The Hartford Financial Services Group, Inc. (HIG) 8-K Results of Operations and Financial Condition

INVESTOR FINANCIAL SUPPLEMENT

DECEMBER 31, 2007

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

As of January 21, 2008

	A.M. Best	Fitch	Standard & Poor’s	Moody’s
Insurance Financial Strength Ratings:
Hartford Fire Insurance Company	A+	AA	AA-	Aa3
Hartford Life Insurance Company	A+	AA	AA-	Aa3
Hartford Life and Accident Insurance Company	A+	AA	AA-	Aa3
Hartford Life and Annuity Insurance Company	A+	AA	AA-	Aa3
Hartford Life Insurance KK (Japan)	—	—	AA-	—
Hartford Life Limited (Ireland)	—	—	AA-	—
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt	a	A	A	A2
Commercial paper	AMB-1	F1	A-1	P-1
Hartford Life, Inc.:
Senior debt	a	A	A	A2
Hartford Life Insurance Company:
Short term rating	—	—	A-1+	P-1
Consumer notes	a+	AA-	AA-	A1

Address:
One Hartford Plaza
Hartford, CT 06155

Internet address:
http://www.thehartford.com

Contacts:
Kimberly Johnson
Senior Vice President
Investor Relations
Phone (860) 547-6781

JR (John) Reilly
Assistant Vice President
Investor Relations
Phone (860) 547-9140

Margaret Mann
Program Assistant
Investor Relations
Phone (860) 547-3800

TRANSFER AGENT
The Bank of New York
Shareholder Relations Department — 12E
P.O. Box 11258
Church Street Station
New York, NY 10286
1 (800) 254-2823

COMMON STOCK

Common stock of The Hartford Financial Services Group, Inc. is traded on the New York Stock Exchange under the symbol “HIG”.

This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

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

	Basis of Presentation	i, ii, iii
CONSOLIDATED	Consolidated Financial Results	C-1
	Operating Results by Segment	C-2
	Analysis of Operating Results by Segment	C-2a
	Consolidating Statements of Operations
	Three Months Ended December 31, 2007 and 2006	C-3
	Year Ended December 31, 2007 and 2006	C-4
	Consolidating Balance Sheets
	As of December 31, 2007 and December 31, 2006	C-5
	Capital Structure	C-6
	Accumulated Other Comprehensive Income (Loss)	C-7
	Computation of Basic and Diluted Earnings Per Share	C-8
	Analysis of Net Realized Capital Gains and Losses
	Three Months Ended December 31, 2007 and 2006	C-9
	Year Ended December 31, 2007 and 2006	C-10
	Computation of Return-on-Equity Measures	C-11
LIFE	Financial Highlights	L-1
	Operating Results	L-2
	Total Assets Under Management	L-3
	Consolidated Balance Sheets	L-4
	Deferred Policy Acquisition Costs and Present Value of Future Profits	L-5
	Supplemental Data — Annuity Death and Income Benefits	L-6
	Reinsurance Recoverable Analysis
	As of September 30, 2007	L-7
	Statutory Surplus to GAAP Stockholders’ Equity Reconciliation	L-8
	Retail Products Group
	Income Statements
	Individual Annuity	L-9
	Other	L-10
	Supplemental Data
	Deposits	L-11
	Assets Under Management	L-12
	Individual Annuity — Account Value Rollforward	L-13
	Other Retail — Asset Rollforward	L-14
	Retirement Plans
	Income Statements	L-15
	Supplemental Data
	Deposits	L-16
	Assets Under Management	L-17
	Account Value Rollforward	L-18
	Institutional Solutions Group
	Income Statements	L-19
	Supplemental Data
	Deposits	L-20
	Assets Under Management	L-21
	Account Value and Asset Rollforward	L-22
	Individual Life
	Income Statements	L-23
	Supplemental Data	L-24
	Account Value Rollforward	L-25
LIFE (CONT.)	Group Benefits
	Income Statements	L-26
	Supplemental Data	L-27
	International
	Highlights	L-28
	Japan
	Income Statements	L-29
	Supplemental Data - Account Value Rollforward in Dollars	L-30
	Supplemental Data - Account Value Rollforward in Yen	L-31
PROPERTY &	Financial Highlights	PC-1
CASUALTY	Operating Results	PC-2
	Ongoing Operations Operating Results	PC-3
	Ongoing Operations Consolidating Underwriting Results
	Three Months Ended December 31, 2007	PC-4
	Year Ended December 31, 2007	PC-5
	Ongoing Operations Underwriting Results	PC-6
	Personal Lines Underwriting Results	PC-7
	Personal Lines Written and Earned Premiums	PC-8
	Small Commercial Underwriting Results	PC-9
	Middle Market Underwriting Results	PC-10
	Specialty Commercial Underwriting Results	PC-11
	Specialty Commercial Written and Earned Premiums	PC-12
	Other Operations Operating Results	PC-13
	Other Operations Losses and Loss Adjustment Expenses	PC-14
	Paid and Incurred Loss and Loss Adjustment Expense Development — A&E	PC-15
	Unpaid Loss and Loss Adjustment Expense Reserve Rollforward
	Three Months Ended December 31, 2007	PC-16
	Year Ended December 31, 2007	PC-17
	Reinsurance Recoverable Analysis	PC-18
	Consolidated Income Statements	PC-19
	Consolidated Balance Sheets	PC-20
	Statutory Surplus to GAAP Stockholders’ Equity Reconciliation	PC-21
INVESTMENTS	Investment Earnings Before-tax
	Consolidated	I-1
	Life	I-2
	Property & Casualty	I-3
	Corporate	I-4
	Composition of Invested Assets
	Consolidated	I-5
	Life	I-6
	Property & Casualty	I-7
	Unrealized Loss Aging
	Consolidated	I-8
	Life	I-9
	Property & Casualty	I-10
	Invested Asset Exposures
	As of December 31, 2007	I-11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• All amounts are in millions, except for per share and ratio information unless otherwise stated.

• Life is organized into six reportable operating segments: Retail Products Group, Retirement Plans, Institutional Solutions Group, Individual Life, Group Benefits and International. Life also includes in an Other category its leveraged PPLI product line of business; corporate items not directly allocated to any of its reportable operating segments; the mark-to-market adjustment for the equity securities held for trading reported in net investment income and the related change in interest credited reported as a component of benefits, losses and loss adjustment expenses because these items are not considered by Life’s chief operating decision maker in evaluating the International results of operations; and intersegment eliminations.

• Property & Casualty includes Ongoing Operations and Other Operations. In 2007, Ongoing Operations realigned its underwriting segments to include Personal Lines, Small Commercial, Middle Market and Specialty Commercial segments. Other Operations includes the underwriting results of certain property and casualty insurance operations that have discontinued writing new business and substantially all of the Company’s asbestos and environmental exposures. The profitability of the Personal Lines, Small Commercial, Middle Market and Specialty Commercial segments are evaluated primarily based on underwriting results. The Company allocates income and expense items not directly attributed to the underwriting segments, such as net investment income, net realized capital gains and losses, other expenses and income taxes, to Ongoing Operations and Other Operations, respectively. The profitability of Ongoing Operations and the Other Operations segment is evaluated based on net income.

• Corporate primarily includes the Company’s debt financing and related interest expense, as well as certain capital raising and purchase accounting adjustment activities.

• Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in The Hartford’s business. These measures include sales, deposits, net flows, account value, insurance in-force and premium retention. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period.

• The Hartford, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses (amortization of deferred policy acquisition costs, as well as other underwriting expenses) to earned premiums. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses to earned premiums.

• The Hartford, along with others in the life insurance industry, uses underwriting ratios as measures of the Group Benefits segment’s performance. The loss ratio is the ratio of total benefits, losses and loss adjustment expenses, excluding buyouts, to total premiums and other considerations excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses to total premiums and other considerations excluding buyout premiums.

• Accumulated other comprehensive income (“AOCI”) represents net of tax unrealized gain (loss) on available-for-sale securities; net gain (loss) on cash-flow hedging instruments; foreign currency translation adjustments; and pension and other postretirement adjustments.

• Assets under management is an internal performance measure used by the Company because a significant portion of the Company’s revenues are based upon asset values. These revenues increase or decrease with a rise or fall, correspondingly, in the level of assets under management.

• Investment yield, before- or after-tax, is calculated by dividing before- or after-tax, respectively, annualized net investment income (excluding net realized capital gains (losses) and change in fair value of trading securities) by average invested assets at cost (fixed maturities at amortized cost, excluding trading securities).

• Certain reclassifications have been made to the prior periods to conform to the December 31, 2007 presentation.

• NM — Not meaningful means increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa.

 i 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
BASIS OF PRESENTATION (CONTINUED)

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

• The Hartford uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company’s operating performance for the periods presented herein. Because The Hartford’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford’s non-GAAP and other financial measures to those of other companies.

• The Hartford uses the non-GAAP financial measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that the measure core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by the net effect of certain realized capital gains and losses. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax and the effects of deferred policy acquisition costs (“DAC”)) that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives and net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Core earnings is also used by management to assess our operating performance and is one of the measures considered in determining incentive compensation for our managers. Net income is the most directly comparable GAAP measure. Core earnings should not be considered as a substitute for net income and does not reflect the overall profitability of our business. Therefore, The Hartford believes that it is useful for investors to evaluate both net income and core earnings when reviewing the Company’s performance. A reconciliation of net income to core earnings for the periods presented herein is set forth on page C-8.

• Core earnings per share is calculated based on the non-GAAP financial measure core earnings. The Hartford believes that the measure core earnings per share provides investors with a valuable measure of the Company’s operating performance for many of the same reasons applicable to its underlying measure, core earnings. Net income per share is the most directly comparable GAAP measure. Core earnings per share should not be considered as a substitute for net income per share and does not reflect the overall profitability of our business. Therefore, the Hartford believes that it is useful for investors to evaluate both net income per share and core earnings per share when reviewing our performance. A reconciliation of net income per share to core earnings per share for the periods presented herein is set forth on page C-8.

• Written premiums is a statutory accounting financial measure used by The Hartford as an important indicator of the operating performance of the Company’s property and casualty operations. Because written premiums represents the amount of premium charged for policies issued, net of reinsurance, during a fiscal period, The Hartford believes it is useful to investors because it reflects current trends in The Hartford’s sale of property and casualty insurance products. Earned premiums, the most directly comparable GAAP measure, represents all premiums that are recognized as revenues during a fiscal period. The difference between written premiums and earned premiums is attributable to the change in unearned premium reserves. A reconciliation of written premiums to earned premiums for the periods presented herein is set forth at page PC-2.

• The Hartford’s management evaluates profitability of the Personal Lines, Small Commercial, Middle Market and Specialty Commercial underwriting segments primarily on the basis of underwriting results. Underwriting results is a before-tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income is the most directly comparable GAAP measure. Underwriting results are 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, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance 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. The Hartford believes that underwriting results provides investors with a valuable measure of before-tax profitability derived from underwriting activities, which are managed separately from the Company’s investing activities. Underwriting results is also presented for Ongoing Operations, Other Operations and total Property & Casualty. A reconciliation of underwriting results to net income for total Property & Casualty, Ongoing Operations and Other Operations is set forth on pages PC-2, PC-3 and PC-13, respectively.

• A catastrophe is a severe loss, resulting from natural or manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack and similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance, and therefore their effects are not included in earnings or losses and loss adjustment expense reserves prior to occurrence. The Hartford believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings.

• Underwriting results before catastrophes and prior year development is a non-GAAP financial measure because it excludes the effects of catastrophes, prior year development and the reduction in earned premiums relating to retrospectively rated policies. The Company believes that this measure is useful to investors as an additional measure of Property & Casualty’s current operations, because it excludes the effect of items relating to prior periods. Net income is the most directly comparable GAAP measure. A reconciliation of the adjusted underwriting results to underwriting results and net income for the periods presented herein are set forth on page C-2a.

 ii 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
BASIS OF PRESENTATION (CONTINUED)

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES (CONTINUED)

• Book value per share excluding accumulated other comprehensive income (“AOCI”) is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) stockholders’ equity excluding AOCI, net of tax, by (b) common shares outstanding. The Hartford provides book value per share excluding AOCI to enable investors to analyze the amount of the Company’s net worth that is primarily attributable to the Company’s business operations. The Hartford believes book value per share excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure. A reconciliation of book value per share to book value per share excluding AOCI for the periods presented herein is set forth at page C-1.

• The Hartford provides different measures of the return on equity (“ROE”) of the Company. ROE (core earnings last twelve months to equity excluding AOCI), is calculated based on non-GAAP financial measures. ROE (core earnings last twelve months to equity excluding AOCI) is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average stockholders’ equity excluding AOCI. The Hartford provides to investors return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above. The Hartford excludes AOCI in the calculation of these return-on-equity measures to provide investors with a measure of how effectively the Company is investing the portion of the Company’s net worth that is primarily attributable to the Company’s business operations. ROE (net income last twelve months to equity including AOCI) is the most directly comparable GAAP measure. A reconciliation of the non-GAAP return-on-equity measures for the periods presented herein to ROE (net income last twelve months to equity including AOCI) is set forth at page C-11.

 iii 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
HIGHLIGHTS
Net income	$	783		$	876		$	627		$	851		$	595			(24	%)		(30	%)	$	2,745		$	2,949			7	%
Core earnings	$	768		$	843		$	764		$	1,060		$	840			9	%		(21	%)	$	2,865		$	3,507			22	%
Total revenues	$	7,579		$	6,759		$	7,660		$	5,823		$	5,674			(25	%)		(3	%)	$	26,500		$	25,916			(2	%)
Total assets	$	326,544		$	332,590		$	345,511		$	356,271		$	360,361			10	%		1	%
Total assets under management [1]	$	377,433		$	386,672		$	405,666		$	419,336		$	426,764			13	%		2	%
PER SHARE AND SHARES DATA
Basic earnings per share
Net income	$	2.45		$	2.74		$	1.98		$	2.70		$	1.90			(22	%)		(30	%)	$	8.89		$	9.32			5	%
Core earnings	$	2.40		$	2.64		$	2.41		$	3.36		$	2.68			12	%		(20	%)	$	9.28		$	11.09			20	%
Diluted earnings per share
Net income	$	2.42		$	2.71		$	1.96		$	2.68		$	1.88			(22	%)		(30	%)	$	8.69		$	9.24			6	%
Core earnings	$	2.37		$	2.61		$	2.39		$	3.33		$	2.66			12	%		(20	%)	$	9.07		$	10.99			21	%
Weighted average common shares outstanding (basic)		319.7			319.6			316.8			315.4			313.4			(6.3	)sh		(2.0	)sh		308.8			316.3			7.5	sh
Weighted average common shares outstanding and dilutive potential common shares (diluted)		323.9			322.7			319.6			318.0			316.1			(7.8	)sh		(1.9	)sh		315.9			319.1			3.2	sh
Common shares outstanding		323.3			316.4			317.6			313.7			313.8			(9.5	)sh		0.1	sh		323.3			313.8			(9.5	)sh
Book value per share	$	58.39		$	59.58		$	58.72		$	60.41		$	61.20			5	%		1	%
Per share impact of AOCI	$	0.56		$	0.56		$	(1.89	)	$	(2.12	)	$	(2.73	)	NM				(29	%)
Book value per share (excluding AOCI)	$	57.83		$	59.02		$	60.61		$	62.53		$	63.93			11	%		2	%
FINANCIAL RATIOS
ROE (net income last 12 months to equity including AOCI) [2]		16.1	%		16.9	%		17.9	%		17.1	%		15.5	%		(0.6	)		(1.6	)
ROE (core earnings last 12 months to equity excluding AOCI) [2]		16.9	%		16.9	%		17.4	%		18.4	%		18.1	%		1.2			(0.3	)
Debt to capitalization including AOCI		17.9	%		19.2	%		19.5	%		19.2	%		19.0	%		1.1			(0.2	)
Investment yield, after-tax		4.0	%		4.1	%		4.2	%		4.0	%		4.0	%		—			—			3.9	%		4.1	%		0.2
Ongoing Property & Casualty GAAP combined ratio		88.9			88.8			91.7			91.4			91.1			(2.2	)		0.3			89.3			90.8			(1.5	)

[1]	Includes mutual fund assets (see page L-3) and third party assets managed by HIMCO (see page I-5).
[2]	See page C-11 for a computation of return-on-equity measures.

 C-1 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

(A reconciliation of core earnings to net income for each of the segments is set forth on the respective segment pages contained in this supplement.)

																Year over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
LIFE
Retail Products Group
Individual Annuity	$	86		$	177		$	184		$	365		$	192			123	%		(47	%)	$	570		$	918			61	%
Other Retail		16			15			16			17			17			6	%		—			57			65			14	%
Total Retail Products Group		102			192			200			382			209			105	%		(45	%)		627			983			57	%
Retirement Plans		45			23			26			18			22			(51	%)		22	%		108			89			(18	%)
Institutional Solutions Group		25			35			32			38			35			40	%		(8	%)		103			140			36	%
Individual Life		29			46			46			64			40			38	%		(38	%)		166			196			18	%
Group Benefits		88			68			86			92			92			5	%		—			307			338			10	%
International		101			55			59			79			61			(40	%)		(23	%)		247			254			3	%
Other [1]		4			(1	)		(14	)		9			(2	)	NM			NM				47			(8	)	NM
Total Life core earnings [2]		394			418			435			682			457			16	%		(33	%)		1,605			1,992			24	%
PROPERTY & CASUALTY
Ongoing Operations
Ongoing Operations Underwriting Results
Personal Lines		108			130			84			78			30			(72	%)		(62	%)		429			322			(25	%)
Small Commercial		133			84			101			119			204			53	%		71	%		422			508			20	%
Middle Market		37			33			34			22			55			49	%		150	%		207			144			(30	%)
Specialty Commercial		13			46			(2	)		6			(55	)	NM			NM				53			(5	)	NM
Total Ongoing Operations underwriting results		291			293			217			225			234			(20	%)		4	%		1,111			969			(13	%)
Net servicing income		8			11			14			16			11			38	%		(31	%)		53			52			(2	%)
Net investment income		339			351			385			346			357			5	%		3	%		1,225			1,439			17	%
Periodic net coupon settlements on credit derivatives, before-tax		2			3			3			5			4			100	%		(20	%)		4			15		NM
Other expenses		(54	)		(60	)		(56	)		(63	)		(69	)		(28	%)		(10	%)		(222	)		(248	)		(12	%)
Income tax expense		(174	)		(178	)		(165	)		(138	)		(155	)		11	%		(12	%)		(644	)		(636	)		1	%
Ongoing Operations core earnings [1]		412			420			398			391			382			(7	%)		(2	%)		1,527			1,591			4	%
Other Operations core earnings [3]		36			28			(36	)		14			32			(11	%)		129	%		(52	)		38		NM
Total Property & Casualty core earnings		448			448			362			405			414			(8	%)		2	%		1,475			1,629			10	%
CORPORATE
Total Corporate core earnings [2]		(74	)		(23	)		(33	)		(27	)		(31	)		58	%		(15	%)		(215	)		(114	)		47	%
CONSOLIDATED
Core earnings		768			843			764			1,060			840			9	%		(21	%)		2,865			3,507			22	%
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [2][4]		15			33			(137	)		(209	)		(245	)	NM				(17	%)		(120	)		(558	)	NM
Net income	$	783		$	876		$	627		$	851		$	595			(24	%)		(30	%)	$	2,745		$	2,949			7	%
PER SHARE DATA [5]
Diluted earnings per share
Core earnings	$	2.37		$	2.61		$	2.39		$	3.33		$	2.66			12	%		(20	%)	$	9.07		$	10.99			21	%
Net income	$	2.42		$	2.71		$	1.96		$	2.68		$	1.88			(22	%)		(30	%)	$	8.69		$	9.24			6	%

[1]	Included in the three months ended June 30, 2007 and the year ended December 31, 2007 in Life core earnings is a charge of $21, after-tax, to reserve for regulatory matters. Included in the three months ended June 30, 2007 and the year ended December 31, 2007 in Ongoing Operations core earnings is a charge of $9, after-tax, to reserve for regulatory matters.
[2]	Included in the three months ended December 31, 2006 in Life core earnings, Corporate core earnings and net realized gain (losses), after-tax, is $(17), $(13), and $(46), respectively, related to the effect of the unlock of deferred acquisition costs. Included in the three months ended September 30, 2007 in Life core earnings, Corporate core earnings and net realized gain (losses), after-tax, is $227, $3, and $(17), respectively, related to the effect of the unlock of deferred acquisition costs. See L-1 for further details by Life segment.
[3]	The year ended December 31, 2006 included a charge of $158, after-tax, as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The three months ended June 30, 2007 included a charge of $64, after-tax, principally as a result of an adverse arbitration decision. The three months ended September 30, 2007 included an environmental reserve increase of $16, after-tax.
[4]	Includes those net realized capital gains (losses) not included in core earnings. See pages C-9 and C-10 for further analysis.
[5]	See page C-8 for reconciliation of net income to core earnings.

C-2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ANALYSIS OF OPERATING RESULTS BY SEGMENT

(A reconciliation of core earnings to net income for each of the segments is set forth on the respective segment pages contained in this supplement.)

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
LIFE
Retail Products Group
Individual Annuity	$	86		$	177		$	184		$	365		$	192			123	%		(47	%)	$	570		$	918			61	%
Other Retail		16			15			16			17			17			6	%		—			57			65			14	%
Total Retail Products Group		102			192			200			382			209			105	%		(45	%)		627			983			57	%
Retirement Plans		45			23			26			18			22			(51	%)		22	%		108			89			(18	%)
Institutional Solutions Group		25			35			32			38			35			40	%		(8	%)		103			140			36	%
Individual Life		29			46			46			64			40			38	%		(38	%)		166			196			18	%
Group Benefits		88			68			86			92			92			5	%		—			307			338			10	%
International		101			55			59			79			61			(40	%)		(23	%)		247			254			3	%
Other [1]		4			(1	)		(14	)		9			(2	)	NM			NM				47			(8	)	NM
Total Life core earnings [2]		394			418			435			682			457			16	%		(33	%)		1,605			1,992			24	%
PROPERTY & CASUALTY
Ongoing Operations Underwriting Results Before Catastrophes and Prior Year Development:
Personal Lines		129			151			120			111			61			(53	%)		(45	%)		511			443			(13	%)
Small Commercial		118			86			86			78			77			(35	%)		(1	%)		381			327			(14	%)
Middle Market		41			56			37			32			20			(51	%)		(38	%)		258			145			(44	%)
Specialty Commercial		17			32			14			25			15			(12	%)		(40	%)		96			86			(10	%)
Total Ongoing Operations underwriting results before catastrophes and prior year development		305			325			257			246			173			(43	%)		(30	%)		1,246			1,001			(20	%)
Catastrophes, excluding prior year development		(35	)		(28	)		(52	)		(32	)		(65	)		(86	%)		(103	%)		(199	)		(177	)		11	%
Prior year reserve development:
Catastrophe loss and loss adjustment expenses		(4	)		5			(3	)		(8	)		(4	)		—			50	%		70			(10	)	NM
Other loss and loss adjustment expenses		25			(9	)		15			19			130		NM			NM				(6	)		155		NM
Total Ongoing Operations underwriting results		291			293			217			225			234			(20	%)		4	%		1,111			969			(13	%)
Net servicing income		8			11			14			16			11			38	%		(31	%)		53			52			(2	%)
Net investment income		339			351			385			346			357			5	%		3	%		1,225			1,439			17	%
Periodic net coupon settlements on credit derivatives, before-tax		2			3			3			5			4			100	%		(20	%)		4			15		NM
Other expenses		(54	)		(60	)		(56	)		(63	)		(69	)		(28	%)		(10	%)		(222	)		(248	)		(12	%)
Income tax expense		(174	)		(178	)		(165	)		(138	)		(155	)		11	%		(12	%)		(644	)		(636	)		1	%
Ongoing Operations core earnings [1]		412			420			398			391			382			(7	%)		(2	%)		1,527			1,591			4	%
Other Operations core earnings [3]		36			28			(36	)		14			32			(11	%)		129	%		(52	)		38		NM
Total Property & Casualty core earnings		448			448			362			405			414			(8	%)		2	%		1,475			1,629			10	%
CORPORATE
Total Corporate core earnings [2]		(74	)		(23	)		(33	)		(27	)		(31	)		58	%		(15	%)		(215	)		(114	)		47	%
CONSOLIDATED
Core earnings		768			843			764			1,060			840			9	%		(21	%)		2,865			3,507			22	%
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [2][4]		15			33			(137	)		(209	)		(245	)	NM				(17	%)		(120	)		(558	)	NM
Net income	$	783		$	876		$	627		$	851		$	595			(24	%)		(30	%)	$	2,745		$	2,949			7	%

[1]	Included in the three months ended June 30, 2007 and the year ended December 31, 2007 in Life core earnings is a charge of $21, after-tax, to reserve for regulatory matters. Included in the three months ended June 30, 2007 and the year ended December 31, 2007 in Ongoing Operations core earnings is a charge of $9, after-tax, to reserve for regulatory matters.
[2]	Included in the three months ended December 31, 2006 in Life core earnings, Corporate core earnings and net realized gain (losses), after-tax, is $(17), $(13), and $(46), respectively, related to the effect of the unlock of deferred acquisition costs. Included in the three months ended September 30, 2007 in Life core earnings, Corporate core earnings and net realized gain (losses), after-tax, is $227, $3, and $(17), respectively, related to the effect of the unlock of deferred acquisition costs. See L-1 for further details by Life segment.
[3]	The year ended December 31, 2006 included a charge of $158, after-tax, as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The three months ended June 30, 2007 included a charge of $64, after-tax, principally as a result of an adverse arbitration decision. The three months ended September 30, 2007 included an environmental reserve increase of $16, after-tax.
[4]	Includes those net realized capital gains (losses) not included in core earnings. See pages C-9 and C-10 for further analysis.

C-2a

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2007 AND 2006

	LIFE									PROPERTY & CASUALTY								CORPORATE									CONSOLIDATED
	2007			2006			Change			2007			2006		Change			2007			2006			Change			2007			2006		Change
Earned premiums	$	1,236		$	1,107			12	%	$	2,623		$	2,628		—		$	—		$	—			—		$	3,859		$	3,735		3	%
Fee income		1,407			1,303			8	%		—			—		—			3			4			(25	%)		1,410			1,307		8	%
Net investment income
Securities available-for-sale and other		878			825			6	%		421			405		4	%		8			12			(33	%)		1,307			1,242		5	%
Equity securities held for trading [1]		(601	)		1,155			NM			—			—		—			—			—			—			(601	)		1,155		NM
Total net investment income		277			1,980			(86	%)		421			405		4	%		8			12			(33	%)		706			2,397		(71	%)
Other revenues		—			—			—			128			118		8	%		—			—			—			128			118		8	%
Net realized capital gains (losses)		(333	)		5			NM			(96	)		17		NM			—			—			—			(429	)		22		NM
Total revenues		2,587			4,395			(41	%)		3,076			3,168		(3	%)		11			16			(31	%)		5,674			7,579		(25	%)
Benefits, losses and loss adjustment expenses [1]		1,108			2,656			(58	%)		1,667			1,645		1	%		—			—			—			2,775			4,301		(35	%)
Amortization of deferred policy acquisition costs and present value of future profits		280			539			(48	%)		523			534		(2	%)		1			—			NM			804			1,073		(25	%)
Insurance operating costs and expenses		846			719			18	%		222			175		27	%		—			—			—			1,068			894		19	%
Interest expense		2			—			NM			—			—		—			65			70			(7	%)		67			70		(4	%)
Other expenses [2]		3			14			(79	%)		184			165		12	%		(8	)		60			NM			179			239		(25	%)
Total benefits and expenses		2,239			3,928			(43	%)		2,596			2,519		3	%		58			130			(55	%)		4,893			6,577		(26	%)
Income (loss) before income taxes		348			467			(25	%)		480			649		(26	%)		(47	)		(114	)		59	%		781			1,002		(22	%)
Income tax expense (benefit)		71			108			(34	%)		131			151		(13	%)		(16	)		(40	)		60	%		186			219		(15	%)
Net income (loss)		277			359			(23	%)		349			498		(30	%)		(31	)		(74	)		58	%		595			783		(24	%)
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		(180	)		(35	)	NM				(65	)		50		NM			—			—			—			(245	)		15		NM
Core earnings	$	457		$	394			16	%	$	414		$	448		(8	%)	$	(31	)	$	(74	)		58	%	$	840		$	768		9	%

[1]	Includes investment income and mark-to-market effects of equity securities held for trading supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.
[2]	The three months ended December 31, 2007 included $5, $11 and $(16) in Life, Property & Casualty and Corporate, respectively, of interest charged by Corporate on the amount of capital held by the Life and Property & Casualty operations in excess of the amount needed to support the capital requirements of the Life and Property & Casualty operations.

C-3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2007 AND 2006

	LIFE									PROPERTY & CASUALTY								CORPORATE									CONSOLIDATED
	2007			2006			Change			2007			2006		Change			2007			2006			Change			2007			2006			Change
Earned premiums	$	5,123		$	4,590			12	%	$	10,496		$	10,433		1	%	$	—		$	—			—		$	15,619		$	15,023			4	%
Fee income		5,420			4,726			15	%		—			—		—			16			13			23	%		5,436			4,739			15	%
Net investment income
Securities available-for-sale and other		3,497			3,184			10	%		1,687			1,486		14	%		30			21			43	%		5,214			4,691			11	%
Equity securities held for trading [1]		145			1,824			(92	%)		—			—		—			—			—			—			145			1,824			(92	%)
Total net investment income		3,642			5,008			(27	%)		1,687			1,486		14	%		30			21			43	%		5,359			6,515			(18	%)
Other revenues		—			—			—			496			473		5	%		—			1			(100	%)		496			474			5	%
Net realized capital gains (losses)		(819	)		(260	)		NM			(172	)		9		NM			(3	)		—			NM			(994	)		(251	)		NM
Total revenues		13,366			14,064			(5	%)		12,507			12,401		1	%		43			35			23	%		25,916			26,500			(2	%)
Benefits, losses and loss adjustment expenses [1]		7,147			8,040			(11	%)		6,917			7,002		(1	%)		—			—			—			14,064			15,042			(7	%)
Amortization of deferred policy acquisition costs and present value of future profits		884			1,452			(39	%)		2,104			2,106		—			1			—			NM			2,989			3,558			(16	%)
Insurance operating costs and expenses		3,178			2,672			19	%		716			580		23	%		—			—			—			3,894			3,252			20	%
Interest expense		4			—			NM			—			—		—			259			277			(6	%)		263			277			(5	%)
Other expenses [2]		48			36			33	%		693			643		8	%		(40	)		90			NM			701			769			(9	%)
Total benefits and expenses		11,261			12,200			(8	%)		10,430			10,331		1	%		220			367			(40	%)		21,911			22,898			(4	%)
Income (loss) before income taxes		2,105			1,864			13	%		2,077			2,070		—			(177	)		(332	)		47	%		4,005			3,602			11	%
Income tax expense (benefit)		547			423			29	%		570			551		3	%		(61	)		(117	)		48	%		1,056			857			23	%
Net income (loss)		1,558			1,441			8	%		1,507			1,519		(1	%)		(116	)		(215	)		46	%		2,949			2,745			7	%
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		(434	)		(164	)		(165	%)		(122	)		44		NM			(2	)		—			NM			(558	)		(120	)		NM
Core earnings	$	1,992		$	1,605			24	%	$	1,629		$	1,475		10	%	$	(114	)	$	(215	)		47	%	$	3,507		$	2,865			22	%

[1]	Includes investment income and mark-to-market effects of equity securities held for trading supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.
[2]	The year ended December 31, 2007 included $28, $49 and $(77) in Life, Property & Casualty and Corporate, respectively, of interest charged by Corporate on the amount of capital held by the Life and Property & Casualty operations in excess of the amount needed to support the capital requirements of the Life and Property & Casualty operations.

C-4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

AS OF DECEMBER 31, 2007 AND 2006

	LIFE									PROPERTY & CASUALTY								CORPORATE									CONSOLIDATED
	Dec. 31,			Dec. 31,						Dec. 31,			Dec. 31,					Dec. 31,			Dec. 31,						Dec. 31,			Dec. 31,
	2007			2006			Change			2007			2006		Change			2007			2006			Change			2007			2006		Change
Investments
Fixed maturities, available-for-sale, at fair value	$	52,542		$	52,081			1	%	$	27,205		$	26,734		2	%	$	308		$	259			19	%	$	80,055		$	79,074		1	%
Equity securities, trading, at fair value		36,182			29,393			23	%		—			—		—			—			—			—			36,182			29,393		23	%
Equity securities, available-for-sale, at fair value		1,284			811			58	%		1,208			873		38	%		103			55			87	%		2,595			1,739		49	%
Policy loans, at outstanding balance		2,061			2,051			—			—			—		—			—			—			—			2,061			2,051		—
Mortgage loans on real estate		4,739			2,909			63	%		671			409		64	%		—			—			—			5,410			3,318		63	%
Other investments		1,840			1,075			71	%		1,298			840		55	%		43			—			NM			3,181			1,915		66	%
Short-term investments		1,158			1,092			6	%		284			444		(36	%)		160			145			10	%		1,602			1,681		(5	%)
Total investments		99,806			89,412			12	%		30,666			29,300		5	%		614			459			34	%		131,086			119,171		10	%
Cash		1,770			1,199			48	%		241			225		7	%		—			—			—			2,011			1,424		41	%
Premiums receivable and agents’ balances		427			424			1	%		3,254			3,251		—			—			—			—			3,681			3,675		—
Reinsurance recoverables		1,419			1,106			28	%		3,731			4,465		(16	%)		—			—			—			5,150			5,571		(8	%)
Deferred policy acquisition costs and present value of future profits		10,514			9,070			16	%		1,228			1,197		3	%		—			1			(100	%)		11,742			10,268		14	%
Deferred income taxes		(754	)		(717	)		(5	%)		662			608		9	%		400			393			2	%		308			284		8	%
Goodwill		805			796			1	%		149			149		—			772			772			—			1,726			1,717		1	%
Property and equipment, net		374			248			51	%		598			543		10	%		—			—			—			972			791		23	%
Other assets		1,869			1,554			20	%		1,312			1,287		2	%		558			318			75	%		3,739			3,159		18	%
Separate account assets		199,946			180,484			11	%		—			—		—			—			—			—			199,946			180,484		11	%
Total assets	$	316,176		$	283,576			11	%	$	41,841		$	41,025		2	%	$	2,344		$	1,943			21	%	$	360,361		$	326,544		10	%
Future policy benefits, unpaid losses and loss adjustment expenses	$	15,331		$	14,016			9	%	$	22,153		$	21,991		1	%	$	—		$	—			—		$	37,484		$	36,007		4	%
Other policyholder funds and benefits payable		80,342			71,311			13	%		—			—		—			—			—			—			80,342			71,311		13	%
Unearned premiums		147			103			43	%		5,402			5,522		(2	%)		(4	)		(5	)		20	%		5,545			5,620		(1	%)
Debt		115			—			NM			13			—		NM			4,379			4,103			7	%		4,507			4,103		10	%
Consumer notes		809			258			NM			—			—		—			—			—			—			809			258		NM
Other liabilities		8,045			5,840			38	%		4,855			3,327		46	%		(376	)		718			NM			12,524			9,885		27	%
Separate account liabilities		199,946			180,484			11	%		—			—		—			—			—			—			199,946			180,484		11	%
Total liabilities		304,735			272,012			12	%		32,423			30,840		5	%		3,999			4,816			(17	%)		341,157			307,668		11	%
Equity excluding AOCI, net of tax		11,868			11,177			6	%		9,428			9,851		(4	%)		(1,234	)		(2,330	)		47	%		20,062			18,698		7	%
AOCI, net of tax		(427	)		387			NM			(10	)		334		NM			(421	)		(543	)		22	%		(858	)		178		NM
Total stockholders’ equity		11,441			11,564			(1	%)		9,418			10,185		(8	%)		(1,655	)		(2,873	)		42	%		19,204			18,876		2	%
Total liabilities and stockholders’ equity	$	316,176		$	283,576			11	%	$	41,841		$	41,025		2	%	$	2,344		$	1,943			21	%	$	360,361		$	326,544		10	%

C-5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE

																Year Over
																Year			Sequential
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month
	2006			2007			2007			2007			2007			Change			Change
DEBT
Short-term debt (includes current maturities of long-term debt and capital lease obligations)	$	599		$	468		$	423		$	822		$	1,365			128	%		66	%
Capital lease obligations		—			—			90			90			91			—			—
Senior notes		3,504			4,004			4,005			3,580			3,051			(13	%)		(15	%)
Total debt [1]	$	4,103		$	4,472		$	4,518		$	4,492		$	4,507			10	%		—
STOCKHOLDERS’ EQUITY
Equity excluding AOCI, net of tax	$	18,698		$	18,674		$	19,249		$	19,616		$	20,062			7	%		2	%
AOCI, net of tax		178			177			(601	)		(666	)		(858	)	NM				(29	%)
Total stockholders’ equity	$	18,876		$	18,851		$	18,648		$	18,950		$	19,204			2	%		1	%
CAPITALIZATION
Total capitalization including AOCI, net of tax	$	22,979		$	23,323		$	23,166		$	23,442		$	23,711			3	%		1	%
Total capitalization excluding AOCI, net of tax	$	22,801		$	23,146		$	23,767		$	24,108		$	24,569			8	%		2	%
DEBT TO CAPITALIZATION RATIOS
Ratios Including AOCI
Total debt to capitalization		17.9	%		19.2	%		19.5	%		19.2	%		19.0	%		1.1			(0.2	)
Ratios Excluding AOCI
Total debt to capitalization		18.0	%		19.3	%		19.0	%		18.6	%		18.3	%		0.3			(0.3	)
Debt (including the adjusted unfunded pension liability and six times rental expense on operating leases) to capitalization [2]		22.1	%		23.3	%		22.6	%		22.2	%		21.5	%		(0.6	)		(0.7	)

[1]

The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $258, $435, $588, $723, and $809 as of December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively.

[2]

Reflects a rating agency assignment in the leverage calculation of an estimate of the adjusted unfunded pension liability of the Company’s defined benefit plans and six times the Company’s rental expense on operating leases for total adjustments of $1.2 billion, $1.2 billion, $1.1 billion, $1.1 billion, and $1.0 billion for the three months ended December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively.

C-6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

				PROPERTY &
	LIFE			CASUALTY			CORPORATE			CONSOLIDATED
As of December 31, 2007
Fixed maturities unrealized gain loss	$	(293	)	$	(67	)	$	—		$	(360	)
Equities unrealized gain (loss)		(58	)		51			8			1
Net deferred loss on cash-flow hedging instruments		(115	)		(25	)		—			(140	)
Total unrealized gain (loss)		(466	)		(41	)		8			(499	)
Foreign currency translation adjustments		39			(13	)		—			26
Pension and other postretirement adjustment		—			44			(429	)		(385	)
Total accumulated other comprehensive loss	$	(427	)	$	(10	)	$	(421	)	$	(858	)
As of December 31, 2006
Fixed maturities unrealized gain	$	613		$	313		$	—		$	926
Equities unrealized gain		20			105			7			132
Net deferred loss on cash-flow hedging instruments		(208	)		(26	)		—			(234	)
Total unrealized gain		425			392			7			824
Foreign currency translation adjustments		(38	)		(82	)		—			(120	)
Pension and other postretirement adjustment		—			24			(550	)		(526	)
Total accumulated other comprehensive income (loss)	$	387		$	334		$	(543	)	$	178

C-7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE

	THREE MONTHS ENDED													YEAR ENDED
	Dec. 31,		Mar. 31,		Jun. 30,			Sept. 30,			Dec. 31,			DECEMBER 31,
	2006		2007		2007			2007			2007			2006			2007
Numerator:
Net income	$	783	$	876	$	627		$	851		$	595		$	2,745		$	2,949
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		15		33		(137	)		(209	)		(245	)		(120	)		(558	)
Core earnings		768		843		764			1,060			840			2,865			3,507
Denominator:
Weighted average common shares outstanding (basic)		319.7		319.6		316.8			315.4			313.4			308.8			316.3
Dilutive effect of equity units		1.0		—		—			—			—			4.1			—
Dilutive effect of stock compensation		3.2		3.1		2.8			2.6			2.7			3.0			2.8
Weighted average common shares outstanding and dilutive potential common shares (diluted)		323.9		322.7		319.6			318.0			316.1			315.9			319.1
Basic earnings per share
Net income	$	2.45	$	2.74	$	1.98		$	2.70		$	1.90		$	8.89		$	9.32
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.05		0.10		(0.43	)		(0.66	)		(0.78	)		(0.39	)		(1.77	)
Core earnings		2.40		2.64		2.41			3.36			2.68			9.28			11.09
Diluted earnings per share
Net income	$	2.42	$	2.71	$	1.96		$	2.68		$	1.88		$	8.69		$	9.24
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.05		0.10		(0.43	)		(0.65	)		(0.78	)		(0.38	)		(1.75	)
Core earnings		2.37		2.61		2.39			3.33			2.66			9.07			10.99

C-8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ANALYSIS OF NET REALIZED CAPITAL GAINS AND LOSSES
THREE MONTHS ENDED DECEMBER 31, 2007 AND 2006

	LIFE									PROPERTY & CASUALTY									CORPORATE						CONSOLIDATED
	2007			2006			Change			2007			2006			Change			2007		2006		Change		2007			2006			Change
Net realized capital gains (losses), before tax and DAC, excluded from core earnings
Net gains (losses) on sales	$	49		$	15		NM			$	15		$	38			(61	%)	$	—	$	—		—	$	64		$	53			21	%
Impairments
Credit related		(198	)		(7	)	NM				(42	)		—		NM				—		—		—		(240	)		(7	)	NM
Other [1]		(51	)		—		NM				(27	)		(4	)	NM				—		—		—		(78	)		(4	)	NM
Total impairments		(249	)		(7	)	NM				(69	)		(4	)	NM				—		—		—		(318	)		(11	)	NM
Japanese fixed annuity, net [2]		15			3		NM				—			—			—			—		—		—		15			3		NM
GMWB derivatives, net [3]		(27	)		—		NM				—			—			—			—		—		—		(27	)		—		NM
Other [4]		(119	)		8		NM				(46	)		(19	)		(142	%)		—		—		—		(165	)		(11	)	NM
Total net realized capital gains (losses), before tax and DAC, excluded from core earnings		(331	)		19		NM				(100	)		15		NM				—		—		—		(431	)		34		NM
Impacts of tax and deferred policy acquisition costs (“DAC”)		151			(54	)	NM				35			35			—			—		—		—		186			(19	)	NM
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings	$	(180	)	$	(35	)	NM			$	(65	)	$	50		NM			$	—	$	—		—	$	(245	)	$	15		NM
Reconciliation of net realized capital gains (losses), before tax and DAC, excluded from core earnings to total net realized capital gains (losses) — before tax and DAC
Total net realized capital gains (losses) excluded from core earnings	$	(331	)	$	19		NM			$	(100	)	$	15		NM			$	—	$	—		—	$	(431	)	$	34		NM
Total net realized capital gains (losses) included in core earnings		(2	)		(14	)		57	%		4			2			100	%		—		—		—		2			(12	)		83	%
Total net realized capital gains (losses)	$	(333	)	$	5		NM			$	(96	)	$	17		NM			$	—	$	—		—	$	(429	)	$	22		NM

[1]	Primarily relates to fixed maturity impairments for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow for a recovery to amortized cost. These impairments do not relate to security issuers for which the Company has current concerns regarding their ability to pay future interest and principal amounts based upon the securities’ contractual terms.
[2]	Represents realized gains and losses related to currency remeasurement on yen denominated fixed annuity liabilities and changes in fair value of the associated foreign currency swaps. While economically hedged, volatility exists due to a difference in the basis of accounting between the yen liabilities (historical cost) and the currency swaps (fair value). The primary difference relates to changes in Japan interest rates which are included in the fair value of the currency swaps but not the yen liabilities. If the economic impact of the change in Japan interest rates was permitted to be reflected in the value of the yen denominated fixed annuity liabilities, an estimated realized loss of $21 and $1 would have been recognized as an offset to this amount in the three months ended December 31, 2007 and 2006, respectively.
[3]	Represents the net activity associated with the guaranteed minimum withdrawal benefit (“GMWB”) feature in certain of the Company’s life products. The net activity includes the fair value of the embedded derivatives associated with these products, related reinsurance and the fair value of the derivatives used to hedge this exposure.
[4]	Primarily consists of changes in fair value on non-qualifying derivatives, changes in fair value of certain derivatives in fair value hedge relationships and hedge ineffectiveness on qualifying derivative instruments.

C-9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ANALYSIS OF NET REALIZED CAPITAL GAINS AND LOSSES
YEAR ENDED DECEMBER 31, 2007 AND 2006

	LIFE									PROPERTY & CASUALTY									CORPORATE							CONSOLIDATED
	2007			2006			Change			2007			2006			Change			2007			2006		Change		2007			2006			Change
Net realized capital gains (losses), before tax and DAC, excluded from core earnings
Net gains (losses) on sales	$	45		$	(42	)	NM			$	38		$	41			(7	%)	$	—		$	—		—	$	83		$	(1	)	NM
Impairments
Credit related		(241	)		(10	)	NM				(63	)		—		NM				—			—		—		(304	)		(10	)	NM
Other [1]		(117	)		(66	)		(77	%)		(62	)		(45	)		(38	%)		—			—		—		(179	)		(111	)		(61	%)
Total impairments		(358	)		(76	)	NM				(125	)		(45	)		(178	%)		—			—		—		(483	)		(121	)	NM
Japanese fixed annuity, net [2]		18			(17	)	NM				—			—			—			—			—		—		18			(17	)	NM
GMWB derivatives, net [3]		(277	)		(26	)	NM				—			—			—			—			—		—		(277	)		(26	)	NM
Other [4]		(215	)		(50	)	NM				(100	)		9		NM				(3	)		—	NM			(318	)		(41	)	NM
Total net realized capital gains (losses), before tax and DAC, excluded from core earnings		(787	)		(211	)	NM				(187	)		5		NM				(3	)		—	NM			(977	)		(206	)	NM
Impacts of tax and deferred policy acquisition costs (“DAC”)		353			47		NM				65			39			67	%		1			—	NM			419			86		NM
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings	$	(434	)	$	(164	)		(165	%)	$	(122	)	$	44		NM			$	(2	)	$	—	NM		$	(558	)	$	(120	)	NM
Reconciliation of net realized capital gains (losses), before tax and DAC, excluded from core earnings to total net realized capital gains (losses) — before tax and DAC
Total net realized capital gains (losses) excluded from core earnings	$	(787	)	$	(211	)	NM			$	(187	)	$	5		NM			$	(3	)	$	—	NM		$	(977	)	$	(206	)	NM
Total net realized capital gains (losses) included in core earnings		(32	)		(49	)		18	%		15			4		NM				—			—		—		(17	)		(45	)		44	%
Total net realized capital gains (losses)	$	(819	)	$	(260	)	NM			$	(172	)	$	9		NM			$	(3	)	$	—	NM		$	(994	)	$	(251	)	NM

[1]	Primarily relates to fixed maturity impairments for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow for a recovery to amortized cost. These impairments do not relate to security issuers for which the Company has current concerns regarding their ability to pay future interest and principal amounts based upon the securities’ contractual terms.
[2]	Represents realized gains and losses related to currency remeasurement on yen denominated fixed annuity liabilities and changes in fair value of the associated foreign currency swaps. While economically hedged, volatility exists due to a difference in the basis of accounting between the yen liabilities (historical cost) and the currency swaps (fair value). The primary difference relates to changes in Japan interest rates which are included in the fair value of the currency swaps but not the yen liabilities. If the economic impact of the change in Japan interest rates was permitted to be reflected in the value of the yen denominated fixed annuity liabilities, an estimated realized loss of $18 and gain of $24 would have been recognized as an offset to this amount in the year ended December 31, 2007 and 2006, respectively.
[3]	Represents the net activity associated with the guaranteed minimum withdrawal benefit (“GMWB”) feature in certain of the Company’s life products. The net activity includes the fair value of the embedded derivatives associated with these products, related reinsurance and the fair value of the derivatives used to hedge this exposure.
[4]	Primarily consists of changes in fair value on non-qualifying derivatives, changes in fair value of certain derivatives in fair value hedge relationships and hedge ineffectiveness on qualifying derivative instruments.

C-10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPUTATION OF RETURN-ON-EQUITY MEASURES

	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,
	2006			2007			2007			2007			2007
Numerator [1]:
Net income — last 12 months	$	2,745		$	2,893		$	3,044		$	3,137		$	2,949
Core earnings — last 12 months	$	2,865		$	2,911		$	3,102		$	3,435		$	3,507
Denominator [2]:
Average equity, including AOCI		17,100.5			17,130.5			17,015.5			18,341.5			19,040.0
Less: Average AOCI		134.0			(140.0	)		(762.5	)		(301.0	)		(340.0	)
Average equity, excluding AOCI		16,966.5			17,270.5			17,778.0			18,642.5			19,380.0
ROE (net income last 12 months to equity including AOCI)		16.1	%		16.9	%		17.9	%		17.1	%		15.5	%
ROE (core earnings last 12 months to equity excluding AOCI)		16.9	%		16.9	%		17.4	%		18.4	%		18.1	%

[1]	For a reconciliation of net income to core earnings, see page C-8.
[2]	Average equity is calculated by taking the sum of equity at the beginning of the twelve month period and equity at the end of the twelve month period and dividing by 2.

C-11

LIFE

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
FINANCIAL HIGHLIGHTS

																	Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,				Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007				Change			Change			2006			2007				Change
REVENUES
Retail Products Group
Individual Annuity [1], [2]	$	713		$	724		$	768		$	774			$	783			10	%		1	%	$	2,802			$	3,049			9	%
Other Retail		177			183			200			207				223			26	%		8	%		651				813			25	%
Total Retail Products Group		890			907			968			981				1,006			13	%		3	%		3,453				3,862			12	%
Retirement Plans		140			144			150			151				152			9	%		1	%		538				597			11	%
Institutional Solutions Group		417			520			552			829				580			39	%		(30	%)		1,736				2,481			43	%
Individual Life [1], [2]		342			287			292			283				304			(11	%)		7	%		1,155				1,166			1	%
Group Benefits		1,163			1,203			1,208			1,179				1,183			2	%		—			4,565				4,773			5	%
International		202			207			216			231				241			19	%		4	%		761				895			18	%
Other		67			59			71			51				53			(21	%)		4	%		243				234			(4	%)
Core revenues before net investment income on equity securities held for trading		3,221			3,327			3,457			3,705				3,519			9	%		(5	%)		12,451				14,008			13	%
Net investment income on equity securities held for trading [3]		1,155			210			1,234			(698	)			(601	)	NM				14	%		1,824				145			(92	%)
Total core revenues	$	4,376		$	3,537		$	4,691		$	3,007			$	2,918			(33	%)		(3	%)	$	14,275			$	14,153			(1	%)
Net realized gains (losses), before tax and DAC, excluded from core revenues		19			34			(208	)		(282	)			(331	)	NM				(17	%)		(211	)			(787	)	NM
Total revenues	$	4,395		$	3,571		$	4,483		$	2,725			$	2,587			(41	%)		(5	%)	$	14,064			$	13,366			(5	%)
CORE EARNINGS BY SEGMENT
Retail Products Group
Individual Annuity [4], [5]	$	86		$	177		$	184		$	365			$	192			123	%		(47	%)	$	570			$	918			61	%
Other Retail [5]		16			15			16			17				17			6	%		—			57				65			14	%
Total Retail Products Group		102			192			200			382				209			105	%		(45	%)		627				983			57	%
Retirement Plans [4], [5]		45			23			26			18				22			(51	%)		22	%		108				89			(18	%)
Institutional Solutions Group [5]		25			35			32			38				35			40	%		(8	%)		103				140			36	%
Individual Life [4], [5]		29			46			46			64				40			38	%		(38	%)		166				196			18	%
Group Benefits		88			68			86			92				92			5	%		—			307				338			10	%
International [4], [5]		101			55			59			79				61			(40	%)		(23	%)		247				254			3	%
Other [6], [7]		4			(1	)		(14	)		9				(2	)	NM			NM				47				(8	)	NM
Core earnings		394			418			435			682				457			16	%		(33	%)		1,605				1,992			24	%
Net realized gains losses, net of tax and DAC, excluded from core earnings [4], [5]		(35	)		20			(117	)		(157	)			(180	)	NM				(15	%)		(164	)			(434	)		(165	%)
Net income	$	359		$	438		$	318		$	525			$	277			(23	%)		(47	%)	$	1,441			$	1,558			8	%
ROE (core earnings last 12 months to equity excluding AOCI)		18.0	%		18.6	%		18.5	%		21.1	%			21.4	%		3.4			0.3
Assets under management	$	327,308		$	335,671		$	353,428		$	366,818			$	371,707			14	%		1	%
DAC capitalization	$	503		$	524		$	522		$	524			$	489						(7	%)
DAC amortization	$	539		$	344		$	309		$	(49	)		$	280					NM
DAC and PVFP assets	$	9,070		$	9,158		$	9,516		$	10,275			$	10,514						2	%
United States Statutory surplus ($ in billions) [8]	$	4.7		$	4.8		$	4.8		$	4.9			$	5.8

[1]	Includes benefits of $7 and $31, after tax, recorded in the three months ended December 31, 2006 for the unlock of unearned revenue reserves and reinsurance premiums, in Individual Annuity and Individual Life, respectively.
[2]	Includes charges of $5 and $8, after tax, recorded in the three months ended September 30, 2007 for the unlock of unearned revenue reserves, in Individual Annuity and Individual Life, respectively.
[3]	These revenues will fluctuate principally due to the investment income and the mark-to-market adjustment of the trading investment portfolio supporting the variable annuities business in the international operations, principally in Japan.
[4]	Includes the effect of the unlock on amortization of deferred policy acquisition costs and present value of future profits, death benefits, sales inducements and mutual fund and other fees, recorded in the three months ended December 31, 2006. The after-tax benefits (charges) recorded in Individual Annuity, Retirement Plans, Individual Life and International were ($72), $20, ($18) and $53, respectively.
	The after-tax charge recorded in Net realized gains (losses), excluded from core earnings was ($46).
[5]	Includes the effect of the unlock on amortization of deferred policy acquisition costs and present value of future profits, death benefits, sales inducements and mutual fund and other fees, recorded in the three months ended September 30, 2007.
	The after-tax benefits (charges) recorded in Individual Annuity, Retail Other, Retirement Plans, Institutional Solutions Group, Individual Life and International were $198, ($1), ($9), $1, $16 and $22, respectively.
	The after-tax charge recorded in Net realized gains (losses), excluded from core earnings was ($17).
[6]	Included in the year ended December 31, 2006 is a charge of $7, after-tax, to reserve for regulatory matters. Included in the three months ended June 30, 2007 is a charge of $21, after-tax, to reserve for regulatory matters.
[7]	Included in the year ended December 31, 2006 is a $34 benefit, after-tax, due to a reduction in litigation reserves related to leveraged corporate owned life insurance products.
[8]	Estimated United States statutory surplus at December 31, 2007.

L - 1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
OPERATING RESULTS

																	Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,				Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007				Change			Change			2006			2007				Change
REVENUES
Earned premiums	$	1,107		$	1,208		$	1,245		$	1,434			$	1,236			12	%		(14	%)	$	4,590			$	5,123			12	%
Fee income		1,303			1,278			1,341			1,394				1,407			8	%		1	%		4,726				5,420			15	%
Net investment income
Securities available-for-sale and other		825			852			884			883				878			6	%		(1	%)		3,184				3,497			10	%
Equity securities held for trading [1]		1,155			210			1,234			(698	)			(601	)	NM				14	%		1,824				145			(92	%)
Total net investment income		1,980			1,062			2,118			185				277			(86	%)		50	%		5,008				3,642			(27	%)
Net realized capital (losses) — core		(14	)		(11	)		(13	)		(6	)			(2	)		86	%		67	%		(49	)			(32	)		35	%
Total core revenues		4,376			3,537			4,691			3,007				2,918			(33	%)		(3	%)		14,275				14,153			(1	%)
Net realized gains (losses), before tax and DAC, excluded from core revenues		19			34			(208	)		(282	)			(331	)	NM				(17	%)		(211	)			(787	)	NM
Total revenues		4,395			3,571			4,483			2,725				2,587			(41	%)		(5	%)		14,064				13,366			(5	%)
BENEFITS AND EXPENSES
Benefits, losses and loss adjustment expenses [1]		2,656			1,868			2,958			1,213				1,108			(58	%)		(9	%)		8,040				7,147			(11	%)
Amortization of deferred policy acquisition costs and present value of future profits		469			342			336			(10	)			339			(28	%)	NM				1,411				1,007			(29	%)
Insurance operating costs and other expenses		733			767			801			811				851			16	%		5	%		2,708				3,230			19	%
Total benefits and expenses		3,858			2,977			4,095			2,014				2,298			(40	%)		14	%		12,159				11,384			(6	%)
CORE EARNINGS
Core earnings before income taxes		518			560			596			993				620			20	%		(38	%)		2,116				2,769			31	%
Income tax expense		124			142			161			311				163			31	%		(48	%)		511				777			52	%
Core earnings		394			418			435			682				457			16	%		(33	%)		1,605				1,992			24	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		(35	)		20			(117	)		(157	)			(180	)	NM				(15	%)		(164	)			(434	)		(165	%)
Net income		359			438			318			525				277			(23	%)		(47	%)		1,441				1,558			8	%

[1] Includes dividend income and mark-to-market effects of trading securities supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.

L - 2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
TOTAL ASSETS UNDER MANAGEMENT

												Year Over
												Year			Sequential
	Dec. 31,		March 31,		June 30,		Sept. 30,			Dec. 31,		3 Month			3 Month
TOTAL ASSETS UNDER MANAGEMENT	2006		2007		2007		2007		2007			Change			Change
Assets
General account	$	103,092	$	107,517	$	109,802	$	114,310		$	116,230		13	%		2	%
Separate account		180,484		181,726		191,814		197,877			199,946		11	%		1	%
Total assets		283,576		289,243		301,616		312,187			316,176		11	%		1	%
Mutual fund assets		43,732		46,428		51,812		54,631			55,531		27	%		2	%
Total assets under management	$	327,308	$	335,671	$	353,428	$	366,818		$	371,707		14	%		1	%

L - 3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
CONSOLIDATED BALANCE SHEETS

																Year Over
																Year			Sequential
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month
	2006			2007			2007			2007			2007			Change			Change
Investments
Fixed maturities, available-for-sale, at fair value	$	52,081		$	52,747		$	52,824		$	53,288		$	52,542			1	%		(1	%)
Equity securities, trading, at fair value		29,393			30,805			31,843			34,901			36,182			23	%		4	%
Equity securities, available-for-sale, at fair value		811			1,298			1,387			1,307			1,284			58	%		(2	%)
Policy loans, at outstanding balance		2,051			2,099			2,052			2,050			2,061			—			1	%
Mortgage loans on real estate		2,909			3,509			4,236			4,551			4,739			63	%		4	%
Short term Investments		1,092			1,195			958			629			1,158			6	%		84	%
Other investments		1,075			1,263			1,290			1,425			1,840			71	%		29	%
Total investments		89,412			92,916			94,590			98,151			99,806			12	%		2	%
Cash		1,199			1,561			1,434			1,769			1,770			48	%		—
Premiums receivable and agents’ balances		424			455			413			403			427			1	%		6	%
Reinsurance recoverables		1,106			1,112			1,165			1,235			1,419			28	%		15	%
Deferred policy acquisition costs and present value of future profits		9,070			9,158			9,516			10,275			10,514			16	%		2	%
Deferred income taxes		(717	)		(763	)		(510	)		(724	)		(754	)		(5	%)		(4	%)
Goodwill		796			805			805			805			805			1	%		—
Property and equipment, net		248			257			358			372			374			51	%		1	%
Other assets		1,554			2,016			2,031			2,024			1,869			20	%		(8	%)
Separate account assets		180,484			181,726			191,814			197,877			199,946			11	%		1	%
Total assets	$	283,576		$	289,243		$	301,616		$	312,187		$	316,176			11	%		1	%
Future policy benefits, unpaid losses and loss adjustment expenses	$	14,016		$	14,255		$	14,630		$	15,007		$	15,331			9	%		2	%
Other policyholder funds and benefits payable		71,311			73,465			74,796			78,925			80,342			13	%		2	%
Unearned premiums		103			124			132			141			147			43	%		4	%
Consumer Notes		258			435			588			723			809		NM				12	%
Debt		—			—			114			114			115			—			1	%
Other liabilities		5,840			8,378			8,639			8,011			8,045			38	%		—
Separate account liabilities		180,484			181,726			191,814			197,877			199,946			11	%		1	%
Total liabilities		272,012			278,383			290,713			300,798			304,735			12	%		1	%
Equity excluding AOCI, net of tax		11,177			10,483			11,025			11,619			11,868			6	%		2	%
AOCI, net of tax		387			377			(122	)		(230	)		(427	)	NM				(86	%)
Total stockholders’ equity		11,564			10,860			10,903			11,389			11,441			(1	%)		—
Total liabilities and stockholders’ equity	$	283,576		$	289,243		$	301,616		$	312,187		$	316,176			11	%		1	%
						��
Hartford Life and Accident Insurance Company NAIC RBC		387	%
Hartford Life Insurance Company NAIC RBC		463	%
Hartford Life and Annuity Insurance Company NAIC RBC		1108	%

L - 4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
DEFERRED POLICY ACQUISITION COSTS and PRESENT VALUE OF FUTURE PROFITS

				Other						Institutional
	Individual			Retail Products			Retirement			Solutions			Individual			Group
	Annuity			Group			Plans			Group			Life			Benefits			International			Total
YEAR-TO-DATE
Balance, December 31, 2006	$	4,560		$	120		$	542		$	111		$	2,111		$	117		$	1,509		$	9,070
Adjustments to unrealized gains and losses on securities available — for — sale and other		17			—			(2	)		—			47			—			3			65
Balance excluding adjustments to unrealized gains and losses on securities available — for — sale and other		4,577			120			540			111			2,158			117			1,512			9,135
Cumulative effect of accounting changes (SOP 05-1) (Pre-tax)		(16	)		—			(4	)								(59	)					(79	)
Capitalization		844			101			139			50			367			73			485			2,059
Amortization — Deferred Policy Acquisition Costs		(714	)		(86	)		(39	)		(25	)		(156	)		(62	)		(240	)		(1,322	)
Amortization — Present Value of Future Profits		(1	)		—			—			—			(7	)		—			—			(8	)
Amortization — Realized Capital Gains		118			—			(5	)		—			5			—			1			119
Amortization — Unlock		279			(2	)		(14	)		2			37			—			25			327
Effect of Currency Translation Adjustment		—																		118			118
Balance, December 31, 2007		5,087			133			617			138			2,404			69			1,901			10,349
Adjustments to unrealized gains and losses on securities available — for — sale and other		92			3			41			5			2			—			22			165
Balance, December 31, 2007 including adjustments to unrealized gains and losses on securities available-for-sale and other	$	5,179		$	136		$	658		$	143		$	2,406		$	69		$	1,923		$	10,514

				Other						Institutional
	Individual			Retail Products			Retirement			Solutions			Individual			Group								HFSG			Total
Effect of Unlock [2] - September 30, 2007	Annuity			Group			Plans			Group			Life			Benefits		International			Total Life			Corporate [1]			Company
Mutual Fund and Other Fees	$	(8	)	$	—		$	—		$	—		$	(13	)	$	—	$	—		$	(21	)	$	—		$	(21	)
Reinsurance Premiums		—			—			—			—			—			—		—			—			—			—
Death Benefits		6			—			—			—			—			—		(9	)		(3	)		—			(3	)
Sales Inducements		(14	)		—			—			—			—			—		—			(14	)		—			(14	)
Amortization of deferred policy acquisition costs and present value of future profits		(279	)		2			14			(2	)		(37	)		—		(25	)		(327	)		—			(327	)
Other Expenses		—			—			—			—			—			—		—			—			(5	)		(5	)
Effect of Unlock on Income before income taxes		279			(2	)		(14	)		2			24			—		34			323			5			328
Income tax expense (benefit)		98			(1	)		(5	)		1			8			—		12			113			2			115
Effect of Unlock on Net Income		181			(1	)		(9	)		1			16			—		22			210			3			213
Less; net realized gains (losses), net of tax and DAC, excluded from core earnings		(17	)		—			—			—			—			—		—			(17	)		—			(17	)
Effect of Unlock on Core Earnings	$	198		$	(1	)	$	(9	)	$	1		$	16		$	—	$	22		$	227		$	3		$	230

[1]	In HFSG Corporate, revisions to estimated gross profits affect the purchase accounting adjustments made in connection with the buyback of Hartford Life, Inc. shares in 2000.
[2]	For purposes of this schedule increases to revenue amounts are positive; increases to expense amounts are positive; and increases to income before taxes, net income and core earnings are positive.

L - 5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
SUPPLEMENTAL DATA — ANNUITY DEATH AND INCOME BENEFITS

	December 31, 2007
	ACCOUNT		NET AMT AT		% of NAR
BREAKDOWN OF VARIABLE ANNUITY ACCOUNT VALUE BY BENEFIT TYPE	VALUE		RISK		REINSURED			RETAINED NAR
Maximum anniversary value (MAV) [1] MAV only	$	47,463	$	3,557		88	%	$	419
with 5% rollup [2]		3,360		285		76	%		67
with Earnings Protection Benefit Rider (EPB) [3]		5,463		530		84	%		85
with 5% rollup & EPB		1,333		155		81	%		30
Total MAV		57,619		4,527		87	%		601
Asset Protection Benefit (APB) [4]		42,489		446		46	%		242
Lifetime Income Benefit (LIB) — Death Benefit [5]		10,273		25		—	%		25
Reset [6] (5-7 years)		6,132		80		—	%		80
Return of Premium [7]/Other		10,321		28		—	%		28
SUBTOTAL U.S. GUARANTEED MINIMUM DEATH BENEFITS	$	126,834	$	5,106		81	%	$	976
JAPAN GUARANTEED MINIMUM DEATH AND INCOME BENEFITS [8]		35,793		649		35	%		419
TOTAL	$	162,627	$	5,755		76	%	$	1,395

	As of		As of		As of		As of		As of
	December 31,		March 31,		June 30,		September 30,		December 31,
OTHER DATA	2006		2007		2007		2007		2007
U.S. VARIABLE ANNUITY BUSINESS
S&P500 Index Value at end of period		1,418.30		1,420.86		1,503.35		1,526.75		1,468.36
Total Account Value	$	121,807	$	122,858	$	129,260	$	130,943	$	126,834
Retained net amount of risk		824		782		701		670		976
GMDB net GAAP liability [9]		159		166		175		191		202
JAPAN VARIABLE ANNUITY BUSINESS
Total Account Value	$	29,653	$	31,148	$	32,050	$	34,888	$	35,793
Retained net amount of risk		19		35		14		130		419
GMDB/GMIB net GAAP liability [9]		31		34		35		30		34

[1]	MAV: the death benefit is the greatest of current account value, net premiums paid and the highest account value on any anniversary before age 80 (adjusted for withdrawals).
[2]	Rollup: the death benefit is the greatest of the MAV, current account value, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier age 80 or 100% of adjusted premiums.
[3]	EPB: the death benefit is the greatest of the MAV, current account value, or contract value plus a percentage of the contract’s growth. The contract’s growth is account value less premiums net of withdrawals, subject to a cap of 200% of premiums net of withdrawals.
[4]	APB: the death benefit is the greater of current account value or MAV, not to exceed current account value plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months).
[5]	LIB: the death benefit is the greatest of current account value or MAV, net premiums paid, or a benefit amount that rachets over time, generally based on market performance.
[6]	Reset: the death benefit is the greatest of current account value, net premiums paid and the most recent five to seven year anniversary account value before age 80 (adjusted for withdrawals).
[7]	Return of premium: the death benefit is the greater of current account value and net premiums paid.
[8]	Death benefits include a Return of Premium and MAV (before age 80) paid in a single lump sum. The income benefit is a guarantee to return initial investment, which is adjusted for earnings liquidity, paid through a fixed annuity after a minimum deferral period of 10, 15 or 20 years. The guaranteed remaining balance related to the Japan GMIB was $26.8 billion and $22.6 billion as of December 31, 2007 and December 31, 2006 respectively.
[9]	Includes the increase (decrease) to GMDB/GMIB liability as a result of the unlock recorded in the three months ended December 31, 2006 for U.S. and Japan variable annuity business of $18 and ($41), respectively. Includes the increase (decrease) to GMDB/GMIB liability as a result of the unlock recorded in the three months ended September 30, 2007 for U.S. and Japan variable annuity business of $6 and ($9), respectively.

L - 6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
REINSURANCE RECOVERABLE ANALYSIS
As of September 30, 2007

Statutory Reserve Credit and Amounts Recoverable

Gross statutory reinsurance reserve credit	$	1,940
Liability for reinsurance in unauthorized companies		(9	)
Net statutory reinsurance reserve credit	$	1,931
Statutory amounts recoverable from reinsurers	$	162

The top ten reinsurers represent $1,905 or 91% of the total statutory reserve credit and amounts recoverable.

• 4% of this amount is with reinsurers rated “A++” by A.M. Best at January 11, 2008.

• 63% of this amount is with reinsurers rated “A+” by A.M. Best at January 11, 2008.

• 31% of this amount is with reinsurers rated “A-” by A.M. Best at January 11, 2008.

• 2% of this amount is with reinsurers rated “B++” by A.M. Best at January 11, 2008.

L - 7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
STATUTORY SURPLUS TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

	September 30, 2007			December 31, 2006
Statutory Capital and Surplus	$	4,897		$	4,734
GAAP Adjustments
Investment in subsidiaries		(42	)		(265	)
Deferred policy acquisition costs		10,275			9,070
Deferred taxes		(976	)		(936	)
Benefit reserves		(3,648	)		(3,425	)
Unrealized gains on investments, net of impairments		204			1,214
Asset valuation reserve and interest maintenance reserve		656			686
Goodwill		645			585
Other, net		(622	)		(99	)
GAAP Stockholders’ Equity	$	11,389		$	11,564

L - 8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP — INDIVIDUAL ANNUITY
INCOME STATEMENTS

																	Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,				Dec. 31,			3 Month			3 Month			DECEMBER 31,
Revenues	2006			2007			2007			2007			2007				Change			Change			2006			2007				Change
Premiums and other considerations
Variable annuity fees	$	503		$	507		$	542		$	548			$	554			10	%		1	%	$	1,913			$	2,151			12	%
Mutual fund and other fees [2]		36			37			36			28				37			3	%		32	%		131				138			5	%
Total fee income		539			544			578			576				591			10	%		3	%		2,044				2,289			12	%
Direct premiums		5			14			21			24				22		NM				(8	%)		54				81			50	%
Reinsurance premiums [2]		(33	)		(35	)		(35	)		(37	)			(36	)		(9	%)		3	%		(140	)			(143	)		(2	%)
Net premiums		(28	)		(21	)		(14	)		(13	)			(14	)		50	%		(8	%)		(86	)			(62	)		28	%
Total premiums and other considerations		511			523			564			563				577			13	%		2	%		1,958				2,227			14	%
Net investment income
Net investment income on G/A assets		222			227			229			237				226			2	%		(5	%)		917				919			—
Net investment income on assigned capital		16			11			12			12				12			(25	%)		—			63				47			(25	%)
Charge for invested capital		(38	)		(38	)		(38	)		(39	)			(35	)		8	%		10	%		(143	)			(150	)		(5	%)
Total net investment income		200			200			203			210				203			2	%		(3	%)		837				816			(3	%)
Net realized capital gains — core		2			1			1			1				3			50	%	NM				7				6			(14	%)
Total core revenues		713			724			768			774				783			10	%		1	%		2,802				3,049			9	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		(5	)		16			(147	)		(175	)			(81	)	NM				54	%		(92	)			(387	)	NM
Total revenues		708			740			621			599				702			(1	%)		17	%		2,710				2,662			(2	%)
Benefits and Expenses
Benefits and losses
Death benefits [2]		30			12			10			16				11			(63	%)		(31	%)		57				49			(14	%)
Other contract benefits		15			15			15			18				17			13	%		(6	%)		75				65			(13	%)
Change in reserve		(6	)		2			13			18				12		NM				(33	%)		2				45		NM
Sales inducements [2]		10			13			16			2				16			60	%	NM				45				47			4	%
Interest credited on G/A assets		159			154			149			156				155			(3	%)		(1	%)		640				614			(4	%)
Total benefits and losses		208			196			203			210				211			1	%		—			819				820			—
Other insurance expenses
Commissions & wholesaling expenses		284			296			316			304				282			(1	%)		(7	%)		1,086				1,198			10	%
Operating expenses		56			51			60			55				61			9	%		11	%		206				227			10	%
Premium taxes and other expenses		(2	)		4			5			1				4		NM			NM				10				14			40	%
Subtotal — expenses before deferral		338			351			381			360				347			3	%		(4	%)		1,302				1,439			11	%
Deferred policy acquisition costs		(206	)		(217	)		(225	)		(212	)			(190	)		8	%		10	%		(808	)			(844	)		(4	%)
Total other insurance expense		132			134			156			148				157			19	%		6	%		494				595			20	%
Amortization of deferred policy acquisition costs [2]		302			184			186			(110	)			178			(41	%)	NM				865				438			(49	%)
Total benefits and expenses		642			514			545			248				546			(15	%)		120	%		2,178				1,853			(15	%)
Core earnings before income taxes		71			210			223			526				237		NM				(55	%)		624				1,196			92	%
Income tax expense (benefit) [1] [2]		(15	)		33			39			161				45		NM				(72	%)		54				278		NM
Core earnings [2]	$	86		$	177		$	184		$	365			$	192			123	%		(47	%)	$	570			$	918			61	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings [2] [3]		(51	)		8			(78	)		(88	)			(13	)		75	%		85	%		(91	)			(171	)		(88	%)
Net Income [2]	$	35		$	185		$	106		$	277			$	179		NM				(35	%)	$	479			$	747			56	%
RETURN ON ASSETS(After-tax bps)
Core earnings		28.4			56.7			57.4			110.3				58.5			106	%		(47	%)		48.7				70.4			45	%
Net Income		11.5			59.3			33.0			83.7				54.5		NM				(35	%)		41.0				57.3			40	%

[1]	The year ended December 31, 2006 includes an additonal $14 of tax benefits related to DRD and foreign tax credit. The three months ended September 30, 2007 and year ended December 31, 2007 include a $12 tax charge related to DRD.
[2]	The DAC unlock recorded in the three months ended December 31, 2006 decreased core earnings and net income by $72 and $118, respectively. The DAC unlock recorded in the three months ended September 30, 2007 increased core earnings and net income by $198 and $181 respectively. The effect on each income statement line item is as follows:

	December 31, 2006			September 30, 2007
Mutual Fund and Other Fees	$	8		$	(8	)
Reinsurance Premiums		3			—
Death Benefits		18			6
Sales Inducements		(4	)		(14	)
Amortization of deferred policy acquisition costs		108			(305	)
Income tax expense (benefit)		(39	)		107
Net realized gains (losses), net of tax and DAC, excluded from core earnings		(46	)		(17	)

[3] Included in the three months ended December 31, 2006, March 31, June 30, September 30, and December 31, 2007 are guaranteed minimum withdrawal benefit (“GMWB”) net realized gains (losses), net of tax and DAC, excluded from core earnings, of $0, $11, $(65), $(68), and $(13) respectively. Included in the year ended December 31, 2006 and 2007 are GMWB net realized gains (losses), net of tax and DAC, excluded from core earnings, of $(12) and $(135), respectively.

L - 9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP — OTHER
INCOME STATEMENTS

																	Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,				Dec. 31,			3 Month			3 Month			DECEMBER 31,
Revenues	2006			2007			2007			2007			2007				Change			Change			2006			2007				Change
Premiums and other considerations
Variable annuity fees	$	3		$	3		$	4		$	4			$	4			33	%		—		$	10			$	15			50	%
Mutual fund and other fees		174			183			199			208				223			28	%		7	%		641				813			27	%
Total fee income		177			186			203			212				227			28	%		7	%		651				828			27	%
Net investment income
Net investment income on G/A assets		—			—			—			(3	)			—			—			100	%		2				(3	)	NM
Net investment income on assigned capital		—			(3	)		(3	)		(2	)			(4	)		—			(100	%)		—				(12	)		—
Total net investment income		—			(3	)		(3	)		(5	)			(4	)		—			20	%		2				(15	)	NM
Net realized capital (losses) — core		—			—			—			—				—			—			—			(2	)			—			100	%
Total core revenues		177			183			200			207				223			26	%		8	%		651				813			25	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		—			—			—			—				—			—			—			—				—			—
Total revenues		177			183			200			207				223			26	%		8	%		651				813			25	%
Benefits and Expenses
Other insurance expenses
Commissions & wholesaling expenses		125			133			146			143				156			25	%		9	%		461				578			25	%
Operating expenses		29			29			33			34				41			41	%		21	%		107				137			28	%
Premium taxes and other expenses		3			4			3			2				3			—			50	%		18				12			(33	%)
Subtotal — expenses before deferral		157			166			182			179				200			27	%		12	%		586				727			24	%
Deferred policy acquisition costs		(24	)		(27	)		(27	)		(22	)			(25	)		(4	%)		(14	%)		(86	)			(101	)		(17	%)
Total other insurance expense		133			139			155			157				175			32	%		11	%		500				626			25	%
Amortization of deferred policy acquisition costs [1]		19			21			21			23				23			21	%		—			63				88			40	%
Total benefits and expenses		152			160			176			180				198			30	%		10	%		563				714			27	%
Core earnings before income taxes		25			23			24			27				25			—			(7	%)		88				99			13	%
Income tax expense [1]		9			8			8			10				8			(11	%)		(20	%)		31				34			10	%
Core earnings [1]	$	16		$	15		$	16		$	17			$	17			6	%		—		$	57			$	65			14	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		—			—			—			—				—			—			—			—				—			—
Net income [1]	$	16		$	15		$	16		$	17			$	17			6	%		—		$	57			$	65			14	%
RETURN ON ASSETS(After-tax bps)
Core earnings		16.6			14.3			14.0			13.8				13.4			(19	%)		(3	%)		16.1				14.2			(12	%)
Net Income		16.6			14.3			14.0			13.8				13.4			(19	%)		(3	%)		16.1				14.2			(12	%)

[1] The DAC unlock recorded in the three months ended September 30, 2007 increased amortization of deferred policy acquisition costs by $1, after-tax.

L - 10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP
SUPPLEMENTAL DATA — DEPOSITS

											Year Over
	THREE MONTHS ENDED										Year			Sequential			YEAR ENDED
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month			DECEMBER 31,
	2006		2007		2007		2007		2007		Change			Change			2006		2007		Change
Individual Annuity
Broker-dealer	$	2,055	$	2,029	$	2,152	$	2,488	$	2,106		2	%		(15	%)	$	8,013	$	8,775		10	%
Banks		1,332		1,430		1,664		1,307		1,148		(14	%)		(12	%)		5,124		5,549		8	%
Total deposits by distribution		3,387		3,459		3,816		3,795		3,254		(4	%)		(14	%)		13,137		14,324		9	%
Variable		3,134		3,256		3,537		3,278		3,126		—			(5	%)		12,134		13,197		9	%
Fixed MVA/other		253		203		279		517		128		(49	%)		(75	%)		1,003		1,127		12	%
Total deposits by product		3,387		3,459		3,816		3,795		3,254		(4	%)		(14	%)		13,137		14,324		9	%
Retail Mutual Funds		3,111		3,647		3,791		3,369		3,549		14	%		5	%		11,142		14,356		29	%
529 College Savings Plan/Specialty Products/Other		179		192		197		152		180		1	%		18	%		599		721		20	%
Total Retail Products Group	$	6,677	$	7,298	$	7,804	$	7,316	$	6,983		5	%		(5	%)	$	24,878	$	29,401		18	%

L - 11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP
SUPPLEMENTAL DATA — ASSETS UNDER MANAGEMENT

											Year Over
											Year			Sequential
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month
	2006		2007		2007		2007		2007		Change			Change
INDIVIDUAL ANNUITY
General account	$	15,430	$	15,218	$	15,100	$	15,191	$	15,100		(2	%)		(1	%)
Non-guaranteed separate account		108,872		110,007		116,320		118,123		114,214		5	%		(3	%)
Total Individual Annuity	$	124,302	$	125,225	$	131,420	$	133,314	$	129,314		4	%		(3	%)
BY PRODUCT
Individual Annuity
Individual Variable Annuities
General account	$	5,630	$	5,461	$	5,354	$	5,075	$	4,995		(11	%)		(2	%)
Non-guaranteed separate account		108,735		109,869		116,175		117,976		114,076		5	%		(3	%)
Total individual variable annuities		114,365		115,330		121,529		123,051		119,071		4	%		(3	%)
Fixed MVA & other individual annuities		9,937		9,895		9,891		10,263		10,243		3	%		—
Total Individual Annuity		124,302		125,225		131,420		133,314		129,314		4	%		(3	%)
Specialty Products/Other — Segregated Assets		525		569		639		671		677		29	%		1	%
Mutual Fund Assets
Retail mutual fund assets		38,536		40,921		45,644		47,785		48,383		26	%		1	%
Specialty Product/Other mutual fund assets		579		663		789		892		937		62	%		5	%
529 College Savings Plan assets		910		966		1,094		1,147		1,176		29	%		3	%
Total Mutual Fund Assets		40,025		42,550		47,527		49,824		50,496		26	%		1	%
Total Retail Products Group Assets Under Management	$	164,852	$	168,344	$	179,586	$	183,809	$	180,487		9	%		(2	%)

L - 12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP
SUPPLEMENTAL DATA — INDIVIDUAL ANNUITY — ACCOUNT VALUE ROLLFORWARD [1]

		THREE MONTHS ENDED
		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,
		2006			2007			2007			2007			2007
VARIABLE ANNUITIES	Beginning balance	$	108,489		$	114,365		$	115,330		$	121,529		$	123,051
	Deposits		3,134			3,256			3,537			3,278			3,126
	Surrenders		(3,444	)		(3,394	)		(3,529	)		(3,471	)		(3,810	)
	Death benefits/annuity payouts		(392	)		(443	)		(434	)		(419	)		(418	)
	Transfers [2]		6			(2	)		7			(21	)		4
	Net Flows		(696	)		(583	)		(419	)		(633	)		(1,098	)
	Change in market value/change in reserve/interest credited		6,568			1,542			6,618			2,155			(2,882	)
	Other [3]		4			6			—			—			—
	Ending balance	$	114,365		$	115,330		$	121,529		$	123,051		$	119,071
FIXED MVA AND OTHER	Beginning balance	$	9,888		$	9,937		$	9,895		$	9,891		$	10,263
	Deposits		253			203			279			517			128
	Surrenders		(258	)		(281	)		(321	)		(227	)		(201	)
	Death benefits/annuity payouts		(103	)		(115	)		(111	)		(96	)		(106	)
	Transfers [2]		33			36			27			53			42
	Net Flows		(75	)		(157	)		(126	)		247			(137	)
	Change in market value/change in reserve/interest credited		124			115			122			125			117
	Ending balance	$	9,937		$	9,895		$	9,891		$	10,263		$	10,243
TOTAL INDIVIDUAL ANNUITY	Beginning balance	$	118,377		$	124,302		$	125,225		$	131,420		$	133,314
	Deposits		3,387			3,459			3,816			3,795			3,254
	Surrenders		(3,702	)		(3,675	)		(3,850	)		(3,698	)		(4,011	)
	Death benefits/annuity payouts		(495	)		(558	)		(545	)		(515	)		(524	)
	Transfers [2]		39			34			34			32			46
	Net Flows		(771	)		(740	)		(545	)		(386	)		(1,235	)
	Change in market value/change in reserve/interest credited		6,692			1,657			6,740			2,280			(2,765	)
	Other [3]		4			6			—			—			—
	Ending balance	$	124,302		$	125,225		$	131,420		$	133,314		$	129,314

[1]	Account value includes policyholder balances for investment contracts and reserves for future policy benefits for insurance contracts.
[2]	Includes internal product exchanges, policyholder balance transfers from the accumulation phase to the annuitization phase, and death benefits remaining on deposit.
[3]	Includes a bonus on certain products, front end loads on A share products and annual maintenance fees.

L - 13

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETAIL PRODUCTS GROUP
SUPPLEMENTAL DATA — OTHER RETAIL — ASSET ROLLFORWARD

		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,
		2006			2007			2007			2007			2007
RETAIL MUTUAL FUNDS
	Beginning balance	$	34,720		$	38,536		$	40,921		$	45,644		$	47,785
	Deposits		3,111			3,647			3,791			3,369			3,549
	Redemptions		(1,564	)		(1,762	)		(2,042	)		(2,718	)		(2,289	)
	Net Sales		1,547			1,885			1,749			651			1,260
	Change in market value		2,296			530			3,004			1,517			(626	)
	Other [1]		(27	)		(30	)		(30	)		(27	)		(36	)
	Ending balance	$	38,536		$	40,921		$	45,644		$	47,785		$	48,383

[1]  Includes front end loads on A share products

L - 14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS
INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
Revenues	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Premiums and other considerations
Variable annuity fees	$	49		$	50		$	56		$	58		$	59			20	%		2	%	$	178		$	223			25	%
Mutual fund and other fees		5			4			3			4			4			(20	%)		—			15			15			—
Total fee income		54			54			59			62			63			17	%		2	%		193			238			23	%
Direct premiums		2			2			1			—			1			(50	%)		—			19			4			(79	%)
Total premiums and other considerations		56			56			60			62			64			14	%		3	%		212			242			14	%
Net investment income
Net investment income on G/A assets		82			85			88			85			85			4	%		—			318			343			8	%
Net investment income on assigned capital		3			3			3			4			3			—			(25	%)		10			13			30	%
Charge for invested capital		(1	)		—			(1	)		—			—			100	%		—			(2	)		(1	)		50	%
Total net investment income		84			88			90			89			88			5	%		(1	%)		326			355			9	%
Net realized capital gains — core		—			—			—			—			—			—			—			—			—			—
Total core revenues		140			144			150			151			152			9	%		1	%		538			597			11	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		(2	)		(3	)		5			(21	)		(22	)	NM				(5	%)		(16	)		(41	)		(156	%)
Total revenues		138			141			155			130			130			(6	%)		—			522			556			7	%
																													��
Benefits and Expenses
Benefits and losses
Death benefits		(1	)		—			(1	)		—			—			100	%		—			—			(1	)		—
Other contract benefits		13			12			12			12			12			(8	%)		—			52			48			(8	%)
Change in reserve		(5	)		(6	)		(5	)		(6	)		(6	)		(20	%)		—			(10	)		(23	)		(130	%)
Sales inducements		—			—			—			—			1			—			—			—			1			—
Interest credited on G/A assets		54			56			56			56			56			4	%		—			208			224			8	%
Total benefits and losses		61			62			62			62			63			3	%		2	%		250			249			—
Other insurance expenses
Commissions & wholesaling expenses		20			23			24			24			24			20	%		—			79			95			20	%
Operating expenses		55			49			54			50			61			11	%		22	%		185			214			16	%
Premium taxes and other expenses		(3	)		1			—			—			(1	)		67	%		—			(3	)		—			100	%
Subtotal — expenses before deferral		72			73			78			74			84			17	%		14	%		261			309			18	%
Deferred policy acquisition costs		(39	)		(33	)		(33	)		(34	)		(39	)		—			(15	%)		(125	)		(139	)		(11	%)
Total other insurance expense		33			40			45			40			45			36	%		13	%		136			170			25	%
Amortization of deferred policy acquisition costs [1]		(20	)		11			7			25			12		NM				(52	%)		1			55		NM
Total benefits and expenses		74			113			114			127			120			62	%		(6	%)		387			474			22	%
Core earnings before income taxes		66			31			36			24			32			(52	%)		33	%		151			123			(19	%)
Income tax expense [1]		21			8			10			6			10			(52	%)		67	%		43			34			(21	%)
Core Earnings [1]	$	45		$	23		$	26		$	18		$	22			(51	%)		22	%	$	108		$	89			(18	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings		(1	)		(1	)		2			(14	)		(15	)	NM				(7	%)		(7	)		(28	)	NM
Net Income [1]	$	44		$	22		$	28		$	4		$	7			(84	%)		75	%	$	101		$	61			(40	%)
RETURN ON ASSETS(After-tax bps)
Core earnings		75.9			36.3			38.9			25.7			30.8			(59	%)		20	%		47.8			33.4			(30	%)
Net Income		74.2			34.7			41.8			5.7			9.8			(87	%)		72	%		44.7			22.9			(49	%)

[1] The DAC unlock recorded in the three months ended December 31, 2006 and September 30, 2007 increased/(decreased) both core earnings and net income by $20 and $(9), respectively. The effect on each income statement line item is as follows:

	December 31, 2006			September 30, 2007
Amortization of deferred policy acquisition costs	$	(31	)	$	14
Income tax expense		11			(5	)

L - 15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS
SUPPLEMENTAL DATA — DEPOSITS

											Year Over
	THREE MONTHS ENDED										Year			Sequential			YEAR ENDED
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month			DECEMBER 31,
	2006		2007		2007		2007		2007		Change			Change			2006		2007		Change
401(k)
Annuity — plan/participant rollovers	$	430	$	786	$	421	$	467	$	460		7	%		(1	%)	$	1,988	$	2,134		7	%
Annuity — ongoing contributions		427		497		553		504		511		20	%		1	%		1,677		2,065		23	%
Total 401(k) Annuity		857		1,283		974		971		971		13	%		—			3,665		4,199		15	%
Mutual funds		86		120		96		94		108		26	%		15	%		394		418		6	%
Total 401(k)		943		1,403		1,070		1,065		1,079		14	%		1	%		4,059		4,617		14	%
403(b)/457
Annuity — plan/participant rollovers		359		89		72		79		102		(72	%)		29	%		671		342		(49	%)
Annuity — ongoing contributions		222		236		222		247		235		6	%		(5	%)		881		940		7	%
Total 403(b)/457 Annuity		581		325		294		326		337		(42	%)		3	%		1,552		1,282		(17	%)
Mutual funds		—		—		6		6		7		—			17	%		—		19		—
Total 403(b)/457		581		325		300		332		344		(41	%)		4	%		1,552		1,301		(16	%)
Total Retirement Plans	$	1,524	$	1,728	$	1,370	$	1,397	$	1,423		(7	%)		2	%	$	5,611	$	5,918		5	%

L - 16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS
SUPPLEMENTAL DATA — ASSETS UNDER MANAGEMENT

											Year Over		��
											Year			Sequential
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month
	2006		2007		2007		2007		2007		Change			Change
401(k)
General account	$	1,317	$	1,351	$	1,303	$	1,314	$	1,298		(1	%)		(1	%)
Non-guaranteed separate account		10,718		11,628		12,755		13,371		13,433		25	%		—
Total 401(k) — Annuity account value	$	12,035	$	12,979	$	14,058	$	14,685	$	14,731		22	%		—
Mutual fund assets [1]		1,140		1,209		1,320		1,389		1,428		25	%		3	%
Total 401(k) Assets Under Management	$	13,175	$	14,188	$	15,378	$	16,074	$	16,159		23	%		1	%
403(b)/457
General account	$	4,577	$	4,586	$	4,564	$	4,610	$	4,627		1	%		—
Non-guaranteed separate account		6,963		7,167		7,633		7,876		7,736		11	%		(2	%)
Total 403(b)/457 - Annuity account value	$	11,540	$	11,753	$	12,197	$	12,486	$	12,363		7	%		(1	%)
Mutual fund assets		—		—		9		20		26		—			30	%
Total 403(b)/457 Assets Under Management	$	11,540	$	11,753	$	12,206	$	12,506	$	12,389		7	%		(1	%)
TOTAL RETIREMENT
General account	$	5,894	$	5,937	$	5,867	$	5,924	$	5,925		1	%		—
Non-guaranteed separate account		17,681		18,795		20,388		21,247		21,169		20	%		—
Total Retirement Plans account value	$	23,575	$	24,732	$	26,255	$	27,171	$	27,094		15	%		—
Mutual fund assets		1,140		1,209		1,329		1,409		1,454		28	%		3	%
Total Retirement Plans Assets Under Management	$	24,715	$	25,941	$	27,584	$	28,580	$	28,548		16	%		—

[1] 401K mutual fund assets are predominantly comprised of The Hartford’s 401k plan.

L - 17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS
SUPPLEMENTAL DATA — ACCOUNT VALUE ROLLFORWARD [1]

		THREE MONTHS ENDED
		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,
		2006			2007			2007			2007			2007
401(k)
(EXCLUDING ALL MUTUAL FUNDS)	Beginning balance	$	11,004		$	12,035		$	12,979		$	14,058		$	14,685
	Deposits		857			1,283			974			971			971
	Surrenders		(475	)		(531	)		(550	)		(599	)		(673	)
	Death benefits/annuity payouts		(7	)		(13	)		(7	)		(10	)		(8	)
	Net Flows		375			739			417			362			290
	Change in market value/change in reserve/interest credited		656			205			662			265			(244	)
	Ending balance	$	12,035		$	12,979		$	14,058		$	14,685		$	14,731
403(b)/457
(EXCLUDING ALL MUTUAL FUNDS)	Beginning balance	$	10,691		$	11,540		$	11,753		$	12,197		$	12,486
	Deposits		581			325			294			326			337
	Surrenders		(231	)		(272	)		(399	)		(306	)		(393	)
	Death benefits/annuity payouts		(17	)		(15	)		(12	)		(12	)		(12	)
	Net Flows		333			38			(117	)		8			(68	)
	Change in market value/change in reserve/interest credited		516			175			561			281			(55	)
	Ending balance	$	11,540		$	11,753		$	12,197		$	12,486		$	12,363

[1] Account value includes policyholder balances for investment contracts and reserves for future policy benefits for insurance contracts.

L - 18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INSTITUTIONAL SOLUTIONS GROUP
INCOME STATEMENTS

																	Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,				Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007				2007			2007			Change			Change			2006			2007			Change
Revenues
Premiums and other considerations
Variable annuity fees	$	18		$	19		$	13			$	20		$	21			17	%		5	%	$	65		$	73			12	%
Cost of insurance charges		12			12			20				20			10			(17	%)		(50	%)		37			62			68	%
Mutual fund and other fees		8			30			20				57			9			13	%		(84	%)		23			116		NM
Total fee income		38			61				53			97			40			5	%		(59	%)		125			251			101	%
Direct premiums		105			168				191			411			217			107	%		(47	%)		607			987			63	%
Total premiums and other considerations		143			229				244			508			257			80	%		(49	%)		732			1,238			69	%
Net investment income
Net investment income on G/A assets		270			284				299			311			312			16	%		—			984			1,206			23	%
Net investment income on assigned capital		5			7				9			9			9			80	%		—			20			34			70	%
Charge for invested capital		(1	)		—				—			—			1		NM				—			(1	)		1		NM
Total net investment income		274			291				308			320			322			18	%		1	%		1,003			1,241			24	%
Net realized capital gains — core		—			—				—			1			1			—			—			1			2			100	%
Total core revenues		417			520				552			829			580			39	%		(30	%)		1,736			2,481			43	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		27			(3	)			(20	)		(47	)		(120	)	NM				(155	%)		(38	)		(190	)	NM
Total revenues		444			517				532			782			460			4	%		(41	%)		1,698			2,291			35	%
Benefits and Expenses
Benefits and losses
Death benefits		13			12				26			22			11			(15	%)		(50	%)		41			71			73	%
Other contract benefits		93			97				103			107			117			26	%		9	%		345			424			23	%
Change in reserve		96			154				174			396			192			100	%		(52	%)		576			916			59	%
Interest credited on G/A assets		145			154				171			167			171			18	%		2	%		522			663			27	%
Total benefits and losses		347			417				474			692			491			41	%		(29	%)		1,484			2,074			40	%
Other insurance expenses
Commissions & wholesaling expenses		15			15				18			15			15			—			—			46			63			37	%
Operating expenses		20			18				19			19			23			15	%		21	%		69			79			14	%
Premium taxes and other expenses		12			24				6			56			7			(42	%)		(88	%)		25			93		NM
Subtotal — expenses before deferral		47			57				43			90			45			(4	%)		(50	%)		140			235			68	%
Deferred policy acquisition costs		(22	)		(19	)			(13	)		(9	)		(9	)		59	%		—			(62	)		(50	)		19	%
Total other insurance expense		25			38				30			81			36			44	%		(56	%)		78			185			137	%
Amortization of deferred policy acquisition costs [1]		10			15				2			2			4			(60	%)		100	%		32			23			(28	%)
Total benefits and expenses		382			470				506			775			531			39	%		(31	%)		1,594			2,282			43	%
Core earnings before income taxes		35			50				46			54			49			40	%		(9	%)		142			199			40	%
Income tax expense		10			15				14			16			14			40	%		(13	%)		39			59			51	%
Core Earnings [1]	$	25		$	35			$	32		$	38		$	35			40	%		(8	%)	$	103		$	140			36	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		17			(2	)			(13	)		(30	)		(78	)	NM				(160	%)		(25	)		(123	)	NM
Net Income [1]	$	42		$	33			$	19		$	8		$	(43	)		(58	%)	NM			$	78		$	17			(78	%)
RETURN ON ASSETS(After-tax bps)
Core earnings		20.2			26.8				23.3			26.1			23.0			14	%		(12	%)		21.9			24.9			14	%
Net Income		33.9			25.2				13.8			5.5			(28.2	)	NM			NM				16.6			3.0			(82	%)

[1] The DAC unlock recorded in the three months ended September 30, 2007 decreased amortization of deferred policy acquisition costs by $1, after-tax.

L - 19

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INSTITUTIONAL SOLUTIONS GROUP
SUPPLEMENTAL DATA — DEPOSITS

											Year Over
	THREE MONTHS ENDED										Year			Sequential			YEAR ENDED
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month			DECEMBER 31,
	2006		2007		2007		2007		2007		Change			Change			2006		2007		Change
Institutional
Structured settlements	$	162	$	278	$	286	$	235	$	267		65	%		14	%	$	623	$	1,066		71	%
Institutional annuities		27		5		43		257		10		(63	%)		(96	%)		273		315		15	%
Guaranteed interest products		874		855		784		831		115		(87	%)		(86	%)		2,774		2,585		(7	%)
Other		235		51		158		58		114		(51	%)		97	%		503		381		(24	%)
Subtotal		1,298		1,189		1,271		1,381		506		(61	%)		(63	%)		4,173		4,347		4	%
Mutual funds		286		309		298		571		504		76	%		(12	%)		1,152		1,682		46	%
Total Institutional		1,584		1,498		1,569		1,952		1,010		(36	%)		(48	%)		5,325		6,029		13	%
Private Placement Life Insurance
Corporate owned		549		1,390		786		2,569		450		(18	%)		(82	%)		1,006		5,195	NM
Private clients		10		7		3		10		4		(60	%)		(60	%)		45		24		(47	%)
Total Private Placement Life Insurance		559		1,397		789		2,579		454		(19	%)		(82	%)		1,051		5,219	NM
Total Institutional Solutions Group	$	2,143	$	2,895	$	2,358	$	4,531	$	1,464		(32	%)		(68	%)	$	6,376	$	11,248		76	%

L - 20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INSTITUTIONAL SOLUTIONS GROUP
SUPPLEMENTAL DATA — ASSETS UNDER MANAGEMENT

											Year Over
											Year			Sequential
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month
	2006		2007		2007		2007		2007		Change			Change
INSTITUTIONAL
General account	$	17,249	$	18,166	$	18,899	$	19,701	$	19,731		14	%		—
Guaranteed separate account		417		416		407		413		421		1	%		2	%
Non-guaranteed separate account		4,548		4,577		4,821		4,927		4,951		9	%		—
Total Institutional account value		22,214		23,159		24,127		25,041		25,103		13	%		—
Mutual fund assets		2,567		2,669		2,956		3,398		3,581		40	%		5	%
Total Institutional Assets Under Management	$	24,781	$	25,828	$	27,083	$	28,439	$	28,684		16	%		1	%
PRIVATE PLACEMENT LIFE INSURANCE
General account	$	7	$	59	$	3	$	2	$	4		(43	%)		100	%
Non-guaranteed separate account		26,124		27,780		29,050		32,039		32,788		26	%		2	%
Total Private Placement Life Insurance account value		26,131		27,839		29,053		32,041		32,792		25	%		2	%
TOTAL INSTITUTIONAL SOLUTIONS GROUP
General account	$	17,256	$	18,225	$	18,902	$	19,703	$	19,735		14	%		—
Guaranteed separate account		417		416		407		413		421		1	%		2	%
Non-guaranteed separate account		30,672		32,357		33,871		36,966		37,739		23	%		2	%
Total Institutional Solutions Group account value		48,345		50,998		53,180		57,082		57,895		20	%		1	%
Mutual fund assets		2,567		2,669		2,956		3,398		3,581		40	%		5	%
Total Institutional Solutions Group Assets Under Management	$	50,912	$	53,667	$	56,136	$	60,480	$	61,476		21	%		2	%
BY PRODUCT
Institutional
Structured settlements	$	5,267	$	5,543	$	5,827	$	6,063	$	6,322		20	%		4	%
Institutional annuities		2,849		2,838		2,866		3,114		3,113		9	%		—
Guaranteed interest products		9,308		9,946		10,363		10,676		10,421		12	%		(2	%)
Other		4,790		4,832		5,071		5,188		5,247		10	%		1	%
Total Institutional		22,214		23,159		24,127		25,041		25,103		13	%		—
Private Placement Life Insurance		26,131		27,839		29,053		32,041		32,792		25	%		2	%
Total Institutional Solutions Group account value		48,345		50,998		53,180		57,082		57,895		20	%		1	%
Institutional Mutual Fund Assets		2,567		2,669		2,956		3,398		3,581		40	%		5	%
Total Institutional Solutions Group Assets Under Management	$	50,912	$	53,667	$	56,136	$	60,480	$	61,476		21	%		2	%

L - 21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INSTITUTIONAL SOLUTIONS GROUP
SUPPLEMENTAL DATA — ACCOUNT VALUE AND ASSET ROLLFORWARD [1]

		THREE MONTHS ENDED
		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,
		2006			2007			2007			2007			2007
INSTITUTIONAL
(EXCLUDING ALL MUTUAL FUNDS)	Beginning balance	$	21,010		$	22,214		$	23,159		$	24,127		$	25,041
	Deposits		1,298			1,189			1,271			1,381			506
	Surrenders		(420	)		(411	)		(562	)		(730	)		(572	)
	Death benefits/annuity payouts		(140	)		(151	)		(147	)		(150	)		(161	)
	Net Flows		738			627			562			501			(227	)
	Change in market value/change in reserve/interest credited		466			318			406			413			289
	Ending balance	$	22,214		$	23,159		$	24,127		$	25,041		$	25,103
PRIVATE PLACEMENT LIFE INSURANCE
	Beginning balance	$	25,125		$	26,131		$	27,839		$	29,053		$	32,041
	Deposits		559			1,397			789			2,579			454
	Surrenders		(4	)		(3	)		(1	)		(2	)		(29	)
	Death benefits/annuity payouts		(14	)		(27	)		(18	)		(11	)		(27	)
	Net Flows		541			1,367			770			2,566			398
	Change in market value/change in reserve/interest credited		469			398			495			462			372
	Other [2]		(4	)		(57	)		(51	)		(40	)		(19	)
	Ending balance	$	26,131		$	27,839		$	29,053		$	32,041		$	32,792

[1]	Account value includes policyholder balances for investment contracts and reserves for future policy benefits for insurance contracts.
[2]	Primarily consists of cost of insurance and M&E charges.

L - 22

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INDIVIDUAL LIFE
INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Revenues
Premiums and other considerations
Variable life fees	$	17		$	17		$	19		$	19		$	20			18	%		5	%	$	66		$	75			14	%
Cost of insurance charges		128			130			132			134			137			7	%		2	%		498			533			7	%
Other fees [1]		131			68			66			53			75			(43	%)		42	%		321			262			(18	%)
Total fee income		276			215			217			206			232			(16	%)		13	%		885			870			(2	%)
Direct premiums		26			25			28			28			30			15	%		7	%		95			111			17	%
Reinsurance premiums		(43	)		(40	)		(41	)		(42	)		(50	)		(16	%)		(19	%)		(148	)		(173	)		(17	%)
Net premiums		(17	)		(15	)		(13	)		(14	)		(20	)		(18	%)		(43	%)		(53	)		(62	)		(17	%)
Total premiums and other considerations		259			200			204			192			212			(18	%)		10	%		832			808			(3	%)
Net investment income
Net investment income on G/A assets		87			89			91			92			94			8	%		2	%		341			366			7	%
Net investment income on assigned capital		3			3			3			3			3			—			—			11			12			9	%
Charge for invested capital		(6	)		(5	)		(5	)		(4	)		(5	)		17	%		(25	%)		(28	)		(19	)		32	%
Total net investment income		84			87			89			91			92			10	%		1	%		324			359			11	%
Net realized capital (losses) — core		(1	)		—			(1	)		—			—			100	%		—			(1	)		(1	)		—
Total core revenues		342			287			292			283			304			(11	%)		7	%		1,155			1,166			1	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		(4	)		9			(2	)		(16	)		(18	)		NM			(13	%)		(24	)		(27	)		(13	%)
Total revenues		338			296			290			267			286			(15	%)		7	%		1,131			1,139			1	%
Benefits and Expenses
Benefits and losses
Death benefits		57			70			74			78			76			33	%		(3	%)		251			298			19	%
Other contract benefits		7			6			6			6			6			(14	%)		—			27			24			(11	%)
Change in reserve		(4	)		(3	)		(5	)		(4	)		1		NM			NM				(18	)		(11	)		39	%
Interest credited on G/A assets		62			63			61			63			64			3	%		2	%		237			251			6	%
Total benefits and losses		122			136			136			143			147			20	%		3	%		497			562			13	%
Other insurance expenses
Commissions & wholesaling expenses		66			59			59			58			69			5	%		19	%		239			245			3	%
Operating expenses		69			63			64			65			71			3	%		9	%		251			263			5	%
Dividends to policyholders		1			1			—			1			1			—			—			3			3			—
Premium taxes and other expenses		10			12			13			8			16			60	%		100	%		42			49			17	%
Subtotal — expenses before deferral		146			135			136			132			157			8	%		19	%		535			560			5	%
Deferred policy acquisition costs		(99	)		(87	)		(87	)		(88	)		(105	)		(6	%)		(19	%)		(356	)		(367	)		(3	%)
Total other insurance expense		47			48			49			44			52			11	%		18	%		179			193			8	%
Amortization of deferred policy acquisition costs and present value of future profits [1]		132			36			42			1			48			(64	%)	NM				242			127			(48	%)
Total benefits and expenses		301			220			227			188			247			(18	%)		31	%		918			882			(4	%)
Core earnings before income taxes		41			67			65			95			57			39	%		(40	%)		237			284			20	%
Income tax expense [1]		12			21			19			31			17			42	%		(45	%)		71			88			24	%
Core earnings [1] [2]	$	29		$	46		$	46		$	64		$	40			38	%		(38	%)	$	166		$	196			18	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		(2	)		6			(2	)		(9	)		(9	)	NM				—			(16	)		(14	)		13	%
Net income [1] [2]	$	27		$	52		$	44		$	55		$	31			15	%		(44	%)	$	150		$	182			21	%
Earnings Margin(After-tax)
Core earnings		8.5	%		16.0	%		15.8	%		22.6	%		13.2	%		4.70			(9.40	)		14.4	%		16.8	%		2.40
Net Income		8.0	%		17.6	%		15.2	%		20.6	%		10.8	%		2.80			(9.80	)		13.3	%		16.0	%		2.70

[1] The DAC unlock recorded in the three months ended December 31, 2006 and September 30, 2007 (decreased)/increased both core earnings and net income by $(18) and $16, respectively. The effect on each income statement line item is as follows:

	December 31, 2006			September 30, 2007
Other Fees	$	48		$	(13	)
Amortization of deferred policy acquisition costs		76			(37	)
Income tax expense (benefit)		(10	)		8

[2] The three months ended December 31, 2007 includes an additional SOP 03-1 reserve of $5, after the effects of DAC amortization and taxes, related to the implementation of the Company’s AG38 capital solution.

L - 23

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INDIVIDUAL LIFE
SUPPLEMENTAL DATA

											Year Over
	THREE MONTHS ENDED										Year			Sequential			YEAR ENDED
	Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,		3 Month			3 Month			DECEMBER 31,
	2006		2007		2007		2007		2007		Change			Change			2006		2007		Change
SALES BY DISTRIBUTION
Wirehouse/regional broker-dealer	$	28	$	20	$	27	$	26	$	30		7	%		15	%	$	86	$	103		20	%
Banks		14		10		10		11		13		(7	%)		18	%		41		44		7	%
Independent broker-dealer/WFS		24		14		17		17		22		(8	%)		29	%		74		70		(5	%)
Life professional/other		23		16		14		15		24		4	%		60	%		83		69		(17	%)
Total sales by distribution	$	89	$	60	$	68	$	69	$	89		—			29	%	$	284	$	286		1	%
SALES. BY PRODUCT
Variable life	$	36	$	26	$	33	$	33	$	38		6	%		15	%	$	115	$	130		13	%
Universal life/whole life		47		30		29		31		46		(2	%)		48	%		150		136		(9	%)
Term life/other		6		4		6		5		5		(17	%)		—			19		20		5	%
Total sales by product	$	89	$	60	$	68	$	69	$	89		—			29	%	$	284	$	286		1	%
ACCOUNT VALUE
General account	$	5,233	$	5,334	$	5,413	$	5,486	$	5,591		7	%		2	%
Separate account		6,138		6,244		6,692		6,884		6,758		10	%		(2	%)
Total account value	$	11,371	$	11,578	$	12,105	$	12,370	$	12,349		9	%		—
ACCOUNT VALUE BY PRODUCT
Variable life	$	6,637	$	6,754	$	7,206	$	7,402	$	7,284		10	%		(2	%)
Universal life/interest sensitive whole life		4,035		4,126		4,208		4,285		4,388		9	%		2	%
Modified guaranteed life		584		580		573		564		555		(5	%)		(2	%)
Other		115		118		118		119		122		6	%		3	%
Total account value by product	$	11,371	$	11,578	$	12,105	$	12,370	$	12,349		9	%		—
LIFE INSURANCE IN FORCE
Variable life	$	73,770	$	74,439	$	75,496	$	76,498	$	77,566		5	%		1	%
Universal life/interest sensitive whole life		45,230		46,013		46,750		47,581		48,636		8	%		2	%
Term life		44,175		46,053		48,536		50,641		52,298		18	%		3	%
Modified guaranteed life		727		718		702		687		671		(8	%)		(2	%)
Other		325		323		319		316		312		(4	%)		(1	%)
Total life insurance in force	$	164,227	$	167,546	$	171,803	$	175,723	$	179,483		9	%		2	%

L - 24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INDIVIDUAL LIFE
ACCOUNT VALUE ROLLFORWARD

		THREE MONTHS ENDED
		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,
		2006			2007			2007			2007			2007
VARIABLE LIFE	Beginning balance	$	6,242		$	6,637		$	6,754		$	7,206		$	7,402
	First year & single premiums		86			77			87			92			93
	Renewal premiums		143			156			140			134			155
	Premiums and deposits		229			233			227			226			248
	Surrenders		(114	)		(86	)		(89	)		(77	)		(91	)
	Death benefits		(10	)		(24	)		(14	)		(18	)		(13	)
	Net Flows		105			123			124			131			144
	Policy fees		(121	)		(124	)		(125	)		(127	)		(130	)
	Change in market value/interest credited		411			118			453			192			(132	)
	Ending balance	$	6,637		$	6,754		$	7,206		$	7,402		$	7,284
OTHER [1]	Beginning balance	$	4,635		$	4,734		$	4,824		$	4,899		$	4,968
	First year & single premiums		126			111			105			97			111
	Renewal premiums		114			119			109			115			126
	Premiums and deposits		240			230			214			212			237
	Surrenders		(59	)		(53	)		(52	)		(54	)		(43	)
	Death benefits		(19	)		(23	)		(21	)		(20	)		(25	)
	Net Flows		162			154			141			138			169
	Policy fees		(117	)		(120	)		(122	)		(125	)		(129	)
	Change in market value/interest credited		54			56			56			56			57
	Ending balance	$	4,734		$	4,824		$	4,899		$	4,968		$	5,065
TOTAL INDIVIDUAL LIFE	Beginning balance	$	10,877		$	11,371		$	11,578		$	12,105		$	12,370
	First year & single premiums		212			188			192			189			204
	Renewal premiums		257			275			249			249			281
	Premiums and deposits		469			463			441			438			485
	Surrenders		(173	)		(139	)		(141	)		(131	)		(134	)
	Death benefits		(29	)		(47	)		(35	)		(38	)		(38	)
	Net Flows		267			277			265			269			313
	Policy fees		(238	)		(244	)		(247	)		(252	)		(259	)
	Change in market value/interest credited		465			174			509			248			(75	)
	Ending balance	$	11,371		$	11,578		$	12,105		$	12,370		$	12,349

[1] Includes Universal Life, Interest Sensitive Whole Life, Modified Guaranteed Life Insurance and other.

L - 25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
GROUP BENEFITS
INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Revenues
Premiums and other considerations
ASO fees	$	9		$	8		$	9		$	8		$	9			—			13	%	$	37		$	34			(8	%)
Other fees		—			1			(1	)		—			1			—			—			—			1			—
Total fee income		9			9			8			8			10			11	%		25	%		37			35			(5	%)
Direct premiums		993			1,027			1,030			996			1,015			2	%		2	%		3,869			4,068			5	%
Reinsurance premiums		55			49			53			57			39			(29	%)		(32	%)		243			198			(19	%)
Net premiums		1,048			1,076			1,083			1,053			1,054			1	%		—			4,112			4,266			4	%
Total premiums and other considerations		1,057			1,085			1,091			1,061			1,064			1	%		—			4,149			4,301			4	%
Net investment income
Net investment income on G/A assets		92			99			98			96			96			4	%		—			365			389			7	%
Net investment income on assigned capital		13			19			19			19			19			46	%		—			50			76			52	%
Total net investment income		105			118			117			115			115			10	%		—			415			465			12	%
Net realized capital gains — core		1			—			—			3			4		NM				33	%		1			7		NM
Total core revenues		1,163			1,203			1,208			1,179			1,183			2	%		—			4,565			4,773			5	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		—			2			(6	)		(13	)		(20	)		—			(54	%)		(14	)		(37	)		(164	%)
Total revenues		1,163			1,205			1,202			1,166			1,163			—			—			4,551			4,736			4	%
Benefits and Expenses
Benefits and losses
Death benefits		268			266			267			265			261			(3	%)		(2	%)		1,035			1,059			2	%
Other contract benefits [1]		470			479			479			475			497			6	%		5	%		1,804			1,930			7	%
Change in reserve [1]		12			61			47			25			(13	)	NM			NM				163			120			(26	%)
Total benefits and losses		750			806			793			765			745			(1	%)		(3	%)		3,002			3,109			4	%
Other insurance expenses
Commissions & wholesaling expenses		142			156			147			135			144			1	%		7	%		561			582			4	%
Operating expenses		144			133			129			137			150			4	%		9	%		526			549			4	%
Premium taxes and other expenses		18			20			9			22			22			22	%		—			78			73			(6	%)
Subtotal — expenses before deferral		304			309			285			294			316			4	%		7	%		1,165			1,204			3	%
Deferred policy acquisition costs		(22	)		(20	)		(11	)		(21	)		(21	)		5	%		—			(64	)		(73	)		(14	%)
Total other insurance expense		282			289			274			273			295			5	%		8	%		1,101			1,131			3	%
Amortization of deferred policy acquisition costs		11			17			18			13			14			27	%		8	%		41			62			51	%
Total benefits and expenses		1,043			1,112			1,085			1,051			1,054			1	%		—			4,144			4,302			4	%
Core earnings before income taxes		120			91			123			128			129			8	%		1	%		421			471			12	%
Income tax expense		32			23			37			36			37			16	%		3	%		114			133			17	%
Core earnings	$	88		$	68		$	86		$	92		$	92			5	%		—		$	307		$	338			10	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		—			1			(3	)		(9	)		(12	)		—			(33	%)		(9	)		(23	)		(156	%)
Net income	$	88		$	69		$	83		$	83		$	80			(9	%)		(4	%)	$	298		$	315			6	%
After-Tax Profit as % of Revenues
Core Earnings		7.6	%		5.7	%		7.2	%		7.8	%		7.8	%		0.20			—			6.8	%		7.1	%		0.30
Net Income		7.6	%		5.8	%		7.0	%		7.1	%		6.9	%		(0.70	)		(0.20	)		6.6	%		6.7	%		0.10

[1] During the three months ended December 31, 2007, a reserve commutation of approximately $30 reduced change in reserve and correspondingly increased other contract benefits upon settlement.

L - 26

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
GROUP BENEFITS
SUPPLEMENTAL DATA

																	Year Over
		THREE MONTHS ENDED															Year			Sequential						YEAR ENDED
		Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month						DECEMBER 31,
		2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
PREMIUMS	Fully Insured — Ongoing Premiums
	Group disability	$	457		$	470		$	463		$	459		$	466			2	%		2	%	$	1,800		$	1,858			3	%
	Group life		458			473			483			482			488			7	%		1	%		1,830			1,926			5	%
	Other		126			122			122			112			99			(21	%)		(12	%)		470			455			(3	%)
	Total fully insured — ongoing premiums		1,041			1,065			1,068			1,053			1,053			1	%		—			4,100			4,239			3	%
	Total buyouts [1]		7			11			15			—			1			(86	%)		—			12			27			125	%
	Total premiums		1,048			1,076			1,083			1,053			1,054			1	%		—			4,112			4,266			4	%
	Group disability — premium equivalents [2]		90			85			84			85			78			(13	%)		(8	%)		334			332			(1	%)
	Total premiums and premium equivalents	$	1,138		$	1,161		$	1,167		$	1,138		$	1,132			(1	%)		(1	%)	$	4,446		$	4,598			3	%
SALES (GROSS	Fully Insured — Ongoing Sales
ANNUALIZED	Group disability	$	39		$	177		$	40		$	54		$	54			38	%		—		$	316		$	325			3	%
NEW PREMIUMS)	Group life [3]		55			156			66			67			75			36	%		12	%		429			364			(15	%)
	Other		17			53			13			4			11			(35	%)		175	%		116			81			(30	%)
	Total fully insured — ongoing sales		111			386			119			125			140			26	%		12	%		861			770			(11	%)
	Total buyouts [1]		—			2			24			—			—			—			—			5			26		NM
	Total sales		111			388			143			125			140			26	%		12	%		866			796			(8	%)
	Group disability premium equivalents [2]		6			54			13			22			17			183	%		(23	%)		110			106			(4	%)
	Total sales and premium equivalents	$	117		$	442		$	156		$	147		$	157			34	%		7	%	$	976		$	902			(8	%)
RATIOS [3]	Loss Ratio		70.8	%		74.0	%		72.3	%		72.1	%		70.0	%		(0.8	)		(2.1	)		72.3	%		72.1	%		(0.2	)
	Expense Ratio		27.9	%		28.5	%		27.1	%		27.0	%		29.1	%		1.2			2.1			27.6	%		27.9	%		0.3
GAAP RESERVES [4]	Group disability	$	4,535		$	4,590		$	4,652		$	4,667		$	4,616			2	%		(1	%)
	Group life		1,269			1,276			1,269			1,281			1,315			4	%		3	%
	Other		173			178			168			168			176			2	%		5	%
	Total GAAP reserves	$	5,977		$	6,044		$	6,089		$	6,116		$	6,107			2	%		—

[1]	Takeover of open claim liabilities and other non-recurring premium amounts.
[2]	Administrative services only (ASO) fees and claims under claim management agreements.
[3]	Ratios calculated excluding the effects of buyout premiums.
[4]	Reserve balances are net of reinsurance recoverables of $236, $230, $219, $221, and $261 as of 4Q 2006, 1Q 2007, 2Q 2007, 3Q 2007, and 4Q 2007 respectively.

L - 27

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INTERNATIONAL
HIGHLIGHTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Months			3 Months			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
CORE EARNINGS
Japan operations	$	111		$	62		$	63		$	88		$	68			(39	%)		(23	%)	$	268		$	281			5	%
Other international operations		(10	)		(7	)		(4	)		(9	)		(7	)		30	%		22	%		(21	)		(27	)		(29	%)
Core earnings	$	101		$	55		$	59		$	79		$	61			(40	%)		(23	%)		247			254			3	%
JAPAN DEPOSITS — Dollars
Individual Annuity
Variable	$	1,167		$	1,678		$	1,754		$	1,803		$	1,086			(7	%)		(40	%)	$	5,833		$	6,321			8	%
Fixed MVA		36			28			12			24			20			(44	%)		(17	%)		274			84			(69	%)
Total deposits by product	$	1,203		$	1,706		$	1,766		$	1,827		$	1,106			(8	%)		(39	%)	$	6,107		$	6,405			5	%
JAPAN DEPOSITS — Yen
Individual Annuity
Variable	¥	137,283		¥	199,523		¥	211,961		¥	212,415		¥	122,808			(11	%)		(42	%)	¥	679,548		¥	746,707			10	%
Fixed MVA		4,216			3,391			1,393			2,792			2,293			(46	%)		(18	%)		31,850			9,869			(69	%)
Total deposits by product	¥	141,499		¥	202,914		¥	213,354		¥	215,207		¥	125,101			(12	%)		(42	%)	¥	711,398		¥	756,576			6	%
JAPAN NET FLOWS — Dollars																	��
Individual Annuity
Variable	$	695		$	1,184		$	1,282		$	1,386		$	646			(7	%)		(53	%)	$	4,169		$	4,498			8	%
Fixed MVA		23			13			(3	)		12			5			(78	%)		(58	%)		224			27			(88	%)
Total net flows by product	$	718		$	1,197		$	1,279		$	1,398		$	651			(9	%)		(53	%)	$	4,393		$	4,525			3	%
JAPAN NET FLOWS — Yen
Individual Annuity
Variable	¥	81,749		¥	140,557		¥	154,811		¥	163,067		¥	73,035			(11	%)		(55	%)	¥	485,597		¥	531,470			9	%
Fixed MVA		2,679			1,621			(443	)		1,354			636			(76	%)		(53	%)		26,520			3,168			(88	%)
Total net flows by product	¥	84,428		¥	142,178		¥	154,368		¥	164,421		¥	73,671			(13	%)		(55	%)	¥	512,117		¥	534,638			4	%
JAPAN AUM — Dollars
Individual Annuity
Variable	$	29,653		$	31,148		$	32,050		$	34,888		$	35,793			21	%		3	%
Fixed MVA		1,690			1,723			1,658			1,785			1,844			9	%		3	%
Total AUM by product	$	31,343		$	32,871		$	33,708		$	36,673		$	37,637			20	%		3	%
JAPAN AUM — Yen
Individual Annuity
Variable	¥	3,533,426		¥	3,677,972		¥	3,958,157		¥	4,012,693		¥	3,998,563			13	%		—
Fixed MVA		201,362			203,489			204,729			205,275			206,028			2	%		—
Total AUM by product	¥	3,734,788		¥	3,881,461		¥	4,162,886		¥	4,217,968		¥	4,204,591			13	%		—

L - 28

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INTERNATIONAL — JAPAN
INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			March 31,			June 30,			Sept. 30,			Dec. 31,			3 Month			3 Month						DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006				2007			Change
Revenues
Premiums and other considerations
Variable annuity fees	$	171		$	174		$	185		$	197		$	209			22	%		6	%	$	641			$	765			19	%
Other fees		17			18			14			13			15			(12	%)		15	%		65				60			(8	%)
Total fee income		188			192			199			210			224			19	%		7	%		706				825			17	%
Reinsurance premiums		(2	)		(3	)		(2	)		(3	)		(3	)		(50	%)		—			(8	)			(11	)		(38	%)
Total premiums and other considerations		186			189			197			207			221			19	%		7	%		698				814			17	%
Net investment income
Net investment income on G/A assets		28			28			29			31			29			4	%		(6	%)		102				117			15	%
Net investment income on assigned capital		—			1			1			—			1			—			—			—				3			—
Total net investment income		28			29			30			31			30			7	%		(3	%)		102				120			18	%
Net realized capital (losses) — core		(18	)		(17	)		(19	)		(16	)		(16	)		11	%		—			(63	)			(68	)		(8	%)
Total core revenues		196			201			208			222			235			20	%		6	%		737				866			18	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		1			(3	)		(24	)		17			(33	)	NM			NM				(25	)			(43	)		(72	%)
Total revenues		197			198			184			239			202			3	%		(15	%)		712				823			16	%
Benefits and Expenses
Benefits and losses
Death and other benefits [1]		(37	)		2			2			(6	)		6		NM			NM				(18	)			4		NM
Sales inducements		—			—			—			1			—			—			(100	%)		—				1			—
Interest credited on G/A assets		5			6			6			6			7			40	%		17	%		21				25			19	%
Total benefits and losses		(32	)		8			8			1			13		NM			NM				3				30		NM
Other insurance expenses
Commissions & wholesaling expenses		84			113			112			120			78			(7	%)		(35	%)		391				423			8	%
Operating expenses		37			33			38			46			50			35	%		9	%		141				167			18	%
Premium taxes and other expenses		6			9			9			6			7			17	%		17	%		30				31			3	%
Subtotal — expenses before deferral		127			155			159			172			135			6	%		(22	%)		562				621			10	%
Deferred policy acquisition costs		(84	)		(113	)		(115	)		(121	)		(80	)		5	%		34	%		(402	)			(429	)		(7	%)
Total other insurance expense		43			42			44			51			55			28	%		8	%		160				192			20	%
Amortization of deferred policy acquisition costs [1]		15			56			59			34			62		NM				82	%		166				211			27	%
Total benefits and expenses		26			106			111			86			130		NM				51	%		329				433			32	%
Core earnings before income taxes		170			95			97			136			105			(38	%)		(23	%)		408				433			6	%
Income tax expense [1]		59			33			34			48			37			(37	%)		(23	%)		140				152			9	%
Core earnings [1]	$	111		$	62		$	63		$	88		$	68			(39	%)		(23	%)	$	268			$	281			5	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		1			(2	)		(16	)		10			(20	)	NM			NM				(16	)			(28	)		(75	%)
Net income [1]	$	112		$	60		$	47		$	98		$	48			(57	%)		(51	%)	$	252			$	253			—
RETURN ON ASSETS(After-tax bps)
Core earnings		144.9			77.2			75.7			100.0			73.2			(49	%)		(27	%)		93.3				81.5			(13	%)
Net Income		146.2			74.8			56.5			111.4			51.7			(65	%)		(54	%)		87.7				73.4			(16	%)

[1] The DAC unlock recorded in the three months ended December 31, 2006 and September 30, 2007 increased both core earnings and net income by $53 and $22, respectively. The effect on each income statement line item is as follows:

	December 31, 2006			September 30, 2007
Death and other benefits	$	(41	)	$	(9	)
Amortization of deferred policy acquisition costs		(41	)		(25	)
Income tax expense		29			12

L - 29

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INTERNATIONAL — JAPAN
SUPPLEMENTAL DATA — ACCOUNT VALUE ROLLFORWARD — Dollars

			THREE MONTHS ENDED
			Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,
			2006		2007		2007		2007		2007
VARIABLE ANNUITIES		Beginning balance	$28,265		$29,653		$31,148		$32,050		$34,888
	Deposits/Premiums/other		1,167		1,678		1,754		1,803		1,086
	Surrenders		(389	)	(394	)	(364	)	(309	)	(321	)
	Death benefits/annuitizations/other		(83	)	(100	)	(108	)	(108	)	(119	)
	Net Flows		695		1,184		1,282		1,386		646
	Change in market value/currency/change in reserve/interest credited		975		29		1,045		(893	)	(801	)
	Effect of currency translation		(282	)	282		(1,425	)	2,345		1,060
		Ending balance	$29,653		$31,148		$32,050		$34,888		$35,793
FIXED MVA AND OTHER		Beginning balance	$1,676		$1,690		$1,723		$1,658		$1,785
	Deposits/Premiums/other		36		28		12		24		20
	Surrenders		(7	)	(9	)	(8	)	(4	)	(8	)
	Death benefits/annuitizations/other		(6	)	(6	)	(7	)	(8	)	(7	)
	Net Flows		23		13		(3)		12		5
	Change in market value/currency/change in reserve/interest credited		7		4		14		(7	)	1
	Effect of currency translation		(16	)	16		(76	)	122		53
		Ending balance	$1,690		$1,723		$1,658		$1,785		$1,844
TOTAL JAPAN		Beginning balance	$29,941		$31,343		$32,871		$33,708		$36,673
	Deposits/Premiums/other		1,203		1,706		1,766		1,827		1,106
	Surrenders		(396	)	(403	)	(372	)	(313	)	(329	)
	Death benefits/annuitizations/other		(89	)	(106	)	(115	)	(116	)	(126	)
	Net Flows		718		1,197		1,279		1,398		651
	Change in market value/change in reserve/interest credited		982		33		1,059		(900	)	(800	)
	Effect of currency translation		(298	)	298		(1,501	)	2,467		1,113
		Ending balance	$31,343		$32,871		$33,708		$36,673		$37,637

L - 30

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INTERNATIONAL — JAPAN
SUPPLEMENTAL DATA — ACCOUNT VALUE ROLLFORWARD — Yen

			THREE MONTHS ENDED
			Dec. 31,		March 31,		June 30,		Sept. 30,		Dec. 31,
			2006		2007		2007		2007		2007
VARIABLE ANNUITIES		Beginning balance	¥3,337,133		¥3,533,426		¥3,677,972		¥3,958,157		¥4,012,693
	Deposits/Premiums/other		137,283		199,523		211,961		212,415		122,808
	Surrenders		(45,724	)	(47,094	)	(44,092	)	(36,607	)	(36,261	)
	Death benefits/annuitizations/other		(9,810	)	(11,872	)	(13,058	)	(12,741	)	(13,512	)
	Net Flows		81,749		140,557		154,811		163,067		73,035
	Change in market value/change in reserve/interest credited		114,544		3,989		125,374		(108,531	)	(87,165	)
												��
		Ending balance	3,533,426		3,677,972		3,958,157		4,012,693		3,998,563
FIXED MVA AND OTHER		Beginning balance	197,811		201,362		203,489		204,729		205,275
	Deposits/Premiums/other		4,216		3,391		1,393		2,792		2,293
	Surrenders		(875	)	(1,098	)	(992	)	(529	)	(904	)
	Death benefits/annuitizations/other		(662	)	(672	)	(844	)	(909	)	(753	)
	Net Flows		2,679		1,621		(443)		1,354		636
	Change in market value/change in reserve/interest credited		687		693		723		753		767
	Effect of currency translation on USD Fixed Annuity products		185		(187	)	960		(1,561	)	(650	)
		Ending balance	201,362		203,489		204,729		205,275		206,028
TOTAL JAPAN		Beginning balance	3,534,944		3,734,788		3,881,461		4,162,886		4,217,968
	Deposits/Premiums/other		141,499		202,914		213,354		215,207		125,101
	Surrenders		(46,599	)	(48,192	)	(45,084	)	(37,136	)	(37,165	)
	Death benefits/annuitizations/other		(10,472	)	(12,544	)	(13,902	)	(13,650	)	(14,265	)
	Net Flows		84,428		142,178		154,368		164,421		73,671
	Change in market value/change in reserve/interest credited		115,231		4,682		126,097		(107,778)		(86,398)
	Effect of currency translation on USD Fixed Annuity products		185		(187	)	960		(1,561	)	(650	)
		Ending balance	¥3,734,788		¥3,881,461		¥4,162,886		¥4,217,968		¥4,204,591

L - 31

PROPERTY & CASUALTY

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
FINANCIAL HIGHLIGHTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
TOTAL PROPERTY & CASUALTY PREMIUMS
Written premiums	$	2,625		$	2,622		$	2,675		$	2,630		$	2,513			(4	%)		(4	%)	$	10,662		$	10,440			(2	%)
Earned premiums		2,628			2,623			2,622			2,628			2,623			—			—			10,433			10,496			1	%
TOTAL PROPERTY & CASUALTY UNDERWRITING RESULTS
Personal Lines		108			130			84			78			30			(72	%)		(62	%)		429			322			(25	%)
Small Commercial		133			84			101			119			204			53	%		71	%		422			508			20	%
Middle Market		37			33			34			22			55			49	%		150	%		207			144			(30	%)
Specialty Commercial		13			46			(2	)		6			(55	)	NM			NM				53			(5	)	NM
Ongoing Operations underwriting results		291			293			217			225			234			(20	%)		4	%		1,111			969			(13	%)
Other Operations [1]		(17	)		(24	)		(120	)		(43	)		(23	)		(35	%)		47	%		(366	)		(210	)		43	%
Total Property & Casualty underwriting results	$	274		$	269		$	97		$	182		$	211			(23	%)		16	%	$	745		$	759			2	%
ONGOING OPERATIONS UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [2]		61.5			61.9			63.6			64.5			65.2			(3.7	)		(0.7	)		62.4			63.8			(1.4	)
Current accident year catastrophes		1.4			1.1			2.0			1.2			2.5			(1.1	)		(1.3	)		1.9			1.7			0.2
Prior accident years [3]		(0.8	)		0.2			(0.5	)		(0.4	)		(4.8	)		4.0			4.4			(0.6	)		(1.4	)		0.8
Total losses and loss adjustment expenses		62.1			63.1			65.1			65.3			62.8			(0.7	)		2.5			63.7			64.1			(0.4	)
Expenses		27.1			25.5			26.3			25.9			27.3			(0.2	)		(1.4	)		25.6			26.3			(0.7	)
Policyholder dividends [4]		(0.3	)		0.2			0.4			0.2			0.9			(1.2	)		(0.7	)		0.1			0.4			(0.3	)
Combined ratio		88.9			88.8			91.7			91.4			91.1			(2.2	)		0.3			89.3			90.8			(1.5	)
Catastrophes
Current year		1.4			1.1			2.0			1.2			2.5			(1.1	)		(1.3	)		1.9			1.7			0.2
Prior year		0.1			(0.2	)		0.1			0.3			0.2			(0.1	)		0.1			(0.7	)		0.1			(0.8	)
Catastrophe ratio		1.5			0.9			2.1			1.5			2.6			(1.1	)		(1.1	)		1.2			1.8			(0.6	)
Combined ratio before catastrophes		87.4			87.9			89.6			89.9			88.4			(1.0	)		1.5			88.1			89.0			(0.9	)
Combined ratio before catastrophes and prior year development [3]		88.3			87.6			90.2			90.6			93.4			(5.1	)		(2.8	)		88.0			90.5			(2.5	)
Total Property & Casualty Income and ROE
Net income	$	498		$	461		$	344		$	353		$	349			(30	%)		(1	%)	$	1,519		$	1,507			(1	%)
Core earnings	$	448		$	448		$	362		$	405		$	414			(8	%)		2	%	$	1,475		$	1,629			10	%
Core earnings ROE (last 12 months income-equity x-AOCI)
Ongoing Operations					24.3	%		23.4	%		23.7	%		23.2	%					(0.5	)
Other Operations					(9.2	%)		3.4	%		5.2	%		4.4	%					(0.8	)
Total Property & Casualty		19.2	%		20.9	%		21.5	%		21.9	%		21.4	%		2.2			(0.5	)

	PROPERTY & CASUALTY
	Dec. 31,		Dec. 31,
	2006		2007		Change
Selected Financial Data
Total Property and Casualty adjusted statutory surplus ($ in billions)	$	8.2	$	8.5	$	0.3
Total Property and Casualty premium to adjusted surplus ratio		1.3		1.2		(0.1	)

[1]	The year ended December 31, 2006 included a $243 charge as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The three months ended June 30, 2007 included a $99 charge principally as a result of an adverse arbitration decision.
[2]	The three months ended December 31, 2006 included a current accident year reserve release, totaling 2.2 points, related to Personal Lines auto liability claims, Small Commercial and Middle Market workers’ compensation claims and Small Commercial package business. The three months ended June 30, 2007 included current accident year reserve strengthening, totaling 0.4 points, related to Personal Lines auto liability claims. The three months ended December 31, 2007 included current accident year reserve strengthening, totaling 0.5 points, primarily related to strengthening of reserves for Personal Lines auto liability claims and Small Commercial package business, partially offset by a release of reserves for Small Commercial and Middle Market workers’ compensation claims.
[3]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.
[4]	Included in policyholder dividends for the three months ended December 31, 2007 was a 0.8 point increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.

PC-1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
OPERATING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
TOTAL PROPERTY & CASUALTY UNDERWRITING RESULTS
Written premiums	$	2,625		$	2,622		$	2,675		$	2,630		$	2,513			(4	%)		(4	%)	$	10,662		$	10,440			(2	%)
Change in unearned premium reserve		(3	)		(1	)		53			2			(110	)	NM			NM				229			(56	)	NM
Earned premiums		2,628			2,623			2,622			2,628			2,623			—			—			10,433			10,496			1	%
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,615			1,625			1,664			1,695			1,708			6	%		1	%		6,507			6,692			3	%
Current accident year catastrophes		35			28			52			32			65			86	%		103	%		199			177			(11	%)
Prior accident years [2]		(5	)		22			104			28			(106	)	NM			NM				296			48			(84	%)
Total losses and loss adjustment expenses		1,645			1,675			1,820			1,755			1,667			1	%		(5	%)		7,002			6,917			(1	%)
Underwriting expenses [3]		716			675			695			686			721			1	%		5	%		2,677			2,777			4	%
Dividends to policyholders [4]		(7	)		4			10			5			24		NM			NM				9			43		NM
Underwriting results		274			269			97			182			211			(23	%)		16	%		745			759			2	%
Net servicing income		8			11			14			16			11			38	%		(31	%)		53			52			(2	%)
Net investment income		405			413			446			407			421			4	%		3	%		1,486			1,687			14	%
Periodic net coupon settlements on credit derivatives, before-tax		2			3			3			5			4			100	%		(20	%)		4			15		NM
Other expenses [5]		(55	)		(60	)		(58	)		(64	)		(67	)		(22	%)		(5	%)		(223	)		(249	)		(12	%)
Income tax expense		(186	)		(188	)		(140	)		(141	)		(166	)		11	%		(18	%)		(590	)		(635	)		(8	%)
Core earnings		448			448			362			405			414			(8	%)		2	%		1,475			1,629			10	%
Add: Net realized capital gains (losses), after-tax [6] [7]		50			13			(18	)		(52	)		(65	)	NM				(25	%)		44			(122	)	NM
Net income	$	498		$	461		$	344		$	353		$	349			(30	%)		(1	%)	$	1,519		$	1,507			(1	%)
Total Property & Casualty effective tax rate — net income		23.3	%		29.7	%		27.6	%		24.2	%		27.4	%		4.1			3.2			26.6	%		27.5	%		0.9
Total Property & Casualty effective tax rate — core earnings		29.4	%		29.5	%		27.9	%		25.8	%		28.7	%		(0.7	)		2.9			28.6	%		28.0	%		(0.6	)

[1]	The three months ended December 31, 2006 included a current accident year reserve release of $58, related to Personal Lines auto liability claims, Small Commercial and Middle Market workers’ compensation claims and Small Commercial package business. The three months ended June 30, 2007 included current accident year reserve strengthening of $10, related to Personal Lines auto liability claims. The three months ended December 31, 2007 included current accident year reserve strengthening of $13, primarily related to strengthening of reserves for Personal Lines auto liability claims and Small Commercial package business, partially offset by a release of reserves for Small Commercial and Middle Market workers’ compensation claims.
[2]	The year ended December 31, 2006 included a $243 charge as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The three months ended June 30, 2007 included a $99 charge principally as a result of an adverse arbitration decision. The three months ended December 31, 2007 included $110 of reserve releases related to Small Commercial workers’ compensation claims.
[3]	The year ended December 31, 2006 included a reduction to the Citizens’ assessment of $41. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $12 for the year ended December 31, 2006 including $4 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007 and September 30, 2007 included Citizens’ assessment recoupments of $1.
[4]	Included in policyholder dividends for the three months ended December 31, 2007 was a $20 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[5]	The three months ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007 included $14, $12, $12 and $11 of interest charged by Corporate on the amount of capital held by the Property and Casualty operation in excess of the amount needed to support the capital requirements of the Property and Casualty operation.
[6]	The three months ended December 31, 2006 included a $25 after-tax gain on the sale of Omni. Realized capital losses for 2007 are primarily driven by fixed maturity impairments, changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments, partially offset by other investment gains.
[7]	Includes those net realized capital gains (losses) not included in core earnings.

PC-2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
ONGOING OPERATIONS
OPERATING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
ONGOING OPERATIONS UNDERWRITING RESULTS
Written premiums	$	2,623		$	2,622		$	2,674		$	2,628		$	2,511			(4	%)		(4	%)	$	10,658		$	10,435			(2	%)
Change in unearned premium reserve		(2	)		(1	)		53			2			(110	)	NM			NM				230			(56	)	NM
Earned premiums		2,625			2,623			2,621			2,626			2,621			—			—			10,428			10,491			1	%
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,615			1,625			1,664			1,695			1,708			6	%		1	%		6,507			6,692			3	%
Current accident year catastrophes		35			28			52			32			65			86	%		103	%		199			177			(11	%)
Prior accident years [2]		(21	)		4			(12	)		(11	)		(126	)	NM			NM				(64	)		(145	)		(127	%)
Total losses and loss adjustment expenses		1,629			1,657			1,704			1,716			1,647			1	%		(4	%)		6,642			6,724			1	%
Underwriting expenses [3]		712			669			690			680			716			1	%		5	%		2,666			2,755			3	%
Dividends to policyholders [4]		(7	)		4			10			5			24		NM			NM				9			43		NM
Underwriting results		291			293			217			225			234			(20	%)		4	%		1,111			969			(13	%)
Net servicing income		8			11			14			16			11			38	%		(31	%)		53			52			(2	%)
Net investment income		339			351			385			346			357			5	%		3	%		1,225			1,439			17	%
Periodic net coupon settlements on credit derivatives, before-tax		2			3			3			5			4			100	%		(20	%)		4			15		NM
Other expenses [5]		(54	)		(60	)		(56	)		(63	)		(69	)		(28	%)		(10	%)		(222	)		(248	)		(12	%)
Income tax expense		(174	)		(178	)		(165	)		(138	)		(155	)		11	%		(12	%)		(644	)		(636	)		1	%
Core earnings		412			420			398			391			382			(7	%)		(2	%)		1,527			1,591			4	%
Add: Net realized capital gains (losses), after-tax [6] [7]		38			9			(14	)		(50	)		(59	)	NM				(18	%)		27			(114	)	NM
Net income	$	450		$	429		$	384		$	341		$	323			(28	%)		(5	%)	$	1,554		$	1,477			(5	%)
Ongoing Operations effective tax rate — net income		22.6	%		29.9	%		29.1	%		24.5	%		27.6	%		5.0			3.1			27.7	%		28.0	%		0.3
Ongoing Operations effective tax rate — core earnings		29.6	%		29.8	%		29.3	%		26.1	%		28.9	%		(0.7	)		2.8			29.6	%		28.6	%		(1.0	)

[1]	The three months ended December 31, 2006 included a current accident year reserve release of $58, related to Personal Lines auto liability claims, Small Commercial and Middle Market workers’ compensation claims and Small Commercial package business. The three months ended June 30, 2007 included current accident year reserve strengthening of $10, related to Personal Lines auto liability claims. The three months ended December 31, 2007 included current accident year reserve strengthening of $13, primarily related to strengthening of reserves for Personal Lines auto liability claims and Small Commercial package business, partially offset by a release of reserves for Small Commercial and Middle Market workers’ compensation claims.
[2]	The year ended December 31, 2006 included a net release of catastrophe reserves of $70, primarily related to the 2004 and 2005 hurricanes, a net reserve release of $58 related to allocated loss adjustment expense reserves on workers’ compensation and package business in Small Commercial and a $35 strengthening of construction defects claim reserves in Specialty Commercial. The three months ended December 31, 2007 included $110 of reserve releases related to Small Commercial workers’ compensation claims.
[3]	The year ended December 31, 2006 included a reduction to the Citizens’ assessment of $41. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $12 for the year ended December 31, 2006 including $4 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007 and September 30, 2007 included Citizens’ assessment recoupments of $1.
[4]	Included in policyholder dividends for the three months ended December 31, 2007 was a $20 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[5]	The three months ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007 included $14, $12, $12 and $11 of interest charged by Corporate on the amount of capital held by the Property and Casualty operation in excess of the amount needed to support the capital requirements of the Property and Casualty operation.
[6]	The three months ended December 31, 2006 included a $25 after-tax gain on the sale of Omni. Realized capital losses for 2007 are primarily driven by fixed maturity impairments, changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments, partially offset by other investment gains.
[7]	Includes those net realized capital gains (losses) not included in core earnings.

PC-3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
ONGOING OPERATIONS CONSOLIDATING UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2007

	Personal			Small			Middle			Specialty			Ongoing
	Lines			Commercial			Market			Commercial			Operations
UNDERWRITING RESULTS
Written premiums	$	934		$	649		$	591		$	337		$	2,511
Change in unearned premium reserve		(51	)		(39	)		19			(39	)		(110	)
Earned premiums		985			688			572			376			2,621
Losses and loss adjustment expenses
Current accident year before catastrophes		696			392			378			242			1,708
Current accident year catastrophes		50			3			6			6			65
Prior accident years		(19	)		(130	)		(41	)		64			(126	)
Total losses and loss adjustment expenses		727			265			343			312			1,647
Underwriting expenses		228			208			169			111			716
Dividends to policyholders		—			11			5			8			24
Underwriting results	$	30		$	204		$	55		$	(55	)	$	234
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes		70.5			56.9			66.1			64.9			65.2
Current accident year catastrophes		5.1			0.4			1.0			1.5			2.5
Prior accident years [1]		(1.9	)		(18.8	)		(7.1	)		16.6			(4.8	)
Total losses and loss adjustment expenses		73.8			38.6			59.9			83.0			62.8
Expenses		23.2			30.2			29.6			29.4			27.3
Policyholder dividends		—			1.6			0.8			2.3			0.9
Combined ratio		97.0			70.4			90.3			114.7			91.1
Catastrophes
Current year		5.1			0.4			1.0			1.5			2.5
Prior year		0.1			—			0.5			0.1			0.2
Catastrophe ratio		5.2			0.5			1.5			1.6			2.6
Combined ratio before catastrophes		91.7			69.9			88.8			113.1			88.4
Combined ratio before catastrophes and prior year development [1]		93.7			88.8			96.4			96.6			93.4

[1] Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
ONGOING OPERATIONS CONSOLIDATING UNDERWRITING RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2007

	Personal			Small			Middle			Specialty			Ongoing
	Lines			Commercial			Market			Commercial			Operations
UNDERWRITING RESULTS
Written premiums	$	3,947		$	2,747		$	2,257		$	1,484		$	10,435
Change in unearned premium reserve		58			11			(94	)		(31	)		(56	)
Earned premiums		3,889			2,736			2,351			1,515			10,491
Losses and loss adjustment expenses
Current accident year before catastrophes		2,576			1,594			1,523			999			6,692
Current accident year catastrophes		125			28			15			9			177
Prior accident years		(4	)		(209	)		(14	)		82			(145	)
Total losses and loss adjustment expenses		2,697			1,413			1,524			1,090			6,724
Underwriting expenses		870			799			669			417			2,755
Dividends to policyholders		—			16			14			13			43
Underwriting results	$	322		$	508		$	144		$	(5	)	$	969
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes		66.2			58.3			64.8			66.0			63.8
Current accident year catastrophes		3.2			1.0			0.7			0.6			1.7
Prior accident years [1]		(0.1	)		(7.6	)		(0.6	)		5.4			(1.4	)
Total losses and loss adjustment expenses		69.3			51.6			64.8			72.0			64.1
Expenses		22.4			29.2			28.4			27.5			26.3
Policyholder dividends		—			0.6			0.6			0.9			0.4
Combined ratio		91.7			81.4			93.9			100.4			90.8
Catastrophes
Current year		3.2			1.0			0.7			0.6			1.7
Prior year		0.2			0.2			(0.1	)		0.1			0.1
Catastrophe ratio		3.4			1.2			0.5			0.7			1.8
Combined ratio before catastrophes		88.3			80.3			93.4			99.7			89.0
Combined ratio before catastrophes and prior year development [1]		88.6			88.0			93.8			94.4			90.5

[1] Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
ONGOING OPERATIONS
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
UNDERWRITING RESULTS
Written premiums	$	2,623		$	2,622		$	2,674		$	2,628		$	2,511			(4	%)		(4	%)	$	10,658		$	10,435			(2	%)
Change in unearned premium reserve		(2	)		(1	)		53			2			(110	)	NM			NM				230			(56	)	NM
Earned premiums		2,625			2,623			2,621			2,626			2,621			—			—			10,428			10,491			1	%
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,615			1,625			1,664			1,695			1,708			6	%		1	%		6,507			6,692			3	%
Current accident year catastrophes		35			28			52			32			65			86	%		103	%		199			177			(11	%)
Prior accident years [2]		(21	)		4			(12	)		(11	)		(126	)	NM			NM				(64	)		(145	)		(127	%)
Total losses and loss adjustment expenses		1,629			1,657			1,704			1,716			1,647			1	%		(4	%)		6,642			6,724			1	%
Underwriting expenses [3]		712			669			690			680			716			1	%		5	%		2,666			2,755			3	%
Dividends to policyholders [4]		(7	)		4			10			5			24		NM			NM				9			43		NM
Underwriting results	$	291		$	293		$	217		$	225		$	234			(20	%)		4	%	$	1,111		$	969			(13	%)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		61.5			61.9			63.6			64.5			65.2			(3.7	)		(0.7	)		62.4			63.8			(1.4	)
Current accident year catastrophes		1.4			1.1			2.0			1.2			2.5			(1.1	)		(1.3	)		1.9			1.7			0.2
Prior accident years [2] [5]		(0.8	)		0.2			(0.5	)		(0.4	)		(4.8	)		4.0			4.4			(0.6	)		(1.4	)		0.8
Total losses and loss adjustment expenses		62.1			63.1			65.1			65.3			62.8			(0.7	)		2.5			63.7			64.1			(0.4	)
Expenses		27.1			25.5			26.3			25.9			27.3			(0.2	)		(1.4	)		25.6			26.3			(0.7	)
Policyholder dividends		(0.3	)		0.2			0.4			0.2			0.9			(1.2	)		(0.7	)		0.1			0.4			(0.3	)
Combined ratio		88.9			88.8			91.7			91.4			91.1			(2.2	)		0.3			89.3			90.8			(1.5	)
Catastrophes
Current year		1.4			1.1			2.0			1.2			2.5			(1.1	)		(1.3	)		1.9			1.7			0.2
Prior year		0.1			(0.2	)		0.1			0.3			0.2			(0.1	)		0.1			(0.7	)		0.1			(0.8	)
Catastrophe ratio		1.5			0.9			2.1			1.5			2.6			(1.1	)		(1.1	)		1.2			1.8			(0.6	)
Combined ratio before catastrophes		87.4			87.9			89.6			89.9			88.4			(1.0	)		1.5			88.1			89.0			(0.9	)
Combined ratio before catastrophes and prior year development [5]		88.3			87.6			90.2			90.6			93.4			(5.1	)		(2.8	)		88.0			90.5			(2.5	)

[1]	The three months ended December 31, 2006 included a current accident year reserve release, totaling $58 or 2.2 points, related to Personal Lines auto liability claims, Small Commercial and Middle Market workers’ compensation claims and Small Commercial package business. The three months ended June 30, 2007 included current accident year reserve strengthening, totaling $10 or 0.4 points, related to Personal Lines auto liability claims. The three months ended December 31, 2007 included current accident year reserve strengthening, totaling $13 or 0.5 points, primarily related to strengthening of reserves for Personal Lines auto liability claims and Small Commercial package business, partially offset by a release of reserves for Small Commercial and Middle Market workers’ compensation claims.
[2]	The year ended December 31, 2006 included a net release of catastrophe reserves of $70, primarily related to the 2004 and 2005 hurricanes, a net reserve release of $58 related to allocated loss adjustment expense reserves on workers’ compensation and package business in Small Commercial and a $35 strengthening of construction defects claim reserves in Specialty Commercial. The three months ended December 31, 2007 included $110 of reserve releases related to Small Commercial workers’ compensation claims.
[3]	The year ended December 31, 2006 included a reduction to the Citizens’ assessment of $41. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $12 for the year ended December 31, 2006 including $4 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007 and September 30, 2007 included Citizens’ assessment recoupments of $1.
[4]	Included in policyholder dividends for the three months ended December 31, 2007 was a $20 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[5]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
PERSONAL LINES
UNDERWRITING RESULTS

														Year Over
	THREE MONTHS ENDED													Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,		Sept. 30,		Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007		2007		2007			Change			Change			2006				2007			Change
UNDERWRITING RESULTS
Written premiums [1]	$	941		$	939		$	1,039	$	1,035	$	934			(1	%)		(10	%)	$	3,877			$	3,947			2	%
Change in unearned premium reserve		(9	)		(14	)		72		51		(51	)	NM			NM				117				58			(50	%)
Earned premiums [1]		950			953			967		984		985			4	%		—			3,760				3,889			3	%
Losses and loss adjustment expenses
Current accident year before catastrophes [2]		593			593			628		659		696			17	%		6	%		2,396				2,576			8	%
Current accident year catastrophes		29			17			32		26		50			72	%		92	%		120				125			4	%
Prior accident years [3]		(8	)		4			4		7		(19	)		(138	%)	NM				(38	)			(4	)		89	%
Total losses and loss adjustment expenses		614			614			664		692		727			18	%		5	%		2,478				2,697			9	%
Underwriting expenses [4]		228			209			219		214		228			—			7	%		853				870			2	%
Underwriting results	$	108		$	130		$	84	$	78	$	30			(72	%)		(62	%)	$	429			$	322			(25	%)
																							��
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [2]		62.7			62.2			65.1		66.9		70.5			(7.8	)		(3.6	)		63.8				66.2			(2.4	)
Current accident year catastrophes		3.0			1.8			3.3		2.6		5.1			(2.1	)		(2.5	)		3.2				3.2			—
Prior accident years [3] [5]		(0.9	)		0.5			0.3		0.7		(1.9	)		1.0			2.6			(1.0	)			(0.1	)		(0.9	)
Total losses and loss adjustment expenses		64.8			64.5			68.7		70.1		73.8			(9.0	)		(3.7	)		65.9				69.3			(3.4	)
Expenses		23.8			21.9			22.6		21.9		23.2			0.6			(1.3	)		22.7				22.4			0.3
Combined ratio		88.6			86.4			91.3		92.0		97.0			(8.4	)		(5.0	)		88.6				91.7			(3.1	)
Catastrophes
Current year		3.0			1.8			3.3		2.6		5.1			(2.1	)		(2.5	)		3.2				3.2			—
Prior year		0.3			—			0.3		0.4		0.1			0.2			0.3			(0.4	)			0.2			(0.6	)
Catastrophe ratio		3.3			1.8			3.6		3.0		5.2			(1.9	)		(2.2	)		2.8				3.4			(0.6	)
Combined ratio before catastrophes		85.3			84.6			87.7		89.0		91.7			(6.4	)		(2.7	)		85.8				88.3			(2.5	)
Combined ratio before catastrophes and prior year development [5] [6]		86.5			84.1			87.7		88.7		93.7			(7.2	)		(5.0	)		86.4				88.6			(2.2	)
COMBINED RATIO
Automobile		92.5			90.7			95.9		95.9		102.3			(9.8	)		(6.4	)		93.6				96.2			(2.6	)
Homeowners		77.5			74.8			79.0		81.9		83.1			(5.6	)		(1.2	)		74.0				79.8			(5.8	)
Total		88.6			86.4			91.3		92.0		97.0			(8.4	)		(5.0	)		88.6				91.7			(3.1	)

[1]	Written premiums for Omni for the three months ended March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006 were $37, $30, $27 and $14, respectively. Earned premiums for Omni for the three months ended March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006 were $39, $36, $33 and $19, respectively.
[2]	The three months ended December 31, 2006 included a current accident year reserve release, totaling $29 or 3.1 points, predominantly related to auto liability claims. The three months ended June 30, 2007 included current accident year reserve strengthening, totaling $10 or 1.1 points, related to auto liability claims. The three months ended December 31, 2007 included current accident year reserve strengthening, totaling $19 or 1.9 points, related to auto liability claims.
[3]	The year ended December 31, 2006 included a net release of catastrophe reserves of $14, primarily related to the 2004 and 2005 hurricanes. The three months ended December 31, 2007 included a reserve release of $16 related to auto liability claims.
[4]	The year ended December 31, 2006 included a reduction to the Citizens’ assessment of $19. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $5 for the year ended December 31, 2006 including $2 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $2. The three months ended June 30, 2007 included Citizens’ assessment recoupments of $1.
[5]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.
[6]	Excluding the effect of Omni, the Personal Lines combined ratio before catastrophes and prior accident year development for the three months ended December 31, 2006 was 85.8, and for the year ended December 31, 2006 was 85.3.

PC-7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
PERSONAL LINES
WRITTEN AND EARNED PREMIUMS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
BUSINESS UNIT
WRITTEN PREMIUMS [1]
AARP	$	630		$	650		$	727		$	724		$	649			3	%		(10	%)	$	2,580		$	2,750			7	%
Agency		276			269			293			294			267			(3	%)		(9	%)		1,100			1,123			2	%
Other		35			20			19			17			18			(49	%)		6	%		197			74			(62	%)
Total	$	941		$	939		$	1,039		$	1,035		$	934			(1	%)		(10	%)	$	3,877		$	3,947			2	%
EARNED PREMIUMS [1]
AARP	$	635		$	653		$	663		$	680		$	685			8	%		1	%	$	2,466		$	2,681			9	%
Agency		273			277			282			283			281			3	%		(1	%)		1,068			1,123			5	%
Other		42			23			22			21			19			(55	%)		(10	%)		226			85			(62	%)
Total	$	950		$	953		$	967		$	984		$	985			4	%		—		$	3,760		$	3,889			3	%
PRODUCT LINE
WRITTEN PREMIUMS [1]
Automobile	$	694		$	699		$	739		$	732		$	678			(2	%)		(7	%)	$	2,856		$	2,848			—
Homeowners		247			240			300			303			256			4	%		(16	%)		1,021			1,099			8	%
Total	$	941		$	939		$	1,039		$	1,035		$	934			(1	%)		(10	%)	$	3,877		$	3,947			2	%
EARNED PREMIUMS [1]
Automobile	$	703		$	693		$	705		$	712		$	712			1	%		—		$	2,792		$	2,822			1	%
Homeowners		247			260			262			272			273			11	%		—			968			1,067			10	%
Total	$	950		$	953		$	967		$	984		$	985			4	%		—		$	3,760		$	3,889			3	%
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)																													��
Written Price Increases/(Decreases)
Automobile		(1	%)		—			—			—			—			1	%		—			(1	%)		—			1	%
Homeowners		6	%		8	%		6	%		5	%		3	%		(3	%)		(2	%)		5	%		5	%		—
Premium Retention
Automobile		87	%		89	%		88	%		88	%		87	%		—			(1	%)		87	%		88	%		1	%
Homeowners		93	%		100	%		97	%		94	%		93	%		—			(1	%)		94	%		96	%		2	%
New Business Premium $
Automobile	$	117		$	117		$	115		$	108		$	84			(28	%)		(22	%)	$	469		$	424			(10	%)
Homeowners	$	39		$	37		$	39		$	36		$	28			(28	%)		(22	%)	$	161		$	140			(13	%)
Policies in force
Automobile		2,276,165			2,313,512			2,342,883			2,359,246			2,349,402			3	%		—
Homeowners		1,440,399			1,458,485			1,476,340			1,484,157			1,481,542			3	%		—

[1] The difference between written premiums and earned premiums is attributable to the change in unearned premium reserve.

PC-8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
SMALL COMMERCIAL
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
UNDERWRITING RESULTS
Written premiums	$	666		$	740		$	694		$	664		$	649			(3	%)		(2	%)	$	2,728		$	2,747			1	%
Change in unearned premium reserve		(19	)		59			10			(19	)		(39	)		(105	%)		(105	%)		76			11			(86	%)
Earned premiums		685			681			684			683			688			—			1	%		2,652			2,736			3	%
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		365			397			399			406			392			7	%		(3	%)		1,509			1,594			6	%
Current accident year catastrophes		5			7			12			6			3			(40	%)		(50	%)		34			28			(18	%)
Prior accident years [2]		(20	)		(5	)		(27	)		(47	)		(130	)	NM				(177	%)		(75	)		(209	)		(179	%)
Total losses and loss adjustment expenses		350			399			384			365			265			(24	%)		(27	%)		1,468			1,413			(4	%)
Underwriting expenses [3]		203			197			197			197			208			2	%		6	%		756			799			6	%
Dividends to policyholders [4]		(1	)		1			2			2			11		NM			NM				6			16			167	%
Underwriting results	$	133		$	84		$	101		$	119		$	204			53	%		71	%	$	422		$	508			20	%
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		52.9			58.3			58.4			59.4			56.9			(4.0	)		2.5			56.9			58.3			(1.4	)
Current accident year catastrophes		0.8			1.0			1.8			0.8			0.4			0.4			0.4			1.3			1.0			0.3
Prior accident years [2] [5]		(3.0	)		(0.8	)		(3.9	)		(6.9	)		(18.8	)		15.8			11.9			(2.8	)		(7.6	)		4.8
Total losses and loss adjustment expenses		50.7			58.5			56.3			53.3			38.6			12.1			14.7			55.3			51.6			3.7
Expenses		29.9			28.9			28.8			28.8			30.2			(0.3	)		(1.4	)		28.5			29.2			(0.7	)
Policyholder dividends		(0.1	)		0.2			0.2			0.3			1.6			(1.7	)		(1.3	)		0.2			0.6			(0.4	)
Combined ratio		80.5			87.6			85.4			82.4			70.4			10.1			12.0			84.1			81.4			2.7
Catastrophes
Current year		0.8			1.0			1.8			0.8			0.4			0.4			0.4			1.3			1.0			0.3
Prior year		0.4			0.3			0.1			0.1			—			0.4			0.1			(0.7	)		0.2			(0.9	)
Catastrophe ratio		1.2			1.3			1.9			1.0			0.5			0.7			0.5			0.6			1.2			(0.6	)
Combined ratio before catastrophes		79.3			86.3			83.4			81.5			69.9			9.4			11.6			83.5			80.3			3.2
Combined ratio before catastrophes and prior year development [5]		82.7			87.4			87.5			88.5			88.8			(6.1	)		(0.3	)		85.6			88.0			(2.4	)
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Written Price Increases/(Decreases)		—			(1	%)		(1	%)		(1	%)		(3	%)		(3	%)		(2	%)		1	%		(2	%)		(3	%)
Premium Retention		86	%		85	%		84	%		84	%		83	%		(3	%)		(1	%)		87	%		84	%		(3	%)
New Business Premium $	$	120		$	129		$	126		$	116		$	110			(8	%)		(5	%)	$	533		$	481			(10	%)
Policies in force		991,979			1,005,879			1,020,262			1,031,855			1,038,542			5	%		1	%

[1]	The three months ended December 31, 2006 included a current accident year reserve release, totaling $22 or 3.1 points, primarily related to workers’ compensation and package business. The three months ended December 31, 2007 included a current accident year reserve release, totaling $24 or 3.5 points, related to workers’ compensation business, substantially offset by current accident year reserve strengthening, totaling $18 or 2.6 points, related to package business.
[2]	The year ended December 31, 2006 included a net reserve release of $35 related to workers’ compensation business, a catastrophe reserve release of $18 primarily related to the 2004 and 2005 hurricanes and a reserve release of $23 related to package business. The three months ended June 30, 2007 included a reserve release of $18 related to workers’ compensation business and a reserve release of $12 related to package business. The three months ended September 30, 2007 included a reserve release of $47 on workers’ compensation business for recent accident years. The three months ended December 31, 2007 included reserve releases of $110 related to workers’ compensation business and a reserve release of $17 related to package business.
[3]	The year ended December 31, 2006 included reductions to the Citizens’ assessments of $10. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $3 for the year ended December 31, 2006, including $1 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $1.
[4]	Included in policyholder dividends for the three months ended December 31, 2007 was a $10 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[5]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
MIDDLE MARKET
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
UNDERWRITING RESULTS
Written premiums	$	642		$	557		$	536		$	573		$	591			(8	%)		3	%	$	2,445		$	2,257			(8	%)
Change in unearned premium reserve		36			(48	)		(56	)		(9	)		19			(47	%)	NM				(9	)		(94	)	NM
Earned premiums		606			605			592			582			572			(6	%)		(2	%)		2,454			2,351			(4	%)
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		382			380			381			384			378			(1	%)		(2	%)		1,533			1,523			(1	%)
Current accident year catastrophes		2			5			5			(1	)		6		NM			NM				36			15			(58	%)
Prior accident years [2]		2			18			(2	)		11			(41	)	NM			NM				15			(14	)	NM
Total losses and loss adjustment expenses		386			403			384			394			343			(11	%)		(13	%)		1,584			1,524			(4	%)
Underwriting expenses [3]		181			167			168			165			169			(7	%)		2	%		657			669			2	%
Dividends to policyholders		2			2			6			1			5			150	%	NM				6			14			133	%
Underwriting results	$	37		$	33		$	34		$	22		$	55			49	%		150	%	$	207		$	144			(30	%)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		64.2			62.9			64.2			66.1			66.1			(1.9	)		—			62.6			64.8			(2.2	)
Current accident year catastrophes		0.3			0.7			0.9			—			1.0			(0.7	)		(1.0	)		1.5			0.7			0.8
Prior accident years [2] [4]		0.1			3.1			(0.5	)		1.8			(7.1	)		7.2			8.9			0.6			(0.6	)		1.2
Total losses and loss adjustment expenses		64.6			66.8			64.6			67.9			59.9			4.7			8.0			64.7			64.8			(0.1	)
Expenses		29.0			27.6			28.5			28.2			29.6			(0.6	)		(1.4	)		26.7			28.4			(1.7	)
Policyholder dividends		0.2			0.2			1.1			0.3			0.8			(0.6	)		(0.5	)		0.2			0.6			(0.4	)
Combined ratio		93.8			94.6			94.1			96.3			90.3			3.5			6.0			91.6			93.9			(2.3	)
Catastrophes
Current year		0.3			0.7			0.9			—			1.0			(0.7	)		(1.0	)		1.5			0.7			0.8
Prior year		0.4			(0.6	)		(0.2	)		(0.3	)		0.5			(0.1	)		(0.8	)		—			(0.1	)		0.1
Catastrophe ratio		0.7			0.1			0.8			(0.3	)		1.5			(0.8	)		(1.8	)		1.5			0.5			1.0
Combined ratio before catastrophes		93.1			94.5			93.4			96.6			88.8			4.3			7.8			90.1			93.4			(3.3	)
Combined ratio before catastrophes and prior year development [4]		93.4			90.7			93.7			94.5			96.4			(3.0	)		(1.9	)		89.5			93.8			(4.3	)
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Written Price Increases/(Decreases)		(6	%)		(5	%)		(4	%)		(3	%)		(6	%)		—			(3	%)		(5	%)		(5	%)		—
Premium Retention		83	%		78	%		76	%		77	%		79	%		(4	%)		2	%		82	%		77	%		(5	%)
New Business Premium $	$	115		$	106		$	97		$	93		$	94			(18	%)		1	%	$	462		$	390			(16	%)
Policies in force		78,747			79,244			79,539			79,813			80,377			2	%		1	%

[1]	The three months ended December 31, 2006 included a current accident year reserve release, totaling $7 or 1.2 points, primarily related to workers’ compensation business. The three months ended December 31, 2007 included current accident year reserve strengthening, totaling $7 or 1.2 points, related to general liability, substantially offset by a current accident year reserve release, totaling $4 or 0.7 points, related to workers’ compensation business.
[2]	The three months ended September 30, 2007 included reserve strengthening of $40 on workers’ compensation business for older accident years, partially offset by a reserve release of $11 on workers’ compensation business for recent accident years. The three months ended December 31, 2007 included a $39 release of general liability reserves for recent accident years.
[3]	The year ended December 31, 2006 included reductions to the Citizens’ assessments of $12. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $3 for the year ended December 31, 2006, including $1 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $1.
[4]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
SPECIALTY COMMERCIAL
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
UNDERWRITING RESULTS
Written premiums	$	374		$	386		$	405		$	356		$	337			(10	%)		(5	%)	$	1,608		$	1,484			(8	%)
Change in unearned premium reserve		(10	)		2			27			(21	)		(39	)	NM				(86	%)		46			(31	)	NM
Earned premiums		384			384			378			377			376			(2	%)		—			1,562			1,515			(3	%)
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		275			255			256			246			242			(12	%)		(2	%)		1,069			999			(7	%)
Current accident year catastrophes		(1	)		(1	)		3			1			6		NM			NM				9			9			—
Prior accident years [2]		5			(13	)		13			18			64		NM			NM				34			82			141	%
Total losses and loss adjustment expenses		279			241			272			265			312			12	%		18	%		1,112			1,090			(2	%)
Underwriting expenses		100			96			106			104			111			11	%		7	%		400			417			4	%
Dividends to policyholders [3]		(8	)		1			2			2			8		NM			NM				(3	)		13		NM
Underwriting results	$	13		$	46		$	(2	)	$	6		$	(55	)	NM			NM			$	53		$	(5	)	NM
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		69.9			65.7			68.0			65.5			64.9			5.0			0.6			68.2			66.0			2.2
Current accident year catastrophes		—			0.1			0.6			0.2			1.5			(1.5	)		(1.3	)		0.6			0.6			—
Prior accident years [2] [4]		1.9			(3.6	)		3.8			5.0			16.6			(14.7	)		(11.6	)		2.3			5.4			(3.1	)
Total losses and loss adjustment expenses		71.7			62.2			72.4			70.7			83.0			(11.3	)		(12.3	)		71.1			72.0			(0.9	)
Expenses		27.2			25.2			27.8			27.7			29.4			(2.2	)		(1.7	)		25.7			27.5			(1.8	)
Policyholder dividends		(2.1	)		0.4			0.4			0.3			2.3			(4.4	)		(2.0	)		(0.1	)		0.9			(1.0	)
Combined ratio		96.8			87.8			100.6			98.6			114.7			(17.9	)		(16.1	)		96.7			100.4			(3.7	)
Catastrophes
Current year		—			0.1			0.6			0.2			1.5			(1.5	)		(1.3	)		0.6			0.6			—
Prior year		(1.2	)		(1.1	)		—			1.2			0.1			(1.3	)		1.1			(2.5	)		0.1			(2.6	)
Catastrophe ratio		(1.2	)		(1.0	)		0.6			1.4			1.6			(2.8	)		(0.2	)		(1.9	)		0.7			(2.6	)
Combined ratio before catastrophes		98.0			88.8			100.0			97.2			113.1			(15.1	)		(15.9	)		98.5			99.7			(1.2	)
Combined ratio before catastrophes and prior year development [4]		95.0			91.4			96.3			93.5			96.6			(1.6	)		(3.1	)		93.8			94.4			(0.6	)

[1]	The three months ended December 31, 2007 included a current accident year reserve release, totaling $3 or 0.8 points, related to workers’ compensation business.
[2]	The year ended December 31, 2006 included reserve increases of $35 for construction defects claims and $20 for workers’ compensation allocated loss adjustment expenses, partially offset by a net catastrophe reserve release of $38, primarily related to the 2004 and 2005 hurricanes. The three months ended December 31, 2007 included a $35 strengthening of workers’ compensation reserves and a $34 strengthening of liability reserves, each primarily for older accident years, partially offset by a $15 reserve release for errors and ommissions claims.
[3]	Included in policyholder dividends for the three months ended December 31, 2007 was a $7 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[4]	Included in the prior year losses and loss adjustment expenses ratio is prior accident year development on catastrophe losses.

PC-11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
SPECIALTY COMMERCIAL
WRITTEN AND EARNED PREMIUMS

											Year Over
	THREE MONTHS ENDED										Year			Sequential			YEAR ENDED
	Dec. 31,		Mar. 31,		Jun. 30,		Sept. 30,		Dec. 31,		3 Month			3 Month			DECEMBER 31,
	2006		2007		2007		2007		2007		Change			Change			2006		2007		Change
WRITTEN PREMIUMS [1]
Property	$	51	$	41	$	59	$	44	$	36		(29	%)		(18	%)	$	212	$	180		(15	%)
Casualty		117		165		147		119		103		(12	%)		(13	%)		582		534		(8	%)
Professional Liability, Fidelity and Surety		187		159		178		173		179		(4	%)		3	%		697		689		(1	%)
Other		19		21		21		20		19		—			(5	%)		117		81		(31	%)
Total	$	374	$	386	$	405	$	356	$	337		(10	%)		(5	%)	$	1,608	$	1,484		(8	%)
EARNED PREMIUMS [1]
Property	$	53	$	52	$	49	$	52	$	49		(8	%)		(6	%)	$	213	$	202		(5	%)
Casualty		136		141		138		130		134		(1	%)		3	%		579		543		(6	%)
Professional Liability, Fidelity and Surety		165		170		168		176		171		4	%		(3	%)		650		685		5	%
Other		30		21		23		19		22		(27	%)		16	%		120		85		(29	%)
Total	$	384	$	384	$	378	$	377	$	376		(2	%)		—		$	1,562	$	1,515		(3	%)

[1] The difference between written premiums and earned premiums is attributable to the change in unearned premium reserve.

PC-12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
OTHER OPERATIONS
OPERATING RESULTS

																Year Over
	THREE MONTHS ENDED																Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
UNDERWRITING RESULTS
Written premiums	$	2		$	—		$	1		$	2		$	2			—			—		$	4		$	5			25	%
Change in unearned premium reserve		(1	)		—			—			—			—			100	%		—			(1	)		—			100	%
Earned premiums		3			—			1			2			2			(33	%)		—			5			5			—
Losses and loss adjustment expenses
Current accident year before catastrophes		—			—			—			—			—			—			—			—			—			—
Current accident year catastrophes		—			—			—			—			—			—			—			—			—			—
Prior accident years [1]		16			18			116			39			20			25	%		(49	%)		360			193			(46	%)
Total losses and loss adjustment expenses		16			18			116			39			20			25	%		(49	%)		360			193			(46	%)
Underwriting expenses		4			6			5			6			5			25	%		(17	%)		11			22			100	%
Underwriting results	$	(17	)	$	(24	)	$	(120	)	$	(43	)	$	(23	)		(35	%)		47	%	$	(366	)	$	(210	)		43	%
Net investment income		66			62			61			61			64			(3	%)		5	%		261			248			(5	%)
Other expenses		(1	)		—			(2	)		(1	)		2		NM			NM				(1	)		(1	)		—
Income tax (expense) benefit		(12	)		(10	)		25			(3	)		(11	)		8	%	NM				54			1			(98	%)
Core earnings		36			28			(36	)		14			32			(11	%)		129	%		(52	)		38		NM
Add: Net realized capital gains (losses), after-tax		12			4			(4	)		(2	)		(6	)	NM			NM				17			(8	)	NM
Net income (loss)	$	48		$	32		$	(40	)	$	12		$	26			(46	%)		117	%	$	(35	)	$	30		NM

[1] The year ended December 31, 2006 included a $243 charge as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The year ended December 31, 2006 included environmental reserve strengthening of $43. The three months ended June 30, 2007 included a $99 charge principally as a result of an adverse arbitration decision. The three months ended September 30, 2007 included environmental reserve strengthening of $25.

PC-13

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
OTHER OPERATIONS LOSSES AND LOSS ADJUSTMENT EXPENSES

For the Three Months Ended December 31, 2007	Asbestos			Environmental			All Other [1]			Total
Beginning liability — net [2] [3]	$	2,085		$	290		$	1,921		$	4,296
Losses and loss adjustment expenses incurred		24			3			(7	)		20
Losses and loss adjustment expenses paid		(111	)		(42	)		(26	)		(179	)
Ending liability — net [2] [3]	$	1,998	[5]	$	251		$	1,888		$	4,137

For the Twelve Months Ended December 31, 2007	Asbestos			Environmental			All Other [1]			Total
Beginning liability — net [2] [3]	$	2,242		$	316		$	1,858		$	4,416
Losses and loss adjustment expenses incurred		43			28			122			193
Losses and loss adjustment expenses paid		(287	)		(93	)		(217	)		(597	)
Reallocation of reserves for unallocated loss adjustment expenses [4]		—			—			125			125
Ending liability — net [2] [3]	$	1,998	[5]	$	251		$	1,888		$	4,137

[1]	“All Other” also includes unallocated loss adjustment expense reserves and the allowance for uncollectible reinsurance.
[2]	Excludes asbestos and environmental net liabilities reported in Ongoing Operations of $9 and $6, respectively, as of December 31, 2007, $9 and $6, respectively, as of September 30, 2007, and $9 and $6, respectively, as of December 31, 2006. Total net losses and loss adjustment expenses incurred in Ongoing Operations for the three and twelve months ended December 31, 2007 includes $4 and $10, respectively, related to asbestos and environmental claims. Total net losses and loss adjustment expenses paid in Ongoing Operations for the three and twelve months ended December 31, 2007 includes $4 and $10, respectively, related to asbestos and environmental claims.
[3]	Gross of reinsurance, asbestos and environmental reserves, including liabilities in Ongoing Operations, were $2,707 and $290, respectively, as of December 31, 2007, $2,808 and $301, respectively, as of September 30, 2007, and $3,242 and $362, respectively, as of December 31, 2006.
[4]	Prior to the second quarter of 2007, the Company evaluated the adequacy of reserves for unallocated loss adjustment expenses on a company-wide basis. During the quarter ended June 30, 2007, the Company refined its analysis of the reserves at a segment level, resulting in the reallocation of reserves among segments, including a reallocation of reserves from Ongoing Operations to Other Operations.
[5]	The one year and average three year net paid amounts for asbestos claims, including Ongoing Operations, are $291 and $291, respectively, resulting in a one year net survival ratio of 6.9 and a three year net survival ratio of 6.9. Net survival ratio is the quotient of the net carried reserves divided by the average annual payment amount and is an indication of the number of years that the net carried reserve would last (i.e. survive) if the future annual claim payments were consistent with the calculated historical average.

PC-14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
PAID AND INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES (“LAE”)
DEVELOPMENT — ASBESTOS AND ENVIRONMENTAL

	Asbestos [1]				Environmental [1]
	Paid		Incurred		Paid		Incurred
For the Three Months Ended December 31, 2007	Losses & LAE		Losses & LAE		Losses & LAE		Losses & LAE
Gross
Direct	$	78	$	2	$	6	$	—
Assumed — Domestic		10		—		3		—
London Market		15		—		1		—
Total		103		2		10		—
Ceded		8		22		32		3
Net	$	111	$	24	$	42	$	3

	Asbestos [1]						Environmental [1]
	Paid			Incurred			Paid			Incurred
For the Twelve Months Ended December 31, 2007	Loss & LAE			Loss & LAE			Loss & LAE			Loss & LAE
Gross
Direct	$	251		$	(289	)	$	90		$	43
Assumed — Domestic		112			72			16			—
London Market		31			76			8			—
Total		394			(141	)		114			43
Ceded		(107	)		184			(21	)		(15	)
Net	$	287		$	43		$	93		$	28

[1] Excludes asbestos and environmental paid and incurred loss and LAE reported in Ongoing Operations. Total gross loss and LAE incurred in Ongoing Operations for the three and twelve months ended December 31, 2007 includes $2 and $9, respectively, related to asbestos and environmental claims. Total gross loss and LAE paid in Ongoing Operations for the three and twelve months ended December 31, 2007 includes $3 and $10, respectively, related to asbestos and environmental claims.

PC-15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSE RESERVE ROLLFORWARD

	For the Three Months Ended December 31, 2007
	Personal			Small			Middle			Specialty			Ongoing			Other			Total
	Lines			Commercial			Market			Commercial			Operations			Operations			P&C
Liabilities for unpaid losses and loss adjustment expenses at 10/1/07 - gross	$	1,898		$	3,520		$	4,675		$	6,826		$	16,919		$	5,278		$	22,197
Reinsurance and other recoverables		56			182			435			2,373			3,046			982			4,028
Liabilities for unpaid losses and loss adjustment expenses at 10/1/07 - net		1,842			3,338			4,240			4,453			13,873			4,296			18,169
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes		696			392			378			242			1,708			—			1,708
Current accident year catastrophes		50			3			6			6			65			—			65
Prior accident years		(19	)		(130	)		(41	)		64			(126	)		20			(106	)
Total provision for unpaid losses and loss adjustment expenses		727			265			343			312			1,647			20			1,667
Payments		(608	)		(310	)		(309	)		(199	)		(1,426	)		(179	)		(1,605	)
Liabilities for unpaid losses and loss adjustment expenses at 12/31/07 - net		1,961			3,293			4,274			4,566			14,094			4,137			18,231
Reinsurance and other recoverables		81			177			413			2,317			2,988			934			3,922
Liabilities for unpaid losses and loss adjustment expenses at 12/31/07 - gross	$	2,042		$	3,470		$	4,687		$	6,883		$	17,082		$	5,071		$	22,153
Earned premiums	$	985		$	688		$	572		$	376		$	2,621		$	2		$	2,623
Loss and loss expense paid ratio		61.8			45.2			54.1			52.6			54.5
Loss and loss expense incurred ratio		73.8			38.6			59.9			83.0			62.8
Prior accident year development (pts.)		(1.9	)		(18.8	)		(7.1	)		16.6			(4.8	)

PC-16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSE RESERVE ROLLFORWARD

	For the Year Ended December 31, 2007
	Personal			Small			Middle			Specialty			Ongoing			Other			Total
	Lines			Commercial			Market			Commercial			Operations			Operations			P&C
Liabilities for unpaid losses and loss adjustment expenses at 1/1/07 - gross	$	1,959		$	3,421		$	4,517		$	6,378		$	16,275		$	5,716		$	21,991
Reinsurance and other recoverables		134			214			477			2,262			3,087			1,300			4,387
Liabilities for unpaid losses and loss adjustment expenses at 1/1/07 - net		1,825			3,207			4,040			4,116			13,188			4,416			17,604
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes		2,576			1,594			1,523			999			6,692			—			6,692
Current accident year catastrophes		125			28			15			9			177			—			177
Prior accident years		(4	)		(209	)		(14	)		82			(145	)		193			48
Total provision for unpaid losses and loss adjustment expenses		2,697			1,413			1,524			1,090			6,724			193			6,917
Payments		(2,503	)		(1,222	)		(1,204	)		(764	)		(5,693	)		(597	)		(6,290	)
Reallocation of reserves for unallocated loss adjustment expenses [1]		(58	)		(105	)		(86	)		124			(125	)		125			—
Liabilities for unpaid losses and loss adjustment expenses at 12/31/07 - net		1,961			3,293			4,274			4,566			14,094			4,137			18,231
Reinsurance and other recoverables		81			177			413			2,317			2,988			934			3,922
Liabilities for unpaid losses and loss adjustment expenses at 12/31/07 - gross	$	2,042		$	3,470		$	4,687		$	6,883		$	17,082		$	5,071		$	22,153
Earned premiums	$	3,889		$	2,736		$	2,351		$	1,515		$	10,491		$	5		$	10,496
Loss and loss expense paid ratio		64.4			44.7			51.3			50.3			54.3
Loss and loss expense incurred ratio		69.3			51.6			64.8			72.0			64.1
Prior accident year development (pts.)		(0.1	)		(7.6	)		(0.6	)		5.4			(1.4	)

[1] Prior to the second quarter of 2007, the Company evaluated the adequacy of the reserves for unallocated loss adjustment expenses on a company-wide basis. During the second quarter of 2007, the Company refined its analysis of the reserves at the segment level, resulting in the reallocation of reserves among segments.

PC-17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
REINSURANCE RECOVERABLE ANALYSIS

	December 31,			December 31,
	2007			2006
Gross Reinsurance Recoverables
Paid Loss and Loss Adjustment Expenses	$	347		$	460
Unpaid Loss and Loss Adjustment Expenses		3,788			4,417
Subtotal Gross Reinsurance Recoverables		4,135			4,877
Less: Allowance for Uncollectible Reinsurance		(404	)		(412	)
Net Reinsurance Recoverables	$	3,731		$	4,465

	As of December 31, 2007						As of December 31, 2006
Distribution of Gross Reinsurance Recoverables	Amount			% of Total			Amount			% of Total
Gross Reinsurance Recoverables	$	4,135					$	4,877
Less: Mandatory (Assigned Risk) Pools & Structured Settlements		(642	)					(673	)
Gross Reinsurance Recoverables Excluding Mandatory Pools & Structured Settlements	$	3,493					$	4,204
Rated A- (Excellent) or better by A.M. Best [1]	$	2,604			74.5	%	$	3,050			72.5	%
Other Rated by A.M. Best		90			2.6	%		162			3.9	%
Total Rated Companies		2,694			77.1	%		3,212			76.4	%
Voluntary Pools		195			5.6	%		223			5.3	%
Captives		230			6.6	%		197			4.7	%
Other Not Rated Companies		374			10.7	%		572			13.6	%
Total	$	3,493			100.0	%	$	4,204			100.0	%

[1] Based on A.M. Best ratings as of December 31, 2007 and 2006, respectively.

PC-18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
CONSOLIDATED INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEAR ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Earned premiums	$	2,628		$	2,623		$	2,622		$	2,628		$	2,623			—			—		$	10,433		$	10,496			1	%
Net investment income		405			413			446			407			421			4	%		3	%		1,486			1,687			14	%
Other revenues		118			118			124			126			128			8	%		2	%		473			496			5	%
Net realized capital gains (losses)		17			23			(24	)		(75	)		(96	)	NM				(28	%)		9			(172	)	NM
Total revenues		3,168			3,177			3,168			3,086			3,076			(3	%)		—			12,401			12,507			1	%
Losses and loss adjustment expenses [1]		1,645			1,675			1,820			1,755			1,667			1	%		(5	%)		7,002			6,917			(1	%)
Amortization of deferred policy acquisition costs		534			528			528			525			523			(2	%)		—			2,106			2,104			—
Insurance operating costs and expenses [2] [3]		175			151			177			166			222			27	%		34	%		580			716			23	%
Other expenses		165			167			168			174			184			12	%		6	%		643			693			8	%
Total benefits and expenses		2,519			2,521			2,693			2,620			2,596			3	%		(1	%)		10,331			10,430			1	%
Income before income taxes		649			656			475			466			480			(26	%)		3	%		2,070			2,077			—
Income tax expense		151			195			131			113			131			(13	%)		16	%		551			570			3	%
Net income		498			461			344			353			349			(30	%)		(1	%)		1,519			1,507			(1	%)
Less: Net realized capital gains (losses), after-tax [4] [5]		50			13			(18	)		(52	)		(65	)	NM				(25	%)		44			(122	)	NM
Core earnings	$	448		$	448		$	362		$	405		$	414			(8	%)		2	%	$	1,475		$	1,629			10	%
Total Property & Casualty effective tax rate — net income		23.3	%		29.7	%		27.6	%		24.2	%		27.4	%		4.1			3.2			26.6	%		27.5	%		0.9
Total Property & Casualty effective tax rate — core earnings		29.4	%		29.5	%		27.9	%		25.8	%		28.7	%		(0.7	)		2.9			28.6	%		28.0	%		(0.6	)

[1]	The year ended December 31, 2006 included a $243 charge as a result of the agreement with Equitas and the Company’s evaluation of the reinsurance recoverables and allowance for uncollectible reinsurance associated with older, long-term casualty liabilities. The three months ended December 31, 2006 included a current accident year reserve release of $58, predominantly related to Personal Lines auto liability claims, Small Commercial and Middle Market workers’ compensation claims and Small Commercial package business. The three months ended June 30, 2007 included prior accident year reserve development of $99, principally as a result of an adverse arbitration decision, and current accident year reserve strengthening of $10, related to Personal Lines auto liability claims. The three months ended December 31, 2007 included $110 of reserve releases related to Small Commerciall workers’ compensation claims. The three months ended December 31, 2007 included current accident year reserve strengthening of $13, primarily related to strengthening of reserves for Personal Lines auto liability claims and Small Commercial package business, partially offset by a release of reserves for Small Commercial and Middle Market workers’ compensation claims.
[2]	The year ended December 31, 2006 included a reduction to the Citizens’ assessment of $41. These assessments and reductions thereto related to 2004 and 2005 hurricanes. Citizens’ assessment recoupments totaled $12 for the year ended December 31, 2006 including $4 for the three months ended December 31, 2006. The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007 and September 30, 2007 included Citizens’ assessment recoupments of $1.
[3]	Included in policyholder dividends for the three months ended December 31, 2007 was a $20 increase in the estimated amount of dividends payable to certain workers’ compensation policyholders due to underwriting profits.
[4]	The three months ended December 31, 2006 included a $25 after-tax gain on the sale of Omni. Realized capital losses for 2007 are primarily driven by fixed maturity impairments, changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments, partially offset by other investment gains.
[5]	Includes those net realized capital gains (losses) not included in core earnings.

PC-19

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
CONSOLIDATED BALANCE SHEETS

	AS OF												Year Over
	Dec. 31,			Mar. 31,		Jun. 30,		Sept. 30,		Dec. 31,			Year			Sequential
	2006			2007		2007		2007		2007			Change			Change
Investments
Fixed maturities, available for sale, at fair value	$	26,734		$	26,808	$	27,182	$	27,247	$	27,205			2	%		—
Equity securities, available for sale, at fair value		873			861		947		1,071		1,208			38	%		13	%
Mortgage loans		409			506		655		685		671			64	%		(2	%)
Other investments		840			938		1,132		1,217		1,298			55	%		7	%
Short term investments		444			330		286		170		284			(36	%)		67	%
Total investments		29,300			29,443		30,202		30,390		30,666			5	%		1	%
Cash		225			229		190		183		241			7	%		32	%
Premiums receivable and agents’ balances		3,251			3,312		3,436		3,363		3,254			—			(3	%)
Reinsurance recoverables		4,465			4,373		3,966		3,928		3,731			(16	%)		(5	%)
Deferred policy acquisition costs		1,197			1,201		1,212		1,223		1,228			3	%		—
Deferred income tax		608			520		686		633		662			9	%		5	%
Goodwill		149			149		149		149		149			—			—
Property and equipment, net		543			558		552		569		598			10	%		5	%
Other assets		1,287			1,475		1,403		1,462		1,312			2	%		(10	%)
Total assets	$	41,025		$	41,260	$	41,796	$	41,900	$	41,841			2	%		—
Unpaid losses and loss adjustment expenses	$	21,991		$	21,987	$	21,990	$	22,197	$	22,153			1	%		—
Unearned premiums		5,522			5,537		5,576		5,540		5,402			(2	%)		(2	%)
Debt		—			—		—		—		13			—			—
Other liabilities		3,327			4,623		4,870		4,883		4,855			46	%		(1	%)
Total liabilities		30,840			32,147		32,436		32,620		32,423			5	%		(1	%)
Equity, x-AOCI, net of tax		9,851			8,781		9,323		9,214		9,428			(4	%)		2	%
AOCI, net of tax		334			332		37		66		(10	)	NM			NM
Total stockholders’ equity		10,185			9,113		9,360		9,280		9,418			(8	%)		1	%
Total liabilities and stockholders’ equity	$	41,025		$	41,260	$	41,796	$	41,900	$	41,841			2	%		—
Hartford Fire NAIC RBC		588	%

PC-20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
ADJUSTED STATUTORY SURPLUS TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

	Sept. 30, 2007			Dec. 31, 2006
Adjusted Statutory Capital and Surplus	$	8,401		$	8,230
GAAP Adjustments
Deferred policy acquisition costs		1,223			1,197
Deferred taxes		(327	)		(320	)
Benefit reserves		(102	)		(107	)
Unrealized gains on investments		87			418
Goodwill		149			149
Non-admitted assets		1,024			939
Other, net		(1,175	)		(321	)
GAAP Stockholders’ Equity	$	9,280		$	10,185

PC-21

INVESTMENTS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT EARNINGS BEFORE-TAX
CONSOLIDATED

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEARS ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	988		$	1,002		$	1,004		$	1,048		$	1,051			6	%		—		$	3,733		$	4,105			10	%
Tax-exempt		133			133			137			137			141			6	%		3	%		533			548			3	%
Total fixed maturities		1,121			1,135			1,141			1,185			1,192			6	%		1	%		4,266			4,653			9	%
Equities
Available-for-sale		25			28			34			36			41			64	%		14	%		92			139			51	%
Held for trading		1,155			210			1,234			(698	)		(601	)	NM				14	%		1,824			145			(92	%)
Total equities		1,180			238			1,268			(662	)		(560	)	NM				15	%		1,916			284			(85	%)
Mortgage loans		49			57			76			79			81			65	%		3	%		158			293			85	%
Policy loans		36			36			34			32			33			(8	%)		3	%		142			135			(5	%)
Limited partnerships and other alternative investments [2]		52			66			107			42			40			(23	%)		(5	%)		133			255			92	%
Other [3]		(16	)		(27	)		(30	)		(51	)		(53	)	NM				(4	%)		(13	)		(161	)	NM
Subtotal		2,422			1,505			2,596			625			733			(70	%)		17	%		6,602			5,459			(17	%)
Less: Investment expense		25			22			26			25			27			8	%		8	%		87			100			15	%
Total net investment income (loss)	$	2,397		$	1,483		$	2,570		$	600		$	706			(71	%)		18	%	$	6,515		$	5,359			(18	%)
Less: Securities held for trading		1,155			210			1,234			(698	)		(601	)	NM				14	%		1,824			145			(92	%)
Total net investment income excluding trading securities	$	1,242		$	1,273		$	1,336		$	1,298		$	1,307			5	%		1	%	$	4,691		$	5,214			11	%
Annualized investment yield, before-tax [4]		5.9	%		5.9	%		6.1	%		5.8	%		5.8	%		(0.1	)		—			5.7	%		5.9	%		0.2
Annualized investment yield, after-tax [4]		4.0	%		4.1	%		4.2	%		4.0	%		4.0	%		—			—			3.9	%		4.1	%		0.2
Net Realized Capital Gains (Losses)
Gross gains on sale	$	137		$	124		$	74		$	56		$	120			(12	%)		114	%	$	420		$	374			(11	%)
Gross losses on sale		(84	)		(66	)		(88	)		(81	)		(56	)		33	%		31	%		(421	)		(291	)		31	%
Impairments
Credit related		(7	)		(12	)		(10	)		(42	)		(240	)	NM			NM				(10	)		(304	)	NM
Other [5]		(4	)		(3	)		(30	)		(68	)		(78	)	NM				(15	%)		(111	)		(179	)		(61	%)
Total impairments		(11	)		(15	)		(40	)		(110	)		(318	)	NM				(189	%)		(121	)		(483	)	NM
Japanese fixed annuity contract hedges, net [6]		3			5			(17	)		15			15		NM				—			(17	)		18		NM
Periodic net coupon settlements on credit derivatives/Japan [7]		(12	)		(9	)		(10	)		(4	)		(2	)		83	%		50	%		(44	)		(25	)		43	%
GMWB derivatives, net [8]		—			22			(133	)		(139	)		(27	)		—			81	%		(26	)		(277	)	NM
Other net gain (loss) [9]		(11	)		(15	)		(34	)		(100	)		(161	)	NM				(61	%)		(42	)		(310	)	NM
Total net realized capital gains (losses)	$	22		$	46		$	(248	)	$	(363	)	$	(429	)	NM				(18	%)	$	(251	)	$	(994	)	NM

[1]	Includes income on short-term bonds.
[2]	Includes hedge fund investments outside of limited partnerships and real estate joint ventures.
[3]	Primarily represents fees associated with securities lending activities. The income from securities lending activities is included within fixed maturities. Also included are derivatives that qualify for hedge accounting under SFAS 133. These derivatives hedge fixed maturities.
[4]	Yields calculated using net investment income (excluding income related to equity securities held for trading) divided by the monthly weighted average invested assets at cost, amortized cost, or adjusted carrying value, as applicable excluding equity securities held for trading, collateral received associated with the securities lending program and consolidated variable interest entity minority interests.
[5]	Primarily relates to fixed maturity impairments for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow for a recovery to amortized cost. These impairments do not relate to security issuers for which the Company has current concerns regarding their ability to pay future interest and principal amounts based upon the securities’ contractual terms.
[6]	Relates to the Japanese fixed annuity product (product and related derivative hedging instruments excluding periodic net coupon settlements).
[7]	Included in core earnings.
[8]	The net losses for 2007 were primarily the result of liability model assumption updates and model refinements. Liability model assumption updates were made during the second and third quarters to reflect newly reliable market inputs for volatility.
[9]	Primarily consists of changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments. In addition, the three months ended December 31, 2006 includes a before-tax benefit of $35 received from the WorldCom security settlement and a before-tax loss of $24 from the sale of Omni.

I-1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT EARNINGS BEFORE-TAX
LIFE

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEARS ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	714		$	727		$	731		$	762		$	769			8	%		1	%	$	2,742		$	2,989			9	%
Tax-exempt		30			30			31			32			32			7	%		—			118			125			6	%
Total fixed maturities		744			757			762			794			801			8	%		1	%		2,860			3,114			9	%
Equities
Available-for-sale		15			18			22			23			23			53	%		—			56			86			54	%
Held for trading		1,155			210			1,234			(698	)		(601	)	NM				14	%		1,824			145			(92	%)
Total equities		1,170			228			1,256			(675	)		(578	)	NM				14	%		1,880			231			(88	%)
Mortgage loans		44			50			66			68			71			61	%		4	%		142			255			80	%
Policy loans		36			36			34			32			33			(8	%)		3	%		142			135			(5	%)
Limited partnerships and other alternative investments [2]		23			32			46			23			14			(39	%)		(39	%)		69			115			67	%
Other [3]		(19	)		(24	)		(27	)		(39	)		(43	)		(126	%)		(10	%)		(22	)		(133	)	NM
Subtotal		1,998			1,079			2,137			203			298			(85	%)		47	%		5,071			3,717			(27	%)
Less: Investment expense		18			17			19			18			21			17	%		17	%		63			75			19	%
Total net investment income (loss)	$	1,980		$	1,062		$	2,118		$	185		$	277			(86	%)		50	%	$	5,008		$	3,642			(27	%)
Less: Securities held for trading		1,155			210			1,234			(698	)		(601	)	NM				14	%		1,824			145			(92	%)
Total net investment income excluding trading securities	$	825		$	852		$	884		$	883		$	878			6	%		(1	%)	$	3,184		$	3,497			10	%
Annualized investment yield, before-tax [4]		5.9	%		6.0	%		6.1	%		6.0	%		5.8	%		(0.1	)		(0.2	)		5.8	%		6.0	%		0.2
Annualized investment yield, after-tax [4]		3.9	%		4.0	%		4.0	%		4.0	%		3.9	%		—			(0.1	)		3.8	%		4.0	%		0.2
Net Realized Capital Gains (Losses)
Gross gains on sale	$	65		$	72		$	36		$	25		$	80			23	%	NM			$	215		$	213			(1	%)
Gross losses on sale		(50	)		(40	)		(52	)		(45	)		(31	)		38	%		31	%		(257	)		(168	)		35	%
Impairments
Credit related		(7	)		(12	)		—			(31	)		(198	)	NM			NM				(10	)		(241	)	NM
Other [5]		—			(2	)		(20	)		(44	)		(51	)		—			(16	%)		(66	)		(117	)		(77	%)
Total impairments		(7	)		(14	)		(20	)		(75	)		(249	)	NM			NM				(76	)		(358	)	NM
Japanese fixed annuity contract hedges, net [6]		3			5			(17	)		15			15		NM				—			(17	)		18		NM
Periodic net coupon settlements on credit derivatives/Japan [7]		(14	)		(12	)		(13	)		(9	)		(6	)		57	%		33	%		(48	)		(40	)		17	%
GMWB derivatives, net [8]		—			22			(133	)		(139	)		(27	)		—			81	%		(26	)		(277	)	NM
Other net gain (loss) [9]		8			(10	)		(22	)		(60	)		(115	)	NM				(92	%)		(51	)		(207	)	NM
Total net realized capital gains (losses)	$	5		$	23		$	(221	)	$	(288	)	$	(333	)	NM				(16	%)	$	(260	)	$	(819	)	NM

[1]	Includes income on short-term bonds.
[2]	Includes real estate joint ventures.
[3]	Primarily represents fees associated with securities lending activities. The income from securities lending activities is included within fixed maturities. Also included are derivatives that qualify for hedge accounting under SFAS 133. These derivatives hedge fixed maturities.
[4]	Yields calculated using net investment income (excluding income related to equity securities held for trading) divided by the monthly weighted average invested assets at cost, amortized cost, or adjusted carrying value, as applicable excluding equity securities held for trading, collateral received associated with the securities lending program and consolidated variable interest entity minority interests.
[5]	Primarily relates to fixed maturity impairments for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow for a recovery to amortized cost. These impairments do not relate to security issuers for which the Company has current concerns regarding their ability to pay future interest and principal amounts based upon the securities’ contractual terms.
[6]	Relates to the Japanese fixed annuity product (product and related derivative hedging instruments excluding periodic net coupon settlements).
[7]	Included in core earnings.
[8]	The net losses for 2007 were primarily the result of liability model assumption updates and model refinements. Liability model assumption updates were made during the second and third quarters to reflect newly reliable market inputs for volatility.
[9]	Primarily consists of changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments. In addition, the three months ended December 31, 2006 includes a before-tax benefit of $25 received from the WorldCom security settlement.

I-2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT EARNINGS BEFORE-TAX
PROPERTY & CASUALTY

																Year Over
	THREE MONTHS ENDED															Year			Sequential			YEARS ENDED
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006			2007			2007			2007			2007			Change			Change			2006			2007			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	263		$	267		$	267		$	278		$	276			5	%		(1	%)	$	971		$	1,088			12	%
Tax-exempt		103			103			106			105			109			6	%		4	%		415			423			2	%
Total fixed maturities		366			370			373			383			385			5	%		1	%		1,386			1,511			9	%
Equities — available-for-sale		9			10			12			12			16			78	%		33	%		35			50			43	%
Mortgage loans		5			7			10			11			10			100	%		(9	%)		16			38			138	%
Limited partnerships and other alternative investments [2]		29			34			61			19			26		��	(10	%)		37	%		64			140			119	%
Other [3]		3			(3	)		(3	)		(11	)		(10	)	NM				9	%		9			(27	)	NM
Subtotal		412			418			453			414			427			4	%		3	%		1,510			1,712			13	%
Less: Investment expense		7			5			7			7			6			(14	%)		(14	%)		24			25			4	%
Total net investment income (loss)	$	405		$	413		$	446		$	407		$	421			4	%		3	%	$	1,486		$	1,687			14	%
Annualized investment yield, before-tax [4]		5.8	%		5.9	%		6.3	%		5.6	%		5.8	%		—			0.2			5.5	%		5.9	%		0.4
Annualized investment yield, after-tax [4]		4.3	%		4.4	%		4.7	%		4.1	%		4.3	%		—			0.2			4.1	%		4.4	%		0.3
Net Realized Capital Gains (Losses)
Gross gains on sale	$	72		$	52		$	38		$	31		$	38			(47	%)		23	%	$	205		$	159			(22	%)
Gross losses on sale		(34	)		(26	)		(36	)		(36	)		(23	)		32	%		36	%		(164	)		(121	)		26	%
Impairments
Credit related		—			—			(10	)		(11	)		(42	)		—		NM				—			(63	)		—
Other [5]		(4	)		(1	)		(10	)		(24	)		(27	)	NM				(13	%)		(45	)		(62	)		(38	%)
Total impairments		(4	)		(1	)		(20	)		(35	)		(69	)	NM				(97	%)		(45	)		(125	)		(178	%)
Periodic net coupon settlements on credit derivatives [6]		2			3			3			5			4			100	%		(20	%)		4			15		NM
Other net gain (loss) [7]		(19	)		(5	)		(9	)		(40	)		(46	)		(142	%)		(15	%)		9			(100	)	NM
Total net realized capital gains (losses)	$	17		$	23		$	(24	)	$	(75	)	$	(96	)	NM				(28	%)	$	9			(172	)	NM

[1]	Includes income on short-term bonds.
[2]	Includes hedge fund investments outside of limited partnerships and real estate joint ventures.
[3]	Primarily represents fees associated with securities lending activities. The income from securities lending activities is included within fixed maturities. Also included are derivatives that qualify for hedge accounting under SFAS 133. These derivatives hedge fixed maturities.
[4]	Yields calculated using net investment income divided by the monthly weighted average invested assets at cost, amortized cost, or adjusted carrying value, as applicable excluding equity securities held for trading and collateral received associated with the securities lending program.
[5]	Primarily relates to fixed maturity impairments for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow for a recovery to amortized cost. These impairments do not relate to security issuers for which the Company has current concerns regarding their ability to pay future interest and principal amounts based upon the securities’ contractual terms.
[6]	Included in core earnings.
[7]	Primarily consists of changes in fair value on non-qualifying derivatives, hedge ineffectiveness on qualifying derivative instruments and other investment gains. In addition, the three months ended December 31, 2006 includes a before-tax benefit of $10 received from the WorldCom security settlement and a before-tax loss of $24 from the sale of Omni.

I-3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT EARNINGS BEFORE-TAX
CORPORATE

														Year Over
	THREE MONTHS ENDED													Year			Sequential			YEARS ENDED
	Dec. 31,		Mar. 31,		Jun. 30,			Sept. 30,			Dec. 31,			3 Month			3 Month			DECEMBER 31,
	2006		2007		2007			2007			2007			Change			Change			2006		2007			Change
Net Investment Income
Fixed maturities [1]
Taxable	$	11	$	8	$	6		$	8		$	6			(45	%)		(25	%)	$	20	$	28			40	%
Total fixed maturities		11		8		6			8			6			(45	%)		(25	%)		20		28			40	%
Equities — available-for-sale		1		—		—			1			2			100	%		100	%		1		3		NM
Other		—		—		—			(1	)		—			—			100	%		—		(1	)		—
Total net investment income	$	12	$	8	$	6		$	8		$	8			(33	%)		—			21		30			43	%
Net Realized Capital Gains (Losses)
Gross gains on sale		—		—		—			—			2			—			—			—		2			—
Gross losses on sale		—		—		—			—			(2	)		—			—			—		(2	)		—
Other net gain (loss) [2]		—		—		(3	)		—			—			—			—			—		(3	)		—
Total net realized capital gains (losses)	$	—	$	—	$	(3	)	$	—		$	—			—			—		$	—	$	(3	)		—

[1]	Includes income on short-term bonds.
[2]	Primarily consists of changes in fair value on non-qualifying derivatives.

I-4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED

	December 31,					March 31,					June 30,					September 30,					December 31,
	2006					2007					2007					2007					2007
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value [1]	$	79,074		66.4	%	$	79,645		64.8	%	$	80,046		63.9	%	$	80,960		62.7	%	$	80,055		61.1	%
Equity securities, at fair value
Available-for-sale [2]		1,739		1.5	%		2,212		1.8	%		2,390		1.9	%		2,449		1.9	%		2,595		2.0	%
Held for trading		29,393		24.7	%		30,805		25.1	%		31,843		25.4	%		34,901		27.0	%		36,182		27.6	%
Total equity securities, at fair value		31,132		26.1	%		33,017		26.9	%		34,233		27.3	%		37,350		28.9	%		38,777		29.6	%
Policy loans, at outstanding balance		2,051		1.7	%		2,099		1.7	%		2,052		1.6	%		2,050		1.6	%		2,061		1.5	%
Mortgage loans, at cost		3,318		2.8	%		4,015		3.3	%		4,891		3.9	%		5,236		4.0	%		5,410		4.1	%
Limited partnerships and other alternative investments [3]		1,596		1.3	%		1,883		1.5	%		2,144		1.7	%		2,317		1.8	%		2,566		2.0	%
Short-term [4]		1,681		1.4	%		1,921		1.5	%		1,590		1.3	%		858		0.7	%		1,602		1.2	%
Other investments [5]		319		0.3	%		363		0.3	%		321		0.3	%		363		0.3	%		615		0.5	%
Total investments	$	119,171		100.0	%	$	122,943		100.0	%	$	125,277		100.0	%	$	129,134		100.0	%	$	131,086		100.0	%
Less: Equity securities held for trading		29,393		24.7	%		30,805		25.1	%		31,843		25.4	%		34,901		27.0	%		36,182		27.6	%
Total investments excluding trading securities	$	89,778		75.3	%	$	92,138		74.9	%	$	93,434		74.6	%	$	94,233		73.0	%	$	94,904		72.4	%
HIMCO managed third party accounts	$	7,157				$	7,654				$	8,343				$	8,430				$	10,872
Asset-backed securities (“ABS”)	$	7,691		9.7	%	$	8,754		11.0	%	$	9,411		11.8	%	$	9,294		11.5	%	$	8,915		11.1	%
Commercial mortgage-backed securities (“CMBS”)		16,900		21.4	%		17,230		21.6	%		17,899		22.4	%		18,133		22.4	%		17,031		21.3	%
Collateralized mortgage obligation (“CMO”)		1,308		1.7	%		1,231		1.5	%		1,514		1.9	%		1,778		2.2	%		1,745		2.2	%
Corporate		35,891		45.4	%		34,736		43.6	%		33,405		41.7	%		34,153		42.2	%		34,198		42.7	%
Government/Government agencies — Foreign		1,294		1.6	%		1,272		1.6	%		1,013		1.3	%		1,039		1.3	%		1,053		1.3	%
Government/Government agencies — U.S.		846		1.1	%		1,055		1.3	%		1,153		1.4	%		950		1.2	%		855		1.1	%
Mortgage-backed securities (“MBS”) — agency		2,702		3.4	%		2,509		3.2	%		3,073		3.8	%		2,776		3.4	%		2,763		3.5	%
Municipal — taxable		1,344		1.7	%		1,345		1.7	%		1,310		1.6	%		1,302		1.6	%		1,386		1.7	%
Municipal — tax-exempt		11,062		14.0	%		11,466		14.4	%		11,259		14.1	%		11,528		14.2	%		12,103		15.1	%
Redeemable preferred stock		36		—			47		0.1	%		9		—			7		—			6		—
Total fixed maturities [1]	$	79,074		100.0	%	$	79,645		100.0	%	$	80,046		100.0	%	$	80,960		100.0	%	$	80,055		100.0	%
AAA	$	23,629		29.9	%	$	25,500		32.0	%	$	27,177		34.0	%	$	28,781		35.6	%	$	28,318		35.4	%
AA		10,298		13.0	%		10,911		13.7	%		11,124		13.9	%		11,266		13.9	%		10,999		13.7	%
A		18,251		23.1	%		17,175		21.6	%		16,507		20.6	%		16,498		20.4	%		17,030		21.3	%
BBB		17,655		22.3	%		17,023		21.4	%		15,684		19.6	%		15,501		19.1	%		14,974		18.7	%
U.S. Government/Government agencies		5,507		7.0	%		5,406		6.8	%		6,174		7.7	%		5,383		6.6	%		5,229		6.5	%
BB & below		3,734		4.7	%		3,630		4.5	%		3,380		4.2	%		3,531		4.4	%		3,505		4.4	%
Total fixed maturities [1]	$	79,074		100.0	%	$	79,645		100.0	%	$	80,046		100.0	%	$	80,960		100.0	%	$	80,055		100.0	%

[1]	Includes $259, $90, $40, $425, and $308 in Corporate at December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively, of which $259, $90, $30, $395, and $303, respectively, were investments held by The Hartford Financial Services Group, Inc.
[2]	Includes $55, $53, $56, $71, and $103 in Corporate at December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively.
[3]	Includes hedge fund investments outside of limited partnerships and real estate joint ventures.
[4]	Includes $145, $396, $346, $59, and $160 in Corporate at December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively, of which $122, $371, $319, $52, and $154, respectively, were investments held by The Hartford Financial Services Group, Inc.
[5]	Primarily relates to derivative instruments. Additionally, includes $45, $43, $38, and $43 in Corporate at March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, respectively.

I-5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
LIFE

	December 31,					March 31,					June 30,					September 30,					December 31,
	2006					2007					2007					2007					2007
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	52,081		58.2	%	$	52,747		56.7	%	$	52,824		55.8	%	$	53,288		54.3	%	$	52,542		52.6	%
Equity securities, at fair value
Available-for-sale		811		0.9	%		1,298		1.4	%		1,387		1.4	%		1,307		1.3	%		1,284		1.3	%
Held for trading		29,393		32.9	%		30,805		33.2	%		31,843		33.7	%		34,901		35.6	%		36,182		36.2	%
Total equity securities, at fair value		30,204		33.8	%		32,103		34.6	%		33,230		35.1	%		36,208		36.9	%		37,466		37.5	%
Policy loans, at outstanding balance		2,051		2.3	%		2,099		2.3	%		2,052		2.2	%		2,050		2.1	%		2,061		2.1	%
Mortgage loans, at cost		2,909		3.3	%		3,509		3.8	%		4,236		4.5	%		4,551		4.6	%		4,739		4.8	%
Limited partnerships and other alternative investments [1]		794		0.9	%		982		1.0	%		1,050		1.1	%		1,138		1.2	%		1,306		1.3	%
Short-term		1,092		1.2	%		1,195		1.3	%		958		1.0	%		629		0.6	%		1,158		1.2	%
Other investments [2]		281		0.3	%		281		0.3	%		240		0.3	%		287		0.3	%		534		0.5	%
Total investments	$	89,412		100.0	%	$	92,916		100.0	%	$	94,590		100.0	%	$	98,151		100.0	%	$	99,806		100.0	%
Less: Equity securities held for trading		29,393		32.9	%		30,805		33.2	%		31,843		33.7	%		34,901		35.6	%		36,182		36.2	%
Total investments excluding trading securities	$	60,019		67.1	%	$	62,111		66.8	%	$	62,747		66.3	%	$	63,250		64.4	%	$	63,624		63.8	%
ABS	$	6,523		12.5	%	$	7,500		14.2	%	$	7,895		14.9	%	$	7,877		14.8	%	$	7,556		14.4	%
CMBS		12,077		23.2	%		12,355		23.4	%		12,558		23.8	%		12,815		24.1	%		12,056		22.9	%
CMO		1,004		1.9	%		928		1.8	%		1,147		2.2	%		1,401		2.6	%		1,366		2.6	%
Corporate		25,572		49.1	%		24,996		47.4	%		23,958		45.4	%		24,295		45.6	%		24,583		46.8	%
Government/Government agencies — Foreign		689		1.3	%		648		1.2	%		547		1.0	%		577		1.1	%		571		1.1	%
Government/Government agencies — U.S.		661		1.3	%		819		1.6	%		944		1.8	%		733		1.4	%		616		1.2	%
MBS — agency		1,903		3.7	%		1,759		3.3	%		2,133		4.0	%		1,869		3.5	%		1,913		3.6	%
Municipal — taxable		1,144		2.2	%		1,144		2.2	%		1,115		2.1	%		1,141		2.1	%		1,244		2.4	%
Municipal — tax-exempt		2,495		4.8	%		2,582		4.9	%		2,522		4.8	%		2,577		4.8	%		2,634		5.0	%
Redeemable preferred stock		13		—			16		—			5		—			3		—			3		—
Total fixed maturities	$	52,081		100.0	%	$	52,747		100.0	%	$	52,824		100.0	%	$	53,288		100.0	%	$	52,542		100.0	%
AAA	$	13,301		25.5	%	$	14,908		28.3	%	$	15,901		30.1	%	$	17,058		32.0	%	$	16,638		31.6	%
AA		6,584		12.7	%		6,901		13.1	%		6,997		13.2	%		7,081		13.3	%		6,914		13.2	%
A		13,193		25.3	%		12,423		23.6	%		11,921		22.6	%		12,042		22.6	%		12,335		23.5	%
BBB		12,909		24.8	%		12,627		23.9	%		11,710		22.2	%		11,432		21.5	%		11,070		21.1	%
U.S. Government/Government agencies		3,947		7.6	%		3,870		7.3	%		4,418		8.4	%		3,791		7.1	%		3,668		7.0	%
BB & below		2,147		4.1	%		2,018		3.8	%		1,877		3.5	%		1,884		3.5	%		1,917		3.6	%
Total fixed maturities	$	52,081		100.0	%	$	52,747		100.0	%	$	52,824		100.0	%	$	53,288		100.0	%	$	52,542		100.0	%

[1]	Includes real estate joint ventures.
[2]	Primarily relates to derivative instruments.

I-6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
PROPERTY & CASUALTY

	December 31,					March 31,					June 30,					September 30,					December 31,
	2006					2007					2007					2007					2007
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	26,734		91.3	%	$	26,808		91.1	%	$	27,182		90.0	%	$	27,247		89.6	%	$	27,205		88.8	%
Equity securities, available-for-sale, at fair value		873		3.0	%		861		2.9	%		947		3.1	%		1,071		3.5	%		1,208		3.9	%
Mortgage loans, at cost		409		1.4	%		506		1.7	%		655		2.2	%		685		2.3	%		671		2.2	%
Limited partnerships and other alternative investments [1]		802		2.7	%		901		3.1	%		1,094		3.6	%		1,179		3.9	%		1,260		4.1	%
Short-term		444		1.5	%		330		1.1	%		286		1.0	%		170		0.6	%		284		0.9	%
Other investments		38		0.1	%		37		0.1	%		38		0.1	%		38		0.1	%		38		0.1	%
Total investments	$	29,300		100.0	%	$	29,443		100.0	%	$	30,202		100.0	%	$	30,390		100.0	%	$	30,666		100.0	%
ABS	$	1,168		4.4	%	$	1,254		4.7	%	$	1,516		5.6	%	$	1,417		5.2	%	$	1,359		5.0	%
CMBS		4,823		18.0	%		4,875		18.2	%		5,341		19.6	%		5,318		19.5	%		4,975		18.3	%
CMO		304		1.1	%		303		1.1	%		367		1.4	%		377		1.4	%		379		1.4	%
Corporate		10,060		37.7	%		9,650		36.1	%		9,407		34.6	%		9,433		34.6	%		9,307		34.2	%
Government/Government agencies — Foreign		605		2.3	%		624		2.3	%		466		1.7	%		462		1.7	%		482		1.8	%
Government/Government agencies — U.S.		185		0.7	%		236		0.9	%		209		0.8	%		217		0.8	%		239		0.9	%
MBS — agency		799		3.0	%		750		2.8	%		940		3.5	%		907		3.3	%		850		3.1	%
Municipal — taxable		200		0.7	%		201		0.7	%		195		0.7	%		161		0.6	%		142		0.5	%
Municipal — tax-exempt		8,567		32.0	%		8,884		33.1	%		8,737		32.1	%		8,951		32.9	%		9,469		34.8	%
Redeemable preferred stock		23		0.1	%		31		0.1	%		4		—			4		—			3		—
Total fixed maturities	$	26,734		100.0	%	$	26,808		100.0	%	$	27,182		100.0	%	$	27,247		100.0	%	$	27,205		100.0	%
AAA	$	10,321		38.7	%	$	10,588		39.5	%	$	11,273		41.5	%	$	11,696		42.9	%	$	11,660		42.9	%
AA		3,583		13.4	%		3,965		14.8	%		4,106		15.1	%		3,961		14.6	%		3,915		14.4	%
A		4,950		18.5	%		4,715		17.6	%		4,572		16.8	%		4,318		15.8	%		4,586		16.9	%
BBB		4,733		17.7	%		4,392		16.4	%		3,972		14.6	%		4,058		14.9	%		3,895		14.3	%
U.S. Government/Government agencies		1,560		5.8	%		1,536		5.7	%		1,756		6.5	%		1,592		5.8	%		1,561		5.7	%
BB & below		1,587		5.9	%		1,612		6.0	%		1,503		5.5	%		1,622		6.0	%		1,588		5.8	%
Total fixed maturities	$	26,734		100.0	%	$	26,808		100.0	%	$	27,182		100.0	%	$	27,247		100.0	%	$	27,205		100.0	%

[1] Includes hedge fund investments outside of limited partnerships and real estate joint ventures.

I-7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
UNREALIZED LOSS AGING
CONSOLIDATED [1] [2]

	December 31, 2007							December 31, 2006
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS [3] Securities
Three months or less	$	10,879	$	10,445	$	(434	)	$	12,601	$	12,500	$	(101	)
Greater than three months to six months		11,857		10,954		(903	)		1,261		1,242		(19	)
Greater than six months to nine months		10,086		9,354		(732	)		1,239		1,210		(29	)
Greater than nine months to twelve months		2,756		2,545		(211	)		1,992		1,959		(33	)
Greater than twelve months		10,563		10,071		(492	)		15,402		14,911		(491	)
Total	$	46,141	$	43,369	$	(2,772	)	$	32,495	$	31,822	$	(673	)
BIG [4] and Equity AFS [3] Securities
Three months or less	$	1,487	$	1,386	$	(101	)	$	631	$	624	$	(7	)
Greater than three months to six months		1,181		1,026		(155	)		52		50		(2	)
Greater than six months to nine months		687		613		(74	)		128		122		(6	)
Greater than nine months to twelve months		188		173		(15	)		128		124		(4	)
Greater than twelve months		386		349		(37	)		573		529		(44	)
Total	$	3,929	$	3,547	$	(382	)	$	1,512	$	1,449	$	(63	)

[1]	As of December 31, 2007, fixed maturities represented $2,538 or 92%, of the Company’s total unrealized loss of available-for-sale securities. The Company held no securities of a single issuer that were at an unrealized loss position in excess of 5% of the total unrealized loss amount as of December 31, 2007 and 2006. For a detailed discussion of the other than temporary impairment criteria, see “Evaluation of Other-Than-Temporary Impairments on Available-for-Sale Securities” included in the Critical Accounting Estimates section of the Management’s Discussion & Analysis and “Other-Than-Temporary Impairments on Available-for-Sale Securities” in Note 1 of Notes to Consolidated Financial Statements, both of which are included in The Hartford’s 2006 Form 10-K Annual Report.
[2]	Includes investments held in Corporate.
[3]	Represents available-for-sale (“AFS”) securities.
[4]	Represents below investment grade (“BIG”) securities.

I-8

'

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
UNREALIZED LOSS AGING
LIFE

	December 31, 2007							December 31, 2006
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS Securities
Three months or less	$	7,532	$	7,216	$	(316	)	$	8,462	$	8,392	$	(70	)
Greater than three months to six months		8,807		8,126		(681	)		999		985		(14	)
Greater than six months to nine months		6,179		5,678		(501	)		934		912		(22	)
Greater than nine months to twelve months		2,100		1,936		(164	)		1,186		1,166		(20	)
Greater than twelve months		6,782		6,459		(323	)		9,952		9,635		(317	)
Total	$	31,400	$	29,415	$	(1,985	)	$	21,533	$	21,090	$	(443	)
BIG and Equity AFS Securities
Three months or less	$	813	$	752	$	(61	)	$	391	$	387	$	(4	)
Greater than three months to six months		610		545		(65	)		26		25		(1	)
Greater than six months to nine months		401		355		(46	)		57		53		(4	)
Greater than nine months to twelve months		151		139		(12	)		74		71		(3	)
Greater than twelve months		218		192		(26	)		410		371		(39	)
Total	$	2,193	$	1,983	$	(210	)	$	958	$	907	$	(51	)

I-9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
UNREALIZED LOSS AGING
PROPERTY & CASUALTY

	December 31, 2007							December 31, 2006
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS Securities
Three months or less	$	3,205	$	3,090	$	(115	)	$	3,954	$	3,923	$	(31	)
Greater than three months to six months		2,938		2,718		(220	)		250		245		(5	)
Greater than six months to nine months		3,882		3,652		(230	)		305		298		(7	)
Greater than nine months to twelve months		648		601		(47	)		800		787		(13	)
Greater than twelve months		3,779		3,610		(169	)		5,446		5,272		(174	)
Total	$	14,452	$	13,671	$	(781	)	$	10,755	$	10,525	$	(230	)
BIG and Equity AFS Securities
Three months or less	$	659	$	621	$	(38	)	$	232	$	229	$	(3	)
Greater than three months to six months		570		480		(90	)		26		25		(1	)
Greater than six months to nine months		284		256		(28	)		71		69		(2	)
Greater than nine months to twelve months		37		34		(3	)		54		53		(1	)
Greater than twelve months		168		157		(11	)		161		156		(5	)
Total	$	1,718	$	1,548	$	(170	)	$	544	$	532	$	(12	)

I-10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
AS OF DECEMBER 31, 2007

	LIFE						P&C						CONSOLIDATED [1]
			Percent of						Percent of						Percent of
TOP TEN CORPORATE			Total						Total						Total
FIXED MATURITY	Fair		Invested				Fair		Invested				Fair		Invested
EXPOSURES BY SECTOR	Value		Assets				Value		Assets				Value		Assets
Basic industry	$	1,812		1.8	%	Basic industry	$	723		2.3	%	Basic industry	$	2,535		1.9	%
Capital goods		1,666		1.7	%	Capital goods		588		1.9	%	Capital goods		2,254		1.7	%
Consumer cyclical		2,200		2.2	%	Consumer cyclical		821		2.7	%	Consumer cyclical		3,038		2.3	%
Consumer non cyclical		2,237		2.3	%	Consumer non cyclical		819		2.7	%	Consumer non cyclical		3,060		2.3	%
Energy		1,229		1.2	%	Energy		422		1.4	%	Energy		1,654		1.3	%
Financial services		8,218		8.2	%	Financial services		3,094		10.1	%	Financial services		11,596		8.9	%
Technology and communications		2,798		2.8	%	Technology and communications		1,106		3.6	%	Technology and communications		3,904		3.0	%
Transportation		325		0.3	%	Transportation		75		0.2	%	Transportation		400		0.3	%
Utilities		3,199		3.2	%	Utilities		1,378		4.5	%	Utilities		4,577		3.5	%
Other		899		0.9	%	Other		281		0.9	%	Other		1,180		0.9	%
Total	$	24,583		24.6	%	Total	$	9,307		30.3	%	Total	$	34,198		26.1	%
TOP TEN EXPOSURES BY ISSUER [2]
Wachovia Bank Comm. Mrtg. Trust [3]	$	414		0.4	%	State of California	$	306		1.0	%	Wachovia Bank Comm. Mrtg. Trust [3]	$	478		0.4	%
Goldman EOP [3]		297		0.3	%	State of Massachusetts		227		0.7	%	State of California		472		0.3	%
Citigroup/Deutsche Bank Comm. Mrtg. [3]		287		0.3	%	New York, NY		224		0.7	%	Goldman EOP [3]		419		0.3	%
General Electric Capital Corp.		253		0.3	%	State of Georgia		222		0.7	%	Citigroup/Deutsche Bank Comm. Mrtg. [3]		361		0.3	%
Parcs-r [3]		252		0.2	%	Chicago, IL Wastewater Transmission		170		0.6	%	General Electric Capital Corp.		354		0.3	%
Parcs Ltd.		234		0.2	%	Insurance Services Office, Inc.		163		0.5	%	State of Massachusetts		352		0.3	%
Comm. Mrtg Pass-thru Certificate [3]		218		0.2	%	State of Illinois		147		0.5	%	Parcs-r [3]		350		0.3	%
Citigroup Inc.		186		0.2	%	State of Louisiana		145		0.5	%	Citigroup Inc.		309		0.2	%
Lehman Brothers Holding, Inc.		177		0.2	%	JP Morgan Chase Comm. Mrtg. Sec Corp. [3]		142		0.5	%	Parcs Ltd.		280		0.2	%
Merrill Lynch & Co., Inc.		169		0.2	%	Wachovia Bank Comm. Mrtg. Trust [3]		135		0.4	%	State of Illinois		270		0.2	%
Total	$	2,487		2.5	%	Total	$	1,881		6.1	%	Total	$	3,645		2.8	%

[1]	Includes investments held in Corporate.
[2]	Excludes U.S. government and government agency backed securities as well as securities classified as trading securities.
[3]	Includes multiple investment grade tranches.

I-11