~~BASIS OF PRESENTATION~~Basis of Presentation

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States as well as in the United Kingdom and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”).

On December 29, 2021, the Company completed the sale of Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. and Assurances Contintales Contintale Verzekeringen N.V., collectively referred to as "Continental Europe Operations."

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's ~~2021~~2022 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year.

The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting

Policies of Notes to Consolidated Financial Statements included in the Company's ~~2021~~2022 Form 10-K Annual Report.

~~CONSOLIDATION~~Consolidation

The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated.

~~USE OF ESTIMATES~~Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual

results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; and contingencies relating to corporate litigation and regulatory matters.

~~RECLASSIFICATIONS~~Reclassifications

Certain reclassifications have been made to prior ~~year~~period financial information to conform to the current ~~year~~period presentation.

Adoption of New Accounting Standards

Reserve for Future Policy Benefits

On January 1, 2023, the Company adopted the Financial Accounting Standard Board's ("FASB") updated guidance on accounting for long duration insurance contracts, which was applied on a modified retrospective basis as of January 1, 2021.

The new guidance requires the discount rate assumption to be updated, as of the transition date and quarterly going forward, to a current upper-medium grade fixed-income investment yield, which has been interpreted to represent a yield based on single-A credit rated fixed maturity instruments with similar duration to the liability. The new guidance also eliminated the requirement to adjust the reserve for future policy benefits for unrealized gains and losses on fixed maturity investments as if those unrealized gains and losses were realized (referred to as shadow reserves). The change in the reserve estimate resulting from updating the discount rate assumptions and eliminating shadow reserves was recognized as a net cumulative effect adjustment that increased the reserve for future policy benefits by $85 and decreased AOCI by $65, net of deferred tax effects as of January 1, 2021.

The new guidance also requires that underlying cash flow assumptions (i.e., mortality, lapse and expense) in the reserve for future policy benefits be based on best estimate assumptions. The adjustments to the reserve for future policy benefits at adoption resulted in establishing a deferred profit liability ("DPL") on limited pay contracts of $18 representing the estimated profits based on best estimate cash flow assumptions.

The effect of adopting this guidance on the Company’s reserve for future policy benefits was as follows:

The effect of adopting this guidance on the Company’s Condensed Consolidated Balance Sheets as of January 1, 2021 as well as December 31, 2022 and 2021, Condensed

Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 was as follows:

SIGNIFICANT ACCOUNTING POLICIES

Reserve for Future Policy Benefits

The Company’s reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities, which are reported in the Corporate category.

Contracts are grouped into cohorts by contract type and issue year. The Company establishes reserves for future policy benefits using the net premium approach, which represents the present value of future policyholder benefits and related expenses less the present value of future net premiums. Net premiums are calculated by multiplying gross premiums for the contracts in a specific cohort by a net premium ratio. The net premium ratio is determined for the lifetime of a given cohort as the present value of net benefits divided by the present value of gross premiums. Related expenses include termination and settlement costs and exclude acquisition costs and non-claim related costs, such as costs relating to investments, general administration, policy maintenance, product development, market research and general overhead or any other costs, which are expensed as incurred.

The Company estimates premiums, benefits and related expense cash flows using methods that include assumptions, such as estimates of mortality, lapse, and claim-related expenses, and the possible impact of inflation on those expenses. Benefits include all guaranteed cash flows to be paid to the policyholder.

The reserve for future policy benefits is adjusted for differences between actual and expected experience. Each quarter, the Company updates its estimates of cash flows expected over the life of a group of contracts using actual historical experience. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated reserve for future policy benefits. In subsequent periods, the revised net premiums are used to measure the reserve for future policy benefits, subject to future revisions. Future cash flow assumptions, including mortality, lapse and expense are reviewed and, if a change is indicated, updated at least annually in the third quarter.

The difference between the newly calculated reserve balance and the reserve balance before updating for actual experience and/or future cash flow assumptions is the remeasurement gain or loss, which is immaterial for the three and six months ended June 30, 2023 and 2022, and is presented in benefits losses and loss adjustments expense in the Condensed Consolidated Statements of Operations. Changes to the reserve due to updates to cash flow assumptions discounted at the discount rate used immediately prior to transition are recognized on a catch-up basis in the Condensed Consolidated Statement of Operations.

The discount rate assumption is an equivalent single rate that is based on a current market observable, upper-medium grade fixed maturity yield. This has been interpreted to represent a yield based on single-A credit rated fixed maturity instruments with similar duration to the liability. The Company uses the yield of a market observable index of single-A credit rated fixed maturities as the basis for setting the discount rate. The discount rate assumption is updated quarterly and the change in the reserve estimate resulting from updating the discount rate assumption is recognized in other comprehensive income.

The Company currently conducts business principally in 5five reporting segments including Commercial Lines, Personal Lines, Property & Casualty ("P&C") Other Operations, Group Benefits and Hartford Funds, as well as a Corporate ~~Category.~~category.

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

The Company has overseas deposits included in other investments of ~~$57~~$70 and ~~$65~~$62 as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, which are measured at fair value using the net asset value as a practical expedient.

~~FIXED MATURITIES, EQUITY SECURITIES, SHORT-TERM INVESTMENTS, AND DERIVATIVES~~Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted

into a single discounted amount using current market expectations. The Company uses a "waterfall" approach

comprised of the following pricing sources and techniques, which are listed in priority order:

•Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

•Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time

value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally,

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the fair values of the Company's level 3 derivatives were less than $1 for both periods.

The table above excludes certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As of June 30, ~~2022,~~2023, no significant adjustments were made by the Company to broker prices received.

~~LEVEL~~Level 3 ~~ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS~~Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability.

The Company has elected the fair value option for certain investments in residual interests of securitizations and other securities that contain embedded credit derivatives with underlying credit risk related to residential real estate in order to reflect changes in fair value in earnings. These instruments are included within fixed maturities, FVO on the Condensed Consolidated Balance Sheets and changes in the fair value of these investments are reported in net realized gains and losses.

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the fair value of assets using the fair value option was ~~$342~~$320 and ~~$160,~~$333,

respectively, of which $163 and $178, respectively, were residual interests of securitizations.

For the three and six months ended June 30, 2023, realized losses related to the change in fair value of assets using the fair value option were $3 and $11, respectively.

For the three and six months ended June 30, 2022, realized losses related to the change in fair value of assets using the fair value option were $20 and $23, respectively. ~~For the three and six months ended June 30, 2021 there were no realized gains (losses) related to the change in fair value of assets using the fair value option.~~

Proceeds from the sales of fixed maturities, AFS totaled $0.6 billion and $2.0 billion for the three and six months ended June 30, 2023, respectively, and $2.6 billion and $8.1 billion for the three and six months ended June 30, 2022, ~~, respectively and $4.0 billion and $8.2 billion for the three and six months ended ended June 30, 2021.~~respectively.

Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company reported accrued interest receivable related to fixed maturities, AFS of ~~$309~~$346 and ~~$299,~~$338, respectively, and accrued interest receivable related to mortgage loans of ~~$18~~$19 and ~~$16,~~$18, respectively. These amounts are recorded in other assets on the Condensed Consolidated Balance Sheets and are not included in the carrying value of the fixed maturities or mortgage loans. The Company does not include the current accrued interest receivable balance when estimating the ACL. The Company has a policy to write-off accrued interest receivable balances that are more than 90 days past due. Write-offs of accrued interest receivable are recorded as a credit loss component of net realized gains and losses.

Interest income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible.

Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the

fixed maturity before a recovery in value. A corresponding

charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.

For fixed maturities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an ACL for the portion of the unrealized loss related to the credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and

projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ~~ratios~~ ("~~LTVs~~LTV")~~"),~~ ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.

Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e., prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where

applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of June 30, ~~2022~~2023 or December 31, ~~2021~~2022 other than U.S. government securities and certain U.S. government agencies.

As of June 30, 2023, fixed maturities, AFS in an unrealized loss position consisted of 4,667 instruments, and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date. As of June 30, 2023, 93% of these fixed maturities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during the six months ended June 30, ~~2022,~~2023, was primarily attributable to ~~higher interest rates and wider~~tighter credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, RMBS, municipal bonds, and ~~CLO~~CMBS which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates. ~~Additionally, certain corporate fixed maturities were also depressed because of their variable-rate coupons and long-dated maturities.~~ The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows.

~~MORTGAGE LOANS~~

Mortgage Loans

ACL on Mortgage Loans

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The

operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The Company's process also considers qualitative factors. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios.

When a borrower is experiencing financial difficulty, including

when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of June 30, ~~2022,~~2023, the Company did not have any mortgage loans for which an ACL was established on an individual basis.

There were no mortgage loans held-for-sale as of June 30, ~~2022~~2023 or December 31, ~~2021.~~2022. For the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, the Company had no

mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.


ACL on Mortgage Loans	ACL on Mortgage Loans									ACL on Mortgage Loans
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
ACL as of beginning of period	ACL as of beginning of period	$	31	$	34	$	29	$	38	ACL as of beginning of period	$	36	$	31	$	36	$	29
Current period provision (release)	Current period provision (release)	5		(10)		7		(14)		Current period provision (release)	5		5		5		7

ACL as of June 30,	ACL as of June 30,	$	36	$	24	$	36	$	24	ACL as of June 30,	$	41	$	36	$	41	$	36

The increase in the allowance for the ~~2022~~2023 period isis primarily attributable to the ~~potential impact of current economic conditions on~~overall weaker projected real estate ~~property valuations~~fundamentals, and to a lesser extent, net additions of new loans.

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was ~~50%~~52% as of June 30, ~~2022,~~2023, while the weighted-average LTV ratio at origination of these loans was 59%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.

27

Mortgage Loans LTV & DSCR by Origination Year as of June 30, 2022
2022 2021 2020 2019 2018 2017 & Prior Total
Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR
65% - 80% $ 16 2.02x $ 16 1.85x $ 22 2.66x $ 70 1.46x $ 108 0.98x $ 135 1.69x $ 367 1.51x
Less than 65% $ 616 2.51x $ 1,460 2.75x $ 678 2.81x $ 711 2.82x $ 462 2.21x $ 1,594 2.38x $ 5,521 2.59x
Total mortgage loans $ 632 2.49x $ 1,476 2.75x $ 700 2.80x $ 781 2.70x $ 570 1.98x $ 1,729 2.32x $ 5,888 2.52x

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLO, CMBS, and RMBS and are reported in fixed maturities, AFS, and fixed maturities, FVO, on the Company's Condensed Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

~~REVERSE REPURCHASE AGREEMENTS, OTHER COLLATERAL TRANSACTIONS AND RESTRICTED INVESTMENTS~~Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. As of June 30, ~~2022~~2023 and

December 31, ~~2021,~~2022, the Company reported ~~$60~~$33 and ~~$30,~~$41, respectively, within short-term investments on the Condensed Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company pledged collateral of $7 and ~~$9,~~$7, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed through a limited partnership agreement.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 6 - Derivatives of Notes to Condensed Consolidated Financial Statements.

Other Restricted Investments

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, commodity market, credit spread, issuer default, price, and currency exchange rate or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

~~STRATEGIES THAT QUALIFY FOR HEDGE ACCOUNTING~~

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements, included in The Hartford’s ~~2021~~2022 Form 10-K Annual Report. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or debt instruments issued.

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on variable-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on ~~3 month London Inter-Bank Offered Rate ("LIBOR") + 2.125%~~the $500 junior subordinated ~~debt~~debentures due 2067 to fixed interest payments. For further

information, see the Junior Subordinated Debentures section within Note 1413 - Debt of Notes to Condensed Consolidated Financial Statements and Note 13 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's ~~2021~~2022 Form 10-K Annual Report.

Foreign currency swaps are used to convert foreign currency denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities.

~~NON-QUALIFYING STRATEGIES~~Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, equity, and commodity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the offsetting amounts, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Offsetting amounts include fair value amounts, income accruals and related cash collateral receivables and

payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

~~CASH FLOW HEDGES~~Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the

same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

As of June 30, ~~2022,~~2023, the before tax deferred net losses on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are ~~$2.~~$4. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. At that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income or interest expense,

as applicable, over the term of the hedged instrument cash flows.

During the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, the Company had no net reclassifications from AOCI to

earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

Non-qualifying Strategies

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and

accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses).

~~DERIVATIVE COLLATERAL ARRANGEMENTS~~

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company has pledged cash collateral associated with derivative instruments of $065 and ~~$2,~~less than $1, respectively. In general, collateral receivable is recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company pledged securities collateral associated with derivative instruments with a fair value of ~~$16~~$6 and ~~$48,~~$8, respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities.

In addition, as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $16 ~~and $12, respectively,~~for both periods, which is recorded in other investments or other assets on the Company's Condensed Consolidated Balance

Sheets. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of ~~$21~~$196 and ~~$82,~~$57, respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance

Sheets.

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company accepted cash collateral associated with derivative instruments of ~~$40~~$45 and ~~$7,~~$56, respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, with a fair value of ~~$17~~$0 and ~~$5,~~$1, respectively, which the Company has the right to repledge or sell. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company had no repledged securities. In addition, as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Condensed Consolidated Balance Sheets.


Premiums Receivable and Agents' Balances	Premiums Receivable and Agents' Balances					Premiums Receivable and Agents' Balances

		As of June 30, 2022		As of December 31, 2021			As of June 30, 2023		As of December 31, 2022
Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")	Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")	$	4,703	$	4,130	Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")	$	5,328	$	4,698
Receivables for loss sensitive business, by credit quality:	Receivables for loss sensitive business, by credit quality:					Receivables for loss sensitive business, by credit quality:

AA	AA	126		130		AA	103		106
A	A	38		52		A	44		38
BBB	BBB	121		133		BBB	124		119
BB	BB	73		64		BB	58		56
Below BB	Below BB	42		41		Below BB	40		41
Total receivables for loss sensitive business	Total receivables for loss sensitive business	400		420		Total receivables for loss sensitive business	369		360

Total Premiums Receivable and Agents' Balances, Gross	Total Premiums Receivable and Agents' Balances, Gross	5,103		4,550		Total Premiums Receivable and Agents' Balances, Gross	5,697		5,058
ACL	ACL	(107)		(105)		ACL	(119)		(109)
Total Premiums Receivable and Agents' Balances, Net of ACL	Total Premiums Receivable and Agents' Balances, Net of ACL	$	4,996	$	4,445	Total Premiums Receivable and Agents' Balances, Net of ACL	$	5,578	$	4,949

ACL on Premiums Receivable and Agents' Balances

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. ~~The Company had an immaterial amount of receivables with a due date of more than one year that are past-due.~~

Premiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL

forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss sensitive business considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 5 - Investments.

The increase in the ACL in the three and six months ended June 30, ~~2022~~2023 reflected the provision required on increased premiums written in the quarter and recoveries, partially offset by write-offs. During the three and six months ended ended June 30, 2021, the ACL on premiums receivable decreased as the provision required on premiums written in the quarter was more than offset by write-offs and a reduction in the provision reflecting lessening expected impacts of COVID-19 relative to prior assumptions in certain lines of business.

The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers.

~~REINSURANCE RECOVERABLES~~Reinsurance Recoverables

Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment

expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported ("IBNR") unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses.

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating.

Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. As part of its reinsurance recoverable review, the Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers and the overall credit quality of the Company’s reinsurers.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. The ACL is estimated as the amount of reinsurance recoverables exposed to loss multiplied by estimated factors for the probability of default and the amount of loss given a default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are

reviewed on a quarterly basis and any significant changes are reflected in an updated estimate. The probability of default

factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.

As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.

The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 5 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital ("RBC") to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults. ~~The decrease in the ACL for the six months ended June 30, 2021 was primarily due to higher than expected recovery from one reinsurer on which the Company had recognized an ACL.~~

Unfavorable (Favorable) Prior Accident Year Development

For the six months ended June 30,
2022 2021
Workers’ compensation $ (85) $ (83)
Workers’ compensation discount accretion 18 18
General liability 33 307
Marine (3) 1
Package business (24) (46)
Commercial property (21) (20)
Professional liability (9) (7)
Bond (4) (14)
Assumed reinsurance 12 —
Automobile liability - Commercial Lines 12 —
Automobile liability - Personal Lines (5) (43)
Homeowners — 1
Catastrophes (30) (98)
Uncollectible reinsurance 6 (10)
Other reserve re-estimates, net 6 29
Prior accident year development before change in deferred gain (94) 35
Change in deferred gain on retroactive reinsurance included in other liabilities [1] — 45
Total prior accident year development $ (94) $ 80

[1]The change in deferred gain for the six months ended June 30, 2021 included $45 of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability.


	For the six months ended June 30,
		2023		2022
Workers’ compensation		$	(113)	$	(85)
Workers’ compensation discount accretion		22		18
General liability		28		33
Marine		(1)		(3)
Package business		(8)		(24)
Commercial property		—		(21)
Professional liability		(3)		(9)
Bond		12		(4)
Assumed reinsurance		17		12
Automobile liability - Commercial Lines		6		12
Automobile liability - Personal Lines		—		(5)
Homeowners		1		—
Net asbestos and environmental ("A&E") reserves		—		—



Catastrophes		(44)		(30)
Uncollectible reinsurance		12		6
Other reserve re-estimates, net		32		6


Total prior accident year development		$	(39)	$	(94)

Re-estimates of prior accident year reserves for the six months ended June 30, 2023

Workers’ compensation reserves were decreased within the 2014 to 2019 accident years primarily in small commercial, driven by lower than previously estimated claim severity. In addition, the 2020 accident year reflects a $20 reduction of COVID-19 related reserves.

General liability reserves were increased driven by higher frequency and estimated cost to settle large individual claims for the 2016 to 2019 accident years, partially offset by a decrease in reserves for the 2020 accident year due to favorable experience. In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years. Also included was a decrease in reserves for extra contractual liability claims and other miscellaneous run-off lines.

Package business reserves decreased primarily due to lower than previously estimated property severity for accident year 2021. Package liability is flat overall with improvement in accident year 2020 due to favorable claim count emergence offset by reserve increases in accident years 2019 and prior related to higher severity.

Commercial property reserves were flat primarily due to unfavorable development for accident year 2022 in middle & large commercial, offset by favorable development in global specialty.

Bond reserves were increased primarily due to unfavorable development for 2013 and prior accident years related to customs bonds.

Assumed reinsurance reserves were increased due to higher reserve estimates in the specialty casualty, Latin America casualty and surety business.

Automobile liability reserves - Commercial Lines increased primarily due to adverse loss development within accident years 2017 to 2019.

Automobile liability reserves - Personal Lines were flat as increases for accident year 2022 from higher estimated severity and increasing attorney representation rates were fully offset by decreases, primarily within accident years 2019 to 2021, due to lower estimated severity.

Catastrophes reserves were decreased primarily within Commercial Lines driven by a reduction in reserves in accident year 2022 for Hurricane Ian and accident year 2021 for Hurricane Ida.

Uncollectible reinsurance was increased primarily in Commercial Lines related to a captive reinsurer and, to a lesser extent, an increase in reserves for potential collection disputes and credit concerns.

Other reserve re-estimates, net, were increased primarily due to an increase in accident year 2022 Personal Lines automobile physical damage severity.

Re-estimates of prior accident year reserves for thesix months ended June 30, 2022

Workers’ compensation reserves were decreased for the 2014 through 2018 accident years, predominately within small commercial, driven by lower than previously estimated claim severity.

General liability reserves were increased, driven by an increase in the estimated cost to settle large individual claims in middle ~~and~~& large commercial for the 2016 to 2019 accident years, an increase in excess casualty for the 2019 accident year, and increases in primary construction on older accident years, partially offset by a decrease in reserves for other mass torts.

Package business reserves decreased due to lower estimated loss adjustment expenses for accident years 2015 to 2018 and a reduction in property reserves for the 2020 and 2021 accident years.

Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in middle & large commercial related to COVID-19 claims and a reduction in property reserves for the 2021 accident year.

Professional liability reserves were decreased primarily due to favorable development on directors’ and officers’ claims for the 2018 to 2020 accident years and on

errors and omissions claims for the 2013 to 2017 accident years, partially offset by large losses related to 2018 and prior accident years for primary and excess directors’ and officers’ claims.

Assumed reinsurance reserves were increased primarily due to higher reserve estimates for syndicate property claims, including higher expected COVID-19 property losses in the 2020 accident year and increased reserves for international agriculture related to drought claims.

Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct claims, primarily within accident years 2016 to 2020 and were increased in Commercial Lines principally due to a higher number of large claims in accident years 2017 to 2019.

Catastrophe reserves were decreased in both Commercial and Personal Lines with the largest reduction related to 2019 and 2020 wind and hail events.

Other reserve re-estimates, net, were increased primarily due to an increase in automobile physical damage severity and unfavorable development from participation in involuntary market pools.

~~Re-estimates of prior accident year reserves for thesix months ended June 30, 2021~~

~~Workers’ compensation reserves~~ ~~were decreased primarily within small commercial and middle & large commercial accounts for the 2013 through 2017 accident years driven by lower than previously estimated claim severity.~~

~~General liability reserves~~ were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims.

~~Package business reserves~~ ~~decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims.~~

~~Commercial property reserves~~ ~~were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty.~~

~~Professional liability reserves~~ were decreased due to lower estimated severity in both large and middle market directors’ and officers’ (“D&O”) insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company directors’ and officers’ insurance for 2018 and prior accident years which is reflected within the change in deferred gain on retroactive reinsurance in the above table.

~~Bond reserves~~ ~~were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years.~~

~~Automobile liability reserves~~ ~~were decreased in Personal Lines principally due to lower estimated severity on~~

Re-estimates of prior incurral years reserves for the six months ended June 30, 2023

Group disability- Prior period reserve estimates decreased by approximately $236 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $19 largely driven by continued low incidence in group life premium waiver.

Supplemental accident and health- Prior period reserve estimates decreased by approximately $10 driven by lower than previously expected claim incidence.

Re-estimates of prior incurral years reserves for the six months ended June 30, 2022

Group disability- Prior period reserve estimates decreased by approximately $195 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $40 largely driven by continued low incidence in group life premium waiver as well as a reduction in estimated ~~excess~~ mortality group term life losses incurred in fourth quarter 2021.

~~Supplement~~Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower than previously expected claim incidence.

~~Re-estimates of prior incurral years reserves for the six months ended June 30, 2021~~

~~Group disability-~~ Prior period reserve estimates decreased by approximately $240 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims. Also contributing was group short-term disability non-COVID-19 claim incidence lower than previously expected and a New York Paid Family Leave risk adjustment benefit.

~~Group life and accident (including group life premium waiver)-~~ Prior period reserve estimates decreased by approximately $30 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental death & dismemberment.

~~Supplemental Accident & Health-~~ ~~Prior period reserve estimates decreased by approximately $10 driven by lower-than-previously expected claim incidence during the pandemic.~~

(Dollar amounts in millions except for per share data, unless otherwise stated)

The Hartford provides projections and other forward-looking information in the following discussions, which contain many forward-looking statements, particularly relating to the Company’s future financial performance. These forward-looking statements are estimates based on information currently available to the Company, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the cautionary statements set forth on pages 4 and 5 of this Form 10-Q. Actual results are likely to differ, and in the past have differed, materially from those forecast by the Company, depending on the outcome of various factors, including, but not limited to, those set forth in the following discussion; Part I, Item 1A, Risk Factors in The Hartford’s ~~2021~~2022 Form 10-K Annual Report; and our other filings with the Securities and Exchange Commission. The Hartford undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

On ~~December 29, 2021,~~January 1, 2023, the Company ~~completed~~adopted the ~~sale~~Financial Accounting Standards Board's ("FASB") updated guidance on accounting for long duration insurance contracts, which was applied on a modified retrospective basis as of ~~Navigators Holdings (Europe) N.V., a Belgium holding company,~~January 1, 2021. For additional information refer to Note 1 - Basis of Presentation and ~~its subsidiaries, Bracht, Deckers & Mackelbert N.V. and Assurances Contintales Contintale Verzekeringen N.V., collectively referred~~Significant Accounting Policies of Notes to ~~as "Continental Europe Operations."~~Condensed Consolidated Financial Statements.

Certain reclassifications have been made to historical financial information presented in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") to conform to the current period presentation.

The Hartford defines increases or decreases greater than or equal to 200% as “NM” or not meaningful.

INDEX

Throughout the MD&A, we use certain terms and abbreviations, the more commonly used are summarized in the Acronyms section.

KEY PERFORMANCE MEASURES AND RATIOS

The Company considers the measures and ratios in the following discussion to be key performance indicators for its businesses. Management believes that these ratios and measures are useful in understanding the underlying trends in The Hartford’s businesses. However, these key performance indicators should only be used in conjunction with, and not in lieu of, the results presented in the segment discussions that follow in this MD&A. These ratios and measures may not be comparable to other performance measures used by the Company’s competitors.

Definitions of Non-GAAP and Other Measures and Ratios

Assets Under Management ("AUM")- Include mutual fund and exchange-traded ~~funds~~fund ("ETF") assets. AUM is a measure used by the Company's Hartford Funds segment because a significant portion of the ~~segments’s~~segment’s revenues and expenses are based upon asset values. These revenues and expenses increase or decrease with a rise or fall in AUM whether caused by changes in the market or through net flows.

Book Value per Diluted Share excluding accumulated other comprehensive income ("AOCI")- This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure.

Combined Ratio- The sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. This ratio is a relative measurement that describes the related cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses.

Core Earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

•Certain realized gains and losses - ~~Some~~Generally realized gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.

•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.

•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.

•Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.

•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.

•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and ~~including~~excluding the ~~full benefit from~~deferred gain on retroactive reinsurance inand related amortization of the deferred gain from core earnings provides greater insight into the economics of the business.

•Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before tax income, such as tax attributes like capital loss carryforwards.

•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.

In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income, ~~available to common stockholders,~~ are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.

Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance.

Core Earnings Margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth in the Results of Operations section within MD&A - Group Benefits.

Current Accident Year Catastrophe Ratio- A component of the loss and loss adjustment expense ratio, represents the ratio of catastrophe losses incurred in the current accident year (net of reinsurance) to earned premiums. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Services office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines major losses. Lloyd's of London is an insurance market-place operating worldwide ("Lloyd's"). Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"). The current accident year catastrophe ratio includes the effect of catastrophe losses, but does not include the effect of reinstatement premiums.

Expense Ratio- For ~~the underwriting segments of~~ Commercial Lines and Personal Lines is the ratio of underwriting expenses less fee income, to earned premiums. Underwriting expenses include the amortization of deferred policy acquisition costs ("DAC") and insurance operating costs

and other expenses, including certain centralized services costs and bad debt expense. DAC ~~include~~ includes

commissions, taxes, licenses and fees and other incremental direct underwriting expenses and are amortized over the policy term.

The expense ratio for Group Benefits is expressed as the ratio of insurance operating costs and other expenses including amortization of intangibles and amortization of DAC, to premiums and other considerations, excluding buyout premiums.

The expense ratio for Commercial Lines, Personal Lines and Group Benefits does not include integration and other transaction costs associated with an acquired business.

Fee Income- Is largely driven from amounts earned as a result of contractually defined percentages of assets under management in our Hartford Funds business. These fees are generally earned on a daily basis. Therefore, this fee income increases or decreases with the ~~growth~~rise or fall in ~~assets under management either~~AUM whether caused by changes in the market or through net ~~inflows or favorable market performance will have a favorable impact on fee income. Conversely, either net outflows or unfavorable market performance will reduce fee income.~~flows.

Gross New Business Premium- Represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium.

Loss and Loss Adjustment Expense Ratio- A measure of the cost of claims incurred in the calendar year divided by earned premium and includes losses and loss adjustment expenses incurred for both the current and prior accident years. Among other factors, the loss and loss adjustment expense ratio needed for the Company to achieve its targeted return on equity ("ROE") fluctuates from year to year based on changes in the expected investment yield over the claim settlement period, the timing of expected claim settlements and the targeted returns set by management based on the competitive environment.

accident year compared to that of the previous accident year. Claim severity represents the percentage change in the estimated average cost per claim in the current accident year compared to that of the previous accident year. As one of the factors used to determine pricing, the Company’s practice is to first make an overall assumption about claim frequency and severity for a given line of business and then, as part of the rate-making process, adjust the assumption as appropriate for the particular state, product or coverage.

Current Accident Year Loss and Loss Adjustment Expense Ratio ~~before Catastrophes and Prior Accident Year Development-~~Before Catastrophes- A measure of the cost of non-catastrophe loss and loss adjustment expenses incurred in the current accident year divided by earned premiums. Management believes that the current accident year loss and loss adjustment expense ratio before catastrophes is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development.

Loss Ratio, excluding Buyouts- Utilized for the Group Benefits segment and is expressed as a ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. Since Group Benefits occasionally buys a block of claims for a stated premium amount, the Company excludes this buyout from the loss ratio used for evaluating the profitability of the business as buyouts may distort the loss ratio. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.

Mutual Fund and Exchange-Traded Fund Assets- Are owned by the shareowners of those products and not by the Company and, therefore, are not reflected in the Company’s Condensed Consolidated Financial Statements, except in instances where the Company seeds new investment products.

Mutual fund and ETF assets are a measure used by the Company primarily because a significant portion of the Company’s Hartford Funds segment revenues and expenses are based upon asset values. These revenues and expenses increase or decrease with a rise or fall in AUM whether caused by changes in the market or through net flows.

Net New Business Premium- Represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium.

Policy Count Retention- Represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. Policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or

because of a decision to reduce premium writings in certain classes of business or states. Policy count retention is also affected by advertising and rate actions taken by competitors.

Policies in Force- Represents the number of policies with coverage in effect as of the end of the period. The number of policies in force is a growth measure used for Personal Lines

and standard commercial lines (small commercial and middle market lines within middle & large commercial) ~~within Commercial Lines~~ and is affected by both new business growth and policy count retention.

Policyholder Dividend Ratio- The ratio of policyholder dividends to earned premium.

Premium Retention- For middle & large commercial, represents the ratio of prior period premiums that were successfully renewed divided by premiums associated with policies available for renewal in the current period. Premium retention excludes premium amounts from annual audits, renewal written price increases and changes in exposure, including amount of insurance. Premium retention statistics are subject to change from period to period based on a number of factors, including the effect of subsequent cancellations and non-renewals.

Prior Accident Year Loss and Loss Adjustment Expense Ratio- Represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.

Reinstatement Premiums- Represents additional ceded premium paid for the reinstatement of the amount of reinsurance coverage that was reduced as a result of the Company ceding losses to reinsurers.

Renewal Earned Price Increase (Decrease)- Written premiums are earned over the policy term, which is six months for certain Personal Lines automobile business and twelve months for substantially all of the remainder of the Company’s Property and Casualty ("P&C") business. Since the Company earns premiums over the six to twelve month term of the policies, renewal earned price increases (decreases) lag renewal written price increases (decreases) by six to twelve months.

Renewal Written Price Increase (Decrease)- For Commercial Lines, represents the combined effect of rate changes and individual risk pricing decisions per unit of exposure on policies that renewed and ~~for small commercial and middle market business,~~ includes amount of insurance. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits. The rate component represents the change in rate impacting renewal policies as previously filed with and approved by state regulators during the ~~period and the amount~~period. Amount of insurance represents the change in the value of the rating base, such as model year/vehicle symbol for automobiles, building replacement costs for property and wage inflation for workers’ compensation. A number of factors affect renewal written price increases (decreases) including expected loss costs as projected by the Company’s pricing actuaries, rate filings approved by state regulators, risk selection decisions made by the Company’s underwriters and marketplace competition. Renewal written price changes reflect the property and casualty insurance market cycle. Prices tend to increase for a particular line of business when insurance carriers have incurred significant losses in that line of business in the recent past or the industry as a whole commits less of its capital to writing exposures in that line of business. Prices tend to decrease when

have incurred significant losses in that line of business in the recent past or the industry as a whole commits less of its capital to writing exposures in that line of business. Prices tend to decrease when recent loss experience has been favorable or when competition among insurance carriers increases. Renewal written price statistics are subject to change from period to period, based on a number of factors, including changes in actuarial estimates and the effect of subsequent cancellations and non-renewals, and modifications made to better reflect ultimate pricing achieved.

Return on Assets (“ROA”), Core Earnings-The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized core earnings by a daily average AUM. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth in the Results of Operations section within MD&A - Hartford Funds.

Underlying Combined Ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable

GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance.

A reconciliation of combined ratio to underlying combined ratio is set forth in the Results of Operations section within MD&A - Commercial Lines and Personal Lines.

Underwriting Gain (Loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that ~~the measure~~ underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities.

Written and Earned Premiums- Written premium represents the amount of premiums charged for policies issued, net of reinsurance, during a fiscal period. Premiums are considered earned and are included in the financial results on a pro rata basis over the policy period. Management believes that written premium is a performance measure that is useful to investors as it reflects current trends in the Company’s sale of property and casualty insurance products. Written and earned premium are recorded net of ceded reinsurance premium.

Traditional life and disability insurance type products, such as those sold by Group Benefits, collect premiums from policyholders in exchange for financial protection for the policyholder from a specified insurable loss, such as death or disability. These premiums together with net investment income earned are used to pay the contractual obligations under these insurance contracts. Two major factors, new sales and persistency, impact premium growth. Sales can increase or decrease in a given year based on a number of factors, including but not limited to, customer demand for the Company’s product offerings, pricing competition, distribution channels and the Company’s reputation and ratings. Persistency refers to the percentage of premium remaining in-force from year-to-year.

THE HARTFORD’S OPERATIONS

The Hartford conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category. The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well as certain affiliates. In addition, up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution"). The sale of Talcott Resolution to a new investor was completed on June 30, 2021. The Company received a total of $217 in connection with the sale of its 9.7% ownership interest, resulting in a realized gain of $46 before tax in 2021.third-party business.

The Company derives its revenues principally from: (a) premiums earned for insurance coverage provided to insureds; (b) management fees on mutual fund and ETF assets; (c) net investment income; (d) fees earned for services provided to third parties; and (e) net realized gains and losses. Premiums charged for insurance coverage are earned principally on a pro rata basis over the terms of the related policies in-force.

The profitability of the Company's property and casualty insurance businesses over time is greatly influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance, the size of its in force block, making reliable estimates of actual mortality and morbidity, ~~experience,~~ and its ability to manage its expense ratio which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses. Pricing adequacy depends on a number of factors, including the ability to obtain regulatory approval for rate changes, proper evaluation of underwriting risks, the ability to project future loss cost frequency and severity based on historical loss experience adjusted for known trends, the Company’s response to rate actions taken by competitors, its expense levels and expectations about regulatory and legal developments. The Company seeks to price its insurance policies such that insurance premiums and future net investment income earned on premiums received will cover underwriting expenses and the ultimate cost of paying claims reported on the policies and provide for a profit margin. For many of its insurance products, the Company is required to obtain approval for its premium rates from state insurance departments and the Lloyd's Syndicate's ability to write business is subject to Lloyd's approval for its premium capacity each year. Most of Personal Lines written premium is associated with our exclusive licensing agreement

with AARP, which is effective through December 31, 2032. This agreement provides an important competitive advantage given the size of the 50 plus population and the strength of the AARP brand.

Similar to property and casualty, profitability of the group benefits business depends, in large part, on the ability to evaluate and price risks appropriately and make reliable estimates of mortality, morbidity, disability and longevity. To manage the pricing risk, Group Benefits generally offers term insurance policies, allowing for the adjustment of rates or policy

terms in order to minimize the adverse effect of market trends, loss costs, declining interest rates and other factors. However, as policies are typically sold with rate guarantees an average of ~~up to~~ three years, pricing for the Company’s products could prove to be inadequate if loss and expense trends emerge adversely during the rate guarantee period or if investment returns are lower than expected at the time the products were sold. For some of its products, the Company is required to obtain approval for its premium rates from state insurance departments. New and renewal business for group benefits business, particularly for long-term disability ("LTD"), are priced using an assumption about expected investment yields over time. While the Company employs asset-liability duration matching strategies to mitigate risk and may use interest-rate sensitive derivatives to hedge its exposure in the Group Benefits investment portfolio, cash flow patterns related to the payment of benefits and claims are uncertain and actual investment yields could differ significantly from expected investment yields, affecting profitability of the business. In addition to appropriately evaluating and pricing risks, the profitability of the Group Benefits business depends on other factors, including the Company’s response to pricing decisions and other actions taken by competitors, its ability to offer voluntary products and self-service capabilities, the persistency of its sold business and its ability to manage its expenses which it seeks to achieve through economies of scale and operating efficiencies.

The financial results of the Company’s mutual fund and ETF businesses depend largely on the amount of assets under management and the level of fees charged based, in part, on asset share class and fund type. Changes in assets under management are driven by the two main factors of net flows and the market return of the funds, which are heavily influenced by the return realized in the equity and bond markets. Net flows are comprised of new sales less redemptions by mutual fund and ETF shareowners. Financial results are highly correlated to the growth in assets under management since these funds generally earn fee income on a daily basis.

The investment return, or yield, on invested assets is an important element of the Company’s earnings since insurance products are priced with the assumption that premiums received can be invested for a period of time before benefits, losses and loss adjustment expenses are paid. Due to the need to maintain sufficient liquidity to satisfy claim obligations, the majority of the Company’s invested assets have been held in available-for-sale ("AFS") securities, including, among other asset classes, corporate bonds, municipal bonds, government debt, short-term debt, mortgage-backed securities, asset-backed securities and collateralized loan obligations ("CLO"). The Company also invests in commercial mortgage loans as well as limited partnerships and alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns. The primary investment objective for the Company is to maximize economic value, consistent with acceptable risk parameters, including the management of credit risk and interest rate sensitivity of invested assets, while generating sufficient net of tax income to meet policyholder and corporate obligations. Investment strategies are developed

~~invested assets, while generating sufficient net of tax income to meet policyholder and corporate obligations. Investment strategies are developed~~ based on a variety of factors including business needs, regulatory requirements and tax considerations.

~~Impact of Ukraine conflict on our results of operations~~

From the Ukraine conflict, the Company incurred $27 of catastrophe losses, net of reinsurance, in the six months ended June 30, 2022, all in the first quarter, that included exposures under political violenceOperational transformation and ~~terrorism ("PV&T~~") policies, including aviation war, as well as under credit and political risk insurance ("CPRI") policies. Also in the first quarter of 2022, the Company recognized provisions for reinstatement premium of $11 as a result of estimated ceded incurred losses related to the conflict.

~~The~~ ~~Company’s direct investment exposure is limited to bonds issued by Russian entities with an amortized~~ cost ~~of $16 and a fair value of $7 as of June 30, 2022, with an allowance for credit losses ("ACL") of $9. The Company does not have any investments in Belarus or Ukraine.~~

For a discussion of the risks associated with a deterioration in global economic conditions and/or geopolitical conditions, including due to military action, please refer to the Risk Factors in our 2021 Form 10-K, including one entitled “Unfavorable economic, political and global market conditions may adversely impact our business and results of operations” and another entitled “We are vulnerable to losses from catastrophes, both natural and man-made”.

~~Operational Transformation and Cost Reduction Plan~~reduction plan

In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to

agents and customers, on July 30, 2020, the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Through reduction of its headcount, Information Technology ("IT"IT") investments to further enhance our capabilities, and other activities, relative to 2019, the Company expects to achieve a reduction in annual insurance operating costs and other expenses of approximately ~~$540 by 2022 and~~ $625 byin 2023.

To achieve those expected savings, we expect to incur approximately ~~$393~~$388 over the course of the program, with ~~$253~~ $308

expensed cumulatively through June 30, ~~2022,~~2023, and expected expenses of ~~$43~~$17 over the last six months of ~~2022, $40 in~~ 2023 and ~~$57~~$63 after 2023, with the expenses after 2023 consisting mostly of amortization of internal use software and capitalized real estate costs. Included in the estimated costs of ~~$393,~~$388, we expect to incur restructuring costs of approximately $127, including ~~$41~~$38 of employee severance, ~~$26~~$24 to retire certain IT applications, and ~~$60~~$65 for consulting and lease termination expenses. Restructuring costs are reported as a charge to net income but not in core earnings.

The following table presents Hartford Next program costs incurred, including restructuring costs, and expense savings relative to 2019 realized in the six months ended June 30, ~~2022~~2023 and expected annual costs and expense savings relative to 2019 for the full year in ~~2022 and 2023:~~2023.

CONSOLIDATED RESULTS OF OPERATIONS

The Consolidated Results of Operations should be read in conjunction with the Company's Condensed Consolidated Financial Statements and the related Notes as well as with the segment operating results sections of MD&A.

Net income available to common stockholders ~~decreased~~increased by ~~$463,~~$103, primarily driven by:

•~~A $485, before tax, change to~~Lower net realized losses ~~in the 2022 period from net realized gains in the 2021 period,~~of $274, before tax, driven by a ~~depreciation~~decline in value of equity securities ~~during the second quarter of 2022 compared to appreciation~~ in the ~~2021 period, as well as~~2022 period;

•In Group Benefits, the effect of higher fully insured ongoing premiums, including a lower expense ratio, partially offset by a higher group life loss ratio and lower net investment income; and

•A loss on ~~sales~~extinguishment of ~~fixed maturity securities~~debt in the ~~second quarter of~~ 2022 ~~compared to a net gain on sales in the 2021~~ period.

These increases were partially offset by:

•A decrease in P&C underwriting ~~results~~gain of ~~$67,~~$151, before tax, driven by ~~less~~higher current accident year catastrophe losses, a higher current accident year loss and loss adjustment expense ("LAE") ratio before catastrophes in Personal Lines, and a lower level of favorable prior accident year reserve development, ~~higher Personal Lines automobile and homeowners’ loss costs and higher underwriting expenses,~~ partially offset by the effect of ~~Commercial Lines~~ earned premium growth, ~~and~~including a ~~lower Commercial Lines current accident year loss and LAE ratio before catastrophes.~~

•~~A decline in net investment income driven by lower returns on limited partnerships and other alternative investments, and~~

•A decrease in ~~earnings from Hartford Funds.~~

~~These decreases were partially offset by:~~

•~~In Group Benefits, lower excess mortality claims of $30, before tax, and~~ the ~~effect of higher earned premiums, partially offset by a higher disability loss ratio and an increase in insurance operating costs and other expenses; and~~

•~~Legal and consulting costs in the 2021 period associated with the unsolicited proposals from Chubb Limited to acquire the Company.~~expense ratio.

For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.

~~REVENUE~~

~~Earned Premiums~~

~~Earned premiums~~ ~~increased by $350, or 8%, primarily due to:~~

•An increase in P&C reflecting a 12% increase in Commercial Lines and a 2% decrease in Personal Lines. Contributing to the increase in Commercial Lines was an increase in new business in small commercial, higher policy count retention in small commercial and middle market, the effect of higher renewal written price increases across all lines, and higher audit and endorsement premiums as a result of higher insured exposures. For Personal Lines, non-renewals outpaced new business despite an increase in new business and the effect of earned pricing increases; and

•~~An increase in Group Benefits earned premium of 7% due to an increase in group disability and supplemental health product premiums.~~

~~Fee income~~ ~~decreased, driven by lower daily average assets within Hartford Funds due to a decline in equity market levels and net outflows during 2022.~~

~~Other revenues~~ ~~decreased by $7, primarily driven by lower servicing revenues in P&C.~~

~~Net Investment Income~~

~~Net investment income~~ ~~decreased primarily due to:~~

•Lower income from limited partnerships and other alternative investments driven by lower returns on private equity funds, partially offset by higher real estate fund valuations and greater income from sales of underlying real estate properties in the 2022 period;

•~~A decline in valuation of equity fund investments in the 2022 period due to the decline in equity market levels;~~

•~~Partially offset by a higher level of invested assets.~~

~~Net realized gains (losses)~~ ~~changed to a net realized loss in the 2022 period from a net realized gain in the 2021 period, primarily driven by:~~

•~~Losses on equity securities in the 2022 period driven by depreciation in value compared to gains on equity securities in the 2021 period due to appreciation in value; and~~

•~~Net realized losses on sales of fixed maturity securities in 2022, driven by the increase in interest rates and wider credit spreads;~~

~~For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.~~

Losses and LAE Incurred for P&C

Benefits, losses and loss adjustment expenses increased ~~$58, comprised of:~~$506 due to:

•~~A decline~~An increase in ~~incurred losses for~~ Property & Casualty of ~~$14~~$394, which was ~~driven by:~~attributable to:

–An increase in P&C current accident year ("CAY") loss and loss adjustment expenses before catastrophes of $272, before tax, primarily due to the effect of higher earned premiums in Commercial Lines and higher personal automobile claim severity.

–An increase in current accident year catastrophe losses of $103, before tax. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, mainly in the South, Midwest and Mountain West. Catastrophe losses in the 2022 period included losses from wind and hail events mostly concentrated in the South, Midwest, and Central Plains.

–A ~~favorable change of $174~~decline in P&C net favorable prior accident year reserve ~~development.~~development of $19, before tax. Prior accident year reserve development in the 2023 period was a net favorable $39, before tax, primarily driven by decreases in reserves related to catastrophes and workers’ compensation, partly offset by increases in reserves for general liability, assumed reinsurance, and bond. Prior accident year reserve development in the 2022 period was a net favorable ~~$94,~~$58, before tax, primarily driven by reserve decreases in workers' compensation, catastrophes and package business, ~~and commercial property,~~ partially offset by reserve increases in general liability ~~assumed reinsurance,~~ and commercial automobile liability. Prior accident year reserve development in the 2021 period was a net unfavorable $80 before tax, driven by reserve increases for sexual molestation and sexual abuse claims, primarily to reflect claims made against the Boy Scouts of America ("BSA"). Apart from these reserve increases, prior accident year reserve development in the 2021 period primarily included reserve decreases for catastrophes, workers' compensation, package business, personal automobile, commercial property, and bond, as well as $45 before tax of adverse development for Navigators related to 2018 and prior accident years. While the Navigators’ reserve development has been economically ceded to NICO, the Company recognized a deferred gain under retroactive reinsurance accounting. For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

Losses and LAE Incurred for Group Benefits

–A decrease in current accident year catastrophe losses of $121, before tax. Catastrophe losses in the 2022 period included losses from tornado, wind and hail events in the South, Midwest and Central Plains, winter storms along the East Coast, and $27 of losses, net of reinsurance, related to the Ukraine conflict. Catastrophe losses in the 2021 period were driven by February winter storms primarily in the South, with the remainder from various tornado, wind and hail events, mostly concentrated in Texas, the Southeast and along the Pacific Coast. Losses of $181 from the February 2021 winter storms was net of a $62 reinsurance recoverable under the Company's per occurrence catastrophe treaty that covers 70% of up to $250 in losses in excess of $100 on catastrophe events occurring within a 7-day period other than from earthquakes and named hurricanes and tropical storms, subject to a $50 annual aggregate deductible.

–Partially offsetting was an increase in P&C CAY loss and loss adjustment expenses before catastrophes of $281, primarily due to the effect of higher earned premiums in Commercial Lines, higher personal automobile claim frequency and severity, and higher non-catastrophe property losses, partially offset by lower COVID-19 incurred losses and lower current accident year loss ratios before COVID-19 in global specialty lines, workers’ compensation, general liability and programs.

•~~More than offsetting this decrease was an~~An increase in Group Benefits of ~~$71,~~$112, before tax, primarily driven by the effect of an increase in earned premiums, as well as the impact of a higher group life loss ratio ~~on accidental death business, less~~and a slightly higher group disability loss ratio. The higher group life loss ratio was driven primarily by favorable prior quarter reserve development benefiting the 2022 period, ~~development on~~as well as higher group life severity in the 2023 period. The slight increase in the group disability loss ratio was driven by higher paid family leave and short-term disability claim incidence as compared to the prior year period, partially offset by favorable long-term disability claim incidence and arecoveries.

Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.

Insurance operating costs and other expenses were flat due to increases related to:

•Technology investments made to improve customer and broker experience and data analytics to enhance underwriting and pricing capabilities; and

•Increased expense from higher staffing costs and commissions in Commercial Lines and Group Benefits, partly in response to increased business volume, mostly offset by lower ~~New York~~incentive compensation.

These increases were offset by:

•Lower variable expenses in Hartford Funds;

•Incremental savings from the Company’s Hartford Next operational transformation and cost reduction plan;

•Lower direct marketing costs in Personal Lines; and

•A loss on extinguishment of debt in the 2022 period.

~~Paid Family Leave risk adjustment benefit with $9 recorded~~Income tax expense increased primarily due to an increase in income before tax. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Net income available to common stockholders increased by $195 primarily driven by:

•Lower net realized losses of $412, before tax, driven by a decline in value of equity securities in the 2022 period;

•In Group Benefits, an improved group life loss ratio driven by a lower level of mortality, the effect of higher fully insured ongoing premiums, including a lower expense ratio, and an improved group disability loss ratio, partially offset by lower net investment income; and

•A lower level of interest expense on corporate debt in the 2023 period compared to the 2022 period and a loss on extinguishment of debt in the 2022 period.

These increases were partially offset by:

•A decrease in P&C underwriting gain of $308, before tax, driven by higher current accident year catastrophe losses, a higher current accident year loss and LAE ratio before catastrophes in Personal Lines, and a lower level of favorable prior accident year reserve development, partially offset by the effect of earned premium growth, including a lower expense ratio; and

•In Hartford Funds, lower fee income net of variable expenses.

For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.

Earned Premiums

Earned premiums increased by $822, or 9%, primarily due to:

•An increase in P&C reflecting an 11% increase in Commercial Lines and a 4% increase in Personal Lines.

–Contributing to the increase in Commercial Lines was the effect of an increase in new business across lines of business, earned pricing increases, and higher insured exposures, principally in workers’ compensation.

Net Investment Income

–For Personal Lines, earned premium was up due to the effect of earned pricing increases, partially offset by non-renewals.

•An increase in Group Benefits earned premium of 7% due to increases in group life, group disability, and supplemental health product premiums, primarily driven by strong persistency and new business sales as well as an increase in exposure on existing accounts.

Fee income decreased, driven by lower daily average assets within Hartford Funds due to net outflows over the preceding twelve months partly offset by an increase in equity market levels since the prior year period.

Net investment income increased slightly primarily due to the impact of a higher yield on variable-rate securities and reinvesting at higher rates. This increase was largely offset by lower limited partnership and other alternative investment income driven by income from sales of underlying real estate properties in the 2022 period, ~~versus $22 recorded~~lower real estate fund valuations in the ~~2021~~current year as compared to the prior year, and an increase in private equity fund valuations in the 2022 period.

Net realized losses decreased primarily due to a decline in value of equity securities in the 2022 period driven by lower equity market levels. Also included were fewer net losses on sales of fixed maturities in the 2023 period compared to the 2022 period, partially offset by losses on credit derivatives in the 2023 period due to credit spread tightening.

For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.

Losses and LAE Incurred for P&C

Benefits, losses and loss adjustment expenses increased $868, comprised of:

•An increase in Property & Casualty of $769, which was attributable to:

–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $524, before tax, primarily due to the effect of higher earned premiums in Commercial Lines and higher personal automobile claim severity.

–An increase in current accident year catastrophe losses of $190, before tax. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, and losses from winter storms along the East and West Coasts. Catastrophe losses in the 2022 period included losses from tornado, wind and hail events in the South, Midwest and Central Plains, winter storms along the East Coast, and $27 of losses, net of reinsurance, related to the Ukraine conflict.

Losses and LAE Incurred for Group Benefits

–A decline in P&C net favorable prior accident year reserve development of $55, before tax. Prior accident year reserve development in the 2023 period was a ~~$119 decrease~~net favorable $39, before tax, primarily driven by decreases in ~~excess~~reserves related to workers' compensation and catastrophes, offset by increases in reserves for general liability, Personal Lines automobile physical damage, assumed reinsurance, bond, and uncollectible reinsurance. Prior accident year reserve development in the 2022 period was a net favorable $94, before tax, primarily driven by reserve decreases in workers' compensation, catastrophes, package business, and commercial property, partially offset by reserve increases in general liability, assumed reinsurance, and commercial automobile liability. For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

•An increase in Group Benefits of $99, before tax, primarily driven by the effect of an increase in earned premiums and higher incidence on paid family leave products, partially offset by the impact of lower mortality ~~claims.~~levels and lower incidence and favorable recoveries in long-term disability.

Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.

Insurance operating costs and other expenses increased slightly due to:

•~~An increase in performance-based commissions in Commercial Lines;~~Technology investments made to improve customer and broker experience and data analytics to enhance underwriting and pricing capabilities; and

•~~Higher technology costs;~~

•~~Higher volume-related~~Increased expense from higher staffing costs and commissions in Commercial Lines and Group ~~Benefits; and~~Benefits partly in response to increased business volume, mostly offset by lower incentive compensation.

•~~A reduction in doubtful accounts in the 2021 period.~~

These increases were ~~partially~~ offset by:

•Lower variable expenses in Hartford Funds;

•Incremental savings from the Company’s Hartford Next operational transformation and cost reduction ~~plan.~~plan;

•Lower direct marketing costs in Personal Lines; and

•Loss on extinguishment of debt in the 2022 period.

Interest Expense decreased primarily due to the Company redeeming $600 aggregate principal amount of junior subordinated debentures on April 15, 2022.

Income tax expense ~~decreased~~increased primarily due to ~~a decline~~an increase in income before tax. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

June 30, ~~2022~~2023 compared to December 31, ~~2021~~2022

Total investments ~~decreased~~increased slightly primarily due to ~~a decline~~an increase in fixed maturities, AFS, at fair value and ~~short-term investments, partially offset by an increase in~~ limited partnerships and other alternative investments, partially offset by a decrease in equity securities, at fair value and ~~mortgage loans.~~short-term investments.

Fixed maturities, AFS, at fair value increased primarily due to net additions of asset backed securities ("ABS") and corporate bonds and an increase in valuations as a result of tighter credit spreads.

Limited partnerships and other alternative investments increased primarily driven by additional investments.

Equity securities, at fair value decreased primarily due to ~~a decline in valuations due to higher interest rates and wider credit spreads.~~sales of common stocks. The remaining equity securities, at fair value is comprised of approximately 50% of preferred stock.

Short-term investments decreased primarily due to the ~~redemption~~Boy Scouts of ~~$600 of 7.875% junior subordinated debentures and share repurchases.~~

~~Mortgage loans~~ ~~increased largely due to funding of multifamily, industrial, and retail commercial whole loans.~~

~~Limited partnerships and other alternative investments~~ ~~increased primarily driven by higher valuations and additional investments.~~

America settlement paid on April 20, 2023.

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022 ~~compared to the three months ended June 30, 2021~~

Total net investment income ~~declined~~largely flat due to:

•~~Lower~~Higher yield on variable-rate securities and the impact of reinvesting at higher rates; and

•Largely offset by lower income from limited partnerships and other alternative investments driven by ~~lower returns on private equity funds, partially offset by higher real estate fund valuations and greater~~ income from sales of underlying real estate properties in the 2022 ~~period;~~

•~~A decline in valuation of equity~~period and lower real estate fund ~~investments in the 2022 period due to the decline in equity market levels;~~

•~~Partially offset by a higher level of invested assets.~~

~~Six months ended June 30, 2022 compared to~~valuations. In addition, the six ~~months ended June 30, 2021~~

~~Total net investment income~~ ~~declined due to:~~

•~~A decline in~~month period of 2022 included valuation ~~of equity fund investments in the 2022 period due to the decline in equity market levels;~~

•~~Lower income from limited partnerships and other alternative investments driven by lower returns~~increases on private equity ~~funds, partially offset by higher real estate fund valuations and greater income from sales of underlying real estate properties;~~funds.

•~~Partially offset by a higher level of invested assets.~~

Annualized net investment income yield, excluding limited partnerships and other alternative investments, was ~~down~~up primarily due to ~~negative returns~~a higher yield on ~~equity fund investments in the 2022 period.~~variable-rate securities and higher reinvestment rates.

Average reinvestment rates, on fixed maturities and mortgage loans, excluding certain U.S. Treasury securities, for the three and six ~~month periods~~months ended June 30, 2023 were 5.3% and 5.6%, respectively, which were above the average yield of sales and maturities of 4.1% and 4.1%, respectively. Average reinvestment rates for the three and six months ended June 30, 2022, were 4.5% and 3.8%, respectively, which were above the average yield of sales and maturities of 3.6% and 3.3%, respectively. Average reinvestment rates for the three and six month periods ended June 30, 2021, were 2.5% and 2.4%, respectively, which were below the average yield of sales and maturities of 2.9% and 2.9%, respectively.

For the ~~2022~~2023 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to ~~remain consistent with~~be above the portfolio yield earned in ~~2021~~2022 due to the ~~rising~~higher rate environment. The estimated impact on annualized net investment income yield is subject to variability due to evolving market conditions, active portfolio management, and the level of non-routine income items, such as make-whole payments, prepayment penalties on mortgage loans and yield adjustments on prepayable securities.

Three and six months ended June 30, ~~2021, includes~~2023

Gross gains ~~(losses) from~~and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals, in addition to sales of U.S. treasuries for duration and/or liquidity management.

Equity securities net gains were primarily driven by an increase in value due to higher equity market levels.

Other, net losses for the three and six month periods ended June 30, 2023 primarily included losses of $36 and $52, respectively, on credit derivatives primarily due to changes in valuation, and, losses of $9 and $16, respectively, on transactional foreign currency ~~revaluation~~revaluation. Also included for the six month period ended June 30, 2023 were losses of ~~$0 and $(7) respectively,~~$11 on FVO securities due to changes in credit spreads and gains ~~(losses)~~of $18 on ~~non-qualifying~~interest rate derivatives ~~of $(29) and $6, respectively.~~driven by an increase in interest rates.

Three and six months ended June 30, 2022

Gross gains and losses on sales were primarily due to sales of U.S. treasuries for duration management and to fund purchases of spread product, mortgage loans, and alternative investments. Also included were sales of corporate securities and tax-exempt municipals and tender activity.

Equity securitiesnet losses were primarily driven by ~~mark-to-market losses~~a decline in value due to ~~the decline in~~lower equity market levels.

Other, netgains and losses for the three and six month periods ended June 30, 2022 included gains of $15 and $21, respectively, on transactional foreign currency revaluation, and, losses of $20 and $23, respectively, on FVO securities due to credit spread widening. Also included for the six month period ended June 30, 2022 were gains of $37 on interest rate derivatives driven by an increase in interest rates and $14 on the termination of commodity derivatives driven by an increase in the price of crude oil.

~~Three and six months ended June 30, 2021~~

~~Gross gains and losses on sales~~ ~~were primarily due to an overall reduction to corporate securities and tax-exempt municipals, in addition to sales of U.S. treasuries for duration management.~~

~~Equity securities~~ ~~net gains were primarily driven by appreciation in value due to higher equity market levels.~~

~~Other, net~~ gains and losses for the three and six month periods ended June 30, 2021, included a gain of $46 on the sale of the Company's 9.7% retained interest in Talcott Resolution, and a loss of $19 and $18, respectively, related to the pending sale of the Company's Continental Europe Operations, which the Company agreed to sell in September of 2020. Also included for the three month period ended June 30, 2021 was a loss of $32 on interest rate derivatives driven by a decrease in interest rates.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ, and in the past have differed, from those estimates.

The Company has identified the following estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

•property and casualty insurance product reserves, net of reinsurance;

•group benefit ~~long-term disability~~LTD reserves, net of reinsurance;

•evaluation of goodwill for impairment;

•valuation of investments and derivative instruments including evaluation of credit losses on fixed maturities, AFS and ACL on mortgage loans; and

•contingencies relating to corporate litigation and regulatory matters.

In developing these estimates, management makes subjective and complex judgments that are inherently uncertain and subject to material change as facts and circumstances develop. Although variability is inherent in these estimates, management believes the amounts provided are appropriate based upon the facts available upon compilation of the financial statements. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Condensed Consolidated Financial Statements.

The Company’s critical accounting estimates are discussed in Part II, Item 7 MD&A in the Company’s ~~2021~~2022 Form 10-K Annual

Report. In addition, Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's ~~2021~~2022 Form 10-K Annual Report should be read in conjunction with this section

to assist with obtaining an understanding of the underlying accounting policies related to these estimates. The following discussion updates certain of the Company’s critical accounting estimates as of June 30, ~~2022.~~2023.

P&C Loss and Loss Adjustment Expense Reserves, Net of Reinsurance, by Segment as of June 30, ~~2022~~2023

Based on the results of the quarterly reserve review process, the Company determines the appropriate reserve adjustments, if any, to record. Recorded reserve estimates represent the Company's best estimate of the ultimate settlement amount of unpaid losses and loss adjustment expenses. The Company does not use statistical loss distributions or confidence levels in the process of determining its reserve estimate and, as a result, does not disclose reserve ranges. Assumptions used in arriving at the selected actuarial indications consider a number of factors, including the immaturity of emerged claims in recent accident years, emerging trends in the recent past, and the level of volatility within each line of business. In general, adjustments are made more quickly to more mature accident years and less volatile lines of business. Such adjustments of reserves are referred to as “prior accident year development”. Increases in previous estimates of ultimate loss costs are referred to as either an increase in prior accident year reserves or as unfavorable reserve development. Decreases in previous estimates of ultimate loss costs are referred to as either a decrease in prior accident year reserves or as favorable reserve development. Reserve development can influence the comparability of year over year underwriting results and is set forth in the paragraphs and tables that follow.

Net Income

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Net income for the three ~~months ended June 30, 2022 decreased primarily due to a change from net realized gains to net realized losses~~ and ~~lower net investment income, partially offset by a higher underwriting gain.~~

~~Net income for the~~ six months ended June 30, ~~2022~~2023 increased primarily due to ~~a higher underwriting gain,~~lower net realized losses, partially offset by a ~~change from net realized gains to net realized losses and, to a lesser extent,~~ lower ~~net investment income.~~ underwriting gain.

For further discussion of investment results, see MD&A - Investment Results.

Underwriting Gain

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Underwriting gain~~increased~~ for the three ~~month period~~and six months ended June 30, 2022 compared to the prior year three month period with the improvement primarily due to the effect of earned premium growth, a decrease in the current accident year loss and loss adjustment expense ratio before catastrophes and lower2023 decreased driven by higher current accident year catastrophes, ~~partially offset by~~ lower favorable prior accident year development, and ~~an increase in underwriting expenses.~~

~~Underwriting gainincreasedfor the six month period ended June 30, 2022 compared to the prior year six month period with the improvement primarily due to~~ a ~~change from unfavorable prior~~higher current accident year ~~development in the prior year period to favorable prior accident year development in the current year period,~~loss and LAE ratio before catastrophes, partially offset by the effect of earned premium growth, including a lower ~~current accident year catastrophes~~expense ratio.

Expense ratio decreased in both periods driven by the impact of higher earned premium, lower incentive compensation and ~~a decrease in~~incremental savings from the ~~current accident year loss and loss adjustment expense ratio before catastrophes,~~Hartford Next program, partially offset by ~~an increase~~investments in ~~underwriting expenses.~~

~~Underwriting expenses increased in both periods due to~~technology and higher underwriter staffing and technology costs, higher performance-based commissions and a decrease in the allowance for credit losses on premiums receivable in the 2021 period, partially offset by incremental savings from Hartford Next initiatives.

~~Earned Premiums~~

[1]Other earned premiums of $11 and $13, for the three months ended June 30, 2021, and 2022, respectively, and $22 and $24 for the six months ended June 30, 2021, and 2022, respectively is included in the total.costs.

Earned Premiums

[1]Other earned premiums of $13 and $13, for the three months ended June 30, 2022, and 2023, respectively, and $24 and $26 for the six months ended June 30, 2022 and 2023, respectively is included in the total.

Written Premiums

[1]Other written premiums of ~~$11~~$12 and ~~$12,~~$13 for the three months ended June 30, ~~2021,~~2022, and ~~2022,~~2023, respectively, and ~~$21~~$24 and ~~$24~~$26 for the six months ended June 30, ~~2021,~~2022 and ~~2022~~2023 is included in the total.

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Earned premiums for the three and six month periods increased ~~in 2022~~ due to written premium increases over the prior 12 months, ~~as well as due to~~including the effect of higher ~~premiums from audits and endorsements, principally in workers’ compensation due to an increasing exposure base from higher payrolls.~~insured exposures.

Written premiums for the three and six month periods increased ~~in 2022~~ driven by double-digit growth across small commercial, middle & large commercial and global specialty.

•Small commercial written premium increased in both periods driven by ~~exposure growth from higher audit and endorsement premium,~~double-digit new business growth, ~~higher policy count retention, and~~ renewal written ~~pricing~~price increases in all ~~lines.~~lines and higher insured exposures. Written premium grew in all lines of business, with the most significant growth in package business, workers' compensation and ~~package business.~~excess and surplus lines.

•Middle & large commercial written premium increased in both periods driven by double-digit new business growth, renewal written ~~pricing~~price increases in all lines, ~~improved policy count retention~~ and higher ~~audit and endorsement premium, partially offset by a decline in new business.~~insured exposures. Written premium grew in ~~most~~nearly all lines ~~of business, including~~across general industries, ~~national accounts~~industry verticals and ~~programs business.~~specialty markets.

•Global specialty written premium increased in both periods driven by written ~~pricing~~price increases ~~and for the six month period, higher retention, partially offset by a decline~~across almost all lines as well as an increase in gross new

business. Written ~~premium~~premiums grew ~~in all~~across most U.S. and international lines, ~~except international,~~ with the most significant growth in global ~~reinsurance, U.S. wholesale and financial lines.~~reinsurance.

Renewal written ~~pricing~~price increases were recognized in nearly all lines in ~~the three and six month periods, with moderating price increases across most lines in middle market and global specialty.~~

•~~In small commercial, renewal written price increases were modestly higher in~~ both the three and six month periods, with accelerating price increases across most lines other than workers' compensation and director's and officer's.

•In small commercial excluding workers' compensation, renewal written price increases were higher in 2023, with high-single digit price increases in package business and automobile and double-digit increases in excess and surplus lines. Workers' compensation pricing moderated from 2022 but was slightly positive ~~in 2022~~ due to ~~rising wages~~the effect of wage inflation largely offset by lower ~~rates, along with mid-single digit increases in most other lines.~~net rates.

•In middle market, the Company recognized ~~mid~~high single-digit to low double-digit price increases in most lines other than workers’ compensation, which ~~experienced~~was slightly positive ~~written pricing increases as~~due to the effect of ~~higher wages~~wage inflation largely offset by lower net rates.

•In global specialty, price increases continued to moderate from prior year levels and we achieved ~~mid~~low single-digit renewal written ~~pricing~~price increases overall, with the highest increases in property, marine ~~property, excess~~and casualty ~~and U.S. financial products and, for the three month period, a slight decrease in written pricing in international~~ lines.

~~Current Accident Year Loss and LAE Ratio before Catastrophes~~

~~Three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021~~

~~Current accident year loss and LAE ratio before catastrophes~~ decreased in both the three and six month periods primarily due to lower loss ratios in global specialty lines, workers’ compensation, general liability and programs and, for the six month period, lower COVID-19 incurred losses, partially offset by higher non-cat property losses, primarily in middle market.

In the six month period, the lower loss ratio in global specialty was partially offset by the effect on the ratio of $11 before tax in reinstatement premium owed to reinsurers related to ceding Ukraine conflict losses and a large ocean marine loss from an oil spill off the coast of Peru.

There were no COVID-19 incurred losses in the three and six months ended June 30, 2022 compared to $3 and $27 of COVID-19 incurred losses in the three and six months ended June 30, 2021, with losses in the six month period of 2021

~~including $20 in workers’ compensation and $7 in financial and other lines.~~

~~Catastrophes and Unfavorable (Favorable) Prior~~Current Accident Year ~~Development~~Loss and LAE Ratio before Catastrophes

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Current accident year loss and LAE ratio before catastrophes increased in the three month period due to a higher loss ratio in workers' compensation, and to a lesser extent, slightly elevated losses in a run-off line within the international book.

Current accident year loss and LAE ratio before catastrophes increased in the six month period principally driven by a higher loss ratio in workers' compensation, partially offset by a lower loss ratio in international. The lower loss ratio in global specialty international was mostly driven by the effect on the prior year ratio of $11 before tax in reinstatement premium owed to reinsurers related to ceding Ukraine conflict losses and a large ocean marine loss from an oil spill off the coast of Peru, both of which occurred in the three months ended March 31, 2022.

Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Current accident year catastrophe losses for the three and six months ended June 30, ~~2022~~2023 included losses from tornado, wind and hail events across several regions of the United States and, for the six month period, winter storms primarily inon the ~~South, Midwest~~East and ~~Central Plains.~~West coasts.

Current accident year catastrophe losses for the three ~~months ended June 30, 2021 included mostly tornado, wind~~ and ~~hail events, mainly concentrated in Texas and the Southeast.~~

~~Current accident year catastrophe losses~~ ~~for the~~ six months ended June 30, 2022 included losses from tornado, wind and hail events primarily in the South, Midwest and Central Plains, and, for the six month period, winter storms along the East ~~Coast~~coast and $27 of losses, net of reinsurance, related to the Ukraine conflict.

Current accident year catastrophe losses net of reinsurance for the six months ended June 30, 2021 included losses from February winter storms primarily in the South, with the remaining losses largely from tornado, wind and hail events, mostly concentrated in Texas, the Southeast and along the Pacific coast.

Prior accident year development was net favorable for the three and six months ended June 30, 2023 and included reserve decreases for workers' compensation and catastrophes, partially offset by reserve increases for general liability, assumed reinsurance and bond.

Prior accident year development was net favorable for the three and six months ended June 30, 2022. Reserve development in the 2022 periods included reserve decreases for workers' compensation, catastrophes, package business and commercial property, partially offset by reserve increases for automobile liability and, for the six month period, assumed reinsurance. In the three and six month periods, an increase in reserves for general liability related to excess casualty and primary construction was largely offset by a reallocation of a portion of reserves for sexual molestation and sexual abuse claims from Commercial Lines to P&C Other Operations. The reallocated reserves relate to excess liability policies written by a legal entity in P&C Other Operations for amounts owed to claimants under the agreement in principle reached with ~~BSA~~the Boy Scouts of America ("BSA") on sexual molestation and sexual abuse claims in third quarter 2021. In total for the Company, there was no change in the liability for settlement amounts owed on BSA claims. The six months ended June 30, 2022 also included reserve decreases for professional liability.

Prior accident year development was net favorable for the three months ended June 30, 2021 and was net unfavorable for the six month period ended June 30, 2021. Reserve development in the 2021 periods included reserve decreases for catastrophes, workers' compensation, package business, commercial property and bond, partially offset by professional liability reserve increases related to Navigators Group on 2018 and prior accident years and, for the six month period, an increase in general liability that included a reserve increase related to the settlement with Boy Scouts of America on sexual molestation and sexual abuse claims.

Prior accident year development in the 2021 periods included reserve increases related to Navigators Group on 2018 and prior accident years that was economically ceded to NICO but for which the benefit was not recognized in earnings as it has been recorded as a deferred gain on retroactive reinsurance.

Net Income (Loss)

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Net income changed to a net loss for both the three and six months ended June 30, 2022. For the three month period, the change was largely driven by an increase in the underwriting loss, partially offset by a decrease in net realized losses. For the six month period, the change was largely driven by a change from an underwriting gain to an underwriting loss, partially offset by a decrease in net realized losses and an increase in net investment income.

Underwriting Gain (Loss)

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Underwriting gain (loss) Underwriting loss increased in the three month period, and changed from a gain to a loss in the six month period, primarily due to higher current accident year losses before catastrophes in automobile and an increase in current accident year catastrophe losses, partially offset by a

decrease in direct marketing costs and an increase in earned premium due to renewal pricing increases. In the six month period, a change to net unfavorable prior accident year reserve development also contributed.

Expense ratio decreased in 2023 primarily due to lower direct marketing costs, and to a lesser extent, the impact of higher earned premium and Hartford Next savings.

Earned Premiums

Written Premiums

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Earned premiums increased in both the three and six month periods due to an increase in written premium over the prior twelve months in both automobile and in homeowners.

Written premiums increased in automobile in both the three and six month periods due to the effect of written pricing increases. Written premiums increased in homeowners in both the three and six month periods primarily due to an increase in new business and the effect of written pricing increases.

Renewal written pricing increases were higher for both automobile and homeowners in the three and six month periods

ended June 30, 2023 primarily in response to recent higher loss cost trends as well as higher insured values in homeowners.

Policy count retention for automobile was higher while, for homeowners, policy count retention was flat partly due to policyholder response to pricing increases.

Policies in-force decreased in 2023 for both automobile and for homeowners compared to the end of second quarter 2022, reflecting the level of new business in relation to non-renewed policies.

Current Accident Year Loss and LAE Ratio before Catastrophes

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Current accident year Loss and LAE ratio before catastrophes increased in both automobile and homeowners in both the three and six month periods. The increase in automobile was primarily due to an increase in ~~average~~automobile liability and physical damage claim severity. The automobile severity increases include the inflationary effects on bodily injury claims and automobile parts and repairs. Also impacting the change for automobile between years is a higher level of frequency in the ~~six month~~current period ~~higher claim frequency driven~~due to driving continuing to return to more normalized levels, largely offset by ~~an increase in miles driven.~~the impact of earned pricing increases. For homeowners, the increase in the current accident year loss and LAE ratio before catastrophes ~~for the three month period~~ was due to an increase in severity and ~~higher~~frequency for both weather ~~claim frequency, partially offset by the effect of earned pricing increases. For the six month period,~~and non-weather claims and an increase in ~~homeowners' severity was~~claims settlement costs, partially offset by earned pricing ~~increases and lower frequency of weather claims.~~increases. Contributing to the increase in homeowners severity was the effect of higher rebuilding costs ~~and a shift~~due to ~~non-weather claims, which have higher average severity.~~inflation.

Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Current accident year catastrophe losses increasedin both the three ~~months ended June 30, 2022 compared to~~and six month periods. Current accident year catastrophe losses for 2023 included tornado, wind and hail events across several regions of the ~~prior year period~~United States, and ~~were relatively flat~~ for the six month ~~period.~~period, included losses from winter storms primarily on the East and West coasts. Current accident year catastrophe losses for the three and six months ended June 30, 2022 included tornado, wind and hail events primarily in the South, Midwest and Central Plains and for the six month period, winter storms along the East Coast. Current accident year catastrophe losses for the three months ended June 30, 2021 primarily included losses from wind and hail storms in Texas and the Southeast with catastrophes in the six months ended June 30, 2021 also including February winter storms primarily in the South and wind events on the Pacific Coast.

Prior accident year development was ~~less~~ favorable in the three months ended June 30, 2023 period and unfavorable in the six month ~~periods, with lower reserve reductions for~~period. Net favorable prior accident year development in the three month period was primarily driven by a reduction in prior accident year catastrophes. Net unfavorable prior accident year development in the six month period was primarily driven by automobile ~~liability and prior year catastrophes.~~physical damage. Net favorable prior accident year development in the six months ended June 30, 2022 period was primarily driven by automobile liability. Net favorable prior accident year development in the three and six month periods in 2021 was driven mostly by reserve reductions in automobile for the 2017 to 2019 accident years and a reduction in prior accident year catastrophes driven by an expected subrogation recovery related to a 2018 California wildfire.

Net income (loss)

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Net income (loss) changed to ~~a net loss in the three months ended June 30, 2022 compared to~~ net income in the ~~comparable 2021 period, primarily due to an increase in underwriting loss, a change from net realized gains in the 2021 period to net realized losses in the 2022 period~~three and ~~to a lesser extent, a decrease in net investment income.~~

~~Net income (loss) changed to a net loss in the~~ six months ended June 30, ~~2022~~2023 compared to net ~~income~~losses in the

comparable ~~2021 period,~~2022 periods primarily due to ~~a change from~~decreases in underwriting losses and net realized ~~gains in the 2021 period to net realized losses in the 2022 period.~~losses.

Underwriting loss ~~increased~~decreased in the three and six month ~~period, primarily~~periods due to lower unfavorable prior accident year reserve development in the 2023 periods. Unfavorable prior accident reserve development in the 2022 ~~period~~ periods was primarily due to reallocating a portion of general liability reserves from Commercial Lines to P&C Other Operations related to sexual molestation and sexual abuse claims. The reallocated reserves ~~relate~~in 2022 related to excess liability policies written by a legal entity in P&C Other Operations for amounts owed to claimants under the agreement in principle reached with BSA on sexual molestation and sexual abuse claims in third quarter 2021. In total for the Company, there was no change in the liability for settlement amounts owed on BSA claims.

~~Underwriting loss decreased in the six month period, primarily due to a lower amount of unfavorable prior accident year reserve development in the 2022 period.~~ Unfavorable development in the six months ended June 30, 2022 consisted of the sexual molestation and sexual abuse reserves reallocated from Commercial Lines. Unfavorable reserve development for the six months ended June 30, 2021 primarily consisted of an increase in reserves for sexual molestation and sexual abuse claims, primarily on assumed reinsurance, partially offset by a reduction in the allowance for uncollectible reinsurance.

Asbestos and environmental reserve ~~reserve~~ comprehensive annual reviews will occur in the fourth quarter of ~~2022.~~2023. For information on asbestos and environmental ("A&E&E") reserves, see MD&A - Critical Accounting Estimates, Asbestos and Environmental Reserves included in the Company's ~~2021~~2022 Form 10-K Annual Report.

Net Income

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Net income~~decreased~~ increased in both the three and six months ended June 30, ~~2022, largely driven by a change from net realized gains in the 2021 period~~2023 due to lower net realized losses in the ~~2022~~2023 period and the effect of higher ~~insurance operating expenses and~~fully insured ongoing premium, including a lower expense ratio, partially offset by a decrease in net investment ~~income, partially offset~~income. In addition, the three month period was impacted by ~~additional earnings generated by growth in fully insured ongoing premiums and~~ a ~~reduction~~higher loss ratio in the ~~total~~2023 period while the six month period benefitted from a lower loss ~~ratio.~~ ratio in the 2023 period.

Insurance operating costs and other expenses were higher for both the three and six month ~~period were~~periods primarily due to the effect of premium growth, including higher ~~as higher claim~~commissions and staffing costs, ~~to handle pandemic related claims~~ and ~~an increase~~investments in technology, ~~costs were~~ partially offset by incremental expense savings from ~~the~~ Hartford Next ~~operational transformation~~ and ~~cost reduction program.~~lower incentive compensation.

Fully Insured Ongoing Premiums

[1]Other of ~~$79~~$90 and ~~$90~~$102 for the three months ended June 30, ~~2021~~2022 and ~~2022,~~2023 respectively, and ~~$156~~$177 and ~~$177~~$202 for the six months ended June 30, ~~2021~~2022 and ~~2022,~~2023 respectively which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity ~~and participant accident~~ coverages.

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Fully insured ongoing premiums increased ~~primarily~~in both the three and six month periods in group disability, life and other driven by strong persistency and new business sales as well as an increase in exposure on existing ~~accounts resulting from increased enrollment, low unemployment, and wage increases, as well as strong persistency.~~accounts.

Fully insured ongoing sales ~~excluding buyouts,~~ decreased for the three-month period due to lower large account sales. For the six-month period, sales increased ~~in the three month period in both group disability and~~over prior year driven by group life ~~and decreased in the six month period primarily in group disability due to the prior year period benefiting from the expansion of paid medical leave in several states.~~sales.

Ratios

Three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022

Total loss ratio increased 2.0 points in the three months ended June 30, 2023 compared to the prior year period reflecting higher group life and group disability loss ratios. The group life loss ratio increased 5.5 points as the second quarter of 2022 benefitted from favorable development of $24, or 4.0 points, related to the prior quarter. Additionally, the life loss ratio was adversely affected by higher severity in the current year as compared to the prior year. The disability loss ratio increased 0.7 points largely due to higher incidence in paid family leave and short-term disability products, partially offset by favorable long-term disability claim incidence and recoveries.

Total loss ratio decreased ~~1.2~~2.4 points ~~for~~in the ~~three-month~~six months ended June 30, 2023 compared to the prior year period reflecting a lower group life ~~loss ratio, partially offset by a higher~~and group disability loss ratio. The group life loss ratio decreased ~~4.7~~3.2 points driven by a ~~4.9 point decrease in excess mortality. For~~lower level of mortality compared to the three-month period ended June 30, 2022 and 2021, the Company recognized excess mortality losses (benefit) of $(5) and $25, respectively. Included in the excess mortality estimate for the three months ended June 30, 2022 and 2021 are estimated losses of $19 and $88, respectively, for the current accident quarter and favorable development of $24 and $63, respectively, on excess mortality estimates related to prior quarters. The disability loss ratio increased 2.1 points primarily due to a lower New York Paid Family Leave risk adjustment benefit with $10 recorded in the 2022 period versus $22 recorded in the 2021year period. ~~A benefit related to COVID-19 impacts of $5 and $6, respectively, was recognized on short-term disability losses for the three months ended June 30, 2022 and 2021.~~

Total loss ratio decreased 1.8 points for the six-month period reflecting a lower group life loss ratio, partially offset by a higher group disability loss ratio. The group life loss ratio decreased 7.4 points driven by a 9.8 point decrease in excess mortality claims partially offset by a higher loss ratio on accidental death business. For the six-month period ended June 30, 2022 and 2021, excess mortality losses were $91 and $210, respectively. The group disability loss ratio ~~increased 3.4~~decreased 1.0 points ~~primarily~~ due to ~~a lower New York Paid Family Leave risk adjustment benefit~~favorable long-term disability claim incidence and recoveries, partially offset by higher incidence in paid family leave and short-term disability products.

Expense ratio decreased in both the three and six month periods driven by the effect of higher earned premiums and incremental expense savings from Hartford Next, partially offset by higher staffing costs and investments in technology.

with $9 recorded in the 2022 period versus $22 recorded in the 2021 period, as well as less favorable prior period development on long-term disability as the 2021 period benefited from low incidence levels earlier in the pandemic. COVID-19 related short-term disability losses of $4 and $7, respectively, were recognized in the six months ended June 30, 2022 and 2021.

~~Expense ratio~~ increased slightly in both the three and six month periods driven by higher claim costs to handle pandemic related claims and an increase in technology costs, partially offset by incremental expense savings from the Hartford Next operational transformation and cost reduction program and higher earned premiums.

~~Net loss available to common stockholders~~

~~Three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021~~

~~Net loss available to common stockholders~~ ~~for the three and six months ended June 30, 2022 increased from the comparable 2021 periods, primarily due a change from net~~

~~realized gains~~ in the 2021 periods to net realized losses in the 2022 periods, partially offset by legal and consulting costs in incurred in the 2021 periods associated with the unsolicited proposals from Chubb Limited to acquire the Company, and, for the six month period, the effect of a loss of $11 before tax in the 2021 period from the Company’s previously owned equity interest in Talcott Resolution.

~~For the three month period, lower interest expense and a higher tax benefit for stock-based compensation were largely offset by a $9 loss on extinguishment of debt in the 2022 period.~~

~~Interest Expense~~

~~Three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021~~

Net loss available to common stockholders

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Net loss available to common stockholdersfor the three and six months ended June 30, 2023 decreased primarily due to a change from net realized losses in the 2022 periods to net realized gains in the 2023 periods, higher net investment income, a loss on extinguishment of debt in the 2022 periods and lower interest expense, partially offset by lower fee income.

Interest expense

Three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022

Interest expense slightly decreased for the three and six months ended June 30, ~~2022,~~2023, largely due to the redemption of $600 in 7.875% junior subordinated debentures in April, 2022.

ENTERPRISE RISK MANAGEMENT

The Company’s Board of Directors has ultimate responsibility for risk oversight, as described more fully in our Proxy Statement, while management is tasked with the day-to-day management of the Company’s risks.

The Company manages and monitors risk through risk policies, controls and limits. At the senior management level, an Enterprise Risk and Capital Committee (“ERCC”) oversees the risk profile and risk management practices of the Company.

The Company's enterprise risk management ("ERM") function supports the ERCC and functional committees, and is tasked with, among other things:

•risk identification and assessment;

•the development of risk appetites, tolerances, and limits;

•risk monitoring; and

•internal and external risk reporting.

The Company categorizes its main risks as insurance risk, operational risk and financial risk. Insurance risk and financial risk are described in more detail below. Operational risk, including cybersecurity, and specific risk tolerances for natural catastrophes, terrorism and pandemic risk are described in the ERM section of the MD&A in The Hartford’s ~~2021~~2022 Form 10-K Annual Report.

|INSURANCE RISK

Insurance risk is the risk of losses of both a catastrophic and non-catastrophic nature on the P&C and Group Benefits products the Company has sold. Catastrophe insurance risk is the exposure arising from both natural catastrophes (e.g., weather, earthquakes, wildfires, pandemics) and man-made catastrophes (e.g., terrorism, cyber-attacks) that create a concentration or aggregation of loss across the Company's insurance or asset portfolios.

Sources of Insurance Risk Non-catastrophe insurance risks exist within each of the Company's segments except Hartford Funds and include:

•Property- Risk of loss to personal or commercial property from automobile related accidents, weather, explosions, smoke, shaking, fire, theft, vandalism, inadequate installation, faulty equipment, collisions and falling objects, and/or machinery mechanical breakdown resulting in physical damage, losses from political violence and terrorism ("PV&T&T") and other covered perils.

•Liability- Risk of loss from automobile related accidents, uninsured and underinsured drivers, lawsuits from accidents, defective products, breach of warranty, negligent acts by professional practitioners, environmental claims, latent exposures, fraud, coercion, forgery, failure to fulfill

obligations per contract surety, liability from errors and omissions, losses ~~from CPRI~~on credit and political risk insurance ("CPRI") coverages, losses from derivative lawsuits, and other securities actions and covered perils.

•Mortality- Risk of loss from unexpected trends in insured deaths impacting timing of payouts from group life insurance, personal or commercial automobile related accidents, and death of employees or executives during the course of employment, while on disability, or while collecting workers compensation benefits.

•Morbidity- Risk of loss to an insured from illness incurred during the course of employment or illness from other covered perils.

•Disability- Risk of loss incurred from personal or commercial automobile related losses, accidents arising outside of the workplace, injuries or accidents incurred during the course of employment, or from equipment, with each loss resulting in ~~short term~~short-term or long-term disability payments.

•Longevity- Risk of loss from increased life expectancy trends among policyholders receiving long-term benefit payments.

•Cyber Insurance- Risk of loss to property, breach of data and business interruption from various types of cyber-attacks.

Catastrophe risk primarily arises in the property, automobile, workers' compensation, casualty, group life, and group disability lines of business but could also arise from other coverages such as losses under PV&T and CPRI policies. Not all insurance losses arising from catastrophe risk are categorized as catastrophe losses within the segment operating results. For example, losses arising from the COVID-19 pandemic were not categorized as catastrophe losses within either the P&C or Group Benefits segments as the pandemic was not identified as a catastrophe event by the Property Claim Service in the U.S. See the term Current Accident Year Catastrophe Ratio within the Key Performance Measures section of MD&A for an explanation of how the Company defines catastrophe losses in its financial reporting.

Impact Non-catastrophe insurance risk can arise from unexpected loss experience, underpriced business and/or underestimation of loss reserves and can have significant effects on the Company’s earnings. Catastrophe insurance risk can arise from various unpredictable events and can have significant effects on the Company's earnings and may result in losses that could constrain its liquidity.

Management The Company's policies and procedures for managing these risks include disciplined underwriting protocols, exposure controls, sophisticated risk-based pricing, risk modeling, risk transfer, and capital management strategies. The Company has established underwriting guidelines for both individual risks, including individual policy limits, and risks in the aggregate, including aggregate exposure limits by geographic zone and peril. The Company uses both internal and third-party models to estimate the potential loss resulting from various catastrophe events and the potential financial impact those

events would have on the Company's financial position and results of operations across its businesses.

In addition to the property catastrophe reinsurance coverage described in the above table, the Company has other reinsurance agreements that cover property catastrophe losses, some of which provide for reinstatement of limits in the event of a loss with reinstatement provisions varying depending on the layer of coverage. The Per Occurrence Property Catastrophe Treaty, and Workers' Compensation Catastrophe Treaty include a provision to reinstate one limit in the event that a catastrophe loss exhausts limits on one or more layers under the treaties.

Reinsurance for Terrorism- For the risk of terrorism, private sector catastrophe reinsurance capacity is generally limited and largely unavailable for terrorism losses caused by nuclear, biological, chemical or radiological attacks. As such, the Company's principal reinsurance protection against large-scale terrorist attacks is the coverage currently provided through TRIPRA to the end of 2027.

TRIPRA provides a backstop for insurance-related losses resulting from any “act of terrorism”, which is certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General, for losses that exceed a threshold of industry losses of $200. Under the program, in any one calendar year, the federal government will pay a percentage of losses incurred from a certified act of terrorism after an insurer's losses exceed 20% of the Company's eligible direct commercial earned premiums of the

prior calendar year up to a combined annual aggregate limit for the federal government and all insurers of $100 billion. The percentage of losses paid by the federal government is 80%.

The Company's estimated deductible under the program is ~~$1.7~~$1.9 billion for ~~2022.~~2023. If an act of terrorism or acts of terrorism result in covered losses exceeding the $100 billion annual industry aggregate limit, Congress would be responsible for determining how additional losses in excess of $100 billion will be paid.

Reinsurance for A&E and Navigators Group Reserve Development - The Company has two ~~ADC~~adverse development covers ("ADC") reinsurance agreements in place, both of which are accounted for as retroactive reinsurance. One agreement covers substantially all A&E reserve development for 2016 and prior accident years (the “A&E ADC”) up to an aggregate limit of $1.5 billion and the other covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years ~~(“Navigators~~(the “Navigators ADC”) up to an aggregate limit of $300. ~~As the Company has ceded all of the $300 available limit under the Navigators ADC, there is no remaining limit available as of June 30, 2022.~~ For more information on the A&E ADC and the Navigators ADC, see Note 1, Basis of Presentation and Significant Accounting Policies ~~of Notes to Consolidated Financial Statements, included in The Hartford's 2021 Form 10-K Annual Report,~~ and Note ~~9 -~~11, Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to ~~Condensed~~ Consolidated Financial ~~Statements.~~Statements, included in The Hartford's 2022 Form 10-K Annual Report.

|FINANCIAL RISK

Financial risks include direct and indirect risks to the Company's financial objectives from events that impact financial market conditions and the value of financial assets. Some events may

|~~FINANCIAL RISK~~

~~Financial risks include direct and indirect risks to the Company's financial objectives from events that impact financial market conditions and the value of financial assets. Some events may~~ cause correlated movement in multiple risk factors. The primary sources of financial risks are the Company's invested assets.

Consistent with its risk appetite, the Company establishes financial risk limits to control potential loss on a U.S. GAAP, statutory, and economic basis. Exposures are actively monitored and managed, with risks mitigated where appropriate. The Company uses various risk management strategies, including limiting aggregation of risk, portfolio re-balancing and hedging with over-the-counter ("OTC") and exchange-traded derivatives with counterparties meeting the appropriate regulatory and due diligence requirements. Derivatives are utilized to achieve the following Company-approved objectives: (1) hedging risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; (2) managing liquidity; (3) controlling transaction costs; and (4) engaging in income generation covered call transactions and synthetic replication transactions. Derivative activities are monitored and evaluated by the Company’s compliance and risk management teams and reviewed by senior management. The Company identifies different categories of financial risk, including liquidity, credit, interest rate, equity, and foreign currency exchange.

Liquidity Risk

Liquidity risk is the risk to current or prospective earnings or capital arising from the Company's inability or perceived inability to meet its contractual funding obligations as they come due.

Sources of Liquidity Risk Sources of liquidity risk include funding risk, company-specific liquidity risk and market liquidity risk resulting from differences in the amount and timing of sources and uses of cash as well as company-specific and general market conditions. Stressed market conditions may impact the ability to sell assets or otherwise transact business and may result in a significant loss in ~~value.~~value of the investment portfolio.

Impact Inadequate capital resources and liquidity could negatively affect the Company’s overall financial strength and its ability to generate cash flows from its businesses, borrow funds at competitive rates, and raise new capital to meet operating and growth needs.

Management The Company has defined ongoing monitoring and reporting requirements to assess liquidity across the enterprise under both current and stressed market conditions. The Company measures and manages liquidity risk exposures and funding needs within prescribed limits across legal entities, taking into account legal, regulatory and operational limitations to the transferability of liquid assets among legal entities. The Company also monitors internal and external conditions, and identifies material risk changes and emerging risks that may impact operating cash flows or liquid assets. The liquidity requirements of The Hartford Financial Services Group, Inc. ("HFSG Holding Company") have been and will continue to be met by the HFSG Holding Company's fixed maturities, short-term investments and cash, and dividends from its subsidiaries, principally from its insurance operations, as well

as the issuance of common stock, debt or other capital securities and borrowings from its credit facilities, as needed. The Company maintains multiple sources of contingent liquidity including a revolving credit facility, an intercompany liquidity agreement that allows for short-term advances of funds among

the HFSG Holding Company and certain affiliates, and access to collateralized advances from the Federal Home Loan Bank of Boston ("FHLBB") for certain affiliates. The Company's CFO has primary responsibility for liquidity risk.

Credit Risk and Counterparty Risk

Credit risk is the risk to earnings or capital due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with contractually agreed upon terms. Credit risk is comprised of three major factors: the risk of change in credit quality, or credit migration risk; the risk of default; and the risk of a change in value due to changes in credit spreads.

Sources of Credit Risk The majority of the Company’s credit risk is concentrated in its investment holdings and use of derivatives, but it is also present in the Company’s ceded reinsurance activities and various insurance products.

Impact A decline in creditworthiness is typically reflected as an increase in an investment’s credit spread and an associated decline in the investment's fair value, potentially resulting in recording an ACL and an increased probability of a realized loss upon sale. In certain instances, counterparties may default on their obligations and the Company may realize a loss on default. Premiums receivable, including premiums for retrospectively rated plans, reinsurance recoverable and deductible losses recoverable are also subject to credit risk based on the counterparty’s inability to pay.

Management The objective of the Company’s enterprise credit risk management strategy is to identify, quantify and manage credit risk in aggregate and to limit potential losses in accordance with the Company's credit risk management policy. The Company manages its credit risk by managing aggregations of risk, holding a diversified mix of issuers and counterparties across its investment, reinsurance and insurance portfolios and limiting exposure to any specific reinsurer or counterparty. Potential credit losses can be mitigated through diversification (e.g., geographic regions, asset types, industry sectors), hedging and the use of collateral to reduce net credit exposure.

The Company manages credit risk through the use of various surveillance, analyses and governance processes. The investment and reinsurance areas have formal policies and procedures for counterparty approvals and authorizations, which establish criteria defining minimum levels of creditworthiness and financial stability for eligible counterparties. Potential investments are subject to underwriting reviews and private securities are subject to management approval. Mitigation strategies vary across the three sources of credit risk, but may include:

•Investing in a portfolio of high-quality and diverse securities;

•Selling investments subject to heightened credit risk;

•Hedging through use of credit default swaps;

•Clearing derivative transactions through central clearing houses that require daily variation margin;

•Entering into derivative and reinsurance contracts only with strong creditworthy institutions;

•Requiring collateral; and

•~~Clearing derivative transactions through central clearing houses that require daily variation margin;~~

•~~Entering into derivative and reinsurance contracts only with strong creditworthy institutions;~~

•~~Requiring collateral; and~~

•Non-renewing policies/contracts or reinsurance treaties.

The Company has developed credit exposure thresholds which are based upon counterparty ratings. Aggregate counterparty credit quality and exposure are monitored on a daily basis utilizing an enterprise-wide credit exposure information system that contains data on issuers, ratings, exposures, and credit limits. Exposures are tracked on a current and potential basis and aggregated by ultimate parent of the counterparty across investments, reinsurance receivables, insurance products with credit risk, and derivatives.

As of June 30, ~~2022,~~2023, the Company had no investment exposure to any credit concentration risk of a single issuer or counterparty greater than 10% of the Company’s stockholders' equity, other than the U.S. government and certain U.S. government agencies. For further discussion of concentration of credit risk in the investment portfolio, see the Concentration of Credit Risk section in Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.

Credit Risk of Derivatives

The Company uses various derivative counterparties in executing its derivative transactions. The use of counterparties creates credit risk that the counterparty may not perform in accordance with the terms of the derivative transaction.

Downgrades to the credit ratings of the Company’s insurance operating companies may have adverse implications for its use of derivatives. In some cases, downgrades may give derivative counterparties for OTC derivatives and clearing brokers for OTC-cleared derivatives the right to cancel and settle outstanding derivative trades or require additional collateral to be posted. In addition, downgrades may result in counterparties and clearing brokers becoming unwilling to engage in or clear additional derivatives or may require additional collateralization before entering into any new trades.

The Company also has derivative counterparty exposure policies which limit the Company’s exposure to credit risk. Credit exposures are generally quantified based on the prior business day’s net fair value, including income accruals, of all derivative positions transacted with a single counterparty for each separate legal entity. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not necessarily reflective of credit risk. The Company enters into collateral arrangements in connection with its derivatives positions and collateral is pledged to or held by, or on behalf of, the Company to the extent the exposure is greater than zero, subject to minimum transfer thresholds. In accordance with industry standards and the contractual requirements, collateral is typically settled on the same business day. For the six months ended June 30, ~~2022,~~2023, the Company incurred no losses on derivative instruments due to counterparty default. For further discussion, see the Derivative Commitments section of Note 1314 - Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.

Use of Credit Derivatives

The Company may also use credit default swaps to manage credit exposure or to assume credit risk to enhance yield.

Credit Risk Reduced Through Credit Derivatives

The Company ~~primarily~~ uses credit derivatives to purchase credit protection with respect to a single entity or referenced index.

The Company purchases credit protection through credit default swaps to economically hedge and manage credit risk of certain fixed maturity investments across multiple sectors of the investment portfolio.

Credit Risk Assumed Through Credit Derivatives

The Company may also ~~enters~~enter into credit default swaps that assume credit risk as part of replication transactions. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. These swaps primarily reference ~~indexes of CMBS issuers.~~investment grade single corporate issuers and indexes.

For further information on credit derivatives, see Note 6 - Derivatives of Notes to Condensed Consolidated Financial Statements.

Credit Risk of Business Operations

The Company is subject to credit risk related to the Company's ~~commercial~~Commercial Lines business that is written with large deductible policies or retrospectively-rated plans (referred to as "loss sensitive business"). The Company’s results of operations could be adversely affected if a significant portion of such contract holders failed to reimburse the Company for the deductible amount or the retrospectively rated policyholders failed to pay additional premiums owed. While the Company attempts to manage the risks discussed above through underwriting, credit analysis, collateral requirements, provision for bad debt, and other oversight mechanisms, the Company’s efforts may not be successful.

Interest Rate Risk

Interest rate risk is the risk of financial loss due to adverse changes in the value of assets and liabilities arising from movements in interest rates. Interest rate risk encompasses exposures with respect to changes in the level of interest rates, the shape of the term structure of rates and the volatility of interest rates. Interest rate risk does not include exposure to changes in credit spreads.

Sources of Interest Rate Risk The Company has exposure to interest rate risk arising from investments in fixed maturities and commercial mortgage loans, issuances by the Company of debt securities, preferred stock and similar securities, discount rate assumptions associated with the Company’s claim reserves and pension and other postretirement benefit obligations, and assets that support the Company's pension and other postretirement benefit plans.

Impact Changes in interest rates from current levels can have both favorable and unfavorable effects for the Company.

Management The Company manages its exposure to interest rate risk by constructing investment portfolios that seek to protect the Company from the economic impact associated with changes in interest rates by setting portfolio duration targets that are aligned with the duration of the liabilities that they support. The Company analyzes interest rate risk using various models including parametric models and cash flow simulation under various market scenarios of the liabilities and their supporting investment portfolios. Key metrics that the Company uses to quantify its exposure to interest rate risk inherent in its invested assets and the associated liabilities include duration, convexity and key rate duration.

~~Company uses to quantify its exposure to interest rate risk inherent in its invested assets and the associated liabilities include duration, convexity and key rate duration.~~

The Company primarily utilizes interest rate swaps and, to a lesser extent, futures to mitigate interest rate risk associated with its investment portfolio or liabilities and to manage portfolio duration.

Equity Risk

Equity risk is the risk of financial loss due to changes in the value of global equities or equity indices.

Sources of Equity Risk The Company has exposure to equity risk from invested assets, assets that support the Company’s pension and other postretirement benefit plans, and fee income derived from Hartford Funds assets under management.

Impact The investment portfolio is exposed to losses from market declines affecting equity securities and derivatives, which could negatively impact the Company's reported earnings. In addition, investments in limited partnerships and other alternative investments generally have a level of correlation to domestic equity market levels and can expose the Company to losses in earnings if valuations decline; however, earnings impacts are recognized on a lag as results from private equity investments and other funds are generally reported on a three-month delay. For assets supporting pension and other postretirement benefit plans, the Company may be required to make additional plan contributions if equity investments in the plan portfolios decline in value. Hartford Funds earnings are also significantly influenced by the U.S. and other equity markets. Generally, declines in equity markets will reduce the value of average daily assets under management and the amount of fee income generated from those assets. Increases in equity markets will generally have the inverse impact.

Management The Company uses various approaches in managing its equity exposure, including limits on the proportion of assets invested in equities, diversification of the equity portfolio, and, at times, hedging of changes in equity indices. For assets supporting pension and other postretirement benefit plans, the asset allocation mix is reviewed on a periodic basis.

In order to minimize risk, the pension plans maintain a listing of permissible and prohibited investments and impose

concentration limits and investment quality requirements on permissible investment options.

Foreign Currency Exchange Risk

Foreign currency exchange risk is the risk of financial loss due to changes in the relative value between currencies.

Sources of Currency Risk The Company has foreign currency exchange risk in non-U.S. dollar denominated cash, fixed maturities, equities, and derivative instruments. In addition, the Company has non-U.S. subsidiaries, some with functional currencies other than U.S. dollar, and which transact business in multiple currencies resulting in assets and liabilities denominated in foreign currencies.

Impact Changes in relative values between currencies can create variability in cash flows and realized or unrealized gains and losses on changes in the fair value of assets and liabilities.

Management The Company manages its foreign currency exchange risk primarily through asset-liability matching and through the use of derivative instruments. However, legal entity capital is invested in local currencies in order to satisfy regulatory requirements and to support local insurance operations. The foreign currency exposure of non-U.S. dollar denominated investments will most commonly be reduced through the sale of the assets or through hedges using foreign currency swaps and forwards.

Investment Portfolio Risk

The following table presents the Company’s fixed maturities, AFS, by credit quality. The credit ratings referenced throughout this section are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. Accrued interest receivable related to fixed maturities are recorded in other assets on the Condensed Consolidated Balance Sheets and are not included in the amortized cost or fair value of the fixed maturities. For further information refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.

The fair value of fixed maturities, AFS increased as compared with December 31, 2022, primarily due to net additions of ABS and corporate bonds and an increase in valuations as a result of tighter credit spreads. The Company primarily increased holdings of consumer loans and financial services and basic industry corporate bonds, while primarily decreasing holdings of

U.S. treasuries and tax-exempt municipal bonds.

Commercial & Residential Real Estate

The following tables present the Company’s exposure to CMBS and RMBS by credit quality included in the preceding Fixed Maturities, AFS by Type table.

The Company also has exposure to commercial mortgage loans. These loans are collateralized by real estate properties that are diversified both geographically throughout the United States and by property type. These commercial loans are originated by the Company as high quality whole loans, and the Company may sell participation interests in one or more loans to third parties. A loan participation interest represents a pro-rata share in interest and principal payments generated by the participated loan, and the relationship between the Company as loan originator, lead participant and servicer and the third party as a participant are governed by a participation agreement.

As of June 30, 2023, mortgage loans had an amortized cost of $6.1 billion and carrying value of $6.0 billion, with an ACL of $41. As of December 31, 2022, mortgage loans had an amortized cost of ~~$5.9~~$6.0 billion and carrying value of ~~$5.9~~$6.0 billion, with an ACL of $36. ~~As of December 31, 2021, mortgage loans had an amortized cost of $5.4 billion and carrying value of $5.4 billion, with an ACL of $29.~~ The increase in the allowance is primarily attributable to ~~the potential impact of current economic~~overall weaker projected real estate

~~conditions on real estate property valuations~~fundamentals, and to a lesser extent, net additions of new loans.

The Company funded ~~$672~~$304 of commercial mortgage loans with a weighted average loan-to-value (“LTV”) ratio of ~~56%~~58% and a weighted average yield of ~~3.1%~~6.8% during the six months ended June 30, ~~2022.~~2023. The Company continues to originate commercial mortgage loans in high growth markets across the country focusing primarily on institutional-quality industrial, multi-family, ~~industrial,~~ and retail properties with strong LTV ratios. There were no mortgage loans held for sale as of June 30, ~~2022,~~2023, or December 31, ~~2021.~~2022.

Municipal Bonds

The following table presents the Company's exposure to municipal bonds by type and weighted average credit quality included in the preceding Securities by Type table.

As of June 30, ~~2022,~~2023, the largest issuer concentrations were the ~~New York State Dormitory Authority,~~Grand Parkway Transportation Corporation of Texas, the New York City Transitional Finance Authority, and the ~~Grand Parkway~~Metropolitan Transportation ~~Corporation of Texas,~~Authority, which each comprised less than 2%3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds. As of December 31, ~~2021,~~2022, the largest issuer concentrations were the Grand Parkway Transportation Corporation of Texas, the New York ~~State Dormitory~~City Transitional Finance Authority, ~~the Pennsylvania State Turnpike Commission,~~ and the ~~State of California,~~New York City Municipal Water Finance Authority, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds. In total, municipal bonds make up ~~13%~~12% of the fair value of the Company's investment portfolio.

Limited Partnerships and Other Alternative Investments

The following table presents the Company’s investments in limited partnerships and other alternative investments which

include real estate joint ventures, real estate funds, private equity funds, ~~and hedge~~other funds, and other ~~funds as well as other~~ alternative investments.

~~Real estate funds consist of investments primarily in real estate joint ventures and, to a lesser extent, equity funds.~~ Private equity funds primarily consist of investments in funds whose assets typically consist of a diversified pool of investments in small to mid-sized non-public businesses with high growth potential and strong owner sponsorship, as well as limited exposure to public markets.

Income or losses on investments in limited partnerships and other alternative investments are recognized on a lag as results from private equity investments and other funds are generally reported on a three-month delay.

Fixed Maturities, AFS — Unrealized Loss Aging

The total gross unrealized losses were ~~$2.6~~$3.1 billion as of June 30, ~~2022,~~2023, and have ~~increased $2,428,~~decreased $387 million from December 31, ~~2021,~~2022, primarily due to ~~higher interest rates and wider~~an increase in valuations as a result of tighter credit spreads. As of June 30, ~~2022, $2.2~~2023, $2.4 billion of the gross unrealized losses were associated with fixed maturities, AFS depressed less than 20% of amortized cost. The remaining ~~$0.4 billion~~$624 million of gross unrealized losses were associated with fixed maturities, AFS depressed greater than 20%. The fixed maturities, AFS depressed more than 20% primarily related to corporate fixed maturities, RMBS, CMBS, and municipal bonds that are mainly depressed because current interest rates are higher ~~and~~and/or market spreads are wider than at the respective purchase dates.

As part of the Company’s ongoing investment monitoring process, the Company has reviewed its fixed maturities, AFS in an unrealized loss position and concluded that these fixed maturities are temporarily depressed and are expected to recover in value as the investments approach maturity or as market spreads tighten. For these fixed maturities in an unrealized loss position where an ACL has not been recorded, the Company’s best estimate of expected future cash flows are sufficient to recover the amortized cost basis of the investment. Furthermore, the Company neither has an intention to sell nor does it expect to be required to sell these investments. For further information regarding the Company’s ACL analysis, see the Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments section below.

~~Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments~~

~~Three and six months ended June 30, 2022~~

Changes to the ACL for the three months ended June 30, 2022, were less than $1. For the six months ended June 30, 2022, the Company recorded a net increase in the ACL of $12. The increase was primarily attributable to new expected credit losses on four issuers with Russian exposure. Unrealized losses on

~~securities with an ACL recognized in other comprehensive income were less than $1 for both the three and six months ended June 30, 2022. For further information, refer to Note~~ 5 ~~- Investments of Notes to Condensed Consolidated Financial Statements.~~

Intent-to-sell impairments were $0 and $3 for the three and six months ended June 30, 2022, respectively, with impairments in the six month period related to one corporate issuer in the financial services sector.

Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments

Three and six months ended June 30, 2023

For the three and six months ended June 30, 2023, the Company recorded net credit losses of $3 and $8, respectively. The net credit losses were primarily attributable to new expected credit losses of $2 and $6, respectively, related to two below investment grade corporate issuers. For the three and six months ended June 30, 2023, unrealized losses on securities with an ACL recognized in other comprehensive income were $0 and $4, respectively. For further information, refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.

There were no intent-to-sell impairments in the three and six months ended June 30, 2023.

The Company incorporates its best estimate of future performance using internal assumptions and judgments that are informed by economic and industry specific trends, as well as our expectations with respect to security specific developments.

Future intent-to-sell impairments or credit losses may develop as the result of changes in our intent to sell specific securities that are in an unrealized loss position or if modeling assumptions, such as macroeconomic factors or security specific developments, change unfavorably from our current modeling assumptions, resulting in lower cash flow expectations.

Three and six months ended June 30, ~~2021~~2022

~~There were no new additions~~Changes to the ACL ~~or improvements on issuers that had an ACL recognized in~~for the three months ended June 30, ~~2021. In~~2022, were less than $1. For the six months ended June 30, ~~2021,~~2022, the Company recorded a net ~~reversals~~increase in the ACL of ~~credit losses on fixed maturities, AFS of $4, including reversals of $6 and additions of $2.~~$12. The ~~reversals were~~increase was primarily attributable ~~to increases in the fair value of corporate issuers that had an ACL, primarily related to a large regional and commercial aircraft lessor. Additions relate~~ to new expected credit losses on ~~a media/entertainment company.~~four issuers with Russian exposure. Unrealized losses on

securities with an ACL recognized in other comprehensive income were less than $1 for both the three and six months ended June 30, ~~2021~~2022.

~~There~~Intent-to-sell impairments were ~~no intent-to-sell impairments in~~$0 and $3 for the three and six months ended June 30, ~~2021.~~2022, respectively, with impairments in the six month period related to one corporate issuer in the financial services sector.

ACL on Mortgage Loans

Three and six months ended June 30, ~~2022~~2023

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. For further information, refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.

For both the three and six months ended June 30, 2023, the Company recorded an increase in the ACL on mortgage loans of $5. The increase in the allowance is primarily attributable to overall weaker projected real estate fundamentals, and to a lesser extent, net additions of new loans. The Company did not record an ACL on any individual mortgage loans.

Three and six months ended June 30, 2022

For the three and six months ended June 30, 2022, the Company recorded an increase in the ACL on mortgage loans of $5 and $7, respectively. The increase in the allowance is primarily attributable to the potential impact of current economic conditions on real estate property valuations and net additions of new loans. The Company did not record an ACL on any individual mortgage loans.

The following section discusses the overall financial strength of The Hartford and its insurance operations including their ability to generate cash flows from each of their business segments, borrow funds at competitive rates and raise new capital to meet operating and growth needs.

|SUMMARY OF CAPITAL RESOURCES AND LIQUIDITY

Capital available to the holding company as of June 30, ~~2022:~~2023:

•~~$1.1 billion~~Approximately $900 in fixed maturities, short-term investments, investment sales receivable and cash at ~~The~~the HFSG Holding ~~Company.~~Company;

•A senior unsecured revolving credit facility that provides for borrowing capacity up to $750 of unsecured credit through October 27, 2026. As of June 30, ~~2022,~~2023, there were no borrowings outstanding; and

•An intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes. As of June 30, ~~2022,~~2023, $1.9 billion was available, $100 was outstanding between certain affiliates and there were no ~~borrowings outstanding.~~amounts outstanding at the HFSG holding company.

~~2022 expected dividends~~Dividends and other sources of ~~capital:~~capital for the six months ended June 30, 2023:

The future payment of dividends from our subsidiaries is dependent on several factors including the business results, capital position and liquidity of our subsidiaries.

•P&C - ~~The~~HFSG Holding Company received $609 of net dividends from the Company's U.S. property and casualty insurance subsidiaries ~~have dividend capacity of $2.0 billion for 2022, with $1.4 billion to $1.5 billion of net dividends expected in 2022, including $750 paid to HFSG Holding Company~~ through June 30, ~~2022.~~2023;

•Group Benefits - HFSG Holding Company received $258 in dividends from Hartford Life and Accident Insurance Company ("HLA") ~~has dividend capacity of $241 in 2022 with $200 to $240 of dividends expected in 2022, including $90 paid to HFSG Holding Company~~ through June 30, ~~2022.~~2023; and

•Hartford Funds - HFSG Holding Company ~~expects to receive $160 to $180~~received $60 in dividends from Hartford Funds ~~in 2022, including $85 received~~ through June 30, ~~2022.~~2023.

Expected liquidity requirements for the next twelve months as of June 30, ~~2022:~~2023:

•$194 of interest on ~~debt, including, for the 3-month LIBOR plus 2.125%~~debt. See Note 13 - Debt of Notes ~~due 2067, interest at a rate~~to Condensed Consolidated Financial Statements and Note 13 - Debt of ~~4.39% given the 10-year interest rate swap agreement the Company entered into~~Notes to Consolidated Financial Statements in ~~April 2017;~~The Hartford's 2022 Form 10-K Annual Report.

Under significant economic stress scenarios, the Company has the ability to meet short-term cash requirements, if needed, by borrowing under its revolving credit facility or by having its insurance subsidiaries take collateralized advances under a facility with the FHLBB. The Company could also choose to have its insurance subsidiaries sell certain highly liquid, high quality fixed maturities or the Company could issue debt in the public markets under its shelf registration.

~~Debt~~

On April 15, 2022, The Hartford redeemed at par $600 aggregate principal amount of its 7.875% junior subordinated debentures due 2042 and recognized, in insurance operating costs and other expenses, a loss on extinguishment of debt of $9, before tax, for unamortized debt issuance costs.

|DIVIDENDS

The Hartford's Board of Directors declared the following quarterly dividends since April 1, ~~2022:~~2023:

Common Stock Dividends


Declared	Record	Payable	Amount per share
May ~~18, 2022~~17, 2023	June 1, ~~2022~~2023	July 5, ~~2022~~2023	$	~~0.385~~0.425
July ~~20, 2022~~19, 2023	September 1, ~~2022~~2023	October ~~4, 2022~~3, 2023	$	~~0.385~~0.425

Preferred Stock Dividends


Declared	Record	Payable	Amount per share
May ~~18, 2022~~17, 2023	August 1, ~~2022~~2023	August 15, ~~2022~~2023	$	375.00
July ~~20, 2022~~19, 2023	November 1, ~~2022~~2023	November 15, ~~2022~~2023	$	375.00

There are no current restrictions on the HFSG Holding Company's ability to pay dividends to its stockholders.

For a discussion of restrictions on dividends to the HFSG Holding Company from its insurance subsidiaries, see the following "Dividends from Subsidiaries" discussion. For a discussion of potential restrictions on the HFSG Holding Company's ability to pay dividends, see the risk factor "Our ability to declare and pay dividends is subject to limitations" in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

|DIVIDENDS FROM SUBSIDIARIES

Dividends to HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. ~~The Company’s principal~~For a discussion of restrictions on dividends to HFSG Holding Company from its insurance subsidiaries ~~are domiciled~~see Part II, Item 7, MD&A – Capital Resources and Liquidity - Dividends from Subsidiaries in ~~the United States and the United Kingdom.~~

The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of

corporate purposes, which would be presented as short- or long-term debt, or to earn incremental investment income, which would be presented in other liabilities consistent with other collateralized financing transactions. As of June 30, ~~2022,~~2023, there were no advances outstanding.

For further information regarding collateralized advances with FHLBB, see Note 1413 - Debt of Notes to Consolidated Financial Statements included in the Company’s ~~2021~~2022 Form 10-K Annual Report.

Lloyd's Letter of Credit Facilities

The Hartford has entered into a committed credit facility agreement with a syndicate of lenders (the "Club Facility") ~~as well as a non-committed $25 credit facility with a lender (the "Bilateral Facility")~~. The Club Facility has two tranches with one tranche extending a ~~$104~~$74 commitment and the other tranche extending a ~~£85~~£79 million ($~~103~~100 as of June 30, ~~2022)~~2023) commitment. As of June 30, ~~2022,~~2023, letters of credit with an aggregate face ~~amount~~amounts of ~~$104~~$74 and ~~£65~~£79 million ~~or $79,~~($100), respectively, were outstanding under the Club ~~Facility and no letters of credit were outstanding under the Bilateral~~ Facility.

Among other covenants, the Club Facility ~~and Bilateral Facility contain~~contains financial covenants regarding The Hartford's consolidated net worth and financial leverage and that limit the amount of letters of credit that can support Funds ~~and~~at Lloyd's, consistent with Lloyd's requirements. As of June 30, ~~2022,~~2023, The Hartford was in compliance with all financial covenants of ~~both facilities.~~the facility.

For further information regarding the Club Facility, ~~and the Bilateral Facility,~~ see Note 1413 - Debt of Notes to Consolidated Financial Statements included in the Company’s ~~2021~~2022 Form 10-K Annual Report.

|PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

The Company does not have a ~~2022~~2023 required minimum funding contribution for the U.S. qualified defined benefit pension plan and the funding requirements for all pension plans are expected to be immaterial. ~~The Company has not determined whether, and to what extent, contributions may be made to the U.S. qualified defined benefit pension plan in 2022. The Company will monitor~~Based on the funded status of the U.S. qualified defined benefit pension plan, ~~during 2022~~the Company does not anticipate contributing to ~~make this determination.~~the plan in 2023. For further discussion of pension and other postretirement benefit obligations, see Note 1617 - Employee Benefit Plans of Notes to Condensed Consolidated Financial Statements.

|DERIVATIVE COMMITMENTS

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical rating agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could terminate agreements and demand immediate settlement of the outstanding net derivative positions transacted under each agreement. For further information, refer to Note 1314 - Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.

As of June 30, ~~2022,~~2023, no derivative positions would be subject to immediate termination in the event of a downgrade of one level below the current financial strength ratings. This could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated.

|INSURANCE OPERATIONS

While subject to variability period to period, underwriting and investment cash flows continue to provide sufficient liquidity to meet anticipated demands.

The principal sources of operating funds are premiums, fees earned from insurance and administrative service agreements and investment income, while investing cash flows primarily originate from maturities and sales of invested assets.

The Company’s insurance operations consist of property and casualty insurance products (collectively referred to as “Property & Casualty Operations”) and Group ~~Benefits.~~Benefits products.

The Company's insurance operations hold fixed maturity securities, including a significant short-term investment position (securities with maturities of one year or less at the time of purchase), to meet liquidity needs. Liquidity requirements that are unable to be funded by the Company's insurance operations' short-term investments would be satisfied with current operating funds, including premiums or investing cash flows, which includes proceeds received through the sale of invested assets. A sale of invested assets could result in significant realized losses.

The following tables represent the fixed maturity holdings, including the aforementioned cash and short-term investments available to meet liquidity needs, for each of the Company’s insurance operations.


Property & Casualty Operations
	As of June 30, ~~2022~~2023
Fixed maturities	$	~~29,708~~29,861
Short-term investments	~~1,068~~1,694
Cash	~~225~~128
Less: Derivative collateral	4140
Total	$	~~30,960~~31,643

Property & Casualty operations invested assets also include ~~$1.2 billion~~$483 in equity securities, ~~$4.2~~$4.4 billion in mortgage loans and ~~$3.1~~$3.6 billion in limited partnerships and other alternative investments.


Group Benefits ~~Operations~~
	As of June 30, ~~2022~~2023
Fixed maturities	$	~~8,207~~7,764
Short-term investments	~~267~~415
Cash	2513
Less: Derivative collateral	1611
Total	$	~~8,483~~8,181

Group Benefits ~~operations~~ invested assets also include ~~$297~~$97 in equity securities, $1.6 billion in mortgage loans and ~~$786~~$955 in limited partnerships and other alternative investments.

The primary uses of funds are to pay claims, claim adjustment expenses, commissions and other underwriting and insurance operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HFSG Holding Company.

Property & Casualty reserves for unpaid losses and loss adjustment expenses as of June 30, 2023 were $33.0 billion and net of reinsurance were $26.6 billion. Reserves for Property & Casualty unpaid losses and loss adjustment expenses include

~~operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HFSG Holding Company.~~

~~Property & Casualty reserves for unpaid losses and loss adjustment expenses as of June 30, 2022 were $31.9 billion. Reserves for Property & Casualty unpaid losses and loss adjustment expenses include~~ case reserves and incurred but not reported ("IBNR"). reserves. The ultimate amount to be paid to settle both case ~~reserves~~ and IBNR reserves is an estimate, subject to significant uncertainty. The actual amount to be paid is not finally determined until the Company reaches a settlement with the claimant. Final claim settlements may vary significantly from the present estimates, particularly since many claims will not be settled until well into the future. For a discussion of The Hartford’s judgment in estimating reserves for Property & Casualty see Part II, Item 7, MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance in the Company's ~~2021~~2022 Form 10-K Annual Report, and for historical payments by reserve line net of reinsurance, see Note ~~12,~~11, Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements included in the Company's ~~2021~~2022 Form 10-K Annual Report. The timing of future payments for the next twelve months and for beyond twelve months could vary materially from historical payment patterns due to, among other things, changes in claim reporting and payment patterns and large unanticipated settlements. In particular, there is significant uncertainty over the claim payment patterns of asbestos and environmental claims.

Group Benefits reserves as of June 30, ~~2022~~2023 were $8.9 billion and net of reinsurance were $8.7 billion. ~~Estimated group~~Group life and disability obligations are estimated using assumptions based on ~~assumptions comparable with~~ the Company’s historical experience, modified for recent observed trends. For a discussion of The Hartford’s judgment in estimating reserves for Group Benefits see Part II, Item 7, MD&A - Critical Accounting Estimates, Group Benefit Reserves, Net of Reinsurance, in the Company’s ~~2021~~2022 Form 10-K Annual Report. For additional information about future policy benefits and other policyholder funds and benefits payable, see Note 10 Reserve for Future Policy Benefits and ~~for~~Note 11, Other Policyholder Funds and Benefits Payable of Notes to Condensed Consolidated Financial Statements. For historical payments by reserve line, net of reinsurance, see Note ~~12,~~11, Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements included in the Company's

~~2021~~ 2022 Form 10-K Annual Report. Due to the significance of the assumptions used, payments for the next

twelve months and beyond twelve months could materially differ from historical patterns.

Corporate includes reserves of ~~$438~~$409 as of June 30, ~~2022~~2023 related to retained run-off liabilities of its former life and annuity business. For additional information about future policy benefits and other policyholder funds and benefits payable, see Note 10, - Reserve for Future Policy ~~Benefits.~~Benefits and Note 11, Other Policyholder Funds and Benefits Payable of Notes to Condensed Consolidated Financial Statements.

Hartford Funds

Hartford ~~Funds~~Funds' principal sources of operating funds are fees earned from basis points on assets under management with uses primarily for payments to subadvisors and other general operating expenses. As of June 30, ~~2022,~~2023, Hartford Funds cash and short-term investments were ~~$228.~~$239.

|PURCHASE AND OTHER OBLIGATIONS

The Hartford’s unfunded commitments to purchase investments in limited partnerships and other alternative investments, private placements, and mortgage loans are disclosed in Note 1514 - Commitments and Contingencies of Notes to Consolidated Financial Statements in The Hartford's ~~2021~~2022 Form 10-K Annual Report. It is anticipated that these unfunded commitments will be funded through the Company’s normal operating and investing activities.

In the normal course of business, the Company enters into contractual commitments to purchase various goods and services such as maintenance, human resources, and information technology. The Company’s operating lease commitments are disclosed in Note 2120 - Leases of Notes to Consolidated Financial Statements in The Hartford's ~~2021~~2022 Form 10-K Annual Report. It is anticipated that these purchase commitments and operating lease obligations will be funded through the Company’s normal operating and investing activities.

Total capitalization ~~decreased $4,206~~increased $479 as of June 30, ~~2022~~2023 compared to December 31, ~~2021~~2022 primarily due to ~~an increase in net unrealized losses on fixed maturities, AFS, share repurchases, and the Company's redemption of its 7.875%~~

~~junior subordinated debentures, partially offset by~~ net income in excess of common stockholder dividends in the ~~period.~~period and a

decrease in net unrealized losses on fixed maturities, AFS, partially offset by share repurchases.

For additional information on AOCI, net of tax, including net unrealized gain (losses) from securities, see Note 1516 - Changes

In and Reclassifications From Accumulated Other Comprehensive Income (Loss) and Note 5 - Investments of Notes to Condensed Consolidated Financial Statements. For additional information on debt, see Note 1113 - Debt of Notes to

Condensed Consolidated Financial ~~Statement~~Statements and Note 1413 -

Debt of Notes to Consolidated Financial Statement in The Hartford's ~~2021~~2022 Form 10-K Annual Report.

Cash provided by operating activities decreased in ~~2022~~2023 as compared to the prior year period primarily driven by an increase in P&C ~~and Group Benefits~~ loss and loss adjustment expenses paid, including the $787 million payment to the BSA on April 20, 2023, higher taxes paid, and higher operating expenses, including increased commissions and staffing costs, ~~and an increase in tax payments,~~ partially offset by an increase in P&C and Group Benefits premiums ~~received.~~received and lower Group Benefits loss and loss adjustment expenses paid.

Cash provided by ~~(used for)~~ investing activities ~~increased from net outflows~~decreased in ~~the 2021 period to net inflows in the 2022 period~~2023 as a result of a change from net proceeds from to net payments for fixed maturities, a decrease in proceeds from short term investments, and a change from net proceeds from to net payments for derivatives, partially offset by a change from net payments for to net proceeds from ~~short term investments~~equity securities, and a decrease in net payments for ~~equity securities, partially offset by a decrease in net proceeds from fixed maturities as well as an increase in net payments for partnerships.~~mortgage loans.

Cash used for financing activities~~increased~~ decreased primarily due to the redemption of $600 of 7.875% junior subordinated debentures in the second quarter of 2022, ~~as well as an increase~~and a decrease in share repurchases in ~~2022.~~2023.

Operating cash ~~flow~~flows for the six months ended June 30, ~~2022~~2023 has been adequate to meet liquidity requirements.

|EQUITY MARKETS

For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk section in this MD&A and the Financial Risk on Statutory Capital section of the MD&A in the Company's ~~2021~~2022 Form 10-K Annual Report.

|RATINGS

Ratings are an important factor in establishing a competitive position in the insurance marketplace and impact the Company's ability to access financing and its cost of borrowing. There can be no assurance that the Company’s ratings will continue for any given period of time, or that they will not be changed. In the event the Company’s ratings are downgraded,

the Company’s competitive position, ability to access financing, and its cost of borrowing, may be adversely impacted.


Insurance Financial Strength Ratings as of July ~~27, 2022~~26, 2023
	A.M. Best	Standard & Poor’s	Moody’s
Hartford Fire Insurance Company	A+	A+	A1
Hartford Life and Accident Insurance Company	A+	A+	A1
Navigators Insurance Company	A+	AA+	Not Rated
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt	a-	BBB+	Baa1

These ratings are not a recommendation to buy, sell or hold any of The Hartford's securities and they may be revised or withdrawn at any time at the discretion of the rating organization. Each agency's rating should be evaluated independently of any other agency's rating. The system and the number of rating categories can vary across rating agencies.

Among other factors, rating agencies consider the level of statutory capital and surplus of our U.S. insurance subsidiaries as well as the level of ~~a measure of~~ GAAP capital held by the Company in determining the Company's financial strength and credit ratings. Rating agencies may implement changes to their capital formulas that have the effect of increasing the amount of capital we must hold in order to maintain our current ratings. See Risk Factors disclosed in Item 1A of Part I of the Company's ~~Annual Report on~~2022 Form 10-K ~~for the year ended December 31, 2021.~~Annual Report.

|CONTINGENCIES

Legal Proceedings

For a discussion regarding The Hartford’s legal proceedings, see the information contained in Note 1314 - Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements.

Legislative and Regulatory Developments

~~COVID-19 Global Pandemic~~

~~State~~For a discussion regarding legislative and ~~federal lawmakers continue to propose legislation~~regulatory developments, see Part II, Item 7, MD&A - Capital Resources and regulation to address the effects of the COVID-19 pandemic and to promote recovery from the pandemic. There have been proposals to impose retroactive coverage of COVID-19 claims under existing business interruption coverage provisions. If such proposals were enacted, they could represent a material exposure for the Company. Further, some states have adopted, or are considering incorporating, a presumption that if certain workers become infected with COVID-19, such infection would constitute an occupational disease triggering workers’ compensation coverage. In addition, state insurance regulators, including California, New Jersey and New York, have encouraged (and in some cases required) insurers to offer immediate relief to policyholders. As the COVID-19 global pandemic continues, regulators may require us or we may elect to provide additional consumer and/or business financial relief. We may also see this manifestLiquidity, Contingencies in the ~~review~~Company’s 2022 Form 10-K Annual Report.

For a discussion of accounting standards, see Note 1 - Basis of Presentation and ~~approval~~Significant Accounting Policies of ~~new rate filings, with regulators applying heightened scrutiny even when rate reductions are proposed.~~Notes to Consolidated Financial Statements included in The ~~duration~~Hartford’s 2022 Form 10-K Annual Report and ~~scope~~Note 1 - Basis of ~~such regulatory/Company actions are uncertain,~~Presentation and ~~the impacts~~Significant Accounting Policies of ~~such actions could adversely affect the Company’s insurance business.~~Notes to Condensed Consolidated Financial Statements of this Form 10-Q.

Proposals have been introduced in Congress to enact a pandemic risk insurance coverage through a risk sharing mechanism between insurers and the federal government for future pandemics. Timing for any Congressional action with respect to these proposals is uncertain at this time. If such a program were to be enacted, it could represent a significant obligation for the Company in terms of deductible and co-share obligations.

~~Biden Administration Build Back Better Agenda~~

During 2021, the Biden Administration called for Congressional action on the President’s Build Back Better Agenda, which outlined funding across traditional infrastructure and human infrastructure in the U.S.

On November 15, 2021, President Biden signed the bipartisan “Infrastructure Investment and Jobs Act” into law, which provided funding for traditional infrastructure such as roads, bridges and highways.

~~The second phase of Build Back Better proposes funding for a national paid family and medical leave program, clean energy initiatives, affordable childcare and more in the Build Back Better Act.~~

Notably, a national paid family and medical leave program could affect existing state-based disability and paid leave programs or other products and services that the Company provides through its Group Benefits business.

If enacted, the effect of new proposals from the Build Back Better agenda on the Company’s operations, including the ability to attract new business and retain existing customers is unclear. While Congress is considering partisan action on the Build Back Better agenda, the nature and timing of such action is unclear.

~~US Tax Reform~~

As Congress debates action on various spending initiatives, it may consider a variety of proposals to fund the cost of new spending with revenue raising measures. Proposals from the Build Back Better agenda, as well as the Biden Administration commitment to the OECD global minimum tax, could be drivers of tax policy changes, including a possible increase in the corporate tax rate, creation of a corporate minimum tax and other changes to taxes owed on income earned outside of the U.S. These and other tax proposals and regulatory initiatives that may be considered by Congress and/or the U.S. Treasury Department could have a material effect on the Company and its insurance businesses. The nature and timing of any Congressional or regulatory action with respect to any such efforts is unclear.

~~Post-Brexit UK Regulatory Reforms~~

~~The UK Prudential Regulation Authority (“PRA”) is reviewing the Solvency II regime, introduced across the EU during 2016 to align insurance entities’ risk frameworks for managing capital~~

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company’s principal executive officer and its principal financial officer, based on their evaluation of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) have concluded that the Company’s disclosure controls and procedures are effective for the purposes set forth in the definition thereof in Exchange Act Rule 13a-15(e) as of June 30, ~~2022.~~2023.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company's internal control over financial reporting that occurred during the Company's current fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

For a discussion regarding The Hartford’s legal proceedings, see the information contained in Note 1314 - Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements.

Investing in The Hartford involves risk. In deciding whether to invest in The Hartford, you should carefully consider the risk factors disclosed in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, (collectively the "Company's Risk Factors" or individually, the "Company's Risk Factor"), which is incorporated herein by

reference, any of which could have a significant or material adverse effect on the business, financial condition, operating results or liquidity of The Hartford. This information should be considered carefully together with the other information contained in this report and the other reports and materials filed by The Hartford with the SEC.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER

Repurchases of common stock by the Company during the quarter ended June 30, ~~2022~~2023 are set forth below. During the period from July 1, ~~2022~~2023 to July ~~27, 2022,~~26, 2023, the Company repurchased ~~1.7~~1.4 million shares for ~~$107.~~$101.

~~EXHIBITS~~

During the three months ended June 30, 2023, none of the officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) or directors of the Company adopted, terminated or modified any contract, instruction or written plan for the


~~See Exhibits Index on page~~			purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as such term is defined in Item 408(a) of Regulation S-K. ~~108~~.

~~107~~108

|


Table of Contents

Part II - Item 6. Exhibits

Item 6.

EXHIBITS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

FOR THE QUARTER ENDED JUNE 30, ~~2022~~2023

FORM 10-Q

EXHIBITS INDEX

Exhibit No.

Description

Form

File No.

Exhibit No

Filing Date

Exhibit No.

Description

Form

File No.

Exhibit No

Filing Date

3.01

Restated Certificate of Incorporation of The Hartford, as filed with the Delaware Secretary of State on October 20, 2014.

8-K

001-13958

3.01

10/20/2014

3.01

Restated Certificate of Incorporation of The Hartford, as filed with the Delaware Secretary of State on October 20, 2014.

8-K

001-13958

3.01

10/20/2014

3.02

Amended and Restated By-Laws of The Hartford, amended effective December 17, 2020.

8-K

001-13958

3.1

7/21/2016

3.02

Amended and Restated By-Laws of The Hartford Financial Services Group, Inc. effective December 14, 2022.

8-K

001-13958

3.1

12/14/2022

15.01

Deloitte & Touche LLP Letter of Awareness.**

15.01

Deloitte & Touche LLP Letter of Awareness.**

31.01

Certification of Christopher J. Swift pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

31.01

Certification of Christopher J. Swift pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

31.02

Certification of Beth A. Costello pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

31.02

Certification of Beth A. Costello pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

32.01

Certification of Christopher J. Swift pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

32.01

Certification of Christopher J. Swift pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

32.02

Certification of Beth A. Costello pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

32.02

Certification of Beth A. Costello pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema.**

101.SCH

Inline XBRL Taxonomy Extension Schema.**

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase.**

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase.**

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase.**

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase.**

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase.**

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase.**

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase.**

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase.**

104

The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL.

104

The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL.

*

Management contract, compensatory plan or arrangement.

**

Filed with the Securities and Exchange Commission as an exhibit to this report.

**

Filed with the Securities and Exchange Commission as an exhibit to this report.


Delaware						13-3317783
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HIG	The New York Stock Exchange
6.10% Notes due October 1, 2041	HIG 41	The New York Stock Exchange

Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share	HIG PR G	The New York Stock Exchange


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except for per share data)	(in millions, except for per share data)	2022		2021		2022		2021		(in millions, except for per share data)	2023		2022		2023		2022
		(Unaudited)									(Unaudited)
Revenues	Revenues									Revenues
Earned premiums	Earned premiums	$	4,810	$	4,460	$	9,461	$	8,803	Earned premiums	$	5,220	$	4,810	$	10,283	$	9,461
Fee income	Fee income	341		375		703		730		Fee income	328		341		647		703
Net investment income	Net investment income	541		581		1,050		1,090		Net investment income	540		541		1,055		1,050
Net realized (losses) gains		(338)		147		(483)		227
Net realized losses										Net realized losses	(64)		(338)		(71)		(483)
Other revenues	Other revenues	19		26		35		38		Other revenues	25		19		45		35
Total revenues	Total revenues	5,373		5,589		10,766		10,888		Total revenues	6,049		5,373		11,959		10,766
Benefits, losses and expenses	Benefits, losses and expenses									Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	Benefits, losses and loss adjustment expenses	3,076		2,786		6,194		6,136		Benefits, losses and loss adjustment expenses	3,580		3,074		7,062		6,194
Amortization of deferred policy acquisition costs ("DAC")	Amortization of deferred policy acquisition costs ("DAC")	453		417		893		833		Amortization of deferred policy acquisition costs ("DAC")	502		450		993		887
Insurance operating costs and other expenses	Insurance operating costs and other expenses	1,222		1,202		2,429		2,346		Insurance operating costs and other expenses	1,225		1,225		2,441		2,435

Interest expense	Interest expense	51		57		113		114		Interest expense	50		51		100		113
Amortization of other intangible assets	Amortization of other intangible assets	17		17		35		35		Amortization of other intangible assets	17		17		35		35
Restructuring and other costs	Restructuring and other costs	2		—		7		11		Restructuring and other costs	3		2		3		7
Total benefits, losses and expenses	Total benefits, losses and expenses	4,821		4,479		9,671		9,475		Total benefits, losses and expenses	5,377		4,819		10,634		9,671
Income before income taxes	Income before income taxes	552		1,110		1,095		1,413		Income before income taxes	672		554		1,325		1,095
Income tax expense	Income tax expense	110		205		208		259		Income tax expense	125		110		243		208

Net income	Net income	442		905		887		1,154		Net income	547		444		1,082		887
Preferred stock dividends	Preferred stock dividends	5		5		10		10		Preferred stock dividends	5		5		10		10
Net income available to common stockholders	Net income available to common stockholders	$	437	$	900	$	877	$	1,144	Net income available to common stockholders	$	542	$	439	$	1,072	$	877

Net income available to common stockholders per common share	Net income available to common stockholders per common share									Net income available to common stockholders per common share
Basic	Basic	$	1.33	$	2.54	$	2.66	$	3.21	Basic	$	1.75	$	1.34	$	3.44	$	2.66
Diluted	Diluted	$	1.32	$	2.51	$	2.62	$	3.17	Diluted	$	1.73	$	1.32	$	3.39	$	2.62


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
		(Unaudited)									(Unaudited)
Net income	Net income	$	442	$	905	$	887	$	1,154	Net income	$	547	$	444	$	1,082	$	887
Other comprehensive income (loss) ("OCI"):	Other comprehensive income (loss) ("OCI"):									Other comprehensive income (loss) ("OCI"):
Change in net unrealized gain (loss) on fixed maturities		(1,592)		295		(3,474)		(630)
Change in net unrealized gain (loss) on fixed maturities, available for sale ("AFS")										Change in net unrealized gain (loss) on fixed maturities, available for sale ("AFS")	(269)		(1,597)		317		(3,489)
Change in unrealized losses on fixed maturities for which an allowance for credit losses ("ACL") has been recorded										Change in unrealized losses on fixed maturities for which an allowance for credit losses ("ACL") has been recorded	3		—		(3)		—

Change in net gain on cash flow hedging instruments		25		(5)		24		—
Change in net gain (loss) on cash flow hedging instruments										Change in net gain (loss) on cash flow hedging instruments	(17)		25		(9)		24
Change in foreign currency translation adjustments	Change in foreign currency translation adjustments	(8)		2		(8)		3		Change in foreign currency translation adjustments	3		(8)		5		(8)
Changes in pension and other postretirement plan adjustments		12		14		24		27
Change in liability for future policy benefits adjustments										Change in liability for future policy benefits adjustments	5		29		(3)		72
Change in pension and other postretirement plan adjustments										Change in pension and other postretirement plan adjustments	5		12		10		24
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	(1,563)		306		(3,434)		(600)		Other comprehensive income (loss), net of tax	(270)		(1,539)		317		(3,377)
Comprehensive income (loss)	Comprehensive income (loss)	$	(1,121)	$	1,211	$	(2,547)	$	554	Comprehensive income (loss)	$	277	$	(1,095)	$	1,399	$	(2,490)


(in millions, except for share and per share data)	(in millions, except for share and per share data)	June 30, 2022		December 31, 2021		(in millions, except for share and per share data)	June 30, 2023		December 31, 2022
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Investments:	Investments:					Investments:
Fixed maturities, available-for-sale ("AFS"), at fair value (amortized cost of $40,258 and $40,788, and allowance for credit losses ("ACL") of $13 and $1)		$	37,887	$	42,847
Fixed maturities, AFS, at fair value (amortized cost of $40,411 and $39,533, and ACL of $18 and $12)						Fixed maturities, AFS, at fair value (amortized cost of $40,411 and $39,533, and ACL of $18 and $12)	$	37,497	$	36,231
Fixed maturities, at fair value using the fair value option ("FVO")	Fixed maturities, at fair value using the fair value option ("FVO")	342		160		Fixed maturities, at fair value using the fair value option ("FVO")	320		333
Equity securities, at fair value	Equity securities, at fair value	1,728		2,094		Equity securities, at fair value	895		1,801
Mortgage loans (net of ACL of $36 and $29)		5,852		5,383
Mortgage loans (net of ACL of $41 and $36)						Mortgage loans (net of ACL of $41 and $36)	6,020		6,000
Limited partnerships and other alternative investments	Limited partnerships and other alternative investments	3,856		3,353		Limited partnerships and other alternative investments	4,527		4,177
Other investments	Other investments	203		215		Other investments	173		159
Short-term investments	Short-term investments	2,524		3,697		Short-term investments	3,236		3,859
Total investments	Total investments	52,392		57,749		Total investments	52,668		52,560
Cash	Cash	258		205		Cash	150		229
Restricted cash	Restricted cash	90		132		Restricted cash	72		115
Premiums receivable and agents' balances (net of ACL of $107 and $105)		4,996		4,445
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $105 and $99)		6,726		6,523
Premiums receivable and agents' balances (net of ACL of $119 and $109)						Premiums receivable and agents' balances (net of ACL of $119 and $109)	5,578		4,949
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $110 and $105)						Reinsurance recoverables (net of allowance for uncollectible reinsurance of $110 and $105)	6,912		6,964
Deferred policy acquisition costs	Deferred policy acquisition costs	975		881		Deferred policy acquisition costs	1,096		998
Deferred income taxes, net	Deferred income taxes, net	1,191		270		Deferred income taxes, net	1,342		1,437
Goodwill	Goodwill	1,911		1,911		Goodwill	1,911		1,911
Property and equipment, net	Property and equipment, net	970		1,027		Property and equipment, net	884		927
Other intangible assets, net	Other intangible assets, net	813		858		Other intangible assets, net	743		778
Other assets	Other assets	2,080		2,577		Other assets	2,539		2,140

Total assets	Total assets	$	72,402	$	76,578	Total assets	$	73,895	$	73,008
Liabilities	Liabilities					Liabilities
Unpaid losses and loss adjustment expenses	Unpaid losses and loss adjustment expenses	$	40,032	$	39,659	Unpaid losses and loss adjustment expenses	$	41,219	$	41,243
Reserve for future policy benefits	Reserve for future policy benefits	576		596		Reserve for future policy benefits	489		502
Other policyholder funds and benefits payable	Other policyholder funds and benefits payable	664		687		Other policyholder funds and benefits payable	647		658
Unearned premiums	Unearned premiums	7,838		7,194		Unearned premiums	8,589		7,815

Long-term debt	Long-term debt	4,355		4,944		Long-term debt	4,360		4,357
Other liabilities	Other liabilities	4,711		5,655		Other liabilities	4,439		4,757

Total liabilities	Total liabilities	58,176		58,735		Total liabilities	59,743		59,332
Commitments and Contingencies (Note 13)
Commitments and Contingencies (Note 14)						Commitments and Contingencies (Note 14)
Stockholders’ Equity	Stockholders’ Equity					Stockholders’ Equity
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2022 and December 31, 2021, aggregate liquidation preference of $345		334		334
Common stock, $0.01 par value —1,500,000,000 shares authorized, 366,960,228 shares issued at June 30, 2022 and December 31, 2021		4		4
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2023 and December 31, 2022, aggregate liquidation preference of $345						Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2023 and December 31, 2022, aggregate liquidation preference of $345	334		334
Common stock, $0.01 par value —1,500,000,000 shares authorized, 344,960,228 shares issued at June 30, 2023 and December 31, 2022						Common stock, $0.01 par value —1,500,000,000 shares authorized, 344,960,228 shares issued at June 30, 2023 and December 31, 2022	3		3
Additional paid-in capital	Additional paid-in capital	3,264		3,309		Additional paid-in capital	1,864		1,895
Retained earnings	Retained earnings	16,388		15,764		Retained earnings	17,865		17,058
Treasury stock, at cost 42,215,668 and 32,034,244 shares		(2,502)		(1,740)
Accumulated other comprehensive income (loss) ("AOCI") , net of tax		(3,262)		172
Treasury stock, at cost 37,889,534 and 29,848,980 shares						Treasury stock, at cost 37,889,534 and 29,848,980 shares	(2,390)		(1,773)
Accumulated other comprehensive income (loss) ("AOCI"), net of tax						Accumulated other comprehensive income (loss) ("AOCI"), net of tax	(3,524)		(3,841)
Total stockholders’ equity	Total stockholders’ equity	14,226		17,843		Total stockholders’ equity	14,152		13,676
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	72,402	$	76,578	Total liabilities and stockholders’ equity	$	73,895	$	73,008


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Item	Item	Description	Page	Item	Description	Page
		Part I			PART I. FINANCIAL INFORMATION
1.	1.	FINANCIAL STATEMENTS		1.	FINANCIAL STATEMENTS
					REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	6
		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	6		CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - FOR THE THREE AND S IX MONTHS ENDED JUNE 3 0 , 2023 AND 2022	7
		CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - FOR THE THREE AND SIX MONTHS ENDED J UNE 3 0 , 2022 AND 2021	7		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - FOR THE THREE AND SIX MONTHS ENDED JUNE 30 , 2023 AND 2022	8
		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - FOR THE THREE AND SIX MONTHS ENDED JUNE 3 0 , 2022 AND 2021	8		CONDENSED CONSOLIDATED BALANCE SHEETS - AS OF JUNE 30 , 2023 AND DECEMBER 31, 2022	9
		CONDENSED CONSOLIDATED BALANCE SHEETS - AS OF JUNE 3 0 , 2022 AND DECEMBER 31, 2021	9		CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - FOR THE THREE AND SIX MONTHS ENDED JUNE 30 , 2023 AND 2022	10
		CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - FOR THE THREE AND SIX MONTHS ENDED JUNE 3 0 , 2022 AND 2021	10		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - FOR THE SIX MONTHS ENDED JUNE 30 , 2023 AND 2022	11
		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - FOR THE SIX MONTHS ENDED JUNE 3 0 , 2022 AND 2021	11		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	12
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	12		NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	12
		NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	12		NOTE 2 - EARNINGS PER COMMON SHARE	15
		NOTE 2 - EARNINGS PER COMMON SHARE	13		NOTE 3 - SEGMENT INFORMATION	15
		NOTE 3 - SEGMENT INFORMATION	13		NOTE 4 - FAIR VALUE MEASUREMENTS	17
		NOTE 4 - FAIR VALUE MEASUREMENTS	15		NOTE 5 - INVESTMENTS	26
		NOTE 5 - INVESTMENTS	24		NOTE 6 - DERIVATIVES	32
		NOTE 6 - DERIVATIVES	30		NOTE 7 - PREMIUMS RECEIVABLE AND AGENTS' BALANCES	37
		NOTE 7 - PREMIUMS RECEIVABLE AND AGENTS' BALANCES	35		NOTE 8 - REINSURANCE	38
		NOTE 8 - REINSURANCE	36		NOTE 9 - RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES	40
		NOTE 9 - RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES	39		NOTE 10 - RESERVE FOR FUTURE POLICY BENEFITS	43
		NOTE 10 - RESERVE FOR FUTURE POLICY BENEFITS	43		NOTE 11 - OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE	44
		NOTE 11 - DEBT	43		NOTE 12 - INCOME TAXES	45
		NOTE 12 - INCOME TAXES	44		NOTE 13 - DEBT	45
		NOTE 13 - COMMITMENTS AND CONTINGENCIES	44		NOTE 14 - COMMITMENTS AND CONTINGENCIES	46
		NOTE 14 - EQUITY	47		NOTE 15 - EQUITY	48
		NOTE 15 - CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	47		NOTE 16 - CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	48
		NOTE 16 - EMPLOYEE BENEFIT PLANS	49		NOTE 17 - EMPLOYEE BENEFIT PLANS	51
		NOTE 17 - RESTRUCTURING AND OTHER COSTS	50		NOTE 18 - RESTRUCTURING AND OTHER COSTS	51
2.	2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	51	2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	53
3.	3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	[a]	3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	[a]
4.	4.	CONTROLS AND PROCEDURES	106	4.	CONTROLS AND PROCEDURES	107
		PART II. OTHER INFORMATION			PART II. OTHER INFORMATION
1.	1.	LEGAL PROCEEDINGS	107	1.	LEGAL PROCEEDINGS	108
1A.	1A.	RISK FACTORS	107	1A.	RISK FACTORS	108
2.	2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	107	2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	108
5..				5..	OTHER INFORMATION	108
6.	6.	EXHIBITS	107	6.	EXHIBITS	109
		EXHIBITS INDEX	108
		SIGNATURE	109		SIGNATURE	110


Impact of Adoption on Reserve for Future Policy Benefits
	Payout Annuities		Life Conversions		Paid-up Life		DPL		Other		Total
Reserve for Future Policy Benefits as of December 31, 2020	$	189	$	94	$	267	$	—	$	88	$	638
Adjustments:
Removal of shadow reserve [1]	(26)		—		—		—		—		(26)
Update cash flow assumptions and establish DPL	(16)		—		(2)		18		—		—
Effect of measurement at current single-A rate [1]	59		21		29		—		2		111
Total Adjustments	17		21		27		18		2		85
Reserve for Future Policy Benefits as of January 1, 2021	206		115		294		18		90		723
Change in reserves due to changes in the single-A rate	(11)		(7)		(15)		—		—		(33)
Other changes in reserves	(7)		(14)		(17)		2		(8)		(44)
Reserve for Future Policy Benefits as of December 31, 2021	$	188	$	94	$	262	$	20	$	82	$	646


Impact of Adoption on Condensed Consolidated Balance Sheets
	As of December 31, 2022						As of December 31, 2021						As of January 1, 2021
	As previously reported		Effect of change		As currently reported		As previously reported		Effect of change		As currently reported		Balance prior to adoption		Effect of change		As currently reported
Reinsurance recoverables	$	6,966	$	(2)	$	6,964	$	6,523	$	1	$	6,524	$	6,011	$	2	$	6,013
Deferred income taxes, net	$	1,449	$	(12)	$	1,437	$	270	$	11	$	281	$	46	$	18	$	64
Reserve for future policy benefits	$	561	$	(59)	$	502	$	596	$	50	$	646	$	638	$	85	$	723
Retained earnings	$	17,048	$	10	$	17,058	$	15,764	$	6	$	15,770	$	13,918	$	—	$	13,918
AOCI	$	(3,876)	$	35	$	(3,841)	$	172	$	(44)	$	128	$	1,170	$	(65)	$	1,105
Total stockholders' equity	$	13,631	$	45	$	13,676	$	17,843	$	(38)	$	17,805	$	18,556	$	(65)	$	18,491


Impact of Adoption on Condensed Consolidated Statements of Operations
	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	As previously reported		Effect of change		As currently reported		As previously reported		Effect of change		As currently reported
Benefits, losses and loss adjustment expenses	$	3,076	$	(2)	$	3,074	$	6,194	$	—	$	6,194
Income before income taxes	$	552	$	2	$	554	$	1,095	$	—	$	1,095
Income tax expense	$	110	$	—	$	110	$	208	$	—	$	208
Net income	$	442	$	2	$	444	$	887	$	—	$	887
Net income available to common stockholders	$	437	$	2	$	439	$	877	$	—	$	877
Net income available to common stockholders per common share
Basic	$	1.33	$	0.01	$	1.34	$	2.66	$	—	$	2.66
Diluted	$	1.32	$	—	$	1.32	$	2.62	$	—	$	2.62


Computation of Basic and Diluted Earnings per Common Share	Computation of Basic and Diluted Earnings per Common Share									Computation of Basic and Diluted Earnings per Common Share
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except for per share data)	(In millions, except for per share data)	2022		2021		2022		2021		(In millions, except for per share data)	2023		2022		2023		2022
Earnings	Earnings									Earnings

Net income	Net income	$	442	$	905	$	887	$	1,154	Net income	$	547	$	444	$	1,082	$	887
Less: Preferred stock dividends	Less: Preferred stock dividends	5		5		10		10		Less: Preferred stock dividends	5		5		10		10

Net income available to common stockholders	Net income available to common stockholders	$	437	$	900	$	877	$	1,144	Net income available to common stockholders	$	542	$	439	$	1,072	$	877
Shares	Shares									Shares
Weighted average common shares outstanding, basic	Weighted average common shares outstanding, basic	327.4		353.7		329.9		356.0		Weighted average common shares outstanding, basic	309.4		327.4		311.7		329.9

Dilutive effect of stock-based awards under compensation plans	Dilutive effect of stock-based awards under compensation plans	4.4		4.8		4.7		4.4		Dilutive effect of stock-based awards under compensation plans	3.9		4.4		4.3		4.7
Weighted average common shares outstanding and dilutive potential common shares	Weighted average common shares outstanding and dilutive potential common shares	331.8		358.5		334.6		360.4		Weighted average common shares outstanding and dilutive potential common shares	313.3		331.8		316.0		334.6
Net income available to common stockholders per common share	Net income available to common stockholders per common share									Net income available to common stockholders per common share

Basic	Basic	$	1.33	$	2.54	$	2.66	$	3.21	Basic	$	1.75	$	1.34	$	3.44	$	2.66

Diluted	Diluted	$	1.32	$	2.51	$	2.62	$	3.17	Diluted	$	1.73	$	1.32	$	3.39	$	2.62


Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2022
Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2023										Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2023
		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis	Assets accounted for at fair value on a recurring basis									Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS	Fixed maturities, AFS									Fixed maturities, AFS
Asset backed securities ("ABS")	Asset backed securities ("ABS")	$	1,342	$	—	$	1,342	$	—	Asset backed securities ("ABS")	$	2,685	$	—	$	2,685	$	—
Collateralized loan obligations ("CLO")	Collateralized loan obligations ("CLO")	2,890		—		2,726		164		Collateralized loan obligations ("CLO")	2,981		—		2,896		85
Commercial mortgage-backed securities ("CMBS")	Commercial mortgage-backed securities ("CMBS")	3,398		—		3,174		224		Commercial mortgage-backed securities ("CMBS")	3,227		—		2,989		238
Corporate	Corporate	16,151		—		14,542		1,609		Corporate	16,096		—		14,474		1,622
Foreign government/government agencies	Foreign government/government agencies	661		—		656		5		Foreign government/government agencies	539		—		539		—
Municipal	Municipal	7,067		—		7,067		—		Municipal	6,226		—		6,226		—
Residential mortgage-backed securities ("RMBS")	Residential mortgage-backed securities ("RMBS")	3,929		—		3,799		130		Residential mortgage-backed securities ("RMBS")	3,729		—		3,660		69
U.S. Treasuries	U.S. Treasuries	2,449		—		2,449		—		U.S. Treasuries	2,014		—		2,014		—
Total fixed maturities		37,887		—		35,755		2,132
Total fixed maturities, AFS										Total fixed maturities, AFS	37,497		—		35,483		2,014
Fixed maturities, FVO	Fixed maturities, FVO	342		—		149		193		Fixed maturities, FVO	320		—		157		163
Equity securities, at fair value	Equity securities, at fair value	1,728		1,203		465		60		Equity securities, at fair value	895		357		479		59
Derivative assets	Derivative assets									Derivative assets
Credit derivatives		3		—		3		—

Foreign exchange derivatives	Foreign exchange derivatives	29		—		29		—		Foreign exchange derivatives	5		—		5		—

Interest rate derivatives										Interest rate derivatives	1		—		1		—

Total derivative assets [1]	Total derivative assets [1]	32		—		32		—		Total derivative assets [1]	6		—		6		—
Short-term investments	Short-term investments	2,524		754		1,710		60		Short-term investments	3,236		1,749		1,301		186
Total assets accounted for at fair value on a recurring basis	Total assets accounted for at fair value on a recurring basis	$	42,513	$	1,957	$	38,111	$	2,445	Total assets accounted for at fair value on a recurring basis	$	41,954	$	2,106	$	37,426	$	2,422
Liabilities accounted for at fair value on a recurring basis	Liabilities accounted for at fair value on a recurring basis									Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	Derivative liabilities									Derivative liabilities
Credit derivatives	Credit derivatives	$	(3)	$	—	$	(3)	$	—	Credit derivatives	$	(71)	$	—	$	(71)	$	—

Foreign exchange derivatives	Foreign exchange derivatives	25		—		25		—		Foreign exchange derivatives	33		—		33		—
Interest rate derivatives	Interest rate derivatives	(20)		—		(20)		—		Interest rate derivatives	(3)		—		(3)		—

Total derivative liabilities [2]	Total derivative liabilities [2]	2		—		2		—		Total derivative liabilities [2]	(41)		—		(41)		—

Total liabilities accounted for at fair value on a recurring basis	Total liabilities accounted for at fair value on a recurring basis	$	2	$	—	$	2	$	—	Total liabilities accounted for at fair value on a recurring basis	$	(41)	$	—	$	(41)	$	—


Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives
Level 2 Primary Observable Inputs		Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CLO, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLO, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S. Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements		• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active		• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short-term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates		• Independent broker quotes
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves		• Not applicable
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves		• ~~Independent broker quotes~~Not applicable
Interest rate derivatives
	• Swap yield curve		• Not applicable


Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2022

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2023																					Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2023
					Total realized/unrealized gains (losses)																				Total realized/unrealized gains (losses)
			Fair value as of March 31, 2022		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of June 30, 2022				Fair value as of March 31, 2023		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of June 30, 2023
Assets	Assets																				Assets
Fixed maturities, AFS	Fixed maturities, AFS																				Fixed maturities, AFS
		ABS	$	19	$	—	$	—	$	—	$	—	$	—	$	—	$	(19)	$	—		ABS	$	36	$	—	$	—	$	—	$	—	$	—	$	—	$	(36)	$	—
		CLO	214		—		(1)		28		(23)		—		—		(54)		164			CLO	151		—		—		—		(26)		—		—		(40)		85
		CMBS	236		—		(10)		—		(2)		—		—		—		224			CMBS	231		(2)		7		2		(1)		(5)		6		—		238
		Corporate	1,515		1		(99)		264		(62)		(14)		21		(17)		1,609			Corporate	1,643		(2)		(3)		51		(30)		(2)		4		(39)		1,622
		Foreign Govt./Govt. Agencies	4		(1)		(1)		—		—		—		3		—		5

		RMBS	301		—		(4)		—		(30)		—		—		(137)		130			RMBS	57		—		—		19		(7)		—		—		—		69
Total fixed maturities, AFS	Total fixed maturities, AFS		2,289		—		(115)		292		(117)		(14)		24		(227)		2,132		Total fixed maturities, AFS		2,118		(4)		4		72		(64)		(7)		10		(115)		2,014
Fixed maturities, FVO	Fixed maturities, FVO		174		(13)		—		35		(3)		—		—		—		193		Fixed maturities, FVO		172		(5)		—		—		(4)		—		—		—		163
Equity securities, at fair value	Equity securities, at fair value		57		2		—		2		(1)		—		—		—		60		Equity securities, at fair value		60		(1)		—		—		—		—		—		—		59
Short-term investments	Short-term investments		32		—		—		32		(4)		—		—		—		60		Short-term investments		187		—		—		3		(4)		—		—		—		186
Total Assets	Total Assets		$	2,552	$	(11)	$	(115)	$	361	$	(125)	$	(14)	$	24	$	(227)	$	2,445	Total Assets		$	2,537	$	(10)	$	4	$	75	$	(72)	$	(7)	$	10	$	(115)	$	2,422


~~Table of Contents~~						~~Note 4 - Fair Value Measurements~~



Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2021
				Total realized/unrealized gains (losses)
		Fair value as of March 31, 2021		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of June 30, 2021
Assets
Fixed Maturities, AFS
	ABS	$	6	$	—	$	—	$	13	$	—	$	—	$	—	$	(5)	$	14
	CLO	426		—		—		119		(30)		—		—		(140)		375
	CMBS	61		—		2		38		(1)		—		5		(19)		86
	Corporate	944		1		2		176		(69)		(37)		124		—		1,141


	RMBS	481		—		(1)		29		(57)		(10)		—		(140)		302
Total Fixed Maturities, AFS		1,918		1		3		375		(157)		(47)		129		(304)		1,918
Equity Securities, at fair value		70		2		—		3		(1)		—		—		—		74
Short-term investments		16		—		—		2		—		—		—		—		18
Total Assets		$	2,004	$	3	$	3	$	380	$	(158)	$	(47)	$	129	$	(304)	$	2,010


Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2021
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2021		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of June 30, 2021
Assets
Fixed Maturities, AFS
	ABS	$	—	$	—	$	—	$	19	$	—	$	—	$	—	$	(5)	$	14
	CLO	360		—		—		259		(45)		—		—		(199)		375
	CMBS	77		—		2		39		(3)		—		5		(34)		86
	Corporate	881		6		(11)		249		(76)		(44)		172		(36)		1,141
	Foreign Govt./Govt. Agencies	6		—		—		—		—		(6)		—		—		—

	RMBS	381		—		(2)		180		(103)		(14)		—		(140)		302
Total Fixed Maturities, AFS		1,705		6		(11)		746		(227)		(64)		177		(414)		1,918
Equity Securities, at fair value		70		2		—		3		(1)		—		—		—		74
Short-term investments		30		—		—		2		(14)		—		—		—		18
Total Assets		$	1,805	$	8	$	(11)	$	751	$	(242)	$	(64)	$	177	$	(414)	$	2,010


Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2022
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2022		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of June 30, 2022
Assets
Fixed Maturities, AFS
	ABS	$	—	$	—	$	—	$	19	$	—	$	—	$	—	$	(19)	$	—
	CLO	257		—		(2)		82		(40)		—		—		(133)		164
	CMBS	196		—		(15)		46		(3)		—		—		—		224
	Corporate	1,618		(1)		(158)		323		(132)		(21)		21		(41)		1,609
	Foreign Govt./Govt. Agencies	5		(1)		(1)		—		—		(1)		3		—		5

	RMBS	328		—		(10)		137		(64)		—		—		(261)		130
Total Fixed Maturities, AFS		2,404		(2)		(186)		607		(239)		(22)		24		(454)		2,132
Fixed maturities, FVO		160		(11)		—		55		(11)		—		—		—		193
Equity Securities, at fair value		64		9		—		2		(15)		—		—		—		60
Short-term investments		80		—		—		36		(6)		—		—		(50)		60
Total Assets		$	2,708	$	(4)	$	(186)	$	700	$	(271)	$	(22)	$	24	$	(504)	$	2,445


Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period	Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period																		Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period
			Three Months Ended June 30,								Six Months Ended June 30,										Three Months Ended June 30,								Six Months Ended June 30,
			2022		2021		2022		2021		2022		2021		2022		2021				2023		2022		2023		2022		2023		2022		2023		2022
			Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]				Changes in Unrealized Gain/(Loss) included in OCI [3]				Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]				Changes in Unrealized Gain/(Loss) included in OCI [3]						Changes in Unrealized Gains (Losses) included in Net Income [1] [2]				Changes in Unrealized Gains (Losses) included in OCI [3]				Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]				Changes in Unrealized Gain/(Loss) included in OCI [3]
Assets	Assets																		Assets
Fixed Maturities, AFS	Fixed Maturities, AFS																		Fixed Maturities, AFS

		CLO	$	—	$	—	$	(1)	$	—	$	—	$	—	$	(2)	$	—		CLO	$	—	$	—	$	—	$	(1)	$	—	$	—	$	—	$	(2)
		CMBS	—		—		(10)		2		—		—		(15)		2			CMBS	—		—		6		(10)		—		—		2		(15)
		Corporate	1		—		(99)		2		(1)		—		(157)		(8)			Corporate	(2)		1		(3)		(99)		(2)		(1)		28		(157)
		Foreign Govt./Govt. Agencies	(1)		—		(1)		—		(1)		—		(1)		—			Foreign Govt./Govt. Agencies	—		(1)		—		(1)		—		(1)		—		(1)

		RMBS	—		—		(4)		(1)		—		—		(10)		(2)			RMBS	—		—		—		(4)		—		—		—		(10)
Total Fixed Maturities, AFS	Total Fixed Maturities, AFS		—		—		(115)		3		(2)		—		(185)		(8)		Total Fixed Maturities, AFS		(2)		—		3		(115)		(2)		(2)		30		(185)
Fixed maturities, FVO	Fixed maturities, FVO		(13)		—		—		—		(11)		—		—		—		Fixed maturities, FVO		(5)		(13)		—		—		(13)		(11)		—		—
Equity Securities, at fair value	Equity Securities, at fair value		1		2		—		—		1		2		—		—		Equity Securities, at fair value		(1)		1		—		—		(1)		1		—		—

Total Assets	Total Assets		$	(12)	$	2	$	(115)	$	3	$	(12)	$	2	$	(185)	$	(8)	Total Assets		$	(8)	$	(12)	$	3	$	(115)	$	(16)	$	(12)	$	30	$	(185)


Financial Assets and Liabilities Not Carried at Fair Value	Financial Assets and Liabilities Not Carried at Fair Value											Financial Assets and Liabilities Not Carried at Fair Value
		June 30, 2022					December 31, 2021						June 30, 2023					December 31, 2022
		Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value		Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value			Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value		Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value
Assets	Assets											Assets
Mortgage loans	Mortgage loans	Level 3	$	5,852	$	5,506	Level 3	$	5,383	$	5,576	Mortgage loans	Level 3	$	6,020	$	5,415	Level 3	$	6,000	$	5,362
Liabilities	Liabilities											Liabilities
Other policyholder funds and benefits payable	Other policyholder funds and benefits payable	Level 3	$	664	$	665	Level 3	$	687	$	689	Other policyholder funds and benefits payable	Level 3	$	647	$	647	Level 3	$	658	$	658
Senior notes [2]	Senior notes [2]	Level 2	$	3,856	$	3,630	Level 2	$	3,854	$	4,725	Senior notes [2]	Level 2	$	3,861	$	3,377	Level 2	$	3,858	$	3,339
Junior subordinated debentures [2]	Junior subordinated debentures [2]	Level 2	$	499	$	395	Level 2	$	1,090	$	1,086	Junior subordinated debentures [2]	Level 2	$	499	$	415	Level 2	$	499	$	419


Net Realized Gains (Losses)	Net Realized Gains (Losses)									Net Realized Gains (Losses)
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
(Before tax)	(Before tax)	2022		2021		2022		2021		(Before tax)	2023		2022		2023		2022
Gross gains on sales of fixed maturities	Gross gains on sales of fixed maturities	$	15	$	68	$	38	$	99	Gross gains on sales of fixed maturities	$	3	$	15	$	20	$	38
Gross losses on sales of fixed maturities	Gross losses on sales of fixed maturities	(80)		(15)		(175)		(46)		Gross losses on sales of fixed maturities	(21)		(80)		(60)		(175)
Equity securities [1]	Equity securities [1]									Equity securities [1]
Net realized gains (losses) on sales of equity securities	Net realized gains (losses) on sales of equity securities	5		2		45		8		Net realized gains (losses) on sales of equity securities	24		5		74		45
Change in net unrealized gains (losses) of equity securities	Change in net unrealized gains (losses) of equity securities	(267)		86		(414)		123		Change in net unrealized gains (losses) of equity securities	(14)		(267)		(29)		(414)
Net realized and unrealized gains (losses) on equity securities	Net realized and unrealized gains (losses) on equity securities	(262)		88		(369)		131		Net realized and unrealized gains (losses) on equity securities	10		(262)		45		(369)
Net credit losses on fixed maturities, AFS	Net credit losses on fixed maturities, AFS	—		—		(12)		4		Net credit losses on fixed maturities, AFS	(3)		—		(8)		(12)
Change in ACL on mortgage loans	Change in ACL on mortgage loans	(5)		10		(7)		14		Change in ACL on mortgage loans	(5)		(5)		(5)		(7)
Intent-to-sell impairments	Intent-to-sell impairments	—		—		(3)		—		Intent-to-sell impairments	—		—		—		(3)
Other, net [2]	Other, net [2]	(6)		(4)		45		25		Other, net [2]	(48)		(6)		(63)		45

Net realized gains (losses)	Net realized gains (losses)	$	(338)	$	147	$	(483)	$	227	Net realized gains (losses)	$	(64)	$	(338)	$	(71)	$	(483)


ACL on Fixed Maturities, AFS by Type	ACL on Fixed Maturities, AFS by Type											ACL on Fixed Maturities, AFS by Type
		Three Months Ended June 30,												Three Months Ended June 30,
		2022								2021					2023		2022
(Before tax)	(Before tax)	Corporate		Foreign govt./govt. agencies		CMBS		Total		Corporate		Total				(Before tax)		Corporate		CMBS		Total		Corporate		Foreign govt./govt. agencies		CMBS		Total
Balance as of beginning of period	Balance as of beginning of period	$	9	$	3	$	1	$	13	$	19	$	19			Balance as of beginning of period		$	6	$	11	$	17	$	9	$	3	$	1	$	13
Credit losses on fixed maturities where an allowance was not previously recorded																Credit losses on fixed maturities where an allowance was not previously recorded		2		—		2		—		—		—		—
Reduction due to sales																Reduction due to sales		(2)		—		(2)		—		—		—		—

Reduction due to sales		—		—		—		—		(15)		(15)
Net increases (decreases) on fixed maturities where an allowance was previously recorded	Net increases (decreases) on fixed maturities where an allowance was previously recorded	(1)		1		—		—		—		—				Net increases (decreases) on fixed maturities where an allowance was previously recorded		—		1		1		(1)		1		—		—

Balance as of end of period	Balance as of end of period	$	8	$	4	$	1	$	13	$	4	$	4			Balance as of end of period		$	6	$	12	$	18	$	8	$	4	$	1	$	13


Fixed Maturities, AFS, by Type
	June 30, 2022										December 31, 2021
	Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
ABS	$	1,382	$	—	$	1	$	(41)	$	1,342		$	1,125	$	—	$	13	$	(3)	$	1,135
CLO	2,999		—		2		(111)		2,890			3,019		—		8		(2)		3,025
CMBS	3,587		(1)		26		(214)		3,398			3,955		—		179		(15)		4,119
Corporate	17,431		(8)		47		(1,319)		16,151			17,744		(1)		1,038		(74)		18,707
Foreign govt./govt. agencies	715		(4)		2		(52)		661			883		—		33		(6)		910
Municipal	7,332		—		124		(389)		7,067			7,473		—		787		(3)		8,257
RMBS	4,230		—		5		(306)		3,929			3,610		—		60		(27)		3,643
U.S. Treasuries	2,582		—		7		(140)		2,449			2,979		—		86		(14)		3,051
Total fixed maturities, AFS	$	40,258	$	(13)	$	214	$	(2,572)	$	37,887		$	40,788	$	(1)	$	2,204	$	(144)	$	42,847


Fixed Maturities, AFS, by Contractual Maturity Year
	June 30, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,626	$	1,623	$	1,400	$	1,419
Over one year through five years	8,326		8,044		8,615		8,894
Over five years through ten years	7,626		6,958		8,303		8,633
Over ten years	10,482		9,703		10,761		11,979
Subtotal	28,060		26,328		29,079		30,925
Mortgage-backed and asset-backed securities	12,198		11,559		11,709		11,922
Total fixed maturities, AFS	$	40,258	$	37,887	$	40,788	$	42,847


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of June 30, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	1,117	$	(40)	$	26	$	(1)	$	1,143	$	(41)
CLO	2,351		(88)		527		(23)		2,878		(111)
CMBS	3,026		(198)		95		(16)		3,121		(214)
Corporate	13,163		(1,196)		650		(123)		13,813		(1,319)
Foreign govt./govt. agencies	515		(42)		93		(10)		608		(52)
Municipal	4,553		(385)		23		(4)		4,576		(389)
RMBS	3,366		(267)		295		(39)		3,661		(306)
U.S. Treasuries	2,299		(136)		38		(4)		2,337		(140)
Total fixed maturities, AFS in an unrealized loss position	$	30,390	$	(2,352)	$	1,747	$	(220)	$	32,137	$	(2,572)


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2021
	2021			2020			2019			2018			2017			2016 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
65% - 80%	$	7	2.37x	$	50	2.63x	$	91	1.57x	$	100	1.00x	$	45	1.37x	$	97	1.80x	$	390	1.61x
Less than 65%	1,481		2.70x	645		2.78x	722		2.78x	472		2.23x	417		1.91x	1,285		2.45x	5,022		2.55x
Total mortgage loans	$	1,488	2.70x	$	695	2.77x	$	813	2.64x	$	572	2.02x	$	462	1.86x	$	1,382	2.41x	$	5,412	2.48x


Mortgage Loans by Region	Mortgage Loans by Region									Mortgage Loans by Region
		June 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
		Amortized Cost		Percent of Total		Amortized Cost		Percent of Total			Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
East North Central	East North Central	$	313	5.3	%	$	284	5.2	%	East North Central	$	358	5.9	%	$	317	5.3	%

Middle Atlantic	Middle Atlantic	292		5.0	%	303		5.6	%	Middle Atlantic	253		4.2	%	316		5.2	%
Mountain	Mountain	708		12.0	%	450		8.3	%	Mountain	707		11.7	%	707		11.7	%
New England	New England	419		7.1	%	393		7.3	%	New England	353		5.8	%	395		6.5	%
Pacific	Pacific	1,267		21.5	%	1,245		23.0	%	Pacific	1,304		21.5	%	1,299		21.5	%
South Atlantic	South Atlantic	1,621		27.5	%	1,556		28.8	%	South Atlantic	1,776		29.3	%	1,670		27.7	%
West North Central	West North Central	98		1.7	%	85		1.6	%	West North Central	116		1.9	%	105		1.7	%
West South Central	West South Central	415		7.1	%	424		7.8	%	West South Central	448		7.4	%	421		7.0	%
Other [1]	Other [1]	755		12.8	%	672		12.4	%	Other [1]	746		12.3	%	806		13.4	%
Total mortgage loans	Total mortgage loans	5,888		100.0	%	5,412		100.0	%	Total mortgage loans	6,061		100.0	%	6,036		100.0	%
ACL	ACL	(36)				(29)				ACL	(41)				(36)
Total mortgage loans, net of ACL	Total mortgage loans, net of ACL	$	5,852			$	5,383			Total mortgage loans, net of ACL	$	6,020			$	6,000


Mortgage Loans by Property Type	Mortgage Loans by Property Type									Mortgage Loans by Property Type
		June 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
		Amortized Cost		Percent of Total		Amortized Cost		Percent of Total			Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
Commercial	Commercial									Commercial

Industrial	Industrial	$	2,083	35.4	%	$	1,931	35.7	%	Industrial	$	2,282	37.7	%	$	2,217	36.7	%

Multifamily	Multifamily	2,167		36.8	%	1,833		33.9	%	Multifamily	2,243		37.0	%	2,247		37.2	%
Office	Office	611		10.4	%	627		11.6	%	Office	583		9.6	%	585		9.7	%
Retail [1]	Retail [1]	949		16.1	%	951		17.6	%	Retail [1]	953		15.7	%	947		15.7	%
Single Family		38		0.6	%	30		0.5	%

Other	Other	40		0.7	%	40		0.7	%	Other	—		—	%	40		0.7	%
Total mortgage loans	Total mortgage loans	5,888		100.0	%	5,412		100.0	%	Total mortgage loans	6,061		100.0	%	6,036		100.0	%
ACL	ACL	(36)				(29)				ACL	(41)				(36)
Total mortgage loans, net of ACL	Total mortgage loans, net of ACL	$	5,852			$	5,383			Total mortgage loans, net of ACL	$	6,020			$	6,000


Derivative Balance Sheet Presentation
	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
Hedge Designation/ Derivative Type	Jun 30, 2022		Dec. 31, 2021		Jun 30, 2022		Dec. 31, 2021		Jun 30, 2022		Dec. 31, 2021		Jun 30, 2022		Dec. 31, 2021
Cash flow hedges
Interest rate swaps	$	2,155	$	2,340	$	(1)	$	—	$	2	$	—	$	(3)	$	—
Foreign currency swaps	524		437		53		6		53		11		—		(5)
Total cash flow hedges	2,679		2,777		52		6		55		11		(3)		(5)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	6,969		7,567		(19)		(46)		10		3		(29)		(49)
Foreign exchange contracts
Foreign currency swaps and forwards	641		558		1		—		1		—		—		—
Credit contracts
Credit derivatives that purchase credit protection	5		112		—		(2)		—		—		—		(2)

Credit derivatives in offsetting positions	209		210		—		—		4		3		(4)		(3)


Total non-qualifying strategies	7,824		8,447		(18)		(48)		15		6		(33)		(54)
Total cash flow hedges and non-qualifying strategies	$	10,503	$	11,224	$	34	$	(42)	$	70	$	17	$	(36)	$	(59)
Balance Sheet Location
Fixed maturities, available-for-sale	$	515	$	413	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	1,184		1,452		32		7		35		10		(3)		(3)
Other liabilities	8,804		9,359		2		(49)		35		7		(33)		(56)
Total derivatives	$	10,503	$	11,224	$	34	$	(42)	$	70	$	17	$	(36)	$	(59)


Offsetting Derivative Assets and Liabilities
	(i)		(ii)		(iii) = (i) - (ii)				(iv)		(v) = (iii) - (iv)
					Net Amounts Presented in the Statement of Financial Position				Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of June 30, 2022
Other investments	$	70	$	52	$	32	$	(14)	$	17	$	1
Other liabilities	$	(36)	$	(15)	$	2	$	(23)	$	(20)	$	(1)
As of December 31, 2021
Other investments	$	17	$	13	$	7	$	(3)	$	4	$	—
Other liabilities	$	(59)	$	(10)	$	(49)	$	—	$	(47)	$	(2)


Gain (Loss) Recognized in OCI
Gains (Losses) Recognized in OCI													Gains (Losses) Recognized in OCI
		Three Months Ended June 30,					Six Months Ended June 30,					Three Months Ended June 30,						Six Months Ended June 30,
			2022		2021			2022		2021				2023		2022			2023		2022
Interest rate swaps	Interest rate swaps		$	(3)	$	(4)		$	(5)	$	6		Interest rate swaps	$	(14)	$	(3)		$	(4)	$	(5)
Foreign currency swaps	Foreign currency swaps		41		7			50		11			Foreign currency swaps	(7)		41			(10)		50
Total	Total		$	38	$	3		$	45	$	17		Total	$	(21)	$	38		$	(14)	$	45


Gain (Loss) Reclassified from AOCI into Income

	Three months ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
	Net Investment Income		Interest Expense		Net Investment Income		Interest Expense		Net Investment Income		Interest Expense		Net Investment Income		Interest Expense
Interest rate swaps	$	5	$	(1)	$	10	$	(3)	$	14	$	(4)	$	20	$	(5)
Foreign currency swaps	2		—		1		—		4		—		2		—
Total	$	7	$	(1)	$	11	$	(3)	$	18	$	(4)	$	22	$	(5)

Total amounts presented on the Condensed Consolidated Statement of Operations	$	541	$	51	$	581	$	57	$	1,050	$	113	$	1,090	$	114


Gains (Losses) Reclassified from AOCI into Income

	Three months ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
	Net Investment Income		Interest Expense		Net Investment Income		Interest Expense		Net Investment Income		Interest Expense		Net Investment Income		Interest Expense
Interest rate swaps	$	(7)	$	4	$	5	$	(1)	$	(15)	$	7	$	14	$	(4)
Foreign currency swaps	3		—		2		—		5		—		4		—
Total	$	(4)	$	4	$	7	$	(1)	$	(10)	$	7	$	18	$	(4)

Total amounts presented on the Condensed Consolidated Statement of Operations	$	540	$	50	$	541	$	51	$	1,055	$	100	$	1,050	$	113


Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)	Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)									Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Foreign exchange contracts	Foreign exchange contracts									Foreign exchange contracts
Foreign currency forwards	Foreign currency forwards	$	4	$	—	$	5	$	—	Foreign currency forwards	$	—	$	4	$	—	$	5

Interest rate contracts	Interest rate contracts									Interest rate contracts
Interest rate swaps, swaptions, and futures	Interest rate swaps, swaptions, and futures	5		(32)		37		—		Interest rate swaps, swaptions, and futures	(3)		5		18		37
Credit contracts	Credit contracts									Credit contracts
Credit derivatives that purchase credit protection	Credit derivatives that purchase credit protection	5		—		5		—		Credit derivatives that purchase credit protection	(36)		5		(52)		5
Credit derivatives that assume credit risk		—		3		—		6

Commodity contracts	Commodity contracts									Commodity contracts
Commodity options	Commodity options	—		—		14		—		Commodity options	—		—		—		14
Total [1]	Total [1]	$	14	$	(29)	$	61	$	6	Total [1]	$	(39)	$	14	$	(34)	$	61

																									Credit Risk Assumed Derivatives by Type
							Underlying Referenced Credit Obligation(s) [1]												Underlying Referenced Credit Obligation(s) [1]
		Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]			Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of June 30, 2022
As of June 30, 2023													As of June 30, 2023

Basket credit default swaps [4]	Basket credit default swaps [4]												Basket credit default swaps [4]

Investment grade risk exposure	Investment grade risk exposure	$	100	$	(1)	6 years	CMBS Credit	AAA	$	100	$	1	Investment grade risk exposure	$	100	$	(1)	5 years	CMBS Credit	AAA	$	100	$	1
Below investment grade risk exposure	Below investment grade risk exposure	4		(3)		Less than 1 year	CMBS Credit	B-	4		3		Below investment grade risk exposure	3		(2)		Less than 1 year	CMBS Credit	CCC+	3		2
Total [5]	Total [5]	$	104	$	(4)				$	104	$	4	Total [5]	$	103	$	(3)				$	103	$	3
As of December 31, 2021

As of December 31, 2022													As of December 31, 2022

Basket credit default swaps [4]	Basket credit default swaps [4]												Basket credit default swaps [4]

Investment grade risk exposure	Investment grade risk exposure	$	101	$	—	6 years	CMBS Credit	AAA	$	101	$	—	Investment grade risk exposure	$	100	$	(1)	6 years	CMBS Credit	AAA	$	100	$	1
Below investment grade risk exposure	Below investment grade risk exposure	4		(2)		Less than 1 year	CMBS Credit	CCC	4		2		Below investment grade risk exposure	3		(2)		Less than 1 year	CMBS Credit	B-	3		2
Total [5]	Total [5]	$	105	$	(2)				$	105	$	2	Total [5]	$	103	$	(3)				$	103	$	3