EX-99.2 3 ex992ifs3312021.htm EX-99.2 Document


INVESTOR FINANCIAL SUPPLEMENT
March 31, 2021
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Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear in this document. These measures are defined within the Discussion of Non-GAAP and Other Financial Measures section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
As of April 20, 2021
Address:
One Hartford Plaza   A.M. Best  Standard & Poor’s  Moody’s
Hartford, CT 06155Insurance Financial Strength Ratings:      
Hartford Fire Insurance Company  A+  A+  A1
Hartford Life and Accident Insurance Company  A+  A+  A2
Navigators Insurance CompanyA+ANR
- Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
- Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address:- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.comNR- Not Rated
Other Ratings:      
Contact:Senior debt  a-  BBB+  Baa1
Susan Spivak BernsteinJunior subordinated debenturesbbbBBB-Baa2
Senior Vice PresidentPreferred stockbbbBBB-Baa3
Investor Relations
Phone (860) 547-6233 - Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
TRANSFER AGENT
Stockholder correspondence should be mailed to:Overnight correspondence should be mailed to:
ComputershareComputershare
P.O. Box 505000462 South 4th Street, Suite 1600
Louisville, KY 40233Louisville, KY 40202
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.
This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange
Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.


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


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
HIGHLIGHTS
Net income$249 $537 $459 $468 $273 
Net income available to common stockholders [1]$244 $532 $453 $463 $268 
Core earnings*$203 $636 $527 $438 $485 
Total revenues$5,299 $5,328 $5,171 $5,068 $4,956 
Total assets$74,201 $74,111 $72,319 $70,990 $68,724 
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders$0.68 $1.48 $1.26 $1.29 $0.75 
Core earnings*$0.57 $1.77 $1.47 $1.22 $1.35 
Diluted earnings per common share
Net income available to common stockholders$0.67 $1.47 $1.26 $1.29 $0.74 
Core earnings*$0.56 $1.76 $1.46 $1.22 $1.34 
Weighted average common shares outstanding (basic)358.2 358.4 358.3 358.1 358.5 
Dilutive effect of stock compensation4.0 3.1 2.2 1.2 2.6 
Weighted average common shares outstanding and dilutive potential common shares (diluted)362.2 361.5 360.5 359.3 361.1 
Common shares outstanding357.5 358.5 358.2 358.1 357.9 
Book value per common share$48.58 $50.83 $48.77 $46.74 $41.72 
Per common share impact of accumulated other comprehensive income [2](0.74)(3.27)(2.39)(1.34)2.68 
Book value per common share (excluding AOCI)*$47.84 $47.56 $46.38 $45.40 $44.40 
Book value per diluted share$48.04 $50.39 $48.47 $46.59 $41.42 
Per diluted share impact of AOCI(0.73)(3.23)(2.38)(1.34)2.65 
Book value per diluted share (excluding AOCI)*$47.31 $47.16 $46.09 $45.25 $44.07 
Common shares outstanding and dilutive potential common shares361.5 361.6 360.4 359.3 360.5 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")10.5 %10.0 %10.4 %11.3 %11.8 %
Core earnings ROE*10.9 %12.7 %12.3 %12.7 %13.3 %
[1]Net income available to common stockholders includes the impact of preferred stock dividends.
[2]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement benefit plan adjustments.
[3]For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page 33.



1
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Earned premiums$4,343 $4,316 $4,347 $4,234 $4,391 
Fee income355 336 323 298 320 
Net investment income509 556 492 339 459 
Net realized capital gains (losses) 80 102 6 109 (231)
Other revenues12 18 3 88 17 
Total revenues 5,299 5,328 5,171 5,068 4,956 
Benefits, losses and loss adjustment expenses [1]3,350 3,080 2,962 2,847 2,916 
Amortization of deferred acquisition costs ("DAC")416 419 421 429 437 
Insurance operating costs and other expenses1,144 1,086 1,093 1,125 1,176 
Interest expense57 57 58 57 64 
Amortization of other intangible assets18 17 18 18 19 
Restructuring and other costs [2]11 17 87 — — 
Total benefits, losses and expenses4,996 4,676 4,639 4,476 4,612 
Income before income taxes303 652 532 592 344 
Income tax expense54 115 73 124 71 
Net income249 537 459 468 273 
Preferred stock dividends 5 5 6 5 5 
Net income available to common stockholders244 532 453 463 268 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(77)(101)(6)(107)232 
Restructuring and other costs, before tax [2]11 17 87 — — 
Integration and transaction costs associated with acquired business, before tax [3]9 11 14 13 13 
Change in deferred gain on retroactive reinsurance, before tax [4]6 215 14 54 29 
Income tax expense (benefit) [5]10 (38)(35)15 (57)
Core earnings$203 $636 $527 $438 $485 
[1]The three months ended March 31, 2021 included $24 of P&C incurred losses arising from the Coronavirus Disease 2019 ("COVID-19") pandemic. In addition, for the three months ended March 31, 2021, Group Benefits included $185 of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19. The three months ended March 31, 2021 and 2020 included $13 and $16, respectively of COVID-19 related losses from short-term disability and New York Paid Family Leave claims. The three months ended March 31, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an agreement to settle claims against the Boy Scouts of America. See note [1] on page 9 for more information.
[2]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
[3]The three months ended March 31, 2021 included Navigators Group acquisition integration costs of $7 and integration costs related to the 2017 acquisition of Aetna's group benefits business of $2. The three month period ended March 31, 2020 included Navigators Group acquisition transaction and integration costs of $8, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $5.
[4]As of March 31, 2021, the Company has cumulatively ceded $215 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $6 ceded for the three months ended March 31, 2021. Of the $215 of cumulative losses ceded, $124 of the ceded losses has been recognized as a deferred gain within other liabilities as of March 31, 2021 since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded exceed the ceded premium paid of $91. As the Company has ceded $215 of the $300 available limit, there is $85 of remaining limit available as of March 31, 2021.
[5]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income (loss):
Commercial Lines$129 $478 $323 $(66)$121 
Personal Lines135 170 79 371 98 
P&C Other Operations(13)(180)2 5 5 
Property & Casualty ("P&C")251 468 404 310 224 
Group Benefits9 59 119 101 104 
Hartford Funds47 51 44 39 36 
Sub-total307 578 567 450 364 
Corporate (58)(41)(108)18 (91)
Net income 249 537 459 468 273 
Preferred stock dividends5 5 6 5 5 
Net income available to common stockholders$244 $532 $453 $463 $268 
Core earnings (losses):
Commercial Lines$105 $444 $349 $(57)$262 
Personal Lines131 164 77 364 117 
P&C Other Operations(15)(16)2 2 11 
P&C221 592 428 309 390 
Group Benefits(3)49 116 102 115 
Hartford Funds45 46 40 33 44 
Sub-total263 687 584 444 549 
Corporate (60)(51)(57)(6)(64)
Core earnings$203 $636 $527 $438 $485 


3
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATE [1]CONSOLIDATED
Mar 31 2021Dec 31 2020Mar 31 2021Dec 31 2020Mar 31 2021Dec 31 2020Mar 31 2021Dec 31 2020Mar 31 2021Dec 31 2020
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value$33,288 $34,173 $9,927 $10,521 $— $— $392 $341 $43,607 $45,035 
Equity securities, at fair value1,067 961 280 204 78 74 207 199 1,632 1,438 
Mortgage loans, net3,212 3,133 1,376 1,360 — — — — 4,588 4,493 
Limited partnerships and other alternative investments1,899 1,711 427 371 — — — — 2,326 2,082 
Other investments154 143 6 7 31 30 16 21 207 201 
Short-term investments1,155 1,086 207 254 273 238 1,732 1,705 3,367 3,283 
Total investments40,775 41,207 12,223 12,717 382 342 2,347 2,266 55,727 56,532 
Cash149 120 12 13 2 15 13 3 176 151 
Restricted cash95 82 9 6 — — — — 104 88 
Premiums receivable and agents’ balances, net3,934 3,779 553 489 — — — — 4,487 4,268 
Reinsurance recoverables, net [2]5,520 5,461 256 244 — — 307 306 6,083 6,011 
DAC780 744 40 38 7 7 — — 827 789 
Deferred income taxes (109)(240)(224)(277)1 2 537 561 205 46 
Goodwill778 778 723 723 181 181 229 229 1,911 1,911 
Property and equipment, net935 961 80 83 12 12 65 66 1,092 1,122 
Other intangible assets449 462 468 478 10 10 — — 927 950 
Other assets1,778 1,425 259 218 97 93 363 330 2,497 2,066 
Assets held for sale [3]165 177 — — — — — — 165 177 
Total assets$55,249 $54,956 $14,399 $14,732 $692 $662 $3,861 $3,761 $74,201 $74,111 
Unpaid losses and loss adjustment expenses$30,332 $29,622 $8,208 $8,233 $— $— $— $— $38,540 $37,855 
Reserves for future policy benefits [2]— — 415 420 — — 226 218 641 638 
Other policyholder funds and benefits payable [2]— — 413 415 — — 268 286 681 701 
Unearned premiums6,919 6,589 39 40 — — — — 6,958 6,629 
Debt— — — — — — 4,353 4,352 4,353 4,352 
Other liabilities2,578 2,631 283 259 239 211 2,078 2,121 5,178 5,222 
Liabilities held for sale [3]148 158 — — — — — — 148 158 
Total liabilities39,977 39,000 9,358 9,367 239 211 6,925 6,977 56,499 55,555 
Common stockholders' equity, excluding AOCI*13,978 13,997 4,521 4,565 453 451 (1,848)(1,961)17,104 17,052 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax1,294 1,959 520 800 — — (1,550)(1,589)264 1,170 
Total stockholders' equity15,272 15,956 5,041 5,365 453 451 (3,064)(3,216)17,702 18,556 
Total liabilities and stockholders' equity$55,249 $54,956 $14,399 $14,732 $692 $662 $3,861 $3,761 $74,201 $74,111 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.9 billion and $1.8 billion as of March 31, 2021 and December 31, 2020, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
[2]Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold.
[3]Related to the sale of Continental Europe Operations classified as held for sale beginning in the third quarter of 2020.
4
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
DEBT
Senior notes$3,263 $3,262 $3,261 $3,260 $3,260 
Junior subordinated debentures1,090 1,090 1,090 1,090 1,089 
Total debt $4,353 $4,352 $4,351 $4,350 $4,349 
STOCKHOLDERS’ EQUITY
Total stockholders’ equity$17,702 $18,556 $17,802 $17,072 $15,266 
Less: Preferred stock334 334 334 334 334 
Less: AOCI264 1,170 856 479 (957)
Common stockholders' equity, excluding AOCI$17,104 $17,052 $16,612 $16,259 $15,889 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$22,055 $22,908 $22,153 $21,422 $19,615 
Total capitalization, excluding AOCI, net of tax*$21,791 $21,738 $21,297 $20,943 $20,572 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI19.7 %19.0 %19.6 %20.3 %22.2 %
Total debt to capitalization, excluding AOCI*20.0 %20.0 %20.4 %20.8 %21.1 %
Total debt and preferred stock to capitalization, including AOCI21.3 %20.5 %21.1 %21.9 %23.9 %
Total debt and preferred stock to capitalization, excluding AOCI*21.5 %21.6 %22.0 %22.4 %22.8 %
Total rating agency adjusted debt to capitalization [1] [2]22.6 %21.8 %22.9 %23.5 %25.6 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]4.8:18.9:18.2:17.7:15.4:1
[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.9 billion and $1.0 billion as of March 31, 2021 and 2020, respectively.
[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.
[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.
5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
MARCH 31, 2021

P&C GROUP BENEFITS
U.S. statutory net income (loss) [1][6]$109 $(40)
U.S. statutory capital [2][6]$10,839 $2,504 
U.S. GAAP adjustments [6]:
DAC770 40 
Non-admitted deferred tax assets [3]222 167 
Deferred taxes [4](926)(542)
Goodwill127 723 
Other intangible assets64 468 
Non-admitted assets other than deferred taxes802 106 
Asset valuation and interest maintenance reserve— 279 
Benefit reserves(85)103 
Unrealized gains on investments1,581 702 
Deferred gain on retroactive reinsurance agreements [5](278)— 
Other, net971 491 
U.S. GAAP stockholders’ equity of U.S. insurance entities [6]14,087 5,041 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group1,185 — 
Total U.S. GAAP stockholders’ equity$15,272 $5,041 
[1]Statutory net income (loss) is for the three months ended March 31, 2021.
[2]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".
[3]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
[4]Represents the tax timing differences between U.S. GAAP and U.S. STAT.
[5]Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and A&E ADC agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.
[6]Excludes insurance operations in the U.K. and Continental Europe.

6
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net unrealized gain on fixed maturities, AFS$1,909 $2,834 $2,431 $2,055 $627 
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")
(2)(2)(2)(2)(2)
Net gains on cash flow hedging instruments17 12 31 48 53 
Total net unrealized gain$1,924 $2,844 $2,460 $2,101 $678 
Foreign currency translation adjustments44 43 33 27 26 
Pension and other postretirement plan adjustments(1,704)(1,717)(1,637)(1,649)(1,661)
Total AOCI $264 $1,170 $856 $479 $(957)
7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Written premiums$3,218 $2,870 $2,980 $2,903 $3,152 
Change in unearned premium reserve249 (128)(50)52 113 
Earned premiums2,969 2,998 3,030 2,851 3,039 
Fee income 17 17 16 14 17 
Losses and loss adjustment expenses
Current accident year before catastrophes [1]1,710 1,747 1,802 1,828 1,806 
Current accident year catastrophes [2]214 55 229 248 74 
Prior accident year development [3]229 184 (75)(268)23 
Total losses and loss adjustment expenses2,153 1,986 1,956 1,808 1,903 
Amortization of DAC402 405 404 412 420 
Underwriting expenses [4]544 520 539 540 597 
Amortization of other intangible assets8 7 8 9 8 
Dividends to policyholders 6 6 8 7 8 
Underwriting gain (loss)*(127)91 131 89 120 
Net investment income378 425 371 242 334 
Net realized capital gains (losses)53 54 (21)74 (173)
Net servicing and other income (expense)2 (3)(4)(7)(3)
Income before income taxes306 567 477 398 278 
Income tax expense55 99 73 88 54 
Net income251 468 404 310 224 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(51)(54)20 (71)173 
Integration and transaction costs associated with an acquired business, before tax7 8 9 8 8 
Change in deferred gain on retroactive reinsurance, before tax [3]6 215 14 54 29 
Income tax expense (benefit) [5]8 (45)(19)8 (44)
Core earnings$221 $592 $428 $309 $390 
ROE
Net income available to common stockholders [6] 11.5 %10.6 %10.2 %11.0 %12.7 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(1.4 %)0.6 %0.6 %(0.2 %)(0.2 %)
Loss on reinsurance transaction, before tax— %— %— %— %1.0 %
Integration and transaction costs associated with an acquired business, before tax0.3 %0.3 %0.3 %0.4 %0.5 %
Changes in loss reserves upon acquisition of a business, before tax— %— %— %— %1.1 %
Change in deferred gain on retroactive reinsurance, before tax [3]2.6 %2.6 %1.0 %0.9 %0.5 %
Income tax expense (benefit) [5](0.4 %)(0.8 %)(0.4 %)(0.2 %)(0.6 %)
Impact of AOCI, excluded from core earnings ROE0.7 %1.7 %1.5 %1.4 %0.5 %
Core earnings [6]13.3 %15.0 %13.2 %13.3 %15.5 %
[1]The three months ended March 31, 2021 included $24 of COVID-19 losses and loss adjustment expenses in Commercial Lines, including $20 in workers' compensation and $4 in financial lines and other.
[2]Catastrophe losses for the three months ended March 31, 2021 of $214, included $176 from February winter storms primarily in the South, with the remaining $38 from various wind and hail events, mostly concentrated in the South and along the Pacific Coast. The $176 of losses from the February winter storms is net of a $46 reinsurance recoverable under the Company's per occurrence catastrophe treaty that covers 70% of up to $250 of losses in excess of $100 on catastrophe events occurring within a 7-day period other than from earthquakes and named hurricanes and tropical storms, subject to a $50 annual aggregate deductible.
[3]Prior accident year development does not include a benefit for the portion of losses ceded to NICO in excess of ceded premium paid under the Navigators and A&E ADC agreements which is recognized as a deferred gain under retroactive reinsurance accounting. See [4] on page 2 for more information.
[4]The three months ended March 31, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($4) and $18, respectively, related to the increasing (lessening) impacts of COVID-19.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[6]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.
8
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)
 THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines$— $— $— $22 $5 
Auto liability - Personal Lines(23)(8)(32)(15)(6)
Homeowners(3)4 3 2 (2)
Marine6 2 — 1 — 
Professional liability(1)2 (21)4 1 
Package business (27)(34)(18)(7)1 
General liability [1]307 125 (2)102 12 
Bond— (9)— (10)— 
Assumed Reinsurance2 1 — (7)— 
Commercial property(13)2 (4)5 (7)
Net asbestos reserves— (2)— — — 
Workers’ compensation (40)(38)(34)(21)(17)
Workers' compensation discount accretion9 8 9 9 9 
Catastrophes(16)(116)— (400)(13)
Uncollectible reinsurance(9)— (6)(2)— 
Other reserve re-estimates31 32 16 (5)11 
Prior accident year development before change in deferred gain223 (31)(89)(322)(6)
Change in deferred gain on retroactive reinsurance included in other liabilities [2]6 215 14 54 29 
Total prior accident year development$229 $184 $(75)$(268)$23 
[1]Three months ended March 31, 2021 includes an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an agreement to settle claims against the Boy Scouts of America ("BSA"). Under the settlement agreement, the Company will pay $650, before tax, for sexual molestation and sexual abuse claims associated with policies mostly issued in the 1970s. The agreement becomes effective upon the occurrence of certain conditions, including confirmation of BSA's global resolution plan, executed releases from the local councils, and approval from the abuse claimants and bankruptcy court.
[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. For the three months ended March 31, 2021, the $6 increase in the deferred gain relates to ceding losses to the Navigators ADC in excess of ceded premium paid. For the three months ended March 31, 2021 and 2020, adverse development on Navigators 2018 and prior accident year reserves was primarily driven by marine for both periods and by commercial automobile liability in the 2021 period and prior accident year catastrophes in the 2020 period. For the three months ended December 31, 2020, the $215 increase in the deferred gain primarily represented adverse development for A&E of $210 in excess of the ceded premium paid for the A&E ADC.
9
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
UNDERWRITING GAIN (LOSS)$(127)$91 $131 $89 $120 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]57.6 58.3 59.5 64.1 59.4 
Current accident year catastrophes7.2 1.8 7.6 8.7 2.4 
Prior accident year development [2]7.7 6.1 (2.5)(9.4)0.8 
Total losses and loss adjustment expenses72.5 66.2 64.6 63.4 62.6 
Expenses [3][4]31.6 30.5 30.9 33.2 33.2 
Policyholder dividends0.2 0.2 0.3 0.2 0.3 
Combined ratio104.3 97.0 95.7 96.9 96.1 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(14.9)(7.9)(5.1)0.7 (3.2)
Underlying combined ratio *89.4 89.0 90.6 97.6 92.9 
[1]The three months ended March 31, 2021 included COVID-19 losses of 0.8 points. See [1] on page 8.
[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.
[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[4]The three months ended March 31, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($4) and $18 respectively, related to the increasing (lessening) impacts of COVID-19 representing (0.1) points and 0.6 points of the expense ratio, respectively.
10
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Written premiums$2,503 $2,197 $2,199 $2,165 $2,408 
Change in unearned premium reserve268 (40)(52)8 143 
Earned premiums2,235 2,237 2,251 2,157 2,265 
Fee income9 9 8 5 8 
Losses and loss adjustment expenses
Current accident year before catastrophes [1]1,296 1,307 1,366 1,472 1,343 
Current accident year catastrophes [2]175 42 107 193 55 
Prior accident year development [3]238 (17)(57)77 41 
Total losses and loss adjustment expenses1,709 1,332 1,416 1,742 1,439 
Amortization of DAC344 346 344 351 356 
Underwriting expenses 394 373 391 387 443 
Amortization of other intangible assets7 6 8 7 7 
Dividends to policyholders6 6 8 7 8 
Underwriting gain (loss)(216)183 92 (332)20 
Net servicing income2 2 1 — 1 
Net investment income327 363 316 204 277 
Net realized capital gains (losses)44 45 (26)64 (143)
Other expenses(4)(10)(8)(11)(6)
Income (loss) before income taxes153 583 375 (75)149 
Income tax expense (benefit)24 105 52 (9)28 
Net income (loss)129 478 323 (66)121 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(43)(46)25 (61)143 
Integration and transaction costs associated with an acquired business, before tax [4]7 8 9 8 8 
Change in deferred gain on retroactive reinsurance, before tax [3]6 5 14 54 29 
Income tax expense (benefit) [5]6 (1)(22)8 (39)
Core earnings (losses)$105 $444 $349 $(57)$262 
[1]See [1] on page 8 for impact related to COVID-19.
[2]Catastrophe losses for the three months ended March 31, 2021 of $175, included $154 from February winter storms primarily in the South, with the remaining $21 from various wind and hail events, mostly concentrated in the South and along the Pacific Coast. Refer to [2] on page 8 for more information.
[3]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. See [1] on page 9 for discussion related to general liability prior year development.
[4]Includes Navigators Group integration costs.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
11
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Auto liability$— $— $— $22 $5 
Professional liability (1)2 (21)4 1 
Package business (27)(34)(18)(7)1 
General liability [1]307 125 (2)102 12 
Marine6 2 — 1 — 
Bond— (9)— (10)— 
Assumed Reinsurance2 1 — (7)— 
Commercial property(13)2 (4)5 (7)
Workers’ compensation(40)(38)(34)(21)(17)
Workers' compensation discount accretion9 8 9 9 9 
Catastrophes(4)(77)— (67)(5)
Uncollectible reinsurance(5)— — — — 
Other reserve re-estimates(2)(4)(1)(8)13 
Prior accident year development before change in deferred gain232 (22)(71)23 12 
Change in deferred gain on retroactive reinsurance included in other liabilities [2]6 5 14 54 29 
Total prior accident year development$238 $(17)$(57)$77 $41 
[1]See [1] on page 9 for discussion related to general liability prior year development.
[2]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance for the three months ended March 31, 2021 relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.
12
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
UNDERWRITING GAIN (LOSS)$(216)$183 $92 $(332)$20 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]58.0 58.4 60.7 68.2 59.3 
Current accident year catastrophes7.8 1.9 4.8 8.9 2.4 
Prior accident year development [2]10.6 (0.8)(2.5)3.6 1.8 
Total losses and loss adjustment expenses76.5 59.5 62.9 80.8 63.5 
Expenses [3] [4]32.9 32.0 32.7 34.3 35.2 
Policyholder dividends0.3 0.3 0.4 0.3 0.4 
Combined ratio [2] [5]109.7 91.8 95.9 115.4 99.1 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(18.4)(1.1)(2.3)(12.5)(4.2)
Underlying combined ratio 91.2 90.7 93.7 102.9 94.9 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio95.4 80.2 89.5 97.4 93.2 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(12.1)(2.9)(5.5)(13.2)(2.6)
Prior accident year development5.0 9.7 3.7 8.7 (1.3)
Underlying combined ratio 88.3 87.0 87.7 92.9 89.3 
MIDDLE & LARGE COMMERCIAL
Combined ratio98.9 86.5 101.2 124.3 103.8 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(7.0)0.2 (5.1)(9.8)(3.6)
Prior accident year development3.3 6.3 1.6 (1.6)0.2 
Underlying combined ratio95.3 93.0 97.7 112.9 100.4 
GLOBAL SPECIALTY
Combined ratio [2] [5]92.4 95.1 99.6 113.8 102.2 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(2.2)(3.0)(3.2)(1.2)(0.6)
Prior accident year development [2](0.3)1.3 1.8 (7.1)(5.2)
Underlying combined ratio89.9 93.3 98.2 105.5 96.4 
[1]The three months ended March 31, 2021 included COVID-19 losses, of 1.1 points. See [1] on page 8.
[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended March 31, 2021 and 2020.
[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[4]The three months ended March 31, 2021 and 2020 included a ($4) and $17, respectively, before-tax increase in the ACL on premiums receivable related to the increasing (lessening) impacts of COVID-19 representing (0.2) points and 0.8 points, respectively, of the expense ratio.
[5]The three months ended March 31, 2021 and 2020 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $6 and $29, respectively, representing 0.3 and 1.3 points, respectively, of the Commercial Lines combined ratio and 1.1 points and 5.3 points, respectively, of the global specialty combined ratio.
13
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
WRITTEN PREMIUMS
Small Commercial$1,053 $873 $890 $877 $1,011 
Middle & Large Commercial775 746 750 683 797 
Middle Market662 647 653 609 680 
National Accounts and Other113 99 97 74 117 
Global Specialty [1]665 568 549 595 589 
U.S.421 395 395 389 379 
International110 107 88 119 98 
Global Re134 66 66 87 112 
Other10 10 10 10 11 
Total$2,503 $2,197 $2,199 $2,165 $2,408 
EARNED PREMIUMS
Small Commercial$916 $908 $935 $877 $930 
Middle & Large Commercial752 742 749 713 772 
Middle Market653 649 646 625 673 
National Accounts and Other99 93 103 88 99 
Global Specialty [1]556 577 555 557 552 
U.S.386 386 387 368 374 
International102 99 101 117 112 
Global Re68 92 67 72 66 
Other11 10 12 10 11 
Total$2,235 $2,237 $2,251 $2,157 $2,265 
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium$176 $153 $129 $118 $157 
Renewal Written Price Increases2.1 %2.0 %1.6 %1.8 %2.3 %
Policy Count Retention86 %84 %79 %88 %84 %
Policies in Force (in thousands)1,304 1,283 1,278 1,297 1,291 
Middle Market [2]
Net New Business Premium$122 $124 $131 $99 $125 
Renewal Written Price Increases6.0 %7.3 %7.9 %7.2 %7.6 %
Policy Count Retention81 %77 %77 %79 %77 %
Policies in Force (in thousands)58 59 59 60 62 
Global Specialty
U.S. - Renewal Written Price Increases14.6 %19.1 %20.3 %19.1 %11.5 %
International - Renewal Written Price Increases [3]27.7 %49.0 %53.7 %46.4 %22.0 %
Gross New Business Premium [4]$216 $184 $185 $186 $197 
[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure"). International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.
[2]Middle market disclosures exclude loss sensitive and programs businesses.
[3]Excludes offshore energy policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 (our "Lloyd’s Syndicate") delegates underwriting authority to coverholders and other third parties.
[4]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.

14
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Written premiums$715 $673 $781 $738 $744 
Change in unearned premium reserve(19)(88)2 44 (30)
Earned premiums734 761 779 694 774 
Fee income 8 8 8 9 9 
Losses and loss adjustment expenses
Current accident year before catastrophes414 440 436 356 463 
Current accident year catastrophes [1]39 13 122 55 19 
Prior accident year development (42)(42)(29)(349)(18)
Total losses and loss adjustment expenses411 411 529 62 464 
Amortization of DAC58 59 60 61 64 
Underwriting expenses148 144 146 150 151 
Amortization of other intangible assets1 1 — 2 1 
Underwriting gain124 154 52 428 103 
Net servicing income4 4 5 3 2 
Net investment income35 47 41 28 41 
Net realized capital gains (losses)7 7 3 8 (23)
Other income (expense)— — (2)1 — 
Income before income taxes170 212 99 468 123 
Income tax expense35 42 20 97 25 
Net income135 170 79 371 98 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(6)(6)(3)(8)23 
Income tax expense (benefit) [2]2 — 1 1 (4)
Core earnings$131 $164 $77 $364 $117 
[1]Catastrophe losses for the three months ended March 31, 2021 of $39, included $22 from February winter storms primarily in the South, with the remainder primarily from wind and hail events in the South and Pacific Coast. Refer to [2] on page 8 for more information.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Auto liability$(23)$(8)$(32)$(15)$(6)
Homeowners(3)4 3 2 (2)
Catastrophes(12)(39)— (333)(8)
Other reserve re-estimates, net(4)1 — (3)(2)
Total prior accident year development$(42)$(42)$(29)$(349)$(18)
16
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
UNDERWRITING GAIN$124 $154 $52 $428 $103 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes56.4 57.8 56.0 51.3 59.8 
Current accident year catastrophes5.3 1.7 15.7 7.9 2.5 
Prior accident year development(5.7)(5.5)(3.7)(50.3)(2.3)
Total losses and loss adjustment expenses56.0 54.0 67.9 8.9 59.9 
Expenses27.1 25.8 25.4 29.4 26.7 
Combined ratio83.1 79.8 93.3 38.3 86.7 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
0.4 3.8 (12.0)42.4 (0.2)
Underlying combined ratio83.5 83.6 81.4 80.7 86.6 
PRODUCT
Automobile
Combined ratio83.5 88.3 81.3 82.5 89.8 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(0.5)(0.5)(1.5)(1.8)(0.3)
Prior accident year development3.3 1.9 5.2 5.6 1.5 
Underlying combined ratio86.3 89.6 84.9 86.3 90.9 
Homeowners
Combined ratio86.8 60.3 122.9 (45.8)79.2 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(15.9)(4.5)(47.7)(20.1)(7.0)
Prior accident year development6.3 14.0 (1.2)136.0 4.0 
Underlying combined ratio77.2 69.9 74.0 70.1 76.2 
17
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA

 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$612 $564 $666 $627 $627 
AARP Agency51 53 53 50 57 
Other Agency45 51 54 54 52 
Other7 5 8 7 8 
Total$715 $673 $781 $738 $744 
EARNED PREMIUMS
AARP Direct$623 $644 $657 $581 $647 
AARP Agency53 56 56 52 60 
Other Agency51 54 57 54 60 
Other7 7 9 7 7 
Total$734 $761 $779 $694 $774 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$508 $459 $529 $481 $534 
Homeowners207 214 252 257 210 
Total$715 $673 $781 $738 $744 
EARNED PREMIUMS
Automobile$507 $525 $541 $456 $536 
Homeowners227 236 238 238 238 
Total$734 $761 $779 $694 $774 

18
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile$53 $45 $55 $65 $58 
Homeowners$13 $12 $16 $18 $17 
Renewal Written Price Increases
Automobile1.9 %1.8 %2.1 %2.5 %3.1 %
Homeowners9.4 %8.7 %7.1 %5.1 %4.7 %
Policy Count Retention
Automobile 85 %84 %84 %90 %86 %
Homeowners85 %84 %84 %89 %86 %
Policies in Force (in thousands)
Automobile1,357 1,369 1,392 1,416 1,410 
Homeowners815 826 846 865 868 
19
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Losses and loss adjustment expenses
Prior accident year development$33 $243 $11 $4 $— 
Total losses and loss adjustment expenses33 243 11 4 — 
Underwriting expenses2 3 2 3 3 
Underwriting loss(35)(246)(13)(7)(3)
Net investment income16 15 14 10 16 
Net realized capital gains (losses)2 2 2 2 (7)
Other income— 1 — — — 
Income (loss) before income taxes(17)(228)3 5 6 
Income tax expense (benefit)(4)(48)1 — 1 
Net income (loss)(13)(180)2 5 5 
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax(2)(2)(2)(2)7 
Change in deferred gain on retroactive reinsurance, before tax— 210 — — — 
Income tax expense (benefit) [1]— (44)2 (1)(1)
Core earnings (losses)$(15)$(16)$2 $2 $11 
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
20


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Earned premiums$1,374 $1,318 $1,317 $1,378 $1,348 
Fee income44 43 44 45 43 
Net investment income127 124 117 92 115 
Net realized capital gains (losses)19 18 9 3 (8)
Total revenues1,564 1,503 1,487 1,518 1,498 
Benefits, losses and loss adjustment expenses [1]1,196 1,092 1,005 1,033 1,007 
Amortization of DAC11 11 13 13 13 
Insurance operating costs and other expenses [2]339 317 312 340 339 
Amortization of other intangible assets10 10 10 9 11 
Total benefits, losses and expenses1,556 1,430 1,340 1,395 1,370 
Income before income taxes8 73 147 123 128 
Income tax expense (benefit)(1)14 28 22 24 
Net income9 59 119 101 104 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(18)(17)(9)(2)8 
Integration and transaction costs associated with acquired business, before tax2 3 5 5 5 
Income tax expense (benefit) [3]4 4 1 (2)(2)
Core earnings (losses)$(3)$49 $116 $102 $115 
Margin
Net income margin0.6 %3.9 %8.0 %6.7 %6.9 %
Core earnings margin*(0.2 %)3.3 %7.9 %6.9 %7.8 %
ROE
Net income available to common stockholders [4]6.4 %8.3 %11.0 %12.0 %13.4 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(1.2 %)(0.5 %)(0.3 %)(0.4 %)(0.6 %)
Integration and transaction costs associated with acquired business, before tax0.4 %0.4 %0.6 %0.7 %0.9 %
Income tax expense (benefit) [3]0.2 %— %(0.1 %)(0.1 %)(0.1 %)
Impact of AOCI, excluded from core earnings ROE0.5 %1.4 %1.8 %1.5 %0.6 %
Core earnings [4]6.3 %9.6 %13.0 %13.7 %14.2 %
[1]The three months ended March 31, 2021 and 2020 included $185 and $0, respectively, of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19. The three months ended March 31, 2021 and 2020 also included net losses of $13 and $16, respectively on COVID-19 related losses from short-term disability claims.
[2]The three months ended March 31, 2021 and 2020 included $4 and $1, respectively, of before tax decreases in the ACL on uncollectible premiums receivable.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.
21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA
 
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
PREMIUMS
Fully insured ongoing premiums
Group disability$693 $646 $652 $672 $660 
Group life 602 601 594 605 605 
Other [1]77 70 70 72 58 
Total fully insured ongoing premiums1,372 1,317 1,316 1,349 1,323 
Total buyouts [2]2 1 1 29 25 
Total premiums$1,374 $1,318 $1,317 $1,378 $1,348 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$321 $28 $55 $65 $213 
Group life151 15 69 73 136 
Other [1]40 6 10 11 36 
Total fully insured ongoing sales512 49 134 149 385 
Total buyouts [2]2 1 1 29 25 
Total sales$514 $50 $135 $178 $410 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]68.4 %65.1 %65.3 %62.6 %71.5 %
Group life loss ratio [4]108.3 %102.0 %87.5 %85.9 %74.6 %
Total loss ratio84.3 %80.2 %73.8 %72.0 %71.9 %
Expense ratio [5]25.3 %24.6 %24.3 %25.6 %26.2 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts. The three months ended March 31, 2020 included buyout premiums primarily from one large account.
[3]The group disability loss ratio decreased 3.1 points from first quarter 2020 to first quarter 2021, primarily due to more favorable prior incurral year development driven by higher claim recoveries and continued improving claim incidence. The three months period ending March 31, 2021 includes $13 of losses on short-term disability and New York Paid Family Leave claims related to COVID-19 as compared to $16 for the three months ended March 31, 2020.
[4]The three months ended March 31, 2021 and 2020 included 30.7 points and 0.0 points, respectively, of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19.
[5]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.
22


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Investment management fees $208 $194 $182 $165 $178 
Shareholder servicing fees 24 22 22 20 22 
Other revenue51 50 47 43 48 
Net realized capital gains (losses)2 6 5 8 (11)
Total revenues 285 272 256 236 237 
Sub-advisory expense75 70 66 60 64 
Employee compensation and benefits37 30 29 28 32 
Distribution and service90 84 82 75 80 
General, administrative and other [1]25 23 24 23 17 
Total expenses 227 207 201 186 193 
Income before income taxes58 65 55 50 44 
Income tax expense11 14 11 11 8 
Net income$47 $51 $44 $39 $36 
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(2)(6)(5)(8)11 
Income tax expense (benefit) [2]— 1 1 2 (3)
Core earnings$45 $46 $40 $33 $44 
Daily average Hartford Funds AUM$143,164 $130,485 $122,528 $110,864 $119,632 
Return on assets (bps, net of tax) [3]
Net income13.1 15.6 14.4 14.1 12.0 
Core earnings*12.6 14.1 13.1 11.9 14.7 
ROE
Net income available to common stockholders [4]52.9 %49.9 %48.2 %48.2 %50.2 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains) excluded from core earnings, before tax(6.3 %)(2.4 %)(0.9 %)0.3 %3.0 %
Income tax expense (benefit) [2]1.2 %0.3 %— %(0.3 %)(1.0 %)
Impact of AOCI, excluded from core earnings ROE(0.2 %)0.3 %0.3 %0.1 %(0.7 %)
Core earnings [4]47.6 %48.1 %47.6 %48.3 %51.5 %
[1]The three months ended March 31, 2020 included a $12 reduction in contingent consideration payable related to the 2016 acquisition of Lattice Strategies.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[3]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.


23
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Equity Funds
Beginning balance $82,123 $70,649 $66,838 $55,076 $71,629 
Sales6,202 4,303 3,545 5,038 5,313 
Redemptions(5,191)(4,873)(5,102)(5,083)(5,701)
Net flows1,011 (570)(1,557)(45)(388)
Change in market value and other 4,322 12,044 5,368 11,807 (16,165)
Ending balance$87,456 $82,123 $70,649 $66,838 $55,076 
Fixed Income Funds
Beginning balance $17,034 $15,655 $14,771 $14,558 $16,130 
Sales2,258 2,108 1,640 1,667 1,782 
Redemptions(1,486)(1,142)(1,121)(2,241)(2,632)
Net flows772 966 519 (574)(850)
Change in market value and other (101)413 365 787 (722)
Ending balance$17,705 $17,034 $15,655 $14,771 $14,558 
Multi-Strategy Investments Funds [1]
Beginning balance$22,645 $21,116 $20,526 $18,407 $21,332 
Sales738 688 693 801 1,026 
Redemptions(1,751)(798)(841)(733)(1,145)
Net flows(1,013)(110)(148)68 (119)
Change in market value and other 538 1,639 738 2,051 (2,806)
Ending balance$22,170 $22,645 $21,116 $20,526 $18,407 
Exchange-traded Products ("ETP") AUM
Beginning balance$2,825 $2,621 $2,586 $2,574 $3,442 
Net flows4 (5)(80)(124)(67)
Change in market value and other94 209 115 136 (801)
Ending balance$2,923 $2,825 $2,621 $2,586 $2,574 
Mutual Fund and ETP AUM
Beginning balance$124,627 $110,041 $104,721 $90,615 $112,533 
Sales - mutual fund9,198 7,099 5,878 7,506 8,121 
Redemptions - mutual fund(8,428)(6,813)(7,064)(8,057)(9,478)
Net flows - ETP4 (5)(80)(124)(67)
Net flows - mutual fund and ETP774 281 (1,266)(675)(1,424)
Change in market value and other 4,853 14,305 6,586 14,781 (20,494)
Ending balance
130,254 124,627 110,041 104,721 90,615 
Talcott Resolution life and annuity separate account AUM [2]14,944 14,809 13,669 13,123 11,538 
Hartford Funds AUM$145,198 $139,436 $123,710 $117,844 $102,153 
[1]Includes balanced, allocation, and alternative investment products.
[2]Represents AUM of the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.
24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS
 
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Fee income $12 $11 $13 $12 $13 
Other revenue (loss) [1](8)(1)(21)73 2 
Net investment income3 6 3 4 9 
Net realized capital gains (losses)6 24 13 24 (39)
Total revenues13 40 8 113 (15)
Benefits, losses and loss adjustment expenses [2]1 2 1 6 6 
Insurance operating costs and other expenses13 17 9 29 21 
Interest expense57 57 58 57 64 
Restructuring and other costs11 17 87 — — 
Total expenses82 93 155 92 91 
Income (loss) before income taxes(69)(53)(147)21 (106)
Income tax expense (benefit)(11)(12)(39)3 (15)
Net income (loss)(58)(41)(108)18 (91)
Preferred stock dividends5 5 6 5 5 
Net income (loss) available to common stockholders(63)(46)(114)13 (96)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax(6)(24)(12)(26)40 
Restructuring and other costs, before tax11 17 87 — — 
Income tax expense (benefit) [3](2)2 (18)7 (8)
Core losses$(60)$(51)$(57)$(6)$(64)
[1]The three months ended March 31, 2021 and 2020 include $(8) and $(4), respectively, of loss before tax from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.
[2]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$279 $280 $287 $280 $298 
Tax-exempt70 69 72 77 79 
Total fixed maturities349 349 359 357 377 
Equity securities10 12 9 6 12 
Mortgage loans43 44 44 42 42 
Limited partnerships and other alternative investments [2]112 152 83 (71)58 
Other [3]14 19 14 21 (12)
Subtotal528 576 509 355 477 
Investment expense(19)(20)(17)(16)(18)
Total net investment income$509 $556 $492 $339 $459 
Annualized investment yield, before tax [4]3.8 %4.3 %3.8 %2.7 %3.7 %
Annualized limited partnerships and other alternative investment yield, before tax [4]21.1 %32.3 %18.3 %(15.3 %)13.2 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*3.1 %3.2 %3.3 %3.4 %3.3 %
Annualized investment yield, net of tax [4]3.1 %3.5 %3.2 %2.2 %3.0 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*2.6 %2.6 %2.7 %2.8 %2.7 %
Average reinvestment rate [5]2.3 %2.5 %2.1 %2.7 %2.9 %
Average sales/maturities yield [6]2.9 %3.2 %3.5 %3.6 %3.3 %
Portfolio duration (in years) [7]4.8 4.9 5.0 5.0 4.8 
[1]Includes income on short-term investments.
[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in fixed income, private equity, and hedge funds.
[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value.
[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and repurchase agreement and securities lending collateral, if any.
[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.
[7]Excludes certain short-term investments.


26
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$207 $207 $210 $206 $216 
Tax-exempt52 52 53 57 58 
Total fixed maturities259 259 263 263 274 
Equity securities7 7 6 3 10 
Mortgage loans30 30 31 30 29 
Limited partnerships and other alternative investments [2]84 128 72 (62)48 
Other [3]12 15 12 19 (14)
Subtotal392 439 384 253 347 
Investment expense(14)(14)(13)(11)(13)
Total net investment income$378 $425 $371 $242 $334 
Annualized investment yield, before tax [4]3.9 %4.4 %3.9 %2.6 %3.6 %
Annualized limited partnerships and other alternative investment yield, before tax [4]19.2 %32.9 %19.2 %(15.9 %)13.1 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.2 %3.2 %3.3 %3.5 %3.2 %
Annualized investment yield, net of tax [4]3.2 %3.6 %3.3 %2.2 %3.0 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.6 %2.6 %2.7 %2.9 %2.7 %
Average reinvestment rate [5]2.3 %2.6 %2.0 %2.7 %2.9 %
Average sales/maturities yield [6]2.8 %3.0 %3.4 %3.5 %3.2 %
Portfolio duration (in years) [7]4.7 4.9 5.0 4.9 4.7 
Footnotes [1] through [7] are explained on page 26.


27
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDED
 Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$71 $72 $76 $73 $76 
Tax-exempt16 16 17 18 19 
Total fixed maturities87 88 93 91 95 
Equity securities2 1 2 1 1 
Mortgage loans13 14 13 12 13 
Limited partnerships and other alternative investments [2]28 24 11 (9)10 
Other [3]2 3 2 2 1 
Subtotal132 130 121 97 120 
Investment expense(5)(6)(4)(5)(5)
Total net investment income$127 $124 $117 $92 $115 
Annualized investment yield, before tax [4]4.4 %4.3 %4.1 %3.2 %4.0 %
Annualized limited partnerships and other alternative investment yield, before tax [4]29.8 %29.4 %13.8 %(12.4 %)14.0 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.5 %3.5 %3.8 %3.6 %3.7 %
Annualized investment yield, net of tax [4]3.5 %3.5 %3.3 %2.6 %3.3 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.9 %2.9 %3.1 %3.0 %3.0 %
Average reinvestment rate [5]2.8 %2.7 %2.4 %3.3 %3.2 %
Average sales/maturities yield [6]3.3 %4.0 %3.8 %3.9 %4.0 %
Portfolio duration (in years) [7]5.8 6.0 6.2 6.1 5.9 
Footnotes [1] through [7] are explained on page 26.




28
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDED
Net Investment Income by SegmentMar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Investment Income
Commercial Lines$327 $363 $316 $204 $277 
Personal Lines35 47 41 28 41 
P&C Other Operations16 15 14 10 16 
Total Property & Casualty378 425 371 242 334 
Group Benefits127 124 117 92 115 
Hartford Funds1 1 1 1 1 
Corporate3 6 3 4 9 
Total net investment income by segment$509 $556 $492 $339 $459 
THREE MONTHS ENDED
Net Investment Income (Loss) From Limited Partnerships and Other Alternative InvestmentsMar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Total Property & Casualty$84 $128 $72 $(62)$48 
Group Benefits28 24 11 (9)10 
Total net investment income (loss) from limited partnerships and other alternative investments [1]$112 $152 $83 $(71)$58 
[1]Amounts are included above in total net investment income by segment.

29
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Realized Capital Gains (Losses)
Gross gains on sales$31 $54 $27 $96 $78 
Gross losses on sales(31)(8)(12)(22)(8)
Equity securities [1]43 55 42 75 (386)
Net credit losses on fixed maturities, AFS4 5 (1)(20)(12)
Change in ACL on mortgage loans4 — 5 (22)(2)
Intent-to-sell impairments— — — — (5)
Other net gains (losses) [2]29 (4)(55)2 104 
Total net realized capital gains (losses)80 102 6 109 (231)
Net realized capital gains, included in core earnings, before tax(3)(1)— (2)(1)
Total net realized capital gains (losses) excluded from core earnings, before tax77 101 6 107 (232)
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings(15)(21)5 (21)48 
Total net realized capital gains (losses) excluded from core earnings, after tax$62 $80 $11 $86 $(184)
[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and equity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation.
30
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
 Amount [1]PercentAmount [1]PercentAmountPercentAmount PercentAmountPercent
Total investments$55,727 100.0 %$56,532 100.0 %$54,778 100.0 %$53,028 100.0 %$50,359 100.0 %
Asset-backed securities$1,435 3.2 %$1,564 3.5 %$1,490 3.4 %$1,416 3.3 %$1,348 3.4 %
Collateralized loan obligations3,049 7.0 %2,780 6.2 %2,449 5.6 %2,187 5.2 %1,989 5.0 %
Commercial mortgage-backed securities4,167 9.5 %4,484 9.9 %4,444 10.1 %4,211 10.0 %4,302 10.6 %
Corporate19,495 44.8 %20,273 45.0 %19,416 44.1 %18,563 44.0 %16,798 41.8 %
Foreign government/government agencies868 2.0 %919 2.0 %984 2.2 %972 2.3 %1,063 2.6 %
Municipal [2]9,214 21.1 %9,503 21.1 %9,310 21.1 %9,394 22.2 %9,497 23.6 %
Residential mortgage-backed securities4,025 9.3 %4,107 9.2 %4,548 10.3 %3,895 9.3 %4,086 10.2 %
U.S. Treasuries1,354 3.1 %1,405 3.1 %1,403 3.2 %1,562 3.7 %1,122 2.8 %
Total fixed maturities, AFS$43,607 100.0 %$45,035 100.0 %$44,044 100.0 %$42,200 100.0 %$40,205 100.0 %
U.S. government/government agencies$4,837 11.1 %$5,214 11.6 %$5,650 12.8 %$5,204 12.3 %$5,126 12.8 %
AAA6,759 15.5 %6,848 15.2 %6,789 15.4 %6,471 15.3 %6,395 15.9 %
AA8,327 19.1 %8,453 18.8 %8,152 18.5 %8,013 19.0 %7,755 19.3 %
A11,109 25.5 %11,595 25.7 %11,414 25.9 %11,289 26.8 %10,541 26.2 %
BBB10,359 23.7 %10,856 24.1 %10,291 23.4 %9,590 22.7 %8,962 22.3 %
BB1,604 3.7 %1,507 3.3 %1,222 2.8 %1,112 2.6 %974 2.4 %
B557 1.3 %523 1.2 %480 1.1 %481 1.2 %408 1.0 %
CCC47 0.1 %31 0.1 %37 0.1 %31 0.1 %35 0.1 %
CC & below8 — %8 — %9 — %9 — %9 — %
Total fixed maturities, AFS$43,607 100.0 %$45,035 100.0 %$44,044 100.0 %$42,200 100.0 %$40,205 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Primarily comprised of $6.8 billion in Property & Casualty, $2.2 billion in Group Benefits, and $0.2 billion in Corporate as of March 31, 2021.
31
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
MARCH 31, 2021
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$5,150 $5,372 9.6 %
Technology and communications2,976 3,187 5.7 %
Consumer non-cyclical2,877 3,049 5.5 %
Utilities1,971 2,114 3.8 %
Capital goods1,587 1,672 3.0 %
Energy [1]1,523 1,626 2.9 %
Consumer cyclical1,530 1,589 2.9 %
Basic industry795 838 1.5 %
Transportation757 803 1.4 %
Other851 877 1.6 %
Total$20,017 $21,127 37.9 %
Top Ten Exposures by Issuer [2]
Apple Inc.$217 $238 0.4 %
New York State Dormitory Authority200 208 0.4 %
IBM Corporation187 204 0.4 %
Government of Canada196 199 0.4 %
Bank of America Corporation186 199 0.4 %
Citigroup Inc.188 195 0.4 %
New York City Municipal Water Finance Authority184 194 0.3 %
Comcast Corporation170 193 0.3 %
Commonwealth of Massachusetts181 192 0.3 %
Morgan Stanley170 184 0.3 %
Total$1,879 $2,006 3.6 %
[1]Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of, or exposures to, energy-related companies.
[2]Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exchange-traded mutual funds, and exposures resulting from derivative transactions.

32

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

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized capital gains and losses - Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.
•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
•Integration and transaction costs in connection with an acquired business - As transaction costs are incurred upon acquisition of a business and integration costs are completed within a short period after an acquisition, they do not represent ongoing costs of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
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BASIC EARNINGS PER SHARE
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Income available to common stockholders per share
$0.68 $1.48 $1.26 $1.29 $0.75 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized capital losses (gains), excluded from core earnings, before tax
(0.21)(0.28)(0.02)(0.30)0.65 
Restructuring and other costs, before tax0.03 0.05 0.24 — — 
Integration and transaction costs associated with an acquired business, before tax
0.03 0.03 0.04 0.04 0.04 
Change in deferred gain on retroactive reinsurance, before tax
0.02 0.60 0.04 0.15 0.08 
Income tax expense (benefit) on items excluded from core earnings
0.02 (0.11)(0.09)0.04 (0.17)
Core earnings per share$0.57 $1.77 $1.47 $1.22 $1.35 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net Income available to common stockholders per diluted share$0.67 $1.47 $1.26 $1.29 $0.74 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized capital losses (gains), excluded from core earnings, before tax(0.21)(0.28)(0.02)(0.30)0.64 
Restructuring and other costs, before tax0.03 0.05 0.24 — — 
Integration and transaction costs associated with an acquired business, before tax
0.02 0.03 0.04 0.04 0.04 
Change in deferred gain on retroactive reinsurance, before tax
0.02 0.59 0.04 0.15 0.08 
Income tax expense (benefit) on items excluded from core earnings
0.03 (0.10)(0.10)0.04 (0.16)
Core earnings per diluted share
$0.56 $1.76 $1.46 $1.22 $1.34 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:
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LAST TWELVE MONTHS ENDED
 
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income ROE10.5 %10.0 %10.4 %11.3 %11.8 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized capital losses (gains), excluded from core earnings, before tax(1.8 %)0.1 %0.3 %(0.2 %)— %
Restructuring and other costs, before tax0.7 %0.6 %0.5 %— %— %
Loss on extinguishment of debt, before tax
— %— %— %0.6 %0.6 %
Loss on reinsurance transaction, before tax
— %— %— %— %0.6 %
Integration and transaction costs associated with an acquired business, before tax
0.3 %0.3 %0.4 %0.5 %0.6 %
Changes in loss reserves upon acquisition of a business, before tax— %— %— %— %0.7 %
Change in deferred gain on retroactive reinsurance, before tax1.8 %1.8 %0.7 %0.6 %0.3 %
Income tax expense (benefit) on items not included in core earnings(0.3 %)(0.7 %)(0.4 %)(0.3 %)(0.6 %)
Impact of AOCI, excluded from denominator of core earnings ROE(0.3 %)0.6 %0.4 %0.2 %(0.7 %)
Core earnings ROE10.9 %12.7 %12.3 %12.7 %13.3 %
Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 5.
Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in shareholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)-This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.
36
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income$251 $468 $404 $310 $224 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(378)(425)(371)(242)(334)
Net realized capital losses (gains)(53)(54)21 (74)173 
Net servicing and other expense (income)(2)3 4 7 3 
Income tax expense 55 99 73 88 54 
Underwriting gain (127)91 131 89 120 
Current accident year catastrophes214 55 229 248 74 
Prior accident year development229 184 (75)(268)23 
Underlying underwriting gain$316 $330 $285 $69 $217 
COMMERCIAL LINES
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income$129 $478 $323 $(66)$121 
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income (2)(2)(1)— (1)
Net investment income(327)(363)(316)(204)(277)
Net realized capital losses (gains)(44)(45)26 (64)143 
Other expense 4 10 8 11 6 
Income tax expense (benefit)24 105 52 (9)28 
Underwriting gain (loss)(216)183 92 (332)20 
Current accident year catastrophes175 42 107 193 55 
Prior accident year development238 (17)(57)77 41 
Underlying underwriting gain (loss)$197 $208 $142 $(62)$116 
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PERSONAL LINES
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income$135 $170 $79 $371 $98 
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income(4)(4)(5)(3)(2)
Net investment income(35)(47)(41)(28)(41)
Net realized capital losses (gains)(7)(7)(3)(8)23 
Other expense (income)— — 2 (1)— 
Income tax expense35 42 20 97 25 
Underwriting gain 124 154 52 428 103 
Current accident year catastrophes39 13 122 55 19 
Prior accident year development(42)(42)(29)(349)(18)
Underlying underwriting gain$121 $125 $145 $134 $104 
P&C OTHER OPERATIONS
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income (loss)$(13)$(180)$2 $5 $5 
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income(16)(15)(14)(10)(16)
Net realized capital losses (gains)(2)(2)(2)(2)7 
Other expense (income)— (1)— — — 
Income tax expense (benefit)(4)(48)1 — 1 
Underwriting loss(35)(246)(13)(7)(3)
Prior accident year development33 243 11 4 — 
Underlying underwriting loss$(2)$(3)$(2)$(3)$(3)
Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.
38

Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income margin0.6 %3.9 %8.0 %6.7 %6.9 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized capital losses (gains) excluded from core earnings, before tax(1.1)%(1.1)%(0.6)%(0.1)%0.6 %
Integration and transaction costs associated with acquired business, before tax0.1 %0.2 %0.3 %0.3 %0.3 %
Income tax expense (benefit)0.2 %0.3 %0.2 %(0.1)%(0.1)%
Impact of excluding buyouts from denominator of core earnings margin— %— %— %0.1 %0.1 %
Core earnings margin(0.2)%3.3 %7.9 %6.9 %7.8 %
Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Return on Assets ("ROA") 13.1 15.6 14.4 14.1 12.0 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized capital losses (gains), excluded from core earnings, before tax(0.5)(1.8)(1.6)(2.9)3.7 
Effect of income tax expense— 0.3 0.3 0.7 (1.0)
Return on Assets ("ROA"), core earnings 12.6 14.1 13.1 11.9 14.7 

39

Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Total net investment income$509 $556 $492 $339 $459 
Adjustment for loss (gain) from limited partnerships and other alternative investments(112)(152)(83)71 (58)
Net investment income excluding limited partnerships and other alternative investments$397 $404 $409 $410 $401 
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Total net investment income$378 $425 $371 $242 $334 
Adjustment for loss (gain) from limited partnerships and other alternative investments(84)(128)(72)62 (48)
Net investment income excluding limited partnerships and other alternative investments$294 $297 $299 $304 $286 
GROUP BENEFITS
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Total net investment income$127 $124 $117 $92 $115 
Adjustment for loss (gain) from limited partnerships and other alternative investments(28)(24)(11)9 (10)
Net investment income excluding limited partnerships and other alternative investments$99 $100 $106 $101 $105 
40

Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of annualized investment yield to annualized investment yield, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Annualized investment yield3.8 %4.3 %3.8 %2.7 %3.7 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.7)%(1.1)%(0.5)%0.7 %(0.4)%
Annualized investment yield excluding limited partnerships and other alternative investments3.1 %3.2 %3.3 %3.4 %3.3 %
PROPERTY & CASUALTY
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Annualized investment yield3.9 %4.4 %3.9 %2.6 %3.6 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.7)%(1.2)%(0.6)%0.9 %(0.4)%
Annualized investment yield excluding limited partnerships and other alternative investments3.2 %3.2 %3.3 %3.5 %3.2 %
GROUP BENEFITS
THREE MONTHS ENDED
Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Annualized investment yield4.4 %4.3 %4.1 %3.2 %4.0 %
Adjustment for loss (gain) from limited partnerships and other alternative investments(0.9)%(0.8)%(0.3)%0.4 %(0.3)%
Annualized investment yield excluding limited partnerships and other alternative investments3.5 %3.5 %3.8 %3.6 %3.7 %
41