtill
Senior Vice President
Investor Relations & Treasurer
Phone (860) 547-8691


Sean Rourke	TRANSFER AGENT
Assistant Vice President	Shareholder correspondence should be mailed to:	Overnight correspondence should be mailed to:
Investor Relations	Computershare	Computershare
Phone (860) 547-5688	P.O. Box 505000	462 South 4th Street, Suite 1600
	Louisville, KY 40233	Louisville, KY 40202

COMMON STOCK

Common stock and warrants of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG/WS", 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



CONSOLIDATED	Consolidated Financial Results	1
	Consolidated Statements of Operations	2
	Operating Results by Segment	3
	Consolidating Balance Sheets	4
	Capital Structure	5
	Statutory Capital to GAAP Stockholders’ Equity Reconciliation	6
	Accumulated Other Comprehensive Income (Loss)	7

PROPERTY & CASUALTY	Property & Casualty Income Statements	8
	Property & Casualty Underwriting Ratios and Results	9
	Commercial Lines Income Statements	10
	Commercial Lines Underwriting Ratios	12
	Commercial Lines Supplemental Data	13
	Personal Lines Income Statements	14
	Personal Lines Underwriting Ratios	16
	Personal Lines Supplemental Data	17
	P&C Other Operations Income Statements	20

GROUP BENEFITS	Income Statements	21
	Supplemental Data	22

MUTUAL FUNDS	Income Statements	23
	Asset Value Rollforward - Assets Under Management By Asset Class	24

TALCOTT RESOLUTION	Financial Highlights	25
	Individual Annuity - Supplemental Data	26
	Individual Annuity - Account Value Rollforward	27

CORPORATE	Income Statements	28

INVESTMENTS	Investment Earnings Before Tax - Consolidated	29
	Investment Earnings Before Tax - Property & Casualty	30
	Net Investment Income	31
	Components of Net Realized Capital Gains (Losses)	32
	Composition of Invested Assets	33
	Invested Asset Exposures	34

APPENDIX	Basis of Presentation and Definitions	35
	Discussion of Non-GAAP and Other Financial Measures	36

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017		Sept 30 2016
HIGHLIGHTS
Net income (loss)	$	234		$	(40	)	$	378		$	(81	)	$	438		$	216		$	323		$	572	$	977
Core earnings *	$	222		$	389		$	378		$	415		$	413		$	122		$	385		$	989	$	920
Total revenues	$	4,684		$	4,769		$	4,655		$	4,557		$	4,715		$	4,696		$	4,410		$	14,108	$	13,821
Total assets	$224,211			$225,863			$225,388			$223,432			$228,430			$227,616			$227,493
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income (loss)	$	0.65		$	(0.11	)	$	1.02		$	(0.22	)	$	1.14		$	0.55		$	0.81		$	1.56	$	2.50
Core earnings *	$	0.62		$	1.06		$	1.02		$	1.10		$	1.08		$	0.31		$	0.97		$	2.70	$	2.35
Diluted earnings per common share
Net income (loss)	$	0.64		$	(0.11	)	$	1.00		$	(0.22	)	$	1.12		$	0.54		$	0.79		$	1.54	$	2.45
Core earnings *	$	0.60		$	1.04		$	1.00		$	1.08		$	1.06		$	0.31		$	0.95		$	2.65	$	2.31
Weighted average common shares outstanding (basic)	360.2			366.0			371.4			376.6			383.8			391.8			398.5			365.9		391.4
Dilutive effect of stock compensation	4.5			3.8			4.2			3.7			3.2			3.2			4.2			4.1		3.5
Dilutive effect of warrants	2.3			2.5			3.0			3.5			3.5			3.6			3.6			2.6		3.6
Weighted average common shares outstanding and dilutive potential common shares (diluted)	367.0			372.3			378.6			383.8			390.5			398.6			406.3			372.6		398.5
Common shares outstanding	357.5			362.8			369.2			373.9			379.6			387.9			395.6
Book value per common share	$	48.20		$	47.65		$	46.07		$	45.21		$	49.15		$	47.84		$	45.78
Per common share impact of accumulated other comprehensive income [1]	$	1.63		$	1.36		$	(0.56	)	$	(0.90	)	$	2.60		$	2.32		$	0.64
Book value per common share (excluding AOCI) *	$	46.57		$	46.29		$	46.63		$	46.11		$	46.55		$	45.52		$	45.14
Book value per diluted share	$	47.33		$	46.84		$	45.25		$	44.35		$	48.30		$	47.02		$	44.90
Per diluted share impact of AOCI	$	1.61		$	1.34		$	(0.55	)	$	(0.89	)	$	2.56		$	2.28		$	0.63
Book value per diluted share (excluding AOCI) *	$	45.72		$	45.50		$	45.80		$	45.24		$	45.74		$	44.74		$	44.27
Common shares outstanding and dilutive potential common shares	364.1			369.1			375.9			381.1			386.3			394.7			403.4
RETURN ON EQUITY ("ROE") [3]
ROE - Net income (net income last 12 months to stockholders' equity including AOCI)	2.7		%	3.9		%	5.4		%	5.2		%	7.6		%	7.3		%	8.3		%
ROE - Net income, excluding Talcott Resolution [2]	2.4		%	4.2		%	6.5		%	6.8		%	10.8		%	10.5		%	11.0		%
ROE - Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI) *	8.2		%	9.3		%	7.6		%	7.6		%	7.6		%	7.4		%	8.8		%
ROE - Core earnings, excluding Talcott Resolution * [2]	9.7		%	11.3		%	8.6		%	8.9		%	9.1		%	8.9		%	10.3		%


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


[2]	ROE assumes debt and interest is attributed to Talcott Resolution consistent with the overall debt to capitalization ratios of the consolidated entity. For further information, see Appendix, page 37.


[3]	For reconciliations of ROE - Net income to ROE - Core earnings, see Appendix, page 36.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Earned premiums	$	3,474		$	3,490		$	3,473		$	3,479		$	3,484		$	3,444		$	3,404		$	10,437		$	10,332
Fee income	460			466			455			450			452			441			445			1,381			1,338
Net investment income	729			715			728			758			772			735			696			2,172			2,203
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(5		)	(16		)	(3		)	(14		)	(15		)	(8		)	(27		)	(24		)	(50		)
OTTI losses recognized in other comprehensive income	3			2			2			2			1			1			4			7			6
Net OTTI losses recognized in earnings	(2		)	(14		)	(1		)	(12		)	(14		)	(7		)	(23		)	(17		)	(44		)
Other net realized capital gains (losses)	(1		)	89			(19		)	(137		)	(3		)	60			(132		)	69			(75		)
Total net realized capital gains (losses)	(3		)	75			(20		)	(149		)	(17		)	53			(155		)	52			(119		)
Other revenues	24			23			19			19			24			23			20			66			67
Total revenues	4,684			4,769			4,655			4,557			4,715			4,696			4,410			14,108			13,821
Benefits, losses and loss adjustment expenses	2,994			2,767			2,757			2,788			2,780			3,142			2,641			8,518			8,563
Amortization of DAC	357			368			363			378			403			368			374			1,088			1,145
Insurance operating costs and other expenses	995			1,692			965			934			918			931			928			3,652			2,777
Loss on reinsurance transaction	—			—			—			650			—			—			—			—			—
Interest expense	82			81			83			82			86			85			86			246			257
Total benefits, losses and expenses	4,428			4,908			4,168			4,832			4,187			4,526			4,029			13,504			12,742
Income (loss) before income taxes	256			(139		)	487			(275		)	528			170			381			604			1,079
Income tax expense (benefit)	22			(99		)	109			(194		)	90			(46		)	58			32			102
Net income (loss)	234			(40		)	378			(81		)	438			216			323			572			977
Less: Unlock benefit (charge), before tax	23			20			18			(20		)	(13		)	18			13			61			18
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(5		)	75			(20		)	(146		)	(13		)	51			(148		)	50			(110		)
Less: Loss on reinsurance transaction, before tax	—			—			—			(650		)	—			—			—			—			—
Less: Pension settlement, before tax	—			(750		)	—			—			—			—						(750		)	—
Less: Income tax benefit (expense) [1]	(6		)	226			2			320			51			25			73			222			149
Core earnings	$	222		$	389		$	378		$	415		$	413		$	122		$	385		$	989		$	920

[1]

Primarily represents federal income tax benefit (expense) related to before tax items not included in core earnings. For the three and nine months ended September 30, 2016, also included a $65 tax benefit recognized related to the sale of the Company's U.K. property and casualty run-off subsidiaries and for the nine months ended September 30, 2016 included federal income tax benefits of $78 from the reduction of the deferred tax valuation allowance on capital loss carryovers.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Net income (loss):
Commercial Lines	$	90		$	258		$	231		$	264		$	268		$	237		$	225		$	579		$	730
Personal Lines	8			24			33			(15		)	33			(50		)	23			65			6
P&C Other Operations	18			20			24			(423		)	31			(154		)	17			62			(106		)
Property & Casualty ("P&C")	116			302			288			(174		)	332			33			265			706			630
Group Benefits	71			69			45			63			62			55			50			185			167
Mutual Funds	26			24			23			17			21			20			20			73			61
Sub-total	$	213		$	395		$	356		$	(94	)	$	415		$	108		$	335		$	964		$	858
Talcott Resolution	80			105			68			45			78			104			17			253			199
Corporate	(59		)	(540		)	(46		)	(32		)	(55		)	4			(29		)	(645		)	(80		)
Net income (loss)	$	234		$	(40	)	$	378		$	(81	)	$	438		$	216		$	323		$	572		$	977

Core earnings (losses):
Commercial Lines	$	81		$	238		$	224		$	274		$	243		$	221		$	246		$	543		$	710
Personal Lines	7			20			32			(14		)	29			(52		)	26			59			3
P&C Other Operations	18			18			21			15			19			(154		)	19			57			(116		)
P&C	$	106		$	276		$	277		$	275		$	291		$	15		$	291		$	659		$	597
Group Benefits	66			61			40			59			51			46			48			167			145
Mutual Funds	26			24			23			17			21			20			20			73			61
Sub-total	198			361			340			351			363			81			359			899			803
Talcott Resolution	83			80			83			111			104			91			77			246			272
Corporate	(59		)	(52		)	(45		)	(47		)	(54		)	(50		)	(51		)	(156		)	(155		)
Core earnings	$	222		$	389		$	378		$	415		$	413		$	122		$	385		$	989		$	920

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS



	PROPERTY & CASUALTY				GROUP BENEFITS						MUTUAL FUNDS					TALCOTT RESOLUTION				CORPORATE						CONSOLIDATED
	Sept 30 2017		Dec 31 2016		Sept 30 2017			Dec 31 2016			Sept 30 2017			Dec 31 2016		Sept 30 2017		Dec 31 2016		Sept 30 2017			Dec 31 2016			Sept 30 2017		Dec 31 2016
Investments
Fixed maturities, available-for-sale, at fair value	$	25,834	$	24,386	$	7,338		$	6,931		$	55		$	21	$	23,648	$	23,813	$	794		$	852		$	57,669	$	56,003
Fixed maturities, at fair value using the fair value option	33		102		12			109			—			—		37		82		—			—			82		293
Equity securities, available-for-sale, at fair value	745		794		51			10			10			—		154		151		152			142			1,112		1,097
Mortgage loans	2,328		2,015		851			871			—			—		2,879		2,811		—			—			6,058		5,697
Policy loans, at outstanding balance	—		—		1			1			—			—		1,417		1,443		—			—			1,418		1,444
Limited partnerships and other alternative investments	1,366		1,337		203			190			—			—		964		929		—			—			2,533		2,456
Other investments	108		103		2			4			(1		)	—		256		295		—			1			365		403
Short-term investments	1,310		1,162		318			223			162			162		1,415		1,366		551			331			3,756		3,244
Total investments	$	31,724	$	29,899	$	8,776		$	8,339		$	226		$	183	$	30,770	$	30,890	$	1,497		$	1,326		$	72,993	$	70,637
Cash	74		298		12			25			7			5		239		554		1			—			333		882
Premiums receivable and agents’ balances	3,516		3,388		286			342			—			—		2		1		—			—			3,804		3,731
Reinsurance recoverables	2,355		2,373		559			574			—			—		20,409		20,364		—			—			23,323		23,311
DAC	596		591		43			42			10			12		986		1,066		—			—			1,635		1,711
Deferred income taxes	250		517		(180		)	(111		)	9			6		985		1,206		1,702			1,663			2,766		3,281
Goodwill	157		157		—			—			180			180		—		—		230			230			567		567
Property and equipment, net	833		859		53			54			—			—		68		69		8			9			962		991
Other assets	1,054		1,004		250			140			97			94		735		512		66			36			2,202		1,786
Assets held for sale	—		870		—			—			—			—		—		—		—			—			—		870
Separate account assets [1]	—		—		—			—			—			—		115,626		115,665		—			—			115,626		115,665
Total assets	$	40,559	$	39,956	$	9,799		$	9,405		$	529		$	480	$	169,820	$	170,327	$	3,504		$	3,264		$	224,211	$	223,432
Unpaid losses and loss adjustment expenses	$	22,549	$	21,833	$	5,683		$	5,772		$	—		$	—	$	—	$	—	$	—		$	—		$	28,232	$	27,605
Reserves for future policy benefits	—		—		316			322			—			—		13,931		13,607		—			—			14,247		13,929
Other policyholder funds and benefits payable	—		—		585			602			—			—		29,566		30,574		—			—			30,151		31,176
Unearned premiums	5,382		5,350		40			42			—			—		106		107		—			—			5,528		5,499
Debt	—		—		—			—			—			—		142		142		4,996			4,910			5,138		5,052
Other liabilities	1,913		1,723		740			305			190			165		2,319		1,958		2,894			2,841			8,056		6,992
Liabilities held for sale	—		611		—			—			—			—		—		—		—			—			—		611
Separate account liabilities	—		—		—			—			—			—		115,626		115,665		—			—			115,626		115,665
Total liabilities	$	29,844	$	29,517	$	7,364		$	7,043		$	190		$	165	$	161,690	$	162,053	$	7,890		$	7,751		$	206,978	$	206,529
Common equity, excluding AOCI	9,991		9,977		2,221			2,219			339			315		7,199		7,553		(3,102		)	(2,824		)	16,648		17,240
AOCI, after-tax	724		462		214			143			—			—		931		721		(1,284		)	(1,663		)	585		(337		)
Total stockholders’ equity	10,715		10,439		2,435			2,362			339			315		8,130		8,274		(4,386		)	(4,487		)	17,233		16,903
Total liabilities and equity	$	40,559	$	39,956	$	9,799		$	9,405		$	529		$	480	$	169,820	$	170,327	$	3,504		$	3,264		$	224,211	$	223,432


[1]	Excludes Mutual Funds assets under management ("AUM") owned by the shareholders of those funds and not by the Company.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE



	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
DEBT
Short-term debt	$	320		$	320		$	320		$	416		$	690		$	690		$	690
Senior notes	3,236			3,235			3,234			3,553			3,552			3,551			3,550
Junior subordinated debentures	1,582			1,582			1,583			1,083			1,083			1,083			1,083
Total debt	$	5,138		$	5,137		$	5,137		$	5,052		$	5,325		$	5,324		$	5,323
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	16,648		$	16,794		$	17,216		$	17,240		$	17,671		$	17,659		$	17,858
AOCI	585			494			(207		)	(337		)	987			900			254
Total stockholders’ equity	$	17,233		$	17,288		$	17,009		$	16,903		$	18,658		$	18,559		$	18,112
CAPITALIZATION
Total capitalization, including AOCI, after-tax	$	22,371		$	22,425		$	22,146		$	21,955		$	23,983		$	23,883		$	23,435
Total capitalization, excluding AOCI, after-tax	$	21,786		$	21,931		$	22,353		$	22,292		$	22,996		$	22,983		$	23,181
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	23.0		%	22.9		%	23.2		%	23.0		%	22.2		%	22.3		%	22.7		%
Total debt to capitalization, excluding AOCI	23.6		%	23.4		%	23.0		%	22.7		%	23.2		%	23.2		%	23.0		%
Total rating agency adjusted debt to capitalization [1] [2]	24.7		%	25.6		%	25.5		%	25.8		%	25.8		%	25.9		%	26.4		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges (after interest credited to contractholders) [3]	1.8:1			1.7:1			3.1:1			1.8:1			2.5:1			2.1:1			2.6:1
Total earnings to total fixed charges (before interest credited to contractholders) [4]	3.3:1			3.0:1			6.5:1			3.2:1			5.0:1			4.0:1			5.1:1

[1]

The leverage calculation reflects adjustments related to the Company’s defined benefit plans unfunded pension liability and the Company's rental expense on operating leases for total adjustments of $1.0 billion, $1.4 billion, $1.2 billion, $1.2 billion, $1.5 billion, $1.5 billion and $1.5 billion, as of September 31, 2017, June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively.


[2]	Reflects 25% equity credit for the Company's outstanding junior subordinated debentures.

[3]

Calculated as total earnings divided by total fixed charges. Total earnings represent income from continuing operations before income taxes, total fixed charges and interest credited to contractholders, less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include: interest expense, rent expense, capitalized interest, amortization of debt issuance costs and interest credited to contractholders. Interest credited to contractholders includes interest credited on general account assets and interest credited on consumer notes.


[4]	Calculated as total earnings divided by total fixed charges. Total earnings represent income from continuing operations before income taxes and total fixed charges, less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include: interest expense, rent expense, capitalized interest and amortization of debt issuance costs.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

SEPTEMBER 30, 2017



	P&C			GROUP BENEFITS			TALCOTT RESOLUTION
U.S. statutory net income [1]	$	743		$	186		$	198
U.S. statutory capital [2]	$	8,241		$	1,624		$	4,101
U.S. GAAP adjustments:
DAC	596			43			986
Non-admitted deferred tax assets [3]	376			12			1,461
Deferred taxes [4]	(1,131		)	(325		)	(1,044		)
Goodwill	108			—			—
Non-admitted assets other than deferred taxes	660			85			19
Asset valuation and interest maintenance reserve	—			194			565
Benefit reserves	(39		)	214			83
Unrealized gains on investments	1,028			333			1,371
Other, net	876			255			588
U.S. GAAP stockholders’ equity	$	10,715		$	2,435		$	8,130


[1]	Statutory net income is for the nine months ended September 30, 2017.


[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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	AS OF
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
Fixed maturities net unrealized gain	$	1,774		$	1,696		$	1,355		$	1,226		$	2,418		$	2,406		$	1,780
Equities net unrealized gain	66			59			58			50			41			31			21
OTTI losses recognized in AOCI	(4		)	(3		)	(4		)	(3		)	(5		)	(10		)	(15		)
Net gain on cash flow hedging instruments	43			57			58			76			172			200			184
Total net unrealized gain	$	1,879		$	1,809		$	1,467		$	1,349		$	2,626		$	2,627		$	1,970
Foreign currency translation adjustments	27			13			8			6			10			(68		)	(49		)
Pension and other postretirement adjustment	(1,321		)	(1,328		)	(1,682		)	(1,692		)	(1,649		)	(1,659		)	(1,667		)
Total AOCI	$	585		$	494		$	(207	)	$	(337	)	$	987		$	900		$	254

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Written premiums	$	2,626		$	2,631		$	2,710		$	2,555		$	2,673		$	2,661		$	2,679		$	7,967		$	8,013
Change in unearned premium reserve	(18		)	(19		)	88			(113		)	16			35			81			51			132
Earned premiums	2,644			2,650			2,622			2,668			2,657			2,626			2,598			7,916			7,881
Fee income	20			20			21			20			20			19			19			61			58
Losses and loss adjustment expenses
Current accident year before catastrophes	1,672			1,646			1,612			1,714			1,688			1,627			1,545			4,930			4,860
Current accident year catastrophes [1]	352			155			150			61			80			184			91			657			355
Prior accident year development	(1		)	(10		)	12			48			25			351			33			1			409
Total losses and loss adjustment expenses	2,023			1,791			1,774			1,823			1,793			2,162			1,669			5,588			5,624
Amortization of DAC	329			331			330			330			329			331			331			990			991
Underwriting expenses	497			468			466			456			457			464			475			1,431			1,396
Dividends to policyholders	4			3			4			3			4			4			4			11			12
Underwriting gain (loss) *	(189		)	77			69			76			94			(316		)	138			(43		)	(84		)
Net investment income	303			302			310			310			305			292			272			915			869
Net realized capital gains (losses)	16			42			17			(46		)	(3		)	35			(41		)	75			(9		)
Loss on reinsurance transaction	—			—			—			650			—			—			—			—			—
Net servicing and other income	9			4			5			6			9			5			7			18			21
Income (loss) before income taxes	139			425			401			(304		)	405			16			376			965			797
Income tax expense (benefit)	23			123			113			(130		)	73			(17		)	111			259			167
Net income (loss)	116			302			288			(174		)	332			33			265			706			630
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	16			41			17			(45		)	(3		)	35			(40		)	74			(8		)
Less: Loss on reinsurance transaction, before tax	—			—			—			(650		)	—			—			—			—			—
Less: Income tax benefit (expense) on items not included in core earnings	(6		)	(15		)	(6		)	246			44			(17		)	14			(27		)	41
Core earnings	$	106		$	276		$	277		$	275		$	291		$	15		$	291		$	659		$	597
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	5.0		%	7.5		%	4.5		%	4.3		%	10.4		%	9.3		%	11.1		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	0.3		%	0.1		%	—		%	(0.6		)%	—		%	(0.2		)%	(0.6		)%
Less: Loss on reinsurance transaction, before tax	(7.6		)%	(7.6		)%	(7.7		)%	(7.9		)%	—		%	—		%	—		%
Less: Income tax benefit (expense) on items not included in core earnings	2.6		%	3.1		%	3.2		%	3.5		%	0.5		%	—		%	0.2		%
Less: Income from discontinued operations, after-tax	—		%	—		%	—		%	—		%	—		%	0.1		%	0.1		%
Less: Impact of AOCI, excluded from Core ROE	(1.0		)%	(1.2		)%	(0.6		)%	(0.6		)%	(1.1		)%	(0.9		)%	(1.3		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	10.7		%	13.1		%	9.6		%	9.9		%	11.0		%	10.3		%	12.7		%

[1] The three and nine months ended September 30, 2017, includes catastrophe losses from Hurricane Harvey and Hurricane Irma of $175 and $157, respectively.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS AND RESULTS



	THREE MONTHS ENDED																	NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016			Mar 31 2016		Sept 30 2017			Sept 30 2016
UNDERWRITING GAIN (LOSS)	$	(189	)	$	77		$	69	$	76	$	94	$	(316	)	$	138	$	(43	)	$	(84	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	63.2			62.1			61.5		64.2		63.5		62.0			59.5		62.3			61.7
Current accident year catastrophes	13.3			5.8			5.7		2.3		3.0		7.0			3.5		8.3			4.5
Prior accident year development [1]	—			(0.4		)	0.5		1.8		0.9		13.4			1.3		—			5.2
Total losses and loss adjustment expenses	76.5			67.6			67.7		68.3		67.5		82.3			64.2		70.6			71.4
Expenses	30.5			29.4			29.6		28.7		28.8		29.6			30.3		29.8			29.6
Policyholder dividends	0.2			0.1			0.2		0.1		0.2		0.2			0.2		0.1			0.2
Combined ratio	107.1			97.1			97.4		97.2		96.5		112.0			94.7		100.5			101.1
Current accident year catastrophes and prior accident year development	13.3			5.4			6.2		4.1		3.9		20.4			4.8		8.3			9.7
Underlying combined ratio *	93.9			91.6			91.2		93.1		92.5		91.7			89.9		92.2			91.4


[1]	The following table summarizes unfavorable (favorable) prior accident year development.



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Auto liability - Commercial Lines	$	—		$	—		$	20		$	38		$	18		$	(8	)	$	9		$	20		$	19
Auto liability - Personal Lines	—			—			—			20			—			75			65			—			140
Homeowners	—			—			—			(6		)	1			1			(6		)	—			(4		)
Professional and general liability	—			—			10			(4		)	(1		)	34			(1		)	10			32
Package business	(22		)	—			—			15			(2		)	7			45			(22		)	50
Bond	20			—			(10		)	(2		)	—			—			(6		)	10			(6		)
Net asbestos reserves	—			—			—			—			—			197			—			—			197
Net environmental reserves	—			—			—			—			—			71			—			—			71
Workers’ compensation	(9		)	—			(20		)	(32		)	(4		)	(4		)	(79		)	(29		)	(87		)
Workers' compensation discount accretion	5			8			8			7			7			7			7			21			21
Catastrophes	1			(10		)	(3		)	—			(2		)	2			(7		)	(12		)	(7		)
Uncollectible reinsurance	—			—			—			—			—			(30		)	—			—			(30		)
Other reserve re-estimates, net	4			(8		)	7			12			8			(1		)	6			3			13
Total prior accident year development	$	(1	)	$	(10	)	$	12		$	48		$	25		$	351		$	33		$	1		$	409

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Written premiums	$	1,702		$	1,706		$	1,821		$	1,664		$	1,673		$	1,669		$	1,726		$	5,229		$	5,068
Change in unearned premium reserve	(21		)	(14		)	133			(37		)	(4		)	19			103			98			118
Earned premiums	1,723			1,720			1,688			1,701			1,677			1,650			1,623			5,131			4,950
Fee income	9			9			10			10			10			9			10			28			29
Losses and loss adjustment expenses
Current accident year before catastrophes	1,009			994			968			946			969			938			913			2,971			2,820
Current accident year catastrophes	270			63			71			33			43			80			44			404			167
Prior accident year development [1]	(3		)	—			15			20			22			6			(20		)	12			8
Total losses and loss adjustment expenses	1,276			1,057			1,054			999			1,034			1,024			937			3,387			2,995
Amortization of DAC	253			252			249			246			243			242			242			754			727
Underwriting expenses	348			324			323			315			303			307			305			995			915
Dividends to policyholders	4			3			4			3			4			4			4			11			12
Underwriting gain (loss)	(149		)	93			68			148			103			82			145			12			330
Net servicing income	1			1			—			—			2			—			—			2			2
Net investment income	241			240			243			243			239			226			209			724			674
Net realized capital gains (losses)	13			32			11			(18		)	39			25			(33		)	56			31
Other income (expenses)	(1		)	—			1			1			(3		)	—			1			—			(2		)
Income before income taxes	105			366			323			374			380			333			322			794			1,035
Income tax expense	15			108			92			110			112			96			97			215			305
Net income	90			258			231			264			268			237			225			579			730
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	12			32			11			(17		)	39			25			(32		)	55			32
Less: Income tax benefit (expense)	(3		)	(12		)	(4		)	7			(14		)	(9		)	11			(19		)	(12		)
Core earnings	$	81		$	238		$	224		$	274		$	243		$	221		$	246		$	543		$	710


[1]	For further information, see Commercial Lines Income Statements (continued), page 11.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

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



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Auto liability	$	—		$	—		$	20		$	38		$	18		$	(8	)	$	9		$	20		$	19
Professional liability	—			—			—			(2		)	(2		)	—			(33		)	—			(35		)
Package business	(22		)	—			—			15			(2		)	7			45			(22		)	50
General liability	—			—			10			(2		)	1			34			32			10			67
Bond	20			—			(10		)	(2		)	—			—			(6		)	10			(6		)
Workers’ compensation	(9		)	—			(20		)	(32		)	(4		)	(4		)	(79		)	(29		)	(87		)
Workers' compensation discount accretion	5			8			8			7			7			7			7			21			21
Catastrophes	1			(2		)	—			—			(3		)	1			(2		)	(1		)	(4		)
Uncollectible reinsurance	—			—			—			—			—			(30		)	—			—			(30		)
Other reserve re-estimates, net	2			(6		)	7			(2		)	7			(1		)	7			3			13
Total prior accident year development	$	(3	)	$	—		$	15		$	20		$	22		$	6		$	(20	)	$	12		$	8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
UNDERWRITING GAIN	$	(149	)	$	93		$	68		$	148		$	103		$	82		$	145		$	12		$	330
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	58.6			57.8			57.3			55.6			57.8			56.8			56.3			57.9			57.0
Current accident year catastrophes	15.7			3.7			4.2			1.9			2.6			4.8			2.7			7.9			3.4
Prior accident year development	(0.2		)	—			0.9			1.2			1.3			0.4			(1.2		)	0.2			0.2
Total losses and loss adjustment expenses	74.1			61.5			62.4			58.7			61.7			62.1			57.7			66.0			60.5
Expenses	34.4			33.0			33.3			32.4			32.0			32.7			33.1			33.5			32.6
Policyholder dividends	0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2
Combined ratio	108.6			94.6			96.0			91.3			93.9			95.0			91.1			99.8			93.3
Current accident year catastrophes and prior accident year development	15.5			3.7			5.1			3.1			3.9			5.2			1.5			8.1			3.6
Underlying combined ratio	93.2			90.9			90.9			88.2			90.0			89.8			89.6			91.7			89.8

COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	101.5			90.4			91.7			90.5			89.0			92.2			89.4			94.6			90.2
Current accident year catastrophes	15.9			3.2			4.7			1.8			1.4			5.0			3.2			8.0			3.2
Prior accident year development	(3.5		)	—			(0.3		)	2.8			0.9			0.3			(0.5		)	(1.3		)	0.2
Underlying combined ratio	89.2			87.2			87.3			86.0			86.8			86.9			86.7			87.9			86.8
MIDDLE MARKET
Combined ratio	119.7			99.8			100.4			92.0			99.4			99.8			98.3			106.6			99.2
Current accident year catastrophes	21.1			5.5			5.2			3.0			5.2			6.4			3.0			10.6			4.9
Prior accident year development	1.5			(0.5		)	1.4			0.1			1.0			1.5			3.4			0.8			2.0
Underlying combined ratio	97.0			94.9			93.8			88.9			93.1			91.9			92.0			95.2			92.4
SPECIALTY COMMERCIAL
Combined ratio	99.4			97.6			101.3			88.8			94.0			92.8			76.4			99.4			87.7
Current accident year catastrophes	—			0.2			—			—			0.5			0.1			—			0.1			0.2
Prior accident year development	0.8			1.5			3.9			(6.0		)	(0.1		)	(2.7		)	(17.8		)	2.0			(6.8		)
Underlying combined ratio	98.6			95.9			97.5			94.8			93.7			95.4			94.3			97.3			94.4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
WRITTEN PREMIUMS
Small Commercial	$	905		$	936		$	986		$	846		$	866		$	883		$	926		$	2,827		$	2,675
Middle Market	584			566			592			607			590			578			568			1,742			1,736
Specialty Commercial	201			192			232			200			207			197			222			625			626
National Accounts	84			71			99			81			89			79			101			254			269
Financial Products	59			58			61			62			62			59			60			178			181
Bond	51			52			53			50			51			48			44			156			143
Other Specialty	7			11			19			7			5			11			17			37			33
Other	12			12			11			11			10			11			10			35			31
Total	$	1,702		$	1,706		$	1,821		$	1,664		$	1,673		$	1,669		$	1,726		$	5,229		$	5,068
EARNED PREMIUMS
Small Commercial	$	919		$	914		$	890		$	894		$	880		$	854		$	839		$	2,723		$	2,573
Middle Market	585			587			583			590			586			584			574			1,755			1,744
Specialty Commercial	208			207			203			207			201			201			199			618			601
National Accounts	84			85			86			87			82			85			85			255			252
Financial Products	62			60			60			61			60			62			61			182			183
Bond	51			51			47			48			49			46			45			149			140
Other Specialty	11			11			10			11			10			8			8			32			26
Other	11			12			12			10			10			11			11			35			32
Total	$	1,723		$	1,720		$	1,688		$	1,701		$	1,677		$	1,650		$	1,623		$	5,131		$	4,950

STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Small Commercial	$	140		$	147		$	154		$	145		$	146		$	139		$	146		$	441		$	431
Middle Market	112			107			128			133			99			124			103			347			326
Renewal Price Increases [1]
Standard Commercial Lines - Written	3.5		%	3.5		%	3.3		%	2.3		%	2.0		%	2.2		%	2.2		%	3.4		%	2.1		%
Standard Commercial Lines - Earned	3.1		%	2.7		%	2.4		%	2.3		%	2.2		%	2.4		%	2.5		%	2.7		%	2.4		%
Policy Count Retention [1]
Small Commercial [2]	83		%	83		%	85		%	85		%	85		%	84		%	84		%	84		%	84		%
Middle Market	76		%	75		%	80		%	76		%	76		%	75		%	74		%	77		%	75		%
Middle Market - normalized [2]										80		%	80		%	79		%	79		%
Policies in Force (in thousands)
Small Commercial	1,274			1,278			1,281			1,280			1,279			1,253			1,245
Middle Market	67			66			66			66			66			67			69


[1]	Excludes Maxum, Middle Market specialty programs and livestock lines of business.


[2]	Normalized 2016 retention rate for the effect of including certain low premium policies transferred from Middle Market to Small Commercial. The transfer did not have a significant impact on policy count retention in Small Commercial.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Written premiums	$	924		$	925		$	889		$	892		$	1,000		$	992		$	953		$	2,738		$	2,945
Change in unearned premium reserve	3			(5		)	(45		)	(75		)	20			16			(22		)	(47		)	14
Earned premiums	921			930			934			967			980			976			975			2,785			2,931
Fee income	11			11			11			10			10			10			9			33			29
Losses and loss adjustment expenses
Current accident year before catastrophes	663			652			644			768			719			689			632			1,959			2,040
Current accident year catastrophes	82			92			79			28			37			104			47			253			188
Prior accident year development [1]	2			(10		)	(4		)	20			3			76			52			(12		)	131
Total losses and loss adjustment expenses	747			734			719			816			759			869			731			2,200			2,359
Amortization of DAC	76			79			81			84			86			89			89			236			264
Underwriting expenses	146			141			138			142			147			151			163			425			461
Underwriting gain (loss)	(37		)	(13		)	7			(65		)	(2		)	(123		)	1			(43		)	(124		)
Net servicing income	4			4			3			5			6			5			4			11			15
Net investment income	36			35			36			36			35			33			31			107			99
Net realized capital gains (losses)	2			5			2			(2		)	5			4			(5		)	9			4
Other income (expense)	3			(1		)	(1		)	(2		)	2			—			—			1			2
Income (loss) before income taxes	8			30			47			(28		)	46			(81		)	31			85			(4		)
Income tax expense (benefit)	—			6			14			(13		)	13			(31		)	8			20			(10		)
Net income (loss)	8			24			33			(15		)	33			(50		)	23			65			6
Less: Net realized capital gains (losses), after DAC, excluded from core earnings, before tax	2			5			2			(2		)	5			4			(5		)	9			4
Less: Income tax benefit (expense)	(1		)	(1		)	(1		)	1			(1		)	(2		)	2			(3		)	(1		)
Core earnings (losses)	$	7		$	20		$	32		$	(14	)	$	29		$	(52	)	$	26		$	59		$	3

[1] For further information, see Personal Lines Income Statements (continued), page 15.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS (CONTINUED)

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



	THREE MONTHS ENDED																			NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016		Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Auto liability	$	—	$	—		$	—		$	20		$	—	$	75		$	65		$	—		$	140
Homeowners	—		—			—			(6		)	1		1			(6		)	—			(4		)
Catastrophes	—		(8		)	(3		)	—			1		1			(5		)	(11		)	(3		)
Other reserve re-estimates, net	2		(2		)	(1		)	6			1		(1		)	(2		)	(1		)	(2		)
Total prior accident year development	$	2	$	(10	)	$	(4	)	$	20		$	3	$	76		$	52		$	(12	)	$	131

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
UNDERWRITING GAIN (LOSS)	$	(37	)	$	(13	)	$	7		$	(65	)	$	(2	)	$	(123	)	$	1		$	(43	)	$	(124	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	72.0			70.1			69.0			79.4			73.4			70.6			64.8			70.3			69.6
Current accident year catastrophes	8.9			9.9			8.5			2.9			3.8			10.7			4.8			9.1			6.4
Prior accident year development	0.2			(1.1		)	(0.4		)	2.1			0.3			7.8			5.3			(0.4		)	4.5
Total losses and loss adjustment expenses	81.1			78.9			77.0			84.4			77.4			89.0			75.0			79.0			80.5
Expenses	22.9			22.5			22.3			22.3			22.8			23.6			24.9			22.5			23.7
Combined ratio	104.0			101.4			99.3			106.7			100.2			112.6			99.9			101.5			104.2
Current accident year catastrophes and prior accident year development	9.1			8.8			8.1			5.0			4.1			18.5			10.1			8.7			10.9
Underlying combined ratio	94.9			92.6			91.2			101.8			96.1			94.2			89.7			92.9			93.3
PRODUCT
Automobile
Combined ratio	106.3			100.8			97.5			118.1			104.8			117.0			106.6			101.5			109.5
Current accident year catastrophes	4.8			2.3			1.4			0.6			1.8			3.5			1.2			2.8			2.1
Prior accident year development	—			(0.6		)	(0.4		)	3.8			(0.1		)	10.8			9.3			(0.3		)	6.6
Underlying combined ratio	101.6			99.1			96.6			113.6			103.1			102.7			96.2			99.1			100.7
Homeowners
Combined ratio	97.9			103.4			103.4			80.9			89.2			102.4			84.7			101.6			92.1
Current accident year catastrophes	18.6			28.0			24.9			8.1			8.3			27.4			13.1			23.8			16.3
Prior accident year development	0.4			(2.1		)	(0.4		)	(1.9		)	1.2			0.8			(3.5		)	(0.7		)	(0.5		)
Underlying combined ratio	78.9			77.6			78.9			74.7			79.6			74.2			75.1			78.4			76.3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	735	$	729	$	687	$	665	$	762	$	752	$	711	$	2,151	$	2,225
AARP Agency	79		80		86		95		95		92		92		245		279
Other Agency	100		104		105		121		131		135		136		309		402
Other	10		12		11		11		12		13		14		33		39
Total	$	924	$	925	$	889	$	892	$	1,000	$	992	$	953	$	2,738	$	2,945
EARNED PREMIUMS
AARP Direct	$	713	$	711	$	708	$	728	$	731	$	723	$	715	$	2,132	$	2,169
AARP Agency	88		89		92		95		94		94		92		269		280
Other Agency	108		117		123		133		140		147		153		348		440
Other	12		13		11		11		15		12		15		36		42
Total	$	921	$	930	$	934	$	967	$	980	$	976	$	975	$	2,785	$	2,931
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	636	$	638	$	645	$	627	$	691	$	686	$	690	$	1,919	$	2,067
Homeowners	288		287		244		265		309		306		263		819		878
Total	$	924	$	925	$	889	$	892	$	1,000	$	992	$	953	$	2,738	$	2,945
EARNED PREMIUMS
Automobile	$	644	$	652	$	654	$	676	$	686	$	680	$	678	$	1,950	$	2,044
Homeowners	277		278		280		291		294		296		297		835		887
Total	$	921	$	930	$	934	$	967	$	980	$	976	$	975	$	2,785	$	2,931

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	37		$	38		$	42		$	48		$	70		$	83		$	110		$	117		$	263
Homeowners	$	11		$	12		$	12		$	12		$	18		$	21		$	23		$	35		$	62
Renewal Written Price Increases
Automobile	12.0		%	10.4		%	10.3		%	9.6		%	8.0		%	6.9		%	6.1		%	10.9		%	7.0		%
Homeowners	8.6		%	9.1		%	8.9		%	8.5		%	8.3		%	7.3		%	8.1		%	8.9		%	7.9		%
Renewal Earned Price Increases
Automobile	10.1		%	9.1		%	8.2		%	7.1		%	6.4		%	5.9		%	5.7		%	9.1		%	6.0		%
Homeowners	8.7		%	8.5		%	8.2		%	8.0		%	7.8		%	7.5		%	7.2		%	8.4		%	7.5		%
Policy Count Retention
Automobile	80		%	81		%	82		%	83		%	84		%	84		%	84		%	81		%	84		%
Homeowners	83		%	83		%	82		%	83		%	84		%	84		%	84		%	82		%	84		%
Premium Retention
Automobile	87		%	88		%	88		%	89		%	88		%	88		%	87		%	88		%	88		%
Homeowners	89		%	90		%	88		%	90		%	89		%	89		%	90		%	89		%	89		%
Policies in Force (in thousands)
Automobile	1,768			1,839			1,905			1,965			2,016			2,053			2,073
Homeowners	1,071			1,109			1,144			1,176			1,208			1,239			1,262

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA - AUTOMOBILE



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium by Distribution
AARP Direct	$	33		$	32		$	33		$	35		$	52		$	62		$	84		$	98		$	198
AARP Agency	3			4			6			9			12			14			17			13			43
Other Agency	1			2			3			4			6			6			8			6			20
Other	—			—			—			—			—			1			1			—			2
Total	$	37		$	38		$	42		$	48		$	70		$	83		$	110		$	117		$	263
Policy Count Retention by Distribution
AARP Direct	82		%	84		%	83		%	85		%	86		%	86		%	86		%	83		%	86		%
AARP Agency	66		%	70		%	74		%	79		%	78		%	78		%	78		%	70		%	78		%
Other Agency [1]	73		%	75		%	76		%	79		%	78		%	78		%	80		%	75		%	79		%
Total	80		%	81		%	82		%	83		%	84		%	84		%	84		%	81		%	84		%


[1]	Includes policies that are available to renew on either a six or twelve month policy term. The policy retention represents the percentage of policies that renewed since the last policy term and is not annualized.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Written premiums	$	—		$	—		$	—		$	(1	)	$	—		$	—		$	—		$	—		$	—
Change in unearned premium reserve	—			—			—			(1		)	—			—			—			—			—
Earned premiums	—			—			—			—			—			—			—			—			—
Losses and loss adjustment expenses
Prior accident year development	—			—			1			8			—			269			1			1			270
Total losses and loss adjustment expenses	—			—			1			8			—			269			1			1			270
Underwriting expenses	3			3			5			(1		)	7			6			7			11			20
Underwriting loss	(3		)	(3		)	(6		)	(7		)	(7		)	(275		)	$	(8	)	(12		)	(290		)
Net investment income	26			27			31			31			31			33			32			84			96
Net realized capital gains (losses)	1			5			4			(26		)	(47		)	6			(3		)	10			(44		)
Loss on reinsurance transaction	—			—			—			650			—			—			—			—			—
Other income	2			—			2			2			2			—			2			4			4
Income (loss) before income taxes	26			29			31			(650		)	(21		)	(236		)	23			86			(234		)
Income tax expense (benefit)	8			9			7			(227		)	(52		)	(82		)	6			24			(128		)
Net income (loss)	18			20			24			(423		)	31			(154		)	17			62			(106		)
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	2			4			4			(26		)	(47		)	6			(3		)	10			(44		)
Less: Loss on reinsurance transaction, before tax	—			—			—			(650		)	—			—			—			—			—
Less: Income tax benefit (expense) [1]	(2		)	(2		)	(1		)	238			59			(6		)	1			(5		)	54
Core earnings (losses)	$	18		$	18		$	21		$	15		$	19		$	(154	)	$	19		$	57		$	(116	)


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Earned premiums	$	803		$	805		$	816		$	788		$	792		$	790		$	778		$	2,424		$	2,360
Fee income	19			19			19			20			20			18			17			57			55
Net investment income	95			88			95			95			95			88			88			278			271
Net realized capital gains	9			13			8			8			19			16			2			30			37
Total revenues	926			925			938			911			926			912			885			2,789			2,723
Benefits, losses and loss adjustment expenses	614			628			651			620			642			634			618			1,893			1,894
Amortization of DAC	8			8			8			8			8			7			8			24			23
Insurance operating costs and other expenses	204			193			220			196			190			196			194			617			580
Total benefits, losses and expenses	826			829			879			824			840			837			820			2,534			2,497
Income before income taxes	100			96			59			87			86			75			65			255			226
Income tax expense	29			27			14			24			24			20			15			70			59
Net income	71			69			45			63			62			55			50			185			167
Less: Net realized capital gains after DAC, excluded from core earnings, before tax	7			13			7			7			17			15			2			27			34
Less: Income tax expense on items not included in core earnings	(2		)	(5		)	(2		)	(3		)	(6		)	(6		)	—			(9		)	(12		)
Core earnings	$	66		$	61		$	40		$	59		$	51		$	46		$	48		$	167		$	145
Margin
Net income margin	7.7		%	7.5		%	4.9		%	6.9		%	6.7		%	6.0		%	5.7		%	6.7		%	6.1		%
Core earnings margin *	7.2		%	6.7		%	4.3		%	6.5		%	5.6		%	5.1		%	5.5		%	6.1		%	5.4		%
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	11.6		%	11.1		%	10.8		%	11.2		%	9.3		%	8.2		%	8.3		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	1.8		%	2.3		%	2.5		%	2.2		%	1.5		%	0.3		%	(0.5		)%
Less: Income tax benefit (expense) on items not included in core earnings	(0.6		)%	(0.8		)%	(0.9		)%	(0.8		)%	(0.5		)%	(0.1		)%	0.2		%
Less: Impact of AOCI, excluded from Core ROE	(1.7		)%	(1.6		)%	(1.1		)%	(0.9		)%	(1.4		)%	(1.4		)%	(1.6		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	12.1		%	11.2		%	10.3		%	10.7		%	9.7		%	9.4		%	10.2		%

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
PREMIUMS
Fully insured ongoing premiums
Group disability	$	368		$	360		$	364		$	359		$	360		$	363		$	352		$	1,092		$	1,075
Group life	382			391			386			377			381			376			369			1,159			1,126
Other	53			51			55			52			51			51			51			159			153
Total fully insured ongoing premiums	803			802			805			788			792			790			772			2,410			2,354
Total buyouts [1]	—			3			11			—			—			—			6			14			6
Total premiums	$	803		$	805		$	816		$	788		$	792		$	790		$	778		$	2,424		$	2,360
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	43		$	32		$	87		$	25		$	30		$	45		$	84		$	162		$	159
Group life	20			33			115			15			26			31			149			168			206
Other	5			2			9			3			5			4			33			16			42
Total fully insured ongoing sales	68			67			211			43			61			80			266			346			407
Total buyouts [1]	—			3			11			—			—			—			6			14			6
Total sales	$	68		$	70		$	222		$	43		$	61		$	80		$	272		$	360		$	413
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	73.0		%	78.9		%	82.9		%	84.0		%	79.4		%	79.9		%	82.4		%	78.3		%	80.5		%
Group life loss ratio	77.7		%	74.2		%	73.1		%	70.6		%	80.0		%	78.1		%	73.8		%	75.0		%	77.4		%
Total loss ratio	74.7		%	76.1		%	77.7		%	76.7		%	79.1		%	78.5		%	77.6		%	76.2		%	78.4		%
Expense ratio	25.8		%	24.5		%	27.7		%	25.2		%	24.4		%	25.1		%	25.6		%	26.0		%	25.0		%


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017		Sept 30 2016
Investment management fees	$	172		$	162		$	155		$	150		$	145		$	140		$	135		$	489	$	420
Shareholder servicing fees	22			25			23			22			20			20			20			70		60
Other revenue	10			14			14			12			13			13			12			38		38
Total revenues	204			201			192			184			178			173			167			597		518
Sub-advisory	63			60			56			54			52			50			48			179		150
Employee compensation and benefits	28			28			28			27			26			24			24			84		74
Distribution and service	42			44			43			42			40			39			39			129		118
General, administrative and other	31			31			30			34			29			28			25			92		82
Total expenses	164			163			157			157			147			141			136			484		424
Income before income taxes	40			38			35			27			31			32			31			113		94
Income tax expense	14			14			12			10			10			12			11			40		33
Net income	$	26		$	24		$	23		$	17		$	21		$	20		$	20		$	73	$	61
Core earnings	$	26		$	24		$	23		$	17		$	21		$	20		$	20		$	73	$	61
Daily Average Total Mutual Funds segment AUM	$	109,640		$	105,625		$	101,114		$	95,935		$	93,753		$	91,289		$87,192			$	105,491	$	90,760
Return on assets (bps, after-tax) [1]
Net income	9.5			9.2			9.2			7.4			8.5			8.9			9.3			9.3		8.9
Core earnings	9.5			9.2			9.2			7.4			8.5			8.9			9.3			9.3		8.9
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	34.5		%	33.2		%	32.2		%	31.7		%	33.2		%	34.2		%	35.5		%
Less: Impact of AOCI, excluded from Core ROE	(0.3		)%	(0.3		)%	—		%	0.1		%	(0.2		)%	(0.2		)%	(0.3		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	34.8		%	33.5		%	32.2		%	31.6		%	33.4		%	34.4		%	35.8		%


[1]	Represents annualized earnings divided by daily average assets under management, as measured in basis points.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Dec 31 2016			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Equity
Beginning balance	$	58,047		$	54,683		$	50,826		$	48,476		$	46,808		$	46,455		$	47,369		$	50,826		$	47,369
Sales	3,630			4,076			3,987			2,970			2,722			2,324			3,069			11,693			8,115
Redemptions	(2,944		)	(3,269		)	(3,587		)	(3,959		)	(3,138		)	(2,974		)	(2,853		)	(9,800		)	(8,965		)
Net flows	686			807			400			(989		)	(416		)	(650		)	216			1,893			(850		)
Change in market value and other	2,430			2,557			3,457			3,339			2,084			1,003			(1,130		)	8,444			1,957
Ending balance	$	61,163		$	58,047		$	54,683		$	50,826		$	48,476		$	46,808		$	46,455		$	61,163		$	48,476
Fixed Income
Beginning balance	$	14,286		$	13,973		$	13,301		$	12,864		$	12,491		$	12,389		$	12,625		$	13,301		$	12,625
Sales	866			1,079			1,930			1,204			1,027			843			918			3,875			2,788
Redemptions	(861		)	(900		)	(1,406		)	(1,121		)	(888		)	(1,012		)	(1,432		)	(3,167		)	(3,332		)
Net flows	5			179			524			83			139			(169		)	(514		)	708			(544		)
Change in market value and other	163			134			148			354			234			271			278			445			783
Ending balance	$	14,454		$	14,286		$	13,973		$	13,301		$	12,864		$	12,491		$	12,389		$	14,454		$	12,864
Multi-Strategy Investments [1]
Beginning balance	$	18,923		$	18,142		$	17,171		$	16,564		$	15,642		$	14,775		$	14,419		$	17,171		$	14,419
Sales	868			1,093			1,301			1,279			1,147			920			712			3,262			2,779
Redemptions	(792		)	(765		)	(892		)	(882		)	(676		)	(520		)	(600		)	(2,449		)	(1,796		)
Net flows	76			328			409			397			471			400			112			813			983
Change in market value and other	572			453			562			210			451			467			244			1,587			1,162
Ending balance	$	19,571		$	18,923		$	18,142		$	17,171		$	16,564		$	15,642		$	14,775		$	19,571		$	16,564
Mutual Fund AUM
Beginning balance	$	91,256		$	86,798		$	81,298		$	77,904		$	74,941		$	73,619		$	74,413		$	81,298		$	74,413
Sales	5,364			6,248			7,218			5,453			4,896			4,087			4,699			18,830			13,682
Redemptions	(4,597		)	(4,934		)	(5,885		)	(5,962		)	(4,702		)	(4,506		)	(4,885		)	(15,416		)	(14,093		)
Net flows	767			1,314			1,333			(509		)	194			(419		)	(186		)	3,414			(411		)
Change in market value and other	3,165			3,144			4,167			3,903			2,769			1,741			(608		)	10,476			3,902
Ending balance	$	95,188		$	91,256		$	86,798		$	81,298		$	77,904		$	74,941		$	73,619		$	95,188		$	77,904
Exchange-Traded Products ("ETP") AUM	$	409		$	325		$	278		$	209		$	210								$	409		$	210
Mutual Funds segment AUM before Talcott Resolution	$	95,597		$	91,581		$	87,076		$	81,507		$	78,114		$	74,941		$	73,619		$	95,597		$	78,114
Talcott Resolution AUM [2]	$	16,127		$	16,098		$	16,123		$	16,010		$	16,387		$	16,482		$	16,795		$	16,127		$	16,387
Total Mutual Funds segment AUM	$	111,724		$	107,679		$	103,199		$	97,517		$	94,501		$	91,423		$	90,414		$	111,724		$	94,501

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

[2] Talcott Resolution AUM consists of Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
NET INCOME
Individual Annuity	$	54		$	70		$	34		$	11		$	33		$	76		$	39		$	158		$	148
Institutional and other	26			35			34			34			45			28			(22		)	95			51
Talcott Resolution net income	80			105			68			45			78			104			17			253			199
Less: Unlock benefit (charge), before tax	23			20			18			(20		)	(13		)	18			13			61			18
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(30		)	22			(43		)	(9		)	(28		)	3			(106		)	(51		)	(131		)
Less: Income tax benefit (expense) on items not included in core earnings	4			(17		)	10			(37		)	15			(8		)	33			(3		)	40
Talcott Resolution core earnings	$	83		$	80		$	83		$	111		$	104		$	91		$	77		$	246		$	272
CORE EARNINGS
Individual Annuity	$	58		$	64		$	62		$	78		$	68		$	69		$	61		$	184		$	198
Institutional and other	25			16			21			33			36			22			16			62			74
Talcott Resolution core earnings	$	83		$	80		$	83		$	111		$	104		$	91		$	77		$	246		$	272
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	3.4		%	3.3		%	3.4		%	2.5		%	2.1		%	2.0		%	3.7		%
Less: Unlock benefit (charge), before tax	0.6		%	0.1		%	—		%	—		%	1.0		%	0.5		%	0.9		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(0.9		)%	(0.9		)%	(1.2		)%	(2.2		)%	(3.9		)%	(3.7		)%	(3.7		)%
Less: Net reinsurance gain on dispositions, before tax	—		%	—		%	—		%	—		%	—		%	0.3		%	0.4		%
Less: Income tax benefit (expense) on items not included in core earnings	(0.6		)%	(0.4		)%	(0.3		)%	—		%	1.0		%	1.0		%	0.8		%
Less: Impact of AOCI, excluded from Core ROE	(0.8		)%	(0.8		)%	(0.6		)%	(0.4		)%	(0.7		)%	(0.6		)%	(0.7		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	5.1		%	5.3		%	5.5		%	5.1		%	4.7		%	4.5		%	6.0		%
Return on Assets (bps, after tax) [1]
Net income return on assets	44.9			57.9			28.1			9.0			26.6			60.7			30.3			43.7			38.8
Core earnings return on assets *	48.3			53.0			51.2			63.8			54.9			55.1			47.4			50.9			51.8


[1]	Represents Individual Annuity annualized earnings divided by a two-point average of assets under management.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

SUPPLEMENTAL DATA



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
FULL SURRENDER RATES [1]
Variable Annuity	5.8	%	7.3	%	7.8	%	6.7	%	7.4	%	7.7	%	6.7	%	7.0	%	7.2	%
Fixed Annuity and Other	6.3	%	6.0	%	5.8	%	4.2	%	5.4	%	5.1	%	4.4	%	6.0	%	5.0	%
CONTRACT COUNTS (in thousands)
Variable Annuity	505		516		529		544		557		571		587
Fixed Annuity and Other	115		117		119		121		123		125		127


[1]	Represents annualized surrenders (full contract liquidation excluding partial withdrawals) divided by a two-point average of annuity account values.



	AS OF
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
VARIABLE ANNUITY DEATH AND LIVING BENEFITS
S&P 500 index value at end of period	2,519			2,423			2,363			2,239			2,168			2,099			2,060
Total account value with guaranteed minimum death benefits (“GMDB”) [5]	$	40,707		$	40,668		$	40,948		$	40,698		$	41,696		$	41,738		$	42,500
Gross net amount at risk ("NAR")	$	2,984		$	3,056		$	3,131		$	3,298		$	3,404		$	3,885		$	4,262
NAR reinsured	80		%	80		%	80		%	79		%	79		%	75		%	73		%
Contracts in the Money [3]	14		%	17		%	17		%	28		%	31		%	48		%	56		%
% In the Money [3] [4]	28		%	22		%	22		%	14		%	13		%	10		%	9		%
Retained NAR [2]	$	584		$	610		$	634		$	704		$	730		$	965		$	1,149
Net GAAP liability for GMDB benefits	$	160		$	159		$	162		$	163		$	175		$	178		$	184

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	17,948		$	18,058		$	18,302		$	18,290		$	18,869		$	18,952		$	19,384
Gross NAR	$	165		$	177		$	187		$	203		$	195		$	240		$	267
NAR reinsured	42		%	41		%	41		%	39		%	38		%	35		%	34		%
Contracts in the Money [3]	5		%	5		%	6		%	7		%	7		%	10		%	11		%
% In the Money [3] [4]	19		%	17		%	17		%	13		%	12		%	10		%	10		%
Retained NAR [2]	$	96		$	104		$	111		$	124		$	121		$	155		$	177
Net GAAP liability for non-lifetime GMWB benefits	$	27		$	64		$	84		$	153		$	238		$	296		$	254
Net GAAP liability for lifetime GMWB benefits	$	200		$	197		$	195		$	191		$	156		$	156		$	150

[2] Policies with a guaranteed living benefit also have a guaranteed death benefit. The net amount at risk (“NAR”) for each benefit is shown. These benefits are not additive. When a policy terminates

due to death, any NAR related to the GMWB is released. Similarly, when a policy goes into benefit status on a GMWB, its GMDB NAR is released.

[3] Excludes contracts that are fully reinsured.

[4] For all contracts that are “in the money”, this represents the percentage by which the average contract was in the money.

[5] Includes $1.7 billion of account value for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

ACCOUNT VALUE ROLLFORWARD



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
VARIABLE ANNUITY
Beginning balance	$	40,668		$	40,948		$	40,698		$	41,696		$	41,738		$	42,500		$	44,245		$	40,698		$	44,245
Deposits	22			37			36			34			37			40			42			95			119
Partial withdrawals	(304		)	(331		)	(384		)	(450		)	(344		)	(379		)	(410		)	(1,019		)	(1,133		)
Full surrenders	(585		)	(744		)	(799		)	(694		)	(772		)	(813		)	(728		)	(2,128		)	(2,313		)
Death benefits/annuitizations/other [1]	(302		)	(335		)	(373		)	(299		)	(338		)	(344		)	(370		)	(1,010		)	(1,052		)
Net flows	(1,169		)	(1,373		)	(1,520		)	(1,409		)	(1,417		)	(1,496		)	(1,466		)	(4,062		)	(4,379		)
Change in market value/change in reserve/interest credited and other	1,208			1,093			1,770			411			1,375			734			(279		)	4,071			1,830
Ending balance	$	40,707		$	40,668		$	40,948		$	40,698		$	41,696		$	41,738		$	42,500		$	40,707		$	41,696
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	7,453		$	7,571		$	7,673		$	7,792		$	7,901		$	8,014		$	8,109		$	7,673		$	8,109
Deposits	—			—			1			—			—			—			—			1			—
Surrenders	(91		)	(88		)	(90		)	(81		)	(83		)	(86		)	(76		)	(269		)	(245		)
Death benefits/annuitizations/other [1]	(103		)	(106		)	(96		)	(102		)	(105		)	(98		)	(86		)	(305		)	(289		)
Net flows	(194		)	(194		)	(185		)	(183		)	(188		)	(184		)	(162		)	(573		)	(534		)
Change in market value/change in reserve/interest credited and other	76			76			83			64			79			71			67			235			217
Ending balance	$	7,335		$	7,453		$	7,571		$	7,673		$	7,792		$	7,901		$	8,014		$	7,335		$	7,792
TOTAL INDIVIDUAL ANNUITY
Beginning balance	$	48,121		$	48,519		$	48,371		$	49,488		$	49,639		$	50,514		$	52,354		$	48,371		$	52,354
Deposits	22			37			37			34			37			40			42			96			119
Surrenders and partial withdrawals	(980		)	(1,163		)	(1,273		)	(1,225		)	(1,199		)	(1,278		)	(1,214		)	(3,416		)	(3,691		)
Death benefits/annuitizations/other [1]	(405		)	(441		)	(469		)	(401		)	(443		)	(442		)	(456		)	(1,315		)	(1,341		)
Net flows	(1,363		)	(1,567		)	(1,705		)	(1,592		)	(1,605		)	(1,680		)	(1,628		)	(4,635		)	(4,913		)
Change in market value/change in reserve/interest credited and other	1,284			1,169			1,853			475			1,454			805			(212		)	4,306			2,047
Ending balance	$	48,042		$	48,121		$	48,519		$	48,371		$	49,488		$	49,639		$	50,514		$	48,042		$	49,488


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Fee income	$	—		$	1		$	1		$	1		$	1		$	1		$	1		$	2		$	3
Net investment income	5			5			4			8			6			6			11			14			23
Net realized capital gains (losses)	3			(2		)	—			(97		)	(1		)	(1		)	(4		)	1			(6		)
Total revenues	8			4			5			(88		)	6			6			8			17			20
Insurance operating costs and other expenses	11			5			4			3			6			(1		)	6			20			11
Pension settlement	—			750			—			—			—			—			—			750			—
Interest expense	82			81			83			82			86			85			86			246			257
Total expenses	93			836			87			85			92			84			92			1,016			268
Loss before income taxes	(85		)	(832		)	(82		)	(173		)	(86		)	(78		)	(84		)	(999		)	(248		)
Income tax benefit	(26		)	(292		)	(36		)	(141		)	(31		)	(82		)	(55		)	(354		)	(168		)
Net income (loss)	(59		)	(540		)	(46		)	(32		)	(55		)	4			(29		)	(645		)	(80		)
Less: Net realized capital gains (losses) after DAC, excluded from core losses, before tax	2			(1		)	(1		)	(99		)	1			(2		)	(4		)	—			(5		)
Less: Pension settlement, before tax	—			(750		)	—			—			—			—			—			(750		)	—
Less: Income tax benefit (expense) [1]	(2		)	263			—			114			(2		)	56			26			261			80
Core losses	$	(59	)	$	(52	)	$	(45	)	$	(47	)	$	(54	)	$	(50	)	$	(51	)	$	(156	)	$	(155	)


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Net Investment Income
Fixed maturities [1]
Taxable	$	475		$	477		$	475		$	488		$	483		$	498		$	488		$	1,427		$	1,469
Tax-exempt	104			103			100			103			106			106			107			307			319
Total fixed maturities	$	579		$	580		$	575		$	591		$	589		$	604		$	595		$	1,734		$	1,788
Equity securities, available-for-sale	6			8			5			9			5			6			11			19			22
Mortgage loans	62			61			62			70			62			60			60			185			182
Policy loans	20			20			19			21			20			20			22			59			62
Limited partnerships and other alternative investments [2]	71			48			70			73			93			40			8			189			141
Other [3]	23			26			29			25			29			34			27			78			90
Subtotal	761			743			760			789			798			764			723			2,264			2,285
Investment expense	(32		)	(28		)	(32		)	(31		)	(26		)	(29		)	(27		)	(92		)	(82		)
Total net investment income	$	729		$	715		$	728		$	758		$	772		$	735		$	696		$	2,172		$	2,203
Annualized investment yield, before tax [4]	4.3		%	4.2		%	4.3		%	4.4		%	4.5		%	4.2		%	4.0		%	4.3		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	11.7		%	8.0		%	11.6		%	12.1		%	15.2		%	6.1		%	1.2		%	10.7		%	7.3		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] *	4.0		%	4.1		%	4.0		%	4.2		%	4.1		%	4.1		%	4.1		%	4.0		%	4.1		%
Annualized investment yield, after-tax [4]	3.0		%	2.9		%	3.0		%	3.1		%	3.1		%	3.0		%	2.8		%	3.0		%	2.9		%
Average reinvestment rate [5]	3.5		%	3.5		%	3.7		%	3.7		%	3.2		%	3.2		%	3.8		%	3.5		%	3.4		%
Average sales/maturities yield [6]	4.1		%	3.7		%	3.9		%	3.7		%	3.9		%	4.0		%	4.3		%	3.9		%	4.1		%
Portfolio duration (in years) [7]	6.0			5.8			5.8			5.7			5.8			5.8			5.8			6.0			5.8


[1]	Includes income on short-term bonds.


[2]	Other alternative investments include an insurer-owned life insurance policy which is invested in hedge funds and other investments.


[3]	Primarily represents 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 amortized cost.


[5]	Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities, cash equivalent 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 securities and derivative instruments related to hedging U.S. variable annuity liabilities.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

PROPERTY & CASUALTY



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Net Investment Income
Fixed maturities [1]
Taxable	$	169		$	169		$	168		$	176		$	166		$	168		$	169		$	506		$	503
Tax-exempt	81			81			78			81			82			82			84			240			248
Total fixed maturities	$	250		$	250		$	246		$	257		$	248		$	250		$	253		$	746		$	751
Equity securities, available-for-sale	4			4			4			4			3			3			4			12			10
Mortgage loans	22			21			21			20			20			19			19			64			58
Limited partnerships and other alternative investments [2]	34			32			45			36			36			23			6			111			65
Other [3]	7			8			8			6			9			9			2			23			20
Subtotal	317			315			324			323			316			304			284			956			904
Investment expense	(14		)	(13		)	(14		)	(13		)	(11		)	(12		)	(12		)	(41		)	(35		)
Total net investment income	$	303		$	302		$	310		$	310		$	305		$	292		$	272		$	915		$	869
Annualized investment yield, before tax [4]	4.0		%	4.1		%	4.2		%	4.2		%	4.1		%	3.9		%	3.7		%	4.1		%	3.9		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	10.4		%	9.6		%	13.6		%	11.0		%	11.4		%	6.9		%	1.7		%	11.6		%	6.5		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] *	3.7		%	3.8		%	3.7		%	3.9		%	3.8		%	3.8		%	3.8		%	3.8		%	3.8		%
Annualized investment yield, after-tax [4]	2.9		%	3.0		%	3.1		%	3.1		%	3.0		%	2.9		%	2.7		%	3.0		%	2.9		%
Average reinvestment rate [5]	3.4		%	3.5		%	3.7		%	3.6		%	3.1		%	3.1		%	3.8		%	3.5		%	3.4		%
Average sales/maturities yield [6]	4.1		%	3.8		%	3.8		%	3.8		%	4.0		%	3.9		%	4.5		%	3.9		%	4.1		%
Portfolio duration (in years) [7]	5.0			5.0			5.0			4.9			5.0			5.1			5.2			5.0			5.0

Footnotes [1] through [7] are explained on page 29.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED



	THREE MONTHS ENDED															NINE MONTHS ENDED
Net Investment Income by Segment	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Sept 30 2017		Sept 30 2016
Net Investment Income
Commercial Lines	$	241	$	240	$	243	$	243	$	239	$	226	$	209		$	724	$	674
Personal Lines	36		35		36		36		35		33		31			107		99
P&C Other Operations	26		27		31		31		31		33		32			84		96
Total Property & Casualty	$	303	$	302	$	310	$	310	$	305	$	292	$	272		$	915	$	869
Group Benefits	95		88		95		95		95		88		88			278		271
Mutual Funds	1		—		1		—		—		1		—			2		1
Talcott Resolution	325		320		318		345		366		348		325			963		1,039
Corporate	5		5		4		8		6		6		11			14		23
Total net investment income by segment	$	729	$	715	$	728	$	758	$	772	$	735	$	696		$	2,172	$	2,203
	THREE MONTHS ENDED															NINE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Sept 30 2017		Sept 30 2016
Total Property & Casualty	$	34	$	32	$	45	$	36	$	36	$	23	$	6		$	111	$	65
Group Benefits	14		7		13		10		10		4		3			34		17
Talcott Resolution	23		9		12		27		47		13		(1		)	44		59
Total net investment income from limited partnerships and other alternative investments [1]	$	71	$	48	$	70	$	73	$	93	$	40	$	8		$	189	$	141

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Sept 30 2017			Sept 30 2016
Net Realized Capital Gains (Losses)
Gross gains on sales	$	80		$	140		$	112		$	113		$	114		$	124		$	90		$	332		$	328
Gross losses on sales	(26		)	(31		)	(75		)	(96		)	(24		)	(25		)	(108		)	(132		)	(157		)
Net impairment losses	(2		)	(14		)	(1		)	(12		)	(14		)	(7		)	(23		)	(17		)	(44		)
Valuation allowances on mortgage loans	—			2			—			—			—			—			—			2			—
Results of variable annuity hedge program
GMWB derivatives, net	15			20			18			(30		)	6			3			(17		)	53			(8		)
Macro hedge	(65		)	(38		)	(86		)	(65		)	(64		)	(20		)	(14		)	(189		)	(98		)
Total results of variable annuity hedge program	(50		)	(18		)	(68		)	(95		)	(58		)	(17		)	(31		)	(136		)	(106		)
Transactional foreign currency revaluation	2			13			(13		)	(4		)	(13		)	(87		)	(44		)	2			(144		)
Non-qualifying foreign currency derivatives	(3		)	(17		)	11			2			17			82			39			(9		)	138
Other net gains (losses) [1] [2]	(4		)	—			14			(57		)	(39		)	(17		)	(78		)	10			(134		)
Total net realized capital gains (losses)	$	(3	)	$	75		$	(20	)	$	(149	)	$	(17	)	$	53		$	(155	)	$	52		$	(119	)
Less: Impacts of DAC	(1		)	(1		)	(3		)	(5		)	(5		)	—			(7		)	(5		)	(12		)
Less: Realized gains, included in core earnings, before tax	3			1			3			2			1			2			—			7			3
Total net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(5		)	75			(20		)	(146		)	(13		)	51			(148		)	50			(110		)
Less: Impacts of tax	(2		)	29			(8		)	(86		)	(46		)	21			(52		)	19			(77		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings	$	(3	)	$	46		$	(12	)	$	(60	)	$	33		$	30		$	(96	)	$	31		$	(33	)


[1]	Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and embedded derivatives associated with modified coinsurance reinsurance contracts.


[2]	Includes periodic net coupon settlements on credit derivatives which are included in core earnings.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED



	Sept 30 2017				Jun 30 2017				Mar 31 2017				Dec 31 2016				Sept 30 2016
	Amount [1]		Percent		Amount		Percent		Amount		Percent		Amount [1]		Percent		Amount		Percent
Total investments	$	72,993	100.0	%	$	73,780	100.0	%	$	72,189	100.0	%	$	70,637	100.0	%	$	73,708	100.0	%
Asset-backed securities	$	2,305	4.0	%	$	2,354	4.1	%	$	2,265	4.0	%	$	2,382	4.3	%	$	2,685	4.5	%
Collateralized debt obligations	2,395		4.1	%	2,457		4.3	%	2,311		4.1	%	1,916		3.4	%	2,573		4.3	%
Commercial mortgage-backed securities	5,120		8.9	%	5,173		8.9	%	5,099		9.1	%	4,936		8.8	%	5,268		8.7	%
Corporate	25,746		44.6	%	26,044		44.9	%	25,730		45.7	%	25,666		45.8	%	26,904		44.6	%
Foreign government/government agencies	1,365		2.4	%	1,297		2.2	%	1,187		2.1	%	1,171		2.1	%	1,186		2.0	%
Municipal	12,435		21.6	%	12,284		21.3	%	11,780		20.9	%	11,486		20.5	%	12,594		20.9	%
Residential mortgage-backed securities	4,205		7.3	%	4,219		7.4	%	3,921		6.9	%	4,767		8.5	%	4,936		8.2	%
U.S. Treasuries	4,098		7.1	%	4,006		6.9	%	4,033		7.2	%	3,679		6.6	%	4,079		6.8	%
Total fixed maturities, available-for-sale	$	57,669	100.0	%	$	57,834	100.0	%	$	56,326	100.0	%	$	56,003	100.0	%	$	60,225	100.0	%
U.S. government/government agencies	$	7,724	13.4	%	$	7,510	13.0	%	$	7,281	12.9	%	$	7,626	13.6	%	$	8,225	13.6	%
AAA	7,225		12.5	%	7,231		12.5	%	7,032		12.5	%	6,969		12.5	%	7,693		12.8	%
AA	9,757		16.9	%	10,020		17.3	%	9,634		17.1	%	9,182		16.4	%	10,342		17.2	%
A	15,727		27.3	%	15,574		26.9	%	14,936		26.5	%	14,996		26.8	%	15,804		26.2	%
BBB	14,210		24.6	%	14,204		24.5	%	14,003		24.9	%	13,901		24.8	%	14,657		24.3	%
BB	1,763		3.1	%	1,999		3.5	%	2,139		3.8	%	2,035		3.6	%	2,089		3.5	%
B	992		1.7	%	1,032		1.8	%	1,016		1.8	%	1,008		1.8	%	1,092		1.8	%
CCC	239		0.4	%	230		0.4	%	243		0.4	%	254		0.4	%	281		0.5	%
CC & below	32		0.1	%	34		0.1	%	42		0.1	%	32		0.1	%	42		0.1	%
Total fixed maturities, available-for-sale	$	57,669	100.0	%	$	57,834	100.0	%	$	56,326	100.0	%	$	56,003	100.0	%	$	60,225	100.0	%


[1]	Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

SEPTEMBER 30, 2017



	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity and Equity Exposures by Sector, Available-for-sale
Financial services	$	5,219	$	5,580	7.6	%
Utilities	4,600		4,948		6.8	%
Technology and communications	3,355		3,730		5.1	%
Consumer non-cyclical	3,421		3,656		5.0	%
Energy [1]	2,164		2,341		3.2	%
Capital goods	1,879		2,009		2.8	%
Consumer cyclical	1,519		1,609		2.2	%
Basic industry	1,139		1,230		1.7	%
Transportation	900		958		1.3	%
Other	739		797		1.1	%
Total	$	24,935	$	26,858	36.8	%
Top Ten Exposures by Issuer [2]
Goldman Sachs Group Inc.	$	360	$	367	0.5	%
New York State Dormitory Authority	273		292		0.4	%
State of California	247		277		0.4	%
New York City Transitional Finance Authority	238		257		0.4	%
Morgan Stanley	252		256		0.3	%
Commonwealth of Massachusetts	233		254		0.3	%
Mars Inc.	231		229		0.3	%
National Grid plc	194		224		0.3	%
Verizon Communication Inc.	205		220		0.3	%
JP Morgan Chase & Co.	204		213		0.3	%
Total	$	2,437	$	2,589	3.5	%


[1]	Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of or exposures to energy-related companies.


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

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 six reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits, Mutual Funds and Talcott Resolution, 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 businesses with workers' compensation, property, automobile, liability, umbrella, marine and livestock coverages under several different products, primarily throughout the United States (“U.S.”), within its standard commercial lines, which consists of the Company's small commercial and middle market lines of business. On July 29, 2016, the Company acquired Maxum Specialty Insurance Group ("Maxum") adding excess and surplus lines capability. Maxum's revenues and earnings since the acquisition date are included in the results of operations of the Company's Commercial Lines operating segment. Additionally, within Commercial Lines, a variety of customized insurance products and risk management services including workers' compensation, automobile, general liability, professional liability, bond, and specialty casualty coverages are offered through the segment's specialty commercial lines. 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 substantially all 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.

Mutual Funds provides investment management, administration, distribution and related services to investors through investment products in both domestic and international markets. Mutual fund and exchange-traded products are sold primarily through retail, bank trust and registered investment advisor channels. On July 29, 2016, the Company acquired Lattice Strategies LLC ("Lattice"), an investment management firm and provider of strategic beta exchange-traded products. Lattice's revenues and earnings since the acquisition date are included in the results of operations of the Company's Mutual Funds operating segment. Talcott funds included in Total Mutual Funds segment assets under management represent assets held in separate accounts supporting the Company's legacy variable insurance products.

Talcott Resolution is comprised of the runoff of the Company's U.S. annuity and institutional and private-placement life insurance businesses, and the retained Japan fixed payout annuity liabilities.

Corporate includes the Company's capital raising activities (including debt financing and related interest expense), purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments.

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

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.

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 (amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense) less fee income to earned premiums. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, 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 catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses 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.

The Company, along with others in the life insurance industry, uses underwriting ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.

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.

The Company uses the non-GAAP financial measure core earnings as an important measure of the Company's operating performance. The Company believes that core earnings provides investors with a valuable measure of the performance of the Company's businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain realized capital gains and losses, certain restructuring and other costs, loss on extinguishment of debt, gains and losses from reinsurance transactions, pension settlements, income tax benefit (expense) on items not included in core earnings, income tax benefit from reduction in deferred income tax valuation allowance, discontinued operations, and the impact of Unlocks to deferred policy acquisition costs (“DAC”), sales inducement assets ("SIA") and death and other insurance benefit reserve balances. 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 (after-tax and the effects of DAC) that tend to be highly variable from period to period based on capital market conditions. The Company 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. Net income is the most directly comparable U.S. GAAP measure. Core earnings should not be considered as a substitute for net income and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate both net income and core earnings when reviewing the Company's performance. A reconciliation of net income to core earnings is set forth on page 2.

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

Book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are calculated based upon non-GAAP financial measures. They are calculated by dividing (a) total stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding or common shares outstanding and dilutive potential common shares. The Company provides these measures 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 they are useful to investors because they eliminate the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per common share and book value per diluted share are the most directly comparable U.S. GAAP measures. 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.

The Company provides different measures of the return on stockholders' equity (“ROE”). ROE - Core earnings is calculated based on non-GAAP financial measures. ROE - Core earnings is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. ROE - Net income is the most directly comparable U.S. GAAP measure. ROE - Net income is calculated by dividing (a) net income for the prior four fiscal quarters by (b) average common stockholders' equity, including AOCI. ROEs at the segment level and for consolidated, excluding Talcott Resolution, represent a levered view of ROE as debt financing and related interest expense are attributed to the businesses consistent with the overall average debt to capitalization ratios of the consolidated entity. The Company excludes AOCI in the calculation of ROE - core earnings 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 investors with return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above.

A reconciliation of ROE - Net income to ROE - Core earnings is set forth below:



	LAST TWELVE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016
ROE - Net income	2.7	%	3.9	%	5.4	%	5.2	%	7.6	%	7.3	%	8.3	%
Less: Unlock benefit (charge), before tax	0.2	%	—	%	—	%	—	%	0.4	%	0.2	%	0.3	%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(0.5	)%	(0.6	)%	(0.7	)%	(1.5	)%	(1.3	)%	(1.5	)%	(1.8	)%
Less: Restructuring and other costs, before tax	—	%	—	%	—	%	—	%	—	%	—	%	(0.1	)%
Less: Loss on extinguishment of debt, before tax	—	%	—	%	—	%	—	%	—	%	—	%	(0.1	)%
Less: (Loss) gain on reinsurance transactions, before tax	(3.6	)%	(3.6	)%	(3.7	)%	(3.8	)%	—	%	0.1	%	0.2	%
Less: Pension settlement, before tax	(4.2	)%	(4.2	)%	—	%	—	%	—	%	—	%	—	%
Less: Income tax benefit on items not included in core earnings	3.0	%	3.3	%	2.3	%	2.7	%	1.1	%	1.4	%	1.1	%
Less: Impact of AOCI, excluded from denominator of Core ROE	(0.4	)%	(0.3	)%	(0.1	)%	0.2	%	(0.2	)%	(0.3	)%	(0.1	)%
ROE - Core earnings	8.2	%	9.3	%	7.6	%	7.6	%	7.6	%	7.4	%	8.8	%

A reconciliation of Consolidated ROE - Net income, excluding Talcott Resolution to Consolidated ROE - Core earnings, excluding Talcott Resolution is set forth below:



	LAST TWELVE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016
ROE - Net income (excluding Talcott Resolution)	2.4	%	4.2	%	6.5	%	6.8	%	10.8	%	10.5	%	11.0	%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(0.3	)%	(0.4	)%	(0.5	)%	(1.1	)%	—	%	(0.2	)%	(0.6	)%
Less: Restructuring and other costs, before tax	—	%	—	%	—	%	—	%	0.2	%	(0.1	)%	(0.1	)%
Less: Loss on extinguishment of debt, before tax	—	%	—	%	—	%	—	%	—	%	—	%	(0.2	)%
Less: (Loss) gain on reinsurance transaction, before tax	(5.7	)%	(5.7	)%	(5.8	)%	(6.0	)%	—	%	—	%	—	%
Less: Pension settlement, before tax	(6.6	)%	(6.6	)%	—	%	—	%	—	%	—	%	—	%
Less: Income tax benefit on items not included in core earnings	5.1	%	5.5	%	3.7	%	4.3	%	1.2	%	1.6	%	1.3	%
Less: Income from discontinued operations, after-tax	—	%	—	%	—	%	—	%	—	%	0.1	%	0.1	%
Less: Impact of AOCI, excluded from denominator of Core ROE	0.2	%	0.1	%	0.5	%	0.7	%	0.3	%	0.2	%	0.2	%
ROE - Core earnings (excluding Talcott Resolution)	9.7	%	11.3	%	8.6	%	8.9	%	9.1	%	8.9	%	10.3	%

The Company evaluates profitability of the individual P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses and policyholder dividends. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of the Company's pricing. Underwriting profitability over time is also greatly influenced by the Company's pricing and underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses. Net income (loss) is the most directly comparable U.S. GAAP measure. The Company believes that underwriting gain (loss) provides investors with a valuable measure of before tax profitability derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of underwriting gain (loss) to net income (loss) for the Company's P&C businesses are set forth on pages 8, 10, 14 and 20.

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

Underlying combined ratio is a non-GAAP financial measure. Combined ratio is the most directly comparable GAAP measure. Underlying combined ratio represents the combined ratio before catastrophes and prior accident year development. 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. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 9, 12 and 16, respectively.

Core earnings margin is a non-GAAP financial measure that the Company uses to evaluate, and believes 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 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). 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.

Return on Assets ("ROA"), core earnings, is a non-GAAP financial measure that the Company uses to evaluate the Mutual Funds and Talcott Resolution (Individual Annuity) segments' operating performance. 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 these businesses because it reveals trends in our businesses that may be obscured by the effect of realized gains (losses). ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our businesses. Therefore, the Company believes it is important for investors to evaluate both ROA, core earnings, and ROA when reviewing the Company's performance.

Net investment income, excluding limited partnerships is the amount of net investment income 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, 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.

CONSOLIDATED



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
Total net investment income	$	729	$	715	$	728	$	758	$	772	$	735	$	696	$	2,172	$	2,203
Limited partnerships and other alternative investments	71		48		70		73		93		40		8		189		141
Net Investment Income excluding limited partnerships	$	658	$	667	$	658	$	685	$	679	$	695	$	688	$	1,983	$	2,062

PROPERTY & CASUALTY



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
Total net investment income	$	303	$	302	$	310	$	310	$	305	$	292	$	272	$	915	$	869
Limited partnerships and other alternative investments	34		32		45		36		36		23		6		111		65
Net Investment Income excluding limited partnerships	$	269	$	270	$	265	$	274	$	269	$	269	$	266	$	804	$	804

Annualized investment yield, excluding limited partnerships is the annualized net investment income excluding limited partnerships divided by the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships invested assets. The company believes that annualized net investment income, excluding limited partnerships, 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.

CONSOLIDATED



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
Annualized investment yield	4.3	%	4.2	%	4.3	%	4.4	%	4.5	%	4.2	%	4.0	%	4.3	%	4.2	%
Annualized investment yield on limited partnerships and other alternative investments	11.7	%	8.0	%	11.6	%	12.1	%	15.2	%	6.1	%	1.2	%	10.7	%	7.3	%
Annualized investment yield excluding limited partnerships and other alternative investments	4.0	%	4.1	%	4.0	%	4.2	%	4.1	%	4.1	%	4.1	%	4.0	%	4.1	%

PROPERTY & CASUALTY



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Sept 30 2017		Sept 30 2016
Annualized investment yield	4.0	%	4.1	%	4.2	%	4.2	%	4.1	%	3.9	%	3.7	%	4.1	%	3.9	%
Annualized investment yield on limited partnerships and other alternative investments	10.4	%	9.6	%	13.6	%	11.0	%	11.4	%	6.9	%	1.7	%	11.6	%	6.5	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.7	%	3.8	%	3.7	%	3.9	%	3.8	%	3.8	%	3.8	%	3.8	%	3.8	%