Newswires

July 25, 2024 Reinsurance

Second Quarter 2024 Investor Financial Supplement

U.S. Markets via PUBT

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2024

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they

appear in this document. These measures are defined within the Discussion ofNon-GAAPand Other Financial Measuressection and are reconciled to the most directly comparable generally

accepted accounting principles ("GAAP") measure herein.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Address:

One Hartford Plaza

Hartford, CT 06155

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

Contact:

Susan Spivak Bernstein

Senior Vice President

Investor Relations

Phone (860) 547-6233

As of July 24, 2024
	A.M. Best	Standard & Poor's	Moody's
Insurance Financial Strength Ratings:
Hartford Fire Insurance Company	A+	A+	A1
Hartford Life and Accident Insurance Company	A+	A+	A1
Navigators Insurance Company	A+	A+	NR

Hartford Fire Insurance Company ratings are on positive outlook at Standard and Poor's and Moody's and on stable outlook at A.M. Best
Hartford Life and Accident Insurance Company ratings are on positive outlook at Standard and Poor's and on stable outlook at A.M. Best and Moody's
Navigators Insurance Company ratings are on positive outlook at Standard and Poor's and on stable outlook at A.M. Best

NR - Not Rated

Other Ratings:
Senior debt	a-	BBB+	Baa1
Junior subordinated debentures	bbb	BBB-	Baa2
Preferred stock	bbb	BBB-	Baa3

The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on positive outlook at A.M. Best, Standard and Poor's and Moody's

TRANSFER AGENT

Stockholder correspondence should be mailed to: Computershare

P.O. Box 505000 Louisville, KY 40233

Overnight correspondence should be mailed to: Computershare

462 South 4th Street, Suite 1600 Louisville, KY 40202

Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols "HIG" and "HIG PR G", respectively. 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, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

CONSOLIDATED

PROPERTY & CASUALTY

GROUP BENEFITS

HARTFORD FUNDS

CORPORATE

INVESTMENTS

APPENDIX

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

Consolidated Financial Results Consolidated Statements of Operations Operating Results by Segment Consolidating Balance Sheets Capital Structure

Statutory Capital to GAAP Stockholders' Equity Reconciliation Accumulated Other Comprehensive Income (Loss)

Property & Casualty Income Statements

Property & Casualty Income Statements (Continued) Property & Casualty Underwriting Ratios Commercial Lines Income Statements Commercial Lines Income Statements (Continued) Commercial Lines Underwriting Ratios Commercial Lines Supplemental Data

Personal Lines Income Statements

Personal Lines Income Statements (Continued) Personal Lines Underwriting Ratios Personal Lines Supplemental Data

Personal Lines Supplemental Data (Continued) P&C Other Operations Income Statements

Income Statements

Supplemental Data

Income Statements

Asset Value Rollforward - Assets Under Management By Asset Class

Income Statements

Investment Income Before Tax - Consolidated

Investment Income Before Tax - Property & Casualty

Investment Income Before Tax - Group Benefits

Net Investment Income

Components of Net Realized Gains (Losses)

Composition of Invested Assets

Invested Asset Exposures

Basis of Presentation and Definitions

Discussion of Non-GAAP and Other Financial Measures

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

				THREE MONTHS ENDED						SIX MONTHS
									ENDED
		Jun 30		Mar 31		Dec 31	Sept 30		Jun 30		Mar 31			Jun 30		Jun 30
		2024		2024		2023		2023		2023		2023			2024		2023
HIGHLIGHTS
Net income	$	738	$	753	$	771	$	651	$	547	$	535	$	1,491	$	1,082
Net income available to common stockholders [1]	$	733	$	748	$	766	$	645	$	542	$	530	$	1,481	$	1,072
Core earnings*	$	750	$	709	$	935	$	708	$	588	$	536	$	1,459	$	1,124
Total revenues	$	6,486	$	6,419	$	6,400	$	6,168	$	6,049	$	5,910	$	12,905	$	11,959
Total assets	$79,046	$77,710	$76,780	$74,516	$73,895	$74,249
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders	$	2.48	$	2.51	$	2.55	$	2.12	$	1.75	$	1.69	$	4.99	$	3.44
Core earnings*	$	2.54	$	2.38	$	3.11	$	2.32	$	1.90	$	1.71	$	4.92	$	3.61
Diluted earnings per common share
Net income available to common stockholders	$	2.44	$	2.47	$	2.51	$	2.09	$	1.73	$	1.66	$	4.92	$	3.39
Core earnings*	$	2.50	$	2.34	$	3.06	$	2.29	$	1.88	$	1.68	$	4.84	$	3.56
Weighted average common shares outstanding (basic)		295.5		298.1		300.3		304.6		309.4		314.0			296.8		311.7
Dilutive effect of stock compensation		4.4		4.5		4.8		4.4		3.9		4.6			4.5		4.3
Weighted average common shares outstanding and dilutive potential common shares (diluted)		299.9		302.6		305.1		309.0		313.3		318.6			301.3		316.0
Common shares outstanding		294.0		296.8		298.5		302.4		307.1		311.8
Book value per common share	$	52.20	$	50.99	$	50.23	$	44.13	$	45.00	$	44.92
Per common share impact of accumulated other comprehensive income [2]		10.43		10.10		9.54		13.82		11.47		10.44
Book value per common share (excluding AOCI)*	$	62.63	$	61.09	$	59.77	$	57.95	$	56.47	$	55.36
Book value per diluted share	$	51.43	$	50.23	$	49.43	$	43.50	$	44.43	$	44.27
Per diluted share impact of AOCI		10.28		9.95		9.40		13.62		11.33		10.28
Book value per diluted share (excluding AOCI)*	$	61.71	$	60.18	$	58.83	$	57.12	$	55.76	$	54.55
Common shares outstanding and dilutive potential common shares		298.4		301.3		303.3		306.8		311.0		316.4
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")		19.8%		18.5%		17.5%		17.7%		14.4%		12.8%
Core earnings ROE*		17.4%		16.6%		15.8%		14.9%		13.6%		14.3%

Net income available to common stockholders includes the impact of preferred stock dividends.
Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, liability for future policy benefits adjustments, and pension and other postretirement benefit plan adjustments.
For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page33.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

				THREE MONTHS ENDED						SIX MONTHS
									ENDED
		Jun 30		Mar 31		Dec 31	Sept 30		Jun 30		Mar 31		Jun 30		Jun 30
		2024		2024		2023		2023		2023		2023		2024		2023
Earned premiums	$	5,578	$	5,446	$	5,433	$	5,310	$	5,220	$	5,063	$	11,024	$	10,283
Fee income		339		333		323		330		328		319		672		647
Net investment income		602		593		653		597		540		515		1,195		1,055
Net realized gains (losses)		(59)		28		(27)		(90)		(64)		(7)		(31)		(71)
Other revenues		26		19		18		21		25		20		45		45
Total revenues		6,486		6,419		6,400		6,168		6,049		5,910		12,905		11,959
Benefits, losses and loss adjustment expenses		3,661		3,611		3,633		3,543		3,580		3,482		7,272		7,062
Amortization of deferred policy acquisition costs ("DAC")		561		545		534		517		502		491		1,106		993
Insurance operating costs and other expenses		1,285		1,283		1,214		1,226		1,225		1,216		2,568		2,441
Interest expense		50		50		49		50		50		50		100		100
Amortization of other intangible assets		17		18		18		18		17		18		35		35
Restructuring and other costs [1]		-		1		2		1		3		-		1		3
Total benefits, losses and expenses		5,574		5,508		5,450		5,355		5,377		5,257		11,082		10,634
Income before income taxes		912		911		950		813		672		653		1,823		1,325
Income tax expense		174		158		179		162		125		118		332		243
Net income		738		753		771		651		547		535		1,491		1,082
Preferred stock dividends		5		5		5		6		5		5		10		10
Net income available to common stockholders		733		748		766		645		542		530		1,481		1,072
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax		58		(30)		16		76		53		7		28		60
Restructuring and other costs, before tax [1]		-		1		2		1		3		-		1		3
Integration and other non-recurring M&A costs, before tax [2]		2		2		2		2		2		2		4		4
Change in deferred gain on retroactive reinsurance, before tax [3]		(37)		(24)		194		-		-		-		(61)		-
Income tax expense (benefit) [4]		(6)		12		(45)		(16)		(12)		(3)		6		(15)
Core earnings	$	750	$	709	$	935	$	708	$	588	$	536	$	1,459	$	1,124

Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
Includes integration costs in connection with the 2019 acquisition of Navigators Group and 2017 acquisition of Aetna's group life and disability business.
During 2024, the Company collected recoveries from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc. related to the Navigators adverse development cover ("Navigators ADC") and as a result amortized $37, and $61 of the deferred gain within benefits, losses and loss adjustment expenses in the three and six month periods ended June 30, 2024, respectively. As of June 30, 2024 and December 31, 2023, the deferred gain under retroactive reinsurance accounting on the Navigators ADC was $148 and $209, respectively, and is included in other liabilities on the Consolidating Balance Sheets.
Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

				THREE MONTHS ENDED						SIX MONTHS
									ENDED
		Jun 30	Mar 31	Dec 31	Sept 30		Jun 30	Mar 31			Jun 30		Jun 30
		2024		2024		2023		2023		2023		2023			2024		2023
Net income (loss):
Commercial Lines	$	540	$	573	$	687	$	519	$	458	$	421	$	1,113	$	879
Personal Lines		(11)		34		34		(12)		(60)		(1)			23		(61)
Property & Casualty Other Operations ("P&C Other Operations")		11		8		(154)		9		9		6			19		15
Property & Casualty ("P&C")		540		615		567		516		407		426			1,155		833
Group Benefits		171		108		176		146		121		92			279		213
Hartford Funds		44		45		47		41		45		41			89		86
Sub-total		755		768		790		703		573		559			1,523		1,132
Corporate		(17)		(15)		(19)		(52)		(26)		(24)			(32)		(50)
Net income		738		753		771		651		547		535			1,491		1,082
Preferred stock dividends		5		5		5		6		5		5			10		10
Net income available to common stockholders	$	733	$	748	$	766	$	645	$	542	$	530	$	1,481	$	1,072
Core earnings (loss):
Commercial Lines	$	551	$	546	$	723	$	542	$	493	$	436	$	1,097	$	929
Personal Lines		(4)		33		36		(8)		(57)		-			29		(57)
P&C Other Operations		14		7		(1)		11		10		8			21		18
P&C		561		586		758		545		446		444			1,147		890
Group Benefits		178		107		174		170		133		90			285		223
Hartford Funds		43		41		39		45		44		37			84		81
Sub-total		782		734		971		760		623		571			1,516		1,194
Corporate		(32)		(25)		(36)		(52)		(35)		(35)			(57)		(70)
Core earnings	$	750	$	709	$	935	$	708	$	588	$	536		$	1,459	$	1,124

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

PROPERTY &

CASUALTY

		Jun 30	Dec 31
Investments		2024	2023

Fixed maturities, available-for-sale ("AFS"), at fair value	$	32,716	$ 31,408
Fixed maturities, at fair value using the fair value option		227	272
Equity securities, at fair value		243	456
Mortgage loans, net		4,714	4,493
Limited partnerships and other alternative investments		3,864	3,770
Other investments		164	162
Short-term investments		1,962	2,127
Total investments		43,890	42,688
Cash		120	106
Restricted cash		51	52
Accrued investment income		336	313
Premiums receivable and agents' balances, net		5,686	4,973
Reinsurance recoverables, net [2]		6,552	6,602
Deferred policy acquisition costs ("DAC")		1,210	1,078
Deferred income taxes		738	681
Goodwill		778	778
Property and equipment, net		766	784
Other intangible assets		325	340
Other assets		1,533	1,130
Total assets	$	61,985	$ 59,525
Unpaid losses and loss adjustment expenses	$	35,137	$ 34,044
Reserves for future policy benefits [2]		-	-
Other policyholder funds and benefits payable [2]		-	-
Unearned premiums		9,486	8,561
Debt		-	-
Other liabilities		2,794	2,754
Total liabilities		47,417	45,359
Common stockholders' equity, excluding AOCI*		15,876	15,322
Preferred stock		-	-
AOCI, net of tax		(1,308)	(1,156)
Total stockholders' equity		14,568	14,166
Total liabilities and stockholders' equity	$	61,985	$ 59,525

GROUP BENEFITS		HARTFORD			CORPORATE [1]
	FUNDS
	Jun 30	Dec 31		Jun 30	Dec 31			Jun 30	Dec 31
	2024		2023			2024		2023			2024		2023
$	7,914	$	8,222		$	-	$	-	$	184	$	188
	45		55			-		-			-		-
	49		99			82		121			217		188
	1,643		1,594			-		-			-		-
	1,041		1,015			-		-			-		-
	6		8			80		21			-		-
	221		382			261		243			1,257		1,098
	10,919		11,375			423		385			1,658		1,474
	26		12			8		7			-		1
	5		11			-		-			-		-
	90		89			1		1			2		1
	649		634			-		-			-		-
	273		260			-		-			234		242
	35		35			-		-			-		-
	44		13			2		4			450		475
	723		723			181		181			229		229
	60		57			7		8			45		47
	337		357			10		10			-		-
	160		131			93		88			397		405
$	13,321	$	13,697		$	725	$	684		$	3,015	$	2,874
$	8,186	$	8,274		$	-	$	-		$	-	$	-
	296		312			-		-			168		172
	404		408			-		-			218		230
	35		38			-		-			-		-
	-		-		-		-			4,364		4,362
	221		220			164		150			1,893		1,928
	9,142		9,252			164		150			6,643		6,692
	4,570		4,752			561		534			(2,593)		(2,766)
	-		-		-		-			334		334
	(391)		(307)			-		-			(1,369)		(1,386)
	4,179		4,445			561		534			(3,628)		(3,818)
$	13,321	$	13,697		$	725	$	684		$	3,015	$	2,874

CONSOLIDATED

Jun 30	Dec 31
2024	2023

40,814 $ 39,818
272 327
591 864

6,357 6,087

4,905 4,785

250 191

3,701 3,850

56,890 55,922

404
6,335 5,607
7,059 7,104
1,245 1,113
1,234 1,173
1,911 1,911

2,183 1,754

79,046 $ 76,780
43,323 $ 42,318
464 484
622 638
9,521 8,599
4,364 4,362
5,072 5,052
63,366 61,453

18,414 17,842

334 334

(3,068) (2,849)

15,680	15,327
$ 79,046	$ 76,780

Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of approximately $1.3 billion and $1.1 billion as of June 30, 2024 and December 31, 2023, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold in May 2018.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30		Mar 31
DEBT		2024		2024		2023		2023		2023		2023

Senior notes	$	3,865	$	3,864	$	3,863	$	3,862	$	3,861	$	3,859
Junior subordinated debentures		499		499		499		499		499		499
Total debt	$	4,364	$	4,363	$	4,362	$	4,361	$	4,360	$	4,358
STOCKHOLDERS' EQUITY
Total stockholders' equity	$	15,680	$	15,468	$	15,327	$	13,679	$	14,152	$	14,340
Less: Preferred stock		334		334		334		334		334		334
Less: AOCI		(3,068)		(2,997)		(2,849)		(4,178)		(3,524)		(3,254)
Common stockholders' equity, excluding AOCI	$	18,414	$	18,131	$	17,842	$	17,523	$	17,342	$	17,260
CAPITALIZATION
Total capitalization, including AOCI, net of tax	$	20,044	$	19,831	$	19,689	$	18,040	$	18,512	$	18,698
Total capitalization, excluding AOCI, net of tax*	$	23,112	$	22,828	$	22,538	$	22,218	$	22,036	$	21,952
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI		21.8%		22.0%		22.2%		24.2%		23.6%		23.3%
Total debt to capitalization, excluding AOCI*		18.9%		19.1%		19.4%		19.6%		19.8%		19.9%
Total debt and preferred stock to capitalization, including AOCI		23.4%		23.7%		23.9%		26.0%		25.4%		25.1%
Total debt and preferred stock to capitalization, excluding AOCI*		20.3%		20.6%		20.8%		21.1%		21.3%		21.4%
Total rating agency adjusted debt to capitalization [1] [2]		22.7%		22.9%		23.7%		25.7%		25.0%		24.7%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]		17.1:1		17.1:1		14.6:1		13.6:1		12.8:1		12.6:1

The leverage calculation reflects adjustments, as applicable, related to defined benefit plans' unfunded pension liability, lease liabilities and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.3 billion as of June 30, 2024 and 2023.
2024 results reflect 50% equity credit for the Company's outstanding junior subordinated debentures and the Company's outstanding preferred stock based on the rating agency methodology. 2023 results reflect 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company's outstanding preferred stock based on the rating agency methodology in place as of December 31, 2023.
Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS' EQUITY RECONCILIATION

JUNE 30, 2024

U.S. statutory net income [1][2]	P&C		GROUP BENEFITS
$	930	$	330
U.S. statutory capital [2][3][4]	$	12,874	$	2,593
U.S. GAAP adjustments [2]:
DAC		1,164		35
Non-admitted deferred tax assets [5]		250		156
Deferred taxes [6]		(207)		(274)
Goodwill		108		723
Other intangible assets		23		337
Non-admitted assets other than deferred taxes		924		98
Asset valuation and interest maintenance reserve		-		288
Benefit reserves		(65)		333
Unrealized gains (losses) on investments		(1,613)		(666)
Deferred gain on retroactive reinsurance agreements [7]		(907)		-
Other, net		942		556
U.S. GAAP stockholders' equity of U.S. insurance entities [2]		13,493		4,179
U.S. GAAP stockholders' equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition		1,075		-
of Navigators Group
Total U.S. GAAP stockholders' equity	$	14,568	$	4,179

Statutory net income is for the six months ended June 30, 2024.
Excludes insurance operations based in the U.K.
For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital."
The statutory capital for property and casualty insurance subsidiaries in this table does not include the value of an intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company.
Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
Represents the tax timing differences between U.S. GAAP and U.S. STAT.
Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and asbestos and environmental adverse development cover ("A&E ADC") agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

						AS OF
		Jun 30		Mar 31		Dec 31	Sept 30		Jun 30		Mar 31
Net unrealized gain (loss) on fixed maturities, AFS		2024		2024		2023		2023		2023		2023
$	(1,732)	$	(1,642)	$	(1,482)	$	(2,948)	$	(2,277)	$	(2,008)
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")		(7)		(7)		(8)		(9)		(10)		(13)
Net gains on cash flow hedging instruments		30		21		21		27		31		48
Total net unrealized gain (loss)		(1,709)		(1,628)		(1,469)		(2,930)		(2,256)		(1,973)
Foreign currency translation adjustments		35		36		37		35		36		33
Liability for future policy benefits adjustments		35		30		25		47		32		27
Pension and other postretirement plan adjustments		(1,429)		(1,435)		(1,442)		(1,330)		(1,336)		(1,341)
Total AOCI	$	(3,068)	$	(2,997)	$	(2,849)	$	(4,178)	$	(3,524)	$	(3,254)

Attachments

Disclaimer

Hartford Financial Services Group Inc. published this content on 25 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2024 20:20:48 UTC.

Older

Second Quarter 2024 Second Quarter 2024 Results

Newer

Q2 24 Earnings Presentation

Advisor News

More Advisor News

Annuity News

More Annuity News

Health/Employee Benefits News

More Health/Employee Benefits News

Life Insurance News

Sponsor

More Life Insurance News

Second Quarter 2024 Investor Financial Supplement

Advisor News

Annuity News

Health/Employee Benefits News

Life Insurance News

Sign in with your Insider Pro Account