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Overview of The Hartford: A Leading Provider of

Property and Casualty Insurance, Group Benefits and

Mutual Funds

The Hartford Financial Services Group, Inc.

February 15, 2019

© 2019 by The Hartford. Classification: Non-Confidential. No part of this document may be reproduced, published or used without the permission of The Hartford.


Certain statements made in this presentation should be considered forward-looking statements as

defined in the Private Securities Litigation Reform Act of 1995. These include statements about The

Hartford’s future results of operations. We caution investors that these forward-looking statements are

not guarantees of future performance, and actual results may differ materially. Investors should

consider the important risks and uncertainties that may cause actual results to differ, including those

discussed in The Hartford’s news release issued on February 4, 2019, The Hartford’s Quarterly Reports

on Form 10-Q, The Hartford’s 2017 Annual Report on Form 10-K, and other filings we make with the

U.S. Securities and Exchange Commission. We assume no obligation to update this presentation,

which speaks as of today’s date.

The discussion in this presentation of The Hartford’s financial performance includes financial measures

that are not derived from generally accepted accounting principles (GAAP). Information regarding these

non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial

measures, is provided in the news release issued on February 4, 2019 and The Hartford’s Investor

Financial Supplement for fourth quarter 2018 which is available at the Investor Relations section of The

Hartford’s website at https://ir.thehartford.com.

From time to time, The Hartford may use its website to disseminate material company information.

Financial and other important information regarding The Hartford is routinely accessible through and

posted on our website at https://ir.thehartford.com. In addition, you may automatically receive email

alerts and other information about The Hartford when you enroll your email address by visiting the

“Email Alerts” section at https://ir.thehartford.com.

2

Safe harbor statement


https://ir.thehartford.com/




3

The Hartford is a leading property and casualty insurance,

group benefits and mutual funds provider

With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in property and

casualty (P&C) insurance, group benefits and mutual

funds, with products sold primarily through a network of

independent agents and brokers. For 35 years, The

Hartford has offered the only national, direct auto and

home insurance program endorsed by AARP1 for its

nearly 38 million members. The Hartford helps its

customers prepare for the unexpected, protect what is

most important to them and prevail when the

unforeseen happens.

Financial Strength2 A.M. Best Moody’s S&P

Hartford Fire Insurance Company A+ A1 A+

Hartford Life and Accident Insurance Company A A2 A

Hartford Financial Services Group Ratings2 A.M. Best Moody’s S&P

Senior debt a- Baa1 BBB+

Junior subordinated debentures bbb Baa2 BBB-

Preferred stock bbb Baa3 BBB-

1. American Association of Retired Persons 2. All ratings are on stable outlook at A.M. Best, Moody’s and Standard and Poor’s



4

• Excellent financial results despite a second consecutive year of elevated catastrophe losses;

P&C underlying combined ratio1 of 91.5, 1.0 point better than 2017 and

Group Benefits core earnings margin1 of 7.0%, 1.2 points better than 2017

• 2018 core earnings1 of $1,575 million grew 55% from $1,014 million in 2017

• Core EPS1,2 of $4.33 rose 58% from $2.74 in 2017

Increased Core

Earnings Despite

High Catastrophes

Higher ROE

and

BVPS Growth

Several Key

Strategic

Accomplishments

Reduced Debt

to Capital Ratios

1. Denotes financial measure not calculated based on generally accepted accounting principles (GAAP) 2. Earnings per diluted share (EPS) 3. Core earnings return on equity (ROE) 4. Book value per diluted share (BVPS), excluding accumulated other

comprehensive income (AOCI) 5. Shareholder value creation (SVC) in a period is defined as the change in BVPS (ex. AOCI) plus common stockholder dividends paid during the period, divided by BVPS (ex. AOCI) at beginning of period 6. 2018 pro forma

reflects the repayment of the $413 million 6.0% senior note in Jan. 2019 7. The leverage calculation reflects adjustments related to The Hartford’s defined benefit plans' unfunded pension liability and The Hartford's rental expense on operating leases for a total

adjustment of $0.9 billion and $1.0 billion for Dec. 31, 2018 and Dec. 31, 2017, respectively 8. Reflects 25% equity credit for The Hartford's outstanding junior subordinated debentures and 50% equity credit for The Hartford’s outstanding preferred stock

Excellent financial results and several important strategic

accomplishments in 2018

• Continued successful integration of Nov. 2017 Group Benefits acquisition; strong sales and

retention achieved and initial expense reduction targets exceeded

• Closed the sale of Talcott Resolution on May 31, 2018

• Signed a definitive agreement to acquire The Navigators Group Inc. (Navigators);

expected to close in late March or April 2019

• Reduced debt by $733 million in 2018 and January 2019; and leverage within target

• Total debt to capitalization ratio, excluding AOCI, of 24.2% at Dec. 31, 2018 decreased 3.8

points from Dec. 31, 2017 due to reduced debt and higher total equity; 22.5% pro forma6 for

Jan. 2019 debt maturity repayment

• Total rating agency adjusted debt capitalization ratio7,8 of 29.2% at Dec. 31, 2018; 27.6% pro

forma for Jan. 2019 debt maturity repayment


• 2018 core earnings ROE1,3 of 11.6% well above cost of equity capital; up 4.9 points over 2017

• P&C core earnings ROE of 16.3%, despite catastrophe losses significantly above outlook and

10-year average

• BVPS (ex. AOCI)1,4 of $39.40 at Dec. 31, 2018, rose 12% from Dec. 31, 2017

• Shareholder value creation (SVC)5 of 15% over the last 12 months


5

The Hartford's primary strategic goal is to strengthen the

competitive advantages of our businesses

While expanding product capabilities and risk appetite are key

pillars of our strategy, with the recent Group Benefits acquisition

and the future acquisition of Navigators, the near term focus is

on successfully integrating the acquisitions and maximizing our

combined potential, including deepening our distribution

relationships and meeting a broader array of customer needs


Multiple initiatives and investments are underway at The

Hartford to drive continued progress on processes,

technology, service quality and speed, including expanded

digital capabilities, use of robotics and continued

enhancements to underwriting and quoting platforms,

including ICON1, our Small Commercial system

We are investing in our employees and striving to attract,

retain and develop the best talent in the industry, enhance

our industry-leading position in diversity and inclusion, and

sustain our ethical culture

1. Inter-Comm on the Net (ICON)


6

We are a responsible corporate citizen, recognized for our early

adoption of and continued adherence to many sustainability best

practices and disclosures

• Named to the 2018 Dow Jones Sustainability Indices for the seventh year in a row in recognition of

our commitment to sustainability and our leadership on economic, environmental and social issues

• Named to the 2018 JUST 100 list as a company doing right within society by treating customers well,

minimizing environmental impact, supporting the communities in which they operate, committing to

ethical and diverse leadership, and treating employees well

• Selected for inclusion in the FTSE4Good Index Series, designed to measure the performance of

companies demonstrating strong Environmental, Social and Governance (ESG) practices

• Earned two Climate Leadership Awards for Excellence in Greenhouse Gas Management – both

for Goal Achievement as well as Goal Setting

• The Hartford has disclosed to CDP since 2007, demonstrating our commitment to managing climate

change through business strategy integration and actionable steps to mitigate climate-related risk.

https://www.thehartford.com/about-us/corporate-sustainability

The Hartford’s sustainability strategy is built around measurable goals intended to create long term

shareholder value and contribute positively to society at large. Our efforts address economic,

environmental and social impacts as highlighted in four key areas:


To learn more, please access our Sustainability Report at:

https://www.thehartford.com/about-us/corporate-sustainability


7

A diverse and inclusive talent base and ethical, customer-centric

culture supports our businesses and progress

• Industry-leading position in diversity and inclusion that helps strengthen employee engagement and

productivity

– Focused on attracting millennials to the insurance industry

– Nine employee diversity resource groups ensure an inclusive work environment

• Our goal is to attract, retain and develop the best talent in the industry to support our continued growth

and innovation

– Investing in contemporary work practices

– Expanding in key locations across the U.S.

– Competitive compensation and benefits

• Focused on employee engagement and improvement, which drives improved productivity

– Achieved top quartile employee engagement scores benchmarked against U.S. companies for the last three years

2010-2015,

2017-2018

(2010-2015, 2018)

(2014-2018)



$35.29$39.40

2017 2018

6.7%7.8%

11.6%

2017 2017 Adjusted 2018

Core earnings ROE increased significantly

in 2018, well above cost of equity capital

8

The Hartford’s primary financial goals are to generate core earnings

ROE in excess of cost of equity capital and to grow BVPS (ex. AOCI)

BVPS (ex. AOCI) rose 12% in 2018

• 2018 core earnings ROE1 of 11.6%, the

strongest core earnings ROE in more than a

decade, rose significantly from 6.7% (7.8%

adjusted2) in 2017

− Well in excess of cost of equity capital

• The Hartford is also focused on shareholder

value creation (SVC)3 through growth of

BVPS (ex. AOCI) and common stockholder

dividends paid over time

− BVPS (ex. AOCI) of $39.40 at Dec. 31, 2018,

rose 12%, primarily due to net income in excess

of stockholder dividends

− $379 million of common dividends were paid in

2018, up 11% over 2017

− Including dividends paid per share, SVC of 15%

in 2018

1. Core earnings ROE is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI 2. Adjustment reduced Dec. 31, 2016 beginning equity by approximately $4.2 billion for loss on

discontinued operations of $2.9 billion, pension transfer charge of $488 million and tax charge of $877 million 3. Shareholder value creation (SVC) in a period is defined as the change in BVPS (ex. AOCI) plus common stockholder dividends paid during the

period, divided by BVPS (ex. AOCI) at beginning of period



9

Expands

geographic

reach

Proven and

tenured talent

Broaden and

deepen product

offerings

2018 financial highlights; except for catastrophe losses, met or

exceeded 2018 key business metrics outlook

• Core EPS of $4.33 rose 58% from $2.74 in 2017 due principally to a 55% increase in core earnings including

the impact of a lower U.S. corporate tax rate

• Adjusted for the 2Q17 pension settlement charge, 2018 income before income taxes of $1,753 million was

$280 million, or 19%, higher than 2017 due to growth in Commercial Lines, Group Benefits and Hartford Funds

• Core earnings of $1,230 million, up $331 million from 2017 due to better underwriting results, higher net

investment income and a lower U.S. corporate tax rate, despite high CAY CATs1 in both years

• Underlying combined ratio of 91.5 improved 1.0 point from 2017, with better underlying underwriting results

in both Commercial Lines and Personal Lines

• Higher underwriting gain2 primarily due to higher net favorable PYD3 and lower CAY CATs

• Underlying combined ratio of 91.5 improved 0.5 point from 2017 primarily due to margin improvement in

general liability and auto, compared with 2018 outlook range of 90.0 - 92.5

• Higher underwriting loss2 due to higher CAY CATs in 2018, partially offset by improved underlying

underwriting results

• Underlying combined ratio of 91.2 improved 1.8 points from 2017 with better loss results in both auto and

homeowners, partially offset by a higher expense ratio mainly from increased marketing spend and the impact

of lower earned premium; 2018 outlook range was 90.5 - 92.5

• Core earnings of $427 million, up 82% from $234 million from 2017 and above 2018 outlook of $310 million to

$330 million; growth due principally to the 4Q17 acquisition and a lower U.S. corporate tax rate

• Loss ratio of 75.3% improved 0.8 point from 2017 and expense ratio decreased 1.7 points

Core

Earnings

Property

& Casualty

Commercial

Lines

Personal

Lines

Group

Benefits

1. Current accident year (CAY) catastrophe losses (CATs) 2. Denotes financial measure not calculated based on GAAP 3. Prior accident year development (PYD) 4. Hartford Funds and ETPs on Morningstar net of fees basis at Dec. 31, 2018

• Hartford Funds core earnings rose 37% to $151 million due to higher average assets under management

(AUM) and lower U.S. corporate tax rate

• Fund performance remains strong as 53%, 66% and 68% of funds outperformed peers on a 1-year, 3-year

and 5-year basis4, respectively; 51% of funds rated 4 or 5 stars by Morningstar as of Dec. 31, 2018

Hartford

Funds



10

New share repurchase authorization for $1.0 billion, funded by

future excess holding company resources, announced in Feb. 2019

• The Hartford's board of directors has authorized a $1.0 billion share repurchase program, effective

Feb. 6, 2019 through Dec. 31, 2020

− Will be utilized with discretion, based on future excess holding company resources; will not be exercised ratably

over program authorization as was the practice in several previous share repurchase programs

− Based on current projections of future holding company resources, expect to use a portion of this authorization

in 2019 but anticipate using the majority of the program in 2020

• Total holding company resources were $2.9 billion at Jan. 31, 2019, after Jan. 2019 debt maturity

and dividend payment, close to liquidity target of 12-month projected interest and dividends, or

approximately $700 million, after $2.2 billion payment for Navigators acquisition

− $950 million to $1.1 billion of additional holding company resources expected in 20191

− 2020 holding company resources expected to increase from 2019, due to net P&C dividends, which were $850

million - $900 million, historically, in addition to Group Benefits and Hartford Funds dividends and 2020

estimated cash tax receipts of $500 million - $600 million2, down from 2019 due to lower AMT credit repayment

• In addition to the acquisition of Navigators and utilization of the share repurchase authorization,

future 2019 and 2020 holding company uses are expected to include:

− Annual interest expense of $265 million in 2019 and $240 million in 2020, based on assumed repayment of

March 2020 senior note

− Annual common and preferred dividends of approximately $460 million before share repurchases and any

change in common stockholder dividend rate

− $500 million 5.5% senior note maturity in March 2020


1. Comprised of Group Benefits dividends of $250 million - $300 million; Hartford Funds dividends of $100 million - $125 million and cash tax receipts of $600 million - $700 million, including realization of net operating loss carry forwards (subject to actual

taxable earnings, including impact of catastrophe losses) and alternative minimum tax (AMT) credits 2. Subject to actual taxable earnings, including impact of catastrophe losses


11

The Hartford also announced in Feb. 2019 key business metrics

outlook for 2019

• The Hartford’s 2019 outlook is for

continued strong margins, including

lower expected CATs

− Outlook does not include Navigators and

expect to update after closing

− Neither Commercial Lines nor Personal

Lines outlook includes favorable prior

accident year development (PYD)

− CAY catastrophe loss outlook is less than

2017 and 2018 actuals, but more consistent

with 10-year average

− Commercial Lines underlying combined

ratio includes modest pressure on workers'

compensation from reduced premium rates

− Personal Lines underlying combined ratio

includes strong auto results and auto and

homeowners new business growth

− Group Benefits margins assume LP1 returns

of 6% versus a 19% return in FY18

($ in millions)

2018 Actual

2019 Outlook

Commercial Lines combined ratio2,3,4 92.6 94.5 - 96.5

Commercial Lines underlying combined ratio3,5 91.5 91.0 - 93.0

Personal Lines combined ratio2 106.3 97.5 - 99.5

Personal Lines underlying combined ratio5 91.2 91.0 - 93.0

P&C CAY CATs ratio2,3 7.9 4.2

Group Benefits net income margin6,7 5.6% 5.5% - 6.5%

Group Benefits core earnings margin5,7 7.0% 6.0% - 7.0%

1. Limited partnerships and other alternative investments (LP)

2. 2019 outlook includes total P&C CAY CATs ratio of 4.2 points or 3.0 points in Commercial Lines and 6.5 points in Personal Lines; actual catastrophes are likely to be different and will fluctuate quarterly due to seasonal variations. P&C CAY

CATs ratio equates to approximately $435 million, before tax, in 2019

3. Excludes The Navigators Group

4. Commercial Lines 2019 outlook includes 0.5 point of unfavorable PYD from the accretion of discount on workers' compensation loss reserves

5. Denotes financial measure not calculated based on GAAP

6. Group Benefits 2019 net income margin outlook includes integration costs of approximately $35 million, after tax, compared with $37 million, after tax, in 2018

7. Group Benefits 2019 outlook includes amortization of intangibles of $30 million to $35 million, after tax, compared with $47 million, after tax, in 2018. Includes an estimated 6% return on LP compared with 19% in 2018; actual results are

likely to be different and will fluctuate quarterly



Overview of The Hartford’s Businesses



$19.0

$14.7

Total Revenues Total Stockholders' Equity

Financial Highlights

13

The Hartford’s businesses have leading market positions,

with strong margins and excess capital generation

• Commercial Lines: Leader in the highly attractive

small and mid-sized business sectors, #9 in U.S.

commercial lines1, #7 pro forma2.

- Acquisition of The Navigators Group Inc. is

expected to close in late March or April 2019

• Group Benefits: #2 provider of life and disability3

protection to 20 million individuals through their

employers

• Personal Lines: 35 year partnership with AARP,

focused on 50 year old+ demographic, #4 in direct

personal lines1

• Hartford Funds4: A high return business

with a unique sub-advisory business model.

As of Dec. 31, 2018, 51% of funds were rated 4 or 5

stars by Morningstar

5

FY 2018($ in billions)

10% over 2017

1. Per A.M. Best, based on 2017 direct written premiums

2. Pro forma for commercial lines includes 2017 U.S. direct written premiums for both The Hartford and The Navigators Group,

Inc. (“Navigators Group”). The acquisition of Navigators Group is expected to close in the in late March or April 2019,

subject to customary closing conditions and regulatory approvals

3. Per LIMRA based on in-force premiums as of December 31, 2017

4. Hartford Funds formerly known as Mutual Funds

5. Excludes accumulated other comprehensive income (AOCI)

2018 Premiums

34%Group

Benefits

45%Commercial

Lines

21%Personal

Lines

WrittenPremiums

$15.8 billion

14% over 2017



$872 $899$1,230

$204 $234

$427$1,076 $1,133

$1,657

2016 2017 2018

P&C Group Benefits

$10.6 $10.6 $10.4

$3.1 $3.5$5.4

$13.7 $14.1$15.8

2016 2017 2018

P&C Group Benefits

P&C and Group Benefits Earned Premiums

P&C4 and Group Benefits Core Earnings

14

Commercial Lines

The Hartford’s P&C and Group Benefits businesses have

national distribution and brand recognition with strong

competitive advantages

($ in millions)

($ in billions)

…With Strong Competitive Advantages

Leading U.S. Market Positions…

Leader – P&C Small Commercial

#2 – Workers’ Compensation1

#2 – Group Life & Disability2

#6 – Commercial Multi-Peril1

#4 – Direct Personal Lines1

#9 – U.S. Commercial Lines1

(#7 Pro Forma 1,3)

• Well-known and admired brand developed over

our 200+ year history

• Diversified insurance business

• Broad and deep national distribution partnerships

• Advanced technology, with significant investments

in underwriting, claims and customer service

• Recognized for claims excellence

1. Per A.M. Best, based on 2017 direct written premiums 2. Per LIMRA, based on in-force premiums as of Dec. 31, 2017 3. Pro forma for commercial lines includes 2017 U.S. direct written premiums for both The Hartford and The Navigators

Group, Inc 4. P&C includes Commercial Lines, Personal Lines and P&C Other Operations



92.8 97.3

92.6

89.4

92.0 91.5

2016 2017 2018

Combined Ratio Underlying Combined Ratio

$47

$847

$2,494

$3,748

National Agent and Operations Footprint

Strong Underwriting Results Despite 2018 Cat Losses

2018 Written Premiums by Business

Diversified Premium Mix

15

Commercial Lines

Leading underwriter of U.S. small and medium-sized businesses

($ in millions)

Small Commercial(52%)

Middle Market

(35%)

Specialty Commercial

(12%)

Other Commercial

(1%)

2018 Earned Premium by Product

Bond

Professional Liability

Property

General Liability

Auto

Workers’ Compensation

Package

3%4%

9%

9%

9%

19%

47%



16

Higher ROE

potential

Expands

geographic

reach

Proven and

tenured talent

Stock price beta

more consistent

with peers

Broaden and

deepen product

offerings

• Expected to be accretive to 2020 net income and core earnings2

Net income accretion of $30 million to $75 million

Core earnings accretion of $60 million to $95 million

• Expect greater opportunities than standalone operations would present through

revenue growth and modest expense efficiencies

Financially

Accretive

• Highly complementary to current Commercial Lines competencies with added specialty and

excess and surplus lines capabilities

• More diversified Commercial Lines business, with reduced concentration in

workers’ compensation

• Pro forma #7 ranking in U.S. commercial lines from #9 in 2017

Enhances

Commercial Lines

Market Presence

• Proven and tenured team with customer-centric approach

• Acquisition combines two organizations with disciplined underwriting execution and

shared commitment to innovation, financial performance, and ethics

• Both organizations focused on attracting and retaining talent

Adds Proven Talent

with Similar

Cultures

• Lloyd’s platform supports future growth of The Hartford’s specialty lines and industry verticals

• Growing underwriting operations in Europe, Asia and Latin America, with post-Brexit platform

in Belgium

• Reinsurance capabilities provide efficient access for select products in some markets

Expands

Geographic

Underwriting

Reach

• Global specialty underwriter with established marine, energy, construction, casualty and

professional liability expertise

• Market leader in the U.S. excess casualty and surplus lines

• Reinsurance capabilities focused on A&H1 and specialty lines

Broadens and

Deepens Product

Offerings

Commercial Lines

The Navigators Group acquisition, expected to close in late March

or April 2019, achieves key strategic and financial objectives

1. Accident and Health (A&H) 2. Estimated accretion comprised of a contribution by Navigators Group of $80 million to $125 million to net income and $110 million to $145 million to core earnings, offset by a reduction of approximately $50

million in The Hartford’s net investment income, after tax, due to the cash used to fund the acquisition



5.7% 5.8%

7.0%

2016 2017 2018

The 4Q17 Acquisition Further Strengthened Our Market Leadership Position

Balanced Book of BusinessStable and Strong Margins

Improving Disability Loss Trends Drive Lower Loss Ratio

17

Group Benefits

A market leader in group life and disability, integration of 2017

acquisition on schedule and exceeding sales and expense targets

2018 Premium1

Life (48%)

Disability (47%)

Other (5%)

1. Fully insured ongoing premium, excluding buyout premiums

Loss Ratio

Core Earnings Margin

Leader in Group Life and Disability

(Per LIMRA based on in-force premiums as of

December 31, 2017)

#2

$5.4

($ in billions)

78.0

76.175.3

81.4

76.5

73.175.7

76.7 78.4

2016 2017 2018

Total Disability Life

$0.2

$2.6

$2.6



Leading Direct Personal Lines Insurer

Underlying Results Improved in Both Auto and HomeownersAARP’s Focus - Growing 50+ age Market

Centered on AARP Relationship

18

Personal Lines

Profitability initiatives have improved underlying results, with

focus now on enhancing product capabilities

2018 Net Written Premium by Distribution

AARP Direct

AARP Agency

Other Agency

Other

50+ US Population* Growth Rate(In millions)

* Source: US Census Bureau 2014 National Projections; Entire US population projected to grow 8% while

50+ population (AARP membership eligible group) projected to grow 15% from 2015 – 2025

Major Direct Personal Lines Company

(per A.M. Best, 2017)

#4

The Hartford's

Personal Lines

business is

focused on the

50+ market via

AARP

15%

Personal Lines Combined Ratios

111

128

2015 2025

8%

9%1%

82%

104.8 104.2106.3

95.493.0

91.2

2016 2017 2018

Combined Ratio Underlying Combined Ratio



88%

72%65%64%

71%

85%

2016 2017 2018

Equity Fixed Income

$81.5$99.1 $91.6

$16.0

$16.3 $13.3

$97.5 $115.4

$104.8

2016 2017 2018

Mutual Fund Talcott Resolution

31.4%

42.6%

54.8%

2016 2017 2018

19

Hartford Funds

Independent business with strong investment performance and capital generation

Track Record of Strong InvestmentFund Performance

% Hartford Funds4 Outperforming Morningstar Peers

Five Year Basis

($ in billions)

Assets Under Management1,2

Hartford Funds Is A High ROE and Capital Generating Business

1. Assets under management (AUM ) 2. Includes Mutual Funds, ETP and Talcott Resolution life and annuity separate account AUM as of end of period 3. Represents AUM of the life and annuity business soled in 2018 that is still managed by Hartford

Funds 4. Hartford Funds and ETPs on Morningstar net of fees basis at Dec. 31, 2018

Core Earnings ROE

• Leveraging the full capabilities of institutional

quality sub-advisors− Wellington Management

− Schroders

• Funds include fixed income, equity, alternatives

and multi-strategy asset classes

• Provider of multi-factor exchange traded products

(ETPs) across domestic and international

strategies

Investment Platform Leverages Expertise from Two of the Largest Institutional Money Managers

3



Overview of The Hartford’s Investment and

Balance Sheet



21

Fixed Maturities, AFS2 Dec. 31, 2018 Dec. 31, 2017

% Investment grade 96.5% 95.4%

% Below investment grade 3.5% 4.6%

Average credit quality3 A+ A+

Total ($ in Billions) $35.7 $37.0

Total Portfolio

Average duration (years) 4.7 5.2

Yield, before tax 4.0% 4.0%

Yield, excluding LPs, before tax4 3.7% 3.7%

Yield, after tax 3.3% 3.0%

Impairments $1 $8

Investment by sector (%) Dec. 31, 2018 Dec. 31, 2017

Corporate 28% 28%

Municipal 22% 28%

Structured real estate1 18% 17%

US gov’t/gov’t agency & short-term 12% 9%

Mortgage loans 8% 7%

LP 4% 4%

Foreign gov’t/gov’t agency 2% 2%

Asset backed securities 3% 3%

Equity and other 3% 2%

Total ($ in Billions) $46.8 $45.1

• Fixed maturities weighted average credit

rating of “A+” as of Dec. 31, 2018- 3.5% rated below investment grade as of Dec.

31, 2018, down from 4.6% as of Dec. 31, 2017

• Duration of 4.7 years as of Dec. 31, 2018

vs. 5.2 years as of Dec. 31, 2017

• 2018 investment yield, before tax, was

4.0%, flat with 2017

• 2018 investment yield, after tax, was 3.3%,

up from 3.0% in 2017, due to lower U.S.

corporate tax rate in 2018

• Credit performance remains very strong,

with impairment losses at low levels

- Net impairments for 2018 were $1 million,

versus $8 million in 2017

Investment Portfolio Composition(Excluding equity securities, trading)

1. Includes commercial mortgage backed securities, collateralized debt obligations, and residential mortgage

backed securities

2. Available for sale (AFS)

3. Average credit ratings are based on availability, and are the midpoint of the applicable ratings among Moody’s,

S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used

4. Denotes financial measure not calculated based on GAAP

The Hartford has a high quality and well-diversified

investment portfolio with strong credit performance



12/31/2017 12/31/2018

12/31/18

Pro Forma

Senior notes $3,416 $3,589 $3,176

Junior subordinated debentures $1,582 $1,089 $1,089

Total Debt $4,998 $4,678 $4,265

Preferred stock $0 $334 $334

Common stockholders equity,

ex. AOCI $12,831 $14,346 $14,346

Total Capitalization, ex. AOCI $17,829 $19,358 $18,945

12/31/17 12/31/18

12/31/18

Pro Forma

Total debt 28.0% 24.2% 22.5%

Total debt and preferred stock 28.0% 25.9% 24.3%

Total rating agency adjusted debt 28.8% 29.2% 27.6%

28.0%

24.2%22.5%

2017 2018 2018Pro Forma

22

Reduced debt levels and improved leverage ratios since 2017;

leverage target of low to mid-twenties

Total Debt to Capitalization Ratio (ex. AOCI)

1. 2018 pro forma reflects the repayment of the $413 million 6.0% senior note in Jan. 2019

2. Total debt and preferred stock ratio = Total Debt, including hybrids and preferred stock divided by total capital excluding AOCI

3. Net of issuance costs

4. The rating agency adjusted leverage calculation reflects adjustments related to The Hartford’s defined benefit plans' unfunded

pension liability and The Hartford's rental expense on operating leases for a total adjustment of $0.9 billion and $1.0 billion for

Dec. 31, 2018 and Dec. 31, 2017, respectively. Reflects 25% equity credit for The Hartford's outstanding junior subordinated

debentures and 50% equity credit for The Hartford’s outstanding preferred stock

1

Capital Structure(in millions)

Debt to Capitalization Ratios

4

3

• Recent actions resulted in net reduction in

senior debt par of $233 million and in junior

subordinated debentures par of $500 million- Repaid $500 million junior subordinated debentures

in June 2018

- Issued $345 million preferred stock in Nov. 2018

- Repaid $413 million debt maturity in Jan. 2019

• Total debt to capitalization ratio, excluding

AOCI, of 24.2% at Dec. 31, 2018 decreased

3.8 points from Dec. 31, 2017- Pro forma 22.5% with January repayment1

• Total debt and preferred stock ratio2 was

25.9% at Dec. 31, 2018, a 2.1 point decrease

from 28.0% at Dec. 31, 2017- Pro forma 24.3% with January repayment

• Future actions:- Expect to assume 5.75% senior note par of $265

million, due 2023, upon closing of Navigators

acquisition

- Expect to repay 5.5% senior note par of $500 million

in March 2020 at maturity



Appendix - Discussion and Reconciliation of GAAP

to Non-GAAP Financial Terms



24

The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing the company's operating performance for the periods presented herein. Because The

Hartford's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford's non-GAAP financial

measures to those of other companies. Definitions and calculations of non-GAAP and other financial measures used in this presentation can be found below, in The Hartford’s press release, dated February 4, 2019 and in The Hartford's Investor Financial Supplement for fourth quarter 2018, which are available on The Hartford's website, https://ir.thehartford.com.

Book value per diluted share excluding accumulated other comprehensive income ("AOCI”): Book value per diluted share excluding AOCI is a non-GAAP financial measure based

on a GAAP financial measure. It is calculated by dividing (a) common stockholders' equity excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common

shares. The Hartford provides book value per diluted share excluding AOCI to enable investors to analyze the company’s stockholders’ equity excluding the effect of changes in the value

of the company’s investment portfolio and other assets due to interest rates, currency and other factors. The Hartford believes book value per diluted share excluding AOCI is useful to

investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in market value. Book value per diluted share is the

most directly comparable GAAP measure. A reconciliation of book value per diluted share, including AOCI, to book value per diluted share, excluding AOCI, can be found for the specified

periods in the tables set forth below.

Discussion and reconciliation of non-GAAP financial measures

– The Hartford

Dec 31

2018

Dec 31

2017

Dec 31

2016

Book value per diluted share, including AOCI $35.06 $37.11 $44.35

Less: Per diluted share impact of AOCI $(4.34) $1.82 $(0.89)

Book value per diluted share (excluding AOCI) $39.40 $35.29 $45.24

As of




25

Core Earnings: The Hartford uses the non-GAAP financial 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 underlying performance of the company’s businesses because it reveals trends in our insurance and financial services

businesses that may be obscured by including the net effect of certain realized capital gains and losses, certain restructuring and other costs, integration and transaction costs in

connection with an acquired business, pension settlements, loss on extinguishment of debt, gains and losses on reinsurance transactions, income tax benefit from reduction in

deferred income tax valuation allowance, impact of tax reform on net deferred tax assets, and results of discontinued operations.

Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the

insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax) that tend to be highly variable from

period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so

core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item

included in the income statement such as net investment income.

Core earnings are net of preferred stock dividends declared since they 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. Results from discontinued operations are excluded from core earnings for businesses held for sale because such results could obscure

trends in our ongoing businesses that are valuable to our investors' ability to assess the company's financial performance.

Net income (loss), net income (loss) available to common stockholders and income from continuing operations, net of tax, available to common stockholders (during periods when the

Hartford reports significant discontinued operations) are the most directly comparable U.S. GAAP measures to core earnings. Income from continuing operations, net of tax, available

to common stockholders is net income (loss) available to common stockholders, excluding the income (loss) from discontinued operations, net of tax. Core earnings should not be

considered as a substitute for net income (loss), net income (loss) available to common stockholders or income (loss) from continuing operations, net of tax, 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, income (loss) from continuing operations, net of tax, available to common stockholders and core earnings when reviewing the

company’s performance.

A reconciliation of net income (loss) to core earnings (losses) for individual reporting segments are provided for the specified periods in the tables set forth below.

Discussion and reconciliation of non-GAAP financial measures –

The Hartford - continued

C o mmercial

Lines

P erso nal

Lines

P &C Other

Ops

Gro up

B enefits

M utual

F unds C o rpo rate C o nso lidated

N et inco me ( lo ss) $ 1,212 ($ 32) $ 15 $ 340 $ 148 $ 124 $ 1,807

Less: Preferred stock dividend $6 $6

N et inco me ( lo ss) available to co mmo n

sto ckho lders $ 1,212 ($ 32) $ 15 $ 340 $ 148 $ 118 $ 1,801

Less: Net realized capital gains (losses), excluded from core

earnings, before tax(46) (7) (4) (51) (3) (6) (118)

Less: Loss on extinguishment of debt, before tax (6) (6)

Less: Pension Settlement, before tax -

Less: Integration and transaction costs associated with

acquired business, before tax(47) (47)

Less: Income tax benefit (expense) 13 3 6 11 41 75

Less: Income (loss) from discontinued operations, after tax 322 322

C o re earnings ( lo sses) $ 1,245 $ (28) $ 13 $ 427 $ 151 $ (233) $ 1,575

T welve M o nths Ended D ec 31, 2018



26

A reconciliation of net income (loss) to core earnings (losses) for individual reporting segments are provided for the specified periods in the tables set forth below.



C o mmercial

Lines

P erso nal

Lines

P &C Other

Ops

Gro up

B enefits

M utual


N et inco me ( lo ss) $ 865 $ (9) $ 69 $ 294 $ 106 $ (4,456) $ (3,131)


earnings, before tax100 16 14 31 - (1) 160

Less: Pension Settlement, before tax - - - - - (750) (750)


acquired business, before tax - - - (17) - (17)

Less: Income tax benefit (expense) (60) (38) (6) 46 (4) (607) (669)

Less: Income (loss) from discontinued operations, after tax - - - - - (2,869) (2,869)

C o re earnings ( lo sses) $ 825 $ 13 $ 61 $ 234 $ 110 $ (229) $ 1,014

C o mmercial

Lines

P erso nal

Lines

P &C Other

Ops

Gro up

B enefits

M utual


N et inco me ( lo ss) $ 994 $ (9) $ (529) $ 230 $ 78 $ 132 $ 896


earnings, before tax15 2 (70) 41 - (100) (112)

Less: Pension Settlement, before tax - - - - - - 0

Less: Loss on reinsurance transaction, before tax - - (650) - - - (650)

Less: Income tax benefit (expense) (5) - 292 (15) - 191 463

Less: Income (loss) from discontinued operations, after tax - - - - - 283 283

C o re earnings ( lo sses) $ 984 $ (11) $ (101) $ 204 $ 78 $ (242) $ 912





27

Core earnings per diluted share: Core earnings per diluted share is calculated based on

the non-GAAP financial measure core earnings. It is calculated by dividing (a) core

earnings, by (b) diluted common shares outstanding. The Hartford believes that the

measure 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 and income (loss) from continuing operations, net of tax, available to

common stockholders per diluted common share are 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 share or income (loss)

from continuing operations, net of tax, available to common stockholders per diluted common share and does not reflect the overall profitability of the company's business.

Therefore, The Hartford believes that it is useful for investors to evaluate both net income

(loss) available to common stockholders per diluted common share, income (loss) from

continuing operations, net of tax, available to common stockholders per diluted common

share per diluted share and core earnings per diluted share when reviewing the company's

performance. A reconciliation of net income (loss) available to common stockholders per

diluted common share and income (loss) from continuing operations, net of tax, available

to common stockholders per diluted common share to core earnings per diluted share can

be found for the specified periods in the tables set forth below.


The Hartford - continuedCore 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 is the most

directly comparable U.S. GAAP measure. The Company believes that core earnings

margin provides investors with a valuable measure of the performance of Group Benefits

because it reveals trends in the business that may be obscured by the effect of buyouts

and realized gains (losses). Core earnings margin should not be considered as a substitute

for net income margin and does not reflect the overall profitability of Group Benefits.

Therefore, the Company believes it is important for investors to evaluate both core

earnings margin and net income margin when reviewing performance. A reconciliation of

net income margin to core earnings margin can be found for the periods in the tables set

forth below.

1. For the twelve months ended Dec. 31, 2017, weighted average shares outstanding used in calculating net loss per

share excludes the effect of dilutive securities of 6.8 million shares. The calculation of core earnings per share includes

the effect of dilutive securities in all periods presented. In periods where a net loss or a core loss is recognized, inclusion

of incremental dilutive shares would be antidilutive

Dec 31

2018

Dec 31

2017

Dec 31

2016

Net income margin 5.6% 7.2% 6.3%

Less: Net realized capital gains

(losses) excluded from core

earnings, after tax

(0.6%) 0.4% 0.6%

Less: Integration and transaction

costs associated w ith acquired

business, after tax

(0.6%) (0.3%) 0.0%

Less: Income tax benefit2 (0.2%) 1.3% 0.0%

Core earnings margin 7.0% 5.8% 5.7%

Twelve Months Ended P ER SH A R E D A T A

Diluted earnings (losses) per common share:

N et inco me ( lo ss) per share $ 4.96 ($ 8.61)

Less: Preferred stock dividend $0.02 $0.00

N et inco me ( lo ss) available to co mmo n

sto ckho lders$ 4.95 ($ 8.61)

Less: Difference arising from shares used for the

denominator between net loss and core earnings(0.16)

Less: Net realized gains (losses), excluded from core

earnings, before tax(0.32) 0.43

Less: Loss on extinguishment o f debt, before tax (0.02) 0.00

Less: Pension settlement, before tax 0.00 (2.02)


acquired business, before tax(0.13) (0.05)

Less: Income tax benefit (expense) on items excluded

from core earnings0.20 (1.81)

Less: Income (loss) from discontinued operations,

after tax0.89 (7.74)

C o re earnings per share $ 4.33 $ 2.74

T welve M o nths

D ec 31

2018

D ec 31

2017 1

2. Group Benefits core earnings margin income tax benefit as of 12 month ended Dec. 31, 2017 was related to tax reform



28

Core Earnings ROE (Core Earnings Return on Equity): The company provides different measures of the return on stockholders' equity (“ROE”). Net income available to common stockholders ROE is

calculated by dividing (a) net income available to common stockholders for the prior four fiscal quarters by (b) average common stockholders' equity, including AOCI. Core earnings ROE is calculated

based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. Net

income available to common stockholders 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 measures for the reasons set forth in the related discussion above.

ROEs at the segment level and for consolidated, represent a levered view of ROE as debt financing and related interest expense are attributed to the businesses consistent with the overall average debt

to capitalization ratios of the consolidated entity. Similarly, in this levered view of ROE, preferred stock and related preferred dividends are attributed to the businesses. Reconciliations of Net income

(loss) available to common stockholders ROE to Core earnings (losses) ROE at a segment and consolidated level as well as on a consolidated level, excluding A&E, can be found on a reported basis for

the specified periods in the tables set forth below.



P&C Group B enef it s M ut ual Funds C onso lidat ed

N et income ( loss) availab le t o common st ockho lders 15.1% 9 .3 % 54 .2 % 13 .7%

Less: Net realized capital gains (losses), excluded from core earnings, before tax (0.8%) (1.7%) (1.5%) (0.9%)

Less: Pension sett lement, before tax 0.0% 0.0% 0.0%

Less: Integrat ion and transact ion costs associated with acquired business, before tax 0.0% (1.5%) 0.0% (0.4%)

Less: Income tax benefit (expense) 0.3% 0.4% 0.4% 0.6%

Less: Income from discontinued operat ions, after tax 2.5%

Less: Impact of AOCI, excluded from Core ROE (0.7%) (0.2%) 0.5% 0.3%

C ore earnings R OE 16 .3 % 12 .3 % 54 .8 % 11.6 %

Last Twelve M ont hs Ended D ec 3 1, 2 0 18

P&C Group B enef it s M ut ual Funds C onso lidat ed

N et income ( loss) R OE 10 .7% 10 .5% 4 0 .9 % ( 2 0 .6 %)

Less: Net realized capital gains (losses), excluded from core earnings, before tax 1.7% 1.2% 0.0% 1.1%

Less: Integrat ion and transact ion costs associated with acquired business, before tax 0.0% (0.7%) 0.0% (0.1%)

Less: Pension sett lement, before tax 0.0% 0.0% 0.0% (4.9%)

Less: Income tax benefit (expense) (1.4%) 1.8% (1.6%) (4.4%)

Less: Income from discontinued operat ions, after tax 0.0% 0.0% 0.0% (18.9%)

Less: Impact of AOCI, excluded from Core ROE (0.7%) (0.4%) (0.1%) (0.1%)

C ore earnings R OE 11.1% 8 .6 % 4 2 .6 % 6 .7%

Last Twelve M ont hs Ended D ec 3 1, 2 0 17



29

Underlying combined ratio: Represents the combined ratio before catastrophes and prior accident year development (PYD) (also referred to as Current Accident Year (CAY)

combined ratio before catastrophes) and is a non-GAAP financial measure. Combined ratio is the most directly comparable GAAP measure. The combined ratio is the sum of the

loss and loss adjustment expense ratio (also known as a loss ratio), the expense ratio and the policyholder dividend ratio. This ratio measures the cost of losses and expenses for

every $100 of earned premiums. A combined ratio below 100 demonstrates a positive underwriting result. A combined ratio above 100 indicates a negative underwriting result. The

underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes. 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. A reconciliation of the combined ratio to the underlying combined ratio for individual reporting segments can be found on a reported basis for the specified

periods in the tables set forth below.



T welve M o nths Ended T welve M o nths Ended

D ec 31

2018

D ec 31

2017

D ec 31

2016

D ec 31

2018

D ec 31

2017

D ec 31

2016

C o mmercial Lines P erso nal Lines

92.6 97.3 92.8 106.3 104.2 104.8

1.1 5.3 3.4 15.1 11.3 9.4

91.5 92.0 89.4 91.2 93.0 95.4

Small C o mmercial A uto mo bile

87.0 91.9 90.3 98.6 101.6 111.6

0.0 4.1 3.7 0.4 1.9 7.7

87.0 87.8 86.6 98.2 99.7 103.9

M iddle M arket H o meo wners

101.4 103.5 97.4 124.3 110.4 89.3

5.3 7.3 5.9 49.2 33.3 13.4

96.1 96.2 91.5 75.1 77.1 75.9

Specialty C o mmercial P &C

93.1 99.7 88.0 C o mbined rat io 97.8 100.0 100.1

(4.4) 1.9 (6.5) 6.3 7.5 8.2

97.5 97.8 94.5 91.5 92.5 91.8

Impact of catastrophes and PYD on combined ratio Impact of catastrophes and PYD on combined ratio

Underlying co mbined rat io Underlying co mbined rat io

C o mbined rat io

Impact of catastrophes and PYD on combined ratio


C o mbined rat io C o mbined rat io







Impact of catastrophes and PYD on combined ratio


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