HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2 - EXHIBIT

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8-K - 8-K - HARTFORD FINANCIAL SERVICES GROUP, INC.	a8kearningsreleasecoverpag.htm
EX-99.1 - EXHIBIT - HARTFORD FINANCIAL SERVICES GROUP, INC.	ex991earningsnewsrelease09.htm

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2013

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of October 23, 2013
Address:
One Hartford Plaza		A.M. Best	Fitch	Standard & Poor’s	Moody’s
Hartford, CT 06155	Insurance Financial Strength Ratings:
	Hartford Fire Insurance Company	A	A+	A	A2
	Hartford Life Insurance Company	A-	A-	BBB+	A3
Internet address:	Hartford Life and Accident Insurance Company	A-	A-	A-	A3
http://www.thehartford.com	Hartford Life and Annuity Insurance Company	A-	A-	BBB+	Baa2

	Other Ratings:
	The Hartford Financial Services Group, Inc.:
Contacts:	Senior debt	bbb+	BBB	BBB	Baa3
Sabra Purtill	Commercial paper	AMB-2	F2	A-2	P-3
Senior Vice President
Investor Relations
Phone (860) 547-8691


Sean Rourke	TRANSFER AGENT
Assistant Vice President	Shareholder correspondence should be mailed to:	Overnight correspondence should be mailed to:
Investor Relations	Computershare	Computershare
Phone (860) 547-5688	P.O. Box 43006	250 Royall Street
	Providence, RI 02940-3006	Canton, MA 02021
	Phone (877) 272-7740

COMMON STOCK

Common stock and warrants of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG/WS", 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 and Form 10-Q/A.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS



	Basis of Presentation	i

CONSOLIDATED	Consolidated Financial Results	1	MUTUAL FUNDS	Income Statements	20
	Operating Results by Segment	2		Supplemental Data - Asset Value Rollforward - Assets Under Management - By Distribution Channel	21
	Consolidated Statements of Operations	3		Supplemental Data - Asset Value Rollforward - Assets Under Management - By Asset Class	22
	Consolidating Balance Sheets	4
	Capital Structure	5
	Statutory Capital and Surplus to GAAP Stockholders’ Equity Reconciliation	6
	Accumulated Other Comprehensive Income (Loss)	7	TALCOTT
	Deferred Policy Acquisition Costs and Present Value of Future Profits	8	RESOLUTION	Financial Highlights	23
				Supplemental Data	24
				U.S. Annuity
				Supplemental Data - Account Value Rollforward	25
				Japan Annuity
PROPERTY & CASUALTY	Income Statements	9		Supplemental Data - Account Value Rollforward	26
	Underwriting Ratios	10		Supplemental Data - Annuity Death and Living Benefits	27
	P&C Commercial
	Underwriting Results	11
	Underwriting Ratios	12
	Supplemental Data	13
	Consumer Markets		CORPORATE	Income Statements	28
	Underwriting Results	14
	Underwriting Ratios	15
	Supplemental Data	16
	P&C Other Operations		INVESTMENTS	Investment Earnings Before-tax (Consolidated)	29
	Underwriting Results	17		Investment Earnings Before-tax (Property & Casualty)	30
				Net Investment Income by Segment	31
				Components of Net Realized Capital Gains (Losses)	32
GROUP BENEFITS	Income Statements	18		Composition of Invested Assets	33
	Supplemental Data	19		Invested Asset Exposures	34

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.

The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in six reporting segments, Property & Casualty Commercial, Consumer Markets, Property & Casualty Other Operations, Group Benefits, Mutual Funds and Talcott Resolution, as well as a Corporate category. In June 2013, the Company announced the signing of a definitive agreement to sell the U.K. variable annuity business of Hartford Life International Limited ("HLIL"), an indirect wholly-owned subsidiary. Accordingly, the assets and liabilities of the Company's U.K variable annuity business are presented as held for sale in the Consolidating Balance Sheets as of September 30, 2013 included herein. In addition, the results of operations of the Company's U.K. variable annuity business have been retrospectively reclassified from continuing operations and included as a discontinued operation in the Company's results of operations for all periods presented herein. Financial results for the Company's U.K. variable annuities business, as well as the former Retirement Plans and Individual Life businesses are reported in the Talcott Resolution segment which also includes U.S. Annuity, International Annuity, Institutional and Private Placement Life Insurance.

Property & Casualty ("P&C") is organized into three reporting segments; P&C Commercial, Consumer Markets and P&C Other Operations. P&C Commercial provides workers' compensation, property, automobile, liability and umbrella coverages under several different products, primarily throughout the United States (“U.S.”), within its standard commercial lines, which consists of the Company's small commercial and middle market lines of business. Additionally, a variety of customized insurance products and risk management services including workers' compensation, automobile, general liability, professional liability, fidelity, surety, livestock and specialty casualty coverages are offered through the segment's specialty lines. Consumer Markets provides standard automobile, homeowners and home-based business coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Consumer Markets also operates a member contact center for health insurance products offered through the AARP Health program. P&C Other Operations includes certain property and casualty operations, currently managed by the Company, that have discontinued writing new business and substantially all of the Company's asbestos and environmental exposures.

Group Benefits provides employers, associations, affinity groups and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits and group retiree health.

Mutual Funds offers mutual funds for retail accounts such as retirement plans and 529 college savings plans and provides investment-management and administrative services such as product design, implementation and oversight.

Corporate includes the Company's debt financing and related interest expense, as well as other capital raising activities, certain purchase accounting adjustments and other charges not allocated to the segments.

The consolidating balance sheets and certain balance sheet measures incorporated herein are presented as follows: Life consists of Talcott Resolution, Mutual Funds, Group Benefits, and an Other category. P&C consists of P&C Commercial, Consumer Markets and P&C Other Operations. Corporate consists of the Corporate category.

Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include sales, deposits, net flows, account value, insurance in-force, premium retention, renewal written price increases and policy count retention. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. Renewal written price increases represent the combined effect of rate changes and amount of insurance per unit of exposure since the prior year. Policy count retention represents the ratio of the number of policies renewed during the period divided by the number of policies from the previous policy term period.

The Company, 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 Company, 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 after tax unrealized gain (loss) on available-for-sale securities, other than temporary impairment losses recognized in AOCI, net gain (loss) on cash-flow hedging instruments, foreign currency translation adjustments and pension and other postretirement adjustments.

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 funds assets are not included on the balance sheet.

Return on assets (“ROA”) is calculated using annualized earnings divided by a two-point average of assets under management.

Full surrender rates are an internal measure of contract surrenders calculated using annualized full surrenders divided by a two-point average of annuity account values. The full surrender rate represents full contract liquidation and excludes partial withdrawals.

Assets under management (“AUM”) include account values and mutual funds assets. 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 with a rise or fall in the amount of account value whether caused by changes in capital markets or through net flows.

Yields are calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, and consolidated variable interest entity non-controlling interests.

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.

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

The Company 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 Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies.

The Company uses the non-GAAP financial measure core earnings as an important measure of the Company's operating performance. We believe that core earnings provides investors with a valuable measure of the performance of the Company's ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain realized capital gains and losses, discontinued operations, loss on extinguishment of debt, gains and losses from disposal of businesses, certain restructuring charges and the impact of Unlocks to deferred policy acquisition costs (“DAC”), sales inducement assets ("SIA"), unearned revenue reserve ("URR") and death and other insurance benefit reserve balances. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (after tax and the effects of DAC) that tend to be highly variable from period to period based on capital market conditions. We believe, 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. 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 the Company's business. Therefore, we believe 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 2.

Core earnings per share is calculated based on the non-GAAP financial measure core earnings. We believe 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 the Company's business. Therefore, we believe that it is useful for investors to evaluate both net income per share and core earnings per share when reviewing our performance.

Written premiums is a statutory accounting financial measure used by the Company as an important indicator of the operating performance of the Company's P&C Commercial and Consumer Markets operations. Because written premiums represents the amount of premium charged for policies issued, net of reinsurance, during a fiscal period, the Company believes it is useful to investors because it reflects current trends in the Company'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 P&C Commercial and Consumer Markets is set forth at pages 11 and 14, respectively.

The Company's management evaluates profitability of the P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before-tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of the Company's pricing. Underwriting profitability over time is also greatly influenced by the Company's underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance 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. We believe that underwriting gain (loss) provides investors with a valuable measure of before-tax profitability derived from underwriting activities, which are managed separately from the Company's investing activities.

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 Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings.

ROA, core earnings is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, certain of the segment's operating performance. ROA is the most directly comparable U.S. GAAP measure. We believe that ROA, core earnings, provides investors with a valuable measure of the performance of certain of the Company's on-going businesses because it reveals trends in our businesses that may be obscured by the effect of realized gains (losses). ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our businesses. Therefore, we believe it is important for investors to evaluate both ROA, core earnings, and ROA when reviewing the Company's performance.

After-tax margin, excluding buyouts and realized gains (losses), is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, the Group Benefits segment's operating performance. After-tax margin is the most directly comparable U.S. GAAP measure. We believe that after-tax margin, excluding buyouts and realized gains (losses), provides investors with a valuable measure of the performance of certain of the Company's on-going businesses because it reveals trends in those businesses that may be obscured by the effect of realized gains (losses). After-tax margin, excluding buyouts and realized gains (losses), should not be considered as a substitute for after-tax margin and does not reflect the overall profitability of our businesses. Therefore, we believe it is important for investors to evaluate both after-tax margin, excluding buyouts and realized gains (losses), and after-tax margin when reviewing the Company's performance. After-tax margin, excluding buyouts and realized gains (losses) is calculated by dividing core earnings excluding buyouts and realized gains (losses) by total core revenues excluding buyouts and realized gains (losses).

Book value per common share excluding AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding. The Company provides book value per common 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. We believe book value per common 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 common share is the most directly comparable GAAP measure. A reconciliation of book value per common share to book value per common share, excluding AOCI, for the periods presented herein is set forth at page 1.

Book value per diluted share, excluding AOCI, is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) total stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides book value per diluted 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. We believe book value per diluted share, excluding AOCI, is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable GAAP measure. A reconciliation of book value per diluted share to book value per diluted share, excluding AOCI, for the periods presented herein is set forth at page 1.

The Company provides different measures of the return on common equity (“ROE”). ROE (core earnings last twelve months to common equity, excluding AOCI), is calculated based on non-GAAP financial measures. ROE (core earnings last twelve months to common equity, excluding AOCI) is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. When calculating ROE, the Mandatory Convertible preferred stock (“MCP”) is included in average common stockholders' equity and MCP dividends are added back to net income (loss) available to common shareholders and core earnings (losses) available to common shareholders. The Company provides to investors return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above. The Company 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 common equity, including AOCI) is the most directly comparable GAAP measure.

iii

CONSOLIDATED

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
HIGHLIGHTS
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
Core earnings	$	505		$	324		$	457		$	256		$	433		$	274		$	423		$	1,286		$	1,130
Total revenues	$	5,641		$	5,465		$	9,043		$	7,700		$	6,332		$	4,565		$	7,525		$	20,149		$	18,422
Total assets	$	283,947		$	294,833		$	297,021		$	298,513		$	308,721		$	303,977		$	310,548
PER SHARE AND SHARES DATA
Basic earnings (losses) per common share
Net income (loss) available to common shareholders	$	0.65		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.20		$	(0.33	)	$	(0.05	)
Core earnings available to common shareholders	$	1.12		$	0.72		$	1.02		$	0.56		$	0.97		$	0.60		$	0.94		$	2.86		$	2.51
Diluted earnings (losses) per common share [1]
Net income (loss) available to common shareholders [2]	$	0.60		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.33	)	$	(0.05	)
Core earnings available to common shareholders	$	1.03		$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	2.61		$	2.32
Weighted average common shares outstanding (basic)	452.1			451.4			436.3			436.2			435.8			438.2			440.7			446.6			438.2
Dilutive effect of stock compensation	4.6			4.2			3.9			3.0			2.1			1.5			1.9			4.2			1.9
Dilutive effect of warrants	33.9			33.4			31.7			28.7			23.8			25.1			26.4			33.0			25.1
Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares	490.6			489.0			471.9			467.9			461.7			464.8			469.0			483.8			465.2
Dilutive effect of assumed conversion of preferred shares [2] [3]	—			—			21.2			21.0			21.0			21.0			20.9			8.3			20.9
Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares	490.6			489.0			493.1			488.9			482.7			485.8			489.9			492.1			486.1
Common shares outstanding	448.5			453.9			435.3			436.3			436.1			435.6			440.9			448.5			436.1
Book value per common share	$	42.20		$	41.89		$	46.78		$	50.17		$	51.42		$	49.14		$	46.99
Per common share impact of accumulated other comprehensive income ("AOCI")	$	(0.04	)	$	0.16		$	3.79		$	6.51		$	7.55		$	5.18		$	3.01
Book value per common share (excluding AOCI)	$	42.24		$	41.73		$	42.99		$	43.66		$	43.87		$	43.96		$	43.98
Book value per diluted share	$	38.87		$	38.59		$	42.43		$	45.80		$	47.34		$	45.59		$	43.25
Per diluted share impact of AOCI	$	(0.04	)	$	0.15		$	3.34		$	5.80		$	6.79		$	4.68		$	2.70
Book value per diluted share (excluding AOCI)	$	38.91		$	38.44		$	39.09		$	40.00		$	40.55		$	40.91		$	40.55
Common shares outstanding and dilutive potential common shares	486.9			492.7			493.0			490.1			485.5			481.7			491.9
FINANCIAL RATIOS
ROE (net income (loss) last 12 months to common stockholder equity including AOCI)	(0.9		)%	(2.3		)%	(1.8		)%	(0.2		)%	0.6		%	0.8		%	1.5		%
ROE (core earnings last 12 months to common stockholder equity excluding AOCI)	8.0		%	7.6		%	7.2		%	7.0		%	7.1		%	6.3		%	5.0		%
Debt to capitalization, including AOCI	25.0		%	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Annualized investment yield, after tax	2.9		%	3.1		%	3.0		%	2.9		%	2.9		%	3.1		%	3.0		%	3.0		%	3.0		%


[1]	As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share.


[2]	The impact of applying the "if-converted" method to the The Hartford's mandatory convertible preferred stock was anti-dilutive to net income available to common shareholders for the three months ended September 30, 2012 and therefore these shares were excluded from the calculation.


[3]	In April 2013, The Hartford's mandatory convertible preferred stock converted to 21.2 million shares of common stock.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Core earnings (losses):
P&C Commercial	$	176		$	198		$	224		$	26		$	161		$	162		$	162		$	598		$	485
Consumer Markets	68			15			73			11			93			(47		)	102			156			148
P&C Other Operations	19			(73		)	21			17			21			(14		)	20			(33		)	27
Total Property & Casualty	$	263		$	140		$	318		$	54		$	275		$	101		$	284		$	721		$	660
Group Benefits	36			37			30			39			23			34			5			103			62
Mutual Funds	18			20			20			16			19			19			20			58			58
Sub-total	317			197			368			109			317			154			309			882			780
Talcott Resolution [3]	204			196			162			202			192			200			216			562			608
Corporate	(16		)	(69		)	(73		)	(55		)	(76		)	(80		)	(102		)	(158		)	(258		)
CONSOLIDATED CORE EARNINGS	$	505		$	324		$	457		$	256		$	433		$	274		$	423		$	1,286		$	1,130
Add: Unlock benefit (charge), after-tax [1] [2]	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)
Add: Restructuring and other costs, after tax	(10		)	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(34		)	(71		)
Add: Income (loss) from discontinued operations, after tax	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
Add: Loss on extinguishment of debt, after tax	—			—			(138		)	—			—			(587		)	—			(138		)	(587		)
Add: Net reinsurance gain (loss) on dispositions, after tax	—			1			(25		)	—			(388		)	—			—			(24		)	(388		)
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(130		)	(413		)	19			(282		)	61			382			(571		)	(524		)	(128		)
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
PER SHARE DATA
Diluted earnings (losses) per common share:
Core earnings available to common shareholders [3]	$	1.03		$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	2.61		$	2.32
Net income (loss) available to common shareholders	$	0.60		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.33	)	$	(0.05	)

[1]The Unlock benefit (charge) recorded in the periods presented affected each income statement line item as follows:



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	—		$	(1	)	$	(1	)	$	(5	)	$	(3	)	$	1		$	—		$	(2	)	$	(2	)
Fee income	12			1			2			7			14			7			(2		)	15			19
Benefits, losses and loss adjustment expenses	(54		)	(72		)	(71		)	(160		)	56			143			(208		)	(197		)	(9		)
Amortization of DAC	170			17			904			100			79			89			(124		)	1,091			44
Income tax expense (benefit)	(37		)	19			(291		)	23			(45		)	(78		)	116			(309		)	(7		)
Unlock benefit (charge), after tax [2]	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)

[2] The Unlock charge in the first quarter of 2013 relates primarily to costs associated with expanding the Japan variable annuity hedging program in the

Talcott Resolution - International Annuity segment resulting in elimination of estimated future gross profits on the Japan annuity block.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	3,337		$	3,293		$	3,252		$	3,388		$	3,401		$	3,400		$	3,442		$	9,882		$	10,243
Fee income	708			699			699			1,048			1,109			1,105			1,124			2,106			3,338
Net investment income (loss):
Securities available-for-sale and other	812			867			856			1,038			1,028			1,094			1,067			2,535			3,189
Equity securities, trading [1]	878			1,189			2,562			2,630			635			(1,662		)	2,761			4,629			1,734
Total net investment income (loss)	1,690			2,056			3,418			3,668			1,663			(568		)	3,828			7,164			4,923
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses [2]	(28		)	(17		)	(33		)	(188		)	(59		)	(106		)	(36		)	(78		)	(201		)
OTTI losses recognized in other comprehensive income	2			5			12			3			22			8			7			19			37
Net OTTI losses recognized in earnings	(26		)	(12		)	(21		)	(185		)	(37		)	(98		)	(29		)	(59		)	(164		)
Net realized capital gains on business dispositions [3]	—			1			1,574			—			—			—			—			1,575			—
Other net realized capital gains (losses)	(136		)	(637		)	53			(293		)	132			665			(899		)	(720		)	(102		)
Total net realized capital gains (losses)	(162		)	(648		)	1,606			(478		)	95			567			(928		)	796			(266		)
Other revenues	68			65			68			74			64			61			59			201			184
Total revenues	5,641			5,465			9,043			7,700			6,332			4,565			7,525			20,149			18,422
Benefits, losses and loss adjustment expenses	2,739			2,886			2,664			3,321			3,270			3,620			3,037			8,289			9,927
Benefits, losses and loss adjustment expenses—returns credited on international variable annuities [1]	878			1,188			2,562			2,630			635			(1,661		)	2,759			4,628			1,733
Amortization of DAC	594			391			1,336			547			566			554			321			2,321			1,441
Insurance operating costs and other expenses	978			1,101			1,006			1,244			1,214			1,253			1,294			3,085			3,761
Loss on extinguishment of debt	—			—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [3]	—			—			1,574			—			533			—			—			1,574			533
Interest expense	94			100			107			109			109			115			124			301			348
Restructuring and other costs	15			19			18			89			53			48			9			52			110
Total benefits and expenses	5,298			5,685			9,480			7,940			6,380			4,839			7,544			20,463			18,763
Income (loss) from continuing operations before income taxes	343			(220		)	(437		)	(240		)	(48		)	(274		)	(19		)	(314		)	(341		)
Income tax expense (benefit)	45			(156		)	(197		)	(195		)	(41		)	(166		)	(79		)	(308		)	(286		)
Income (loss) from continuing operations, after tax	298			(64		)	(240		)	(45		)	(7		)	(108		)	60			(6		)	(55		)
Income (loss) from discontinued operations, after tax [5]	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
Less: Unlock benefit (charge), after tax [4]	(67		)	36			(541		)	39			(79		)	(146		)	214			(572		)	(11		)
Less: Restructuring and other costs, after tax	(10		)	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(34		)	(71		)
Less: Income (loss) from discontinued operations, after tax [5]	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
Less: Loss on extinguishment of debt, after tax	—			—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance gains (losses) on dispositions, after tax [3]	—			1			(25		)	—			(388		)	—			—			(24		)	(388		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(130		)	(413		)	19			(282		)	61			382			(571		)	(524		)	(128		)
Core earnings	$	505		$	324		$	457		$	256		$	433		$	274		423			$	1,286		$	1,130


[1]	Includes investment income and mark-to-market effects of equity securities, 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]	Includes $177 of intent-to-sell impairment losses relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended December 31, 2012.


[3]	All amounts pertain to the sales of the Retirement Plans and Individual Life businesses; net reinsurance losses on disposition, after tax for the three months ended March 31, 2013 and September 30, 2012 pertain to the Retirement Plans and Individual Life business, respectively.


[4]	For income statement line item Unlock impact, refer to footnote [1] on page 2.


[5]	Information related to the discontinued operations of the U.K. variable annuity business is presented in the Basis of Presentation on page i and the Talcott Resolution Financial Highlights on page 23.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

AS OF SEPTEMBER 30, 2013 and DECEMBER 31, 2012



	LIFE [1]				PROPERTY & CASUALTY [1]				CORPORATE [1]						CONSOLIDATED
	Sept. 30 2013		Dec. 31 2012		Sept. 30 2013		Dec. 31 2012		Sept. 30 2013			Dec. 31 2012			Sept. 30 2013			Dec. 31 2012
Investments
Fixed maturities, available-for-sale, at fair value	$	38,033	$	58,889	$	24,891	$	26,491	$	1,099		$	542		$	64,023		$	85,922
Fixed maturities, at fair value using the fair value option	980		1,075		14		12		—			—			994			1,087
Equity securities, trading, at fair value	22,343		28,933		—		—		—			—			22,343			28,933
Equity securities, available-for-sale, at fair value	471		512		268		263		123			115			862			890
Mortgage loans	4,243		5,661		1,332		1,050		—			—			5,575			6,711
Policy loans, at outstanding balance	1,415		1,997		—		—		—			—			1,415			1,997
Limited partnerships and other alternative investments	1,433		1,452		1,626		1,563		—			—			3,059			3,015
Other investments	522		961		108		130		17			23			647			1,114
Short-term investments	2,621		2,947		801		802		724			832			4,146			4,581
Total investments	$	72,061	$	102,427	$	29,040	$	30,311	$	1,963		$	1,512		$	103,064		$	134,250
Cash	1,243		2,231		175		190		4			—			1,422			2,421
Premiums receivable and agents’ balances	279		344		3,394		3,198		—			—			3,673			3,542
Reinsurance recoverables	20,365		1,912		2,750		2,754		—			—			23,115			4,666
DAC	1,695		5,177		554		548		—			—			2,249			5,725
Deferred income taxes	1,600		55		794		395		1,499			1,492			3,893			1,942
Goodwill	149		236		119		119		230			299			498			654
Property and equipment, net	262		348		624		620		9			9			895			977
Other assets	1,688		1,600		1,237		967		335			200			3,260			2,767
Assets held for sale [1]	2,002		—		—		—		—			—			2,002			—
Separate account assets	139,876		141,569		—		—		—			—			139,876			141,569
Total assets	$	241,220	$	255,899	$	38,687	$	39,102	$	4,040		$	3,512		$	283,947		$	298,513
Future policy benefits, unpaid losses and loss adjustment expenses	19,831		19,276		21,714		21,716		—			—			$	41,545		$	40,992
Other policyholder funds and benefits payable	40,101		41,979		—		—		—			—			40,101			41,979
Other policyholder funds and benefits payable— International variable annuities	22,332		28,922		—		—		—			—			22,332			28,922
Unearned premiums	170		174		5,276		4,972		(1		)	(1		)	5,445			5,145
Debt	—		—		—		—		6,306			7,126			6,306			7,126
Consumer notes	83		161		—		—		—			—			83			161
Other liabilities	4,201		6,800		1,604		1,675		1,803			1,697			7,608			10,172
Liabilities held for sale [1]	1,723		—		—		—		—			—			1,723			—
Separate account liabilities	139,876		141,569		—		—		—			—			139,876			141,569
Total liabilities	$	228,317	$	238,881	$	28,594	$	28,363	$	8,108		$	8,822		$	265,019		$	276,066
Common equity, excluding AOCI	12,019		14,176		9,599		9,332		(2,673		)	(4,460		)	18,945			19,048
Preferred stock [2]	—		—		—		—		—			556			—			556
AOCI, after tax	884		2,842		494		1,407		(1,395		)	(1,406		)	(17		)	2,843
Total stockholders’ equity	12,903		17,018		10,093		10,739		(4,068		)	(5,310		)	18,928			22,447
Total liabilities and equity	$	241,220	$	255,899	$	38,687	$	39,102	$	4,040		$	3,512		$	283,947		$	298,513


[1]	For a description of Life, Property & Casualty and Corporate, and information regarding assets held for sale, refer to Basis of Presentation on page i.


[2]	The preferred stock converted to common equity on April 1, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE



	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
DEBT
Short-term debt	$	200		$	520		$	520		$	320		$	320		$	—		$	—
Senior notes	5,006			5,005			4,707			5,706			5,706			6,025			4,481
Junior subordinated debentures	1,100			1,100			1,100			1,100			1,100			1,100			1,739
Total debt [1][2][3]	$	6,306		$	6,625		$	6,327		$	7,126		$	7,126		$	7,125		6,220
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	18,945		$	18,939		$	18,715		$	19,048		$	19,131		$	19,149		19,390
Preferred stock	—			—			556			556			556			556			556
AOCI	(17		)	74			1,649			2,843			3,295			2,256			1,328
Total stockholders’ equity	$	18,928		$	19,013		$	20,920		$	22,447		$	22,982		$	21,961		$	21,274
CAPITALIZATION
Total capitalization, including AOCI, after tax	$	25,234		$	25,638		$	27,247		$	29,573		$	30,108		$	29,086		$	27,494
Total capitalization, excluding AOCI, after tax	$	25,251		$	25,564		$	25,598		$	26,730		$	26,813		$	26,830		$	26,166
DEBT TO CAPITALIZATION RATIOS [3]
Total debt to capitalization, including AOCI	25.0		%	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Total debt to capitalization, excluding AOCI	25.0		%	25.9		%	24.7		%	26.7		%	26.6		%	26.6		%	23.8		%
Total rating agency adjusted debt to capitalization [4] [5]	28.5		%	29.3		%	26.6		%	27.4		%	26.3		%	27.3		%	26.5		%


[1]	On July 15, 2013, the Company repaid $320 of 4.625% senior notes.

[2]

On April 18, 2013, the Company issued $300 of 4.3% senior notes due in 2043. On March 26, 2013, the Company repurchased approximately $800 of outstanding senior debentures. On April 5, 2012, the Company issued $1.55 billion aggregate principal amount of senior notes and $600 of junior subordinated debentures. The Company used the proceeds from the 2012 debt offering to repurchase all of the outstanding 10% fixed to floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz SE for $2.125 billion.


[3]	The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $83, $110, $132, $161 and $190 as of September 30, 2013, June 30, 2013, December 31, 2012, September 30, 2012, and September 30, 2012, respectively.

[4]

The leverage calculation reflects adjustments related to the Company’s defined benefit plans unfunded pension liability and the Company's rental expense on operating leases for total adjustments of $1.6 billion, $1.6 billion, $1.7 billion, $1.5 billion and $1.5 billion for the three months ended September 30, 2013, June 30, 2013, December 31, 2012, December 31, 2012, and September 30, 2012, respectively.


[5]	Reflects 25% equity credit for the junior subordinated debentures and the discount value of the debentures issued in October 2008. Reflects 100% equity credit for the MCP stock which converted to common equity on April 1, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL AND SURPLUS TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION



	Sept. 30 2013			[3]	Dec. 31 2012			[3]
U.S. statutory net income
Property & Casualty [1]	$	862			$	883
Life [1] [2]	$	1,848			$	592
U.S. statutory capital and surplus - Property & Casualty	$	7,782			$	7,645
U.S. GAAP adjustments:
DAC	554				548
Benefit reserves	(49		)		(53		)
Unrealized gains on investments, after tax	423				1,314
Goodwill	119				119
Non-admitted assets	915				914
Other, net	349				252
U.S. GAAP stockholders’ equity - Property & Casualty	$	10,093			$	10,739
U.S. statutory capital and surplus - Life	$	6,885			$	6,410
U.S. GAAP adjustments:
DAC	1,695				5,177
Deferred taxes	185				(1,610		)
Benefit reserves	(223		)		(1,014		)
Unrealized gains on investments, after tax	924				4,071
Asset valuation reserve and interest maintenance reserve	873				934
Goodwill	149				236
Other, net	182				(231		)
Investment in foreign and non-insurance subsidiaries	2,233				3,045
U.S. GAAP stockholders’ equity - Life	$	12,903			$	17,018


[1]	For a description of Property & Casualty and Life, refer to the Basis of Presentation on page i.


[2]	Statutory net income does not include capital gains and losses on the mark to market effects of hedging programs that may be accounted for as realized capital gains (losses) under U.S. GAAP.


[3]	Statutory net income is for the nine months ended September 30, 2013 and the year ended December 31, 2012.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	THREE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Fixed maturities net unrealized gain	$	976		$	1,141		$	2,484		$	3,402		$	3,373		$	2,507		$	1,793
Equities net unrealized gain (loss)	12			21			45			16			8			(8		)	(41		)
OTTI losses recognized in AOCI	(20		)	(23		)	(32		)	(47		)	(59		)	(94		)	(107		)
Net deferred gain on cash flow hedging instruments	167			188			320			428			543			544			463
Total net unrealized gain	$	1,135		$	1,327		$	2,817		$	3,799		$	3,865		$	2,949		$	2,108
Foreign currency translation adjustments	184			92			186			406			582			494			438
Pension and other postretirement adjustment	(1,336		)	(1,345		)	(1,354		)	(1,362		)	(1,152		)	(1,187		)	(1,218		)
Total AOCI	$	(17	)	$	74		$	1,649		$	2,843		$	3,295		$	2,256		$	1,328

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS (“DAC”)



	THREE MONTHS ENDED SEPT. 30 2013
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			U.S. Annuity			International Annuity		Institutional			Other [1]			Consolidated
Balance, beginning of period	$	551		$	42		$	23		$	1,791		$	—	$	49		$	16		$	2,472
Deferred costs	311			7			9			8			—		—			—			335
Amortization — DAC	(308		)	(8		)	(11		)	(96		)	—		(1		)	—			(424		)
Amortization — DAC unlock charge, before tax	—			—			—			(154		)	—		—			(16		)	(170		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—			—			1			35			—		—			—			36
Balance, end of period	$	554		$	41		$	22		$	1,584		$	—	$	48		$	—		$	2,249



	NINE MONTHS ENDED SEPT. 30 2013
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			U.S. Annuity			International Annuity			Institutional			Other [1]			Consolidated
Balance, beginning of period	$	548		$	43		$	22		$	1,823		$	993		$	51		$	2,245		$	5,725
Deferred costs	933			22			29			19			—			—			—			1,003
Amortization — DAC	(927		)	(24		)	(30		)	(226		)	(20		)	(3		)	—			(1,230		)
Amortization — DAC unlock charge, before tax [2]	—			—			—			(188		)	(887		)	—			(16		)	(1,091		)
Amortization — DAC related to business dispositions [3]	—			—			—			—			—			—			(2,229		)	(2,229		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—						1			156			—			—			—			157
Effect of currency translation adjustment	—			—			—			—			(86		)	—			—			(86		)
Balance, end of period	$	554		$	41		$	22		$	1,584		$	—		$	48		$	—		$	2,249


[1]	Talcott Resolution Other includes DAC balances and activity related to the private placement life insurance ("PPLI"), Retirement Plans and Individual Life businesses. The Retirement Plans and Individual Life businesses were sold in January 2013.


[2]	International Annuity's unlock charge relates to elimination of future estimated gross profits on the Japan variable annuity block due to the increased costs associated with expanding the Japan variable annuity hedging program in the first quarter of 2013.


[3]	Includes $204 and $2,025 recognized in the first quarter of 2013 upon the sale of the Retirement Plans and Individual Life businesses, respectively, representing accelerated amortization and previously unrealized gains on securities available-for-sale.

PROPERTY & CASUALTY

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	2,556		$	2,501		$	2,523		$	2,314		$	2,512		$	2,472		$	2,549		$	7,580		$	7,533
Change in unearned premium reserve	68			48			98			(165		)	18			18			83			214			119
Earned premiums	2,488			2,453			2,425			2,479			2,494			2,454			2,466			7,366			7,414
Losses and loss adjustment expenses
Current accident year before catastrophes	1,607			1,551			1,536			1,660			1,717			1,590			1,601			4,694			4,908
Current accident year catastrophes	66			186			32			335			10			290			71			284			371
Prior year development	17			146			14			9			(33		)	49			(29		)	177			(13		)
Total losses and loss adjustment expenses	1,690			1,883			1,582			2,004			1,694			1,929			1,643			5,155			5,266
Amortization of DAC	308			309			310			317			313			315			314			927			942
Underwriting expenses	391			389			375			381			367			388			403			1,155			1,158
Dividends to policyholders	4			4			4			6			5			5			(2		)	12			8
Underwriting gain (loss)	95			(132		)	154			(229		)	115			(183		)	108			117			40
Net investment income	296			338			312			301			295			319			317			946			931
Net realized capital gains (losses)	2			(7		)	51			40			16			(21		)	61			46			56
Other expense	(31		)	(34		)	(24		)	(33		)	(35		)	(17		)	(35		)	(89		)	(87		)
Restructuring and other costs	(1		)	—			—			—			(1		)	(5		)	—			(1		)	(6		)
Income from continuing operations before income taxes	361			165			493			79			390			93			451			1,019			934
Income tax expense (benefit)	98			27			142			(2		)	106			8			126			267			240
Income from continuing operations, after tax	263			138			351			81			284			85			325			752			694
Income (loss) from discontinued operations, after tax	1			(2		)	—			(1		)	(2		)	(1		)	(1		)	(1		)	(4		)
Net income	264			136			351			80			282			84			324			751			690
Less: Restructuring and other costs, after tax	(1		)	—			—			—			(1		)	(3		)	—			(1		)	(4		)
Less: Income (loss) from discontinued operations, after tax	1			(2		)	—			(1		)	(2		)	(1		)	(1		)	(1		)	(4		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	1			(2		)	33			27			10			(13		)	41			32			38
Core earnings	$	263		$	140		$	318		$	54		$	275		$	101		$	284		$	721		$	660

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	95		$	(132	)	$	154	$	(229	)	$	115		$	(183	)	$	108		$	117		$	40
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	64.6			63.2			63.3		67.0			68.8			64.8			64.9			63.7			66.2
Current accident year catastrophes	2.7			7.6			1.3		13.5			0.4			11.8			2.9			3.9			5.0
Prior year development	0.7			6.0			0.6		0.4			(1.3		)	2.0			(1.2		)	2.4			(0.2		)
Total losses and loss adjustment expenses	67.9			76.8			65.2		80.8			67.9			78.6			66.6			70.0			71.0
Expenses	28.1			28.5			28.2		28.2			27.3			28.6			29.1			28.3			28.3
Policyholder dividends	0.2			0.2			0.2		0.2			0.2			0.2			(0.1		)	0.2			0.1
Combined ratio	96.2			105.4			93.6		109.2			95.4			107.5			95.6			98.4			99.5
Catastrophes
Current year	2.7			7.6			1.3		13.5			0.4			11.8			2.9			3.9			5.0
Prior year	(0.8		)	(1.6		)	0.1		—			(0.3		)	(2.0		)	(0.4		)	(0.8		)	(0.9		)
Catastrophe ratio	1.8			6.0			1.4		13.6			0.1			9.9			2.4			3.1			4.1
Combined ratio before catastrophes	94.3			99.4			92.2		95.7			95.3			97.6			93.2			95.3			95.4
Combined ratio before catastrophes and prior year development	92.8			91.8			91.8		95.4			96.3			93.6			93.9			92.2			94.6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RESULTS



	THREE MONTHS ENDED																			NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1,567	$	1,533		$	1,645	$	1,454		$	1,552		$	1,516		$	1,687		$	4,745	$	4,755
Change in unearned premium reserve	4		(12		)	116		(114		)	(30		)	(36		)	130			108		64
Earned premiums	1,563		1,545			1,529		1,568			1,582			1,552			1,557			4,637		4,691
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	991		966			968		1,067			1,089			995			1,027			2,925		3,111
Current accident year catastrophes [2]	48		44			6		209			10			74			32			98		116
Prior year development [4]	26		37			8		18			15			19			20			71		54
Total losses and loss adjustment expenses	1,065		1,047			982		1,294			1,114			1,088			1,079			3,094		3,281
Amortization of DAC	226		226			227		234			231			231			231			679		693
Underwriting expenses	238		243			225		227			218			235			245			706		698
Dividends to policyholders [3]	4		4			4		6			5			5			(2		)	12		8
Underwriting gain (loss)	$	30	$	25		$	91	$	(193	)	$	14		$	(7	)	$	4		$	146	$	11


[1]	The three months ended September 30, 2013 and 2012 included current accident year reserve strengthening of $11 and $39, respectively, primarily related to auto liability claims in both

periods and workers' compensation business in 2012.


[2]	Included within current accident year catastrophes in the three months ended December 31, 2012 was $207 related to Storm Sandy.


[3]	The three months ended March 31, 2012 included a decrease in prior dividends of $8.


[4]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Auto liability	$	86		$	40		$	15		$	11		$	14		$	19		$	12		$	141		$	45
Professional liability	—			(30		)	1			—			22			9			9			(29		)	40
Package business	—			(3		)	(11		)	14			(2		)	(16		)	(16		)	(14		)	(34		)
General liability	(45		)	(10		)	(19		)	(11		)	(36		)	(24		)	(16		)	(74		)	(76		)
Fidelity and surety	—			—			(5		)	(12		)	(8		)	10			1			(5		)	3
Commercial property	(1		)	(2		)	(4		)	(3		)	1			4			(10		)	(7		)	(5		)
Uncollectible reinsurance	—			(25		)	—			—			—			—			—			(25		)	—
Workers’ compensation	(10		)	1			18			9			18			43			8			9			69
Workers’ compensation - NY 25a Fund for Reopened Cases	—			80			—			—			—			—			—			80			—
Change in workers' compensation discount, including accretion	8			7			8			7			8			8			29			23			45
Catastrophes [a.]	(12		)	(9		)	—			1			(2		)	(39		)	3			(21		)	(38		)
Other reserve re-estimates, net [b.]	—			(12		)	5			2			—			5			—			(7		)	5
Total prior year development	$	26		$	37		$	8		$	18		$	15		$	19		$	20		$	71		$	54


a.	The three months ended September 30, 2013 and June 30, 2013 included reserve releases of $12 and $15, respectively, primarily related to Storm Sandy. The three months ended

June 30, 2012 included one time reserve releases on certain prior year catastrophes primarily related to 2001 World Trade Center workers’ compensation claims.


b.	The three months ended June 30, 2013 included an $18 recovery related to a class action settlement with American International Group involving prior accident years involuntary

workers compensation pool loss and loss adjustment expense.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	30		$	25		$	91	$	(193	)	$	14		$	(7	)	$	4		$	146		$	11
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	63.4			62.5			63.3		68.0			68.8			64.1			66.0			63.1			66.3
Current accident year catastrophes [2]	3.1			2.8			0.4		13.3			0.6			4.8			2.1			2.1			2.5
Prior year development [3]	1.7			2.4			0.5		1.1			0.9			1.2			1.3			1.5			1.2
Total losses and loss adjustment expenses	68.1			67.8			64.2		82.5			70.4			70.1			69.3			66.7			69.9
Expenses	29.7			30.4			29.6		29.4			28.4			30.0			30.6			29.9			29.7
Policyholder dividends	0.3			0.3			0.3		0.4			0.3			0.3			(0.1		)	0.3			0.2
Combined ratio	98.1			98.4			94.0		112.3			99.1			100.5			99.7			96.9			99.8
Catastrophes
Current year [2]	3.1			2.8			0.4		13.3			0.6			4.8			2.1			2.1			2.5
Prior year	(0.8		)	(0.6		)	—		0.1			(0.1		)	(2.5		)	0.2			(0.5		)	(0.8		)
Catastrophe ratio	2.3			2.3			0.4		13.4			0.5			2.3			2.2			1.7			1.7
Combined ratio before catastrophes	95.8			96.1			93.7		98.9			98.6			98.2			97.5			95.2			98.1
Combined ratio before catastrophes and prior year development	93.3			93.1			93.1		97.8			97.5			94.5			96.4			93.2			96.1

[1]

The three months ended September 30, 2013 included current accident year reserve strengthening of 0.7 points primarily related to auto liability claims. The three months ended December 31, 2012 included current accident year reserve strengthening of 1.8 points, primarily related to workers’ compensation business. The three months ended September 30, 2012 included current accident year reserve strengthening of 2.5 points, primarily related to workers' compensation business and auto liability claims.


[2]	Included in current accident year catastrophes in the three months ended December 31, 2012 was 13.2 points related to Storm Sandy.


[3]	For a summary of (favorable) unfavorable prior year loss reserve development, refer to footnote 3 on page 11.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
WRITTEN PREMIUMS
Small Commercial	$	740		$	787		$	842		$	705		$	728		$	769		$	815		$	2,369		$	2,312
Middle Market	570			518			546			545			557			512			581			1,634			1,650
Specialty	248			219			248			195			259			227			283			715			769
Other	9			9			9			9			8			8			8			27			24
Total	$	1,567		$	1,533		$	1,645		$	1,454		$	1,552		$	1,516		$	1,687		$	4,745		$	4,755
EARNED PREMIUMS
Small Commercial	$	769		$	763		$	754		$	760		$	755		$	738		$	726		$	2,286		$	2,219
Middle Market	545			540			530			559			565			562			577			1,615			1,704
Specialty	240			233			236			243			253			244			245			709			742
Other	9			9			9			6			9			8			9			27			26
Total	$	1,563		$	1,545		$	1,529		$	1,568		$	1,582		$	1,552		$	1,557		$	4,637		$	4,691
SMALL COMMERCIAL
Combined ratio	92.4			94.5			89.9			111.2			93.6			94.8			97.3			92.3			95.2
Combined ratio before catastrophes	89.9			91.8			88.2			96.5			93.0			88.7			93.1			89.9			91.6
Combined ratio before catastrophes and prior year development	87.1			87.6			89.2			92.8			92.6			87.1			91.8			88.0			90.5
MIDDLE MARKET
Combined ratio	102.7			101.7			91.6			117.1			103.5			104.1			98.8			98.7			102.1
Combined ratio before catastrophes	99.7			99.3			93.2			99.6			103.7			102.5			97.6			97.4			101.2
Combined ratio before catastrophes and prior year development	95.9			95.2			95.8			99.0			100.7			98.4			99.2			95.6			99.4
SPECIALTY
Combined ratio	111.0			113.8			112.6			104.9			117.4			107.9			108.2			112.4			111.2
Combined ratio before catastrophes	110.9			113.4			111.8			104.4			116.1			115.1			108.8			112.0			113.4
Combined ratio before catastrophes and prior year development	103.0			105.7			98.9			111.2			105.0			106.5			102.9			102.5			104.8
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Standard Commercial Lines	8		%	8		%	8		%	8		%	8		%	7		%	7		%	8		%	7		%
Policy Count Retention
Small Commercial	81		%	80		%	82		%	83		%	84		%	82		%	84		%	81		%	83		%
Middle Market	80		%	79		%	77		%	79		%	78		%	73		%	79		%	79		%	77		%
New Business Premium $
Small Commercial	$	115		$	125		$	134		$	109		$	109		$	135		$	145		$	374		$	389
Middle Market	$	107		$	116		$	97		$	80		$	86		$	78		$	91		$	320		$	255
Policies in Force
Small Commercial	1,180,919			1,180,980			1,185,222			1,187,472			1,191,451			1,188,147			1,179,995
Middle Market	73,613			74,472			74,645			75,871			77,372			78,676			81,159

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
UNDERWRITING RESULTS	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Written premiums	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
Change in unearned premium reserve	63			59			(18		)	(52		)	48			46			(48		)	104			46
Earned premiums	925			908			896			911			912			904			909			2,729			2,725
Losses and loss adjustment expenses
Current accident year before catastrophes	616			585			568			593			628			595			574			1,769			1,797
Current accident year catastrophes [1]	18			142			26			126			—			216			39			186			255
Prior year development [2]	(11		)	(32		)	4			(14		)	(49		)	(23		)	(55		)	(39		)	(127		)
Total losses and loss adjustment expenses	623			695			598			705			579			788			558			1,916			1,925
Amortization of DAC	82			83			83			83			82			84			83			248			249
Underwriting expenses	145			139			143			144			141			146			150			427			437
Underwriting gain (loss)	$	75		$	(9	)	$	72		$	(21	)	$	110		$	(114	)	$	118		$	138		$	114


[1]	Included within current accident year catastrophes in the three months ended December 31, 2012 was $143 related to Storm Sandy.


[2]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Auto liability	$	—		$	2		$	—		$	(2	)	$	(38	)	$	(11	)	$	(30	)	$	2		$	(79	)
Homeowners	1			(2		)	(8		)	(22		)	(4		)	(1		)	(5		)	(9		)	(10		)
Catastrophes [a.]	(8		)	(31		)	2			—			(6		)	(9		)	(14		)	(37		)	(29		)
Other reserve re-estimates, net	(4		)	(1		)	10			10			(1		)	(2		)	(6		)	5			(9		)
Total prior year development	$	(11	)	$	(32	)	$	4		$	(14	)	$	(49	)	$	(23	)	$	(55	)	$	(39	)	$	(127	)

[a.] The three months ended September 30, 2013 and June 30, 2013 included releases of $3 and $20 related to Storm Sandy.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	75		$	(9	)	$	72	$	(21	)	$	110		$	(114	)	$	118		$	138		$	114
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	66.6			64.4			63.4		65.1			68.9			65.8			63.1			64.8			65.9
Current accident year catastrophes [1]	1.9			15.6			2.9		13.8			—			23.9			4.3			6.8			9.4
Prior year development [2]	(1.2		)	(3.5		)	0.4		(1.5		)	(5.4		)	(2.5		)	(6.1		)	(1.4		)	(4.7		)
Total losses and loss adjustment expenses	67.4			76.5			66.7		77.4			63.5			87.2			61.4			70.2			70.6
Expenses	24.5			24.4			25.2		24.9			24.5			25.4			25.6			24.7			25.2
Combined ratio	91.9			101.0			92.0		102.3			87.9			112.6			87.0			94.9			95.8
Catastrophes
Current year [1]	1.9			15.6			2.9		13.8			—			23.9			4.3			6.8			9.4
Prior year	(0.9		)	(3.4		)	0.2		—			(0.7		)	(1.0		)	(1.5		)	(1.4		)	(1.1		)
Catastrophe ratio	1.1			12.2			3.1		13.8			(0.7		)	22.9			2.8			5.5			8.3
Combined ratio before catastrophes	90.8			88.8			88.8		88.5			88.6			89.7			84.3			89.5			87.5
Combined ratio before catastrophes and prior year development	91.1			88.9			88.6		90.0			93.3			91.3			88.8			89.6			91.1
PRODUCT
Automobile
Combined ratio	96.3			94.6			96.0		109.4			93.9			98.8			88.4			95.6			93.7
Combined ratio before catastrophes and prior year development	96.8			93.8			93.3		100.5			100.1			96.0			93.8			94.6			96.6
Homeowners
Combined ratio	81.2			115.0			82.7		86.1			74.5			144.1			83.8			92.9			100.6
Combined ratio before catastrophes and prior year development	77.6			77.9			77.9		65.7			78.2			80.2			77.4			77.8			78.6


[1]	Included in current accident year catastrophes in the three months ended December 31, 2012 was 15.7 points related to Storm Sandy.


[2]	Refer to footnote 2 on page 14 for a summary of (favorable) unfavorable prior year loss reserve development.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	725		$	718		$	647		$	623		$	714		$	710		$	633		$	2,090		$	2,057
AARP Agency	62			52			45			40			37			32			27			159			96
Other Agency	187			182			173			181			196			194			186			542			576
Other	14			15			13			15			13			14			15			42			42
Total	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
EARNED PREMIUMS
AARP Direct	$	682		$	673		$	662		$	674		$	679		$	671		$	676		$	2,017		$	2,026
AARP Agency	47			41			35			32			27			23			19			123			69
Other Agency	182			181			184			188			194			195			201			547			590
Other	14			13			15			17			12			15			13			42			40
Total	$	925		$	908		$	896		$	911		$	912		$	904		$	909		$	2,729		$	2,725
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	668		$	657		$	629		$	595		$	650		$	649		$	620		$	1,954		$	1,919
Homeowners	320			310			249			264			310			301			241			879			852
Total	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
EARNED PREMIUMS
Automobile	$	637		$	626		$	619		$	632		$	632		$	630		$	632		$	1,882		$	1,894
Homeowners	288			282			277			279			280			274			277			847			831
Total	$	925		$	908		$	896		$	911		$	912		$	904		$	909		$	2,729		$	2,725
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Automobile	5		%	5		%	5		%	5		%	4		%	4		%	4		%	5		%	4		%
Homeowners	8		%	7		%	6		%	6		%	6		%	6		%	6		%	7		%	6		%
Policy Count Retention
Automobile	86		%	86		%	86		%	86		%	85		%	84		%	84		%	86		%	85		%
Homeowners	86		%	87		%	87		%	88		%	87		%	86		%	85		%	87		%	86		%
Premium Retention
Automobile	88		%	88		%	88		%	87		%	87		%	86		%	84		%	88		%	86		%
Homeowners	92		%	92		%	92		%	91		%	91		%	90		%	89		%	92		%	90		%
New Business Premium $
Automobile	$	100		$	93		$	87		$	77		$	84		$	85		$	86		$	280		$	255
Homeowners	$	35		$	34		$	30		$	30		$	32		$	30		$	25		$	99		$	87
Policies in Force
Automobile	2,021,480			2,019,678			2,018,628			2,015,323			2,029,078			2,044,874			2,065,317
Homeowners	1,320,833			1,321,824			1,322,290			1,319,101			1,321,149			1,323,557			1,330,117

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1		$	1		$	—		$	1		$	—		$	6		$	1		$	2		$	7
Change in unearned premium reserve	1			1			—			1			—			8			1			2			9
Earned premiums	—			—			—			—			—			(2		)	—			—			(2		)
Losses and loss adjustment expenses
Prior year development [1]	2			141			2			5			1			53			6			145			60
Total losses and loss adjustment expenses	2			141			2			5			1			53			6			145			60
Underwriting expenses	8			7			7			10			8			7			8			22			23
Underwriting loss	$	(10	)	$	(148	)	$	(9	)	$	(15	)	$	(9	)	$	(62	)	$	(14	)	$	(167	)	$	(85	)


[1]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Asbestos	$	—	$	130	$	—	$	—	$	—	$	48	$	—	$	130	$	48
Environmental	1		10		1		2		—		3		5		12		8
Other reserve re-estimates, net	1		1		1		3		1		2		1		3		4
Total prior year development	$	2	$	141	$	2	$	5	$	1	$	53	$	6	$	145	$	60

GROUP BENEFITS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	817		$	823		$	812		$	915		$	926		$	950		$	957		$	2,452		$	2,833
Fee income	14			15			14			16			15			16			15			43			46
Net investment income	96			100			97			101			98			107			99			293			304
Net realized capital gains (losses)	(8		)	37			18			9			11			—			20			47			31
Total revenues	919			975			941			1,041			1,050			1,073			1,091			2,835			3,214
Benefits, losses and loss adjustment expenses	637			635			639			717			746			759			807			1,911			2,312
Amortization of DAC	8			8			8			8			9			8			8			24			25
Insurance operating costs and other expenses	237			248			240			256			257			261			258			725			776
Restructuring and other costs	—			—			—			—			1			—			—			—			1
Total benefits and expenses	882			891			887			981			1,013			1,028			1,073			2,660			3,114
Income from continuing operations before income taxes	37			84			54			60			37			45			18			175			100
Income tax expense	6			23			12			14			7			10			—			41			17
Net income	31			61			42			46			30			35			18			134			83
Less: Net realized capital gains (losses), after tax, excluded from core earnings	(5		)	24			12			7			7			1			13			31			21
Core earnings	$	36		$	37		$	30		$	39		$	23		$	34		$	5		$	103		$	62
After-tax margin (excluding buyouts)
Net income	3.4		%	6.3		%	4.5		%	4.4		%	2.9		%	3.3		%	1.7		%	4.7		%	2.6		%
Core earnings	3.9		%	3.9		%	3.2		%	3.8		%	2.2		%	3.2		%	0.5		%	3.7		%	2.0		%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
PREMIUMS
Fully insured ongoing premiums
Group disability	$	343		$	355		$	345		$	411		$	411		$	423		$	428		$	1,043		$	1,262
Group life	435			427			426			456			468			478			476			1,288			1,422
Other	39			40			41			48			47			49			50			120			146
Total fully insured ongoing premiums	$	817		$	822		$	812		$	915		$	926		$	950		$	954		$	2,451		$	2,830
Total buyouts [1]	—			1			—			—			—			—			3			1			3
Total premiums	817			823			812			915			926			950			957			2,452			2,833
Group disability premium equivalents [2]	104			100			106			111			114			111			110			310			335
Total premiums and premium equivalents	$	921		$	923		$	918		$	1,026		$	1,040		$	1,061		$	1,067		$	2,762		$	3,168
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	32		$	46		$	76		$	25		$	25		$	27		$	86		$	154		$	138
Group life	28			55			88			28			24			37			135			171			196
Other	3			2			5			3			6			2			7			10			15
Total fully insured ongoing sales	63			103			169			56			55			66			228			335			349
Total buyouts [1]	—			1			—			—			—			1			2			1			3
Total sales	63			104			169			56			55			67			230			336			352
Group disability premium equivalents [2]	5			18			15			8			7			3			31			38			41
Total sales and premium equivalents	$	68		$	122		$	184		$	64		$	62		$	70		$	261		$	374		$	393
RATIOS [3]
Loss ratio
Group disability loss ratio	87.9		%	82.7		%	89.9		%	85.8		%	91.5		%	93.1		%	98.2		%	86.8		%	94.3		%
Group life loss ratio	68.2		%	70.8		%	68.1		%	70.0		%	69.4		%	66.5		%	70.3		%	69.0		%	68.7		%
Total loss ratio	76.7		%	75.7		%	77.4		%	77.0		%	79.3		%	78.6		%	83.0		%	76.6		%	80.3		%
Expense ratio	29.5		%	30.6		%	30.0		%	28.4		%	28.4		%	27.8		%	27.5		%	30.0		%	27.9		%
GAAP RESERVES, NET OF REINSURANCE RECOVERABLES [4]
Group disability	$	5,169		$	5,207		$	5,267		$	5,321		$	5,346		$	5,348		$	5,342
Group life	1,099			1,110			1,116			1,164			1,151			1,159			1,174
Other	70			68			68			75			71			73			75
Total GAAP reserves	$	6,338		$	6,385		$	6,451		$	6,560		$	6,568		$	6,580		$	6,591


[1]	Takeover of open claim liabilities and other non-recurring premium amounts.


[2]	Administrative service only fees and claims under claim management agreements.


[3]	Ratios calculated include fee income and exclude the effects of buyout premiums.


[4]	Reinsurance recoverables were $269, $260, $250, $252, $254, $244 and $239 as of September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

MUTUAL FUNDS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Fee income	$	171		$	170		$	164		$	152		$	148		$	148		$	151		$	505		$	447
Net investment loss	—			—			—			(1		)	(1		)	—			(1		)	—			(2		)
Net realized capital gains (losses)	—			—			—			—			1			(2		)	1			—			—
Total revenues	171			170			164			151			148			146			151			505			445
Amortization of DAC	11			10			9			9			8			9			9			30			26
Insurance operating costs and other expenses [1]	132			128			126			118			112			108			111			386			331
Restructuring and other costs	(1		)	1			1			1			1			1			—			1			2
Total benefits and expenses	142			139			136			128			121			118			120			417			359
Income before income taxes	29			31			28			23			27			28			31			88			86
Income tax expense	10			11			10			8			9			10			11			31			30
Net income	19			20			18			15			18			18			20			57			56
Less: Restructuring and other costs, after tax	1			(1		)	(1		)	(1		)	(1		)	(1		)	—			(1		)	(2		)
Less: Net realized capital gains (losses), after tax, excluded from core earnings	—			1			(1		)	—			—			—			—			—			—
Core earnings	$	18		$	20		$	20		$	16		$	19		$	19		$	20		$	58		$	58
Return on assets (bps, after tax)
Net income	8.4			8.8			8.0			6.8			8.3			8.1			9.0			8.4			8.6
Core earnings	8.0			8.8			8.9			7.3			8.7			8.5			9.0			8.6			8.9


[1]	Includes compensation to servicing intermediaries of approximately $5 for the first, second and third quarters of 2013 related to on-going business with the Company's Retirement

Plans and Individual Life businesses sold in January 2013; prior to the first quarter of 2013, compensation to servicing intermediaries was presented as a reduction to fee income.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

SUPPLEMENTAL DATA — ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT — BY DISTRIBUTION CHANNEL



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
RETAIL MUTUAL FUNDS [1]
Beginning balance	$	47,617		$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	41,785		$	45,013		$	41,785
Sales	2,864			2,789			3,162			2,433			2,136			2,031			2,210			8,815			6,377
Redemptions	(2,901		)	(4,075		)	(3,176		)	(2,726		)	(2,436		)	(2,856		)	(3,069		)	(10,152		)	(8,361		)
Net flows	(37		)	(1,286		)	(14		)	(293		)	(300		)	(825		)	(859		)	(1,337		)	(1,984		)
Change in market value and other [2]	2,358			717			3,187			1,039			1,902			(1,825		)	4,389			6,262			4,466
Ending balance	$	49,938		$	47,617		$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	49,938		$	44,267
DEFINED CONTRIBUTION INVESTMENT ONLY MUTUAL FUNDS [3]
Beginning balance	$	15,991		$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	16,140		$	16,598		$	16,140
Sales	923			937			942			720			662			793			856			2,802			2,311
Redemptions	(1,531		)	(2,590		)	(1,426		)	(1,484		)	(1,144		)	(1,386		)	(1,157		)	(5,547		)	(3,687		)
Net flows	(608		)	(1,653		)	(484		)	(764		)	(482		)	(593		)	(301		)	(2,745		)	(1,376		)
Change in market value and other	1,438			22			1,508			347			819			(674		)	2,106			2,968			2,251
Ending balance	$	16,821		$	15,991		$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	16,821		$	17,015
TOTAL MUTUAL FUNDS
Beginning balance	$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	57,925		$	61,611		$	57,925
Sales	3,787			3,726			4,104			3,153			2,798			2,824			3,066			11,617			8,688
Redemptions [4]	(4,432		)	(6,665		)	(4,602		)	(4,210		)	(3,580		)	(4,242		)	(4,226		)	(15,699		)	(12,048		)
Net flows	(645		)	(2,939		)	(498		)	(1,057		)	(782		)	(1,418		)	(1,160		)	(4,082		)	(3,360		)
Change in market value and other	3,796			739			4,695			1,386			2,721			(2,499		)	6,495			9,230			6,717
Ending balance	$	66,759		$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	66,759		$	61,282
AVERAGE MUTUAL FUNDS ASSETS UNDER MANAGEMENT	$	65,183		$	64,708		$	63,710		$	61,447		$	60,313		$	61,302		$	60,593		$	64,185		$	59,603
ANNUITY MUTUAL FUND ASSETS [5]	$	25,638		$	25,901		$	26,628		$	26,036		$	26,839		$	26,888		$	29,145		$	25,638		$	26,839
TOTAL ASSETS UNDER MANAGEMENT	$	92,397		$	89,509		$	92,436		$	87,647		$	88,121		$	86,231		$	92,405		$	92,397		$	88,121
AVERAGE ASSETS UNDER MANAGEMENT	$	90,953		$	90,973		$	90,042		$	87,884		$	87,176		$	89,318		$	88,972		$	90,022		$	86,830

[1]Includes mutual funds offered within 529 college savings plans.

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

[3]Includes mutual funds offered within employee directed retirement plans including on-going business related to the Company's Retirement Plans and Individual Life businesses sold in January 2013.

[4]Includes an institutional redemption as well as a portfolio rebalance at a key distributor, together totaling $2.5 billion in the second quarter of 2013.

[5]Includes Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

SUPPLEMENTAL DATA — ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT — BY ASSET CLASS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
EQUITY
Beginning balance	$	36,186		$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	35,489		$	35,843		$	35,489
Sales	1,591			1,446			1,559			1,117			1,047			1,275			1,416			4,596			3,738
Redemptions	(2,054		)	(4,821		)	(2,951		)	(2,562		)	(2,239		)	(2,750		)	(2,725		)	(9,826		)	(7,714		)
Net flows	(463		)	(3,375		)	(1,392		)	(1,445		)	(1,192		)	(1,475		)	(1,309		)	(5,230		)	(3,976		)
Change in market value and other	3,334			1,108			4,002			947			1,839			(2,332		)	5,321			8,444			4,828
Ending balance	$	39,057		$	36,186		$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	39,057		$	36,341
FIXED INCOME
Beginning balance	$	14,944		$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	13,064		$	14,524		$	13,064
Sales	1,507			1,432			1,755			1,366			1,109			884			954			4,694			2,947
Redemptions	(1,802		)	(1,323		)	(1,133		)	(1,042		)	(828		)	(1,056		)	(1,027		)	(4,258		)	(2,911		)
Net flows	(295		)	109			622			324			281			(172		)	(73		)	436			36
Change in market value and other	(54		)	(378		)	67			259			379			132			330			(365		)	841
Ending balance	$	14,595		$	14,944		$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	14,595		$	13,941
MULTI-STRATEGY INVESTMENTS [1]
Beginning balance	$	12,478		$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	9,372		$	11,244		$	9,372
Sales	689			848			790			670			642			665			696			2,327			2,003
Redemptions	(576		)	(521		)	(518		)	(606		)	(513		)	(436		)	(474		)	(1,615		)	(1,423		)
Net flows	113			327			272			64			129			229			222			712			580
Change in market value and other	516			9			626			180			503			(299		)	844			1,151			1,048
Ending balance	$	13,107		$	12,478		$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	13,107		$	11,000
TOTAL MUTUAL FUNDS [2]	$	66,759		$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	66,759		$	61,282


[1]	Includes balanced, allocation, target date and alternatives.


[2]	Excludes annuity mutual fund assets.

TALCOTT RESOLUTION

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
NET INCOME (LOSS)
U.S. Annuity	$	69		$	23		$	63		$	35		$	188		$	(19	)	198			$	155		$	367
International Annuity [1]	(80		)	(407		)	(490		)	(176		)	(79		)	402			(465		)	(977		)	(142		)
Institutional	—			3			25			3			27			13			52			28			92
Other [2] [3]	18			49			108			(10		)	(257		)	44			45			175			(168		)
Talcott Resolution net income (loss)	7			(332		)	(294		)	(148		)	(121		)	440			(170		)	(619		)	149
Less: Unlock benefit (charge), after tax	(67		)	36			(541		)	39			(79		)	(146		)	214			(572		)	(11		)
Less: Restructuring and other costs, after tax	(1		)	1			(1		)	(14		)	(21		)	(9		)	—			(1		)	(30		)
Less: Income (loss) from discontinued operations, after tax [1]	(6		)	(124		)	(1		)	—			22			8			37			(131		)	67
Less: Net reinsurance gain (loss) on dispositions, after tax	—			1			44			—			(270		)	—			—			45			(270		)
Less: Net realized gains (losses) and other, after tax and DAC, excluded from core earnings	(123		)	(442		)	43			(375		)	35			387			(637		)	(522		)	(215		)
Talcott Resolution core earnings [4]	$	204		$	196		$	162		$	202		$	192		$	200		$	216		$	562		$	608
CORE EARNINGS (LOSSES)
U.S. Annuity	$	89		$	79		$	73		$	96		$	74		$	80		$	96		$	241		$	250
International Annuity	91			96			69			63			73			65			71			256			209
Institutional	3			8			9			(6		)	(7		)	5			4			20			2
Other [2]	21			13			11			49			52			50			45			45			147
Talcott Resolution core earnings [4]	$	204		$	196		$	162		$	202		$	192		$	200		$	216		$	562		$	608
UNLOCK IMPACT on NET INCOME (LOSS)
U.S. Annuity	$	(99	)	$	(9	)	$	3		$	(90	)	$	(74	)	$	(43	)	$	90		$	(105	)	$	(27	)
International Annuity	37			45			(544		)	138			3			(100		)	125			(462		)	28
Institutional	—			—			—			—			6			—			—			—			6
Other [2]	(5		)	—			—			(9		)	(14		)	(3		)	(1		)	(5		)	(18		)
Talcott Resolution unlock impact on net income (loss)	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)


[1]	The three months ended June 30, 2013 includes an estimated loss on disposition of $102 and loss from discontinued operations of $22 for the period related to the U.K. variable annuity business.


[2]	Other consists of the PPLI, Retirement Plans and Individual Life businesses, as well as residual income or tax benefits associated with the reinsurance of the policyholder and separate account liabilities of the Retirement Plans and Individual Life businesses. The Retirement Plans and Individual Life businesses were sold in January 2013.


[3]	Includes derivative gains of $71 and $110 for the three months ended March 31, 2013 and December 31, 2012, respectively, primarily associated with previously terminated derivatives associated with fixed rate bonds sold in connection with the Retirement Plans and Individual Life business dispositions.


[4]	For further information regarding discontinued operations of the U.K. variable annuity business, refer to Basis of Presentation on page i.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
CORE EARNINGS - RETURN ON ASSETS (bps, after tax)
U.S. Annuity	49.0			42.3			38.4			50.1			38.1			39.6			46.8			43.5		42.2
Japan Annuity	135.4			133.1			88.4			77.4			90.5			76.1			83.9			117.7		82.7
FULL SURRENDER RATES
U.S. variable annuity	20.3		%	17.5		%	14.5		%	10.4		%	10.4		%	13.0		%	9.6		%	17.5	%	11.2	%
Japan variable annuity	30.8		%	34.8		%	9.6		%	3.7		%	3.0		%	3.9		%	2.8		%	24.6	%	3.2	%
CONTRACT COUNTS (in thousands)
U.S. variable annuity	802			839			873			904			929			956			989
U.S. fixed annuity and other	176			180			184			186			189			193			199
Japan variable annuity	341			368			400			411			417			421			427
Japan fixed annuity and other	24			25			26			27			27			28			30
ACCOUNT VALUE (end of period) [1]
U.S. variable annuity	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
U.S. fixed annuity and other	10,455			10,670			10,797			10,848			11,006			11,228			11,507
Total U.S. Annuity account value	$	71,967		$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742
Japan variable annuity	22,846			23,921			26,934			27,716			28,725			27,977			29,396
Japan fixed annuity and other	3,384			3,368			3,553			3,908			4,535			4,461			4,469
Total Japan Annuity account value	$	26,230		$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865


[1]	Talcott Resolution total account value (including the U.S. and Japan Annuity account value information presented above) is summarized as follows:



	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Other account value [a.]	107,935			102,719			104,534			104,259			107,492			$	106,421		$	108,909
Institutional	17,118			17,252			17,586			17,744			18,204			$	18,233		$	18,622
Institutional account value inter-segment funding	$	(1,201	)	$	(1,186	)	$	(1,171	)	$	(1,156	)	$	(1,346	)	$	(1,329	)	$	(1,312	)
Total account value	$	222,049		$	219,323		$	227,733		$	228,143		$	235,323		$	233,529		$	243,826

[a.] Other account value includes the Retirement Plans and Individual Life businesses sold in January 2013, PPLI and the discontinued U.K.

variable annuity business. Account values associated with the Retirement Plans, Individual Life and U.K. variable annuity businesses no

longer generate asset-based fee income due to the sale of these businesses.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

U.S. ANNUITY — SUPPLEMENTAL DATA — ACCOUNT VALUE ROLL FORWARD



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	68,760		$	64,824		$	68,760
Deposits	77			180			226			209			130			169			307			483			606
Partial withdrawals	(647		)	(630		)	(710		)	(815		)	(711		)	(780		)	(815		)	(1,987		)	(2,306		)
Full surrenders	(3,153		)	(2,805		)	(2,356		)	(1,717		)	(1,737		)	(2,251		)	(1,687		)	(8,314		)	(5,675		)
Death benefits/annuitizations/other [1]	(445		)	(472		)	(468		)	(459		)	(388		)	(397		)	(449		)	(1,385		)	(1,234		)
Transfers	(2		)	(1		)	1			(1		)	1			—			3			(2		)	4
Net flows	(4,170		)	(3,728		)	(3,307		)	(2,783		)	(2,705		)	(3,259		)	(2,641		)	(11,205		)	(8,605		)
Change in market value/change in reserve/interest credited and other	3,103			807			3,983			900			2,874			(2,438		)	6,116			7,893			6,552
Ending balance	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	61,512		$	66,707
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	10,670		$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	11,631		$	10,848		$	11,631
Deposits	—			2			6			7			9			16			46			8			71
Surrenders	(264		)	(161		)	(103		)	(167		)	(251		)	(298		)	(204		)	(528		)	(753		)
Death benefits/annuitizations/other [1]	(64		)	(72		)	(74		)	(109		)	(105		)	(106		)	(102		)	(210		)	(313		)
Transfers	(2		)	(3		)	—			—			2			(4		)	1			(5		)	(1		)
Net flows	(330		)	(234		)	(171		)	(269		)	(345		)	(392		)	(259		)	(735		)	(996		)
Change in market value/change in reserve/interest credited and other	115			107			120			111			123			113			135			342			371
Ending balance	$	10,455		$	10,670		$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	10,455		$	11,006
TOTAL U.S. ANNUITY
Beginning balance	$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	80,391		$	75,672		$	80,391
Deposits	77			182			232			216			139			185			353			491			677
Surrenders	(4,064		)	(3,596		)	(3,169		)	(2,699		)	(2,699		)	(3,329		)	(2,706		)	(10,829		)	(8,734		)
Death benefits/annuitizations/other [1]	(509		)	(544		)	(542		)	(568		)	(493		)	(503		)	(551		)	(1,595		)	(1,547		)
Transfers	(4		)	(4		)	1			(1		)	3			(4		)	4			(7		)	3
Net flows	(4,500		)	(3,962		)	(3,478		)	(3,052		)	(3,050		)	(3,651		)	(2,900		)	(11,940		)	(9,601		)
Change in market value/change in reserve/interest credited and other	3,218			914			4,103			1,011			2,997			(2,325		)	6,251			8,235			6,923
Ending balance	$	71,967		$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	71,967		$	77,713


[1]	Includes transfers from the accumulation phase to the annuitization phase.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

JAPAN ANNUITY — SUPPLEMENTAL DATA — ACCOUNT VALUE ROLL FORWARD



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	29,233		$	27,716		$	29,233
Surrenders	(1,842		)	(2,257		)	(694		)	(302		)	(255		)	(323		)	(250		)	(4,793		)	(828		)
Death benefits/annuitizations/other [1]	(258		)	(206		)	(220		)	(203		)	(179		)	(176		)	(173		)	(684		)	(528		)
Net flows	(2,100		)	(2,463		)	(914		)	(505		)	(434		)	(499		)	(423		)	(5,477		)	(1,356		)
Change in market value/change in reserve/interest credited	736			916			2,402			2,464			467			(1,829		)	2,586			4,054			1,224
Effect of currency translation	289			(1,466		)	(2,270		)	(2,968		)	715			909			(2,000		)	(3,447		)	(376		)
Ending balance [2]	$	22,846		$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	22,846		$	28,725
FIXED MARKET VALUE ADJUSTED ("MVA") AND OTHER
Beginning balance	$	3,368		$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	4,786		$	3,908		$	4,786
Surrenders	(28		)	(26		)	(41		)	(47		)	(58		)	(152		)	(47		)	(95		)	(257		)
Death benefits/annuitizations/other [1]	(15		)	(18		)	(13		)	(180		)	(3		)	(18		)	1			(46		)	(20		)
Net flows	(43		)	(44		)	(54		)	(227		)	(61		)	(170		)	(46		)	(141		)	(277		)
Change in market value/change in reserve/interest credited	18			28			37			42			22			23			40			83			85
Effect of currency translation	41			(169		)	(338		)	(442		)	113			139			(311		)	(466		)	(59		)
Ending balance	$	3,384		$	3,368		$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	3,384		$	4,535
TOTAL JAPAN ANNUITY
Beginning balance	$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	34,019		$	31,624		$	34,019
Surrenders	(1,870		)	(2,283		)	(735		)	(349		)	(313		)	(475		)	(297		)	(4,888		)	(1,085		)
Death benefits/annuitizations/other [1]	(273		)	(224		)	(233		)	(383		)	(182		)	(194		)	(172		)	(730		)	(548		)
Net flows	(2,143		)	(2,507		)	(968		)	(732		)	(495		)	(669		)	(469		)	(5,618		)	(1,633		)
Change in market value/change in reserve/interest credited	754			944			2,439			2,506			489			(1,806		)	2,626			4,137			1,309
Effect of currency translation	330			(1,635		)	(2,608		)	(3,410		)	828			1,048			(2,311		)	(3,913		)	(435		)
Ending balance	$	26,230		$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	26,230		$	33,260


[1]	Includes transfers from the accumulation phase to the annuitization phase.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA—ANNUITY DEATH AND LIVING BENEFITS



	AS OF:
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
U.S. Variable Annuity Business
S&P 500 index value at end of period	1,682			1,606			1,569			1,426			1,441			1,362			1,408

Total account value with guaranteed minimum death benefits (“GMDB”)	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
GMDB gross net amount of risk ("NAR")	4,657			5,195			5,349			6,610			7,187			8,998			7,698
% of GMDB NAR reinsured	75		%	72		%	72		%	67		%	66		%	62		%	65		%
GMDB retained NAR [2]	1,183			1,457			1,498			2,168			2,458			3,461			2,724
GMDB net GAAP liability	301			298			293			310			308			337			322

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	30,907		$	32,035		$	34,106		$	34,218		$	34,836		$	35,127		$	38,312
GMWB gross NAR	228			344			361			650			761			1,198			847
% of GMWB NAR reinsured	18		%	18		%	19		%	17		%	16		%	16		%	16		%
GMWB retained NAR [2]	187			282			293			540			636			1,009			711
GMWB net GAAP liability	158			513			651			1,022			1,179			1,790			1,355

Japan Variable Annuity Business
Yen / $	98.1			99.3			94.0			86.5			77.8			79.8			82.3
Yen / Euro	132.8			129.1			120.7			114.5			100.2			101.0			110.6

Total account value with GMDB	$	22,846		$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396
GMDB gross NAR	1,624			2,218			3,091			5,736			9,107			9,477			7,580
% of GMDB NAR reinsured	23		%	21		%	20		%	16		%	13		%	13		%	15		%
GMDB retained NAR	1,250			1,760			2,467			4,831			7,882			8,236			6,469

Total account value with guaranteed minimum income benefits (“GMIB”) [1]	$	21,102		$	22,174		$	25,129		$	25,960		$	26,917		$	26,119		$	27,350
GMIB retained NAR [2]	509			851			1,280			3,316			6,092			6,470			4,785
GMDB/GMIB net GAAP liability	336			383			468			621			874			847			704


[1]	Total GMIB account value also includes other living benefits.

[2]

Policies with a guaranteed living benefit (a GMWB in the U.S., or a GMIB in Japan) also have a guaranteed death benefit. The net amount at risk (“NAR”) for each benefit is shown. These benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or, by contract, the GMDB NAR is reduced to zero. When a policy goes into benefit status on a GMIB, its GMDB NAR is released.

CORPORATE

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Fee income	$	2		$	2		$	3		$	25		$	45		$	45		$	52		$	7		$	142
Net investment income	6			—			13			26			8			3			(6		)	19			5
Other revenues	—			—			—			1			—			—			—			—			—
Net realized capital gains (losses)	(5		)	10			(96		)	84			9			17			15			(91		)	41
Total revenues	3			12			(80		)	136			62			65			61			(65		)	188
Benefits, losses and loss adjustment expenses (income)	—			—			—			—			1			(1		)	—			—			—
Insurance operating costs and other expenses [1]	(60		)	14			26			48			57			63			76			(20		)	196
Loss on extinguishment of debt [2]	—			—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [3]	—			—			69			—			118			—			—			69			118
Interest expense	94			100			107			109			109			115			124			301			348
Restructuring and other costs	14			19			16			67			17			28			9			49			54
Total benefits and expenses	48			133			431			224			302			1,115			209			612			1,626
Loss before income taxes	(45		)	(121		)	(511		)	(88		)	(240		)	(1,050		)	(148		)	(677		)	(1,438		)
Income tax benefit	(17		)	(46		)	(153		)	(49		)	(44		)	(372		)	(52		)	(216		)	(468		)
Net loss	(28		)	(75		)	(358		)	(39		)	(196		)	(678		)	(96		)	(461		)	(970		)
Less: Restructuring and other costs, after tax	(9		)	(12		)	(10		)	(43		)	(11		)	(18		)	(6		)	(31		)	(35		)
Less: Loss on extinguishment of debt, after tax [2]	—			—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance loss on dispositions, after tax [3]	—			—			(69		)	—			(118		)	—			—			(69		)	(118		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core losses	(3		)	6			(68		)	59			9			7			12			(65		)	28
Core losses	$	(16	)	$	(69	)	$	(73	)	$	(55	)	$	(76	)	$	(80	)	$	(102	)	$	(158	)	$	(258	)


[1]	In the third quarter of 2013 insurance operating costs and other expenses include a benefit of $57, before tax, for an insurance recovery from the Company's insurers for past legal expenses associated with closed litigation and a benefit of $19, before tax, from the resolution of items under the Company's spin-off agreement with its former parent company.

[2]

In the first quarter of 2013 the Company repurchased approximately $800 of outstanding senior notes and debentures. In the second quarter of 2012 the Company repurchased all outstanding 10% fixed-to-floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz. Loss on extinguishment of debt consists of the premium associated with repurchasing the debentures at an amount greater than the face amount, the write-off of the unamortized discount and debt issuance and other costs related to the repurchase transactions.


[3]	In the first quarter of 2013 reinsurance loss on dispositions consists of a reduction in goodwill related to the sale of the Retirement Plans business. In the third quarter of 2012, reinsurance loss on dispositions consists of a goodwill impairment charge related to the sale of the Individual Life business.

INVESTMENTS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

CONSOLIDATED



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	540		548		554		708		710		725		735		1,642		2,170
Tax-exempt	117		116		116		117		118		119		120		349		357
Total fixed maturities	657		664		670		825		828		844		855		1,991		2,527
Equity securities, trading	878		1,189		2,562		2,630		635		(1,662	)	2,761		4,629		1,734
Equity securities, available-for-sale	7		8		6		14		5		8		10		21		23
Mortgage loans	65		62		65		84		88		86		79		192		253
Policy loans	20		22		20		29		30		30		30		62		90
Limited partnerships and other alternative investments [2]	46		95		66		44		28		72		52		207		152
Other [3]	47		45		58		71		75		82		69		150		226
Subtotal	1,720		2,085		3,447		3,697		1,689		(540	)	3,856		7,252		5,005
Investment expense	(30	)	(29	)	(29	)	(29	)	(26	)	(28	)	(28	)	(88	)	(82	)
Total net investment income	1,690		2,056		3,418		3,668		1,663		(568	)	3,828		7,164		4,923
Less: Equity securities, trading	878		1,189		2,562		2,630		635		(1,662	)	2,761		4,629		1,734
Total net investment income excluding trading securities	812		867		856		1,038		1,028		1,094		1,067		2,535		3,189
Annualized investment yield, before-tax [4] [5]	4.2	%	4.4	%	4.3	%	4.3	%	4.2	%	4.5	%	4.4	%	4.3	%	4.4	%
Annualized investment yield, after tax [4]	2.9	%	3.1	%	3.0	%	2.9	%	2.9	%	3.1	%	3.0	%	3.0	%	3.0	%


[1]	Includes income on short-term bonds.


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


[3]	Primarily represents income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

[4]

Yields calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, repurchase agreement and dollar roll collateral, and consolidated variable interest entity non-controlling interests. Yield calculations for the three months ended March 31, 2013 and nine months ended September 30, 2013 exclude assets transfered due to the sale of the Retirement Plans and Individual Life businesses. Yield calculations for all periods exclude income and assets associated with the disposal of the Hartford Life International Limited business.


[5]	Current quarter annualized investment yield, before tax, of 4.2% was higher than the third quarter 2012 annualized yield excluding the impact of the sale of the Retirement Plans and Individual Life businesses of 4.0%.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

PROPERTY & CASUALTY



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	168		175		172		175		171		175		183		515		529
Tax-exempt	92		91		92		92		93		94		94		275		281
Total fixed maturities	260		266		264		267		264		269		277		790		810
Equity securities, available-for-sale	3		4		2		4		3		4		4		9		11
Mortgage loans	13		11		12		12		12		12		10		36		34
Limited partnerships and other alternative investments [2]	20		50		39		19		15		31		26		109		72
Other [3]	9		16		3		9		8		10		7		28		25
Subtotal	305		347		320		311		302		326		324		972		952
Investment expense	(9	)	(9	)	(8	)	(10	)	(7	)	(7	)	(7	)	(26	)	(21	)
Total net investment income	296		338		312		301		295		319		317		946		931
Annualized investment yield, before-tax [4]	4.2	%	4.8	%	4.5	%	4.3	%	4.2	%	4.6	%	4.5	%	4.5	%	4.4	%
Annualized investment yield, after tax [4]	3.1	%	3.6	%	3.5	%	3.1	%	3.2	%	3.4	%	3.4	%	3.4	%	3.3	%


[1]	Includes income on short-term bonds.


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


[3]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.


[4]	Yields calculated using annualized net investment income divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, repurchase agreement

and dollar roll collateral, consolidated variable interest entity non-controlling interests, and derivatives book value.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME BY SEGMENT

CONSOLIDATED



	THREE MONTHS ENDED																		NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Commercial Markets	$	230	$	262	$	240	$	228		$	222		$	239		$	235		$	732	$	696
Consumer Markets	33		39		37		37			38			41			43			109		122
P&C Other Operations	33		37		35		36			35			39			39			105		113
Total Property & Casualty	296		338		312		301			295			319			317			946		931
Group Benefits	96		100		97		101			98			107			99			293		304
Mutual Funds	—		—		—		(1		)	(1		)	—			(1		)	—		(2		)
Talcott Resolution [1]	1,292		1,618		2,996		3,241			1,263			(997		)	3,419			5,906		3,685
Corporate	6		—		13		26			8			3			(6		)	19		5
Total net investment income	1,690		2,056		3,418		3,668			1,663			(568		)	3,828			7,164		4,923
Less: Equity securities, trading	878		1,189		2,562		2,630			635			(1,662		)	2,761			4,629		1,734
Total net investment income excluding trading securities	$	812	$	867	$	856	$	1,038		$	1,028		$	1,094		$	1,067		$	2,535	$	3,189

[1] Includes equity securities, trading.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Net Realized Capital Gains (Losses)
Gross gains on sales [1]	$	106		$	211		$	1,717		$	155		$	194		$	245		$	227		2,034			666
Gross losses on sales	(139		)	(118		)	(82		)	(54		)	(131		)	(158		)	(97		)	(339		)	(386		)
Net impairment losses [2]	(26		)	(12		)	(21		)	(185		)	(37		)	(98		)	(29		)	(59		)	(164		)
Valuation allowances on mortgage loans	—			—			—			13			—			—			1			—			1
Japan fixed annuity contract hedges, net [3]	(8		)	1			3			6			(24		)	2			(20		)	(4		)	(42		)
Periodic net coupon settlements on credit derivatives/Japan [4]	3			—			(6		)	(11		)	2			4			(5		)	(3		)	1
Results of variable annuity hedge program
U.S. GMWB derivatives, net	203			(31		)	47			68			381			(115		)	185			219			451
U.S. macro hedge	(50		)	(47		)	(85		)	(48		)	(109		)	6			(189		)	(182		)	(292		)
Total U.S. program	153			(78		)	(38		)	20			272			(109		)	(4		)	37			159
International program	(286		)	(742		)	(171		)	(810		)	(176		)	720			(1,201		)	(1,199		)	(657		)
Total results of variable annuity hedge program	(133		)	(820		)	(209		)	(790		)	96			611			(1,205		)	(1,162		)	(498		)
Other net gain (loss) [5]	35			90			204			388			(5		)	(39		)	200			329			156
Total net realized capital gains (losses), before tax and DAC	$	(162	)	$	(648	)	$	1,606		$	(478	)	$	95		$	567		$	(928	)	$	796		$	(266	)
Less: Realized gain on dispositions, before tax	—			1			1,574			—			—			—			—			1,575			—
Less: Realized gains (losses), included in core earnings, before tax	4			2			(5		)	(10		)	9			9			(1		)	1			17
Total net realized capital gains (losses) and other, before tax and DAC, excluded from core earnings (losses)	(166		)	(651		)	37			(468		)	86			558			(927		)	(780		)	(283		)
Less: Impacts of DAC	28			(6		)	(6		)	(31		)	(6		)	(25		)	(44		)	16			(75		)
Less: Impacts of tax	(64		)	(232		)	24			(155		)	31			201			(312		)	(272		)	(80		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings (losses)	$	(130	)	$	(413	)	$	19		$	(282	)	$	61		$	382		$	(571	)	$	(524	)	$	(128	)


[1]	Includes $1.5 billion of gains for the three months ended March 31, 2013 and nine months ended September 30, 2013 relating to the sales of the Retirement Plans and Individual Life businesses.


[2]	Includes $177 of intent-to-sell impairments for the three months ended December 31, 2012 relating to the sales of the Retirement Plans and Individual Life businesses.


[3]	Relates to the Japan fixed annuity product (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding periodic net coupon settlements, and Japan FVO securities).


[4]	Included in core earnings.

[5]

Primarily consists of transactional foreign currency re-valuation associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, and changes in value of non-qualifying derivatives and Japan 3Win related foreign currency swaps. Includes $71 and $110 of derivative gains relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended March 31, 2013 and December 31, 2012, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED



	September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012				September 30, 2012
	Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1][2]		Percent		Amount [1]		Percent
Total investments	$	103,064	100.0	%	$	105,520	100.0	%	$	114,838	100.0	%	$	134,250	100.0	%	$	137,168	100.0	%
Less: Equity securities, trading	22,343		21.7	%	23,362		22.1	%	28,099		24.5	%	28,933		21.6	%	29,980		21.9	%
Total investments excluding trading securities	$	80,721	78.3	%	$	82,158	77.9	%	$	86,739	75.5	%	$	105,317	78.4	%	$	107,188	78.1	%
Asset-backed securities (“ABS”)	$	2,362	3.7	%	$	2,453	3.8	%	$	2,422	3.5	%	$	2,763	3.2	%	$	2,758	3.2	%
Collateralized debt obligations (“CDOs”)	2,550		4.0	%	2,623		4.0	%	2,558		3.7	%	3,040		3.5	%	3,072		3.5	%
Commercial mortgage-backed securities (“CMBS”)	4,489		7.0	%	4,733		7.3	%	5,205		7.5	%	6,321		7.4	%	6,273		7.2	%
Corporate	28,770		45.0	%	29,666		45.7	%	31,468		45.2	%	44,049		51.3	%	43,433		50.1	%
Foreign government/government agencies	3,968		6.2	%	3,825		5.9	%	3,927		5.6	%	4,136		4.8	%	4,216		4.9	%
Municipal	12,543		19.6	%	12,569		19.4	%	13,238		19.0	%	14,361		16.7	%	14,291		16.5	%
Residential mortgage-backed securities (“RMBS”)	5,086		7.9	%	5,167		8.0	%	6,716		9.6	%	7,480		8.7	%	7,477		8.6	%
U.S. Treasuries	4,255		6.6	%	3,845		5.9	%	4,133		5.9	%	3,772		4.4	%	5,206		6.0	%
Total fixed maturities, AFS [3]	$	64,023	100.0	%	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%
U.S. government/government agencies	$	8,923	13.9	%	$	8,588	13.2	%	$	10,563	15.2	%	$	10,975	12.8	%	$	12,458	14.4	%
AAA	6,377		10.0	%	6,638		10.2	%	7,265		10.4	%	9,220		10.7	%	9,128		10.5	%
AA	12,923		20.2	%	13,273		20.5	%	13,877		19.9	%	16,104		18.7	%	16,305		18.8	%
A	15,412		24.1	%	15,514		23.9	%	17,007		24.4	%	22,650		26.4	%	21,923		25.3	%
BBB	16,187		25.2	%	16,570		25.6	%	17,079		24.5	%	22,689		26.4	%	22,665		26.1	%
BB & below	4,201		6.6	%	4,298		6.6	%	3,876		5.6	%	4,284		5.0	%	4,247		4.9	%
Total fixed maturities, AFS [3]	$	64,023	100.0	%	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%


[1]	Represents the value at which the assets are carried on the Consolidating Balance Sheets. Consolidating Balance Sheets as of September 30, 2013 and December 31, 2012 are presented on page 4.


[2]	Total investments as of December 31, 2012 include $17.3 billion in carrying value of assets transferred by the Company in connection with the sale of the Retirement Plans and Individual Life businesses in January 2013.


[3]	Available-for-sale ("AFS").

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

AS OF SEPTEMBER 30, 2013



	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets [1]
Top Ten Corporate and Equity, AFS, Exposures by Sector
Utilities	$	5,701	$	6,059	7.5	%
Financial Services	5,485		5,545		6.9	%
Consumer non-cyclical	3,467		3,754		4.6	%
Technology and communications	3,209		3,411		4.2	%
Basic Industry	2,722		2,805		3.5	%
Energy	2,384		2,545		3.1	%
Capital goods	2,068		2,230		2.8	%
Consumer cyclical	1,839		1,951		2.4	%
Transportation	989		1,048		1.3	%
Other	256		284		0.4	%
Total	$	28,120	$	29,632	36.7	%
Top Ten Exposures by Issuer [2]
Government of Japan [3]	$	2,568	$	2,554	3.2	%
State of California	297		313		0.4	%
National Grid PLC	266		289		0.4	%
Verizon Communications Inc.	258		279		0.4	%
Goldman Sachs Group Inc.	261		271		0.3	%
Commonwealth of Massachusetts	241		263		0.3	%
State of Illinois	271		263		0.3	%
General Electric Co.	282		258		0.3	%
AT&T Inc.	219		250		0.3	%
JP Morgan Chase & Co.	274		250		0.3	%
Total	$	4,937	$	4,990	6.2	%


[1]	Excludes equity securities, trading.


[2]	Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exposures resulting from

derivative transactions and equity securities, trading.


[3]	These securities are included in short-term investments, fixed maturities, available-for-sale, and fixed maturities, fair value option on the Company’s Consolidating Balance Sheets.

HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2 - EXHIBIT - October 28, 2013

Attached files

HARTFORD FINANCIAL SERVICES GROUP, INC. Reports