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

INVESTOR FINANCIAL SUPPLEMENT

MARCH 31, 2008

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

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

As of April 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

TRANSFER AGENT
The Bank of New York Mellon
BNY Mellon Shareowner Services
480 Washington Boulevard
Jersey City, NJ 07310-1900
1 (877) 272-7740

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 March 31, 2008 and 2007	C-3
	Consolidating Balance Sheets
	As of March 31, 2008 and December 31, 2007	C-4
	Capital Structure	C-5
	Accumulated Other Comprehensive Income (Loss)	C-6
	Computation of Basic and Diluted Earnings Per Share	C-7
	Analysis of Net Realized Capital Gains and Losses
	Three Months Ended March 31, 2008 and 2008 After Tax and DAC	C-8
	Computation of Return-on-Equity Measures	C-9
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 December 31, 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
	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 March 31, 2008	PC-4
	Ongoing Operations Underwriting Results	PC-5
	Personal Lines Underwriting Results	PC-6
	Personal Lines Written and Earned Premiums	PC-7
	Small Commercial Underwriting Results	PC-8
	Middle Market Underwriting Results	PC-9
	Specialty Commercial Underwriting Results	PC-10
	Specialty Commercial Written and Earned Premiums	PC-11
	Other Operations Operating Results	PC-12
	Other Operations Losses and Loss Adjustment Expenses	PC-13
	Paid and Incurred Loss and Loss Adjustment Expense Development — A&E	PC-14
	Unpaid Loss and Loss Adjustment Expense Reserve Rollforward
	Three Months Ended March 31, 2008	PC-15
	Reinsurance Recoverable Analysis	PC-16
	Consolidated Income Statements	PC-17
	Consolidated Balance Sheets	PC-18
	Statutory Surplus to GAAP Stockholders’ Equity Reconciliation	PC-19
INVESTMENTS	Investment Earnings Before-tax
	Consolidated	I-1
	Life	I-2
	Property & Casualty	I-3
	Corporate	I-4
	Net Realized Capital Gains (Losses), After-tax/DAC
	Three Months Ended March 31, 2008 and 2007	I-5
	Composition of Invested Assets
	Consolidated	I-6
	Life	I-7
	Property & Casualty	I-8
	Unrealized Loss Aging
	Consolidated	I-9
	Life	I-10
	Property & Casualty	I-11
	Invested Asset Exposures
	As of March 31, 2008	I-12

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. Ongoing Operations includes the underwriting results of 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 other 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 (“AUM”) is a measure used by the Company because a significant portion of the Company’s revenues are based upon asset values. These revenues increase or decrease directly with a rise or fall in the level of assets under management, whether caused by changes in the market or through net flow.
•	Assets under administration (“AUA”) represents the client asset base of the Company’s recordkeeping business for which revenues are predominantly based on the number of plan participants. Unlike assets under management, increases or decreases in assets under administration do not have a direct corresponding increase or decrease to the Company’s revenues.
•	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 March 31, 2008 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-7.
•	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-7.
•	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-12, 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-9.

iii

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
HIGHLIGHTS	2007			2007			2007			2007			2008			Change			Change
Net income	$	876		$	627		$	851		$	595		$	145			(83	%)		(76	%)
Core earnings	$	843		$	764		$	1,060		$	840		$	792			(6	%)		(6	%)
Total revenues	$	6,759		$	7,660		$	5,823		$	5,674		$	1,544			(77	%)		(73	%)
Total assets	$	332,590		$	345,511		$	356,271		$	360,361		$	344,168			3	%		(4	%)
Total assets under management [1]	$	386,672		$	405,666		$	419,332		$	426,764		$	424,193			10	%		(1	%)
PER SHARE AND SHARES DATA
Basic earnings per share
Net income	$	2.74		$	1.98		$	2.70		$	1.90		$	0.46			(83	%)		(76	%)
Core earnings	$	2.64		$	2.41		$	3.36		$	2.68		$	2.52			(5	%)		(6	%)
Diluted earnings per share
Net income	$	2.71		$	1.96		$	2.68		$	1.88		$	0.46			(83	%)		(76	%)
Core earnings	$	2.61		$	2.39		$	3.33		$	2.66		$	2.51			(4	%)		(6	%)
Weighted average common shares outstanding (basic)		319.6			316.8			315.4			313.4			313.8			(5.8	) sh		0.4	sh
Weighted average common shares outstanding and dilutive potential common shares (diluted)		322.7			319.6			318.0			316.1			315.7			(7.0	) sh		(0.4	) sh
Common shares outstanding		316.4			317.6			313.7			313.8			314.5			(1.9	) sh		0.7	sh
Book value per share	$	59.58		$	58.72		$	60.41		$	61.20		$	56.71			(5	%)		(7	%)
Per share impact of AOCI	$	0.56		$	(1.89	)	$	(2.12	)	$	(2.73	)	$	(7.08	)	NM				(159	%)
Book value per share (excluding AOCI)	$	59.02		$	60.61		$	62.53		$	63.93		$	63.79			8	%		—
FINANCIAL RATIOS
ROE (net income last 12 months to equity including AOCI) [2]		16.9	%		17.9	%		17.1	%		15.5	%		12.1	%		(4.8	)		(3.4	)
ROE (core earnings last 12 months to equity excluding AOCI) [2]		16.9	%		17.4	%		18.4	%		18.1	%		17.8	%		0.9			(0.3	)
Debt to capitalization including AOCI		19.2	%		19.5	%		19.2	%		19.0	%		21.8	%		2.6			2.8
Investment yield, after-tax		4.1	%		4.2	%		4.0	%		4.0	%		3.6	%		(0.5	)		(0.4	)
Ongoing Property & Casualty GAAP combined ratio		88.8			91.7			91.4			91.1			87.8			1.0			3.3

[1]	Includes mutual fund assets (see page L-3) and third party assets managed by HIMCO (see page I-6).
[2]	See page C-9 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
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,				3 Month			3 Month
	2007			2007			2007			2007			2008				Change			Change
LIFE
Retail Products Group
Individual Annuity	$	177		$	184		$	365		$	192		$	174				(2	%)		(9	%)
Other Retail		15			16			17			17			13				(13	%)		(24	%)
Total Retail Products Group		192			200			382			209			187				(3	%)		(11	%)
Retirement Plans		23			26			18			22			17				(26	%)		(23	%)
Institutional Solutions Group		35			32			38			35			22				(37	%)		(37	%)
Individual Life		46			46			64			40			41				(11	%)		3	%
Group Benefits		68			86			92			92			70				3	%		(24	%)
International		55			59			79			61			67				22	%		10	%
Other [1]		(1	)		(14	)		9			(2	)		(11	)		NM			NM
Total Life core earnings [2]		418			435			682			457			393				(6	%)		(14	%)
Ongoing Operations Underwriting Results
Personal Lines		130			84			78			30			105				(19	%)	NM
Small Commercial		84			101			119			204			119				42	%		(42	%)
Middle Market		33			34			22			55			51				55	%		(7	%)
Specialty Commercial		46			(2	)		6			(55	)		43				(7	%)	NM
Total Ongoing Operations underwriting results		293			217			225			234			318				9	%		36	%
Net servicing income		11			14			16			11			(1	)		NM			NM
Net investment income		351			385			346			357			310				(12	%)		(13	%)
Periodic net coupon settlements on credit derivatives, before-tax		3			3			5			4			2				(33	%)		(50	%)
Other expenses		(60	)		(56	)		(63	)		(69	)		(57	)			5	%		17	%
Income tax expense		(178	)		(165	)		(138	)		(155	)		(172	)			3	%		(11	%)
Ongoing Operations core earnings [1]		420			398			391			382			400				(5	%)		5	%
Other Operations core earnings [3]		28			(36	)		14			32			26				(7	%)		(19	%)
																��
Total Property & Casualty core earnings		448			362			405			414			426				(5	%)		3	%
Total Corporate core earnings [2]		(23	)		(33	)		(27	)		(31	)		(27	)			(17	%)		13	%
CONSOLIDATED
Core earnings		843			764			1,060			840			792				(6	%)		(6	%)
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [2][4]		33			(137	)		(209	)		(245	)		(647	)		NM				(164	%)
Net income	$	876		$	627		$	851		$	595		$	145				(83	%)		(76	%)
PER SHARE DATA [5]
Diluted earnings per share
Core earnings	$	2.61		$	2.39		$	3.33		$	2.66		$	2.51				(4	%)		(6	%)
Net income	$	2.71		$	1.96		$	2.68		$	1.88		$	0.46				(83	%)		(76	%)

[1]	Included in the three months ended June 30, 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 in Ongoing Operations core earnings is a charge of $9, after-tax, to reserve for regulatory matters.
[2]	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 page L-1 for further details by Life segment.
[3]	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 page C-8 for further analysis.
[5]	See page C-7 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
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
LIFE
Retail Products Group
Individual Annuity	$	177		$	184		$	365		$	192		$	174			(2	%)		(9	%)
Other Retail		15			16			17			17			13			(13	%)		(24	%)
Total Retail Products Group		192			200			382			209			187			(3	%)		(11	%)
Retirement Plans		23			26			18			22			17			(26	%)		(23	%)
Institutional Solutions Group		35			32			38			35			22			(37	%)		(37	%)
Individual Life		46			46			64			40			41			(11	%)		3	%
Group Benefits		68			86			92			92			70			3	%		(24	%)
International		55			59			79			61			67			22	%		10	%
Other [1]		(1	)		(14	)		9			(2	)		(11	)	NM			NM
Total Life core earnings [2]		418			435			682			457			393			(6	%)		(14	%)
PROPERTY & CASUALTY
Ongoing Operations Underwriting Results Before Catastrophes and Prior Year Development:
Personal Lines		151			120			111			61			127			(16	%)		108	%
Small Commercial		86			86			78			77			126			47	%		64	%
Middle Market		56			37			32			20			44			(21	%)		120	%
Specialty Commercial		32			14			25			15			20			(38	%)		33	%
Total Ongoing Operations underwriting results before catastrophes and prior year development		325			257			246			173			317			(2	%)		83	%
Catastrophes, excluding prior year development		(28	)		(52	)		(32	)		(65	)		(50	)		(79	%)		23	%
Prior year reserve development:
Catastrophe loss and loss adjustment expenses		5			(3	)		(8	)		(4	)		11			120	%	NM
Other loss and loss adjustment expenses		(9	)		15			19			130			40		NM				(69	%)
Total Ongoing Operations underwriting results		293			217			225			234			318			9	%		36	%
Net servicing income		11			14			16			11			(1	)	NM			NM
Net investment income		351			385			346			357			310			(12	%)		(13	%)
Periodic net coupon settlements on credit derivatives, before-tax		3			3			5			4			2			(33	%)		(50	%)
Other expenses		(60	)		(56	)		(63	)		(69	)		(57	)		5	%		17	%
Income tax expense		(178	)		(165	)		(138	)		(155	)		(172	)		3	%		(11	%)
Ongoing Operations core earnings [1]		420			398			391			382			400			(5	%)		5	%
Other Operations core earnings [3]		28			(36	)		14			32			26			(7	%)		(19	%)
Total Property & Casualty core earnings		448			362			405			414			426			(5	%)		3	%
CORPORATE
Total Corporate core earnings [2]		(23	)		(33	)		(27	)		(31	)		(27	)		(17	%)		13	%
CONSOLIDATED
Core earnings		843			764			1,060			840			792			(6	%)		(6	%)
Add: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings [2][4]		33			(137	)		(209	)		(245	)		(647	)	NM				(164	%)
Net income	$	876		$	627		$	851		$	595		$	145			(83	%)		(76	%)

[1]	Included in the three months ended June 30, 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 in Ongoing Operations core earnings is a charge of $9, after-tax, to reserve for regulatory matters.
[2]	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 page L-1 for further details by Life segment.
[3]	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 page C-8 for further analysis.

C-2a

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2007 AND 2008

	LIFE								PROPERTY & CASUALTY								CORPORATE									CONSOLIDATED
	2007		2008			Change			2007		2008			Change			2007			2008			Change			2007		2008			Change
Earned premiums	$	1,208	$	1,229			2	%	$	2,623	$	2,614			—		$	—		$	—			—		$	3,831	$	3,843			—
Fee income		1,278		1,332			4	%		—		—			—			4			5			25	%		1,282		1,337			4	%
Net investment income (loss)
Securities available-for-sale and other		852		819			(4	%)		413		365			(12	%)		8			9			13	%		1,273		1,193			(6	%)
Equity securities held for trading [1]		210		(3,578	)		NM			—		—			—			—			—			—			210		(3,578	)		NM
Total net investment income (loss)		1,062		(2,759	)		NM			413		365			(12	%)		8			9			13	%		1,483		(2,385	)		NM
Other revenues		—		—			—			118		120			2	%		(1	)		—			100	%		117		120			3	%
Net realized capital gains (losses)		23		(1,220	)		NM			23		(152	)		NM			—			1			—			46		(1,371	)		NM
Total revenues		3,571		(1,418	)		NM			3,177		2,947			(7	%)		11			15			36	%		6,759		1,544			(77	%)
Benefits, losses and loss adjustment expenses		1,658		1,718			4	%		1,675		1,639			(2	%)		—			—			—			3,333		3,357			1	%
Benefits, losses and loss adjustment expenses — returns credited on International variable annuities [1]		210		(3,578	)		NM			—		—			—			—			—			—			210		(3,578	)		NM
Amortization of deferred policy acquisition costs and present value of future profits		344		(55	)		NM			528		523			(1	%)		—			—			—			872		468			(46	%)
Insurance operating costs and expenses		737		797			8	%		151		153			1	%		—			—			—			888		950			7	%
Interest expense		—		1			—			—		—			—			63			66			5	%		63		67			6	%
Other expenses [2]		30		19			(37	%)		167		180			8	%		(16	)		(10	)		38	%		181		189			4	%
Total benefits and expenses		2,979		(1,098	)		NM			2,521		2,495			(1	%)		47			56			19	%		5,547		1,453			(74	%)
Income (loss) before income taxes		592		(320	)		NM			656		452			(31	%)		(36	)		(41	)		(14	%)		1,212		91			(92	%)
Income tax expense (benefit)		154		(165	)		NM			195		126			(35	%)		(13	)		(15	)		(15	%)		336		(54	)		NM
Net income (loss)		438		(155	)		NM			461		326			(29	%)		(23	)		(26	)		(13	%)		876		145			(83	%)
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		20		(548	)		NM			13		(100	)		NM			—			1			—			33		(647	)		NM
Core earnings	$	418	$	393			(6	%)	$	448	$	426			(5	%)	$	(23	)	$	(27	)		(17	%)	$	843	$	792			(6	%)

[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 March 31, 2007 and 2008 included $11 and $9, $14 and $10, and $(25) and $(19) 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 BALANCE SHEETS
AS OF DECEMBER 31, 2007 AND MARCH 31, 2008

	LIFE									PROPERTY & CASUALTY									CORPORATE									CONSOLIDATED
	Dec. 31,			Mar. 31,						Dec. 31,			Mar. 31,						Dec. 31,			Mar. 31,						Dec. 31,			Mar. 31,
	2007			2008			Change			2007			2008			Change			2007			2008			Change			2007			2008			Change
Investments
Fixed maturities, available-for-sale, at fair value	$	52,542		$	50,615			(4	%)	$	27,205		$	25,683			(6	%)	$	308		$	313			2	%	$	80,055		$	76,611			(4	%)
Equity securities, trading, at fair value		36,182			37,406			3	%		—			—			—			—			—			—			36,182			37,406			3	%
Equity securities, available-for-sale, at fair value		1,284			1,202			(6	%)		1,208			1,162			(4	%)		103			99			(4	%)		2,595			2,463			(5	%)
Policy loans, at outstanding balance		2,061			2,118			3	%		—			—			—			—			—			—			2,061			2,118			3	%
Mortgage loans on real estate		4,739			4,821			2	%		671			682			2	%		—			—			—			5,410			5,503			2	%
Other investments		1,840			2,415			31	%		1,298			1,348			4	%		43			43			—			3,181			3,806			20	%
Short-term investments		1,158			1,807			56	%		284			711			150	%		160			1,050			NM			1,602			3,568			123	%
Total investments		99,806			100,384			1	%		30,666			29,586			(4	%)		614			1,505			145	%		131,086			131,475			—
Cash		1,770			2,016			14	%		241			232			(4	%)		—			—			—			2,011			2,248			12	%
Premiums receivable and agents’ balances		427			395			(7	%)		3,254			3,281			1	%		—			—			—			3,681			3,676			—
Reinsurance recoverables		1,419			1,599			13	%		3,731			3,611			(3	%)		—			—			—			5,150			5,210			1	%
Deferred policy acquisition costs and present value of future profits		10,514			11,586			10	%		1,228			1,233			—			—			—			—			11,742			12,819			9	%
Deferred income taxes		(754	)		(373	)		51	%		662			947			43	%		400			382			(5	%)		308			956			NM
Goodwill		805			867			8	%		149			149			—			772			772			—			1,726			1,788			4	%
Property and equipment, net		374			393			5	%		598			601			1	%		—			—			—			972			994			2	%
Other assets		1,869			1,830			(2	%)		1,312			1,318			—			558			581			4	%		3,739			3,729			—
Separate account assets		199,946			181,273			(9	%)		—			—			—			—			—			—			199,946			181,273			(9	%)
Total assets	$	316,176		$	299,970			(5	%)	$	41,841		$	40,958			(2	%)	$	2,344		$	3,240			38	%	$	360,361		$	344,168			(4	%)
Future policy benefits, unpaid losses and loss adjustment expenses	$	15,331		$	15,544			1	%	$	22,153		$	22,150			—		$	—		$	—			—		$	37,484		$	37,694			1	%
Other policyholder funds and benefits payable		44,190			46,460			5	%		—			—			—			—			—			—			44,190			46,460			5	%
Other policyholder funds and benefits payable - International variable annuities		36,152			37,376			3	%								—									—			36,152			37,376			3	%
Unearned premiums		147			167			14	%		5,402			5,388			—			(4	)		(4	)		—			5,545			5,551			—
Debt		115			91			(21	%)		13			11			(15	%)		4,379			4,880			11	%		4,507			4,982			11	%
Consumer notes		809			971			20	%		—			—			—			—			—			—			809			971			20	%
Other liabilities		8,045			8,286			3	%		4,855			4,589			(5	%)		(376	)		(850	)		(126	%)		12,524			12,025			(4	%)
Separate account liabilities		199,946			181,273			(9	%)		—			—			—			—			—			—			199,946			181,273			(9	%)
Total liabilities		304,735			290,168			(5	%)		32,423			32,138			(1	%)		3,999			4,026			1	%		341,157			326,332			(4	%)
Equity excluding AOCI, net of tax		11,868			11,059			(7	%)		9,428			9,372			(1	%)		(1,234	)		(370	)		70	%		20,062			20,061			—
AOCI, net of tax		(427	)		(1,257	)		(194	%)		(10	)		(552	)		NM			(421	)		(416	)		1	%		(858	)		(2,225	)		(159	%)
Total stockholders’ equity		11,441			9,802			(14	%)		9,418			8,820			(6	%)		(1,655	)		(786	)		53	%		19,204			17,836			(7	%)
Total liabilities and stockholders’ equity	$	316,176		$	299,970			(5	%)	$	41,841		$	40,958			(2	%)	$	2,344		$	3,240			38	%	$	360,361		$	344,168			(4	%)

C-4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE

																Year Over
																Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
DEBT
Short-term debt (includes current maturities of long-term debt and capital lease obligations)	$	468		$	423		$	822		$	1,365		$	1,364			191	%		—
Capital lease obligations		—			90			90			91			67		NM				(26	%)
Senior notes		4,004			4,005			3,580			3,051			3,551			(11	%)		16	%
Total debt [1]	$	4,472		$	4,518		$	4,492		$	4,507		$	4,982			11	%		11	%
STOCKHOLDERS’ EQUITY
Equity excluding AOCI, net of tax	$	18,674		$	19,249		$	19,616		$	20,062		$	20,061			7	%		—
AOCI, net of tax		177			(601	)		(666	)		(858	)		(2,225	)	NM				(159	%)
Total stockholders’ equity	$	18,851		$	18,648		$	18,950		$	19,204		$	17,836			(5	%)		(7	%)
CAPITALIZATION
Total capitalization including AOCI, net of tax	$	23,323		$	23,166		$	23,442		$	23,711		$	22,818			(2	%)		(4	%)
Total capitalization excluding AOCI, net of tax	$	23,146		$	23,767		$	24,108		$	24,569		$	25,043			8	%		2	%
DEBT TO CAPITALIZATION RATIOS
Ratios Including AOCI
Total debt to capitalization		19.2	%		19.5	%		19.2	%		19.0	%		21.8	%		2.6			2.8
Ratios Excluding AOCI
Total debt to capitalization		19.3	%		19.0	%		18.6	%		18.3	%		19.9	%		0.6			1.6
Debt (including the adjusted unfunded pension liability and six times rental expense on operating leases) to capitalization [2]		23.3	%		22.6	%		22.2	%		21.5	%		22.8	%		(0.5	)		1.3

[1]

The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $435, $588, $723, $809, and $971 as of March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, and March 31, 2008, 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, $1.1 billion, $1.1 billion, $1.0 billion, and $0.9 billion for the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, and March 31, 2008, respectively.

C-5

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

				PROPERTY &
	LIFE			CASUALTY			CORPORATE			CONSOLIDATED
As of March 31, 2008
Fixed maturities unrealized loss	$	(1,249	)	$	(549	)	$	(1	)	$	(1,799	)
Equities unrealized gain (loss)		(164	)		(7	)		5			(166	)
Net deferred gain (loss) on cash-flow hedging instruments		(33	)		(19	)		2			(50	)
Total unrealized gain (loss)		(1,446	)		(575	)		6			(2,015	)
Foreign currency translation adjustments		189			(21	)		—			168
Pension and other postretirement adjustment		—			44			(422	)		(378	)
Total accumulated other comprehensive loss	$	(1,257	)	$	(552	)	$	(416	)	$	(2,225	)
As of December 31, 2007
Fixed maturities unrealized 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	)

C-6

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

	THREE MONTHS ENDED
	Mar. 31,		Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,
	2007		2007			2007			2007			2008
Numerator:
Net income	$	876	$	627		$	851		$	595		$	145
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		33		(137	)		(209	)		(245	)		(647	)
Core earnings		843		764			1,060			840			792
Denominator:
Weighted average common shares outstanding (basic)		319.6		316.8			315.4			313.4			313.8
Dilutive effect of stock compensation		3.1		2.8			2.6			2.7			1.9
Weighted average common shares outstanding and dilutive potential common shares (diluted)		322.7		319.6			318.0			316.1			315.7
Basic earnings per share
Net income	$	2.74	$	1.98		$	2.70		$	1.90		$	0.46
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.10		(0.43	)		(0.66	)		(0.78	)		(2.06	)
Core earnings		2.64		2.41			3.36			2.68			2.52
Diluted earnings per share
Net income	$	2.71	$	1.96		$	2.68		$	1.88		$	0.46
Less: Net realized capital gains (losses), net of tax and DAC, excluded from core earnings		0.10		(0.43	)		(0.65	)		(0.78	)		(2.05	)
Core earnings		2.61		2.39			3.33			2.66			2.51

C-7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ANALYSIS OF NET REALIZED CAPITAL GAINS AND LOSSES AFTER TAX AND DAC
THREE MONTHS ENDED MARCH 31, 2007 AND 2008

	LIFE									PROPERTY & CASUALTY									CORPORATE							CONSOLIDATED
	2007			2008			Change			2007			2008			Change			2007		2008			Change		2007			2008			Change
Net Realized Capital Gains (Losses), After Tax and DAC
Net gains (losses) on sales	$	20		$	(44	)		NM		$	17		$	(31	)		NM		$	—	$	(1	)		NM	$	37		$	(76	)		NM
Impairments
Credit related [1]		(7	)		(133	)		NM			—			(37	)		NM			—		—			—		(7	)		(170	)		NM
Other [2]		(1	)		(11	)		NM			(1	)		(10	)		NM			—		—			—		(2	)		(21	)		NM
Total impairments		(8	)		(144	)		NM			(1	)		(47	)		NM			—		—			—		(9	)		(191	)		NM
Japanese fixed annuity, net [3]		3			(9	)		NM			—			—			—			—		—			—		3			(9	)		NM
GMWB derivatives, net [4]		11			(41	)		NM			—			—			—			—		—			—		11			(41	)		NM
SFAS 157 transition impact [5]		—			(220	)		NM			—			—			—			—		—			—		—			(220	)		NM
Other [6]		(11	)		(92	)		NM			(1	)		(21	)		NM			—		2			NM		(12	)		(111	)		NM
Total net realized capital gains (losses), after tax and DAC		15			(550	)		NM			15			(99	)		NM			—		1			NM		30			(648	)		NM
Reconciliation of Net Realized Capital Gains (Losses), net of tax and DAC, excluded from Core Earnings to Total Net Realized Capital Gains (Losses) — After Tax and DAC
Total net realized capital gains (losses)	$	15		$	(550	)		NM		$	15		$	(99	)		NM		$	—	$	1			NM	$	30		$	(648	)		NM
Total net realized capital gains (losses) included in core earnings		5			2			(60	%)		(2	)		(1	)		50	%		—		—			—		3			1			(67	%)
Total net realized capital gains (losses), after tax and DAC, excluded from core earnings	$	20		$	(548	)		NM		$	13		$	(100	)		NM		$	—	$	1			NM	$	33		$	(647	)		NM

[1]	Relates to impairments for which the Company has current concerns regarding the issuers ability to pay future interest and principal amounts based upon the securities contractual terms or the depression in security value is primarily related to significant issuer specific or sector credit spread widening.
[2]	Primarily relates to impairments of securities that had declined in value primarily due to changes in interest rate or general or modest spread widening and for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow recovery to cost or amortized cost.
[3]	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 $1 and $8 would have been recognized as an adjustment to this amount in the three months ended March 31, 2007 and 2008, respectively.
[4]	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.
[5]	Includes SFAS 157 implementation losses related to the embedded derivatives within GMWB-US, GMWB-UK and GMAB liabilities, respectively.
[6]	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-8

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

	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,
	2007			2007			2007			2007			2008
Numerator [1]:
Net income — last 12 months	$	2,893		$	3,044		$	3,137		$	2,949		$	2,218
Core earnings — last 12 months	$	2,911		$	3,102		$	3,435		$	3,507		$	3,456
Denominator [2]:
Average equity, including AOCI		17,130.5			17,015.5			18,341.5			19,040.0			18,344.0
Less: Average AOCI		(140.0	)		(762.5	)		(301.0	)		(340.0	)		(1,024.0	)
Average equity, excluding AOCI		17,270.5			17,778.0			18,642.5			19,380.0			19,368.0
ROE (net income last 12 months to equity including AOCI)		16.9	%		17.9	%		17.1	%		15.5	%		12.1	%
ROE (core earnings last 12 months to equity excluding AOCI)		16.9	%		17.4	%		18.4	%		18.1	%		17.8	%

[1]	For a reconciliation of net income to core earnings, see page C-7.
[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-9

LIFE

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
FINANCIAL HIGHLIGHTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
REVENUES
Retail Products Group
Individual Annuity [1]	$	724		$	768		$	774		$	783		$	722			—			(8	%)
Other Retail		183			200			207			223			213			16	%		(4	%)
Total Retail Products Group		907			968			981			1,006			935			3	%		(7	%)
Retirement Plans		144			150			151			152			157			9	%		3	%
Institutional Solutions Group		520			552			829			580			523			1	%		(10	%)
Individual Life [1]		287			292			283			304			291			1	%		(4	%)
Group Benefits		1,203			1,208			1,179			1,183			1,180			(2	%)		—
International		207			216			231			241			258			25	%		7	%
Other		59			71			51			53			40			(32	%)		(25	%)
Core revenues before net investment income (loss) on equity securities held for trading		3,327			3,457			3,705			3,519			3,384			2	%		(4	%)
Net investment income (loss) on equity securities held for trading [2]		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Total core revenues	$	3,537		$	4,691		$	3,007		$	2,918		$	(194	)	NM			NM
Net realized gains (losses) and other, before tax and DAC, excluded from core revenues		34			(208	)		(282	)		(331	)		(1,224	)	NM			NM
Total revenues	$	3,571		$	4,483		$	2,725		$	2,587		$	(1,418	)	NM			NM
CORE EARNINGS BY SEGMENT
Retail Products Group
Individual Annuity [3]	$	177		$	184		$	365		$	192		$	174			(2	%)		(9	%)
Other Retail [3]		15			16			17			17			13			(13	%)		(24	%)
Total Retail Products Group		192			200			382			209			187			(3	%)		(11	%)
Retirement Plans [3]		23			26			18			22			17			(26	%)		(23	%)
Institutional Solutions Group [3]		35			32			38			35			22			(37	%)		(37	%)
Individual Life [3]		46			46			64			40			41			(11	%)		3	%
Group Benefits		68			86			92			92			70			3	%		(24	%)
International [3]		55			59			79			61			67			22	%		10	%
Other [4]		(1	)		(14	)		9			(2	)		(11	)	NM			NM
Core earnings		418			435			682			457			393			(6	%)		(14	%)
Net realized gains (losses) net of tax and DAC, excluded from core earnings [3]		20			(117	)		(157	)		(180	)		(548	)	NM			NM
Net income (loss)	$	438		$	318		$	525		$	277		$	(155	)	NM			NM
ROE (core earnings last 12 months to equity excluding AOCI)		18.6	%		18.5	%		21.1	%		21.4	%		21.8	%		3.2			0.4
Assets under management	$	335,671		$	353,428		$	366,818		$	371,707		$	370,290			10	%		—
DAC capitalization	$	524		$	522		$	524		$	489		$	428						(12	%)
DAC amortization	$	344		$	309		$	(49	)	$	280		$	(55	)				NM
DAC and PVFP assets	$	9,158		$	9,516		$	10,275		$	10,514		$	11,586						10	%
United States Statutory surplus ($ in billions) [5]	$	4.8		$	4.8		$	4.9		$	5.8		$	5.7

[1]	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.
[2]	These revenues will fluctuate principally due to the investment income and the mark-to-market adjustment of the trading investment portfolio supporting the variable annuity business in the international operations, principally in Japan. An equal and offsetting amount is recorded in benefits, losses and loss adjustment expenses, and as such has no impact on core earnings or net income.
[3]	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).
[4]	Included in the three months ended June 30, 2007 is a charge of $21, after-tax, to reserve for regulatory matters.
[5]	Estimated United States statutory surplus at March 31, 2008.

L - 1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
OPERATING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
REVENUES
Earned premiums	$	1,208		$	1,245		$	1,434		$	1,236		$	1,229			2	%		(1	%)
Fee income		1,278			1,341			1,394			1,407			1,339			5	%		(5	%)
Net investment income (loss)
Securities available-for-sale and other		852			884			883			878			819			(4	%)		(7	%)
Equity securities held for trading [1]		210			1,234			(698	)		(601	)		(3,578	)		NM		NM
Total net investment income (loss)		1,062			2,118			185			277			(2,759	)	NM			NM
Net realized capital loss — core		(11	)		(13	)		(6	)		(2	)		(3	)		73	%		(50	%)
Total core revenues		3,537			4,691			3,007			2,918			(194	)	NM			NM
Net realized gains (losses) and other, before tax and DAC, excluded from core revenues		34			(208	)		(282	)		(331	)		(1,224	)	NM			NM
Total revenues		3,571			4,483			2,725			2,587			(1,418	)	NM			NM
BENEFITS AND EXPENSES
Benefits, losses and loss adjustment expenses		1,658			1,724			1,911			1,709			1,729			4	%		1	%
Benefits, losses and loss adjustment expenses — Returns credited on International variable annuities [1]		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Amortization of deferred policy acquisition costs and present value of future profits		342			336			(10	)		339			317			(7	%)		(6	%)
Insurance operating costs and other expenses		767			801			811			851			817			7	%		(4	%)
Total benefits and expenses		2,977			4,095			2,014			2,298			(715	)	NM			NM
CORE EARNINGS
Core earnings before income taxes		560			596			993			620			521			(7	%)		(16	%)
Income tax expense		142			161			311			163			128			(10	%)		(21	%)
Core earnings		418			435			682			457			393			(6	%)		(14	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings		20			(117	)		(157	)		(180	)		(548	)	NM			NM
Net income (loss)		438			318			525			277			(155	)	NM			NM

[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 interest credited.

L - 2

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

											Year Over
											Year			Sequential
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
TOTAL ASSETS UNDER MANAGEMENT	2007		2007		2007		2007		2008		Change			Change
Assets
General account	$	107,517	$	109,802	$	114,310	$	116,230	$	118,697		10	%		2	%
Separate account		181,726		191,814		197,877		199,946		181,273		—			(9	%)
Total assets		289,243		301,616		312,187		316,176		299,970		4	%		(5	%)
Mutual fund assets [1]		46,428		51,812		54,631		55,531		70,320		51	%		27	%
Total assets under management	$	335,671	$	353,428	$	366,818	$	371,707	$	370,290		10	%		—

[1] During the three months ended March 31, 2008, the Company acquired the rights to service $18.7 billion of mutual fund assets from Sun Life Retirement Services, Inc. and Princeton Retirement Group on February 29, and March 28, 2008, respectively.

L - 3

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

																Year Over
																Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Investments
Fixed maturities, available-for-sale, at fair value	$	52,747		$	52,824		$	53,288		$	52,542		$	50,615			(4	%)		(4	%)
Equity securities, trading, at fair value		30,805			31,843			34,901			36,182			37,406			21	%		3	%
Equity securities, available-for-sale, at fair value		1,298			1,387			1,307			1,284			1,202			(7	%)		(6	%)
Policy loans, at outstanding balance		2,099			2,052			2,050			2,061			2,118			1	%		3	%
Mortgage loans on real estate		3,509			4,236			4,551			4,739			4,821			37	%		2	%
Short term Investments		1,195			958			629			1,158			1,807			51	%		56	%
Other investments		1,263			1,290			1,425			1,840			2,415			91	%		31	%
Total investments		92,916			94,590			98,151			99,806			100,384			8	%		1	%
Cash		1,561			1,434			1,769			1,770			2,016			29	%		14	%
Premiums receivable and agents’ balances		455			413			403			427			395			(13	%)		(7	%)
Reinsurance recoverables		1,112			1,165			1,235			1,419			1,599			44	%		13	%
Deferred policy acquisition costs and present value of future profits		9,158			9,516			10,275			10,514			11,586			27	%		10	%
Deferred income taxes		(763	)		(510	)		(724	)		(754	)		(373	)		51	%		51	%
Goodwill		805			805			805			805			867			8	%		8	%
Property and equipment, net		257			358			372			374			393			53	%		5	%
Other assets		2,016			2,031			2,024			1,869			1,830			(9	%)		(2	%)
Separate account assets		181,726			191,814			197,877			199,946			181,273			—			(9	%)
Total assets	$	289,243		$	301,616		$	312,187		$	316,176		$	299,970			4	%		(5	%)
Future policy benefits, unpaid losses and loss adjustment expenses	$	14,255		$	14,630		$	15,007		$	15,331		$	15,544			9	%		1	%
Other policyholder funds and benefits payable		42,684			42,981			44,054			44,190			46,460			9	%		5	%
Other policyholder funds payable — International variable annuities		30,781			31,815			34,871			36,152			37,376			21	%		3	%
Unearned premiums		124			132			141			147			167			35	%		14	%
Consumer Notes		435			588			723			809			971			123	%		20	%
Debt		—			114			114			115			91			—			(21	%)
Other liabilities		8,378			8,639			8,011			8,045			8,286			(1	%)		3	%
Separate account liabilities		181,726			191,814			197,877			199,946			181,273			—			(9	%)
Total liabilities		278,383			290,713			300,798			304,735			290,168			4	%		(5	%)
Equity excluding AOCI, net of tax		10,483			11,025			11,619			11,868			11,059			5	%		(7	%)
AOCI, net of tax		377			(122	)		(230	)		(427	)		(1,257	)	NM				(194	%)
Total stockholders’ equity		10,860			10,903			11,389			11,441			9,802			(10	%)		(14	%)
Total liabilities and stockholders’ equity	$	289,243		$	301,616		$	312,187		$	316,176		$	299,970			4	%		(5	%)
Hartford Life and Accident Insurance Company NAIC RBC											416.1	%
Hartford Life Insurance Company NAIC RBC											513.2	%
Hartford Life and Annuity Insurance Company NAIC RBC											1309.9	%

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, 2007	$	5,179		$	136		$	658		$	143		$	2,406		$	69		$	1,923		$	10,514
Adjustments to unrealized gains and losses on securities available - for - sale and other		(92	)					(41	)					(2	)		—			(22	)		(157	)
Balance excluding adjustments to unrealized gains and losses on securities available - for - sale and other		5,087			136			617			143			2,404			69			1,901			10,357
Capitalization		167			22			38			9			88			17			87			428
Amortization - Deferred Policy Acquisition Costs		(162	)		(22	)		(9	)		(6	)		(27	)		(13	)		(62	)		(301	)
Amortization - Present Value of Future Profits		(1	)											(4	)								(5	)
Amortization - Realized Capital Gains		342						2						2						15			361
Effect of Currency Translation Adjustment																				221			221
Balance, March 31, 2008		5,433			136			648			146			2,463			73			2,162			11,061
Adjustments to unrealized gains and losses on securities available - for - sale and other		297						94						44						90			525
Balance, March 31, 2008 including adjustments to unrealized gains and losses on securities available-for-sale and other	$	5,730		$	136		$	742		$	146		$	2,507		$	73		$	2,252		$	11,586

L - 5

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

	March 31, 2008
	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	$	41,540	$	6,111		77	%	$	1,430
with 5% rollup [2]		2,918		497		67	%		162
with Earnings Protection Benefit Rider (EPB) [3]		4,847		493		85	%		74
with 5% rollup & EPB		1,180		148		81	%		28
Total MAV		50,485		7,249		77	%		1,694
Asset Protection Benefit (APB) [4]		39,110		2,849		45	%		1,570
Lifetime Income Benefit (LIB) — Death Benefit [5]		10,697		86		—	%		86
Reset [6] (5-7 years)		5,352		241		—	%		241
Return of Premium [7]/Other		9,568		44		5	%		42
SUBTOTAL U.S. GUARANTEED MINIMUM DEATH BENEFITS	$	115,212	$	10,469		65	%	$	3,633
JAPAN GUARANTEED MINIMUM DEATH AND INCOME BENEFITS [8]		36,777		2,795		23	%		2,151
TOTAL	$	151,989	$	13,264		56	%	$	5,784

	As of		As of		As of		As of		As of
	March 31,		June 30,		September 30,		December 31,		March 31,
OTHER DATA	2007		2007		2007		2007		2008
U.S. VARIABLE ANNUITY BUSINESS
S&P 500 Index Value at end of period		1,420.86		1,503.35		1,526.75		1,468.36		1,322.70
Total Account Value	$	122,858	$	129,260	$	130,943	$	126,834	$	115,212
Retained net amount of risk		782		701		670		976		3,633
GMDB net GAAP liability [9]		166		175		191		202		203
JAPAN VARIABLE ANNUITY BUSINESS
Total Account Value	$	31,148	$	32,050	$	34,888	$	35,793	$	36,777
Retained net amount of risk		35		14		130		419		2,151
GMDB/GMIB net GAAP liability [9]		34		35		30		34		39

[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, net premiums paid, or for certain contracts 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 $30.7 billion and $26.8 billion as of March 31, 2008 and December 31, 2007, respectively.
[9]	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 December 31, 2007

Statutory Reserve Credit and Amounts Recoverable

Gross statutory reinsurance reserve credit	$	1,867
Liability for reinsurance in unauthorized companies		(6	)
Net statutory reinsurance reserve credit	$	1,861
Statutory amounts recoverable from reinsurers	$	156

The top ten reinsurers represent $1,814 or 97% of the total statutory reserve credit and amounts recoverable.

• 53% of this amount is with reinsurers rated “A+” by A.M. Best at April 10, 2008.

• 10% of this amount is with reinsurers rated “A” by A.M. Best at April 10, 2008.

• 31% of this amount is with reinsurers rated “A-” by A.M. Best at April 10, 2008.

• 3% of this amount is with reinsurers rated “B++” by A.M. Best at April 10, 2008.

• 3% of this amount is with reinsurers rated “B” by A.M. Best at April 10, 2008.

L - 7

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

	December 31, 2007			December 31, 2006
Statutory Capital and Surplus		5,786		$	4,733
GAAP Adjustments
Investment in subsidiaries		388			(265	)
Deferred policy acquisition costs		10,514			9,070
Deferred taxes		(1,155	)		(936	)
Benefit reserves		(4,240	)		(3,425	)
Unrealized gains on investments, net of impairments		(483	)		1,214
Asset valuation reserve and interest maintenance reserve		626			686
Goodwill		662			585
Other, net		(657	)		(98	)
GAAP Stockholders’ Equity	$	11,441		$	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
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
Revenues	2007			2007			2007			2007			2008			Change			Change
Premiums and other considerations
Variable annuity fees	$	507		$	542		$	548		$	554		$	497			(2	%)		(10	%)
Mutual fund and other fees [2]		37			36			28			37			33			(11	%)		(11	%)
Total fee income		544			578			576			591			530			(3	%)		(10	%)
Direct premiums		14			21			24			22			24			71	%		9	%
Reinsurance premiums [2]		(35	)		(35	)		(37	)		(36	)		(30	)		14	%		17	%
Net premiums		(21	)		(14	)		(13	)		(14	)		(6	)		71	%		57	%
Total premiums and other considerations		523			564			563			577			524			—			(9	%)
Net investment income
Net investment income on G/A assets		227			229			237			226			209			(8	%)		(8	%)
Net investment income on assigned capital		11			12			12			12			19			73	%		58	%
Charge for invested capital		(38	)		(38	)		(39	)		(35	)		(33	)		13	%		6	%
Total net investment income		200			203			210			203			195			(3	%)		(4	%)
Net realized capital gains — core		1			1			1			3			3		NM				—
Total core revenues		724			768			774			783			722			—			(8	%)
Net realized gains (losses), before tax and DAC, excluded from core revenues		16			(147	)		(175	)		(81	)		(759	)	NM			NM
Total revenues		740			621			599			702			(37	)	NM			NM
Benefits and Expenses
Benefits and losses
Death benefits [2]		12			10			16			11			13			8	%		18	%
Other contract benefits		15			15			18			17			18			20	%		6	%
Change in reserve		2			13			18			12			14		NM				17	%
Sales inducements [2]		13			16			2			16			13			—			(19	%)
Interest credited on G/A assets		154			149			156			155			150			(3	%)		(3	%)
Total benefits and losses		196			203			210			211			208			6	%		(1	%)
Other insurance expenses
Commissions & wholesaling expenses		296			316			304			282			253			(15	%)		(10	%)
Operating expenses		51			60			55			61			52			2	%		(15	%)
Premium taxes and other expenses		4			5			1			4			3			(25	%)		(25	%)
Subtotal — expenses before deferral		351			381			360			347			308			(12	%)		(11	%)
Deferred policy acquisition costs		(217	)		(225	)		(212	)		(190	)		(167	)		23	%		12	%
Total other insurance expense		134			156			148			157			141			5	%		(10	%)
Amortization of deferred policy acquisition costs [2]		184			186			(110	)		178			164			(11	%)		(8	%)
Total benefits and expenses		514			545			248			546			513			—			(6	%)
Core earnings before income taxes		210			223			526			237			209			—			(12	%)
Income tax expense [1] [2]		33			39			161			45			35			6	%		(22	%)
Core earnings [2]	$	177		$	184		$	365		$	192		$	174			(2	%)		(9	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings [2] [3]		8			(78	)		(88	)		(13	)		(264	)	NM			NM
Net income (loss) [2]	$	185		$	106		$	277		$	179		$	(90	)	NM			NM
RETURN ON ASSETS (After-tax bps)
Core earnings		56.7			57.4			110.3			58.5			56.3			(1	%)		(4	%)
Net income (loss)		59.3			33.0			83.7			54.5			(29.1	)	NM			NM

[1]	The three months ended September 30, 2007 includes a $12 tax charge related to DRD.
[2]	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:

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

[3] Included in the three months ended March 31, June 30, September 30, December 31, 2007 and March 31, 2008 are guaranteed minimum withdrawal benefit (“GMWB”) net realized gains (losses), net of tax and DAC, excluded from core earnings of $11, $(65), $(68), $(13) and $(251), respectively.

L - 9

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
Revenues	2007			2007			2007			2007			2008			Change			Change
Premiums and other considerations
Variable annuity fees	$	3		$	4		$	4		$	4		$	4			33	%		—
Mutual fund and other fees		183			199			208			223			213			16	%		(4	%)
Total fee income		186			203			212			227			217			17	%		(4	%)
Net investment loss
Net investment loss on G/A assets		—			—			(3	)		—			(1	)		—			—
Net investment loss on assigned capital		(3	)		(3	)		(2	)		(4	)		(3	)		—			25	%
Total net investment loss		(3	)		(3	)		(5	)		(4	)		(4	)		(33	%)		—
Net realized capital losses — core		—			—			—			—			—			—			—
Total core revenues		183			200			207			223			213			16	%		(4	%)
Net realized gains (losses), before tax and DAC, excluded from core revenues		—			—			—			—			—			—			—
Total revenues		183			200			207			223			213			16	%		(4	%)
Benefits and Expenses
Other insurance expenses
Commissions & wholesaling expenses		133			146			143			156			149			12	%		(4	%)
Operating expenses		29			33			34			41			40			38	%		(2	%)
Premium taxes and other expenses		4			3			2			3			4			—			33	%
Subtotal — expenses before deferral		166			182			179			200			193			16	%		(4	%)
Deferred policy acquisition costs		(27	)		(27	)		(22	)		(25	)		(22	)		19	%		12	%
Total other insurance expense		139			155			157			175			171			23	%		(2	%)
Amortization of deferred policy acquisition costs [1]		21			21			23			23			22			5	%		(4	%)
Total benefits and expenses		160			176			180			198			193			21	%		(3	%)
Core earnings before income taxes		23			24			27			25			20			(13	%)		(20	%)
Income tax expense [1]		8			8			10			8			7			(13	%)		(13	%)
Core earnings [1]	$	15		$	16		$	17		$	17		$	13			(13	%)		(24	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings		—			—			—			—			—			—			—
Net income [1]	$	15		$	16		$	17		$	17		$	13			(13	%)		(24	%)
RETURN ON ASSETS (After-tax bps)
Core earnings		13.9			13.9			14.3			13.0			10.8			(23	%)		(17	%)
Net income		13.9			13.9			14.3			13.0			10.8			(23	%)		(17	%)

[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
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
Individual Annuity
Broker-dealer	$	2,029	$	2,152	$	2,488	$	2,106	$	1,677		(17	%)		(20	%)
Banks		1,430		1,664		1,307		1,148		938		(34	%)		(18	%)
Total deposits by distribution		3,459		3,816		3,795		3,254		2,615		(24	%)		(20	%)
Variable		3,256		3,537		3,278		3,126		2,546		(22	%)		(19	%)
Fixed MVA/other		203		279		517		128		69		(66	%)		(46	%)
Total deposits by product		3,459		3,816		3,795		3,254		2,615		(24	%)		(20	%)
Retail Mutual Funds		3,647		3,791		3,369		3,549		3,966		9	%		12	%
529 College Savings Plan/Specialty Products/Other		192		197		152		180		183		(5	%)		2	%
Total Retail Products Group	$	7,298	$	7,804	$	7,316	$	6,983	$	6,764		(7	%)		(3	%)

L - 11

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

											Year Over
											Year			Sequential
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
INDIVIDUAL ANNUITY
General account	$	15,218	$	15,100	$	15,191	$	15,100	$	15,126		(1	%)		—
Non-guaranteed separate account		110,007		116,320		118,123		114,214		102,924		(6	%)		(10	%)
Total Individual Annuity	$	125,225	$	131,420	$	133,314	$	129,314	$	118,050		(6	%)		(9	%)
BY PRODUCT
Individual Annuity
Individual Variable Annuities
General account	$	5,461	$	5,354	$	5,075	$	4,995	$	5,126		(6	%)		3	%
Non-guaranteed separate account		109,869		116,175		117,976		114,076		102,794		(6	%)		(10	%)
Total individual variable annuities		115,330		121,529		123,051		119,071		107,920		(6	%)		(9	%)
Fixed MVA & other individual annuities		9,895		9,891		10,263		10,243		10,130		2	%		(1	%)
Total Individual Annuity		125,225		131,420		133,314		129,314		118,050		(6	%)		(9	%)
		569		639		671		677		604		6	%		(11	%)
Mutual Fund Assets
Retail mutual fund assets		40,921		45,644		47,785		48,383		44,617		9	%		(8	%)
Specialty Product/Other mutual fund assets		663		789		892		937		1,022		54	%		9	%
529 College Savings Plan assets		966		1,094		1,147		1,176		1,121		16	%		(5	%)
Total Mutual Fund Assets		42,550		47,527		49,824		50,496		46,760		10	%		(7	%)
Total Retail Products Group Assets Under Management	$	168,344	$	179,586	$	183,809	$	180,487	$	165,414		(2	%)		(8	%)

L - 12

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

			March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
			2007			2007			2007			2007			2008
VARIABLE ANNUITIES		Beginning balance	$	114,365		$	115,330		$	121,529		$	123,051		$	119,071
	Deposits			3,256			3,537			3,278			3,126			2,546
	Surrenders			(3,394	)		(3,529	)		(3,471	)		(3,810	)		(3,338	)
	Death benefits/annuity payouts			(443	)		(434	)		(419	)		(418	)		(445	)
	Transfers [2]			(2	)		7			(21	)		4			(2	)
	Net Flows			(583	)		(419	)		(633	)		(1,098	)		(1,239	)
	Change in market value/change in reserve/interest credited			1,542			6,618			2,155			(2,882	)		(9,911	)
	Other [3]			6			—			—			—			(1	)
		Ending balance	$	115,330		$	121,529		$	123,051		$	119,071		$	107,920
FIXED MVA AND OTHER		Beginning balance	$	9,937		$	9,895		$	9,891		$	10,263		$	10,243
	Deposits			203			279			517			128			69
	Surrenders			(281	)		(321	)		(227	)		(201	)		(219	)
	Death benefits/annuity payouts			(115	)		(111	)		(96	)		(106	)		(118	)
	Transfers [2]			36			27			53			42			49
	Net Flows			(157	)		(126	)		247			(137	)		(219	)
	Change in market value/change in reserve/interest credited			115			122			125			117			106
		Ending balance	$	9,895		$	9,891		$	10,263		$	10,243		$	10,130
TOTAL INDIVIDUAL ANNUITY		Beginning balance	$	124,302		$	125,225		$	131,420		$	133,314		$	129,314
	Deposits			3,459			3,816			3,795			3,254			2,615
	Surrenders			(3,675	)		(3,850	)		(3,698	)		(4,011	)		(3,557	)
	Death benefits/annuity payouts			(558	)		(545	)		(515	)		(524	)		(563	)
	Transfers [2]			34			34			32			46			47
	Net Flows			(740	)		(545	)		(386	)		(1,235	)		(1,458	)
	Change in market value/change in reserve/interest credited			1,657			6,740			2,280			(2,765	)		(9,805	)
	Other [3]			6			—			—			—			(1	)
		Ending balance	$	125,225		$	131,420		$	133,314		$	129,314		$	118,050

[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

	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
	2007			2007			2007			2007			2008
RETAIL MUTUAL FUNDS
Beginning balance	$	38,536		$	40,921		$	45,644		$	47,785		$	48,383
Deposits		3,647			3,791			3,369			3,549			3,966
Redemptions		(1,762	)		(2,042	)		(2,718	)		(2,289	)		(2,845	)
Net Sales		1,885			1,749			651			1,260			1,121
Change in market value		530			3,004			1,517			(626	)		(4,854	)
Other [1]		(30	)		(30	)		(27	)		(36	)		(33	)
Ending balance	$	40,921		$	45,644		$	47,785		$	48,383		$	44,617

[1] Includes front end loads on A share products.

L - 14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS [1]
INCOME STATEMENTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
Revenues	2007			2007			2007			2007			2008			Change			Change
Premiums and other considerations
Variable annuity fees	$	50		$	56		$	58		$	59		$	56			12	%		(5	%)
Mutual fund and other fees		4			3			4			4			12		NM			NM
Total fee income		54			59			62			63			68			26	%		8	%
Direct premiums		2			1			—			1			1			(50	%)		—
Total premiums and other considerations		56			60			62			64			69			23	%		8	%
Net investment income
Net investment income on G/A assets		85			88			85			85			85			—			—
Net investment income on assigned capital		3			3			4			3			4			33	%		33	%
Charge for invested capital		—			(1	)		—			—			—			—			—
Total net investment income		88			90			89			88			89			1	%		1	%
Net realized capital losses — core		—			—			—			—			(1	)		—			—
Total core revenues		144			150			151			152			157			9	%		3	%
Net realized gains (losses), before tax and DAC, excluded from core revenues		(3	)		5			(21	)		(22	)		(35	)	NM				(59	%)
Total revenues		141			155			130			130			122			(13	%)		(6	%)
Benefits and Expenses
Benefits and losses
Death benefits		—			(1	)		—			—			—			—			—
Other contract benefits		12			12			12			12			11			(8	%)		(8	%)
Change in reserve		(6	)		(5	)		(6	)		(6	)		(5	)		17	%		17	%
Sales inducements		—			—			—			1			—			—			(100	%)
Interest credited on G/A assets		56			56			56			56			59			5	%		5	%
Total benefits and losses		62			62			62			63			65			5	%		3	%
Other insurance expenses
Commissions & wholesaling expenses		23			24			24			24			30			30	%		25	%
Operating expenses		49			54			50			61			68			39	%		11	%
Premium taxes and other expenses		1			—			—			(1	)		1			—		NM
Subtotal — expenses before deferral		73			78			74			84			99			36	%		18	%
Deferred policy acquisition costs		(33	)		(33	)		(34	)		(39	)		(38	)		(15	%)		3	%
Total other insurance expense		40			45			40			45			61			53	%		36	%
Amortization of deferred policy acquisition costs [2]		11			7			25			12			9			(18	%)		(25	%)
Total benefits and expenses		113			114			127			120			135			19	%		13	%
Core earnings before income taxes		31			36			24			32			22			(29	%)		(31	%)
Income tax expense [2]		8			10			6			10			5			(38	%)		(50	%)
Core earnings [2]	$	23		$	26		$	18		$	22		$	17			(26	%)		(23	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings		(1	)		2			(14	)		(15	)		(22	)	NM				(47	%)
Net income (loss) [2]	$	22		$	28		$	4		$	7		$	(5	)	NM			NM
RETURN ON ASSETS (After-tax bps)
Core earnings		36.3			38.9			25.6			30.8			18.1			(50	%)		(41	%)
Net income (loss)		34.7			41.8			5.7			9.8			(5.3	)	NM			NM

[1]	Reflects the acquisition of Sun Life Retirement Services, Inc. and Princeton Retirement Group on February 29 and March 28, 2008, respectively.
[2]	The DAC unlock recorded in the three months ended September 30, 2007 decreased both core earnings and net income by $9. The effect on each income statement line item is as follows:

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

L - 15

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

											Year Over
	THREE MONTHS ENDED										Year			Sequential
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
401(k)
Annuity — plan/participant rollovers	$	786	$	421	$	467	$	460	$	739		(6	%)		61	%
Annuity — ongoing contributions		497		553		504		511		643		29	%		26	%
Total 401(k) Annuity		1,283		974		971		971		1,382		8	%		42	%
Mutual funds [1]		120		96		94		108		441	NM			NM
Total 401(k)		1,403		1,070		1,065		1,079		1,823		30	%		69	%
403(b)/457
Annuity — plan/participant rollovers		89		72		79		102		143		61	%		40	%
Annuity — ongoing contributions		236		222		247		235		257		9	%		9	%
Total 403(b)/457 Annuity		325		294		326		337		400		23	%		19	%
Mutual funds		—		6		6		7		26		—		NM
Total 403(b)/457		325		300		332		344		426		31	%		24	%
TOTAL RETIREMENT
401(k) Annuity		1,283		974		971		971		1,382		8	%		42	%
403(b)/457 Annuity		325		294		326		337		400		23	%		19	%
Total Retirememt Plans Annuity deposits		1,608		1,268		1,297		1,308		1,782		11	%		36	%
Mutual funds [1]		120		102		100		115		467	NM			NM
Total Retirement Plans Deposits		1,728		1,370		1,397		1,423		2,249		30	%		58	%

[1] Reflects the acquisition of Sun Life Retirement Services, Inc. and Princeton Retirement Group on February 29 and March 28, 2008, respectively.

L - 16

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

											Year Over
											Year			Sequential
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
401(k)
General account	$	1,351	$	1,303	$	1,314	$	1,298	$	1,354		—			4	%
Non-guaranteed separate account		11,628		12,755		13,371		13,433		13,059		12	%		(3	%)
Total 401(k) — Annuity account value	$	12,979	$	14,058	$	14,685	$	14,731	$	14,413		11	%		(2	%)
Mutual fund assets [1]		1,209		1,320		1,389		1,428		20,005	NM			NM
Total 401(k) Assets Under Management	$	14,188	$	15,378	$	16,074	$	16,159	$	34,418		143	%		113	%
403(b)/457
General account	$	4,586	$	4,564	$	4,610	$	4,627	$	4,850		6	%		5	%
Non-guaranteed separate account		7,167		7,633		7,876		7,736		7,076		(1	%)		(9	%)
Total 403(b)/457 - Annuity account value	$	11,753	$	12,197	$	12,486	$	12,363	$	11,926		1	%		(4	%)
Mutual fund assets		—		9		20		26		66		—			154	%
Total 403(b)/457 Assets Under Management	$	11,753	$	12,206	$	12,506	$	12,389	$	11,992		2	%		(3	%)
TOTAL RETIREMENT
General account	$	5,937	$	5,867	$	5,924	$	5,925	$	6,204		4	%		5	%
Non-guaranteed separate account		18,795		20,388		21,247		21,169		20,135		7	%		(5	%)
Total Retirement Plans account value	$	24,732	$	26,255	$	27,171	$	27,094	$	26,339		6	%		(3	%)
Mutual fund assets [1]		1,209		1,329		1,409		1,454		20,071	NM			NM
Total Retirement Plans Assets Under Management	$	25,941	$	27,584	$	28,580	$	28,548	$	46,410		79	%		63	%
RECORDKEEPING ONLY BUSINESS
Assets Under Administration [2]		—		—		—		—		5,666	NM			NM
Number of Participants [3]		—		—		—		—		142,537	NM			NM

[1]	Prior to March 31, 2008, 401(k) mutual fund assets were predominantly comprised of The Hartford’s 401(k) plan. During the three months ended March 31, 2008, the Company acquired the rights to service $18.7 billion of mutual fund assets from Sun Life Retirement Services, Inc. and Princeton Retirement Group on February 29, and March 28, 2008, respectively.
[2]	Assets under administration are not included when calculating return on assets measures for the Retirement Plans segment and are not included in Retirement Plans Assets Under Management.
[3]	Earnings for assets under administration are predominantly driven by participant count. The participant count represents the actual number of participants.

L - 17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
RETIREMENT PLANS
SUPPLEMENTAL DATA — ACCOUNT VALUE AND ASSET ROLLFORWARD [1] [2]

			March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
			2007			2007			2007			2007			2008
401(k) GROUP ANNUITY
ACCOUNT VALUE [1]		Beginning balance	$	12,035		$	12,979		$	14,058		$	14,685		$	14,731
	Deposits			1,283			974			971			971			1,382
	Surrenders			(531	)		(550	)		(599	)		(673	)		(617	)
	Death benefits/annuity payouts			(13	)		(7	)		(10	)		(8	)		(9	)
	Net Flows			739			417			362			290			756
	Change in market value/change in reserve/interest credited			205			662			265			(244	)		(1,074	)
		Ending balance	$	12,979		$	14,058		$	14,685		$	14,731		$	14,413
403(b)/457 GROUP ANNUITY
ACCOUNT VALUE [1]		Beginning balance	$	11,540		$	11,753		$	12,197		$	12,486		$	12,363
	Deposits			325			294			326			337			400
	Surrenders			(272	)		(399	)		(306	)		(393	)		(244	)
	Death benefits/annuity payouts			(15	)		(12	)		(12	)		(12	)		(12	)
	Net Flows			38			(117	)		8			(68	)		144
	Change in market value/change in reserve/interest credited			175			561			281			(55	)		(581	)
		Ending balance	$	11,753		$	12,197		$	12,486		$	12,363		$	11,926
MUTUAL FUND ASSETS [2] [3]
		Beginning balance	$	1,140		$	1,209		$	1,329		$	1,409		$	1,454
	Deposits			120			102			100			115			467
	Surrenders			(90	)		(79	)		(82	)		(83	)		(345	)
	Net Flows			30			23			18			32			122
	Acquisitions [4]			—			—			—			—			18,725
	Change in market value/change in reserve/interest credited			39			97			62			13			(230	)
		Ending balance	$	1,209		$	1,329		$	1,409		$	1,454		$	20,071
TOTAL RETIREMENT
		Beginning balance	$	24,715		$	25,941		$	27,584		$	28,580		$	28,548
	Deposits			1,728			1,370			1,397			1,423			2,249
	Surrenders			(893	)		(1,028	)		(987	)		(1,149	)		(1,206	)
	Death benefits/annuity payouts			(28	)		(19	)		(22	)		(20	)		(21	)
	Net Flows			807			323			388			254			1,022
	Acquisitions [4]			—			—			—			—			18,725
	Change in market value/change in reserve/interest credited			419			1,320			608			(286	)		(1,885	)
		Ending balance	$	25,941		$	27,584		$	28,580		$	28,548		$	46,410

[1]	Account value includes policyholder balances for investment contracts and reserves for future policy benefits for insurance contracts.
[2]	Excludes Assets Under Administration.
[3]	Mutual Fund assets are an internal measure of assets under management used by the Company because a portion of revenues are based upon asset levels. Mutual Fund assets are not included on the balance sheet.
[4]	Reflects the acquisition of Sun Life Retirement Services, Inc. and Princeton Retirement Group on February 29 and March 28, 2008, respectively.

L - 18

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
Revenues	2007			2007			2007			2007			2008			Change			Change
Premiums and other considerations
Variable annuity fees	$	19		$	13		$	20		$	21		$	19			—			(10	%)
Cost of insurance charges		12			20			20			10			17			42	%		70	%
Mutual fund and other fees		30			20			57			9			5			(83	%)		(44	%)
Total fee income		61			53			97			40			41			(33	%)		3	%
Direct premiums		168			191			411			217			188			12	%		(13	%)
Total premiums and other considerations		229			244			508			257			229			—			(11	%)
Net investment income
Net investment income on G/A assets		284			299			311			312			284			—			(9	%)
Net investment income on assigned capital		7			9			9			9			9			29	%		—
Charge for invested capital		—			—			—			1			1			—			—
Total net investment income		291			308			320			322			294			1	%		(9	%)
Net realized capital gains — core		—			—			1			1			—			—			(100	%)
Total core revenues		520			552			829			580			523			1	%		(10	%)
Net realized losses, before tax and DAC, excluded from core revenues		(3	)		(20	)		(47	)		(120	)		(219	)	NM				(83	%)
Total revenues		517			532			782			460			304			(41	%)		(34	%)
Benefits and Expenses
Benefits and losses
Death benefits		12			26			22			11			17			42	%		55	%
Other contract benefits		97			103			107			117			113			16	%		(3	%)
Change in reserve		154			174			396			192			177			15	%		(8	%)
Interest credited on G/A assets		154			171			167			171			151			(2	%)		(12	%)
Total benefits and losses		417			474			692			491			458			10	%		(7	%)
Other insurance expenses
Commissions & wholesaling expenses		15			18			15			15			14			(7	%)		(7	%)
Operating expenses		18			19			19			23			20			11	%		(13	%)
Premium taxes and other expenses		24			6			56			7			3			(88	%)		(57	%)
Subtotal — expenses before deferral		57			43			90			45			37			(35	%)		(18	%)
Deferred policy acquisition costs		(19	)		(13	)		(9	)		(9	)		(9	)		53	%		—
Total other insurance expense		38			30			81			36			28			(26	%)		(22	%)
Amortization of deferred policy acquisition costs [1]		15			2			2			4			6			(60	%)		50	%
Total benefits and expenses		470			506			775			531			492			5	%		(7	%)
Core earnings before income taxes		50			46			54			49			31			(38	%)		(37	%)
Income tax expense		15			14			16			14			9			(40	%)		(36	%)
Core earnings [1]	$	35		$	32		$	38		$	35		$	22			(37	%)		(37	%)
Net realized losses, net of tax and DAC, excluded from core earnings		(2	)		(13	)		(30	)		(78	)		(142	)	NM				(82	%)
Net income (loss) [1]	$	33		$	19		$	8		$	(43	)	$	(120	)	NM				(179	%)
RETURN ON ASSETS (After-tax bps)
Core earnings		26.8			23.3			26.1			23.0			14.3			(47	%)		(38	%)
Net income (loss)		25.2			13.8			5.5			(28.2	)		(78.0	)	NM				(177	%)

[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
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
Institutional
Structured settlements	$	278	$	286	$	235	$	267	$	211		(24	%)		(21	%)
Institutional annuities		5		43		257		10		23	NM				130	%
Guaranteed interest products		855		784		831		115		721		(16	%)	NM
Other		51		158		58		114		53		4	%		(54	%)
Subtotal		1,189		1,271		1,381		506		1,008		(15	%)		99	%
Mutual funds		309		298		571		504		583		89	%		16	%
Total Institutional		1,498		1,569		1,952		1,010		1,591		6	%		58	%
Private Placement Life Insurance
Corporate owned		1,390		786		2,569		450		57		(96	%)		(87	%)
Private clients		7		3		10		4		13		86	%	NM
Total Private Placement Life Insurance		1,397		789		2,579		454		70		(95	%)		(85	%)
Total Institutional Solutions Group	$	2,895	$	2,358	$	4,531	$	1,464	$	1,661		(43	%)		13	%

L - 20

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

											Year Over
											Year			Sequential
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
INSTITUTIONAL
General account	$	18,166	$	18,899	$	19,701	$	19,731	$	20,197		11	%		2	%
Guaranteed separate account		416		407		413		421		412		(1	%)		(2	%)
Non-guaranteed separate account		4,577		4,821		4,927		4,951		4,675		2	%		(6	%)
Total Institutional account value		23,159		24,127		25,041		25,103		25,284		9	%		1	%
Mutual fund assets		2,669		2,956		3,398		3,581		3,489		31	%		(3	%)
Total Institutional Assets Under Management	$	25,828	$	27,083	$	28,439	$	28,684	$	28,773		11	%		—
PRIVATE PLACEMENT LIFE INSURANCE
General account	$	59	$	3	$	2	$	4	$	5		(92	%)		25	%
Non-guaranteed separate account		27,780		29,050		32,039		32,788		32,779		18	%		—
Total Private Placement Life Insurance account value		27,839		29,053		32,041		32,792		32,784		18	%		—
TOTAL INSTITUTIONAL SOLUTIONS GROUP
General account	$	18,225	$	18,902	$	19,703	$	19,735	$	20,202		11	%		2	%
Guaranteed separate account		416		407		413		421		412		(1	%)		(2	%)
Non-guaranteed separate account		32,357		33,871		36,966		37,739		37,454		16	%		(1	%)
Total Institutional Solutions Group account value		50,998		53,180		57,082		57,895		58,068		14	%		—
Mutual fund assets		2,669		2,956		3,398		3,581		3,489		31	%		(3	%)
Total Institutional Solutions Group Assets Under Management	$	53,667	$	56,136	$	60,480	$	61,476	$	61,557		15	%		—
BY PRODUCT
Institutional
Structured settlements	$	5,543	$	5,827	$	6,063	$	6,322	$	6,530		18	%		3	%
Institutional annuities		2,838		2,866		3,114		3,113		3,108		10	%		—
Guaranteed interest products		9,946		10,363		10,676		10,421		10,644		7	%		2	%
Other		4,832		5,071		5,188		5,247		5,002		4	%		(5	%)
Total Institutional		23,159		24,127		25,041		25,103		25,284		9	%		1	%
Private Placement Life Insurance		27,839		29,053		32,041		32,792		32,784		18	%		—
Total Institutional Solutions Group account value		50,998		53,180		57,082		57,895		58,068		14	%		—
Institutional Mutual Fund Assets		2,669		2,956		3,398		3,581		3,489		31	%		(3	%)
Total Institutional Solutions Group Assets Under Management	$	53,667	$	56,136	$	60,480	$	61,476	$	61,557		15	%		—

L - 21

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

			March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
			2007			2007			2007			2007			2008
INSTITUTIONAL INVESTMENT PRODUCTS
ACCOUNT VALUE [1]		Beginning balance	$	22,214		$	23,159		$	24,127		$	25,041		$	25,103
	Deposits			1,189			1,271			1,381			506			1,008
	Surrenders			(411	)		(562	)		(730	)		(572	)		(695	)
	Death benefits/annuity payouts			(151	)		(147	)		(150	)		(161	)		(160	)
	Net Flows			627			562			501			(227	)		153
	Change in market value/change in reserve/interest credited			318			406			413			289			28
		Ending balance	$	23,159		$	24,127		$	25,041		$	25,103		$	25,284
INSTITUTIONAL
MUTUAL FUND ASSETS [2]		Beginning balance	$	2,567		$	2,669		$	2,956		$	3,398		$	3,581
	Deposits			309			297			571			504			583
	Surrenders			(193	)		(251	)		(224	)		(273	)		(285	)
	Net Flows			116			46			347			231			298
	Change in market value/change in reserve/interest credited			(14	)		241			95			(48	)		(390	)
		Ending balance	$	2,669		$	2,956		$	3,398		$	3,581		$	3,489
PRIVATE PLACEMENT LIFE INSURANCE
ACCOUNT VALUE [1]		Beginning balance	$	26,131		$	27,839		$	29,053		$	32,041		$	32,792
	Deposits			1,397			789			2,579			454			70
	Surrenders			(3	)		(1	)		(2	)		(29	)		(17	)
	Death benefits/annuity payouts			(27	)		(18	)		(11	)		(27	)		(25	)
	Net Flows			1,367			770			2,566			398			28
	Change in market value/change in reserve/interest credited			398			495			462			372			18
	Other [3]			(57	)		(51	)		(40	)		(19	)		(54	)
		Ending balance	$	27,839		$	29,053		$	32,041		$	32,792		$	32,784
INSTITUTIONAL SOLUTIONS GROUP
		Beginning balance	$	50,912		$	53,667		$	56,136		$	60,480		$	61,476
	Deposits			2,895			2,357			4,531			1,464			1,661
	Surrenders			(607	)		(814	)		(956	)		(874	)		(997	)
	Death benefits/annuity payouts			(178	)		(165	)		(161	)		(188	)		(185	)
	Net Flows			2,110			1,378			3,414			402			479
	Change in market value/change in reserve/interest credited			702			1,142			970			613			(344	)
	Other [3]			(57	)		(51	)		(40	)		(19	)		(54	)
		Ending balance	$	53,667		$	56,136		$	60,480		$	61,476		$	61,557

[1]	Account value includes policyholder balances for investment contracts and reserves for future policy benefits for insurance contracts.
[2]	Mutual Fund assets are an internal measure used by the company because a portion of revenues are based upon asset levels. Mutual Fund assets are not included on the balance sheet.
[3]	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
																Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
Revenues	2007			2007			2007			2007			2008			Change			Change
Premiums and other considerations
Variable life fees	$	17		$	19		$	19		$	20		$	18			6	%		(10	%)
Cost of insurance charges		130			132			134			137			140			8	%		2	%
Other fees [1]		68			66			53			75			63			(7	%)		(16	%)
Total fee income		215			217			206			232			221			3	%		(5	%)
Direct premiums		25			28			28			30			28			12	%		(7	%)
Reinsurance premiums		(40	)		(41	)		(42	)		(50	)		(46	)		(15	%)		8	%
Net premiums		(15	)		(13	)		(14	)		(20	)		(18	)		(20	%)		10	%
Total premiums and other considerations		200			204			192			212			203			2	%		(4	%)
Net investment income
Net investment income on G/A assets		89			91			92			94			92			3	%		(2	%)
Net investment income on assigned capital		3			3			3			3			4			33	%		33	%
Charge for invested capital		(5	)		(5	)		(4	)		(5	)		(8	)		(60	%)		(60	%)
Total net investment income		87			89			91			92			88			1	%		(4	%)
Net realized capital losses — core		—			(1	)		—			—			—			—			—
Total core revenues		287			292			283			304			291			1	%		(4	%)
Net realized gains (losses) and other, before tax and DAC, excluded from core revenues		9			(2	)		(16	)		(18	)		(35	)	NM				(94	%)
Total revenues		296			290			267			286			256			(14	%)		(10	%)
Benefits and Expenses
Benefits and losses
Death benefits		70			74			78			76			91			30	%		20	%
Other contract benefits		6			6			6			6			5			(17	%)		(17	%)
Change in reserve		(3	)		(5	)		(4	)		1			(4	)		(33	%)	NM
Interest credited on G/A assets		63			61			63			64			62			(2	%)		(3	%)
Total benefits and losses		136			136			143			147			154			13	%		5	%
Other insurance expenses
Commissions & wholesaling expenses		59			59			58			69			59			—			(14	%)
Operating expenses		63			64			65			71			64			2	%		(10	%)
Dividends to policyholders		1			—			1			1			1			—			—
Premium taxes and other expenses		12			13			8			16			11			(8	%)		(31	%)
Subtotal — expenses before deferral		135			136			132			157			135			—			(14	%)
Deferred policy acquisition costs		(87	)		(87	)		(88	)		(105	)		(88	)		(1	%)		16	%
Total other insurance expense		48			49			44			52			47			(2	%)		(10	%)
Amortization of deferred policy acquisition costs and present value of future profits [1]		36			42			1			48			32			(11	%)		(33	%)
Total benefits and expenses		220			227			188			247			233			6	%		(6	%)
Core earnings before income taxes		67			65			95			57			58			(13	%)		2	%
Income tax expense [1]		21			19			31			17			17			(19	%)		—
Core earnings [1] [2]	$	46		$	46		$	64		$	40		$	41			(11	%)		3	%
Net realized gains (losses), net of tax and DAC, excluded from core earnings		6			(2	)		(9	)		(9	)		(21	)	NM				(133	%)
Net income [1] [2]	$	52		$	44		$	55		$	31		$	20			(62	%)		(35	%)
Earnings Margin (After-tax)
Core earnings		16.0	%		15.8	%		22.6	%		13.2	%		14.1	%		(1.9	)		0.9
Net income		17.6	%		15.2	%		20.6	%		10.8	%		7.8	%		(9.8	)		(3.0	)

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

	September 30, 2007
Other Fees	$	(13	)
Amortization of deferred policy acquisition costs		(37	)
Income tax expense (benefit)		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
	March 31,		June 30,		Sept. 30,		Dec. 31,		March 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
SALES BY DISTRIBUTION
Wirehouse/regional broker-dealer	$	20	$	27	$	26	$	30	$	24		20	%		(20	%)
Banks		10		10		11		13		9		(10	%)		(31	%)
Independent broker-dealer/WFS		14		17		17		22		18		29	%		(18	%)
Life professional/other		16		14		15		24		14		(13	%)		(42	%)
Total sales by distribution	$	60	$	68	$	69	$	89	$	65		8	%		(27	%)
SALES BY PRODUCT
Variable life	$	26	$	33	$	33	$	38	$	28		8	%		(26	%)
Universal life/whole life		30		29		31		46		32		7	%		(30	%)
Term life/other		4		6		5		5		5		25	%		—
Total sales by product	$	60	$	68	$	69	$	89	$	65		8	%		(27	%)
ACCOUNT VALUE
General account	$	5,334	$	5,413	$	5,486	$	5,591	$	5,688		7	%		2	%
Separate account		6,244		6,692		6,884		6,758		6,091		(2	%)		(10	%)
Total account value	$	11,578	$	12,105	$	12,370	$	12,349	$	11,779		2	%		(5	%)
ACCOUNT VALUE BY PRODUCT
Variable life	$	6,754	$	7,206	$	7,402	$	7,284	$	6,620		(2	%)		(9	%)
Universal life/interest sensitive whole life		4,126		4,208		4,285		4,388		4,485		9	%		2	%
Modified guaranteed life		580		573		564		555		551		(5	%)		(1	%)
Other		118		118		119		122		123		4	%		1	%
Total account value by product	$	11,578	$	12,105	$	12,370	$	12,349	$	11,779		2	%		(5	%)
LIFE INSURANCE IN-FORCE
Variable life	$	74,439	$	75,496	$	76,498	$	77,566	$	78,145		5	%		1	%
Universal life/interest sensitive whole life		46,013		46,750		47,581		48,636		49,415		7	%		2	%
Term life		46,053		48,536		50,641		52,298		54,369		18	%		4	%
Modified guaranteed life		718		702		687		671		662		(8	%)		(1	%)
Other		323		319		316		312		307		(5	%)		(2	%)
Total life insurance in-force	$	167,546	$	171,803	$	175,723	$	179,483	$	182,898		9	%		2	%

L - 24

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

		THREE MONTHS ENDED
		March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
		2007			2007			2007			2007			2008
VARIABLE LIFE	Beginning balance	$	6,637		$	6,754		$	7,206		$	7,402		$	7,284
	First year & single premiums		77			87			92			93			74
	Renewal premiums		156			140			134			155			142
	Premiums and deposits		233			227			226			248			216
	Surrenders		(86	)		(89	)		(77	)		(91	)		(90	)
	Death benefits		(24	)		(14	)		(18	)		(13	)		(16	)
	Net Flows		123			124			131			144			110
	Policy fees		(124	)		(125	)		(127	)		(130	)		(131	)
	Change in market value/interest credited		118			453			192			(132	)		(643	)
	Ending balance	$	6,754		$	7,206		$	7,402		$	7,284		$	6,620
OTHER [1]	Beginning balance	$	4,734		$	4,824		$	4,899		$	4,968		$	5,065
	First year & single premiums		111			105			97			111			117
	Renewal premiums		119			109			115			126			121
	Premiums and deposits		230			214			212			237			238
	Surrenders		(53	)		(52	)		(54	)		(43	)		(46	)
	Death benefits		(23	)		(21	)		(20	)		(25	)		(21	)
	Net Flows		154			141			138			169			171
	Policy fees		(120	)		(122	)		(125	)		(129	)		(132	)
	Change in market value/interest credited		56			56			56			57			55
	Ending balance	$	4,824		$	4,899		$	4,968		$	5,065		$	5,159
TOTAL INDIVIDUAL LIFE	Beginning balance	$	11,371		$	11,578		$	12,105		$	12,370		$	12,349
	First year & single premiums		188			192			189			204			191
	Renewal premiums		275			249			249			281			263
	Premiums and deposits		463			441			438			485			454
	Surrenders		(139	)		(141	)		(131	)		(134	)		(136	)
	Death benefits		(47	)		(35	)		(38	)		(38	)		(37	)
	Net Flows		277			265			269			313			281
	Policy fees		(244	)		(247	)		(252	)		(259	)		(263	)
	Change in market value/interest credited		174			509			248			(75	)		(588	)
	Ending balance	$	11,578		$	12,105		$	12,370		$	12,349		$	11,779

[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
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Revenues
Premiums and other considerations
ASO fees	$	8		$	9		$	8		$	9		$	9			13	%		—
Other fees		1			(1	)		—			1			(1	)	NM			NM
Total fee income		9			8			8			10			8			(11	%)		(20	%)
Direct premiums		1,027			1,030			996			1,015			1,031			—			2	%
Reinsurance premiums		49			53			57			39			35			(29	%)		(10	%)
Net premiums		1,076			1,083			1,053			1,054			1,066			(1	%)		1	%
Total premiums and other considerations		1,085			1,091			1,061			1,064			1,074			(1	%)		1	%
Net investment income
Net investment income on G/A assets		99			98			96			96			88			(11	%)		(8	%)
Net investment income on assigned capital		19			19			19			19			18			(5	%)		(5	%)
Total net investment income		118			117			115			115			106			(10	%)		(8	%)
Net realized capital gains — core		—			—			3			4			—			—			(100	%)
Total core revenues		1,203			1,208			1,179			1,183			1,180			(2	%)		—
Net realized gains (losses), before tax and DAC, excluded from core revenues		2			(6	)		(13	)		(20	)		(36	)	NM				(80	%)
Total revenues		1,205			1,202			1,166			1,163			1,144			(5	%)		(2	%)
Benefits and Expenses
Benefits and losses
Death benefits		266			267			265			261			290			9	%		11	%
Other contract benefits [1]		479			479			475			497			475			(1	%)		(4	%)
Change in reserve [1]		61			47			25			(13	)		23			(62	%)	NM
Total benefits and losses		806			793			765			745			788			(2	%)		6	%
Other insurance expenses
Commissions & wholesaling expenses		156			147			135			144			148			(5	%)		3	%
Operating expenses		133			129			137			150			135			2	%		(10	%)
Premium taxes and other expenses		20			9			22			22			19			(5	%)		(14	%)
Subtotal — expenses before deferral		309			285			294			316			302			(2	%)		(4	%)
Deferred policy acquisition costs		(20	)		(11	)		(21	)		(21	)		(17	)		15	%		19	%
Total other insurance expense		289			274			273			295			285			(1	%)		(3	%)
Amortization of deferred policy acquisition costs		17			18			13			14			13			(24	%)		(7	%)
Total benefits and expenses		1,112			1,085			1,051			1,054			1,086			(2	%)		3	%
Core earnings before income taxes		91			123			128			129			94			3	%		(27	%)
Income tax expense		23			37			36			37			24			4	%		(35	%)
Core earnings	$	68		$	86		$	92		$	92		$	70			3	%		(24	%)
Net realized gains (losses), net of tax and DAC, excluded from core earnings		1			(3	)		(9	)		(12	)		(24	)	NM				(100	%)
Net income	$	69		$	83		$	83		$	80		$	46			(33	%)		(43	%)
After-Tax Profit as % of Revenues
Core earnings		5.7	%		7.2	%		7.8	%		7.8	%		5.9	%		0.2			(1.9	)
Net income		5.8	%		7.0	%		7.1	%		6.9	%		4.0	%		(1.8	)		(2.9	)

[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
																	Year			Sequential
		March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
		2007			2007			2007			2007			2008			Change			Change
PREMIUMS	Fully Insured — Ongoing Premiums
	Group disability	$	470		$	463		$	459		$	466		$	480			2	%		3	%
	Group life		473			483			482			488			508			7	%		4	%
	Other		122			122			112			99			78			(36	%)		(21	%)
	Total fully insured — ongoing premiums		1,065			1,068			1,053			1,053			1,066			—			1	%
	Total buyouts [1]		11			15			—			1			—			(100	%)		(100	%)
	Total premiums		1,076			1,083			1,053			1,054			1,066			(1	%)		1	%
	Group disability — premium equivalents [2]		85			84			85			78			85			—			9	%
	Total premiums and premium equivalents	$	1,161		$	1,167		$	1,138		$	1,132		$	1,151			(1	%)		2	%
SALES (GROSS ANNUALIZED NEW PREMIUMS)	Fully Insured — Ongoing Sales
	Group disability	$	177		$	40		$	54		$	54		$	190			7	%	NM
	Group life		156			66			67			75			186			19	%		148	%
	Other		53			13			4			11			5			(91	%)		(55	%)
	Total fully insured — ongoing sales		386			119			125			140			381			(1	%)		172	%
	Total buyouts [1]		2			24			—			—			—			(100	%)		—
	Total sales		388			143			125			140			381			(2	%)		172	%
	Group disability premium equivalents [2]		54			13			22			17			95			76	%	NM
	Total sales and premium equivalents	$	442		$	156		$	147		$	157		$	476			8	%	NM
RATIOS [3]	Loss Ratio		74.0	%		72.3	%		72.1	%		70.0	%		73.4	%		(0.6	)		3.4
	Expense Ratio		28.5	%		27.1	%		27.0	%		29.1	%		27.7	%		(0.8	)		(1.4	)
GAAP RESERVES [4]	Group disability	$	4,590		$	4,652		$	4,667		$	4,616		$	4,657			1	%		1	%
	Group life		1,276			1,269			1,281			1,315			1,320			3	%		—
	Other		178			168			168			176			146			(18	%)		(17	%)
	Total GAAP reserves	$	6,044		$	6,089		$	6,116		$	6,107		$	6,123			1	%		—

[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 for the three months ended March 31, June 30, September 30, December 31, 2007 and March 31, 2008 are net of reinsurance recoverables of $230, $219, $221, $261 and $252, respectively.

L - 27

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
LIFE
INTERNATIONAL
HIGHLIGHTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Months			3 Months
	2007			2007			2007			2007			2008			Change			Change
CORE EARNINGS
Japan operations		62		$	63		$	88		$	68		$	70			13	%		3	%
Other international operations		(7	)		(4	)		(9	)		(7	)		(3	)		57	%		57	%
Core earnings		55		$	59		$	79		$	61		$	67			22	%		10	%
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		(1	)		(18	)		11			(23	)		(59	)	NM				(157	%)
Net income		54		$	41		$	90		$	38		$	8			(85	%)		(79	%)
JAPAN DEPOSITS — Dollars
Individual Annuity
Variable		1,678		$	1,754		$	1,803		$	1,086		$	944			(44	%)		(13	%)
Fixed MVA		28			12			24			20			172		NM			NM
Total deposits by product		1,706		$	1,766		$	1,827		$	1,106		$	1,116			(35	%)		1	%
JAPAN DEPOSITS — Yen
Individual Annuity
Variable		199,523		¥	211,961		¥	212,415		¥	122,808		¥	99,140			(50	%)		(19	%)
Fixed MVA		3,391			1,393			2,792			2,293			17,558		NM			NM
Total deposits by product		202,914		¥	213,354		¥	215,207		¥	125,101		¥	116,698			(42	%)		(7	%)
JAPAN NET FLOWS — Dollars
Individual Annuity
Variable		1,184		$	1,282		$	1,386		$	646		$	520			(56	%)		(20	%)
Fixed MVA		13			(3	)		12			5			143		NM			NM
Total net flows by product		1,197		$	1,279		$	1,398		$	651		$	663			(45	%)		2	%
JAPAN NET FLOWS — Yen
Individual Annuity
Variable		140,557		¥	154,811		¥	163,067		¥	73,035		¥	54,447			(61	%)		(25	%)
Fixed MVA		1,621			(443	)		1,354			636			14,580		NM			NM
Total net flows by product		142,178		¥	154,368		¥	164,421		¥	73,671		¥	69,027			(51	%)		(6	%)
JAPAN AUM — Dollars
Individual Annuity
Variable		31,148		$	32,050		$	34,888		$	35,793		$	36,777			18	%		3	%
Fixed MVA		1,723			1,658			1,785			1,844			2,198			28	%		19	%
Total AUM by product		32,871		$	33,708		$	36,673		$	37,637		$	38,975			19	%		4	%
JAPAN AUM — Yen
Individual Annuity
Variable		3,677,972		¥	3,958,157		¥	4,012,693		¥	3,998,563		¥	3,660,549			—			(8	%)
Fixed MVA		203,489			204,729			205,275			206,028			218,854			8	%		6	%
Total AUM by product		3,881,461		¥	4,162,886		¥	4,217,968		¥	4,204,591		¥	3,879,403			—			(8	%)

L - 28

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

																Year Over
																Year			Sequential
	March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Revenues
Premiums and other considerations
Variable annuity fees	$	174		$	185		$	197		$	209		$	209			20	%		—
Other fees		18			14			13			15			18			—			20	%
Total fee income		192			199			210			224			227			18	%		1	%
Reinsurance premiums		(3	)		(2	)		(3	)		(3	)		(2	)		33	%		33	%
Total premiums and other considerations		189			197			207			221			225			19	%		2	%
Net investment income
Net investment income on G/A assets		28			29			31			29			25			(11	%)		(14	%)
Net investment income on assigned capital		1			1			—			1			1			—			—
Total net investment income		29			30			31			30			26			(10	%)		(13	%)
Net realized capital losses — core		(17	)		(19	)		(16	)		(16	)		(7	)		59	%		56	%
Total core revenues		201			208			222			235			244			21	%		4	%
Net realized gains (losses) and other, before tax and DAC, excluded from core revenues		(3	)		(24	)		17			(33	)		(108	)	NM			NM
Total revenues		198			184			239			202			136			(31	%)		(33	%)
Benefits and Expenses
Benefits and losses
Death and other benefits [1]		2			2			(6	)		6			8		NM				33	%
Sales inducements		—			—			1			—			—			—			—
Interest credited on G/A assets		6			6			6			7			8			33	%		14	%
Total benefits and losses		8			8			1			13			16			100	%		23	%
Other insurance expenses
Commissions & wholesaling expenses		113			112			120			78			73			(35	%)		(6	%)
Operating expenses		33			38			46			50			40			21	%		(20	%)
Premium taxes and other expenses		9			9			6			7			9			—			29	%
Subtotal — expenses before deferral		155			159			172			135			122			(21	%)		(10	%)
Deferred policy acquisition costs		(113	)		(115	)		(121	)		(80	)		(69	)		39	%		14	%
Total other insurance expense		42			44			51			55			53			26	%		(4	%)
Amortization of deferred policy acquisition costs [1]		56			59			34			62			68			21	%		10	%
Total benefits and expenses		106			111			86			130			137			29	%		5	%
Core earnings before income taxes		95			97			136			105			107			13	%		2	%
Income tax expense [1]		33			34			48			37			37			12	%		—
Core earnings [1]	$	62		$	63		$	88		$	68		$	70			13	%		3	%
Net realized gains (losses) and other, net of tax and DAC, excluded from core earnings		(2	)		(16	)		10			(20	)		(56	)	NM				(180	%)
Net income [1]	$	60		$	47		$	98		$	48		$	14			(77	%)		(71	%)
RETURN ON ASSETS (After-tax bps)
Core earnings		77.2			75.7			100.0			73.2			73.1			(5	%)		—
Net income		74.8			56.5			111.4			51.7			14.6			(80	%)		(72	%)

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

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

L - 29

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

		March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
		2007			2007			2007			2007			2008
VARIABLE ANNUITIES	Beginning balance	$	29,653		$	31,148		$	32,050		$	34,888		$	35,793
	Deposits/Premiums/other		1,678			1,754			1,803			1,086			944
	Surrenders		(394	)		(364	)		(309	)		(321	)		(298	)
	Death benefits/annuitizations/other		(100	)		(108	)		(108	)		(119	)		(126	)
	Net Flows		1,184			1,282			1,386			646			520
	Change in market value/currency/change in reserve/interest credited		29			1,045			(893	)		(801	)		(3,722	)
	Effect of currency translation		282			(1,425	)		2,345			1,060			4,186
	Ending balance	$	31,148		$	32,050		$	34,888		$	35,793		$	36,777
FIXED MVA AND OTHER	Beginning balance	$	1,690		$	1,723		$	1,658		$	1,785		$	1,844
	Deposits/Premiums/other		28			12			24			20			172
	Surrenders		(9	)		(8	)		(4	)		(8	)		(12	)
	Death benefits/annuitizations/other		(6	)		(7	)		(8	)		(7	)		(17	)
	Net Flows		13			(3	)		12			5			143
	Change in market value/currency/change in reserve/interest credited		4			14			(7	)		1			(17	)
	Effect of currency translation		16			(76	)		122			53			228
	Ending balance	$	1,723		$	1,658		$	1,785		$	1,844		$	2,198
TOTAL JAPAN	Beginning balance	$	31,343		$	32,871		$	33,708		$	36,673		$	37,637
	Deposits/Premiums/other		1,706			1,766			1,827			1,106			1,116
	Surrenders		(403	)		(372	)		(313	)		(329	)		(310	)
	Death benefits/annuitizations/other		(106	)		(115	)		(116	)		(126	)		(143	)
	Net Flows		1,197			1,279			1,398			651			663
	Change in market value/change in reserve/interest credited		33			1,059			(900	)		(800	)		(3,739	)
	Effect of currency translation		298			(1,501	)		2,467			1,113			4,414
	Ending balance	$	32,871		$	33,708		$	36,673		$	37,637		$	38,975

L - 30

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

		THREE MONTHS ENDED
		March 31,			June 30,			Sept. 30,			Dec. 31,			March 31,
		2007			2007			2007			2007			2008
VARIABLE ANNUITIES	Beginning balance	¥	3,533,426		¥	3,677,972		¥	3,958,157		¥	4,012,693		¥	3,998,563
	Deposits/Premiums/other		199,523			211,961			212,415			122,808			99,140
	Surrenders		(47,094	)		(44,092	)		(36,607	)		(36,261	)		(31,364	)
	Death benefits/annuitizations/other		(11,872	)		(13,058	)		(12,741	)		(13,512	)		(13,329	)
	Net Flows		140,557			154,811			163,067			73,035			54,447
	Change in market value/change in reserve/interest credited		3,989			125,374			(108,531	)		(87,165	)		(392,461	)
	Ending balance		3,677,972			3,958,157			4,012,693			3,998,563			3,660,549
FIXED MVA AND OTHER	Beginning balance		201,362			203,489			204,729			205,275			206,028
	Deposits/Premiums/other		3,391			1,393			2,792			2,293			17,558
	Surrenders		(1,098	)		(992	)		(529	)		(904	)		(1,245	)
	Death benefits/annuitizations/other		(672	)		(844	)		(909	)		(753	)		(1,733	)
	Net Flows		1,621			(443	)		1,354			636			14,580
	Change in market value/change in reserve/interest credited		693			723			753			767			790
	Effect of currency translation on USD Fixed Annuity products		(187	)		960			(1,561	)		(650	)		(2,544	)
	Ending balance		203,489			204,729			205,275			206,028			218,854
TOTAL JAPAN	Beginning balance		3,734,788			3,881,461			4,162,886			4,217,968			4,204,591
	Deposits/Premiums/other		202,914			213,354			215,207			125,101			116,698
	Surrenders		(48,192	)		(45,084	)		(37,136	)		(37,165	)		(32,609	)
	Death benefits/annuitizations/other		(12,544	)		(13,902	)		(13,650	)		(14,265	)		(15,062	)
	Net Flows		142,178			154,368			164,421			73,671			69,027
	Change in market value/change in reserve/interest credited		4,682			126,097			(107,778	)		(86,398	)		(391,671	)
	Effect of currency translation on USD Fixed Annuity products		(187	)		960			(1,561	)		(650	)		(2,544	)
	Ending balance	¥	3,881,461		¥	4,162,886		¥	4,217,968		¥	4,204,591		¥	3,879,403

L - 31

PROPERTY & CASUALTY

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
TOTAL PROPERTY & CASUALTY PREMIUMS
Written premiums	$	2,622		$	2,675		$	2,630		$	2,513		$	2,586			(1	%)		3	%
Earned premiums		2,623			2,622			2,628			2,623			2,614			—			—
TOTAL PROPERTY & CASUALTY UNDERWRITING RESULTS
Personal Lines		130			84			78			30			105			(19	%)	NM
Small Commercial		84			101			119			204			119			42	%		(42	%)
Middle Market		33			34			22			55			51			55	%		(7	%)
Specialty Commercial		46			(2	)		6			(55	)		43			(7	%)	NM
Ongoing Operations underwriting results		293			217			225			234			318			9	%		36	%
Other Operations [1]		(24	)		(120	)		(43	)		(23	)		(19	)		21	%		17	%
Total Property & Casualty underwriting results	$	269		$	97		$	182		$	211		$	299			11	%		42	%
ONGOING OPERATIONS UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [2]		61.9			63.6			64.5			65.2			62.2			(0.3	)		3.0
Current accident year catastrophes		1.1			2.0			1.2			2.5			1.9			(0.8	)		0.6
Prior accident years [3]		0.2			(0.5	)		(0.4	)		(4.8	)		(2.0	)		2.2			(2.8	)
Total losses and loss adjustment expenses		63.1			65.1			65.3			62.8			62.2			0.9			0.6
Expenses		25.5			26.3			25.9			27.3			25.5			—			1.8
Policyholder dividends [4]		0.2			0.4			0.2			0.9			0.2			—			0.7
Combined ratio		88.8			91.7			91.4			91.1			87.8			1.0			3.3
Catastrophes
Current year		1.1			2.0			1.2			2.5			1.9			(0.8	)		0.6
Prior year		(0.2	)		0.1			0.3			0.2			(0.4	)		0.2			0.6
Catastrophe ratio		0.9			2.1			1.5			2.6			1.5			(0.6	)		1.1
Combined ratio before catastrophes		87.9			89.6			89.9			88.4			86.4			1.5			2.0
Combined ratio before catastrophes and prior year development [3]		87.6			90.2			90.6			93.4			87.9			(0.3	)		5.5
Total Property & Casualty Income and ROE
Net income	$	461		$	344		$	353		$	349		$	326			(29	%)		(7	%)
Core earnings	$	448		$	362		$	405		$	414		$	426			(5	%)		3	%
Core earnings ROE (last 12 months income-equity x-AOCI)
Ongoing Operations		24.3	%		23.4	%		23.7	%		23.2	%		22.7	%		(1.6	)		(0.5	)
Other Operations		(9.2	%)		3.4	%		5.2	%		4.4	%		4.6	%		13.8			0.2
Total Property & Casualty		20.9	%		21.5	%		21.9	%		21.4	%		21.1	%		0.2			(0.3	)

	PROPERTY & CASUALTY
	Dec. 31,		Mar. 31,
	2007		2008		Change
Selected Financial Data
Total Property and Casualty adjusted statutory surplus ($ in billions)	$	8.5	$	8.3	$	(0.2	)
Total Property and Casualty premium to adjusted surplus ratio		1.2		1.3		0.1

[1]	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 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
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
TOTAL PROPERTY & CASUALTY UNDERWRITING RESULTS
Written premiums	$	2,622		$	2,675		$	2,630		$	2,513		$	2,586			(1	%)		3	%
Change in unearned premium reserve		(1	)		53			2			(110	)		(28	)	NM				75	%
Earned premiums		2,623			2,622			2,628			2,623			2,614			—			—
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,625			1,664			1,695			1,708			1,625			—			(5	%)
Current accident year catastrophes		28			52			32			65			50			79	%		(23	%)
Prior accident years [2]		22			104			28			(106	)		(36	)	NM				66	%
Total losses and loss adjustment expenses		1,675			1,820			1,755			1,667			1,639			(2	%)		(2	%)
Underwriting expenses [3]		675			695			686			721			671			(1	%)		(7	%)
Dividends to policyholders [4]		4			10			5			24			5			25	%		(79	%)
Underwriting results		269			97			182			211			299			11	%		42	%
Net servicing income		11			14			16			11			(1	)	NM			NM
Net investment income [5]		413			446			407			421			365			(12	%)		(13	%)
Periodic net coupon settlements on credit derivatives, before-tax		3			3			5			4			2			(33	%)		(50	%)
Other expenses [6]		(60	)		(58	)		(64	)		(67	)		(59	)		2	%		12	%
Income tax expense		(188	)		(140	)		(141	)		(166	)		(180	)		4	%		(8	%)
Core earnings		448			362			405			414			426			(5	%)		3	%
Add: Net realized capital gains (losses), after-tax [7]		13			(18	)		(52	)		(65	)		(100	)	NM				(54	%)
Net income	$	461		$	344		$	353		$	349		$	326			(29	%)		(7	%)
Total Property & Casualty effective tax rate — net income		29.7	%		27.6	%		24.2	%		27.4	%		27.9	%		(1.8	)		0.5
Total Property & Casualty effective tax rate — core earnings		29.5	%		27.9	%		25.8	%		28.7	%		29.7	%		0.2			1.0

[1]	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 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 three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007, September 30, 2007 and March 31, 2008 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[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 decrease in net investment income for the three months ended March 31, 2008 was primarily driven by losses on limited partnerships and other alternative investments, largely due to lower returns on hedge funds and real estate partnerships as a result of the lack of liquidity in the financial markets.
[6]	The three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008 included $14, $12, $12, $11 and $10 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.
[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
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
ONGOING OPERATIONS UNDERWRITING RESULTS
Written premiums	$	2,622		$	2,674		$	2,628		$	2,511		$	2,584			(1	%)		3	%
Change in unearned premium reserve		(1	)		53			2			(110	)		(29	)	NM				74	%
Earned premiums		2,623			2,621			2,626			2,621			2,613			—			—
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,625			1,664			1,695			1,708			1,625			—			(5	%)
Current accident year catastrophes		28			52			32			65			50			79	%		(23	%)
Prior accident years [2]		4			(12	)		(11	)		(126	)		(51	)	NM				60	%
Total losses and loss adjustment expenses		1,657			1,704			1,716			1,647			1,624			(2	%)		(1	%)
Underwriting expenses [3]		669			690			680			716			666			—			(7	%)
Dividends to policyholders [4]		4			10			5			24			5			25	%		(79	%)
Underwriting results		293			217			225			234			318			9	%		36	%
Net servicing income		11			14			16			11			(1	)	NM			NM
Net investment income [5]		351			385			346			357			310			(12	%)		(13	%)
Periodic net coupon settlements on credit derivatives, before-tax		3			3			5			4			2			(33	%)		(50	%)
Other expenses [6]		(60	)		(56	)		(63	)		(69	)		(57	)		5	%		17	%
Income tax expense		(178	)		(165	)		(138	)		(155	)		(172	)		3	%		(11	%)
Core earnings		420			398			391			382			400			(5	%)		5	%
Add: Net realized capital gains (losses), after-tax [7]		9			(14	)		(50	)		(59	)		(88	)	NM				(49	%)
Net income	$	429		$	384		$	341		$	323		$	312			(27	%)		(3	%)
Ongoing Operations effective tax rate — net income		29.9	%		29.1	%		24.5	%		27.6	%		28.4	%		(1.5	)		0.8
Ongoing Operations effective tax rate — core earnings		29.8	%		29.3	%		26.1	%		28.9	%		30.0	%		0.2			1.1

[1]	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 three months ended December 31, 2007 included $110 of reserve releases related to Small Commercial workers’ compensation claims.
[3]	The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007, September 30, 2007 and March 31, 2008 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[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 decrease in net investment income for the three months ended March 31, 2008 was primarily driven by losses on limited partnerships and other alternative investments, largely due to lower returns on hedge funds and real estate partnerships as a result of the lack of liquidity in the financial markets.
[6]	The three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008 included $14, $12, $12, $11 and $10 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.
[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 MARCH 31, 2008

	Personal			Small			Middle			Specialty			Ongoing
	Lines			Commercial			Market			Commercial			Operations
UNDERWRITING RESULTS
Written premiums	$	936		$	743		$	548		$	357		$	2,584
Change in unearned premium reserve		(47	)		56			(28	)		(10	)		(29	)
Earned premiums		983			687			576			367			2,613
Losses and loss adjustment expenses
Current accident year before catastrophes		635			370			372			248			1,625
Current accident year catastrophes		30			9			9			2			50
Prior accident years		(8	)		(2	)		(16	)		(25	)		(51	)
Total losses and loss adjustment expenses		657			377			365			225			1,624
Underwriting expenses		221			190			158			97			666
Dividends to policyholders		—			1			2			2			5
Underwriting results	$	105		$	119		$	51		$	43		$	318
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes		64.6			53.8			64.5			67.9			62.2
Current accident year catastrophes		3.1			1.3			1.6			0.3			1.9
Prior accident years [1]		(0.8	)		(0.3	)		(2.7	)		(7.0	)		(2.0	)
Total losses and loss adjustment expenses		66.9			54.8			63.4			61.2			62.2
Expenses		22.4			27.7			27.5			26.4			25.5
Policyholder dividends		—			0.2			0.3			0.5			0.2
Combined ratio		89.4			82.7			91.2			88.0			87.8
Catastrophes
Current year		3.1			1.3			1.6			0.3			1.9
Prior year		(0.7	)		—			0.3			(1.8	)		(0.4	)
Catastrophe ratio		2.5			1.3			1.9			(1.5	)		1.5
Combined ratio before catastrophes		86.9			81.3			89.3			89.6			86.4
Combined ratio before catastrophes and prior year development [1]		87.0			81.7			92.3			94.7			87.9

[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
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	2,622		$	2,674		$	2,628		$	2,511		$	2,584			(1	%)		3	%
Change in unearned premium reserve		(1	)		53			2			(110	)		(29	)	NM				74	%
Earned premiums		2,623			2,621			2,626			2,621			2,613			—			—
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		1,625			1,664			1,695			1,708			1,625			—			(5	%)
Current accident year catastrophes		28			52			32			65			50			79	%		(23	%)
Prior accident years [2]		4			(12	)		(11	)		(126	)		(51	)	NM				60	%
Total losses and loss adjustment expenses		1,657			1,704			1,716			1,647			1,624			(2	%)		(1	%)
Underwriting expenses [3]		669			690			680			716			666			—			(7	%)
Dividends to policyholders [4]		4			10			5			24			5			25	%		(79	%)
Underwriting results	$	293		$	217		$	225		$	234		$	318			9	%		36	%
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		61.9			63.6			64.5			65.2			62.2			(0.3	)		3.0
Current accident year catastrophes		1.1			2.0			1.2			2.5			1.9			(0.8	)		0.6
Prior accident years [2] [5]		0.2			(0.5	)		(0.4	)		(4.8	)		(2.0	)		2.2			(2.8	)
Total losses and loss adjustment expenses		63.1			65.1			65.3			62.8			62.2			0.9			0.6
Expenses		25.5			26.3			25.9			27.3			25.5			—			1.8
Policyholder dividends		0.2			0.4			0.2			0.9			0.2			—			0.7
Combined ratio		88.8			91.7			91.4			91.1			87.8			1.0			3.3
Catastrophes
Current year		1.1			2.0			1.2			2.5			1.9			(0.8	)		0.6
Prior year		(0.2	)		0.1			0.3			0.2			(0.4	)		0.2			0.6
Catastrophe ratio		0.9			2.1			1.5			2.6			1.5			(0.6	)		1.1
Combined ratio before catastrophes		87.9			89.6			89.9			88.4			86.4			1.5			2.0
Combined ratio before catastrophes and prior year development [5]		87.6			90.2			90.6			93.4			87.9			(0.3	)		5.5

[1]	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 three months ended December 31, 2007 included $110 of reserve releases related to Small Commercial workers’ compensation claims.
[3]	The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007, September 30, 2007 and March 31, 2008 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[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-5

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

														Year Over
	THREE MONTHS ENDED													Year			Sequential
	Mar. 31,			Jun. 30,		Sept. 30,		Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007		2007		2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	939		$	1,039	$	1,035	$	934		$	936			—			—
Change in unearned premium reserve		(14	)		72		51		(51	)		(47	)	NM				8	%
Earned premiums		953			967		984		985			983			3	%		—
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		593			628		659		696			635			7	%		(9	%)
Current accident year catastrophes		17			32		26		50			30			76	%		(40	%)
Prior accident years [2]		4			4		7		(19	)		(8	)	NM				58	%
Total losses and loss adjustment expenses		614			664		692		727			657			7	%		(10	%)
Underwriting expenses [3]		209			219		214		228			221			6	%		(3	%)
Underwriting results	$	130		$	84	$	78	$	30		$	105			(19	%)	NM
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		62.2			65.1		66.9		70.5			64.6			(2.4	)		5.9
Current accident year catastrophes		1.8			3.3		2.6		5.1			3.1			(1.3	)		2.0
Prior accident years [2] [4]		0.5			0.3		0.7		(1.9	)		(0.8	)		1.3			(1.1	)
Total losses and loss adjustment expenses		64.5			68.7		70.1		73.8			66.9			(2.4	)		6.9
Expenses		21.9			22.6		21.9		23.2			22.4			(0.5	)		0.8
Combined ratio		86.4			91.3		92.0		97.0			89.4			(3.0	)		7.6
Catastrophes
Current year		1.8			3.3		2.6		5.1			3.1			(1.3	)		2.0
Prior year		—			0.3		0.4		0.1			(0.7	)		0.7			0.8
Catastrophe ratio		1.8			3.6		3.0		5.2			2.5			(0.7	)		2.7
Combined ratio before catastrophes		84.6			87.7		89.0		91.7			86.9			(2.3	)		4.8
Combined ratio before catastrophes and prior year development [4]		84.1			87.7		88.7		93.7			87.0			(2.9	)		6.7
COMBINED RATIO
Automobile		90.7			95.9		95.9		102.3			92.6			(1.9	)		9.7
Homeowners		74.8			79.0		81.9		83.1			81.1			(6.3	)		2.0
Total		86.4			91.3		92.0		97.0			89.4			(3.0	)		7.6

[1]	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.
[2]	The three months ended December 31, 2007 included a reserve release of $16 related to auto liability claims.
[3]	The three months ended March 31, 2007 and June 30, 2007 included Citizens’ assessment recoupments of $2 and $1, respectively. These assessments related to 2004 and 2005 hurricanes.
[4]	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
WRITTEN AND EARNED PREMIUMS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
BUSINESS UNIT
WRITTEN PREMIUMS [1]
AARP	$	650		$	727		$	724		$	649		$	662			2	%		2	%
Agency		269			293			294			267			258			(4	%)		(3	%)
Other		20			19			17			18			16			(20	%)		(11	%)
Total	$	939		$	1,039		$	1,035		$	934		$	936			—			—
EARNED PREMIUMS [1]
AARP	$	653		$	663		$	680		$	685		$	687			5	%		—
Agency		277			282			283			281			277			—			(1	%)
Other		23			22			21			19			19			(17	%)		—
Total	$	953		$	967		$	984		$	985		$	983			3	%		—
PRODUCT LINE
WRITTEN PREMIUMS [1]
Automobile	$	699		$	739		$	732		$	678		$	698			—			3	%
Homeowners		240			300			303			256			238			(1	%)		(7	%)
Total	$	939		$	1,039		$	1,035		$	934		$	936			—			—
EARNED PREMIUMS [1]
Automobile	$	693		$	705		$	712		$	712		$	706			2	%		(1	%)
Homeowners		260			262			272			273			277			7	%		1	%
Total	$	953		$	967		$	984		$	985		$	983			3	%		—
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Written Price Increases/(Decreases)
Automobile		—			—			—			—			3	%		3	%		3	%
Homeowners		8	%		6	%		5	%		3	%		3	%		(5	%)		—
Premium Retention
Automobile		89	%		88	%		88	%		87	%		88	%		(1	%)		1	%
Homeowners		100	%		97	%		94	%		93	%		88	%		(12	%)		(5	%)
New Business Premium $
Automobile	$	117		$	115		$	108		$	84		$	84			(28	%)		—
Homeowners	$	37		$	39		$	36		$	28		$	24			(35	%)		(14	%)
Policies in force
Automobile		2,313,512			2,342,883			2,359,246			2,349,402			2,339,871			1	%		—
Homeowners		1,458,485			1,476,340			1,484,157			1,481,542			1,477,335			1	%		—

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

PC-7

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	740		$	694		$	664		$	649		$	743			—			14	%
Change in unearned premium reserve		59			10			(19	)		(39	)		56			(5	%)	NM
Earned premiums		681			684			683			688			687			1	%		—
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		397			399			406			392			370			(7	%)		(6	%)
Current accident year catastrophes		7			12			6			3			9			29	%	NM
Prior accident years [2]		(5	)		(27	)		(47	)		(130	)		(2	)		60	%		98	%
Total losses and loss adjustment expenses		399			384			365			265			377			(6	%)		42	%
Underwriting expenses [3]		197			197			197			208			190			(4	%)		(9	%)
Dividends to policyholders [4]		1			2			2			11			1			—			(91	%)
Underwriting results	$	84		$	101		$	119		$	204		$	119			42	%		(42	%)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		58.3			58.4			59.4			56.9			53.8			4.5			3.1
Current accident year catastrophes		1.0			1.8			0.8			0.4			1.3			(0.3	)		(0.9	)
Prior accident years [2] [5]		(0.8	)		(3.9	)		(6.9	)		(18.8	)		(0.3	)		(0.5	)		(18.5	)
Total losses and loss adjustment expenses		58.5			56.3			53.3			38.6			54.8			3.7			(16.2	)
Expenses		28.9			28.8			28.8			30.2			27.7			1.2			2.5
Policyholder dividends		0.2			0.2			0.3			1.6			0.2			—			1.4
Combined ratio		87.6			85.4			82.4			70.4			82.7			4.9			(12.3	)
Catastrophes
Current year		1.0			1.8			0.8			0.4			1.3			(0.3	)		(0.9	)
Prior year		0.3			0.1			0.1			—			—			0.3			—
Catastrophe ratio		1.3			1.9			1.0			0.5			1.3			—			(0.8	)
Combined ratio before catastrophes		86.3			83.4			81.5			69.9			81.3			5.0			(11.4	)
Combined ratio before catastrophes and prior year development [5]		87.4			87.5			88.5			88.8			81.7			5.7			7.1
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Written Price Increases/(Decreases)		(1	%)		(1	%)		(1	%)		(3	%)		(2	%)		(1	%)		1	%
Premium Retention		85	%		84	%		84	%		83	%		83	%		(2	%)		—
New Business Premium $	$	129		$	126		$	116		$	110		$	127			(2	%)		15	%
Policies in force		1,005,879			1,020,262			1,031,855			1,038,542			1,048,057			4	%		1	%

[1]	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 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 three months ended March 31, 2007 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[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-8

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	557		$	536		$	573		$	591		$	548			(2	%)		(7	%)
Change in unearned premium reserve		(48	)		(56	)		(9	)		19			(28	)		42	%	NM
Earned premiums		605			592			582			572			576			(5	%)		1	%
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		380			381			384			378			372			(2	%)		(2	%)
Current accident year catastrophes		5			5			(1	)		6			9			80	%		50	%
Prior accident years [2]		18			(2	)		11			(41	)		(16	)	NM				61	%
Total losses and loss adjustment expenses		403			384			394			343			365			(9	%)		6	%
Underwriting expenses [3]		167			168			165			169			158			(5	%)		(7	%)
Dividends to policyholders		2			6			1			5			2			—			(60	%)
Underwriting results	$	33		$	34		$	22		$	55		$	51			55	%		(7	%)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		62.9			64.2			66.1			66.1			64.5			(1.6	)		1.6
Current accident year catastrophes		0.7			0.9			—			1.0			1.6			(0.9	)		(0.6	)
Prior accident years [2] [4]		3.1			(0.5	)		1.8			(7.1	)		(2.7	)		5.8			(4.4	)
Total losses and loss adjustment expenses		66.8			64.6			67.9			59.9			63.4			3.4			(3.5	)
Expenses		27.6			28.5			28.2			29.6			27.5			0.1			2.1
Policyholder dividends		0.2			1.1			0.3			0.8			0.3			(0.1	)		0.5
Combined ratio		94.6			94.1			96.3			90.3			91.2			3.4			(0.9	)
Catastrophes
Current year		0.7			0.9			—			1.0			1.6			(0.9	)		(0.6	)
Prior year		(0.6	)		(0.2	)		(0.3	)		0.5			0.3			(0.9	)		0.2
Catastrophe ratio		0.1			0.8			(0.3	)		1.5			1.9			(1.8	)		(0.4	)
Combined ratio before catastrophes		94.5			93.4			96.6			88.8			89.3			5.2			(0.5	)
Combined ratio before catastrophes and prior year development [4]		90.7			93.7			94.5			96.4			92.3			(1.6	)		4.1
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Written Price Increases/(Decreases)		(5	%)		(4	%)		(3	%)		(6	%)		(6	%)		(1	%)		—
Premium Retention		78	%		76	%		77	%		79	%		80	%		2	%		1	%
New Business Premium $	$	106		$	97		$	93		$	94		$	104			(2	%)		11	%
Policies in force		79,244			79,539			79,813			80,377			81,482			3	%		1	%

[1]	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 three months ended March 31, 2007 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[4]	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
SPECIALTY COMMERCIAL
UNDERWRITING RESULTS

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	386		$	405		$	356		$	337		$	357			(8	%)		6	%
Change in unearned premium reserve		2			27			(21	)		(39	)		(10	)	NM				74	%
Earned premiums		384			378			377			376			367			(4	%)		(2	%)
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		255			256			246			242			248			(3	%)		2	%
Current accident year catastrophes		(1	)		3			1			6			2		NM				(67	%)
Prior accident years [2]		(13	)		13			18			64			(25	)		(92	%)	NM
Total losses and loss adjustment expenses		241			272			265			312			225			(7	%)		(28	%)
Underwriting expenses		96			106			104			111			97			1	%		(13	%)
Dividends to policyholders [3]		1			2			2			8			2			100	%		(75	%)
Underwriting results	$	46		$	(2	)	$	6		$	(55	)	$	43			(7	%)	NM
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]		65.7			68.0			65.5			64.9			67.9			(2.2	)		(3.0	)
Current accident year catastrophes		0.1			0.6			0.2			1.5			0.3			(0.2	)		1.2
Prior accident years [2] [4]		(3.6	)		3.8			5.0			16.6			(7.0	)		3.4			23.6
Total losses and loss adjustment expenses		62.2			72.4			70.7			83.0			61.2			1.0			21.8
Expenses		25.2			27.8			27.7			29.4			26.4			(1.2	)		3.0
Policyholder dividends		0.4			0.4			0.3			2.3			0.5			(0.1	)		1.8
Combined ratio		87.8			100.6			98.6			114.7			88.0			(0.2	)		26.7
Catastrophes
Current year		0.1			0.6			0.2			1.5			0.3			(0.2	)		1.2
Prior year		(1.1	)		—			1.2			0.1			(1.8	)		0.7			1.9
Catastrophe ratio		(1.0	)		0.6			1.4			1.6			(1.5	)		0.5			3.1
Combined ratio before catastrophes		88.8			100.0			97.2			113.1			89.6			(0.8	)		23.5
Combined ratio before catastrophes and prior year development [4]		91.4			96.3			93.5			96.6			94.7			(3.3	)		1.9

[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 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-10

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

											Year Over
	THREE MONTHS ENDED										Year			Sequential
	Mar. 31,		Jun. 30,		Sept. 30,		Dec. 31,		Mar. 31,		3 Month			3 Month
	2007		2007		2007		2007		2008		Change			Change
WRITTEN PREMIUMS [1]
Property	$	41	$	59	$	44	$	36	$	24		(41	%)		(33	%)
Casualty		165		147		119		103		159		(4	%)		54	%
Professional Liability, Fidelity and Surety		159		178		173		179		152		(4	%)		(15	%)
Other		21		21		20		19		22		5	%		16	%
Total	$	386	$	405	$	356	$	337	$	357		(8	%)		6	%
EARNED PREMIUMS [1]
Property	$	52	$	49	$	52	$	49	$	44		(15	%)		(10	%)
Casualty		141		138		130		134		132		(6	%)		(1	%)
Professional Liability, Fidelity and Surety		170		168		176		171		170		—			(1	%)
Other		21		23		19		22		21		—			(5	%)
Total	$	384	$	378	$	377	$	376	$	367		(4	%)		(2	%)

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

PC-11

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
UNDERWRITING RESULTS
Written premiums	$	—		$	1		$	2		$	2		$	2			—			—
Change in unearned premium reserve		—			—			—			—			1			—			—
Earned premiums		—			1			2			2			1			—			(50	%)
Losses and loss adjustment expenses
Current accident year before catastrophes		—			—			—			—			—			—			—
Current accident year catastrophes		—			—			—			—			—			—			—
Prior accident years [1]		18			116			39			20			15			(17	%)		(25	%)
Total losses and loss adjustment expenses		18			116			39			20			15			(17	%)		(25	%)
Underwriting expenses		6			5			6			5			5			(17	%)		—
Underwriting results	$	(24	)	$	(120	)	$	(43	)	$	(23	)	$	(19	)		21	%		17	%
Net investment income		62			61			61			64			55			(11	%)		(14	%)
Other expenses		—			(2	)		(1	)		2			(2	)		—		NM
Income tax (expense) benefit		(10	)		25			(3	)		(11	)		(8	)		20	%		27	%
Core earnings		28			(36	)		14			32			26			(7	%)		(19	%)
Add: Net realized capital gains (losses), after-tax		4			(4	)		(2	)		(6	)		(12	)	NM				(100	%)
Net income (loss)	$	32		$	(40	)	$	12		$	26		$	14			(56	%)		(46	%)

[1] 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-12

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

For the Three Months Ended March 31, 2008	Asbestos			Environmental			All Other [1]			Total
Beginning liability — net [2] [3]	$	1,998	[4]	$	251		$	1,888		$	4,137
Losses and loss adjustment expenses incurred		2			—			13			15
Losses and loss adjustment expenses paid		(51	)		(7	)		(27	)		(85	)
Ending liability — net [2] [3]	$	1,949	[4]	$	244		$	1,874		$	4,067

[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 $5, respectively, as of March 31, 2008 and $9 and $6, respectively, as of December 31, 2007. Total net losses and loss adjustment expenses incurred in Ongoing Operations for the three months ended March 31, 2008 includes $1 related to asbestos and environmental claims. Total net losses and loss adjustment expenses paid in Ongoing Operations for the three months ended March 31, 2008 includes $2 related to asbestos and environmental claims.
[3]	Gross of reinsurance, asbestos and environmental reserves, including liabilities in Ongoing Operations, were $2,654 and $278, respectively, as of March 31, 2008, and $2,707 and $290, respectively, as of December 31, 2007.
[4]	The one year and average three year net paid amounts for asbestos claims, including Ongoing Operations, are $271 and $277, respectively, resulting in a one year net survival ratio of 7.2 and a three year net survival ratio of 7.1. 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-13

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 March 31, 2008	Losses & LAE			Losses & LAE		Losses & LAE			Losses & LAE
Gross
Direct	$	35		$	2	$	8		$	—
Assumed — Domestic		15			—		3			—
London Market		3			—		1			—
Total		53			2		12			—
Ceded		(2	)		—		(5	)		—
Net	$	51		$	2	$	7		$	—

[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 months ended March 31, 2008 includes $1 related to asbestos and environmental claims. Total gross loss and LAE paid in Ongoing Operations for the three months ended March 31, 2008 includes $3 related to asbestos and environmental claims.

PC-14

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

	For the Three Months Ended March 31, 2008
	Personal			Small			Middle			Specialty			Ongoing			Other			Total
	Lines			Commercial			Market			Commercial			Operations			Operations			P&C
Liabilities for unpaid losses and loss adjustment expenses at 1/1/08 - gross	$	2,042		$	3,470		$	4,687		$	6,883		$	17,082		$	5,071		$	22,153
Reinsurance and other recoverables		81			177			413			2,317			2,988			934			3,922
Liabilities for unpaid losses and loss adjustment expenses at 1/1/08 - net		1,961			3,293			4,274			4,566			14,094			4,137			18,231
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes		635			370			372			248			1,625			—			1,625
Current accident year catastrophes		30			9			9			2			50			—			50
Prior accident years		(8	)		(2	)		(16	)		(25	)		(51	)		15			(36	)
Total provision for unpaid losses and loss adjustment expenses		657			377			365			225			1,624			15			1,639
Payments		(660	)		(338	)		(318	)		(145	)		(1,461	)		(85	)		(1,546	)
Liabilities for unpaid losses and loss adjustment expenses at 3/31/08 - net		1,958			3,332			4,321			4,646			14,257			4,067			18,324
Reinsurance and other recoverables		65			181			414			2,255			2,915			911			3,826
Liabilities for unpaid losses and loss adjustment expenses at 3/31/08 - gross	$	2,023		$	3,513		$	4,735		$	6,901		$	17,172		$	4,978		$	22,150
Earned premiums	$	983		$	687		$	576		$	367		$	2,613		$	1		$	2,614
Loss and loss expense paid ratio		67.2			49.1			55.1			39.4			55.9
Loss and loss expense incurred ratio		66.9			54.8			63.4			61.2			62.2
Prior accident year development (pts.)		(0.8	)		(0.3	)		(2.7	)		(7.0	)		(2.0	)

PC-15

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

	March 31,			December 31,
	2008			2007
Gross Reinsurance Recoverables
Paid Loss and Loss Adjustment Expenses	$	311		$	347
Unpaid Loss and Loss Adjustment Expenses		3,710			3,788
Subtotal Gross Reinsurance Recoverables		4,021			4,135
Less: Allowance for Uncollectible Reinsurance		(410	)		(404	)
Net Reinsurance Recoverables	$	3,611		$	3,731

	As of December 31, 2007
	Amount			% of Total
Distribution of Gross Reinsurance Recoverables
Gross Reinsurance Recoverables	$	4,135
Less: Mandatory (Assigned Risk) Pools & Structured Settlements		(635	)
Gross Reinsurance Recoverables Excluding Mandatory Pools & Structured Settlements	$	3,500
Rated A- (Excellent) or better by A.M. Best [1]	$	2,614			74.7	%
Other Rated by A.M. Best		90			2.6	%
Total Rated Companies		2,704			77.3	%
Voluntary Pools		195			5.6	%
Captives		231			6.6	%
Other Not Rated Companies		370			10.5	%
Total	$	3,500			100.0	%

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

PC-16

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Earned premiums	$	2,623		$	2,622		$	2,628		$	2,623		$	2,614			—			—
Net investment income [1]		413			446			407			421			365			(12	%)		(13	%)
Other revenues		118			124			126			128			120			2	%		(6	%)
Net realized capital gains (losses)		23			(24	)		(75	)		(96	)		(152	)	NM				(58	%)
Total revenues		3,177			3,168			3,086			3,076			2,947			(7	%)		(4	%)
Losses and loss adjustment expenses [2]		1,675			1,820			1,755			1,667			1,639			(2	%)		(2	%)
Amortization of deferred policy acquisition costs		528			528			525			523			523			(1	%)		—
Insurance operating costs and expenses [3] [4]		151			177			166			222			153			1	%		(31	%)
Other expenses		167			168			174			184			180			8	%		(2	%)
Total benefits and expenses		2,521			2,693			2,620			2,596			2,495			(1	%)		(4	%)
Income before income taxes		656			475			466			480			452			(31	%)		(6	%)
Income tax expense		195			131			113			131			126			(35	%)		(4	%)
Net income		461			344			353			349			326			(29	%)		(7	%)
Less: Net realized capital gains (losses), after-tax [5]		13			(18	)		(52	)		(65	)		(100	)	NM				(54	%)
Core earnings	$	448		$	362		$	405		$	414		$	426			(5	%)		3	%
Total Property & Casualty effective tax rate — net income		29.7	%		27.6	%		24.2	%		27.4	%		27.9	%		(1.8	)		0.5
Total Property & Casualty effective tax rate — core earnings		29.5	%		27.9	%		25.8	%		28.7	%		29.7	%		0.2			1.0

[1]	The decrease in net investment income for the three months ended March 31, 2008 was primarily driven by losses on limited partnerships and other alternative investments, largely due to lower returns on hedge funds and real estate partnerships as a result of the lack of liquidity in the financial markets.
[2]	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 Commercial 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.
[3]	The three months ended March 31, 2007 included Citizens’ assessment recoupments of $4. The three months ended June 30, 2007, September 30, 2007 and March 31, 2008 included Citizens’ assessment recoupments of $1. These assessments related to 2004 and 2005 hurricanes.
[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]	Includes those net realized capital gains (losses) not included in core earnings.

PC-17

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

	AS OF												Year Over
	Mar. 31,		Jun. 30,		Sept. 30,		Dec. 31,			Mar. 31,			Year			Sequential
	2007		2007		2007		2007			2008			Change			Change
Investments
Fixed maturities, available for sale, at fair value	$	26,808	$	27,182	$	27,247	$	27,205		$	25,683			(4	%)		(6	%)
Equity securities, available for sale, at fair value		861		947		1,071		1,208			1,162			35	%		(4	%)
Mortgage loans		506		655		685		671			682			35	%		2	%
Other investments		938		1,132		1,217		1,298			1,348			44	%		4	%
Short term investments		330		286		170		284			711			115	%		150	%
Total investments		29,443		30,202		30,390		30,666			29,586			—			(4	%)
Cash		229		190		183		241			232			1	%		(4	%)
Premiums receivable and agents’ balances		3,312		3,436		3,363		3,254			3,281			(1	%)		1	%
Reinsurance recoverables		4,373		3,966		3,928		3,731			3,611			(17	%)		(3	%)
Deferred policy acquisition costs		1,201		1,212		1,223		1,228			1,233			3	%		—
Deferred income tax		520		686		633		662			947			82	%		43	%
Goodwill		149		149		149		149			149			—			—
Property and equipment, net		558		552		569		598			601			8	%		1	%
Other assets		1,475		1,403		1,462		1,312			1,318			(11	%)		—
Total assets	$	41,260	$	41,796	$	41,900	$	41,841		$	40,958			(1	%)		(2	%)
Unpaid losses and loss adjustment expenses	$	21,987	$	21,990	$	22,197	$	22,153		$	22,150			1	%		—
Unearned premiums		5,537		5,576		5,540		5,402			5,388			(3	%)		—
Debt		—		—		—		13			11			—			(15	%)
Other liabilities		4,623		4,870		4,883		4,855			4,589			(1	%)		(5	%)
Total liabilities		32,147		32,436		32,620		32,423			32,138			—			(1	%)
Equity, x-AOCI, net of tax		8,781		9,323		9,214		9,428			9,372			7	%		(1	%)
AOCI, net of tax		332		37		66		(10	)		(552	)	NM			NM
Total stockholders’ equity		9,113		9,360		9,280		9,418			8,820			(3	%)		(6	%)
Total liabilities and stockholders’ equity	$	41,260	$	41,796	$	41,900	$	41,841		$	40,958			(1	%)		(2	%)
Hartford Fire NAIC RBC								606	%

PC-18

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

	Dec. 31, 2007			Dec. 31, 2006
Adjusted Statutory Capital and Surplus	$	8,509		$	8,230
GAAP Adjustments
Deferred policy acquisition costs		1,228			1,197
Deferred taxes		(304	)		(320	)
Benefit reserves		(100	)		(107	)
Unrealized gains on investments		(16	)		418
Goodwill		149			149
Non-admitted assets		1,085			939
Other, net		(1,133	)		(321	)
GAAP Stockholders’ Equity	$	9,418		$	10,185

PC-19

INVESTMENTS

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	1,002		$	1,004		$	1,048		$	1,051		$	992			(1	%)		(6	%)
Tax-exempt		133			137			137			141			142			7	%		1	%
Total fixed maturities		1,135			1,141			1,185			1,192			1,134			—			(5	%)
Equities
Available-for-sale		28			34			36			41			46			64	%		12	%
Held for trading		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Total equities		238			1,268			(662	)		(560	)		(3,532	)	NM			NM
Mortgage loans		57			76			79			81			79			39	%		(2	%)
Policy loans		36			34			32			33			33			(8	%)		—
Limited partnerships and other alternative investments [2]		66			107			42			40			(36	)	NM			NM
Other [3]		(27	)		(30	)		(51	)		(53	)		(44	)		(63	%)		17	%
Subtotal		1,505			2,596			625			733			(2,366	)	NM			NM
Less: Investment expense		22			26			25			27			19			(14	%)		(30	%)
Total net investment income (loss)	$	1,483		$	2,570		$	600		$	706		$	(2,385	)	NM			NM
Less: Securities held for trading		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Total net investment income excluding trading securities	$	1,273		$	1,336		$	1,298		$	1,307		$	1,193			(6	%)		(9	%)
Annualized investment yield, before-tax [4]		5.9	%		6.1	%		5.8	%		5.8	%		5.2	%		(0.7	)		(0.6	)
Annualized investment yield, after-tax [4]		4.1	%		4.2	%		4.0	%		4.0	%		3.6	%		(0.5	)		(0.4	)
Net Realized Capital Gains (Losses)
Gross gains on sale	$	124		$	74		$	56		$	120		$	95			(23	%)		(21	%)
Gross losses on sale		(66	)		(88	)		(81	)		(56	)		(211	)	NM			NM
Impairments
Credit related [5]		(12	)		(10	)		(42	)		(240	)		(268	)	NM				(12	%)
Other [6]		(3	)		(30	)		(68	)		(78	)		(36	)	NM				54	%
Total impairments		(15	)		(40	)		(110	)		(318	)		(304	)	NM				4	%
Japanese fixed annuity contract hedges, net [7]		5			(17	)		15			15			(14	)	NM			NM
Periodic net coupon settlements on credit derivatives/Japan [8]		(9	)		(10	)		(4	)		(2	)		(5	)		44	%		(150	%)
SFAS 157 transition impact [9]		—			—			—			—			(650	)		—			—
GMWB derivatives, net [10]		22			(133	)		(141	)		(34	)		(110	)	NM			NM
Other net gain (loss) [11]		(15	)		(34	)		(98	)		(154	)		(172	)	NM				(12	%)
Total net realized capital gains (losses)	$	46		$	(248	)	$	(363	)	$	(429	)	$	(1,371	)	NM			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]	Relates to impairments for which the Company has current concerns regarding the issuers ability to pay future interest and principal amounts based upon the securities contractual terms or the depression in security value is primarily related to significant issuer specific or sector credit spread widening.
[6]	Primarily relates to impairments of securities that had declined in value primarily due to changes in interest rate or general or modest spread widening and for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow recovery to cost or amortized cost.
[7]	Relates to the Japanese fixed annuity product (product and related derivative hedging instruments excluding periodic net coupon settlements).
[8]	Included in core earnings.
[9]	Includes SFAS 157 implementation losses of $616, $10 and $24 related to the embedded derivatives within GMWB-US, GMWB-UK and GMAB liabilities, respectively.
[10]	The net losses in 2008 on GMWB rider embedded derivatives were primarily due to unfavorable mortality assumptions updates. 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.
[11]	Primarily consists of changes in fair value on non-qualifying derivatives, hedge ineffectiveness on qualifying derivative instruments and other investment gains and losses.

I-1

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	727		$	731		$	762		$	769		$	723			(1	%)		(6	%)
Tax-exempt		30			31			32			32			32			7	%		—
Total fixed maturities		757			762			794			801			755			—			(6	%)
Equities
Available-for-sale		18			22			23			23			25			39	%		9	%
Held for trading		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Total equities		228			1,256			(675	)		(578	)		(3,553	)	NM			NM
Mortgage loans		50			66			68			71			69			38	%		(3	%)
Policy loans		36			34			32			33			33			(8	%)		—
Limited partnerships and other alternative investments [2]		32			46			23			14			(17	)	NM			NM
Other [3]		(24	)		(27	)		(39	)		(43	)		(32	)		(33	%)		26	%
Subtotal		1,079			2,137			203			298			(2,745	)	NM			NM
Less: Investment expense		17			19			18			21			14			(18	%)		(33	%)
Total net investment income (loss)	$	1,062		$	2,118		$	185		$	277		$	(2,759	)	NM			NM
Less: Securities held for trading		210			1,234			(698	)		(601	)		(3,578	)	NM			NM
Total net investment income excluding trading securities	$	852		$	884		$	883		$	878		$	819			(4	%)		(7	%)
Annualized investment yield, before-tax [4]		6.0	%		6.1	%		6.0	%		5.8	%		5.3	%		(0.7	)		(0.5	)
Annualized investment yield, after-tax [4]		4.0	%		4.0	%		4.0	%		3.9	%		3.5	%		(0.5	)		(0.4	)
Net Realized Capital Gains (Losses)
Gross gains on sale	$	72		$	36		$	25		$	80		$	43			(40	%)		(46	%)
Gross losses on sale		(40	)		(52	)		(45	)		(31	)		(110	)		(175	%)	NM
Impairments
Credit related [5]		(12	)		—			(31	)		(198	)		(211	)	NM				(7	%)
Other [6]		(2	)		(20	)		(44	)		(51	)		(20	)	NM				61	%
Total impairments		(14	)		(20	)		(75	)		(249	)		(231	)	NM				7	%
Japanese fixed annuity contract hedges, net [7]		5			(17	)		15			15			(14	)	NM			NM
Periodic net coupon settlements on credit derivatives/Japan [8]		(12	)		(13	)		(9	)		(6	)		(7	)		42	%		(17	%)
SFAS 157 transition impact [9]														(650	)		—			—
GMWB derivatives, net [10]		22			(133	)		(141	)		(34	)		(110	)	NM			NM
Other net gain (loss) [11]		(10	)		(22	)		(58	)		(108	)		(141	)	NM				(31	%)
Total net realized capital gains (losses)	$	23		$	(221	)	$	(288	)	$	(333	)	$	(1,220	)	NM			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]	Relates to impairments for which the Company has current concerns regarding the issuers ability to pay future interest and principal amounts based upon the securities contractual terms or the depression in security value is primarily related to significant issuer specific or sector credit spread widening.
[6]	Primarily relates to impairments of securities that had declined in value primarily due to changes in interest rate or general or modest spread widening and for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow recovery to cost or amortized cost.
[7]	Relates to the Japanese fixed annuity product (product and related derivative hedging instruments excluding periodic net coupon settlements).
[8]	Included in core earnings.
[9]	Includes SFAS 157 implementation losses of $616, $10 and $24 related to the embedded derivatives within GMWB-US, GMWB-UK and GMAB liabilities, respectively.
[10]	The net losses in 2008 on GMWB rider embedded derivatives were primarily due to unfavorable mortality assumptions updates. 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.
[11]	Primarily consists of changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments.

I-2

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

																Year Over
	THREE MONTHS ENDED															Year			Sequential
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007			2007			2007			2007			2008			Change			Change
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	267		$	267		$	278		$	276		$	261			(2	%)		(5	%)
Tax-exempt		103			106			105			109			110			7	%		1	%
Total fixed maturities		370			373			383			385			371			—			(4	%)
Equities — available-for-sale		10			12			12			16			20			100	%		25	%
Mortgage loans		7			10			11			10			10			43	%		—
Limited partnerships and other alternative investments [2]		34			61			19			26			(19	)	NM			NM
Other [3]		(3	)		(3	)		(11	)		(10	)		(12	)	NM				(20	%)
Subtotal		418			453			414			427			370			(11	%)		(13	%)
Less: Investment expense		5			7			7			6			5			—			(17	%)
Total net investment income (loss)	$	413		$	446		$	407		$	421		$	365			(12	%)		(13	%)
Annualized investment yield, before-tax [4]		5.9	%		6.3	%		5.6	%		5.8	%		5.0	%		(0.9	)		(0.8	)
Annualized investment yield, after-tax [4]		4.4	%		4.7	%		4.1	%		4.3	%		3.7	%		(0.7	)		(0.6	)
Net Realized Capital Gains (Losses)
Gross gains on sale	$	52		$	38		$	31		$	38		$	52			—			37	%
Gross losses on sale		(26	)		(36	)		(36	)		(23	)		(100	)	NM			NM
Impairments
Credit related [5]		—			(10	)		(11	)		(42	)		(57	)		—			(36	%)
Other [6]		(1	)		(10	)		(24	)		(27	)		(16	)	NM				41	%
Total impairments		(1	)		(20	)		(35	)		(69	)		(73	)	NM				(6	%)
Periodic net coupon settlements on credit derivatives [7]		3			3			5			4			2			(33	%)		(50	%)
Other net gain (loss) [8]		(5	)		(9	)		(40	)		(46	)		(33	)	NM				28	%
Total net realized capital gains (losses)	$	23		$	(24	)	$	(75	)	$	(96	)	$	(152	)	NM				(58	%)

[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 collateral received associated with the securities lending program.
[5]	Relates to impairments for which the Company has current concerns regarding the issuers ability to pay future interest and principal amounts based upon the securities contractual terms or the depression in security value is primarily related to significant issuer specific or sector credit spread widening.
[6]	Primarily relates to impairments of securities that had declined in value primarily due to changes in interest rate or general or modest spread widening and for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow recovery to cost or amortized cost.
[7]	Included in core earnings.
[8]	Primarily consists of changes in fair value on non-qualifying derivatives, hedge ineffectiveness on qualifying derivative instruments and other investment gains.

I-3

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

															Year Over
	THREE MONTHS ENDED														Year			Sequential
	Mar. 31,		Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			3 Month			3 Month
	2007		2007			2007			2007			2008			Change			Change
Net Investment Income
Fixed maturities [1]
Taxable	$	8	$	6		$	8		$	6		$	8			—			33	%
Total fixed maturities		8		6			8			6			8			—			33	%
Equities — available-for-sale		—		—			1			2			1			—			(50	%)
Other		—		—			(1	)		—			—			—			—
Total net investment income	$	8	$	6		$	8		$	8		$	9			13	%		13	%
Net Realized Capital Gains (Losses)
Gross gains on sale		—		—			—			2			—			—			(100	%)
Gross losses on sale		—		—			—			(2	)		(1	)		—			50	%
Other net gain (loss) [2]		—		(3	)		—			—			2			—			—
Total net realized capital gains (losses)	$	—	$	(3	)	$	—		$	—		$	1			—			—

[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.
NET REALIZED CAPITAL GAINS (LOSSES), AFTER-TAX/DAC
THREE MONTHS ENDED MARCH 31, 2008 AND 2007

	Life									P&C									Corporate							Consolidated
	2007			2008			Change			2007			2008			Change			2007		2008			Change		2007			2008			Change
Gains/losses on sales, net		20			(44	)	NM				17			(31	)	NM				—		(1	)		—		37			(76	)	NM
Impairments
Credit related [1]		(7	)		(133	)	NM				—			(37	)		—			—		—			—		(7	)		(170	)	NM
Other [2]		(1	)		(11	)	NM				(1	)		(10	)	NM				—		—			—		(2	)		(21	)	NM
Total impairments		(8	)		(144	)	NM				(1	)		(47	)	NM				—		—			—		(9	)		(191	)	NM
Japanese fixed annuity contract hedges, net [3]		3			(9	)	NM				—			—			—			—		—			—		3			(9	)	NM
Periodic net coupon settlements on credit derivatives/Japan [4]		(8	)		(5	)		38	%		2			1			(50	%)		—		—			—		(6	)		(4	)		33	%
SFAS 157 transition impact [5]		—			(220	)		—									—								—		—			(220	)		—
GMWB derivatives, net [6]		11			(41	)	NM				—			—			—			—		—			—		11			(41	)	NM
Other net gain (loss) [7]		(3	)		(87	)	NM				(3	)		(22	)	NM				—		2			—		(6	)		(107	)	NM
Total net realized capital gains (losses)	$	15		$	(550	)	NM			$	15		$	(99	)	NM			$	—	$	1			—	$	30		$	(648	)	NM

[1]	Relates to impairments for which the Company has current concerns regarding the issuers ability to pay future interest and principal amounts based upon the securities contractual terms or the depression in security value is primarily related to significant issuer specific or sector credit spread widening.
[2]	Primarily relates to impairments of securities that had declined in value primarily due to changes in interest rate or general or modest spread widening and for which the Company was uncertain of its intent to retain the investment for a period of time sufficient to allow recovery to cost or amortized cost.
[3]	Relates to the Japanese fixed annuity product (product and related derivative hedging instruments excluding periodic net coupon settlements).
[4]	Included in core earnings.
[5]	Includes SFAS 157 implementation losses related to the embedded derivatives within GMWB-US, GMWB-UK and GMAB liabilities, respectively.
[6]	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.
[7]	Primarily consists of changes in fair value on non-qualifying derivatives and hedge ineffectiveness on qualifying derivative instruments.

I-5

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

	March 31,					June 30,					September 30,					December 31,					March 31,
	2007					2007					2007					2007					2008
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value [1]	$	79,645		64.8	%	$	80,046		63.9	%	$	80,960		62.7	%	$	80,055		61.1	%	$	76,611		58.3	%
Equity securities, at fair value
Available-for-sale [2]		2,212		1.8	%		2,390		1.9	%		2,449		1.9	%		2,595		2.0	%		2,463		1.9	%
Held for trading [3]		30,805		25.1	%		31,843		25.4	%		34,901		27.0	%		36,182		27.6	%		37,406		28.4	%
Total equity securities, at fair value		33,017		26.9	%		34,233		27.3	%		37,350		28.9	%		38,777		29.6	%		39,869		30.3	%
Policy loans, at outstanding balance		2,099		1.7	%		2,052		1.6	%		2,050		1.6	%		2,061		1.5	%		2,118		1.6	%
Mortgage loans, at cost		4,015		3.3	%		4,891		3.9	%		5,236		4.0	%		5,410		4.1	%		5,503		4.2	%
Limited partnerships and other alternative investments [4]		1,883		1.5	%		2,144		1.7	%		2,317		1.8	%		2,566		2.0	%		2,619		2.0	%
Short-term [5]		1,921		1.5	%		1,590		1.3	%		858		0.7	%		1,602		1.2	%		3,568		2.7	%
Other investments [6]		363		0.3	%		321		0.3	%		363		0.3	%		615		0.5	%		1,187		0.9	%
Total investments	$	122,943		100.0	%	$	125,277		100.0	%	$	129,134		100.0	%	$	131,086		100.0	%	$	131,475		100.0	%
Less: Equity securities held for trading		30,805		25.1	%		31,843		25.4	%		34,901		27.0	%		36,182		27.6	%		37,406		28.4	%
Total investments excluding trading securities	$	92,138		74.9	%	$	93,434		74.6	%	$	94,233		73.0	%	$	94,904		72.4	%	$	94,069		71.6	%
HIMCO managed third party accounts	$	7,654				$	8,343				$	8,430				$	10,872				$	9,705
Asset-backed securities (“ABS”)	$	8,754		11.0	%	$	9,411		11.8	%	$	9,294		11.5	%	$	8,915		11.1	%	$	8,374		10.9	%
Commercial mortgage-backed securities (“CMBS”)		17,230		21.6	%		17,899		22.4	%		18,133		22.4	%		17,031		21.3	%		15,056		19.6	%
Collateralized mortgage obligation (“CMO”)		1,231		1.5	%		1,514		1.9	%		1,778		2.2	%		1,745		2.2	%		1,534		2.0	%
Corporate		34,736		43.6	%		33,405		41.7	%		34,153		42.2	%		34,198		42.7	%		34,027		44.4	%
Government/Government agencies — Foreign		1,272		1.6	%		1,013		1.3	%		1,039		1.3	%		1,053		1.3	%		1,048		1.4	%
Government/Government agencies — U.S.		1,055		1.3	%		1,153		1.4	%		950		1.2	%		855		1.1	%		1,350		1.8	%
Mortgage-backed securities (“MBS”) — agency		2,509		3.2	%		3,073		3.8	%		2,776		3.4	%		2,763		3.5	%		2,290		3.0	%
Municipal — taxable		1,345		1.7	%		1,310		1.6	%		1,302		1.6	%		1,386		1.7	%		1,374		1.8	%
Municipal — tax-exempt		11,466		14.4	%		11,259		14.1	%		11,528		14.2	%		12,103		15.1	%		11,558		15.1	%
Redeemable preferred stock		47		0.1	%		9		—			7		—			6		—			—		—
Total fixed maturities [1]	$	79,645		100.0	%	$	80,046		100.0	%	$	80,960		100.0	%	$	80,055		100.0	%	$	76,611		100.0	%
AAA	$	25,500		32.0	%	$	27,177		34.0	%	$	28,781		35.6	%	$	28,318		35.4	%	$	24,418		31.9	%
AA		10,911		13.7	%		11,124		13.9	%		11,266		13.9	%		10,999		13.7	%		10,932		14.3	%
A		17,175		21.6	%		16,507		20.6	%		16,498		20.4	%		17,030		21.3	%		17,325		22.6	%
BBB		17,023		21.4	%		15,684		19.6	%		15,501		19.1	%		14,974		18.7	%		15,319		20.0	%
U.S. Government/Government agencies		5,406		6.8	%		6,174		7.7	%		5,383		6.6	%		5,229		6.5	%		5,071		6.6	%
BB & below		3,630		4.5	%		3,380		4.2	%		3,531		4.4	%		3,505		4.4	%		3,546		4.6	%
Total fixed maturities [1]	$	79,645		100.0	%	$	80,046		100.0	%	$	80,960		100.0	%	$	80,055		100.0	%	$	76,611		100.0	%

[1]	Includes $90, $40, $425, $308 and $313 in Corporate at March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, and March 31, 2008, respectively, of which $90, $30, $395, $303, and $208 respectively, were investments held by The Hartford Financial Services Group, Inc.
[2]	Includes $53, $56, $71, $103, and $99 in Corporate at March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, and March 31, 2008, respectively.
[3]	These assets support the International variable annuity business. Changes in these balances are also reflected in the respective liabilities.
[4]	Includes hedge fund investments outside of limited partnerships and real estate joint ventures.
[5]	Includes $396, $346, $59, $160 and $1,050 in Corporate at March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, March 31, 2008, respectively, of which $371, $319, $52, $154, and $1,046 respectively, were investments held by The Hartford Financial Services Group, Inc.
[6]	Primarily relates to derivative instruments. Additionally, includes $45, $43, $38, $43, and $43 in Corporate at March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, and March 31, 2008, respectively.

I-6

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

	March 31,					June 30,					September 30,					December 31,					March 31,
	2007					2007					2007					2007					2008
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	52,747		56.7	%	$	52,824		55.8	%	$	53,288		54.3	%	$	52,542		52.6	%	$	50,615		50.4	%
Equity securities, at fair value
Available-for-sale		1,298		1.4	%		1,387		1.4	%		1,307		1.3	%		1,284		1.3	%		1,202		1.2	%
Held for trading [1]		30,805		33.2	%		31,843		33.7	%		34,901		35.6	%		36,182		36.2	%		37,406		37.3	%
Total equity securities, at fair value		32,103		34.6	%		33,230		35.1	%		36,208		36.9	%		37,466		37.5	%		38,608		38.5	%
Policy loans, at outstanding balance		2,099		2.3	%		2,052		2.2	%		2,050		2.1	%		2,061		2.1	%		2,118		2.1	%
Mortgage loans, at cost		3,509		3.8	%		4,236		4.5	%		4,551		4.6	%		4,739		4.8	%		4,821		4.8	%
Limited partnerships and other alternative investments [2]		982		1.0	%		1,050		1.1	%		1,138		1.2	%		1,306		1.3	%		1,329		1.3	%
Short-term		1,195		1.3	%		958		1.0	%		629		0.6	%		1,158		1.2	%		1,807		1.8	%
Other investments [3]		281		0.3	%		240		0.3	%		287		0.3	%		534		0.5	%		1,086		1.1	%
Total investments	$	92,916		100.0	%	$	94,590		100.0	%	$	98,151		100.0	%	$	99,806		100.0	%	$	100,384		100.0	%
Less: Equity securities held for trading		30,805		33.2	%		31,843		33.7	%		34,901		35.6	%		36,182		36.2	%		37,406		37.3	%
Total investments excluding trading securities	$	62,111		66.8	%	$	62,747		66.3	%	$	63,250		64.4	%	$	63,624		63.8	%	$	62,978		62.7	%
ABS	$	7,500		14.2	%	$	7,895		14.9	%	$	7,877		14.8	%	$	7,556		14.4	%	$	6,948		13.7	%
CMBS		12,355		23.4	%		12,558		23.8	%		12,815		24.1	%		12,056		22.9	%		10,679		21.1	%
CMO		928		1.8	%		1,147		2.2	%		1,401		2.6	%		1,366		2.6	%		1,215		2.4	%
Corporate		24,996		47.4	%		23,958		45.4	%		24,295		45.6	%		24,583		46.8	%		24,739		48.9	%
Government/Government agencies — Foreign		648		1.2	%		547		1.0	%		577		1.1	%		571		1.1	%		563		1.1	%
Government/Government agencies — U.S.		819		1.6	%		944		1.8	%		733		1.4	%		616		1.2	%		994		2.0	%
MBS — agency		1,759		3.3	%		2,133		4.0	%		1,869		3.5	%		1,913		3.6	%		1,738		3.4	%
Municipal — taxable		1,144		2.2	%		1,115		2.1	%		1,141		2.1	%		1,244		2.4	%		1,219		2.4	%
Municipal — tax-exempt		2,582		4.9	%		2,522		4.8	%		2,577		4.8	%		2,634		5.0	%		2,520		5.0	%
Redeemable preferred stock		16		—			5		—			3		—			3		—			—		—
Total fixed maturities	$	52,747		100.0	%	$	52,824		100.0	%	$	53,288		100.0	%	$	52,542		100.0	%	$	50,615		100.0	%
AAA	$	14,908		28.3	%	$	15,901		30.1	%	$	17,058		32.0	%	$	16,638		31.6	%	$	14,630		28.9	%
AA		6,901		13.1	%		6,997		13.2	%		7,081		13.3	%		6,914		13.2	%		6,404		12.7	%
A		12,423		23.6	%		11,921		22.6	%		12,042		22.6	%		12,335		23.5	%		12,363		24.4	%
BBB		12,627		23.9	%		11,710		22.2	%		11,432		21.5	%		11,070		21.1	%		11,413		22.5	%
U.S. Government/Government agencies		3,870		7.3	%		4,418		8.4	%		3,791		7.1	%		3,668		7.0	%		3,755		7.4	%
BB & below		2,018		3.8	%		1,877		3.5	%		1,884		3.5	%		1,917		3.6	%		2,050		4.1	%
Total fixed maturities	$	52,747		100.0	%	$	52,824		100.0	%	$	53,288		100.0	%	$	52,542		100.0	%	$	50,615		100.0	%

[1]	These assets support the International variable annuity business. Changes in these balances are also reflected in the respective liabilities.
[2]	Includes real estate joint ventures.
[3]	Primarily relates to derivative instruments.

I-7

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

	March 31,					June 30,					September 30,					December 31,					March 31,
	2007					2007					2007					2007					2008
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Fixed maturities, available-for-sale, at fair value	$	26,808		91.1	%	$	27,182		90.0	%	$	27,247		89.6	%	$	27,205		88.8	%	$	25,683		86.8	%
Equity securities, available-for-sale, at fair value		861		2.9	%		947		3.1	%		1,071		3.5	%		1,208		3.9	%		1,162		3.9	%
Mortgage loans, at cost		506		1.7	%		655		2.2	%		685		2.3	%		671		2.2	%		682		2.3	%
Limited partnerships and other alternative investments [1]		901		3.1	%		1,094		3.6	%		1,179		3.9	%		1,260		4.1	%		1,290		4.4	%
Short-term		330		1.1	%		286		1.0	%		170		0.6	%		284		0.9	%		711		2.4	%
Other investments		37		0.1	%		38		0.1	%		38		0.1	%		38		0.1	%		58		0.2	%
Total investments	$	29,443		100.0	%	$	30,202		100.0	%	$	30,390		100.0	%	$	30,666		100.0	%	$	29,586		100.0	%
ABS	$	1,254		4.7	%	$	1,516		5.6	%	$	1,417		5.2	%	$	1,359		5.0	%	$	1,426		5.6	%
CMBS		4,875		18.2	%		5,341		19.6	%		5,318		19.5	%		4,975		18.3	%		4,377		17.0	%
CMO		303		1.1	%		367		1.4	%		377		1.4	%		379		1.4	%		319		1.2	%
Corporate		9,650		36.1	%		9,407		34.6	%		9,433		34.6	%		9,307		34.2	%		8,975		34.9	%
Government/Government agencies — Foreign		624		2.3	%		466		1.7	%		462		1.7	%		482		1.8	%		485		1.9	%
Government/Government agencies — U.S.		236		0.9	%		209		0.8	%		217		0.8	%		239		0.9	%		356		1.4	%
MBS — agency		750		2.8	%		940		3.5	%		907		3.3	%		850		3.1	%		552		2.2	%
Municipal — taxable		201		0.7	%		195		0.7	%		161		0.6	%		142		0.5	%		155		0.6	%
Municipal — tax-exempt		8,884		33.1	%		8,737		32.1	%		8,951		32.9	%		9,469		34.8	%		9,038		35.2	%
Redeemable preferred stock		31		0.1	%		4		—			4		—			3		—			—		—
Total fixed maturities	$	26,808		100.0	%	$	27,182		100.0	%	$	27,247		100.0	%	$	27,205		100.0	%	$	25,683		100.0	%
														��
AAA	$	10,588		39.5	%	$	11,273		41.5	%	$	11,696		42.9	%	$	11,660		42.9	%	$	9,767		38.0	%
AA		3,965		14.8	%		4,106		15.1	%		3,961		14.6	%		3,915		14.4	%		4,354		17.1	%
A		4,715		17.6	%		4,572		16.8	%		4,318		15.8	%		4,586		16.9	%		4,865		18.9	%
BBB		4,392		16.4	%		3,972		14.6	%		4,058		14.9	%		3,895		14.3	%		3,885		15.1	%
U.S. Government/Government agencies		1,536		5.7	%		1,756		6.5	%		1,592		5.8	%		1,561		5.7	%		1,316		5.1	%
BB & below		1,612		6.0	%		1,503		5.5	%		1,622		6.0	%		1,588		5.8	%		1,496		5.8	%
Total fixed maturities	$	26,808		100.0	%	$	27,182		100.0	%	$	27,247		100.0	%	$	27,205		100.0	%	$	25,683		100.0	%

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

I-8

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

	March 31, 2008							December 31, 2007
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS [3] Securities
Three months or less	$	15,755	$	14,968	$	(787	)	$	10,879	$	10,445	$	(434	)
Greater than three months to six months		4,434		3,816		(618	)		11,857		10,954		(903	)
Greater than six months to nine months		10,479		8,735		(1,744	)		10,086		9,354		(732	)
Greater than nine months to twelve months		8,466		7,158		(1,308	)		2,756		2,545		(211	)
Greater than twelve months		9,433		8,378		(1,055	)		10,563		10,071		(492	)
Total	$	48,567	$	43,055	$	(5,512	)	$	46,141	$	43,369	$	(2,772	)
BIG [4] and Equity AFS [3] Securities
Three months or less	$	1,742	$	1,550	$	(192	)	$	1,487	$	1,386	$	(101	)
Greater than three months to six months		902		767		(135	)		1,181		1,026		(155	)
Greater than six months to nine months		914		701		(213	)		687		613		(74	)
Greater than nine months to twelve months		582		476		(106	)		188		173		(15	)
Greater than twelve months		408		352		(56	)		386		349		(37	)
Total	$	4,548	$	3,846	$	(702	)	$	3,929	$	3,547	$	(382	)

[1]	As of March 31, 2008, fixed maturities represented $5,067, 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 March 31, 2008 and December 31, 2007. 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 2007 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-9

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

	March 31, 2008							December 31, 2007
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS Securities
Three months or less	$	8,949	$	8,465	$	(484	)	$	7,532	$	7,216	$	(316	)
Greater than three months to six months		3,080		2,629		(451	)		8,807		8,126		(681	)
Greater than six months to nine months		7,809		6,453		(1,356	)		6,179		5,678		(501	)
Greater than nine months to twelve months		5,287		4,409		(878	)		2,100		1,936		(164	)
Greater than twelve months		6,293		5,540		(753	)		6,782		6,459		(323	)
Total	$	31,418	$	27,496	$	(3,922	)	$	31,400	$	29,415	$	(1,985	)
BIG and Equity AFS Securities
Three months or less	$	856	$	771	$	(85	)	$	813	$	752	$	(61	)
Greater than three months to six months		494		409		(85	)		610		545		(65	)
Greater than six months to nine months		481		367		(114	)		401		355		(46	)
Greater than nine months to twelve months		334		270		(64	)		151		139		(12	)
Greater than twelve months		268		221		(47	)		218		192		(26	)
Total	$	2,433	$	2,038	$	(395	)	$	2,193	$	1,983	$	(210	)

I-10

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

	March 31, 2008							December 31, 2007
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Loss			Cost		Value		Loss
Total AFS Securities
Three months or less	$	6,724	$	6,424	$	(300	)	$	3,205	$	3,090	$	(115	)
Greater than three months to six months		1,254		1,090		(164	)		2,938		2,718		(220	)
Greater than six months to nine months		2,589		2,203		(386	)		3,882		3,652		(230	)
Greater than nine months to twelve months		3,154		2,725		(429	)		648		601		(47	)
Greater than twelve months		3,130		2,828		(302	)		3,779		3,610		(169	)
Total	$	16,851	$	15,270	$	(1,581	)	$	14,452	$	13,671	$	(781	)
BIG and Equity AFS Securities
Three months or less	$	871	$	766	$	(105	)	$	659	$	621	$	(38	)
Greater than three months to six months		401		353		(48	)		570		480		(90	)
Greater than six months to nine months		432		333		(99	)		284		256		(28	)
Greater than nine months to twelve months		247		205		(42	)		37		34		(3	)
Greater than twelve months		140		131		(9	)		168		157		(11	)
Total	$	2,091	$	1,788	$	(303	)	$	1,718	$	1,548	$	(170	)

I-11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
AS OF MARCH 31, 2008

	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	$	1,807		1.8	%	Basic industry	$	680		2.3	%	Basic industry	$	2,487		1.9	%
Capital goods		1,723		1.7	%	Capital goods		607		2.1	%	Capital goods		2,334		1.8	%
Consumer cyclical		2,188		2.2	%	Consumer cyclical		754		2.5	%	Consumer cyclical		2,959		2.3	%
Consumer non cyclical		2,528		2.5	%	Consumer non cyclical		796		2.7	%	Consumer non cyclical		3,328		2.5	%
Energy		1,300		1.3	%	Energy		329		1.1	%	Energy		1,632		1.2	%
Financial services		7,684		7.7	%	Financial services		3,009		10.2	%	Financial services		10,974		8.3	%
Technology and communications		2,822		2.8	%	Technology and communications		1,155		3.9	%	Technology and communications		3,977		3.0	%
Transportation		450		0.4	%	Transportation		73		0.2	%	Transportation		523		0.4	%
Utilities		3,447		3.4	%	Utilities		1,356		4.6	%	Utilities		4,807		3.7	%
Other		790		0.8	%	Other		216		0.7	%	Other		1,006		0.8	%
Total	$	24,739		24.6	%	Total	$	8,975		30.3	%	Total	$	34,027		25.9	%
TOP TEN EXPOSURES
BY ISSUER [2]
Goldman EOP [3]	$	292		0.3	%	State of California	$	294		1.0	%	State of California	$	457		0.4	%
Parcs-r [3]		226		0.2	%	State of Georgia		221		0.7	%	Goldman EOP [3]		411		0.3	%
General Electric Capital Corp.		223		0.2	%	New York, NY		209		0.7	%	General Electric Capital Corp.		336		0.3	%
Parcs Ltd.		207		0.2	%	State of Massachusetts		181		0.6	%	Parcs-r [3]		314		0.2	%
Comm. Mrtg Pass-thru Certificate [3]		206		0.2	%	Insurance Services Office, Inc.		163		0.6	%	State of Massachusetts		305		0.2	%
Citigroup/Deutsche Bank Comm. Mrtg. [3]		202		0.2	%	Chicago, IL Wastewater Transmission		163		0.6	%	Citigroup Inc.		285		0.2	%
State of California		163		0.2	%	State of Illinois		145		0.5	%	State of Illinois		270		0.2	%
Vodafone Group PLC		162		0.2	%	State of Louisiana		143		0.5	%	New York, NY		249		0.2	%
Citigroup Inc.		160		0.2	%	Houston Texas Airport System Revenue		126		0.4	%	Parcs Ltd.		249		0.2	%
Daimler North America Corp.		159		0.1	%	Citigroup Inc.		120		0.4	%	Citigroup/Deutsche Bank Comm. Mrtg. [3]		225		0.2	%
Total	$	2,000		2.0	%	Total	$	1,765		6.0	%	Total	$	3,101		2.4	%

[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-12