Overview of The Hartford...discussed in The Hartford’s news releases issued on October 23, 2017...

Copyright © 2017 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford.

Overview of The Hartford

The Hartford Financial Services Group, Inc.

December 2017


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 releases issued on October 23, 2017 and December 4, 2017, The Hartford’s Quarterly Reports on Form 10-Q, The Hartford’s 2016 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 Appendix, the news releases issued on October 23, 2017 and December 4, 2017 and The Hartford’s Investor Financial Supplement for third quarter 2017 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.

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Copyright © 2017 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford. 3

The Hartford has successfully executed its strategy to exit capital

market-sensitive businesses and focus on underwriting businesses

3

The Strategy Announced In March 2012

• Sell Individual Life and Retirement Plans

• Put Annuity businesses into runoff (Talcott Resolution)

• Focus on P&C1, Group Benefits and Mutual Funds

The Execution Steps, 2012-2017

• Sold Individual Life, Retirement Plans and Japan

variable annuity businesses

• Group Benefits separated from Talcott Resolution

• Dec. 2017: Announced agreement to sell Talcott

Resolution

The Results in 2018

• Generated $7.6B in cash proceeds and consideration

• Reduced debt levels and improved financial flexibility,

including A&E and pension actions in 2017

• Concentrated focus on underwriting-centric businesses

2017 September YTD2 Core

Earnings3 excluding Corporate

Mutual Funds 8%

Group Benefits

19%

Commercial and Personal

Lines 67%

P&C Other Operations

6%

1. P&C includes Commercial Lines, Personal Lines and P&C Other Operations

2. Year-to-date (YTD)

3. Pro forma for sale of Talcott Resolution; denotes financial measure not calculated

based on generally accepted accounting principles (GAAP)


The Hartford’s businesses have:

– Strong market positions

– Good margins and excess capital generation

– Low capital markets sensitivity

• Commercial Lines: Leader in the highly

attractive small and middle market segments

• Group Benefits: A leading provider of life

and disability protection through employers

• Personal Lines: 30+ year partnership

with AARP

• Mutual Funds: A high return business

with consistent cash flows

Our P&C, Group Benefits and Mutual Funds businesses have attractive characteristics and strong competitive advantages

Personal Lines 24%

Group Benefits

33% Commercial

Lines

43%

3Q17 LTM1 Premiums

Pro Forma2

1. Last twelve months as of Sept. 30, 2017 (3Q17 LTM)

2. Includes written premiums for Commercial Lines and Personal Lines,

fully insured ongoing premiums for Group Benefits, and the pro forma

impact of the 4Q17 acquisition of Aetna’s $2.0 billion premium of U.S.

group life and disability business


The Hartford is a leading U.S. P&C and Group Benefits insurer

Core Earnings

($ in millions)

1. Per A.M. Best, based on 2016 direct written premiums

2. In-force premium as of 12/31/16, per LIMRA, including the acquisition of Aetna’s U.S. group life and disability business

*Total net written premium includes all other premiums in P&C Other Operations

• Leading share in P&C Small Commercial

• #2 in Workers’ Compensation1

• #2 in Group Life and Disability2

• #4 in Commercial Multi-Peril1

• #4 in Direct Personal Lines1

• #7 overall in P&C Commercial1

• Broad and deep commercial distribution partnerships

• Longstanding Personal Lines partnership with AARP

• Top choice among agents

• Best-in-class technology, with significant investments in underwriting, claims and customer service

• Recognized for claims excellence

…With Strong Competitive Advantages

Leading U.S. Market

Positions…

$872 $884 $919

$259

($12)

$15

2015 2016 3Q17, LTMUnderwriting Gain (Loss) and Fees, After-tax

Net Investment Income, After-tax

$1,131

$872

$6,625 $6,732 $6,893

$3,918 $3,837 $3,630

2015 2016 3Q17, LTM

Commercial Lines Personal Lines

Net Written Premium

($ in millions)

$10,522* $10,578* $10,568*

$934


Going forward, The Hartford is focused on several objectives

Maintain strong margins and underwriting discipline in Commercial Lines and

Group Benefits

Improve Personal Lines margins through continued pricing, underwriting and

distribution initiatives and reinvigorate new business production

Sell and separate Talcott Resolution and integrate Aetna Group Benefits

acquisition in smooth and timely manner

Increase core earnings1 and core earnings ROE1, 2 while maintaining a strong

balance sheet and redeploying excess capital

1. Denotes financial measure not calculated based on generally accepted accounting principles (GAAP)

2. Return on equity

6


COMPLETE SALE OF TALCOTT RESOLUTION AND INTEGRATE AETNA GROUP BENEFITS ACQUISITON

Sale of Talcott Resolution will complete The Hartford’s exit from the run-off

life and annuity businesses; closing expected by June 30, 2018

7

Principal terms:

• The Hartford will retain Talcott

Resolution tax benefits with

estimated GAAP carrying value of

$950 million

• Hartford Investment Management

Company will continue to manage

a significant majority of Talcott

Resolution’s general account

invested assets for an initial term of

five years

• Transition services agreement up to

24 months, after closing

Other key closing items:

• No financing contingency as

purchase funded entirely by equity

• Equity commitment letters have been

received and no debt is being raised

to fund the purchase

1. Subject to approval by Connecticut Insurance Department

2. Estimate of retained tax benefits based on current tax law, subject to final determination of the tax basis of operations sold;

primarily comprised of net operating loss carryovers (NOLs), alternative minimum tax (AMT) credits and foreign tax credits

3. First nine months of 2017 (9M17)

4. Loss on discontinued operations, after tax, includes loss on sale and earnings from Talcott Resolution reclassified to discontinued operations;

includes Talcott Resolution earnings for 9M17

5. Denotes financial measures not calculated based on GAAP

6. Subject to change based on shares outstanding and 4Q17 Talcott Resolution earnings

7. At closing, shareholders’ equity will be further reduced for the amount of accumulated other comprehensive income (AOCI ) of the Talcott Resolution business,

which was $931 million as of Sept. 30, 2017, or $2.56 of book value per diluted share. Talcott Resolution’s AOCI largely consists of net unrealized gains on investments

8. Total rating agency adjusted debt to capitalization ratio (based on Moody’s methodology)

~ approximately

Total value of transaction:

Cash from investor group

Pre-closing dividend1

Cash consideration

HLI debt included in sale

Hartford equity interest in acquiring company

Total consideration

Estimated retained tax benefits

Total value

$1,443 million

300 million

$1,743 million

143 million

164 million

$2,050 million

~950 million2

~$3.0 billion

9M173 pro forma impacts:

Loss on discontinued operations, after tax

Net loss per weighted average diluted share

Core loss per weighted average diluted share5

Loss on sale, after tax

Loss on sale per diluted share outstanding

Leverage ratio8

~$(3.0) billion4

~$(8.05)

~$(0.71)

~$(3.2) billion6,7

~$(8.79)6,7

Increase of 4.8 pts. to 29.5%

Stranded costs to be eliminated over time $35-$45 million, before tax


8


Talcott Resolution sale completes The Hartford’s exit from annuity

business and provides future strategic and financial benefits

▪ Eliminates impact of Talcott Resolution’s lower ROE and earnings run-off

on consolidated ROE and earnings

▪ Eliminates capital market tail risk related to Talcott Resolution

▪ Reduces the size and complexity of the consolidated balance sheet,

including lower investment, reserve and debt-to-capital leverage

▪ Increases financial flexibility with the cash proceeds received and

debt reduction from the transaction

▪ Ability to reinvest proceeds in higher return opportunities

Eliminated

enterprise

tail risk

Smaller and

less volatile

balance sheet

Focus on

underwriting

▪ Strengthens focus on our market-leading underwriting-centric

P&C and Group Benefits businesses

▪ Completes our exit from the run-off life and annuity businesses

Underwriting-

centric business

concentration

Improved ROE

and earnings

growth profile

Reduced capital

market tail risk

and volatility

Increased

financial

flexibility


$0.1

$2.7 $2.0

Small

(2%)

Middle

Market

(42%)

National

Accounts

(56%)

9

• Hartford Life and Accident Insurance Company

(HLA), the primary group benefits insurance

operating subsidiary of The Hartford, reinsures

on a coinsurance basis Aetna’s U.S. book of

group life and disability insurance with premiums

of approximately $2 billion

– Acquisition does not include dental, vision or

long-term care products

• Acquisition closed on November 1, 2017

– Purchase price consists principally of a $1.38 billion

ceding commission

– Funded by dividends from insurance subsidiaries and

holding company resources without issuance of debt

or equity

• Financially accretive in 2018:

– Expected to increase annual premium by

approximately $2.0 billion plus investment income

on transferred invested assets, less expenses

– Group Benefits core earnings expected to rise by $80

to $100 million, after tax, including amortization of

intangibles of $20 to $30 million, after tax

– Estimated savings beginning in 2018 on run-rate

operating expenses of approximately $100 million,

before tax, expected to be largely achieved within

two years


The acquisition of Aetna’s group life and disability business is

expected to be accretive to earnings in 2018 and beyond

$1.4 $2.4

$1.5

$2.5

2016 Actual Pro Forma

Disability Life Other

49%

47%

48%

46%

Pro Forma Group Benefits Premium1

2016 Full Year ($ in billions)

1. Fully insured ongoing premium, excluding buyout premiums

2. Excludes The Hartford’s non-Employer Group Specialty business

$3.1

$5.1

Employer Group2 Premiums by Employer Size

Premiums by Product



Group Benefits – Acquisition of Aetna’s group insurance business is a unique opportunity and solidifies our market leading position

▪ Enhances The Hartford’s distribution footprint and sales force

▪ Provides an exclusive, multi-year collaboration to sell The Hartford’s

group life and disability products through Aetna’s medical sales team

▪ Enables expanded data and advanced analytical capabilities

▪ Increases competitive advantage around recovery management,

driving improved outcomes for customers

Higher ROE

potential

Accelerates

technological

strategy

Expands data

and analytical

capabilities

Enhances

distribution

footprint

▪ Accelerates our technology strategy by adding industry-leading digital

capabilities and an integrated absence management and claims platform

▪ Reduces investment costs previously expected for digital initiatives and

enhancements of legacy systems

Stock price beta

more consistent

with peers

▪ Expected to be accretive to net income and core earnings beginning in 2018

▪ Purchase price was funded by dividends from insurance subsidiaries and

holding company resources without issuance of debt or equity

Financially

accretive

Increases

market

presence

▪ The Hartford has become #2 insurer in the group life and disability market,

up from #51

▪ Combines two complementary franchises that are both committed to

high-quality products and best-in-class customer and claims service

1. Source: LIMRA, based on in-force master contracts, certificates, total premiums collected as of Dec. 31, 2016, and annualized premiums

10


MAINTAIN STRONG MARGINS IN COMMERCIAL LINES AND GROUP BENEFITS

Commercial Lines – Continues to deliver strong results

2016 Earned Premium by Product

Diversified Premium Mix

48%

9%

10%

18%

9% 3% 3%

Workers’ Compensation

Property

Auto

Package

Liability Professional Liability

Bond

Distinctive Agent Relationships

92.6 92.8

97.7

90.0 89.4

90.8

2015 2016 3Q17, LTMCombined Ratio

Underlying Combined Ratio

Strong Underwriting and Profitability

2016 Written Premiums by Lines

$3,521

$2,343

$826 $42

Small Commercial (52%)

Middle Market (35%)

Specialty Commercial (12%)

Other Commercial (1%)

($ in millions)

1

1. Denotes financial measure not calculated based on GAAP


$1.4 $1.4 $2.4

$1.5 $1.5

$2.5

2015 2016 2016Pro Forma

Disability Life Other

Premium2

($ in billions)

12

The acquisition of Aetna’s group insurance further strengthen our leadership position

Strong Profitability Book of Business Remains Balanced

Between Disability and Life

Group Benefits Underwriting Complements The Hartford’s Workers’ Compensation Expertise

MAINTAIN STRONG MARGINS IN COMMERCIAL LINES AND GROUP BENEFITS

Group Benefits – A market leader in the group life and disability, a business that leverages our workers’ compensation expertise

5.6% 5.7% 6.2%

2015 2016 3Q17, LTM

Core Earnings Margin1

2. Fully insured ongoing premium, excluding buyout premiums, excluding Association –

Financial Institutions

77.4 78.0

76.2

81.6 81.4

78.3

74.7 75.7 75.0

2015 2016 9M17

Total Disability Life

Loss Ratio

(Excluding Association – Financial Institutions)

$3.1 $3.1


$5.1

Leader in Group Life

and Disability

(in-force premium as of

12/31/16, per LIMRA)

#2


75%

10%

14%

1%

AARP

Direct

AARP

Agency

Other Agency Other

2016 FY

~3M

~38M

Policies in force AARP Members

13

Market Leading Position

Focused on AARP Membership for Growth

Net Written Premium by Distribution

Focused on Improving Margins in 2017 & 2018

IMPROVE PERSONAL LINES MARGINS

Personal Lines – The Hartford is a leading direct personal lines

insurer with a 30+ year partnership with AARP

Opportunity to further penetrate AARP membership

Major Direct

Personal Lines

Company (per A.M. Best, 2016)

#4

97.0

104.8 101.8

92.0

95.4 94.1

2015 2016 3Q17, LTMCombined Ratio


AARP Policies AARP Members

The Hartford’s personal

lines business is focused

on AARP members, with

the goal of increasing its

penetration of this

38 million member

association

1

1. 3Q17, LTM includes 4Q16 combined ratio and underlying combined ratio adjusted for

2016 accident year development


$101 $96 $111 $114 $110

$83

$48 $42 $38 $37

AARP Direct AARP Agency Other Agency Other

13

21 27

37

30 36

28

45

19

44

32

14

Underwriting Actions Impact on New Business

Policy Count Retention

Increased Rate Actions

IMPROVE PERSONAL LINES MARGINS

Personal Lines – Auto profitability initiatives taking hold,

laying foundation for improved results in 2017 and beyond

Number of Rate Filings

Auto New Written Premium

($ in millions)

85% 86% 86% 86% 86% 86% 86% 85% 83% 84%

82%

81% 80% 78% 77% 78% 78% 78% 79%

74%

70% 66%

82% 81% 79% 80% 80% 78% 78% 79% 76% 75%

73%

AARP AARP Agency Other Agency

$70 (47%)

1

1. Includes policies that are available to renew on either a six or twelve month policy term.

The policy retention represents the percentage of policies that renewed since the last

policy term and is not annualized

99.2 99.0

104.4

98.4 97.1 99.0

103.9

2013 2014 2015 2016

Underlying Combined Ratio (2013-2015 as developedthrough Dec. 31, 2016)

Underlying Combined Ratio (as originally reported)


1

1. As developed combined ratio takes into account impact of prior accident year

development since accident year-end


5.1% 5.1%

7.6% 8.2%

8.9% 9.7%

2016 3Q17

Talcott Resolution

Consolidated

Consolidated ex. Talcott Resolution

15

• Talcott Resolution’s ROE1 was a significant

drag on consolidated ROE – 3Q17 LTM core earnings ROE was 1.5 points lower

than core earnings ROE, excluding Talcott

Resolution

– Net income ROE at Talcott Resolution was also

been impacted by deferred acquisition costs (DAC)

unlock and variable annuity (VA) hedging results not

included in core earnings

• In addition, Talcott Resolution’s core earnings

reduced consolidated core earnings growth

rates ‒ Between 2012 and 3Q17 LTM, consolidated core

earnings excluding Talcott Resolution rose 82%

‒ Including Talcott Resolution, core earnings rose only

25% over the same period

• Expect 2018 consolidated ROE to improve to

10% or better, and additional improvement in

2019 and beyond with redeployment of

proceeds ‒ 2019 will be first full year to reflect sale

‒ Amount of future improvement will also depend on

future P&C and Group Benefits underwriting results

and net investment income

INCREASE CORE EARNINGS AND CORE EARNINGS ROE

Going forward, The Hartford is focused on increasing core earnings and

core earnings ROE

1. ROE assumes debt and interest is attributable to Talcott Resolution consistent with

overall debt to capitalization of the consolidated entity


3. Twelve month trailing core earnings ROE, excluding AOCI, levered

Core Earnings ROE2,3

$546

$1,122

$576

$357

$1,404

$1,047

2012 3Q17 LTM 2012 3Q17 LTM 2012 3Q17 LTM

Core Earnings2

($ in millions)


• Due to acquisition of Aetna and loss on

sale of Talcott Resolution, pro forma rating

agency adjusted debt to capitalization ratio

at Sept. 30, 2017 increases to 29.5% from

24.7%, as reported

• The Hartford will repay debt in 2018 and

2019 to reduce debt leverage by about 3

points:

– Call of $500 million junior subordinated debt

at par in June 2018 (previously announced)

– Repayment of 2019 debt maturity of

$413 million

• In addition, future earnings will help

improve leverage ratios

• However, future share repurchases would

increase the debt to total capital ratio

The Hartford will also focus on reducing debt leverage as a result of

the Aetna acquisition and Talcott Resolution sale

1. Rating agency adjusted debt to capitalization

2. Hartford Financial Services Group, Inc. senior debt is under review for upgrade at Moody's

24.7%

29.5%

22-23%

As Reported Pro Forma Long-term Goal

Impact of 2018 and 2019 debt to be repaid

~3 points

Leverage Ratio1 Impact Sept. 30, 2017 As Reported and Pro Forma

Company Debt Ratings

Hartford Financial Services Group

Senior Debt Ratings

Moody’s2 Baa2 (Stable) (under credit review for upgrade)

Standard & Poor’s BBB+ (Stable)


• BVPS1 and BVPS, ex. AOCI, pro forma for the

sale of Talcott Resolution at closing, of $35.98

and $36.93, respectively

– Sale of Talcott Resolution results in a reduction in

BVPS, but is expected to improve ROE and

earnings growth profile, reduce risk and volatility and

increase financial flexibility

• Other risk reduction transactions that have

reduced BVPS growth over the past year:

– 4Q16 included a charge of $423 million, after tax,

resulting from a reinsurance agreement with

National Indemnity Company (NICO) covering

The Hartford’s A&E liability exposures

– 2Q17 included a transfer of $1.6 billion of U.S.

defined benefit pension obligation to Prudential

Financial resulting in a pension settlement charge of

$488 million, after tax

Also focused on book value growth, which will decrease

significantly in 2017 due to sale of Talcott Resolution

Book Value Per Diluted Share

$42.84 $42.96 $44.35 $47.33

$35.98

2014 2015 2016 9M17 Pro FormaTalcott

Sale

1. Book value per diluted share (BVPS)


3. Book value per diluted share, excluding accumulated other comprehensive income

Book Value Per Diluted Share, ex. AOCI2,3

$40.71 $43.76 $45.24

$45.72 $36.93

2014 2015 2016 9M17 Pro FormaTalcott

Sale


Appendix - Discussion and Reconciliation of GAAP

to Non-GAAP Financial Terms


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 releases, dated

October 23, 2017 and December 4, 2017, and in The Hartford's Investor Financial Supplement for third quarter 2017, which are available on The

Hartford's website, https://ir.thehartford.com.

Annualized investment yield, excluding limited partnerships: is the annualized net investment income excluding limited partnerships and

other alternative investments divided by 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 net

investment income, excluding limited partnerships, provides investors with an important measure of the trend in investment earnings because it

excludes the impact of the volatility in returns related to limited partnerships.

Discussion and reconciliation of non-GAAP financial measures

Three Months Ended Sep 30, 2017

Consolidated

As reported Pro forma

Annualized investment yield 4.3% 4.1%

Annualized investment yield on limited

partnerships and other alternative

investments

11.7% 12.8%

Annualized investment yield excluding limited

partnerships and other alternative

investments

4.0% 3.8%



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 on a reported and pro forma basis for the specified

periods in the tables set forth below.

Discussion and reconciliation of non-GAAP financial measures


for loss on sale(1)

Pro forma

upon closing(2)

As of As of As of

Dec 31

2016

Dec 31

2015

Dec 31

2014

Sep 30

2017

Sep 30

2016

Sep 30

2017

Sep 30

2017

Book value per diluted share, including AOCI $44.35 $42.96 $42.84 $47.33 $48.30 $38.54 $35.98

Less: Per diluted share impact of AOCI ($0.89) ($0.80) $2.13 $1.61 $2.56 $1.61 ($0.95)

Book value per diluted share, excluding

AOCI $45.24 $43.76 $40.71 $45.72 $45.74 $36.93 $36.93

(1) Pro forma assumes Talcott Resolution met held for sale criteria as of September 30, 2017 including accruing loss on sale

(2) Pro forma assumes sale of Talcott Resolution closed on September 30, 2017


Discussion and reconciliation of non-GAAP financial measures –

continued

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 the measure 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 realized capital gains and losses, certain restructuring charges, pension settlements, loss on extinguishment of debt, reinsurance gains

and losses on business disposition transactions, income tax benefit from reduction in valuation allowance, discontinued operations, and the

impact of Unlocks to deferred policy acquisition costs ("DAC"), sales inducement assets, unearned revenue reserves and death and other

insurance benefit reserve balances. Some realized capital gains and losses are primarily driven by investment decisions and external economic

developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business.

Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax and the effects of DAC) 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. Net income (loss) is the most directly comparable U.S. GAAP measure. Core earnings should not be considered as a substitute for net

income (loss) 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) and core earnings when reviewing the company’s performance.


A reconciliation of net income (loss) to core earnings (losses) for individual reporting segments on a reported and pro forma basis are provided for

the specified periods in the tables set forth below.

Twelve Months Ended Dec 31, 2015


($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott

Resolution Corporate Consolidated Consolidated

Net income (loss) $1,003 $187 ($53) $187 $86 $430 ($158) $1,682 $1,682

Less: Unlock benefit, before tax - - - - - 80 - 80 -

Less: Net realized capital gains (losses) after DAC, excluded

from core earnings, before tax (9) 4 3 (12) - (165) 14 (165) -

Less: Restructuring and other costs, before tax - - - - - - (20) (20) (20)

Less: Loss on extinguishment of debt, before tax - - - - - - (21) (21) (21)

Less: Net reinsurance gain on dispositions, before tax - - - - - 28 - 28 -

Less: Income tax benefit (expense) 2 (2) 1 4 - 13 103 121 108

Less: Income from discontinued operations, after tax 7 - - - - 2 - 9 486

Core earnings (losses) $1,003 $185 ($57) $195 $86 $472 ($234) $1,650 $1,129



($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott


Net income (loss) $1,007 ($22) ($529) $230 $78 $244 ($112) $896 $896

Less: Unlock benefit (charge), before tax - - - - - (2) - (2) -

Less: Net realized capital gains (losses) including DAC,

excluded from core earnings, before tax 15 2 (70) 41 - (140) (104) (256) (116)

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

Less: Income tax benefit (expense) (5) - 292 (15) - 3 194 469 467

Less: Income (loss) from discontinued operations, after tax 284

Core earnings (losses) $997 ($24) ($101) $204 $78 $383 ($202) $1,335 $911


continued



continued


($ in millions)

Talcott

Resolution

Consolidated

ex. Talcott

Resolution

Consolidated

Net income (loss) $1 ($39) ($38)

Less: Unlock benefit (charge), before tax (211) - (211)

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

earnings, before tax 244 270 514

Less: Restructuring and other costs, before tax (69) (131) (200)

Less: Loss on extinguishment of debt, before tax - (910) (910)

Less: Loss on reinsurance transactions, before tax (415) (118) (533)

Less: Income tax benefit (expense) 159 279 438

Less: Income (loss) from discontinued operations, after tax (253) (5) (258)

Core earnings $546 $576 $1,122

Last Twelve Months Ended Sep 30, 2017

($ in millions)

Property &

Casualty

Talcott

Resolution

Consolidated

ex. Talcott

Resolution

Consolidated

Net income $532 $298 $193 $491

Less: Unlock benefit, before tax - 41 - 41

Less: Net realized capital gains (losses) including DAC,

excluded from core earnings, before tax 29 (60) (36) (96)

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

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

Less: Income tax benefit (expense) 219 (40) 582 542

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

Core earnings $934 $357 $1,047 $1,404


Nine Months Ended Sep 30, 2017


($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott


Net income (loss) $ 579 $ 65 $ 62 $ 185 $ 73 $ 253 $ (645) $ 572 $ 572

Less: Unlock benefit, before tax - - - - - 61 - 61 -

Less: Net realized capital gains (losses) including

DAC, excluded from core earnings, before tax 55 9 10 27 - (51) - 50 99

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

Less: Income tax benefit (expense) (19) (3) (5) (9) - (3) 261 222 226

Less: Income (loss) from discontinued operations,

after tax - - - - - - - - 276

Core earnings (losses) $ 543 $ 59 $ 57 $ 167 $ 73 $ 246 $ (156) $ 989 $ 721

Nine Months Ended Sep 30, 2016

($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott

Resolution Corporate Consolidated

Net income (loss) $ 730 $ 6 $ (106) $ 167 $ 61 $ 199 $ (80) $ 977

Less: Unlock benefit, before tax - - - - - 18 - 18

Less: Net realized capital gains (losses) including

DAC, excluded from core earnings, before tax 32 4 (44) 34 - (131) (5) (110)

Less: Income tax benefit (expense) (12) (1) 54 (12) - 40 80 149

Core earnings (losses) $ 710 $ 3 $ (116) $ 145 $ 61 $ 272 $ (155) $ 920


continued


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) per diluted common share is the most directly comparable GAAP measure. Core earnings

per diluted share should not be considered as a substitute for net income (loss) per diluted 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) per diluted share and core earnings per diluted

share when reviewing the company's performance. A reconciliation of net income (loss) per diluted common share to core earnings per diluted

share can be found on a reported and pro forma basis for the specified periods in the tables set forth below.


continued

Nine Months

Ended

Sep 30

2017

Sep 30

2016

PER SHARE DATA

Diluted earnings (losses) per common share:

Net income per share $1.54 $2.45

Less: Unlock benefit (charge), before tax 0.16 0.05

Less: Net realized capital losses including DAC, excluded

from core earnings, before tax 0.13 (0.28)

Less: Pension settlement, before tax (2.01) -

Less: Income tax benefit (expense) on items excluded

from core earnings 0.61 0.37

Core earnings per share $2.65 $2.31



continued


Twelve Months Ended Twelve Months Ended Nine Months Ended

Dec 31 2015 Dec 31 2016 Dec 31 2015 Dec 31 2016 Sep 30 2017

PER SHARE DATA

Diluted earnings (losses) per common share:

Net income per share $3.96 $2.27 $3.96 $2.27 $1.54

Less: Unlock benefit (charge), before tax 0.19 (0.01) - - -

Less: Net realized capital losses including DAC, excluded

from core earnings, before tax (0.41) (0.65) - (0.29) 0.26

Less: Restructuring and other costs, before tax (0.05) - (0.04) - -

Less: Loss on extinguishment of debt, before tax (0.05) - (0.05) - -

Less: Loss (gain) on reinsurance transactions, before tax 0.07 (1.65) - (1.65) -

Less: Pension settlement, before tax - - - - (2.01)

Less: Income tax benefit (expense) on items excluded from

core earnings 0.31 1.20 0.25 1.18 0.61

Less: Income (loss) from discontinued operations, after tax 0.02 - 1.14 0.72 0.74

Core earnings per diluted share $3.88 $3.38 $2.66 $2.31 $1.94


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 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 on a reported basis for the periods in the tables set forth below.

Nine Months Ended Twelve Months Ended

Sep 30

2017

Sep 30

2016

Dec 31

2016

Dec 31

2015

Dec 31

2014

Net income margin 6.7% 6.1% 6.3% 5.4% 5.5%

Less: Effect of net capital realized

gains, net of tax on after tax margin 0.6% 0.7% 0.6% (0.2%) 0.3%

Core earnings margin 6.1% 5.4% 5.7% 5.6% 5.2%


continued


Return on Equity – Core Earnings: The Company provides different measures of the return on stockholders' equity (“ROE”). ROE - Core

earnings is calculated based on non-GAAP financial measures. ROE - Core earnings is calculated by dividing (a) core earnings for the prior four

fiscal quarters by (b) average common stockholders' equity, excluding AOCI. ROE - Net income is the most directly comparable U.S. GAAP

measure. ROE - Net income is calculated by dividing (a) net income for the prior four fiscal quarters by (b) average common stockholders' equity,

including AOCI. ROEs at the segment level and for consolidated, excluding Talcott Resolution, represent a levered view of ROE as debt financing

and related interest expense are attributed to the businesses consistent with the overall average debt to capitalization ratios of the consolidated

entity. The Company excludes AOCI in the calculation of ROE - core earnings to provide investors with a measure of how effectively the

Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company

provides to investors return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the “Core

Earnings” discussion above. Reconciliations of ROE - Net income (loss) to ROE - Core earnings (losses) at a segment and consolidated level as

well as on a consolidated level, excluding Talcott Resolution and A&E, can be found on a reported and pro forma basis for the specified periods in

the tables set forth below.


continued

Return on Equity - Last Twelve Months Ended Sep 30, 2017


P&C Group

Benefits

Mutual

Funds

Talcott

Resolution

Consolidated

excluding

Talcott

Consolidated Consolidated

Net income (loss) 5.0% 11.6% 34.5% 3.4% 2.4% 2.7% 2.7%

Less: Unlock benefit (charge), before tax 0.0% 0.0% 0.0% 0.6% 0.0% 0.2% -

Less: Net realized capital gains (losses) after DAC,

excluded from core earnings, before tax 0.3% 1.8% 0.0% (0.9%) (0.3%) (0.5%) (0.2%)

Less: Loss on reinsurance transactions, before tax (7.6%) 0.0% 0.0% 0.0% (5.7%) (3.6%) (3.6%)

Less: Pension settlement, before tax 0.0% 0.0% 0.0% 0.0% (6.6%) (4.2%) (4.2%)

Less: Income tax benefit (expense) 2.6% (0.6%) 0.0% (0.6%) 5.1% 3.0% 3.2%

Less: Income from discontinued operations, after tax 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.8%

Less: Impact of AOCI, excluded from Core ROE (1.0%) (1.7%) (0.3%) (0.8%) 0.2% (0.4%) (0.2%)

Core earnings (losses) 10.7% 12.1% 34.8% 5.1% 9.7% 8.2% 5.9%



continued

Return on Equity - Last Twelve Months Ended Sep 30, 2016

P&C Group

Benefits

Mutual

Funds

Talcott

Resolution

Consolidated

excluding

Talcott

Consolidated

excluding Talcott

and A&E

Consolidated

Net income (loss) 10.4% 9.3% 33.2% 2.1% 10.8% 12.2% 7.6%

Less: Unlock benefit (charge), before tax 0.0% 0.0% 0.0% 1.0% 0.0% 0.0% 0.4%


excluded from core earnings, before tax 0.0% 1.5% 0.0% (3.9%) 0.0% 0.2% (1.3%)

Less: Restructuring and other costs, before tax 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0%

Less: Loss on reinsurance transactions, before tax 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Less: Income tax benefit (expense) 0.5% (0.5%) 0.0% 1.0% 1.2% 1.2% 1.1%

Less: Impact of AOCI, excluded from Core ROE (1.1%) (1.4%) (0.2%) (0.7%) 0.3% 0.2% (0.2%)

Core earnings (losses) 11.0% 9.7% 33.4% 4.7% 9.1% 10.6% 7.6%

Last Twelve Months Ended Dec 31, 2016


Talcott

Resolution

Consolidated

ex. Talcott

Resolution


ROE - Net income (loss) 2.5% 6.8% 5.2% 5.2%


excluded from core earnings, before tax (2.2%) (1.1%) (1.5%) (0.7%)

Less: (Loss) gain on reinsurance transactions, before tax - (6.0%) (3.8%) (3.8%)

Less: Income tax benefit (expense) - 4.3% 2.7% 2.7%

Less: Income from discontinued operations, after tax - - - 1.6%

Less: Impact of AOCI, excluded from Core ROE (0.4%) 0.7% 0.2% 0.2%

ROE - Core earnings (losses) 5.1% 8.9% 7.6% 5.2%



continued

Last Twelve Months Ended Dec 31, 2015


Talcott

Resolution

Consolidated

ex. Talcott

Resolution


ROE - Net income (loss) 4.9% 12.0% 9.3% 9.3%

Less: Unlock benefit (charge), before tax 1.1% - 0.4% -


excluded from core earnings, before tax (2.5%) - (1.0%) -

Less: Restructuring and other cost, before tax - (0.2%) (0.1%) (0.1%)

Less: Loss on extinguishment of debt, before tax - (0.2%) (0.1%) -

Less: (Loss) gain on reinsurance transactions, before tax 0.4% - 0.2% 0.1%

Less: Income tax benefit (expense) 0.3% 1.0% 0.7% 0.6%

Less: Income from discontinued operations, after tax - 0.1% - 2.6%

Less: Impact of AOCI, excluded from Core ROE (0.6%) 0.4% - (0.2%)

ROE - Core earnings (losses) 6.2% 10.9% 9.2% 6.3%


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.

Nine Months Ended Twelve Months ended Twelve Months Ended

Sep 30 2017 Sep 30 2016 Sep 30 2017 Dec 31 2016 Dec 31 2015

Commercial Lines

Combined ratio 99.8 93.3 97.7 92.8 92.6

Impact of catastrophes and PYD on combined ratio 8.1 3.6 6.9 3.4 2.7

Underlying combined ratio 91.7 89.8 90.8 89.4 90.0

Small Commercial

Combined ratio 94.6 90.2 93.6 90.3 89.0



Middle Market

Combined ratio 106.6 99.2 103.0 97.4 97.3



Specialty Commercial

Combined ratio 99.4 87.7 96.8 88.0 89.9

Impact of catastrophes and PYD on combined ratio 2.1 (6.6) 0.1 (6.5) (8.9)



continued


Nine Months

Ended

Twelve Months

Ended Twelve Months Ended

Sep 30

2017

Sep 30

2016 Sep 2017

Dec 31

2016

Dec 31

2015

Dec 31

2014

Dec 31

2013

Personal Lines

Combined ratio 101.5 104.2 101.8 104.8 97.0 95.5 96.9

Impact of catastrophes and PYD on combined ratio

8.7 10.9 7.7 9.4 4.9 4.9 4.6

Underlying combined ratio 92.9 93.3 94.1 95.4 92.0 90.6 92.3

Automobile

Combined ratio 101.5 109.5 111.6 99.4 98.4 99.0


2.5 8.7 7.7 0.4 1.3 0.6

Underlying combined ratio 99.1 100.7 103.9 99.0 97.1 98.4

Homeowners

Combined ratio 101.6 92.1 89.3 92.1 90.0 90.7


23.1 15.8 13.4 15.3 13.6 13.2

Underlying combined ratio 78.4 76.3 75.9 76.8 76.4 77.5


continued

Overview of The Hartford...discussed in The Hartford’s news releases issued on October 23, 2017...

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