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

Attached files

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8-K - 8-K - HARTFORD FINANCIAL SERVICES GROUP, INC.	form8-kearningsreleasecove.htm
EX-99.1 - EXHIBIT - HARTFORD FINANCIAL SERVICES GROUP, INC.	ex991earningsnewsrelease10.htm

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2014

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of October 22, 2014
Address:
One Hartford Plaza		A.M. Best	Standard & Poor’s	Moody’s
Hartford, CT 06155	Insurance Financial Strength Ratings:
	Hartford Fire Insurance Company	A	A	A2
	Hartford Life and Accident Insurance Company	A	A	A3
	Hartford Life Insurance Company	A-	BBB+	Baa2
Internet address:	Hartford Life and Annuity Insurance Company	A-	BBB+	Baa2
http://www.thehartford.com
	Other Ratings:
	The Hartford Financial Services Group, Inc.:
	Senior debt	bbb+	BBB	Baa3
Contacts:	Commercial paper	AMB-2	A-2	P-3
Sabra Purtill
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 30170	211 Quality Circle, Suite 210
	College Station, TX 77842-3170	College Station, TX 77845
	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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS



CONSOLIDATED	Consolidated Financial Results	1
	Operating Results by Segment	2
	Consolidated Statements of Operations	3
	Consolidating Balance Sheets	4
	Capital Structure	5
	Statutory Capital and Surplus to GAAP Stockholders’ Equity Reconciliation	6
	Accumulated Other Comprehensive Income (Loss)	7
	Deferred Policy Acquisition Costs and Present Value of Future Profits	8

PROPERTY & CASUALTY	Property & Casualty Combined Income Statements	9
	Property & Casualty Combined Underwriting Ratios	10
	P&C Commercial Underwriting Results	11
	P&C Commercial Underwriting Ratios	12
	P&C Commercial Supplemental Data	13
	Consumer Markets Underwriting Results	14
	Consumer Markets Underwriting Ratios	15
	Consumer Markets Supplemental Data	16
	P&C Other Operations Underwriting Results	17

GROUP BENEFITS	Income Statements	18
	Supplemental Data	19

MUTUAL FUNDS	Income Statements	20
	Asset Value Rollforward - Assets Under Management By Distribution Channel	21
	Asset Value Rollforward - Assets Under Management By Asset Class	22

TALCOTT RESOLUTION	Financial Highlights	23
	Supplemental Data	24
	Individual Annuity - Account Value Rollforward	25

CORPORATE	Income Statements	26

INVESTMENTS	Investment Earnings Before Tax - Consolidated	27
	Investment Earnings Before Tax - Property & Casualty Combined	28
	Net Investment Income by Segment	29
	Components of Net Realized Capital Gains (Losses)	30
	Composition of Invested Assets	31
	Invested Asset Exposures	32

APPENDIX	Basis of Presentation and Definitions	33
	Discussion of Non-GAAP and Other Financial Measures	33

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
HIGHLIGHTS
Net income (loss)	$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	416		$	(138	)
Core earnings	$	477		$	144		$	501		$	382		$	416		$	231		$	390		$	1,122		$	1,037
Total revenues	$	4,769		$	4,616		$	4,612		$	4,777		$	4,862		$	4,734		$	6,300		$	13,997		$	15,896
Total assets	$	247,100		$	254,713		$	272,923		$	277,884		$	283,947		$	294,833		$	297,021
PER SHARE AND SHARES DATA
Basic earnings (losses) per common share
Net income (loss) available to common shareholders	$	0.89		$	(1.04	)	$	1.10		$	0.70		$	0.65		$	(0.42	)	$	(0.58	)	$	0.93		$	(0.33	)
Core earnings available to common shareholders	$	1.09		$	0.32		$	1.11		$	0.85		$	0.92		$	0.51		$	0.87		$	2.52		$	2.30
Diluted earnings (losses) per common share [1]
Net income (loss) available to common shareholders	$	0.86		$	(1.00	)	$	1.03		$	0.65		$	0.60		$	(0.39	)	$	(0.49	)	$	0.89		$	(0.28	)
Core earnings available to common shareholders	$	1.06		$	0.31		$	1.05		$	0.79		$	0.85		$	0.47		$	0.79		$	2.41		$	2.11
Weighted average common shares outstanding (basic)	437.2			450.6			449.8			451.1			452.1			451.4			436.3			445.9			446.6
Dilutive effect of stock compensation	5.9			6.3			6.2			5.1			4.6			4.2			3.9			6.1			4.2
Dilutive effect of warrants	7.7			11.0			22.6			29.9			33.9			33.4			31.7			13.9			33.0
Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares	450.8			467.9			478.6			486.1			490.6			489.0			471.9			465.9			483.8
Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares [2]	450.8			467.9			478.6			486.1			490.6			489.0			493.1			465.9			492.1
Common shares outstanding	433.6			450.8			452.5			453.3			448.5			453.9			435.3			433.6			448.5
Book value per common share	$	43.44		$	43.10		$	43.70		$	41.71		$	42.20		$	41.89		$	46.78
Per common share impact of accumulated other comprehensive income [3]	$	2.49		$	2.58		$	1.46		$	(0.17	)	$	(0.04	)	$	0.16		$	3.79
Book value per common share (excluding AOCI)	$	40.95		$	40.52		$	42.24		$	41.88		$	42.24		$	41.73		$	42.99
Book value per diluted share	$	42.23		$	41.70		$	41.56		$	39.14		$	38.87		$	38.59		$	42.43
Per diluted share impact of AOCI	$	2.41		$	2.49		$	1.39		$	(0.16	)	$	(0.04	)	$	0.15		$	3.34
Book value per diluted share (excluding AOCI)	$	39.82		$	39.21		$	40.17		$	39.30		$	38.91		$	38.44		$	39.09
Common shares outstanding and dilutive potential common shares	446.0			465.9			475.8			483.0			486.9			492.7			493.0
FINANCIAL RATIOS
ROE (net income (loss) last 12 months to stockholders' equity including AOCI)	3.9		%	3.3		%	4.5		%	0.9		%	(0.9		)%	(2.3		)%	(1.8		)%
ROE (core earnings last 12 months to stockholders' equity excluding AOCI)	8.2		%	7.8		%	8.0		%	7.4		%	6.4		%	6.1		%	5.9		%
Debt to capitalization, including AOCI	24.5		%	23.9		%	24.3		%	25.7		%	25.0		%	25.8		%	23.2		%
Annualized investment yield, after-tax	3.2		%	3.0		%	3.2		%	3.1		%	3.0		%	3.1		%	3.0		%	3.1		%	3.0		%


[1]	Weighted average common shares outstanding and dilutive potential common shares (diluted) are used in the calculation of diluted earnings (losses) per common share in periods of losses when the impact is dilutive to income from continuing operations, net of tax, available to common shareholders.


[2]	Includes the dilutive effect of the assumed conversion of preferred shares of 21.2 million shares and 8.3 million shares, respectively, for the three months ended March 31, 2013 and the nine months ended September 30, 2013. The preferred shares converted to 21.2 million common shares in April 2013.


[3]	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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Core earnings (losses):
P&C Commercial	$	268		$	213		$	264		$	229		$	176		$	198		$	224		$	745		$	598
Consumer Markets	71			(27		)	101			49			68			15			73			145			156
P&C Other Operations	14			(146		)	21			22			19			(73		)	21			(111		)	(33		)
Property & Casualty ("P&C") Combined	$	353		$	40		$	386		$	300		$	263		$	140		$	318		$	779		$	721
Group Benefits	38			52			45			55			36			37			30			135			103
Mutual Funds	22			21			21			20			18			20			20			64			58
Sub-total	413			113			452			375			317			197			368			978			882
Talcott Resolution	122			101			112			99			115			103			95			335			313
Corporate	(58		)	(70		)	(63		)	(92		)	(16		)	(69		)	(73		)	(191		)	(158		)
CONSOLIDATED CORE EARNINGS	$	477		$	144		$	501		$	382		$	416		$	231		$	390		$	1,122		$	1,037
Add: Unlock benefit (charge), after-tax [1]	$	(102	)	$	15		$	12		$	1		$	(104	)	$	(9	)	$	3		$	(75	)	$	(110	)
Add: Restructuring and other costs, after-tax	(14		)	(5		)	(13		)	(10		)	(10		)	(12		)	(12		)	(32		)	(34		)
Add: Income (loss) from discontinued operations, after-tax	—			(617		)	29			(70		)	(72		)	(423		)	(484		)	(588		)	(979		)
Add: Loss on extinguishment of debt, after-tax	—			—			—			—			—			—			(138		)	—			(138		)
Add: Net reinsurance gain (loss) on dispositions, after-tax	—			—			—			—			—			1			(25		)	—			(24		)
Add: Net realized capital gains (losses), after-tax and DAC, excluded from core earnings	27			(4		)	(34		)	11			63			22			25			(11		)	110
Net income (loss)	$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	416		$	(138	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Earned premiums	$	3,337		$	3,319		$	3,302		$	3,346		$	3,338		$	3,294		$	3,253		$	9,958		$	9,885
Fee income	524			502			496			544			538			513			510			1,522			1,561
Net investment income	810			768			824			811			787			841			825			2,402			2,453
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(15		)	(8		)	(23		)	(15		)	(28		)	(17		)	(33		)	(46		)	(78		)
OTTI losses recognized in other comprehensive income	1			1			1			1			2			5			12			3			19
Net OTTI losses recognized in earnings	(14		)	(7		)	(22		)	(14		)	(26		)	(12		)	(21		)	(43		)	(59		)
Net realized capital gains on business dispositions [1]	—			—			—			—			—			1			1,574			—			1,575
Other net realized capital gains (losses)	83			3			(13		)	16			157			32			91			73			280
Total net realized capital gains (losses)	69			(4		)	(35		)	2			131			21			1,644			30			1,796
Other revenues	29			31			25			74			68			65			68			85			201
Total revenues	4,769			4,616			4,612			4,777			4,862			4,734			6,300			13,997			15,896
Benefits, losses and loss adjustment expenses	2,624			3,023			2,576			2,703			2,764			2,922			2,659			8,223			8,345
Amortization of DAC	580			372			396			380			594			391			429			1,348			1,414
Insurance operating costs and other expenses	976			977			936			1,116			964			1,084			1,012			2,889			3,060
Loss on extinguishment of debt	—			—			—			—			—			—			213			—			213
Reinsurance loss on dispositions [1]	—			—			—			—			—			—			1,574			—			1,574
Interest expense	93			94			95			96			94			100			107			282			301
Total benefits, losses and expenses	4,273			4,466			4,003			4,295			4,416			4,497			5,994			12,742			14,907
Income from continuing operations before income taxes	496			150			609			482			446			237			306			1,255			989
Income tax expense	108			—			143			98			81			4			63			251			148
Income from continuing operations, after-tax	388			150			466			384			365			233			243			1,004			841
Income (loss) from discontinued operations, after-tax [2]	—			(617		)	29			(70		)	(72		)	(423		)	(484		)	(588		)	(979		)
Net income (loss)	$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	416		$	(138	)

[1]Amounts pertain to the sales of the Retirement Plans and Individual Life businesses.

[2]For further information related to the discontinued operations of the Japan and U.K. annuity businesses, refer to Talcott Resolution Financial Highlights on page 23.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

SEPTEMBER 30, 2014



													CONSOLIDATED [1]
	PROPERTY & CASUALTY		GROUP BENEFITS			MUTUAL FUNDS		TALCOTT RESOLUTION		CORPORATE			Sept 30 2014		Dec 31 2013
Investments
Fixed maturities, available-for-sale, at fair value	$	25,506	$	7,299		$	—	$	25,608	$	1,173		$	59,586	$	62,357
Fixed maturities, at fair value using the fair value option	82		83			—		299		—			464		844
Equity securities, trading, at fair value	—		—			—		12		—			12		19,745
Equity securities, available-for-sale, at fair value	217		64			—		235		132			648		868
Mortgage loans	1,666		781			—		3,283		—			5,730		5,598
Policy loans, at outstanding balance	—		1			—		1,424		—			1,425		1,420
Limited partnerships and other alternative investments	1,524		186			—		1,317		—			3,027		3,040
Other investments	64		4			—		244		14			326		521
Short-term investments	1,055		273			251		2,200		1,234			5,013		4,008
Total investments	$	30,114	$	8,691		$	251	$	34,622	$	2,553		$	76,231	$	98,401
Cash	150		68			2		216		4			440		1,428
Premiums receivable and agents’ balances	3,279		224			—		37		—			3,540		3,465
Reinsurance recoverables	2,791		105			—		19,918		—			22,814		23,330
DAC	581		39			12		1,236		—			1,868		2,161
Deferred income taxes	416		(145		)	—		1,011		1,608			2,890		3,840
Goodwill	119		—			149		—		230			498		498
Property and equipment, net	641		84			—		82		9			816		877
Other assets	859		(32		)	35		692		130			1,684		2,998
Separate account assets [2]	—		—			—		136,319		—			136,319		140,886
Total assets	$	38,950	$	9,034		$	449	$	194,133	$	4,534		$	247,100	$	277,884
Future policy benefits, unpaid losses and loss adjustment expenses	21,885		6,045			—		13,512		—			$	41,442	$	41,373
Other policyholder funds and benefits payable	—		521			—		32,227		—			32,748		39,029
Other policyholder funds and benefits payable— International variable annuities	—		—			—		—		—			—		19,734
Unearned premiums	5,230		37			—		122		—			5,389		5,225
Debt	—		—			—		143		5,965			6,108		6,544
Other liabilities	1,401		(71		)	175		2,225		2,529			6,259		6,188
Separate account liabilities	—		—			—		136,319		—			136,319		140,886
Total liabilities	$	28,516	$	6,532		$	175	$	184,548	$	8,494		$	228,265	$	258,979
Common equity, excluding AOCI	9,528		2,161			274		8,495		(2,700		)	17,758		18,984
AOCI, after-tax	906		341			—		1,090		(1,260		)	1,077		(79		)
Total stockholders’ equity	10,434		2,502			274		9,585		(3,960		)	18,835		18,905
Total liabilities and equity	$	38,950	$	9,034		$	449	$	194,133	$	4,534		$	247,100	$	277,884

[1] For a description of the reporting segments, refer to the Appendix - Basis of Presentation and Definitions on page 33.

[2] Excludes Mutual Funds assets under management ("AUM") owned by the shareholders of those funds and not by the Company.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE



	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013
DEBT
Short-term debt	$	289		$	289		$	532		$	438		$	200		$	520		$	520
Senior notes	4,719			4,719			4,718			5,006			5,006			5,005			4,707
Junior subordinated debentures	1,100			1,100			1,100			1,100			1,100			1,100			1,100
Total debt	$	6,108		$	6,108		$	6,350		$	6,544		$	6,306		$	6,625		6,327
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	17,758		$	18,266		$	19,115		$	18,984		$	18,945		$	18,939		18,715
Preferred stock	—			—			—			—			—			—			556
AOCI	1,077			1,162			659			(79		)	(17		)	74			1,649
Total stockholders’ equity	$	18,835		$	19,428		$	19,774		$	18,905		$	18,928		$	19,013		$	20,920
CAPITALIZATION
Total capitalization, including AOCI, after-tax	$	24,943		$	25,536		$	26,124		$	25,449		$	25,234		$	25,638		$	27,247
Total capitalization, excluding AOCI, after-tax	$	23,866		$	24,374		$	25,465		$	25,528		$	25,251		$	25,564		$	25,598
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	24.5		%	23.9		%	24.3		%	25.7		%	25.0		%	25.8		%	23.2		%
Total debt to capitalization, excluding AOCI	25.6		%	25.1		%	24.9		%	25.6		%	25.0		%	25.9		%	24.7		%
Total rating agency adjusted debt to capitalization [1] [2]	27.1		%	26.5		%	26.9		%	28.4		%	28.5		%	29.3		%	26.6		%

[1]

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 $1.3 billion, $1.3 billion, $1.3 billion, $1.4 billion and $1.6 billion for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively.


[2]	Reflects 25% equity credit for the junior subordinated debentures. Reflects 100% equity credit for preferred 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

SEPTEMBER 30, 2014



	PROPERTY & CASUALTY			GROUP BENEFITS			TALCOTT RESOLUTION
U.S. statutory net income (loss) [1] [2]	$	839		$	141		$	86
U.S. statutory capital and surplus	$	7,821		$	1,475		$	5,573
U.S. GAAP adjustments:
DAC	581			39			1,236
Deferred taxes including non-admitted deferred tax assets	(142		)	(343		)	78
Goodwill	119			—			—
Non-admitted assets other than deferred taxes	584			57			82
Asset valuation and interest maintenance reserve	—			214			629
Benefit reserves	(47		)	346			575
Unrealized gains on investments, after tax	1,041			523			1,665
Other, net	477			191			(253		)
U.S. GAAP stockholders’ equity	$	10,434		$	2,502		$	9,585


[1]	Statutory net income (loss) is for the nine months ended September 30, 2014.


[2]	Statutory net income (loss) 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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	THREE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013
Fixed maturities net unrealized gain	$	2,170		$	2,226		$	1,663		$	975		$	976		$	1,141		$	2,484
Equities net unrealized gain	23			29			23			12			12			21			45
OTTI losses recognized in AOCI	(5		)	(7		)	(10		)	(12		)	(20		)	(23		)	(32		)
Net deferred gain on cash flow hedging instruments	120			141			121			108			167			188			320
Total net unrealized gain	$	2,308		$	2,389		$	1,797		$	1,083		$	1,135		$	1,327		$	2,817
Foreign currency translation adjustments	—			13			108			91			184			92			186
Pension and other postretirement adjustment	(1,231		)	(1,240		)	(1,246		)	(1,253		)	(1,336		)	(1,345		)	(1,354		)
Total AOCI	$	1,077		$	1,162		$	659		$	(79	)	$	(17	)	$	74		$	1,649

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

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



	THREE MONTHS ENDED SEPT 30, 2014
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			Individual Annuity [1]			Institutional			Consolidated
Balance, beginning of period	$	572		$	41		$	13		$	1,355		$	45		$	2,026
Deferred costs	327			6			5			5			—			343
Amortization — DAC	(318		)	(8		)	(6		)	(71		)	(1		)	(404		)
Amortization — DAC unlock charge, before tax	—			—			—			(176		)	—			(176		)
Adjustments to unrealized gains and losses on securities available-for-sale and other	—			—			—			79			—			79
Balance, end of period	$	581		$	39		$	12		$	1,192		$	44		$	1,868



	NINE MONTHS ENDED SEPT 30, 2014
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			Individual Annuity [1]			Institutional			Consolidated
Balance, beginning of period	$	549		$	41		$	19		$	1,505		$	47		$	2,161
Deferred costs	977			22			15			18			—			1,032
Amortization — DAC	(945		)	(24		)	(22		)	(206		)	(3		)	(1,200		)
Amortization — DAC unlock charge, before tax	—			—			—			(148		)	—			(148		)
Adjustments to unrealized gains and losses on securities available-for-sale and other	—			—			—			23			—			23
Balance, end of period	$	581		$	39		$	12		$	1,192		$	44		$	1,868

[1] Consists of U.S. annuity products for individuals, including variable, fixed and payout.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY COMBINED

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
UNDERWRITING RESULTS
Written premiums	$	2,603		$	2,574		$	2,597		$	2,349		$	2,556		$	2,501		$	2,523		$	7,774		$	7,580
Change in unearned premium reserve	61			69			128			(149		)	68			48			98			258			214
Earned premiums	2,542			2,505			2,469			2,498			2,488			2,453			2,425			7,516			7,366
Losses and loss adjustment expenses
Current accident year before catastrophes	1,570			1,563			1,524			1,615			1,607			1,551			1,536			4,657			4,694
Current accident year catastrophes	40			196			86			28			66			186			32			322			284
Prior year development [1]	(10		)	249			(40		)	15			17			146			14			199			177
Total losses and loss adjustment expenses	1,600			2,008			1,570			1,658			1,690			1,883			1,582			5,178			5,155
Amortization of DAC	318			316			311			310			308			309			310			945			927
Underwriting expenses [2]	402			394			331			398			391			389			375			1,127			1,155
Dividends to policyholders	4			3			4			4			4			4			4			11			12
Underwriting gain (loss)	218			(216		)	253			128			95			(132		)	154			255			117
Net investment income	316			292			326			324			296			338			312			934			946
Net realized capital gains (losses)	24			(25		)	(37		)	72			2			(7		)	51			(38		)	46
Other expense	(37		)	(37		)	(36		)	(45		)	(32		)	(34		)	(24		)	(110		)	(90		)
Income from continuing operations before income taxes	521			14			506			479			361			165			493			1,041			1,019
Income tax expense (benefit)	154			(11		)	143			133			98			27			142			286			267
Income from continuing operations, after-tax	367			25			363			346			263			138			351			755			752
Income (loss) from discontinued operations, after-tax	—			—			—			—			1			(2		)	—			—			(1		)
Net income	367			25			363			346			264			136			351			755			751
Less: Restructuring and other costs, after-tax	—			—			—			—			(1		)	—			—			—			(1		)
Less: Income (loss) from discontinued operations, after-tax	—			—			—			—			1			(2		)	—			—			(1		)
Less: Net realized capital gains (losses), after-tax and DAC, excluded from core earnings	14			(15		)	(23		)	46			1			(2		)	33			(24		)	32
Core earnings	$	353		$	40		$	386		$	300		$	263		$	140		$	318		$	779		$	721

[1] The three months ended June 30, 2014 and 2013 include unfavorable prior year loss reserve development of $212 and $130, respectively, related to asbestos reserves, and $27 and $10, respectively,

related to environmental reserves.

[2] The three months ended March 31, 2014 includes a $49 before tax reduction for New York (NY) State Workers' Compensation Board assessments.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY COMBINED

UNDERWRITING RATIOS



	THREE MONTHS ENDED																		NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013		Sept 30 2013		Jun 30 2013			Mar 31 2013		Sept 30 2014		Sept 30 2013
UNDERWRITING GAIN (LOSS)	$	218		$	(216	)	$	253		$	128	$	95	$	(132	)	$	154	$	255	$	117
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	61.8			62.4			61.7			64.7		64.6		63.2			63.3		62.0		63.7
Current accident year catastrophes	1.6			7.8			3.5			1.1		2.7		7.6			1.3		4.3		3.9
Prior year development [1]	(0.4		)	9.9			(1.6		)	0.6		0.7		6.0			0.6		2.6		2.4
Total losses and loss adjustment expenses	62.9			80.2			63.6			66.4		67.9		76.8			65.2		68.9		70.0
Expenses [2]	28.3			28.3			26.0			28.3		28.1		28.5			28.2		27.6		28.3
Policyholder dividends	0.2			0.1			0.2			0.2		0.2		0.2			0.2		0.1		0.2
Combined ratio	91.4			108.6			89.8			94.9		96.2		105.4			93.6		96.6		98.4
Current accident year catastrophes and prior year development	1.2			17.7			1.9			1.7		3.4		13.6			1.9		6.9		6.3
Combined ratio before catastrophes and prior year development	90.2			90.9			87.9			93.2		92.8		91.8			91.8		89.7		92.2

[1] Includes 9.5 point and 5.7 point unfavorable impact related to asbestos and environmental prior year loss reserve development in the three months ended June 30, 2014 and 2013, respectively.

[2] Includes 2.0 point favorable impact related to a reduction in NY State Workers' Compensation Board assessments in the three months ended March 31, 2014.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RESULTS



	THREE MONTHS ENDED																		NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014		Mar 31 2014			Dec 31 2013			Sept 30 2013		Jun 30 2013			Mar 31 2013		Sept 30 2014		Sept 30 2013
UNDERWRITING RESULTS
Written premiums	$	1,583		$	1,571	$	1,669		$	1,463		$	1,567	$	1,533		$	1,645	$	4,823	$	4,745
Change in unearned premium reserve	5			12		128			(103		)	4		(12		)	116		145		108
Earned premiums	1,578			1,559		1,541			1,566			1,563		1,545			1,529		4,678		4,637
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	931			934		934			972			991		966			968		2,799		2,925
Current accident year catastrophes	8			35		60			7			48		44			6		103		98
Prior year development [3]	(5		)	12		(7		)	12			26		37			8		—		71
Total losses and loss adjustment expenses	934			981		987			991			1,065		1,047			982		2,902		3,094
Amortization of DAC	230			230		226			226			226		226			227		686		679
Underwriting expenses [2]	259			254		188			247			238		243			225		701		706
Dividends to policyholders	4			3		4			4			4		4			4		11		12
Underwriting gain	$	151		$	91	$	136		$	98		$	30	$	25		$	91	$	378	$	146


[1]	The three months ended September 30, 2013 includes current accident year reserve strengthening of $11 primarily related to auto liability claims.


[2]	The three months ended March 31, 2014 includes a $49 before tax reduction for NY State Workers' Compensation Board assessments. Small Commercial, Middle Market and Specialty

Commercial represent $25, $14 and $10, respectively, of the reduction.


[3]	Prior year development includes the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Auto liability	$	—		$	9		$	5		$	—		$	86		$	40		$	15		$	14		$	141
Professional and general liability	(19		)	(11		)	(8		)	(1		)	(45		)	(40		)	(18		)	(38		)	(103		)
Workers’ compensation	—			5			—			(11		)	(10		)	1			18			5			9
Workers’ compensation - NY 25a Fund for Reopened Cases	—			—			—			—			—			80			—			—			80
Change in workers' compensation discount, including accretion	8			7			8			7			8			7			8			23			23
Catastrophes	1			(6		)	(12		)	(3		)	(12		)	(9		)	—			(17		)	(21		)
Uncollectible reinsurance	—			—			—			—			—			(25		)	—			—			(25		)
Other reserve re-estimates, net	5			8			—			20			(1		)	(17		)	(15		)	13			(33		)
Total prior year development	$	(5	)	$	12		$	(7	)	$	12		$	26		$	37		$	8		$	—		$	71

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RATIOS



	THREE MONTHS ENDED																NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014		Mar 31 2014			Dec 31 2013		Sept 30 2013		Jun 30 2013		Mar 31 2013		Sept 30 2014		Sept 30 2013
UNDERWRITING GAIN	$	151		$	91	$	136		$	98	$	30	$	25	$	91	$	378	$	146
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	59.0			59.9		60.6			62.1		63.4		62.5		63.3		59.8		63.1
Current accident year catastrophes	0.5			2.2		3.9			0.4		3.1		2.8		0.4		2.2		2.1
Prior year development [2]	(0.3		)	0.8		(0.5		)	0.8		1.7		2.4		0.5		—		1.5
Total losses and loss adjustment expenses	59.2			62.9		64.0			63.3		68.1		67.8		64.2		62.0		66.7
Expenses [3]	31.0			31.0		26.9			30.2		29.7		30.4		29.6		29.6		29.9
Policyholder dividends	0.3			0.2		0.3			0.3		0.3		0.3		0.3		0.2		0.3
Combined ratio	90.4			94.2		91.2			93.7		98.1		98.4		94.0		91.9		96.9
Current accident year catastrophes and prior year development	0.2			3.0		3.4			1.2		4.8		5.2		0.9		2.2		3.6
Combined ratio before catastrophes and prior year development	90.2			91.1		87.7			92.5		93.3		93.1		93.1		89.7		93.2

COMBINED RATIOS BY LINE OF BUSINESS [4]
SMALL COMMERCIAL
Combined ratio	86.4			89.3		85.7			85.8		92.4		94.5		89.9		87.1		92.3
Combined ratio before catastrophes	86.2			85.9		83.3			85.4		89.9		91.8		88.2		85.2		89.9
Combined ratio before catastrophes and prior year development	85.6			85.4		83.7			85.9		87.1		87.6		89.2		84.9		88.0
MIDDLE MARKET
Combined ratio	89.4			97.1		96.1			97.1		102.7		101.7		91.6		94.1		98.7
Combined ratio before catastrophes	88.2			96.6		90.6			96.9		99.7		99.3		93.2		91.8		97.4
Combined ratio before catastrophes and prior year development	92.0			95.1		90.1			94.8		95.9		95.2		95.8		92.4		95.6
SPECIALTY COMMERCIAL
Combined ratio	103.6			104.1		97.3			102.4		111.0		113.8		112.6		101.6		112.4
Combined ratio before catastrophes	103.2			104.0		97.2			102.5		110.9		113.4		111.8		101.4		112.0
Combined ratio before catastrophes and prior year development	102.9			101.3		94.7			100.6		103.0		105.7		98.9		99.5		102.5

[1]The three months ended September 30, 2013 includes current accident year reserve strengthening of 0.7 points primarily related to auto liability claims.

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

[3]The expense ratio includes 3.2 point favorable impact related to a reduction in NY State Workers' Compensation Board assessments in the three months ended March 31, 2014.

[4]Small Commercial, Middle Market and Specialty Commercial include a benefit of 3.3 points, 2.5 points and 4.4 points, respectively, for the NY State Workers' Compensation Board assessments

reduction in the three months ended March 31, 2014. For additional information, refer to footnote [2] on page 11.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
WRITTEN PREMIUMS
Small Commercial	$	791		$	833		$	865		$	715		$	740		$	787		$	842		$	2,489		$	2,369
Middle Market	587			533			566			555			570			518			546			1,686			1,634
Specialty Commercial	197			196			229			186			248			219			248			622			715
National Accounts	82			77			113			62			90			72			91			272			253
Financial Products	65			59			55			63			61			60			53			179			174
Programs	48			57			58			60			93			85			101			163			279
Other Specialty	2			3			3			1			4			2			3			8			9
Other	8			9			9			7			9			9			9			26			27
Total	$	1,583		$	1,571		$	1,669		$	1,463		$	1,567		$	1,533		$	1,645		$	4,823		$	4,745
EARNED PREMIUMS
Small Commercial	$	805		$	790		$	769		$	777		$	769		$	763		$	754		$	2,364		$	2,286
Middle Market	563			547			541			549			545			540			530			1,651			1,615
Specialty Commercial	200			213			223			234			240			233			236			636			709
National Accounts	79			82			80			79			83			70			68			241			221
Financial Products	61			61			59			62			61			64			63			181			188
Programs	57			68			81			89			92			97			102			206			291
Other Specialty	3			2			3			4			4			2			3			8			9
Other	10			9			8			6			9			9			9			27			27
Total	$	1,578		$	1,559		$	1,541		$	1,566		$	1,563		$	1,545		$	1,529		$	4,678		$	4,637

STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Standard Commercial Lines	5		%	6		%	7		%	7		%	7		%	7		%	8		%	6		%	7		%
Policy Count Retention
Small Commercial	84		%	84		%	83		%	82		%	81		%	80		%	82		%	84		%	81		%
Middle Market	80		%	80		%	81		%	79		%	80		%	79		%	77		%	80		%	79		%
New Business Premium
Small Commercial	$	128		$	140		$	131		$	111		$	115		$	125		$	134		$	399		$	374
Middle Market	$	112		$	112		$	111		$	102		$	107		$	116		$	97		$	335		$	320
Policies in Force (in thousands)
Small Commercial	1,197			1,187			1,179			1,177			1,181			1,181			1,185
Middle Market	72			73			73			73			74			74			75

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
UNDERWRITING RESULTS	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Written premiums	$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	2,949		$	2,833
Change in unearned premium reserve	55			57			(1		)	(45		)	63			59			(18		)	111			104
Earned premiums	964			946			928			931			925			908			896			2,838			2,729
Losses and loss adjustment expenses
Current accident year before catastrophes	639			629			590			643			616			585			568			1,858			1,769
Current accident year catastrophes	32			161			26			21			18			142			26			219			186
Prior year development [1]	(15		)	(3		)	(34		)	—			(11		)	(32		)	4			(52		)	(39		)
Total losses and loss adjustment expenses	656			787			582			664			623			695			598			2,025			1,916
Amortization of DAC	88			86			85			84			82			83			83			259			248
Underwriting expenses	135			133			136			144			145			139			143			404			427
Underwriting gain (loss)	$	85		$	(60	)	$	125		$	39		$	75		$	(9	)	$	72		$	150		$	138


[1]	Prior year development includes the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Auto liability	$	(4	)	$	—		$	—		$	1		$	—		$	2		$	—		$	(4	)	$	2
Homeowners	—			3			(13		)	3			1			(2		)	(8		)	(10		)	(9		)
Catastrophes	(3		)	(5		)	(21		)	(2		)	(8		)	(31		)	2			(29		)	(37		)
Other reserve re-estimates, net	(8		)	(1		)	—			(2		)	(4		)	(1		)	10			(9		)	5
Total prior year development	$	(15	)	$	(3	)	$	(34	)	$	—		$	(11	)	$	(32	)	$	4		$	(52	)	$	(39	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RATIOS



	THREE MONTHS ENDED																			NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013		Sept 30 2013			Jun 30 2013			Mar 31 2013		Sept 30 2014			Sept 30 2013
UNDERWRITING GAIN (LOSS)	$	85		$	(60	)	$	125		$	39	$	75		$	(9	)	$	72	$	150		$	138
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	66.3			66.5			63.6			69.1		66.6			64.4			63.4		65.5			64.8
Current accident year catastrophes	3.3			17.0			2.8			2.3		1.9			15.6			2.9		7.7			6.8
Prior year development [1]	(1.6		)	(0.3		)	(3.7		)	—		(1.2		)	(3.5		)	0.4		(1.8		)	(1.4		)
Total losses and loss adjustment expenses	68.0			83.2			62.7			71.3		67.4			76.5			66.7		71.4			70.2
Expenses	23.1			23.2			23.8			24.5		24.5			24.4			25.2		23.4			24.7
Combined ratio	91.2			106.3			86.5			95.8		91.9			101.0			92.0		94.7			94.9
Current accident year catastrophes and prior year development	1.7			16.7			(0.9		)	2.3		0.7			12.1			3.3		5.9			5.4
Combined ratio before catastrophes and prior year development	89.4			89.6			87.4			93.6		91.1			88.9			88.6		88.8			89.6
PRODUCT
Automobile
Combined ratio	96.6			98.7			91.4			102.4		96.3			94.6			96.0		95.6			95.6
Combined ratio before catastrophes and prior year development	95.8			94.6			91.6			102.7		96.8			93.8			93.3		94.0			94.6
Homeowners
Combined ratio	83.1			123.8			75.3			78.3		81.2			115.0			82.7		94.1			92.9
Combined ratio before catastrophes and prior year development	75.9			79.6			77.4			70.6		77.6			77.9			77.9		77.6			77.8


[1]	For a summary of (favorable) unfavorable prior year loss reserve development refer to footnote [1] on page 14.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	736		$	734		$	669		$	632		$	725		$	718		$	647		$	2,139		$	2,090
AARP Agency	88			78			71			66			62			52			45			237			159
Other Agency	181			179			173			175			187			182			173			533			542
Other	14			12			14			13			14			15			13			40			42
Total	$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	2,949		$	2,833
EARNED PREMIUMS
AARP Direct	$	699		$	689		$	678		$	684		$	682		$	673		$	662		$	2,066		$	2,017
AARP Agency	73			66			58			54			47			41			35			197			123
Other Agency	177			179			179			181			182			181			184			535			547
Other	15			12			13			12			14			13			15			40			42
Total	$	964		$	946		$	928		$	931		$	925		$	908		$	896		$	2,838		$	2,729
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	690		$	680		$	660		$	608		$	668		$	657		$	629		$	2,030		$	1,954
Homeowners	329			323			267			278			320			310			249			919			879
Total	$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	2,949		$	2,833
EARNED PREMIUMS
Automobile	$	662		$	650		$	636		$	640		$	637		$	626		$	619		$	1,948		$	1,882
Homeowners	302			296			292			291			288			282			277			890			847
Total	$	964		$	946		$	928		$	931		$	925		$	908		$	896		$	2,838		$	2,729
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Automobile	5		%	5		%	5		%	5		%	5		%	5		%	5		%	5		%	5		%
Homeowners	7		%	8		%	8		%	8		%	8		%	7		%	6		%	7		%	7		%
Policy Count Retention
Automobile	85		%	86		%	87		%	86		%	86		%	86		%	86		%	86		%	86		%
Homeowners	86		%	87		%	87		%	86		%	86		%	87		%	87		%	87		%	87		%
Premium Retention
Automobile	87		%	88		%	89		%	87		%	88		%	88		%	88		%	88		%	88		%
Homeowners	91		%	92		%	93		%	92		%	92		%	92		%	92		%	92		%	92		%
New Business Premium
Automobile	$	108		$	103		$	104		$	94		$	100		$	93		$	87		$	315		$	280
Homeowners	$	34		$	35		$	32		$	32		$	35		$	34		$	30		$	101		$	99
Policies in Force (in thousands)
Automobile	2,047			2,041			2,033			2,019			2,021			2,020			2,019
Homeowners	1,318			1,325			1,324			1,319			1,321			1,322			1,322

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
UNDERWRITING RESULTS
Written premiums	$	1		$	—		$	1		$	—		$	1		$	1		$	—		$	2		$	2
Change in unearned premium reserve	1			—			1			(1		)	1			1			—			2			2
Earned premiums	—			—			—			1			—			—			—			—			—
Losses and loss adjustment expenses
Prior year development [1]	10			240			1			3			2			141			2			251			145
Total losses and loss adjustment expenses	10			240			1			3			2			141			2			251			145
Underwriting expenses	8			7			7			7			8			7			7			22			22
Underwriting loss	$	(18	)	$	(247	)	$	(8	)	$	(9	)	$	(10	)	$	(148	)	$	(9	)	$	(273	)	$	(167	)

[1] The three months ended June 30, 2014 and 2013 include unfavorable prior year loss reserve development of $212 and $130, respectively, related to asbestos reserves, and $27 and $10, respectively, related to environmental reserves.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Earned premiums	$	738		$	761		$	784		$	821		$	817		$	823		$	812		$	2,283		$	2,452
Fee income	15			16			15			14			14			15			14			46			43
Net investment income	93			95			96			97			96			100			97			284			293
Net realized capital gains (losses)	(3		)	6			8			3			(8		)	37			18			11			47
Total revenues	843			878			903			935			919			975			941			2,624			2,835
Benefits, losses and loss adjustment expenses	584			601			597			607			637			635			639			1,782			1,911
Amortization of DAC	8			7			9			9			8			8			8			24			24
Insurance operating costs and other expenses	205			195			228			239			237			248			240			628			725
Total benefits, losses and expenses	797			803			834			855			882			891			887			2,434			2,660
Income before income taxes	46			75			69			80			37			84			54			190			175
Income tax expense	9			20			18			22			6			23			12			47			41
Net income	37			55			51			58			31			61			42			143			134
Less: Net realized capital gains (losses), after tax, excluded from core earnings	(1		)	3			6			3			(5		)	24			12			8			31
Core earnings	$	38		$	52		$	45		$	55		$	36		$	37		$	30		$	135		$	103
After-tax margin (excluding buyouts)
Net income	4.4		%	6.3		%	5.7		%	6.2		%	3.4		%	6.3		%	4.5		%	5.5		%	4.7		%
Core earnings	4.5		%	6.0		%	5.1		%	5.9		%	3.9		%	3.9		%	3.2		%	5.2		%	3.7		%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
PREMIUMS
Fully insured ongoing premiums
Group disability	$	343		$	349		$	346		$	352		$	343		$	355		$	345		$	1,038		$	1,043
Group life [1]	353			371			388			428			435			427			426			1,112			1,288
Other	42			41			42			41			39			40			41			125			120
Total fully insured ongoing premiums	$	738		$	761		$	776		$	821		$	817		$	822		$	812		$	2,275		$	2,451
Total buyouts [2]	—			—			8			—			—			1			—			8			1
Total premiums	738			761			784			821			817			823			812			2,283			2,452
Group disability premium equivalents [3]	109			108			103			102			104			100			106			320			310
Total premiums and premium equivalents	$	847		$	869		$	887		$	923		$	921		$	923		$	918		$	2,603		$	2,762
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	26		$	20		$	88		$	29		$	32		$	46		$	76		$	134		$	154
Group life	26			24			79			26			28			55			88			129			171
Other	5			1			13			3			3			2			5			19			10
Total fully insured ongoing sales	57			45			180			58			63			103			169			282			335
Total buyouts [2]	—			—			8			—			—			1			—			8			1
Total sales	57			45			188			58			63			104			169			290			336
Group disability premium equivalents [3]	3			3			25			23			5			18			15			31			38
Total sales and premium equivalents	$	60		$	48		$	213		$	81		$	68		$	122		$	184		$	321		$	374
RATIOS [4]
Loss ratio
Group disability loss ratio	85.7		%	83.9		%	82.4		%	75.7		%	87.9		%	82.7		%	89.9		%	84.0		%	86.8		%
Group life loss ratio	71.7		%	72.4		%	67.9		%	70.8		%	68.2		%	70.8		%	68.1		%	70.6		%	69.0		%
Total loss ratio	77.6		%	77.3		%	74.5		%	72.7		%	76.7		%	75.7		%	77.4		%	76.4		%	76.6		%
Expense ratio	28.3		%	26.0		%	30.0		%	29.7		%	29.5		%	30.6		%	30.0		%	28.1		%	30.0		%


[1]	Association - Financial Institution business represents $7, $19, $44, $65, $68, $71 and $72 for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.


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


[3]	Administrative service only fees and premium equivalent of claims under claim management.


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS



	THREE MONTHS ENDED																	NINE MONTHS ENDED
	Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013			Sept 30 2013		Jun 30 2013			Mar 31 2013			Sept 30 2014		Sept 30 2013
Investment management fees	$	153	$	150	$	146	$	146		$	139	$	137		$	133		$	449	$	409
Shareholder servicing fees	19		19		19		19			19		20			20			57		59
Other revenue	13		14		9		10			10		8			7			36		25
Total revenues	185		183		174		175			168		165			160			542		493
Sub-advisory	53		52		51		51			48		48			48			156		144
Employee compensation and benefits	26		26		25		26			24		24			25			77		73
Distribution and service	44		45		43		43			43		41			41			132		125
General, administrative and other	26		28		22		25			24		21			18			76		63
Total expenses	149		151		141		145			139		134			132			441		405
Income before income taxes	36		32		33		30			29		31			28			101		88
Income tax expense	14		11		12		11			10		11			10			37		31
Net income	22		21		21		19			19		20			18			64		57
Less: Restructuring and other costs, after-tax	—		—		—		—			1		(1		)	(1		)	—		(1		)
Less: Net realized capital gains (losses), after-tax, excluded from core earnings	—		—		—		(1		)	—		1			(1		)	—		—
Core earnings	$	22	$	21	$	21	$	20		$	18	$	20		$	20		$	64	$	58
Return on assets (bps, after-tax) [1]
Net income	9.0		8.5		8.6		8.0			8.4		8.8			8.0			8.8		8.4
Core earnings	9.0		8.5		8.6		8.5			8.0		8.8			8.9			8.8		8.6


[1]	Represents annualized earnings divided by average assets under management.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT BY DISTRIBUTION CHANNEL



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
RETAIL MUTUAL FUNDS [1]
Beginning balance	$	55,702		$	54,988		$	53,040		$	49,938		$	47,617		$	48,186		$	45,013		$	53,040		$	45,013
Sales	2,910			2,698			2,627			2,488			2,864			2,789			3,162			8,235			8,815
Redemptions	(2,703		)	(2,619		)	(2,688		)	(2,569		)	(2,901		)	(4,075		)	(3,176		)	(8,010		)	(10,152		)
Net flows	207			79			(61		)	(81		)	(37		)	(1,286		)	(14		)	225			(1,337		)
Change in market value and other [2]	(785		)	635			2,009			3,183			2,358			717			3,187			1,859			6,262
Ending balance	$	55,124		$	55,702		$	54,988		$	53,040		$	49,938		$	47,617		$	48,186		$	55,124		$	49,938
RETIREMENT MUTUAL FUNDS [3]
Beginning balance	$	18,628		$	18,358		$	17,878		$	16,821		$	15,991		$	17,622		$	16,598		$	17,878		$	16,598
Sales	843			1,212			1,065			1,067			923			937			942			3,120			2,802
Redemptions	(957		)	(1,729		)	(986		)	(1,428		)	(1,531		)	(2,590		)	(1,426		)	(3,672		)	(5,547		)
Net flows	(114		)	(517		)	79			(361		)	(608		)	(1,653		)	(484		)	(552		)	(2,745		)
Change in market value and other	(343		)	787			401			1,418			1,438			22			1,508			845			2,968
Ending balance	$	18,171		$	18,628		$	18,358		$	17,878		$	16,821		$	15,991		$	17,622		$	18,171		$	16,821
TOTAL MUTUAL FUNDS
Beginning balance	$	74,330		$	73,346		$	70,918		$	66,759		$	63,608		$	65,808		$	61,611		$	70,918		$	61,611
Sales	3,753			3,910			3,692			3,555			3,787			3,726			4,104			11,355			11,617
Redemptions	(3,660		)	(4,348		)	(3,674		)	(3,997		)	(4,432		)	(6,665		)	(4,602		)	(11,682		)	(15,699		)
Net flows	93			(438		)	18			(442		)	(645		)	(2,939		)	(498		)	(327		)	(4,082		)
Change in market value and other	(1,128		)	1,422			2,410			4,601			3,796			739			4,695			2,704			9,230
Ending balance	$	73,295		$	74,330		$	73,346		$	70,918		$	66,759		$	63,608		$	65,808		$	73,295		$	66,759
AVERAGE MUTUAL FUNDS ASSETS UNDER MANAGEMENT	$	73,813		$	73,838		$	72,132		$	68,839		$	65,183		$	64,708		$	63,710		$	72,107		$	64,185
ANNUITY MUTUAL FUND ASSETS [4]	$	22,867		$	24,529		$	24,957		$	25,817		$	25,638		$	25,901		$	26,628		$	22,867		$	25,638
TOTAL ASSETS UNDER MANAGEMENT	$	96,162		$	98,859		$	98,303		$	96,735		$	92,397		$	89,509		$	92,436		$	96,162		$	92,397
AVERAGE ASSETS UNDER MANAGEMENT	$	97,511		$	98,581		$	97,519		$	94,566		$	90,953		$	90,973		$	90,042		$	96,449		$	90,022

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

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

[3] Consists of mutual funds offered within employee directed retirement plans.

[4] Consists of Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
EQUITY
Beginning balance	$	45,171		$	44,489		$	42,426		$	39,057		$	36,186		$	38,453		$	35,843		$	42,426		$	35,843
Sales	1,768			1,995			1,906			1,678			1,591			1,446			1,559			5,669			4,596
Redemptions	(1,844		)	(2,145		)	(1,819		)	(2,043		)	(2,054		)	(4,821		)	(2,951		)	(5,808		)	(9,826		)
Net flows	(76		)	(150		)	87			(365		)	(463		)	(3,375		)	(1,392		)	(139		)	(5,230		)
Change in market value and other	(787		)	832			1,976			3,734			3,334			1,108			4,002			2,021			8,444
Ending balance	$	44,308		$	45,171		$	44,489		$	42,426		$	39,057		$	36,186		$	38,453		$	44,308		$	39,057
FIXED INCOME
Beginning balance	$	14,942		$	14,661		$	14,632		$	14,595		$	14,944		$	15,213		$	14,524		$	14,632		$	14,524
Sales	1,317			1,241			1,134			1,255			1,507			1,432			1,755			3,692			4,694
Redemptions	(1,329		)	(1,064		)	(1,257		)	(1,322		)	(1,802		)	(1,323		)	(1,133		)	(3,650		)	(4,258		)
Net flows	(12		)	177			(123		)	(67		)	(295		)	109			622			42			436
Change in market value and other	(165		)	104			152			104			(54		)	(378		)	67			91			(365		)
Ending balance	$	14,765		$	14,942		$	14,661		$	14,632		$	14,595		$	14,944		$	15,213		$	14,765		$	14,595
MULTI-STRATEGY INVESTMENTS [1]
Beginning balance	$	14,217		$	14,196		$	13,860		$	13,107		$	12,478		$	12,142		$	11,244		$	13,860		$	11,244
Sales	668			674			652			622			689			848			790			1,994			2,327
Redemptions	(487		)	(1,139		)	(598		)	(632		)	(576		)	(521		)	(518		)	(2,224		)	(1,615		)
Net flows	181			(465		)	54			(10		)	113			327			272			(230		)	712
Change in market value and other	(176		)	486			282			763			516			9			626			592			1,151
Ending balance	$	14,222		$	14,217		$	14,196		$	13,860		$	13,107		$	12,478		$	12,142		$	14,222		$	13,107
TOTAL MUTUAL FUNDS [2]	$	73,295		$	74,330		$	73,346		$	70,918		$	66,759		$	63,608		$	65,808		$	73,295		$	66,759

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

[2] Excludes annuity mutual fund assets.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
NET INCOME (LOSS)
Individual Annuity	$	(23	)	$	92		$	108		$	41		$	69		$	23		63			$	177		$	155
Institutional and other [1] [2] [3]	51			(596		)	37			(56		)	(62		)	(355		)	(357		)	(508		)	(774		)
Talcott Resolution net income (loss)	28			(504		)	145			(15		)	7			(332		)	(294		)	(331		)	(619		)
Less: Unlock benefit (charge), after tax	(102		)	15			12			1			(104		)	(9		)	3			(75		)	(110		)
Less: Restructuring and other costs, after tax	—			—			—			—			(1		)	1			(1		)	—			(1		)
Less: Income (loss) from discontinued operations, after tax [2]	—			(617		)	29			(70		)	(73		)	(421		)	(484		)	(588		)	(978		)
Less: Net reinsurance gain (loss) on dispositions, after tax	—			—			—			—			—			1			44			—			45
Less: Net realized gains (losses) and other, after tax and DAC, excluded from core earnings	8			(3		)	(8		)	(45		)	70			(7		)	49			(3		)	112
Talcott Resolution core earnings	$	122		$	101		$	112		$	99		$	115		$	103		$	95		$	335		$	313
CORE EARNINGS (LOSSES)
Individual Annuity	$	83		$	84		$	89		$	81		$	89		$	79		$	73		$	256		$	241
Institutional and other	39			17			23			18			26			24			22			79			72
Talcott Resolution core earnings	$	122		$	101		$	112		$	99		$	115		$	103		$	95		$	335		$	313


[1]	Other consists of PPLI, residual income or tax benefits associated with the reinsurance of the policyholder and separate account liabilities of the Retirement Plans and Individual Life businesses and International discontinued operations.


[2]	Loss from discontinued operations, after tax includes loss on disposition and income (loss) from discontinued operations during the period. The three months ended June 30, 2014 includes a loss on disposition of $659 related to the Japan annuity business; the three months ended June 30, 2013 includes a loss on disposition of $102 related to the U.K. variable annuity business.


[3]	Includes derivative gains of $71 for the three months ended March 31, 2013 primarily associated with previously terminated derivatives associated with fixed rate bonds sold in

connection with the Retirement Plans and Individual Life business dispositions.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013		Sept 30 2013		Jun 30 2013		Mar 31 2013		Sept 30 2014		Sept 30 2013
CORE EARNINGS - RETURN ON ASSETS (bps, after tax) [1]
Individual Annuity	50.7		49.0		50.3		45.0		49.0		42.3		38.4		50.5		43.5
FULL SURRENDER RATES [2]
Variable Annuity	16.5	%	13.9	%	12.3	%	14.5	%	20.3	%	17.5	%	14.5	%	14.3	%	17.5	%
CONTRACT COUNTS (in thousands)
Variable Annuity	694		721		747		774		802		839		873
Fixed Annuity and Other	143		151		163		170		176		180		184


[1]	Represents annualized earnings divided by a two-point average of assets under management.


[2]	Represents annualized surrenders (full contract liquidation excluding partial withdrawals) divided by a two-point average of annuity account values.



	AS OF:
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013
VARIABLE ANNUITY DEATH AND LIVING BENEFITS
S&P 500 index value at end of period	1,972			1,960			1,872			1,848			1,682			1,606			1,569

Total account value with guaranteed minimum death benefits (“GMDB”)	$	54,349		$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500
Gross net amount at risk ("NAR")	3,972			4,024			4,192			4,325			4,657			5,195			5,349
NAR reinsured	78		%	78		%	77		%	76		%	75		%	72		%	72		%
Contracts in the Money [2]	27		%	14		%	17		%	16		%	22		%	33		%	29		%
% In the Money [2] [3]	13		%	27		%	23		%	26		%	19		%	14		%	16		%
Retained NAR [1]	862			891			971			1,026			1,183			1,457			1,498
Net GAAP liability for GMDB benefits	198			210			209			211			206			225			228

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	25,774		$	28,161		$	29,036		$	30,262		$	30,907		$	32,035		$	34,106
Gross NAR	160			139			163			167			228			344			361
NAR reinsured	24		%	21		%	21		%	20		%	18		%	18		%	19		%
Contracts in the Money [2]	6		%	5		%	6		%	5		%	9		%	14		%	13		%
% In the Money [2] [3]	10		%	13		%	12		%	12		%	9		%	8		%	9		%
Retained NAR [1]	122			110			129			134			187			282			293
Net GAAP liability (asset) for non-lifetime GMWB benefits	10			(43		)	(15		)	(3		)	158			513			651
Net GAAP liability for lifetime GMWB benefits	128			121			113			106			94			73			65


[1]	Policies with a guaranteed living benefit 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 the GMWB is released. Similarly, when a policy goes into benefit status on a GMWB, its GMDB NAR is released.


[2]	Excludes contracts that are fully reinsured.


[3]	For all contracts that are “in the money”, this represents the percentage by which the average contract was in the money.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

ACCOUNT VALUE ROLLFORWARD



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
VARIABLE ANNUITY
Beginning balance	$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500		$	64,824		$	61,812		$	64,824
Deposits	52			58			66			60			77			180			226			176			483
Partial withdrawals	(490		)	(563		)	(634		)	(748		)	(647		)	(630		)	(710		)	(1,687		)	(1,987		)
Full surrenders	(2,327		)	(2,041		)	(1,860		)	(2,235		)	(3,153		)	(2,805		)	(2,356		)	(6,228		)	(8,314		)
Death benefits/annuitizations/other [1]	(465		)	(508		)	(521		)	(470		)	(445		)	(472		)	(468		)	(1,494		)	(1,385		)
Transfers	(1		)	(2		)	(1		)	—			(2		)	(1		)	1			(4		)	(2		)
Net flows	(3,231		)	(3,056		)	(2,950		)	(3,393		)	(4,170		)	(3,728		)	(3,307		)	(9,237		)	(11,205		)
Change in market value/change in reserve/interest credited and other	(770		)	1,859			685			3,693			3,103			807			3,983			1,774			7,893
Ending balance	$	54,349		$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500		$	54,349		$	61,512
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	9,429		$	9,917		$	10,142		$	10,455		$	10,670		$	10,797		$	10,848		$	10,142		$	10,848
Deposits	—			—			—			—			—			2			6			—			8
Surrenders	(533		)	(576		)	(331		)	(381		)	(264		)	(161		)	(103		)	(1,440		)	(528		)
Death benefits/annuitizations/other [1]	(13		)	(19		)	7			(58		)	(64		)	(72		)	(74		)	(25		)	(210		)
Transfers	2			1			1			(2		)	(2		)	(3		)	—			4			(5		)
Net flows	(544		)	(594		)	(323		)	(441		)	(330		)	(234		)	(171		)	(1,461		)	(735		)
Change in market value/change in reserve/interest credited and other	74			106			98			128			115			107			120			278			342
Ending balance	$	8,959		$	9,429		$	9,917		$	10,142		$	10,455		$	10,670		$	10,797		$	8,959		$	10,455
TOTAL INDIVIDUAL ANNUITY
Beginning balance	$	67,779		$	69,464		$	71,954		$	71,967		$	73,249		$	76,297		$	75,672		$	71,954		$	75,672
Deposits	52			58			66			60			77			182			232			176			491
Surrenders	(3,350		)	(3,180		)	(2,825		)	(3,364		)	(4,064		)	(3,596		)	(3,169		)	(9,355		)	(10,829		)
Death benefits/annuitizations/other [1]	(478		)	(527		)	(514		)	(528		)	(509		)	(544		)	(542		)	(1,519		)	(1,595		)
Transfers	1			(1		)	—			(2		)	(4		)	(4		)	1			—			(7		)
Net flows	(3,775		)	(3,650		)	(3,273		)	(3,834		)	(4,500		)	(3,962		)	(3,478		)	(10,698		)	(11,940		)
Change in market value/change in reserve/interest credited and other	(696		)	1,965			783			3,821			3,218			914			4,103			2,052			8,235
Ending balance	$	63,308		$	67,779		$	69,464		$	71,954		$	71,967		$	73,249		$	76,297		$	63,308		$	71,967


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Fee income	$	2		$	4		$	3		$	4		$	2		$	2		$	3		$	9		$	7
Net investment income	5			5			2			8			6			—			13			12			19
Other revenues	—			—			—			1			—			—			—			—			—
Net realized capital gains (losses)	11			14			(9		)	2			(5		)	10			(96		)	16			(91		)
Total revenues	18			23			(4		)	15			3			12			(80		)	37			(65		)
Insurance operating costs and other expenses [1]	4			20			12			34			(60		)	14			26			36			(20		)
Loss on extinguishment of debt [2]	—			—			—			—			—			—			213			—			213
Reinsurance loss on dispositions [3]	—			—			—			—			—			—			69			—			69
Interest expense	93			94			95			96			94			100			107			282			301
Restructuring and other costs	22			8			20			15			14			19			16			50			49
Total expenses	119			122			127			145			48			133			431			368			612
Loss before income taxes	(101		)	(99		)	(131		)	(130		)	(45		)	(121		)	(511		)	(331		)	(677		)
Income tax benefit	(35		)	(35		)	(46		)	(36		)	(17		)	(46		)	(153		)	(116		)	(216		)
Net loss	(66		)	(64		)	(85		)	(94		)	(28		)	(75		)	(358		)	(215		)	(461		)
Less: Restructuring and other costs, after tax	(14		)	(5		)	(13		)	(10		)	(9		)	(12		)	(10		)	(32		)	(31		)
Less: Loss on extinguishment of debt, after tax [2]	—			—			—			—			—			—			(138		)	—			(138		)
Less: Net reinsurance loss on dispositions, after tax [3]	—			—			—			—			—			—			(69		)	—			(69		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core losses	6			11			(9		)	8			(3		)	6			(68		)	8			(65		)
Core losses	$	(58	)	$	(70	)	$	(63	)	$	(92	)	$	(16	)	$	(69	)	$	(73	)	$	(191	)	$	(158	)

[1]

In the three months ended September 30, 2014 and 2013 insurance operating costs and other expenses include a benefit of $10 and $57, before tax, respectively, for recoveries for past legal expenses associated with closed litigation and a benefit of $19, before tax, in the three months ended September 30, 2013 from the resolution of items under the Company's spin-off agreement with its former parent company.


[2]	In the three months ended March 31, 2013 the Company repurchased approximately $800 of outstanding senior notes and debentures. 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 three months ended March 31, 2013 reinsurance loss on dispositions consists of a reduction in goodwill related to the sale of the Retirement Plans business.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	485		$	483		$	498		$	500		$	521		$	529		$	535		$	1,466		$	1,585
Tax-exempt	117			118			118			118			117			116			116			353			349
Total fixed maturities	$	602		$	601		$	616		$	618		$	638		$	645		$	651		$	1,819		$	1,934
Equity securities, available-for-sale	9			7			7			9			7			8			6			23			21
Mortgage loans	65			66			66			69			65			62			64			197			191
Policy loans	20			19			20			21			20			22			20			59			62
Limited partnerships and other alternative investments [2]	100			53			97			80			46			95			66			250			207
Other [3]	44			48			43			44			40			37			46			135			123
Subtotal	840			794			849			841			816			869			853			2,483			2,538
Investment expense	(30		)	(26		)	(25		)	(30		)	(29		)	(28		)	(28		)	(81		)	(85		)
Total net investment income	$	810		$	768		$	824		$	811		$	787		$	841		$	825		$	2,402		$	2,453
Annualized investment yield, before tax [4]	4.5		%	4.3		%	4.5		%	4.4		%	4.3		%	4.6		%	4.5		%	4.4		%	4.5		%
Annualized investment yield, after-tax [4]	3.2		%	3.0		%	3.2		%	3.1		%	3.0		%	3.1		%	3.0		%	3.1		%	3.0		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	4.1		%	4.1		%	4.2		%	4.2		%	4.2		%	4.2		%	4.3		%	4.1		%	4.3		%
New money yield [5]	3.2		%	3.8		%	3.9		%	4.0		%	4.4		%	3.6		%	3.4		%	3.7		%	4.4		%
Sales/maturities yield [6]	3.7		%	3.9		%	4.2		%	3.8		%	3.9		%	3.5		%	3.6		%	3.9		%	3.9		%
Portfolio duration (in years) [7]	5.4			5.1			5.0			5.2			5.3			5.5			5.4			5.4			5.3


[1]	Includes income on short-term bonds.


[2]	Alternative investments include 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]

Represents annualized net investment income divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding repurchase agreement collateral, if any, and derivatives book value. Yield calculations for each period exclude assets associated with the dispositions of the Japan annuities business, the Retirement Plans and Individual Life businesses, and the Hartford Life International Limited business, as applicable.


[5]	Represents the yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement collateral, if any. Excluding the impact of reinvestment of Japan sale proceeds into short duration, high quality assets, the new money yield for the three months ended September 30, 2014, is 3.6%.


[6]	Represents the yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement collateral, if any.


[7]	Excludes certain short-term securities and derivative instruments related to hedging U.S. variable annuity liabilities and assets associated with the Company's former Japan annuities business.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

PROPERTY & CASUALTY COMBINED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	159		$	163		$	166		$	165		$	168		$	175		$	172		$	488		$	515
Tax-exempt	92			93			92			92			92			91			92			277			275
Total fixed maturities	$	251		$	256		$	258		$	257		$	260		$	266		$	264		$	765		$	790
Equity securities, available-for-sale	3			3			3			4			3			4			2			9			9
Mortgage loans	17			16			16			16			13			11			12			49			36
Limited partnerships and other alternative investments [2]	47			18			48			46			20			50			39			113			109
Other [3]	8			9			10			12			9			16			3			27			28
Subtotal	326			302			335			335			305			347			320			963			972
Investment expense	(10		)	(10		)	(9		)	(11		)	(9		)	(9		)	(8		)	(29		)	(26		)
Total net investment income	$	316		$	292		$	326		$	324		$	296		$	338		$	312		$	934		$	946
Annualized investment yield, before tax [4]	4.4		%	4.1		%	4.5		%	4.5		%	4.2		%	4.8		%	4.5		%	4.4		%	4.5		%
Annualized investment yield, after-tax [4]	3.3		%	3.0		%	3.4		%	3.5		%	3.1		%	3.6		%	3.5		%	3.3		%	3.4		%
Annualized investment yield, before tax; excluding limited partnership and other alternative investments [4]	4.0		%	4.0		%	4.1		%	4.1		%	4.2		%	4.2		%	4.2		%	4.0		%	4.2		%
New money yield [5]	3.7		%	3.9		%	4.0		%	4.0		%	4.5		%	3.9		%	3.3		%	3.9		%	3.9		%
Sales/maturities yield [6]	4.0		%	4.2		%	4.3		%	4.0		%	4.4		%	3.8		%	3.8		%	4.2		%	4.0		%
Portfolio duration (in years)	5.2			4.6			4.5			5.3			5.4			5.5			5.3			5.2			5.4

[1]Includes income on short-term bonds.

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

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

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

agreement collateral, if any, and derivatives book value.

[5]Represents the yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase

agreement collateral, if any.

[6]Represents the yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities,

cash equivalent securities, and repurchase agreement collateral, if any.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME BY SEGMENT

CONSOLIDATED



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013		Sept 30 2013		Jun 30 2013		Mar 31 2013		Sept 30 2014		Sept 30 2013
Net Investment Income (Loss)
Commercial Markets	$	250	$	230	$	256	$	252	$	230	$	262	$	240	$	736	$	732
Consumer Markets	33		31		35		36		33		39		37		99		109
P&C Other Operations	33		31		35		36		33		37		35		99		105
Total Property & Casualty	$	316	$	292	$	326	$	324	$	296	$	338	$	312	$	934	$	946
Group Benefits	93		95		96		97		96		100		97		284		293
Talcott Resolution	396		376		400		382		389		403		403		1,172		1,195
Corporate	5		5		2		8		6		—		13		12		19
Total net investment income	$	810	$	768	$	824	$	811	$	787	$	841	$	825	$	2,402	$	2,453

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Sept 30 2014			Sept 30 2013
Net Realized Capital Gains (Losses)
Gross gains on sales [1]	$	116		$	122		$	183		$	292		$	105		$	207		$	1,709		$	421		$	2,021
Gross losses on sales	(29		)	(33		)	(129		)	(333		)	(137		)	(117		)	(72		)	(191		)	(326		)
Net impairment losses	(14		)	(7		)	(22		)	(14		)	(26		)	(12		)	(21		)	(43		)	(59		)
Valuation allowances on mortgage loans	—			(3		)	—			(1		)	—			—			—			(3		)	—
Periodic net coupon settlements on credit derivatives [2]	—			2			(1		)	(3		)	(1		)	—			(4		)	1			(5		)
Results of variable annuity hedge program
GMWB derivatives, net	6			(6		)	15			43			203			(31		)	47			15			219
Macro hedge	12			(15		)	(10		)	(52		)	(50		)	(47		)	(85		)	(13		)	(182		)
Total results of variable annuity hedge program	18			(21		)	5			(9		)	153			(78		)	(38		)	2			37
Other net gain (loss) [3]	(22		)	(64		)	(71		)	70			37			21			70			(157		)	128
Total net realized capital gains (losses)	$	69		$	(4	)	$	(35	)	$	2		$	131		$	21		$	1,644		$	30		$	1,796
Less: Realized gain on dispositions, before tax	—			—			—			—			—			1			1,574			—			1,575
Less: Realized gains (losses), included in core earnings, before tax	7			7			—			(2		)	1			3			(3		)	14			1
Total net realized capital gains (losses) and other, before tax and DAC, excluded from core earnings (losses)	62			(11		)	(35		)	4			130			17			73			16			220
Less: Impacts of DAC	13			(1		)	16			(10		)	28			(6		)	22			28			44
Less: Impacts of tax	22			(6		)	(17		)	3			39			1			26			(1		)	66
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings (losses)	$	27		$	(4	)	$	(34	)	$	11		$	63		$	22		$	25		$	(11	)	$	110


[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]	Included in core earnings.


[3]	Primarily consists of changes in value of non-qualifying derivatives including interest rate derivatives used to manage duration and the Japan fixed payout annuity hedge. Includes $71 of derivative gains relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended March 31, 2013 and nine months ended September 30, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED



	Sept 30 2014				Jun 30 2014				Mar 31 2014				Dec 31 2013				Sept 30 2013
	Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent
Total investments	$	76,231	100.0	%	$	76,239	100.0	%	$	97,084	100.0	%	$	98,401	100.0	%	$	103,064	100.0	%
Less: Equity securities, trading	12		—	%	12		—	%	17,418		17.9	%	19,745		20.1	%	22,343		21.7	%
Total investments excluding trading securities	$	76,219	100.0	%	$	76,227	100.0	%	$	79,666	82.1	%	$	78,656	79.9	%	$	80,721	78.3	%
Asset-backed securities	$	2,439	4.1	%	$	2,309	3.8	%	$	2,252	3.6	%	$	2,365	3.8	%	$	2,362	3.7	%
Collateralized debt obligations	2,445		4.1	%	2,434		4.0	%	2,394		3.8	%	2,387		3.8	%	2,550		4.0	%
Commercial mortgage-backed securities	4,482		7.5	%	4,696		7.8	%	4,568		7.2	%	4,446		7.1	%	4,489		7.0	%
Corporate	27,714		46.6	%	28,668		47.7	%	29,040		45.8	%	28,490		45.7	%	28,770		45.0	%
Foreign government/government agencies	1,672		2.8	%	1,707		2.8	%	4,050		6.4	%	4,104		6.6	%	3,968		6.2	%
Municipal	12,761		21.4	%	12,713		21.1	%	12,682		20.0	%	12,173		19.5	%	12,543		19.6	%
Residential mortgage-backed securities	3,995		6.7	%	4,426		7.3	%	4,556		7.2	%	4,647		7.5	%	5,086		7.9	%
U.S. Treasuries	4,078		6.8	%	3,293		5.5	%	3,797		6.0	%	3,745		6.0	%	4,255		6.6	%
Total fixed maturities, available-for-sale	$	59,586	100.0	%	$	60,246	100.0	%	$	63,339	100.0	%	$	62,357	100.0	%	$	64,023	100.0	%
U.S. government/government agencies	$	7,874	13.2	%	$	7,569	12.6	%	$	8,194	12.9	%	$	8,208	13.2	%	$	8,923	13.9	%
AAA	7,074		11.9	%	6,731		11.2	%	6,410		10.1	%	6,376		10.2	%	6,377		10.0	%
AA	10,094		16.9	%	10,458		17.4	%	12,930		20.4	%	12,273		19.7	%	12,923		20.2	%
A	16,143		27.1	%	16,437		27.3	%	16,084		25.4	%	15,498		24.9	%	15,412		24.1	%
BBB	14,764		24.8	%	15,402		25.4	%	16,006		25.3	%	16,087		25.7	%	16,187		25.2	%
BB & below	3,637		6.1	%	3,649		6.1	%	3,715		5.9	%	3,915		6.3	%	4,201		6.6	%
Total fixed maturities, available-for-sale	$	59,586	100.0	%	$	60,246	100.0	%	$	63,339	100.0	%	$	62,357	100.0	%	$	64,023	100.0	%


[1]	Amount represents the value at which the assets are presented on the Consolidating Balance Sheets (refer to page 4).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES



	As of September 30, 2014
	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets [1]
Top Ten Corporate and Equity, Available-for-sale, Exposures by Sector
Financial Services	$	5,114	$	5,421	7.1	%
Utilities	4,344		4,769		6.3	%
Energy	3,409		3,709		4.9	%
Consumer non-cyclical	3,380		3,697		4.9	%
Technology and communications	3,130		3,447		4.5	%
Basic Industry	2,211		2,330		3.1	%
Capital goods	1,895		2,078		2.7	%
Consumer cyclical	1,645		1,754		2.3	%
Transportation	900		974		1.3	%
Other	167		183		0.2	%
Total	$	26,195	$	28,362	37.3	%
Top Ten Exposures by Issuer [2]
State of Illinois	$	319	$	328	0.4	%
Goldman Sachs Group Inc.	272		291		0.4	%
State of California	252		285		0.4	%
JP Morgan Chase & Co.	285		276		0.4	%
National Grid PLC	240		275		0.4	%
Commonwealth of Massachusetts	240		269		0.3	%
Bank of America Corp.	244		248		0.3	%
General Electric Co.	246		240		0.3	%
New York State Dormitory Authority	219		236		0.3	%
Verizon Communications Inc.	194		229		0.3	%
Total	$	2,511	$	2,677	3.5	%


[1]	Excludes equity securities, trading.


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

from derivative transactions.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

APPENDIX

BASIS OF PRESENTATION AND DEFINITIONS

All amounts are in millions, except for per share and ratio information unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.

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.

Property & Casualty is organized into three reporting segments: P&C Commercial, Consumer Markets and P&C Other Operations ("Property & Casualty Combined"). 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. 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.

Talcott Resolution is comprised of runoff business from the Company's U.S. annuity, the retained Japan fixed payout annuity liabilities, and institutional and private-placement life insurance businesses, as well as the Japan business sold in June 2014, the U.K. variable annuity business sold in December 2013 and the Retirement Plans and Individual Life businesses sold in January 2013.

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.

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.

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 and other costs 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. 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 core earnings to net income (loss) 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.

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.

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 herein on 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.

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).

ROA, core earnings is a non-GAAP financial measure that the Company uses to evaluate the Mutual Funds and Talcott Resolution segments' 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 these 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.

HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.2 - EXHIBIT - October 27, 2014

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HARTFORD FINANCIAL SERVICES GROUP, INC. Reports