EX-99.2 3 ex992ifs9302021.htm EX-99.2 Document


INVESTOR FINANCIAL SUPPLEMENT
September 30, 2021
thehartfordlogoa.jpg

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 October 27, 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+  A1
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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
HIGHLIGHTS
Net income$482 $905 $249 $537 $459 $468 $273 $1,636 $1,200 
Net income available to common stockholders [1]$476 $900 $244 $532 $453 $463 $268 $1,620 $1,184 
Core earnings*$442 $836 $203 $636 $527 $438 $485 $1,481 $1,450 
Total revenues$5,686 $5,589 $5,299 $5,328 $5,171 $5,068 $4,956 $16,574 $15,195 
Total assets$76,290 $74,732 $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$1.38 $2.54 $0.68 $1.48 $1.26 $1.29 $0.75 $4.60 $3.30 
Core earnings*$1.28 $2.36 $0.57 $1.77 $1.47 $1.22 $1.35 $4.20 $4.05 
Diluted earnings per common share
Net income available to common stockholders$1.36 $2.51 $0.67 $1.47 $1.26 $1.29 $0.74 $4.54 $3.29 
Core earnings*$1.26 $2.33 $0.56 $1.76 $1.46 $1.22 $1.34 $4.15 $4.02 
Weighted average common shares outstanding (basic)345.6 353.7 358.2 358.4 358.3 358.1 358.5 352.5 358.3 
Dilutive effect of stock compensation5.1 4.8 4.0 3.1 2.2 1.2 2.6 4.7 2.0 
Weighted average common shares outstanding and dilutive potential common shares (diluted)350.7 358.5 362.2 361.5 360.5 359.3 361.1 357.2 360.3 
Common shares outstanding341.8 349.0 357.5 358.5 358.2 358.1 357.9 
Book value per common share$51.28 $51.32 $48.58 $50.83 $48.77 $46.74 $41.72 
Per common share impact of accumulated other comprehensive income [2](0.90)(1.64)(0.74)(3.27)(2.39)(1.34)2.68 
Book value per common share (excluding AOCI)*$50.38 $49.68 $47.84 $47.56 $46.38 $45.40 $44.40 
Book value per diluted share$50.53 $50.62 $48.04 $50.39 $48.47 $46.59 $41.42 
Per diluted share impact of AOCI(0.89)(1.61)(0.73)(3.23)(2.38)(1.34)2.65 
Book value per diluted share (excluding AOCI)*$49.64 $49.01 $47.31 $47.16 $46.09 $45.25 $44.07 
Common shares outstanding and dilutive potential common shares346.9 353.8 361.5 361.6 360.4 359.3 360.5 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")12.3 %12.3 %10.5 %10.0 %10.4 %11.3 %11.8 %
Core earnings ROE*12.5 %13.1 %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 ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Earned premiums$4,565 $4,460 $4,343 $4,316 $4,347 $4,234 $4,391 $13,368 $12,972 
Fee income377 375 355 336 323 298 320 1,107 941 
Net investment income650 581 509 556 492 339 459 1,740 1,290 
Net realized gains (losses) 70 147 80 102 6 109 (231)297 (116)
Other revenues24 26 12 18 3 88 17 62 108 
Total revenues 5,686 5,589 5,299 5,328 5,171 5,068 4,956 16,574 15,195 
Benefits, losses and loss adjustment expenses [1]3,420 2,786 3,350 3,080 2,962 2,847 2,916 9,556 8,725 
Amortization of deferred acquisition costs ("DAC")419 417 416 419 421 429 437 1,252 1,287 
Insurance operating costs and other expenses1,200 1,202 1,144 1,086 1,093 1,125 1,176 3,546 3,394 
Interest expense58 57 57 57 58 57 64 172 179 
Amortization of other intangible assets18 17 18 17 18 18 19 53 55 
Restructuring and other costs [2](12)— 11 17 87 — — (1)87 
Total benefits, losses and expenses5,103 4,479 4,996 4,676 4,639 4,476 4,612 14,578 13,727 
Income before income taxes583 1,110 303 652 532 592 344 1,996 1,468 
Income tax expense101 205 54 115 73 124 71 360 268 
Net income482 905 249 537 459 468 273 1,636 1,200 
Preferred stock dividends 6 5 5 5 6 5 5 16 16 
Net income available to common stockholders476 900 244 532 453 463 268 1,620 1,184 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(68)(148)(77)(101)(6)(107)232 (293)119 
Restructuring and other costs, before tax [2](12)— 11 17 87 — — (1)87 
Integration and other non-recurring M&A costs, before tax [3]8 36 9 11 14 13 13 53 40 
Change in deferred gain on retroactive reinsurance, before tax [4]28 39 6 215 14 54 29 73 97 
Income tax expense (benefit) [5]10 9 10 (38)(35)15 (57)29 (77)
Core earnings$442 $836 $203 $636 $527 $438 $485 $1,481 $1,450 
[1]P&C incurred losses arising from the Coronavirus Disease 2019 ("COVID-19") pandemic were $3 and $30, respectively, for the three and nine months ended September 30, 2021 and were $37 and $250, respectively, for the three and nine months ended September 30, 2020. Incurred losses in Group Benefits from excess mortality, primarily caused by direct and indirect impacts of COVID-19, were $212 and $422, respectively, for the three and nine months ended September 30, 2021 and were $42 and $87, respectively, for the three and nine months ended September 30, 2020. COVID-19 related losses from short-term disability claims were $16 and $23, respectively, for the three and nine months ended September 30, 2021 and were $(14) and $(14), respectively, for the three and nine months ended September 30, 2020. The three and nine months ended September 30, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to 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 and nine months ended September 30, 2021 included Navigators Group acquisition integration costs of $5 and $16, respectively, and integration costs related to the 2017 acquisition of Aetna's group benefits business of $1 and $5, respectively. The three and nine month periods ended September 30, 2020 included Navigators Group acquisition transaction and integration costs of $9 and $25, respectively, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $5 and $15, respectively. The nine months ended September 30, 2021 included legal and consulting costs associated with the unsolicited proposals from Chubb Limited to acquire the Company.
[4]As of September 30, 2021, the Company has cumulatively ceded $282 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $28 and $73 in the three and nine month periods ended September 30, 2021. Of the $282 cumulative losses ceded, $191 of the ceded losses has been recognized as a deferred gain within other liabilities as of September 30, 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 $282 of the $300 available limit, there is $18 of remaining limit available as of September 30, 2021.
[5]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.
2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income (loss):
Commercial Lines$357 $569 $129 $478 $323 $(66)$121 $1,055 $378 
Personal Lines51 118 135 170 79 371 98 304 548 
P&C Other Operations22 17 (13)(180)2 5 5 26 12 
Property & Casualty ("P&C")430 704 251 468 404 310 224 1,385 938 
Group Benefits28 170 9 59 119 101 104 207 324 
Hartford Funds56 52 47 51 44 39 36 155 119 
Sub-total514 926 307 578 567 450 364 1,747 1,381 
Corporate (32)(21)(58)(41)(108)18 (91)(111)(181)
Net income 482 905 249 537 459 468 273 1,636 1,200 
Preferred stock dividends6 5 5 5 6 5 5 16 16 
Net income available to common stockholders$476 $900 $244 $532 $453 $463 $268 $1,620 $1,184 
Core earnings (losses):
Commercial Lines$344 $560 $105 $444 $349 $(57)$262 $1,009 $554 
Personal Lines48 113 131 164 77 364 117 292 558 
P&C Other Operations20 15 (15)(16)2 2 11 20 15 
P&C412 688 221 592 428 309 390 1,321 1,127 
Group Benefits19 149 (3)49 116 102 115 165 333 
Hartford Funds58 51 45 46 40 33 44 154 117 
Sub-total489 888 263 687 584 444 549 1,640 1,577 
Corporate (47)(52)(60)(51)(57)(6)(64)(159)(127)
Core earnings$442 $836 $203 $636 $527 $438 $485 $1,481 $1,450 


3
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATE [1]CONSOLIDATED
Sept 30 2021Dec 31 2020Sept 30 2021Dec 31 2020Sept 30 2021Dec 31 2020Sept 30 2021Dec 31 2020Sept 30 2021Dec 31 2020
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value$33,663 $34,173 $9,900 $10,521 $— $— $379 $341 $43,942 $45,035 
Equity securities, at fair value1,023 961 288 204 87 74 218 199 1,616 1,438 
Mortgage loans, net3,702 3,133 1,404 1,360 — — — — 5,106 4,493 
Limited partnerships and other alternative investments2,391 1,711 570 371 — — — — 2,961 2,082 
Other investments213 143 29 7 79 30 16 21 337 201 
Short-term investments1,232 1,086 224 254 221 238 1,935 1,705 3,612 3,283 
Total investments42,224 41,207 12,415 12,717 387 342 2,548 2,266 57,574 56,532 
Cash199 120 20 13 10 15 3 3 232 151 
Restricted cash145 82 20 6 — — — — 165 88 
Premiums receivable and agents’ balances, net4,100 3,779 498 489 — — — — 4,598 4,268 
Reinsurance recoverables, net [2]5,715 5,461 252 244 — — 280 306 6,247 6,011 
DAC844 744 32 38 7 7 — — 883 789 
Deferred income taxes (105)(240)(251)(277)— 2 565 561 209 46 
Goodwill778 778 723 723 181 181 229 229 1,911 1,911 
Property and equipment, net896 961 77 83 11 12 63 66 1,047 1,122 
Other intangible assets423 462 448 478 10 10 — — 881 950 
Other assets1,763 1,425 415 218 106 93 92 330 2,376 2,066 
Assets held for sale [3]167 177 — — — — — — 167 177 
Total assets$57,149 $54,956 $14,649 $14,732 $712 $662 $3,780 $3,761 $76,290 $74,111 
Unpaid losses and loss adjustment expenses$31,190 $29,622 $8,188 $8,233 $— $— $— $— $39,378 $37,855 
Reserves for future policy benefits [2]— — 402 420 — — 200 218 602 638 
Other policyholder funds and benefits payable [2]— — 420 415 — — 265 286 685 701 
Unearned premiums7,223 6,589 45 40 — — — — 7,268 6,629 
Debt— — — — — — 4,943 4,352 4,943 4,352 
Other liabilities2,697 2,631 459 259 237 211 2,008 2,121 5,401 5,222 
Liabilities held for sale [3]151 158 — — — — — — 151 158 
Total liabilities41,261 39,000 9,514 9,367 237 211 7,416 6,977 58,428 55,555 
Common stockholders' equity, excluding AOCI*14,537 13,997 4,559 4,565 475 451 (2,350)(1,961)17,221 17,052 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax1,351 1,959 576 800 — — (1,620)(1,589)307 1,170 
Total stockholders' equity15,888 15,956 5,135 5,365 475 451 (3,636)(3,216)17,862 18,556 
Total liabilities and stockholders' equity$57,149 $54,956 $14,649 $14,732 $712 $662 $3,780 $3,761 $76,290 $74,111 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $2.1 billion and $1.8 billion as of September 30, 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
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
DEBT
Senior notes$3,853 $3,264 $3,263 $3,262 $3,261 3,260 3,260 
Junior subordinated debentures1,090 1,090 1,090 1,090 1,090 1,090 1,089 
Total debt $4,943 $4,354 $4,353 $4,352 $4,351 $4,350 $4,349 
STOCKHOLDERS’ EQUITY
Total stockholders’ equity$17,862 $18,244 $17,702 $18,556 $17,802 $17,072 $15,266 
Less: Preferred stock334 334 334 334 334 334 334 
Less: AOCI307 570 264 1,170 856 479 (957)
Common stockholders' equity, excluding AOCI$17,221 $17,340 $17,104 $17,052 $16,612 $16,259 $15,889 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$22,805 $22,598 $22,055 $22,908 $22,153 $21,422 $19,615 
Total capitalization, excluding AOCI, net of tax*$22,498 $22,028 $21,791 $21,738 $21,297 $20,943 $20,572 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI21.7 %19.3 %19.7 %19.0 %19.6 %20.3 %22.2 %
Total debt to capitalization, excluding AOCI*22.0 %19.8 %20.0 %20.0 %20.4 %20.8 %21.1 %
Total debt and preferred stock to capitalization, including AOCI23.1 %20.7 %21.3 %20.5 %21.1 %21.9 %23.9 %
Total debt and preferred stock to capitalization, excluding AOCI*23.5 %21.3 %21.5 %21.6 %22.0 %22.4 %22.8 %
Total rating agency adjusted debt to capitalization [1] [2]24.3 %22.0 %22.6 %21.8 %22.9 %23.5 %25.6 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]9.8:110.7:14.8:18.9:18.2:17.7:15.4:1
[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 $1.1 billion as of September 30, 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
SEPTEMBER 30, 2021

P&C GROUP BENEFITS
U.S. statutory net income [1][2]$1,015 $58 
U.S. statutory capital [2][3]$11,394 $2,481 
U.S. GAAP adjustments [2]:
DAC822 32 
Non-admitted deferred tax assets [4]230 169 
Deferred taxes [5](941)(576)
Goodwill129 723 
Other intangible assets60 448 
Non-admitted assets other than deferred taxes807 105 
Asset valuation and interest maintenance reserve— 340 
Benefit reserves(88)153 
Unrealized gains on investments1,668 784 
Deferred gain on retroactive reinsurance agreements [6](344)— 
Other, net983 476 
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]14,720 5,135 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group1,168 — 
Total U.S. GAAP stockholders’ equity$15,888 $5,135 
[1]Statutory net income (loss) is for the nine months ended September 30, 2021.
[2]Excludes insurance operations in the U.K. and Continental Europe.
[3]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".
[4]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
[5]Represents the tax timing differences between U.S. GAAP and U.S. STAT.
[6]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
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net unrealized gain on fixed maturities, AFS$1,930 $2,204 $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)(2)(2)
Net gains on cash flow hedging instruments13 12 17 12 31 48 53 
Total net unrealized gain$1,941 $2,214 $1,924 $2,844 $2,460 $2,101 $678 
Foreign currency translation adjustments42 46 44 43 33 27 26 
Pension and other postretirement plan adjustments(1,676)(1,690)(1,704)(1,717)(1,637)(1,649)(1,661)
Total AOCI $307 $570 $264 $1,170 $856 $479 $(957)
7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Written premiums$3,297 $3,254 $3,218 $2,870 $2,980 $2,903 $3,152 $9,769 $9,035 
Change in unearned premium reserve104 172 249 (128)(50)52 113 525 115 
Earned premiums3,193 3,082 2,969 2,998 3,030 2,851 3,039 9,244 8,920 
Fee income 16 16 17 17 16 14 17 49 47 
Losses and loss adjustment expenses
Current accident year before catastrophes [1]1,830 1,786 1,710 1,747 1,802 1,828 1,806 5,326 5,436 
Current accident year catastrophes300 128 214 55 229 248 74 642 551 
Prior accident year development [2]90 (149)229 184 (75)(268)23 170 (320)
Total losses and loss adjustment expenses2,220 1,765 2,153 1,986 1,956 1,808 1,903 6,138 5,667 
Amortization of DAC405 404 402 405 404 412 420 1,211 1,236 
Underwriting expenses [3]588 561 544 520 539 540 597 1,693 1,676 
Amortization of other intangible assets8 7 8 7 8 9 8 23 25 
Dividends to policyholders 5 6 6 6 8 7 8 17 23 
Underwriting gain (loss)*(17)355 (127)91 131 89 120 211 340 
Net investment income487 442 378 425 371 242 334 1,307 947 
Net realized gains (losses)57 56 53 54 (21)74 (173)166 (120)
Net servicing and other income (expense)2 6 2 (3)(4)(7)(3)10 (14)
Income before income taxes529 859 306 567 477 398 278 1,694 1,153 
Income tax expense99 155 55 99 73 88 54 309 215 
Net income430 704 251 468 404 310 224 1,385 938 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(56)(56)(51)(54)20 (71)173 (163)122 
Integration and other non-recurring M&A costs, before tax5 4 7 8 9 8 8 16 25 
Change in deferred gain on retroactive reinsurance, before tax [2]28 39 6 215 14 54 29 73 97 
Income tax expense (benefit) [4]5 (3)8 (45)(19)8 (44)10 (55)
Core earnings$412 $688 $221 $592 $428 $309 $390 $1,321 $1,127 
ROE
Net income available to common stockholders [5] 14.0 %13.8 %11.5 %10.6 %10.2 %11.0 %12.7 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(1.8 %)(1.2 %)(1.4 %)0.6 %0.6 %(0.2 %)(0.2)%
Loss on reinsurance transaction, before tax— %— %— %— %— %— %1.0 %
Integration and other non-recurring M&A costs, before tax0.2 %0.2 %0.3 %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 [2]2.4 %2.2 %2.6 %2.6 %1.0 %0.9 %0.5 %
Income tax expense (benefit) [4](0.3 %)(0.5 %)(0.4 %)(0.8 %)(0.4 %)(0.2 %)(0.6)%
Impact of AOCI, excluded from core earnings ROE1.8 %2.0 %0.7 %1.7 %1.5 %1.4 %0.5 %
Core earnings [5]16.3 %16.5 %13.3 %15.0 %13.2 %13.3 %15.5 %
[1]The three and nine months ended September 30, 2021 included $3 and $30 of COVID-19 losses and loss adjustment expenses in Commercial Lines, with the nine month period including $20 in workers' compensation and $10 in financial lines and other. The three and nine months ended September 30, 2020 included $37 and $250 of COVID-19 losses and loss adjustment expenses, with the nine month period including $141 for commercial property, $57 for financial lines and other and $52 for workers' compensation net of favorable frequency.
[2]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.
[3]The three months ended September 30, 2021 and 2020 included a decrease in the ACL on premiums receivable of $7 and $1, respectively, related to the lessening impacts of COVID-19. The nine months ended September 30, 2021 and 2020 included a decrease (increase) in the ACL on premiums receivable of $22 and ($47), respectively, related to the lessening (increasing) impacts of COVID-19.
[4]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[5]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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines$9 $— $— $— $— $22 $5 $9 $27 
Auto liability - Personal Lines(30)(20)(23)(8)(32)(15)(6)(73)(53)
Homeowners1 4 (3)4 3 2 (2)2 3 
Marine(1)(5)6 2 — 1 — — 1 
Professional liability— (6)(1)2 (21)4 1 (7)(16)
Package business (20)(19)(27)(34)(18)(7)1 (66)(24)
General liability [1]144 — 307 125 (2)102 12 451 112 
Bond(12)(14)— (9)— (10)— (26)(10)
Assumed Reinsurance— (2)2 1 — (7)— — (7)
Commercial property(4)(7)(13)2 (4)5 (7)(24)(6)
Net asbestos reserves— — — (2)— — — — — 
Workers’ compensation (30)(43)(40)(38)(34)(21)(17)(113)(72)
Workers' compensation discount accretion8 9 9 8 9 9 9 26 27 
Catastrophes [2]— (82)(16)(116)— (400)(13)(98)(413)
Uncollectible reinsurance— (1)(9)— (6)(2)— (10)(8)
Other reserve re-estimates(3)(2)31 32 16 (5)11 26 22 
Prior accident year development before change in deferred gain62 (188)223 (31)(89)(322)(6)97 (417)
Change in deferred gain on retroactive reinsurance included in other liabilities [3]28 39 6 215 14 54 29 73 97 
Total prior accident year development$90 $(149)$229 $184 $(75)$(268)$23 $170 $(320)
[1]The three and nine months ended September 30, 2021 included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America ("BSA"). On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA under which The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s, an increase from the $650 settlement announced in April, 2021.
[2]For the three months ended June 30, 2020 and nine months ended September 30, 2020, catastrophe reserve development included a $289 subrogation benefit related to 2017 and 2018 California wildfires, including $260 in Personal Lines and $29 in Commercial Lines.
[3]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. For the three and nine months ended September 30, 2021, an increase in deferred gain of $28 and $73, respectively, was recognized relating to ceding losses to the Navigators ADC in excess of ceded premium paid. For the three months ended September 30, 2021, adverse development on Navigators 2018 and prior accident year reserves was primarily driven by wholesale construction. For the three months ended June 30, 2020, the $54 of adverse development due to the increase in the deferred gain primarily included increased reserves for construction account business within general liability, professional liability, and assumed reinsurance. For the three months ended December 31, 2020, the $215 increase in the deferred gain primarily represented adverse development for A&E of $210 in excess of the ceded premium paid for the A&E ADC.
9
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
UNDERWRITING GAIN (LOSS)$(17)$355 $(127)$91 $131 $89 $120 $211 $340 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]57.3 57.9 57.6 58.3 59.5 64.1 59.4 57.6 60.9 
Current accident year catastrophes9.4 4.2 7.2 1.8 7.6 8.7 2.4 6.9 6.2 
Prior accident year development [2]2.8 (4.8)7.7 6.1 (2.5)(9.4)0.8 1.8 (3.6)
Total losses and loss adjustment expenses69.5 57.3 72.5 66.2 64.6 63.4 62.6 66.4 63.5 
Expenses [3][4]30.8 31.0 31.6 30.5 30.9 33.2 33.2 31.1 32.4 
Policyholder dividends0.2 0.2 0.2 0.2 0.3 0.2 0.3 0.2 0.3 
Combined ratio100.5 88.5 104.3 97.0 95.7 96.9 96.1 97.7 96.2 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(12.2)0.6 (14.9)(7.9)(5.1)0.7 (3.2)(8.7)(2.6)
Underlying combined ratio *88.3 89.2 89.4 89.0 90.6 97.6 92.9 88.9 93.6 
[1]The three months ended September 30, 2021 and 2020 included 0.1 points and 1.2 points, respectively, and the nine months ended September 30, 2021 and 2020 included 0.3 points and 2.8 points, respectively, of COVID-19 losses. See [1] on page 8.
[2]See [4] on page 2 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 and nine months ended September 30, 2021 included a decrease in the ACL on premiums receivable of $7 and $22 respectively, related to the lessening impacts of COVID-19 representing 0.2 points and 0.2 points of the expense ratio, respectively. The three and nine months ended September 30, 2020 included a decrease (increase) in the ACL on premiums receivable of $1 and ($47) respectively, due to the economic impacts of COVID-19 representing 0.03 points and (0.5) points of the expense ratio, respectively.
10
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Written premiums$2,532 $2,494 $2,503 $2,197 $2,199 $2,165 $2,408 $7,529 $6,772 
Change in unearned premium reserve83 150 268 (40)(52)8 143 501 99 
Earned premiums2,449 2,344 2,235 2,237 2,251 2,157 2,265 7,028 6,673 
Fee income8 8 9 9 8 5 8 25 21 
Losses and loss adjustment expenses
Current accident year before catastrophes [1]1,351 1,339 1,296 1,307 1,366 1,472 1,343 3,986 4,181 
Current accident year catastrophes222 93 175 42 107 193 55 490 355 
Prior accident year development [2]122 (105)238 (17)(57)77 41 255 61 
Total losses and loss adjustment expenses1,695 1,327 1,709 1,332 1,416 1,742 1,439 4,731 4,597 
Amortization of DAC348 346 344 346 344 351 356 1,038 1,051 
Underwriting expenses 432 405 394 373 391 387 443 1,231 1,221 
Amortization of other intangible assets7 7 7 6 8 7 7 21 22 
Dividends to policyholders5 6 6 6 8 7 8 17 23 
Underwriting gain (loss)(30)261 (216)183 92 (332)20 15 (220)
Net servicing income2 7 2 2 1 — 1 11 2 
Net investment income421 382 327 363 316 204 277 1,130 797 
Net realized gains (losses)51 47 44 45 (26)64 (143)142 (105)
Other expenses(5)(6)(4)(10)(8)(11)(6)(15)(25)
Income (loss) before income taxes439 691 153 583 375 (75)149 1,283 449 
Income tax expense (benefit)82 122 24 105 52 (9)28 228 71 
Net income (loss)357 569 129 478 323 (66)121 1,055 378 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(50)(47)(43)(46)25 (61)143 (140)107 
Integration and other non-recurring M&A costs, before tax [3]5 4 7 8 9 8 8 16 25 
Change in deferred gain on retroactive reinsurance, before tax [2]28 39 6 5 14 54 29 73 97 
Income tax expense (benefit) [4]4 (5)6 (1)(22)8 (39)5 (53)
Core earnings (losses)$344 $560 $105 $444 $349 $(57)$262 $1,009 $554 
[1]See [1] on page 8 for impact related to COVID-19.
[2]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance.
[3]Includes Navigators Group integration costs.
[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings and includes the effect of changes in net deferred taxes due to changes in enacted tax rates.
11
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Auto liability$9 $— $— $— $— $22 $5 $9 $27 
Professional liability — (6)(1)2 (21)4 1 (7)(16)
Package business (20)(19)(27)(34)(18)(7)1 (66)(24)
General liability144 — 307 125 (2)102 12 451 112 
Marine(1)(5)6 2 — 1 — — 1 
Bond(12)(14)— (9)— (10)— (26)(10)
Assumed Reinsurance— (2)2 1 — (7)— — (7)
Commercial property(4)(7)(13)2 (4)5 (7)(24)(6)
Workers’ compensation(30)(43)(40)(38)(34)(21)(17)(113)(72)
Workers' compensation discount accretion8 9 9 8 9 9 9 26 27 
Catastrophes— (53)(4)(77)— (67)(5)(57)(72)
Uncollectible reinsurance— — (5)— — — — (5)— 
Other reserve re-estimates— (4)(2)(4)(1)(8)13 (6)4 
Prior accident year development before change in deferred gain94 (144)232 (22)(71)23 12 182 (36)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]28 39 6 5 14 54 29 73 97 
Total prior accident year development$122 $(105)$238 $(17)$(57)$77 $41 $255 $61 
[1]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.
12
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
UNDERWRITING GAIN (LOSS)$(30)$261 $(216)$183 $92 $(332)$20 $15 $(220)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]55.2 57.1 58.0 58.4 60.7 68.2 59.3 56.7 62.7 
Current accident year catastrophes9.1 4.0 7.8 1.9 4.8 8.9 2.4 7.0 5.3 
Prior accident year development [2]5.0 (4.5)10.6 (0.8)(2.5)3.6 1.8 3.6 0.9 
Total losses and loss adjustment expenses69.2 56.6 76.5 59.5 62.9 80.8 63.5 67.3 68.9 
Expenses [3] [4]31.8 32.0 32.9 32.0 32.7 34.3 35.2 32.2 34.1 
Policyholder dividends0.2 0.3 0.3 0.3 0.4 0.3 0.4 0.2 0.3 
Combined ratio [2] [5]101.2 88.9 109.7 91.8 95.9 115.4 99.1 99.8 103.3 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(14.1)0.5 (18.4)(1.1)(2.3)(12.5)(4.2)(10.6)(6.2)
Underlying combined ratio 87.2 89.4 91.2 90.7 93.7 102.9 94.9 89.2 97.1 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio84.5 83.6 95.4 80.2 89.5 97.4 93.2 87.6 93.3 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(5.0)(3.8)(12.1)(2.9)(5.5)(13.2)(2.6)(6.8)(7.0)
Prior accident year development4.4 7.2 5.0 9.7 3.7 8.7 (1.3)5.5 3.6 
Underlying combined ratio 83.9 87.0 88.3 87.0 87.7 92.9 89.3 86.3 89.9 
MIDDLE & LARGE COMMERCIAL
Combined ratio108.0 92.9 98.9 86.5 101.2 124.3 103.8 100.1 109.5 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(16.3)(5.8)(7.0)0.2 (5.1)(9.8)(3.6)(9.8)(6.1)
Prior accident year development(0.4)4.4 3.3 6.3 1.6 (1.6)0.2 2.4 0.1 
Underlying combined ratio91.4 91.5 95.3 93.0 97.7 112.9 100.4 92.7 103.5 
GLOBAL SPECIALTY
Combined ratio [2] [5]97.1 91.9 92.4 95.1 99.6 113.8 102.2 93.9 105.2 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(6.2)(1.8)(2.2)(3.0)(3.2)(1.2)(0.6)(3.4)(1.7)
Prior accident year development [2](4.0)0.1 (0.3)1.3 1.8 (7.1)(5.2)(1.4)(3.5)
Underlying combined ratio86.9 90.3 89.9 93.3 98.2 105.5 96.4 89.0 100.0 
[1]The three months ended September 30, 2021 and 2020 included COVID-19 losses of 0.1 points and 1.6 points, respectively, and the nine months ended September 30, 2021 and 2020 included COVID-19 losses of 0.4 points and 3.7 points, respectively. See [1] on page 8.
[2]See [4] on page 2 for discussion related to the change in deferred gain on retroactive reinsurance for the three and nine months ended September 30, 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 and nine months ended September 30, 2021 included a before tax decrease in the ACL on premiums receivable primarily related to the lessening impacts of COVID-19 of $7 and $19, respectively, representing 0.3 points and 0.3 points, respectively, of the expense ratio. The nine months ended September 30, 2020 included a before-tax increase in the ACL on premiums receivable related to the increasing impacts of COVID-19 of $44, representing 0.7 points of the expense ratio.
[5]The three and nine months ended September 30, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $28 and $73, respectively, representing 1.1 points and 1.0 points, respectively, of the Commercial Lines combined ratio and 4.6 points and 4.2 points, respectively, of the global specialty combined ratio. The three and nine months ended September 30, 2020 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $14 and $97, respectively, representing 0.6 points and 1.5 points, respectively, of the Commercial Lines combined ratio and 2.5 points and 5.8 points, respectively, of the global specialty combined ratio.
13
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
WRITTEN PREMIUMS
Small Commercial$1,012 $977 $1,053 $873 $890 $877 $1,011 $3,042 $2,778 
Middle & Large Commercial884 817 775 746 750 683 797 2,476 2,230 
Middle Market765 720 662 647 653 609 680 2,147 1,942 
National Accounts and Other119 97 113 99 97 74 117 329 288 
Global Specialty [1]625 689 665 568 549 595 589 1,979 1,733 
U.S.452 466 421 395 395 389 379 1,339 1,163 
International81 113 110 107 88 119 98 304 305 
Global Re92 110 134 66 66 87 112 336 265 
Other11 11 10 10 10 10 11 32 31 
Total$2,532 $2,494 $2,503 $2,197 $2,199 $2,165 $2,408 $7,529 $6,772 
EARNED PREMIUMS
Small Commercial$1,015 $956 $916 $908 $935 $877 $930 $2,887 $2,742 
Middle & Large Commercial820 788 752 742 749 713 772 2,360 2,234 
Middle Market704 682 653 649 646 625 673 2,039 1,944 
National Accounts and Other116 106 99 93 103 88 99 321 290 
Global Specialty [1]604 589 556 577 555 557 552 1,749 1,664 
U.S.421 406 386 386 387 368 374 1,213 1,129 
International95 99 102 99 101 117 112 296 330 
Global Re88 84 68 92 67 72 66 240 205 
Other10 11 11 10 12 10 11 32 33 
Total$2,449 $2,344 $2,235 $2,237 $2,251 $2,157 $2,265 $7,028 $6,673 
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium$165 $170 $176 $153 $129 $118 $157 $511 $404 
Renewal Written Price Increases3.2 %3.1 %2.4 %2.1 %1.6 %1.8 %2.3 %2.9 %1.9 %
Policy Count Retention [2]84 %84 %84 %83 %84 %83 %83 %84 %83 %
Policy Count Retention, Net of Cancellations [2] [3]93 %82 %86 %84 %79 %88 %84 %87 %84 %
Policies in Force (in thousands)1,352 1,329 1,304 1,283 1,278 1,297 1,291 
Middle Market [4]
Net New Business Premium$139 $147 $122 $124 $131 $99 $125 $408 $355 
Renewal Written Price Increases6.0 %6.2 %6.1 %7.6 %8.0 %7.4 %7.7 %6.1 %7.7 %
Policy Count Retention [2]87 %82 %80 %77 %79 %78 %79 %83 %79 %
Policy Count Retention, Net of Cancellations [2]90 %81 %81 %77 %77 %79 %77 %84 %78 %
Policies in Force (in thousands)61 59 58 59 59 60 62 
Global Specialty
Gross New Business Premium [5]$234 $237 $216 $184 $185 $186 $197 $687 $568 
U.S. - Renewal Written Price Increases9.9 %11.8 %15.8 %18.6 %20.5 %18.9 %11.6 %12.4 %17.0 %
International - Renewal Written Price Increases [6]17.3 %22.7 %27.0 %48.5 %52.6 %47.3 %21.8 %22.7 %38.8 %
[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]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations, represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar period.
[3]Policy count retention, net of cancellations for small commercial increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium with resumption of non-payment cancellations in third quarter 2020.
[4]Except for net new business premium, metrics for Middle Market exclude loss sensitive and programs businesses.
[5]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.
[6]Excludes offshore energy policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 delegates underwriting authority to coverholders and other third parties.
14
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Written premiums [1]$765 $760 $715 $673 $781 $738 $744 $2,240 $2,263 
Change in unearned premium reserve21 22 (19)(88)2 44 (30)24 16 
Earned premiums [1]744 738 734 761 779 694 774 2,216 2,247 
Fee income 8 8 8 8 8 9 9 24 26 
Losses and loss adjustment expenses
Current accident year before catastrophes479 447 414 440 436 356 463 1,340 1,255 
Current accident year catastrophes78 35 39 13 122 55 19 152 196 
Prior accident year development (27)(44)(42)(42)(29)(349)(18)(113)(396)
Total losses and loss adjustment expenses530 438 411 411 529 62 464 1,379 1,055 
Amortization of DAC57 58 58 59 60 61 64 173 185 
Underwriting expenses154 154 148 144 146 150 151 456 447 
Amortization of other intangible assets1 — 1 1 — 2 1 2 3 
Underwriting gain10 96 124 154 52 428 103 230 583 
Net servicing income6 5 4 4 5 3 2 15 10 
Net investment income44 40 35 47 41 28 41 119 110 
Net realized gains (losses)4 6 7 7 3 8 (23)17 (12)
Other income (expense)(1)— — — (2)1 — (1)(1)
Income before income taxes63 147 170 212 99 468 123 380 690 
Income tax expense12 29 35 42 20 97 25 76 142 
Net income51 118 135 170 79 371 98 304 548 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(4)(6)(6)(6)(3)(8)23 (16)12 
Income tax expense (benefit) [2]1 1 2 — 1 1 (4)4 (2)
Core earnings$48 $113 $131 $164 $77 $364 $117 $292 $558 
[1]Written and earned premiums for the three months ended June 30, 2020 included a reduction of $81 for automobile premium credits given to policyholders because of the reduction in miles driven resulting from shelter-in-place guidelines due to COVID-19.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Auto liability$(30)$(20)$(23)$(8)$(32)$(15)$(6)$(73)$(53)
Homeowners1 4 (3)4 3 2 (2)2 3 
Catastrophes [1]— (29)(12)(39)— (333)(8)(41)(341)
Other reserve re-estimates, net2 1 (4)1 — (3)(2)(1)(5)
Total prior accident year development$(27)$(44)$(42)$(42)$(29)$(349)$(18)$(113)$(396)
[1]The three months ended June 30, 2020 included reductions in catastrophe reserves for various 2018 and 2019 wind and hail events and for the 2017 and 2018 California wildfires, including a $260 subrogation benefit from PG&E. See note [2] on page 9 for further discussion.
16
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
UNDERWRITING GAIN$10 $96 $124 $154 $52 $428 $103 $230 $583 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes64.4 60.6 56.4 57.8 56.0 51.3 59.8 60.5 55.9 
Current accident year catastrophes10.5 4.7 5.3 1.7 15.7 7.9 2.5 6.9 8.7 
Prior accident year development [1](3.6)(6.0)(5.7)(5.5)(3.7)(50.3)(2.3)(5.1)(17.6)
Total losses and loss adjustment expenses71.2 59.3 56.0 54.0 67.9 8.9 59.9 62.2 47.0 
Expenses27.4 27.6 27.1 25.8 25.4 29.4 26.7 27.4 27.1 
Combined ratio98.7 87.0 83.1 79.8 93.3 38.3 86.7 89.6 74.1 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
(6.9)1.3 0.4 3.8 (12.0)42.4 (0.2)(1.8)8.9 
Underlying combined ratio91.8 88.2 83.5 83.6 81.4 80.7 86.6 87.9 83.0 
PRODUCT
Automobile
Combined ratio96.5 89.2 83.5 88.3 81.3 82.5 89.8 89.8 84.6 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(2.3)(1.3)(0.5)(0.5)(1.5)(1.8)(0.3)(1.4)(1.2)
Prior accident year development5.5 4.2 3.3 1.9 5.2 5.6 1.5 4.3 4.0 
Underlying combined ratio99.7 92.1 86.3 89.6 84.9 86.3 90.9 92.7 87.4 
Homeowners
Combined ratio103.4 82.0 86.8 60.3 122.9 (45.8)79.2 90.8 52.1 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(28.3)(12.8)(15.9)(4.5)(47.7)(20.1)(7.0)(19.0)(24.9)
Prior accident year development(0.5)10.0 6.3 14.0 (1.2)136.0 4.0 5.2 46.2 
Underlying combined ratio74.6 79.2 77.2 69.9 74.0 70.1 76.2 77.0 73.4 
[1]See note [1] on page 16 for explanation of the favorable prior accident year development in the three months ended June 30, 2020.
17
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA

 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$659 $653 $612 $564 $666 $627 $627 $1,924 $1,920 
AARP Agency51 51 51 53 53 50 57 153 160 
Other Agency49 50 45 51 54 54 52 144 160 
Other6 6 7 5 8 7 8 19 23 
Total$765 $760 $715 $673 $781 $738 $744 $2,240 $2,263 
EARNED PREMIUMS
AARP Direct$635 $629 $623 $644 $657 $581 $647 $1,887 $1,885 
AARP Agency52 53 53 56 56 52 60 158 168 
Other Agency49 50 51 54 57 54 60 150 171 
Other8 6 7 7 9 7 7 21 23 
Total$744 $738 $734 $761 $779 $694 $774 $2,216 $2,247 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$516 $515 $508 $459 $529 $481 $534 $1,539 $1,544 
Homeowners249 245 207 214 252 257 210 701 719 
Total$765 $760 $715 $673 $781 $738 $744 $2,240 $2,263 
EARNED PREMIUMS
Automobile$511 $509 $507 $525 $541 $456 $536 $1,527 $1,533 
Homeowners233 229 227 236 238 238 238 689 714 
Total$744 $738 $734 $761 $779 $694 $774 $2,216 $2,247 

18
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile$58 $56 $53 $45 $55 $65 $58 $167 $178 
Homeowners$17 $16 $13 $12 $16 $18 $17 $46 $51 
Renewal Written Price Increases
Automobile2.2 %2.4 %1.8 %1.7 %2.1 %2.5 %3.1 %2.1 %2.6 %
Homeowners8.1 %8.5 %9.4 %8.7 %7.1 %5.1 %4.7 %8.6 %5.7 %
Policy Count Retention [1]
Automobile84 %85 %85 %85 %85 %84 %84 %85 %84 %
Homeowners84 %85 %85 %85 %85 %84 %84 %85 %84 %
Policy Count Retention, Net of Cancellations[1] [2]
Automobile 87 %79 %85 %84 %84 %90 %86 %83 %86 %
Homeowners86 %81 %85 %84 %84 %89 %86 %84 %86 %
Policies in Force (in thousands)
Automobile1,328 1,339 1,357 1,369 1,392 1,416 1,410 
Homeowners786 799 815 826 846 865 868 
[1]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar period.
[2]Policy count retention, net of cancellations, increased in the three month period ended June 30, 2020 and decreased in the three month period ended September 30, 2020 largely due to suspension of cancellations for non-payment of premium in second quarter 2020 as a result of providing policyholders additional time to pay their premium (until May 31, 2020 in most states) and resumption of non-payment cancellations in third quarter 2020.
19
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Losses and loss adjustment expenses
Prior accident year development$(5)$— $33 $243 $11 $4 $— $28 $15 
Total losses and loss adjustment expenses(5)— 33 243 11 4 — 28 15 
Underwriting expenses2 2 2 3 2 3 3 6 8 
Underwriting gain (loss)3 (2)(35)(246)(13)(7)(3)(34)(23)
Net investment income22 20 16 15 14 10 16 58 40 
Net realized gains (losses)2 3 2 2 2 2 (7)7 (3)
Other income— — — 1 — — — — — 
Income (loss) before income taxes27 21 (17)(228)3 5 6 31 14 
Income tax expense (benefit)5 4 (4)(48)1 — 1 5 2 
Net income (loss)22 17 (13)(180)2 5 5 26 12 
Adjustments to reconcile net income to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax(2)(3)(2)(2)(2)(2)7 (7)3 
Change in deferred gain on retroactive reinsurance, before tax— — — 210 — — — — — 
Income tax expense (benefit) [1]— 1 — (44)2 (1)(1)1 — 
Core earnings (losses)$20 $15 $(15)$(16)$2 $2 $11 $20 $15 
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.






















20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Earned premiums$1,372 $1,378 $1,374 $1,318 $1,317 $1,378 $1,348 $4,124 $4,043 
Fee income43 49 44 43 44 45 43 136 132 
Net investment income159 136 127 124 117 92 115 422 324 
Net realized gains (losses)13 28 19 18 9 3 (8)60 4 
Total revenues1,587 1,591 1,564 1,503 1,487 1,518 1,498 4,742 4,503 
Benefits, losses and loss adjustment expenses [1]1,199 1,019 1,196 1,092 1,005 1,033 1,007 3,414 3,045 
Amortization of DAC11 10 11 11 13 13 13 32 39 
Insurance operating costs and other expenses [2]336 340 339 317 312 340 339 1,015 991 
Amortization of other intangible assets10 10 10 10 10 9 11 30 30 
Total benefits, losses and expenses1,556 1,379 1,556 1,430 1,340 1,395 1,370 4,491 4,105 
Income before income taxes31 212 8 73 147 123 128 251 398 
Income tax expense (benefit)3 42 (1)14 28 22 24 44 74 
Net income28 170 9 59 119 101 104 207 324 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(13)(28)(18)(17)(9)(2)8 (59)(3)
Integration and other non-recurring M&A costs, before tax1 2 2 3 5 5 5 5 15 
Income tax expense (benefit) [3]3 5 4 4 1 (2)(2)12 (3)
Core earnings (losses)$19 $149 $(3)$49 $116 $102 $115 $165 $333 
Margin
Net income margin1.8 %10.7 %0.6 %3.9 %8.0 %6.7 %6.9 %4.4 %7.2 %
Core earnings margin*1.2 %9.5 %(0.2 %)3.3 %7.9 %6.9 %7.8 %3.5 %7.5 %
ROE
Net income available to common stockholders [4]5.4 %7.6 %6.4 %8.3 %11.0 %12.0 %13.4 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(1.9 %)(1.8 %)(1.2 %)(0.5 %)(0.3 %)(0.4 %)(0.6 %)
Integration and other non-recurring M&A costs, before tax0.2 %0.3 %0.4 %0.4 %0.6 %0.7 %0.9 %
Income tax expense (benefit) [3]0.4 %0.3 %0.2 %— %(0.1 %)(0.1 %)(0.1 %)
Impact of AOCI, excluded from core earnings ROE0.8 %1.1 %0.5 %1.4 %1.8 %1.5 %0.6 %
Core earnings [4]4.9 %7.5 %6.3 %9.6 %13.0 %13.7 %14.2 %
[1]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $212 and $42, respectively, for the three months ended September 30, 2021 and 2020 and $422 and $87, respectively, for the nine months ended September 30, 2021 and 2020. The $212 of excess mortality losses in third quarter of 2021 included $233 of losses with dates of loss in the third quarter, a $17 net reduction in estimated losses from the first six months of 2021 and a $4 reduction of estimated losses from the 2020 accident year. Also includes COVID-19 related losses (benefit) from short-term disability and paid family leave claims of $16 and $(14), respectively, for the three months ended September 30, 2021 and 2020 and $23 and $(14), respectively, for the nine months ended September 30, 2021 and 2020.
[2]The three months ended September 30, 2021 and 2020 included $3 and $8, respectively, of before tax decreases (increases) in the ACL on uncollectible premiums receivable and the nine months ended September 30, 2021 and 2020 included decreases (increases) of $6 and $(8), respectively.
[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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
PREMIUMS
Fully insured ongoing premiums
Group disability$702 $696 $693 $646 $652 $672 $660 $2,091 $1,984 
Group life 591 603 602 601 594 605 605 1,796 1,804 
Other [1]79 79 77 70 70 72 58 235 200 
Total fully insured ongoing premiums1,372 1,378 1,372 1,317 1,316 1,349 1,323 4,122 3,988 
Total buyouts [2]— — 2 1 1 29 25 2 55 
Total premiums$1,372 $1,378 $1,374 $1,318 $1,317 $1,378 $1,348 $4,124 $4,043 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$35 $44 $321 $28 $55 $65 $213 $400 $333 
Group life31 43 151 15 69 73 136 225 278 
Other [1]16 12 40 6 10 11 36 68 57 
Total fully insured ongoing sales82 99 512 49 134 149 385 693 668 
Total buyouts [2]— — 2 1 1 29 25 2 55 
Total sales$82 $99 $514 $50 $135 $178 $410 $695 $723 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]68.4 %64.2 %68.4 %65.1 %65.3 %62.6 %71.5 %67.0 %66.4 %
Group life loss ratio [4]110.9 %83.6 %108.3 %102.0 %87.5 %85.9 %74.6 %100.9 %82.6 %
Total loss ratio84.7 %71.4 %84.3 %80.2 %73.8 %72.0 %71.9 %80.1 %72.6 %
Expense ratio [5]25.2 %25.1 %25.3 %24.6 %24.3 %25.6 %26.2 %25.2 %25.4 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts. The nine months ended September 30, 2020 included buyout premiums primarily from two large accounts.
[3]Includes losses (benefits) on short-term disability claims related to COVID-19 of 2.1 points and (2.0) points, respectively, for the three months ended September 30, 2021 and 2020 and 1.0 points and (0.7) points, respectively, for the nine months ended September 30, 2021 and 2020.
[4]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 35.9 points and 7.1 points, respectively, for the three months ended September 30, 2021 and 2020 and 23.5 points and 4.8 points, respectively, for the nine months ended September 30, 2021 and 2020.
[5]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.
22


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Investment management fees $229 $221 $208 $194 $182 $165 $178 $658 $525 
Shareholder servicing fees 26 25 24 22 22 20 22 75 64 
Other revenue53 50 51 50 47 43 48 154 138 
Net realized gains (losses)(3)2 2 6 5 8 (11)1 2 
Total revenues 305 298 285 272 256 236 237 888 729 
Sub-advisory expense83 81 75 70 66 60 64 239 190 
Employee compensation and benefits31 33 37 30 29 28 32 101 89 
Distribution and service94 92 90 84 82 75 80 276 237 
General, administrative and other27 25 25 23 24 23 17 77 64 
Total expenses 235 231 227 207 201 186 193 693 580 
Income before income taxes70 67 58 65 55 50 44 195 149 
Income tax expense14 15 11 14 11 11 8 40 30 
Net income$56 $52 $47 $51 $44 $39 $36 $155 $119 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax3 (2)(2)(6)(5)(8)11 (1)(2)
Income tax expense (benefit) [1](1)1 — 1 1 2 (3)— — 
Core earnings$58 $51 $45 $46 $40 $33 $44 $154 $117 
Daily average Hartford Funds AUM$155,041 $150,527 $143,164 $130,485 $122,528 $110,864 $119,632 $149,599 $117,693 
Return on assets (bps, net of tax) [2]
Net income14.4 13.8 13.1 15.6 14.4 14.1 12.0 13.8 13.5 
Core earnings*15.0 13.6 12.6 14.1 13.1 11.9 14.7 13.7 13.3 
ROE
Net income available to common stockholders [3]56.9 %54.3 %52.9 %49.9 %48.2 %48.2 %50.2 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax(2.0 %)(4.3 %)(6.3 %)(2.4 %)(0.9 %)0.3 %3.0 %
Income tax expense (benefit) [1]0.3 %0.9 %1.2 %0.3 %— %(0.3 %)(1.0)%
Impact of AOCI, excluded from core earnings ROE0.4 %0.3 %(0.2 %)0.3 %0.3 %0.1 %(0.7)%
Core earnings [3]55.6 %51.2 %47.6 %48.1 %47.6 %48.3 %51.5 %
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[2]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.


23
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Equity Funds
Beginning balance $93,448 $87,456 $82,123 $70,649 $66,838 $55,076 $71,629 $82,123 $71,629 
Sales4,757 5,927 6,202 4,303 3,545 5,038 5,313 16,886 13,896 
Redemptions(5,076)(4,461)(5,191)(4,873)(5,102)(5,083)(5,701)(14,728)(15,886)
Net flows(319)1,466 1,011 (570)(1,557)(45)(388)2,158 (1,990)
Change in market value and other (1,529)4,526 4,322 12,044 5,368 11,807 (16,165)7,319 1,010 
Ending balance$91,600 $93,448 $87,456 $82,123 $70,649 $66,838 $55,076 $91,600 $70,649 
Fixed Income Funds
Beginning balance $18,913 $17,705 $17,034 $15,655 $14,771 $14,558 $16,130 $17,034 $16,130 
Sales1,708 2,098 2,258 2,108 1,640 1,667 1,782 6,064 5,089 
Redemptions(996)(1,121)(1,486)(1,142)(1,121)(2,241)(2,632)(3,603)(5,994)
Net flows712 977 772 966 519 (574)(850)2,461 (905)
Change in market value and other 7 231 (101)413 365 787 (722)137 430 
Ending balance$19,632 $18,913 $17,705 $17,034 $15,655 $14,771 $14,558 $19,632 $15,655 
Multi-Strategy Investments Funds [1]
Beginning balance$23,039 $22,170 $22,645 $21,116 $20,526 $18,407 $21,332 $22,645 $21,332 
Sales621 629 738 688 693 801 1,026 1,988 2,520 
Redemptions(706)(718)(1,751)(798)(841)(733)(1,145)(3,175)(2,719)
Net flows(85)(89)(1,013)(110)(148)68 (119)(1,187)(199)
Change in market value and other (29)958 538 1,639 738 2,051 (2,806)1,467 (17)
Ending balance$22,925 $23,039 $22,170 $22,645 $21,116 $20,526 $18,407 $22,925 $21,116 
Exchange-traded Products ("ETP") AUM
Beginning balance$3,111 $2,923 $2,825 $2,621 $2,586 $2,574 $3,442 $2,825 $3,442 
Net flows(13)86 4 (5)(80)(124)(67)77 (271)
Change in market value and other31 102 94 209 115 136 (801)227 (550)
Ending balance$3,129 $3,111 $2,923 $2,825 $2,621 $2,586 $2,574 $3,129 $2,621 
Mutual Fund and ETP AUM
Beginning balance$138,511 $130,254 $124,627 $110,041 $104,721 $90,615 $112,533 $124,627 $112,533 
Sales - mutual fund7,086 8,654 9,198 7,099 5,878 7,506 8,121 24,938 21,505 
Redemptions - mutual fund(6,778)(6,300)(8,428)(6,813)(7,064)(8,057)(9,478)(21,506)(24,599)
Net flows - ETP(13)86 4 (5)(80)(124)(67)77 (271)
Net flows - mutual fund and ETP295 2,440 774 281 (1,266)(675)(1,424)3,509 (3,365)
Change in market value and other (1,520)5,817 4,853 14,305 6,586 14,781 (20,494)9,150 873 
Ending balance
137,286 138,511 130,254 124,627 110,041 104,721 90,615 137,286 110,041 
Talcott Resolution life and annuity separate account AUM [2]14,800 15,282 14,944 14,809 13,669 13,123 11,538 14,800 13,669 
Hartford Funds AUM$152,086 $153,793 $145,198 $139,436 $123,710 $117,844 $102,153 $152,086 $123,710 
[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 ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Fee income [1]$12 $14 $12 $11 $13 $12 $13 $38 $38 
Other revenue (loss) [2]— (2)(8)(1)(21)73 2 (10)54 
Net investment income2 3 3 6 3 4 9 8 16 
Net realized gains (losses)3 61 6 24 13 24 (39)70 (2)
Total revenues17 76 13 40 8 113 (15)106 106 
Benefits, losses and loss adjustment expenses [3]1 2 1 2 1 6 6 4 13 
Insurance operating costs and other expenses [1]17 45 13 17 9 29 21 75 59 
Interest expense58 57 57 57 58 57 64 172 179 
Restructuring and other costs(12)— 11 17 87 — — (1)87 
Total expenses64 104 82 93 155 92 91 250 338 
Income (loss) before income taxes(47)(28)(69)(53)(147)21 (106)(144)(232)
Income tax expense (benefit)(15)(7)(11)(12)(39)3 (15)(33)(51)
Net income (loss)(32)(21)(58)(41)(108)18 (91)(111)(181)
Preferred stock dividends6 5 5 5 6 5 5 16 16 
Net income (loss) available to common stockholders(38)(26)(63)(46)(114)13 (96)(127)(197)
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(2)(62)(6)(24)(12)(26)40 (70)2 
Integration and other non-recurring M&A costs, before tax [4]2 30 — — — — — 32 — 
Restructuring and other costs, before tax(12)— 11 17 87 — — (1)87 
Income tax expense (benefit) [5]3 6 (2)2 (18)7 (8)7 (19)
Core losses$(47)$(52)$(60)$(51)$(57)$(6)$(64)$(159)$(127)
[1]Includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution.
[2]The three months ended September 30, 2020 included $(21) of income (loss) before tax, and the nine months ended September 30, 2021 and 2020 included $(11) and $43, respectively, of income (loss) before tax from the Company's retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021 and the gain on sale of $46, before tax, is included in realized gains (losses) in the nine months ended September 30, 2021.
[3]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[4]See note [3] on page 2 for explanation of the integration and other non-recurring M&A costs in the three and nine months ended September 30, 2021.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.


25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$269 $273 $279 $280 $287 $280 $298 $821 $865 
Tax-exempt63 65 70 69 72 77 79 198 228 
Total fixed maturities332 338 349 349 359 357 377 1,019 1,093 
Equity securities23 10 10 12 9 6 12 43 27 
Mortgage loans45 45 43 44 44 42 42 133 128 
Limited partnerships and other alternative investments [2]259 191 112 152 83 (71)58 562 70 
Other [3]11 18 14 19 14 21 (12)43 23 
Subtotal670 602 528 576 509 355 477 1,800 1,341 
Investment expense(20)(21)(19)(20)(17)(16)(18)(60)(51)
Total net investment income$650 $581 $509 $556 $492 $339 $459 $1,740 $1,290 
Annualized investment yield, before tax [4]4.8 %4.4 %3.8 %4.3 %3.8 %2.7 %3.7 %4.3 %3.4 %
Annualized limited partnerships and other alternative investment yield, before tax [4]39.6 %32.5 %21.1 %32.3 %18.3 %(15.3 %)13.2 %33.7 %5.2 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*3.0 %3.1 %3.1 %3.2 %3.3 %3.4 %3.3 %3.1 %3.3 %
Annualized investment yield, net of tax [4]3.9 %3.6 %3.1 %3.5 %3.2 %2.2 %3.0 %3.6 %2.8 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*2.5 %2.5 %2.6 %2.6 %2.7 %2.8 %2.7 %2.5 %2.7 %
Average reinvestment rate [5]2.6 %2.5 %2.3 %2.5 %2.1 %2.7 %2.9 %2.5 %2.5 %
Average sales/maturities yield [6]3.1 %2.9 %2.9 %3.2 %3.5 %3.6 %3.3 %3.0 %3.5 %
Portfolio duration (in years) [7]4.5 4.6 4.8 4.9 5.0 5.0 4.8 4.5 5.0 
[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 ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$200 $203 $207 $207 $210 $206 $216 $610 $632 
Tax-exempt47 49 52 52 53 57 58 148 168 
Total fixed maturities247 252 259 259 263 263 274 758 800 
Equity securities18 8 7 7 6 3 10 33 19 
Mortgage loans31 32 30 30 31 30 29 93 90 
Limited partnerships and other alternative investments [2]198 151 84 128 72 (62)48 433 58 
Other [3]8 15 12 15 12 19 (14)35 17 
Subtotal502 458 392 439 384 253 347 1,352 984 
Investment expense(15)(16)(14)(14)(13)(11)(13)(45)(37)
Total net investment income$487 $442 $378 $425 $371 $242 $334 $1,307 $947 
Annualized investment yield, before tax [4]4.8 %4.5 %3.9 %4.4 %3.9 %2.6 %3.6 %4.4 %3.4 %
Annualized limited partnerships and other alternative investment yield, before tax [4]37.3 %31.4 %19.2 %32.9 %19.2 %(15.9 %)13.1 %31.6 %5.2 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.0 %3.1 %3.2 %3.2 %3.3 %3.5 %3.2 %3.1 %3.3 %
Annualized investment yield, net of tax [4]4.0 %3.7 %3.2 %3.6 %3.3 %2.2 %3.0 %3.6 %2.8 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.5 %2.6 %2.6 %2.6 %2.7 %2.9 %2.7 %2.5 %2.7 %
Average reinvestment rate [5]2.6 %2.5 %2.3 %2.6 %2.0 %2.7 %2.9 %2.4 %2.4 %
Average sales/maturities yield [6]3.0 %2.9 %2.8 %3.0 %3.4 %3.5 %3.2 %2.9 %3.4 %
Portfolio duration (in years) [7]4.5 4.5 4.7 4.9 5.0 4.9 4.7 4.5 5.0 
Footnotes [1] through [7] are explained on page 26.
27
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDEDNINE MONTHS ENDED
 Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$69 $69 $71 $72 $76 $73 $76 $209 $225 
Tax-exempt14 15 16 16 17 18 19 45 54 
Total fixed maturities83 84 87 88 93 91 95 254 279 
Equity securities4 1 2 1 2 1 1 7 4 
Mortgage loans14 13 13 14 13 12 13 40 38 
Limited partnerships and other alternative investments [2]61 40 28 24 11 (9)10 129 12 
Other [3]2 3 2 3 2 2 1 7 5 
Subtotal164 141 132 130 121 97 120 437 338 
Investment expense(5)(5)(5)(6)(4)(5)(5)(15)(14)
Total net investment income$159 $136 $127 $124 $117 $92 $115 $422 $324 
Annualized investment yield, before tax [4]5.4 %4.7 %4.4 %4.3 %4.1 %3.2 %4.0 %4.8 %3.7 %
Annualized limited partnerships and other alternative investment yield, before tax [4]49.7 %37.1 %29.8 %29.4 %13.8 %(12.4 %)14.0 %42.9 %5.0 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.5 %3.5 %3.5 %3.5 %3.8 %3.6 %3.7 %3.5 %3.7 %
Annualized investment yield, net of tax [4]4.4 %3.8 %3.5 %3.5 %3.3 %2.6 %3.3 %3.9 %3.1 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.8 %2.8 %2.9 %2.9 %3.1 %3.0 %3.0 %2.8 %3.0 %
Average reinvestment rate [5]2.9 %2.7 %2.8 %2.7 %2.4 %3.3 %3.2 %2.8 %2.9 %
Average sales/maturities yield [6]3.5 %3.4 %3.3 %4.0 %3.8 %3.9 %4.0 %3.4 %3.9 %
Portfolio duration (in years) [7]5.6 5.7 5.8 6.0 6.2 6.1 5.9 5.6 6.2 
Footnotes [1] through [7] are explained on page 26.
28
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income by SegmentSept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Investment Income
Commercial Lines$421 $382 $327 $363 $316 $204 $277 $1,130 $797 
Personal Lines44 40 35 47 41 28 41 119 110 
P&C Other Operations22 20 16 15 14 10 16 58 40 
Total Property & Casualty487 442 378 425 371 242 334 1,307 947 
Group Benefits159 136 127 124 117 92 115 422 324 
Hartford Funds2 — 1 1 1 1 1 3 3 
Corporate2 3 3 6 3 4 9 8 16 
Total net investment income by segment$650 $581 $509 $556 $492 $339 $459 $1,740 $1,290 
THREE MONTHS ENDEDNINE MONTHS ENDED
Net Investment Income (Loss) From Limited Partnerships and Other Alternative InvestmentsSept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Total Property & Casualty$198 $151 $84 $128 $72 $(62)$48 $433 $58 
Group Benefits61 40 28 24 11 (9)10 129 12 
Total net investment income (loss) from limited partnerships and other alternative investments [1]$259 $191 $112 $152 $83 $(71)$58 $562 $70 
[1]Amounts are included above in total net investment income by segment.

29
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Realized Gains (Losses)
Gross gains on sales$63 $68 $31 $54 $27 $96 $78 $162 $201 
Gross losses on sales(8)(15)(31)(8)(12)(22)(8)(54)(42)
Equity securities [1]3 88 43 55 42 75 (386)134 (269)
Net credit losses on fixed maturities, AFS— — 4 5 (1)(20)(12)4 (33)
Change in ACL on mortgage loans(2)10 4 — 5 (22)(2)12 (19)
Intent-to-sell impairments— — — — — — (5)— (5)
Other net gains (losses) [2]14 (4)29 (4)(55)2 104 39 51 
Total net realized gains (losses)70 147 80 102 6 109 (231)297 (116)
Net realized gains, included in core earnings, before tax(2)1 (3)(1)— (2)(1)(4)(3)
Total net gains (losses) excluded from core earnings, before tax68 148 77 101 6 107 (232)293 (119)
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings(14)(32)(15)(21)5 (21)48 (61)32 
Total net realized gains (losses) excluded from core earnings, after tax$54 $116 $62 $80 $11 $86 $(184)$232 $(87)
[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. Includes realized losses on the sale of Continental Europe Operations of $19 and $51 for the three months ended June 30, 2021 and September 30, 2020, respectively. Also includes a realized gain on the sale of the Company's 9.7% retained interest in Talcott Resolution, of $46, before tax, for the three months ended June 30, 2021.
30
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020
 Amount [1]PercentAmountPercentAmountPercentAmount [1]PercentAmountPercent
Total investments$57,574 100.0 %$56,787 100.0 %$55,727 100.0 %$56,532 100.0 %$54,778 100.0 %
Asset-backed securities$1,207 2.7 %$1,321 3.0 %$1,435 3.2 %$1,564 3.5 %$1,490 3.4 %
Collateralized loan obligations3,011 6.9 %3,100 7.0 %3,049 7.0 %2,780 6.2 %2,449 5.6 %
Commercial mortgage-backed securities4,191 9.5 %4,095 9.3 %4,167 9.5 %4,484 9.9 %4,444 10.1 %
Corporate18,861 43.0 %19,161 43.5 %19,495 44.8 %20,273 45.0 %19,416 44.1 %
Foreign government/government agencies953 2.2 %873 2.0 %868 2.0 %919 2.0 %984 2.2 %
Municipal [2]8,878 20.2 %9,161 20.8 %9,214 21.1 %9,503 21.1 %9,310 21.1 %
Residential mortgage-backed securities3,286 7.4 %3,520 8.0 %4,025 9.3 %4,107 9.2 %4,548 10.3 %
U.S. Treasuries3,555 8.1 %2,792 6.4 %1,354 3.1 %1,405 3.1 %1,403 3.2 %
Total fixed maturities, AFS$43,942 100.0 %$44,023 100.0 %$43,607 100.0 %$45,035 100.0 %$44,044 100.0 %
U.S. government/government agencies$6,640 15.1 %$6,031 13.7 %$4,837 11.1 %$5,214 11.6 %$5,650 12.8 %
AAA6,183 14.1 %6,350 14.4 %6,759 15.5 %6,848 15.2 %6,789 15.4 %
AA7,794 17.7 %8,030 18.2 %8,327 19.1 %8,453 18.8 %8,152 18.5 %
A11,068 25.2 %11,175 25.4 %11,109 25.5 %11,595 25.7 %11,414 25.9 %
BBB9,895 22.5 %10,145 23.1 %10,359 23.7 %10,856 24.1 %10,291 23.4 %
BB1,769 4.0 %1,724 3.9 %1,604 3.7 %1,507 3.3 %1,222 2.8 %
B550 1.3 %521 1.2 %557 1.3 %523 1.2 %480 1.1 %
CCC38 0.1 %41 0.1 %47 0.1 %31 0.1 %37 0.1 %
CC & below5 — %6 — %8 — %8 — %9 — %
Total fixed maturities, AFS$43,942 100.0 %$44,023 100.0 %$43,607 100.0 %$45,035 100.0 %$44,044 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Primarily comprised of $6.6 billion in Property & Casualty, $2.1 billion in Group Benefits, and $0.2 billion in Corporate as of September 30, 2021.
31
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
SEPTEMBER 30, 2021
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$4,977 $5,232 9.1 %
Technology and communications2,948 3,191 5.5 %
Consumer non-cyclical2,682 2,874 5.0 %
Utilities1,880 2,042 3.5 %
Energy [1]1,459 1,585 2.8 %
Capital goods1,466 1,560 2.7 %
Consumer cyclical1,351 1,420 2.5 %
Basic industry793 836 1.5 %
Transportation741 793 1.4 %
Other916 944 1.6 %
Total$19,213 $20,477 35.6 %
Top Ten Exposures by Issuer [2]
Government of Canada$277 $279 0.5 %
Apple Inc.213 236 0.4 %
IBM Corporation201 220 0.4 %
Bank of America Corporation190 206 0.4 %
Comcast Corporation169 192 0.3 %
Morgan Stanley170 186 0.3 %
State of California169 185 0.3 %
New York City Municipal Water Finance Authority176 184 0.3 %
Hyundai Motor Company173 172 0.3 %
JPMorgan Chase & Company165 171 0.3 %
Total$1,903 $2,031 3.5 %
[1]Excludes investments in foreign government, government agency securities or other fixed maturities that are correlated to energy exposure but are not direct obligations of, or exposures to, energy-related companies.
[2]Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, 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, certain M&A costs, 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. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").
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, policy count retention, net of cancellations, and renewal written price increases. Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention, net of cancellations represents the ratio of the number of renewal policies issued net of cancellations during the current year period divided by the number of policies issued net of cancellations in the previous calendar 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 other non-recurring M&A costs. 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 other non-recurring M&A costs) 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 gains and losses - Some realized 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 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 other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
34
BASIC EARNINGS PER SHARE
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Income available to common stockholders per share
$1.38 $2.54 $0.68 $1.48 $1.26 $1.29 $0.75 $4.60 $3.30 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax
(0.20)(0.42)(0.21)(0.28)(0.02)(0.30)0.65 (0.83)0.33 
Restructuring and other costs, before tax(0.03)— 0.03 0.05 0.24 — — — 0.24 
Integration and other non-recurring M&A costs, before tax
0.02 0.10 0.03 0.03 0.04 0.04 0.04 0.15 0.11 
Change in deferred gain on retroactive reinsurance, before tax
0.08 0.11 0.02 0.60 0.04 0.15 0.08 0.21 0.27 
Income tax expense (benefit) on items excluded from core earnings
0.03 0.03 0.02 (0.11)(0.09)0.04 (0.17)0.07 (0.20)
Core earnings per share$1.28 $2.36 $0.57 $1.77 $1.47 $1.22 $1.35 $4.20 $4.05 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
NINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net Income available to common stockholders per diluted share$1.36 $2.51 $0.67 $1.47 $1.26 $1.29 $0.74 $4.54 $3.29 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax(0.19)(0.41)(0.21)(0.28)(0.02)(0.30)0.64 (0.82)0.33 
Restructuring and other costs, before tax(0.03)— 0.03 0.05 0.24 — — — 0.24 
Integration and other non-recurring M&A costs, before tax
0.02 0.10 0.02 0.03 0.04 0.04 0.04 0.15 0.11 
Change in deferred gain on retroactive reinsurance, before tax
0.08 0.11 0.02 0.59 0.04 0.15 0.08 0.20 0.27 
Income tax expense (benefit) on items excluded from core earnings
0.02 0.02 0.03 (0.10)(0.10)0.04 (0.16)0.08 (0.22)
Core earnings per diluted share
$1.26 $2.33 $0.56 $1.76 $1.46 $1.22 $1.34 $4.15 $4.02 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:
35
 
LAST TWELVE MONTHS ENDED
 
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020
Net income ROE12.3 %12.3 %10.5 %10.0 %10.4 %11.3 %11.8 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains), excluded from core earnings, before tax(2.3 %)(1.9 %)(1.8 %)0.1 %0.3 %(0.2 %)— %
Restructuring and other costs, before tax0.1 %0.7 %0.7 %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 other non-recurring M&A costs, before tax
0.4 %0.4 %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 tax1.6 %1.6 %1.8 %1.8 %0.7 %0.6 %0.3 %
Income tax benefit on items not included in core earnings(0.1 %)(0.3 %)(0.3 %)(0.7 %)(0.4 %)(0.3 %)(0.6)%
Impact of AOCI, excluded from denominator of core earnings ROE0.5 %0.3 %(0.3 %)0.6 %0.4 %0.2 %(0.7)%
Core earnings ROE12.5 %13.1 %10.9 %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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income$430 $704 $251 $468 $404 $310 $224 $1,385 $938 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(487)(442)(378)(425)(371)(242)(334)(1,307)(947)
Net realized losses (gains)(57)(56)(53)(54)21 (74)173 (166)120 
Net servicing and other expense (income)(2)(6)(2)3 4 7 3 (10)14 
Income tax expense 99 155 55 99 73 88 54 309 215 
Underwriting gain (loss)(17)355 (127)91 131 89 120 211 340 
Current accident year catastrophes300 128 214 55 229 248 74 642 551 
Prior accident year development90 (149)229 184 (75)(268)23 170 (320)
Underlying underwriting gain$373 $334 $316 $330 $285 $69 $217 $1,023 $571 
COMMERCIAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income$357 $569 $129 $478 $323 $(66)$121 $1,055 $378 
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income (2)(7)(2)(2)(1)— (1)(11)(2)
Net investment income(421)(382)(327)(363)(316)(204)(277)(1,130)(797)
Net realized losses (gains)(51)(47)(44)(45)26 (64)143 (142)105 
Other expense 5 6 4 10 8 11 6 15 25 
Income tax expense (benefit)82 122 24 105 52 (9)28 228 71 
Underwriting gain (loss)(30)261 (216)183 92 (332)20 15 (220)
Current accident year catastrophes222 93 175 42 107 193 55 490 355 
Prior accident year development122 (105)238 (17)(57)77 41 255 61 
Underlying underwriting gain (loss)$314 $249 $197 $208 $142 $(62)$116 $760 $196 
37
PERSONAL LINES
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income$51 $118 $135 $170 $79 $371 $98 $304 $548 
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income(6)(5)(4)(4)(5)(3)(2)(15)(10)
Net investment income(44)(40)(35)(47)(41)(28)(41)(119)(110)
Net realized losses (gains)(4)(6)(7)(7)(3)(8)23 (17)12 
Other expense (income)1 — — — 2 (1)— 1 1 
Income tax expense12 29 35 42 20 97 25 76 142 
Underwriting gain 10 96 124 154 52 428 103 230 583 
Current accident year catastrophes78 35 39 13 122 55 19 152 196 
Prior accident year development(27)(44)(42)(42)(29)(349)(18)(113)(396)
Underlying underwriting gain$61 $87 $121 $125 $145 $134 $104 $269 $383 
P&C OTHER OPERATIONS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income (loss)$22 $17 $(13)$(180)$2 $5 $5 $26 $12 
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income(22)(20)(16)(15)(14)(10)(16)(58)(40)
Net realized losses (gains)(2)(3)(2)(2)(2)(2)7 (7)3 
Other income— — — (1)— — — — — 
Income tax expense (benefit)5 4 (4)(48)1 — 1 5 2 
Underwriting loss3 (2)(35)(246)(13)(7)(3)(34)(23)
Prior accident year development(5)— 33 243 11 4 — 28 15 
Underlying underwriting loss$(2)$(2)$(2)$(3)$(2)$(3)$(3)$(6)$(8)
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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Net income margin1.8 %10.7 %0.6 %3.9 %8.0 %6.7 %6.9 %4.4 %7.2 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains) excluded from core earnings, before tax(0.9)%(1.7)%(1.1)%(1.1)%(0.6)%(0.1)%0.6 %(1.3)%(0.1)%
Integration and other non-recurring M&A costs, before tax0.1 %0.1 %0.1 %0.2 %0.3 %0.3 %0.3 %0.1 %0.3 %
Income tax expense (benefit)0.2 %0.4 %0.2 %0.3 %0.2 %(0.1)%(0.1)%0.3 %— %
Impact of excluding buyouts from denominator of core earnings margin— %— %— %— %— %0.1 %0.1 %— %0.1 %
Core earnings margin1.2 %9.5 %(0.2)%3.3 %7.9 %6.9 %7.8 %3.5 %7.5 %
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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Return on Assets ("ROA") 14.4 13.8 13.1 15.6 14.4 14.1 12.0 13.8 13.5 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax0.8 (0.5)(0.5)(1.8)(1.6)(2.9)3.7 (0.1)(0.2)
Effect of income tax expense(0.2)0.3 — 0.3 0.3 0.7 (1.0)— — 
Return on Assets ("ROA"), core earnings 15.0 13.6 12.6 14.1 13.1 11.9 14.7 13.7 13.3 

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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Total net investment income$650 $581 $509 $556 $492 $339 $459 $1,740 $1,290 
Adjustment for loss (income) from limited partnerships and other alternative investments(259)(191)(112)(152)(83)71 (58)(562)(70)
Net investment income excluding limited partnerships and other alternative investments$391 $390 $397 $404 $409 $410 $401 $1,178 $1,220 
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Total net investment income$487 $442 $378 $425 $371 $242 $334 $1,307 $947 
Adjustment for loss (income) from limited partnerships and other alternative investments(198)(151)(84)(128)(72)62 (48)(433)(58)
Net investment income excluding limited partnerships and other alternative investments$289 $291 $294 $297 $299 $304 $286 $874 $889 
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Total net investment income$159 $136 $127 $124 $117 $92 $115 $422 $324 
Adjustment for loss (income) from limited partnerships and other alternative investments(61)(40)(28)(24)(11)9 (10)(129)(12)
Net investment income excluding limited partnerships and other alternative investments$98 $96 $99 $100 $106 $101 $105 $293 $312 
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 ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Annualized investment yield4.8 %4.4 %3.8 %4.3 %3.8 %2.7 %3.7 %4.3 %3.4 %
Adjustment for loss (income) from limited partnerships and other alternative investments(1.8)%(1.3)%(0.7)%(1.1)%(0.5)%0.7 %(0.4)%(1.2)%(0.1)%
Annualized investment yield excluding limited partnerships and other alternative investments3.0 %3.1 %3.1 %3.2 %3.3 %3.4 %3.3 %3.1 %3.3 %
PROPERTY & CASUALTY
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Annualized investment yield4.8 %4.5 %3.9 %4.4 %3.9 %2.6 %3.6 %4.4 %3.4 %
Adjustment for loss (income) from limited partnerships and other alternative investments(1.8)%(1.4)%(0.7)%(1.2)%(0.6)%0.9 %(0.4)%(1.3)%(0.1)%
Annualized investment yield excluding limited partnerships and other alternative investments3.0 %3.1 %3.2 %3.2 %3.3 %3.5 %3.2 %3.1 %3.3 %
GROUP BENEFITS
THREE MONTHS ENDEDNINE MONTHS ENDED
Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2020Sept 30 2020Jun 30 2020Mar 31 2020Sept 30 2021Sept 30 2020
Annualized investment yield5.4 %4.7 %4.4 %4.3 %4.1 %3.2 %4.0 %4.8 %3.7 %
Adjustment for loss (income) from limited partnerships and other alternative investments(1.9)%(1.2)%(0.9)%(0.8)%(0.3)%0.4 %(0.3)%(1.3)%— %
Annualized investment yield excluding limited partnerships and other alternative investments3.5 %3.5 %3.5 %3.5 %3.8 %3.6 %3.7 %3.5 %3.7 %
41