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

Attached files

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8-K - FORM 8-K - HARTFORD FINANCIAL SERVICES GROUP, INC.	form8-kearningsreleasecove.htm
EX-99.1 - EXHIBIT 99.1 - HARTFORD FINANCIAL SERVICES GROUP, INC.	ex991earningsnewsrelease02.htm

INVESTOR FINANCIAL SUPPLEMENT

December 31, 2014

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of January 29, 2015
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	8

PROPERTY & CASUALTY	Property & Casualty (Combined) Unpaid Loss and Loss Adjustment Expense Reserve Rollforward	9
	Property & Casualty (Combined) Income Statements	10
	Property & Casualty (Combined) Underwriting Ratios	11
	Commercial Lines Underwriting Results	12
	Commercial Lines Underwriting Ratios	13
	Commercial Lines Supplemental Data	14
	Personal Lines Underwriting Results	15
	Personal Lines Underwriting Ratios	16
	Personal Lines Supplemental Data	17
	P&C Other Operations Underwriting Results	18

GROUP BENEFITS	Income Statements	19
	Supplemental Data	20

MUTUAL FUNDS	Income Statements	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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014		Dec 31 2013
HIGHLIGHTS
Net income (loss)	$	382		$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	798	$	176
Core earnings	$	426		$	477		$	144		$	501		$	382		$	416		$	231		$	390		$	1,548	$	1,419
Total revenues	$	4,617		$	4,769		$	4,616		$	4,612		$	4,777		$	4,862		$	4,734		$	6,300		$	18,614	$	20,673
Total assets	$	245,013		$	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		$	0.89		$	(1.04	)	$	1.10		$	0.70		$	0.65		$	(0.42	)	$	(0.58	)	$	1.81	$	0.37
Core earnings available to common shareholders	$	0.99		$	1.09		$	0.32		$	1.11		$	0.85		$	0.92		$	0.51		$	0.87		$	3.50	$	3.17
Diluted earnings (losses) per common share [1]
Net income (loss) available to common shareholders	$	0.86		$	0.86		$	(1.00	)	$	1.03		$	0.65		$	0.60		$	(0.39	)	$	(0.49	)	$	1.73	$	0.36
Core earnings available to common shareholders	$	0.96		$	1.06		$	0.31		$	1.05		$	0.79		$	0.85		$	0.47		$	0.79		$	3.36	$	2.89
Weighted average common shares outstanding (basic)	429.6			437.2			450.6			449.8			451.1			452.1			451.4			436.3			441.8		447.7
Dilutive effect of stock compensation	6.8			5.9			6.3			6.2			5.1			4.6			4.2			3.9			6.3		4.5
Dilutive effect of warrants	6.2			7.7			11.0			22.6			29.9			33.9			33.4			31.7			12.1		32.2
Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares	442.6			450.8			467.9			478.6			486.1			490.6			489.0			471.9			460.2		484.4
Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares [2]	442.6			450.8			467.9			478.6			486.1			490.6			489.0			493.1			460.2		490.6
Common shares outstanding	424.4			433.6			450.8			452.5			453.3			448.5			453.9			435.3			424.4		453.3
Book value per common share	$	44.11		$	43.44		$	43.10		$	43.70		$	41.71		$	42.20		$	41.89		$	46.78
Per common share impact of accumulated other comprehensive income [3]	$	2.19		$	2.49		$	2.58		$	1.46		$	(0.17	)	$	(0.04	)	$	0.16		$	3.79
Book value per common share (excluding AOCI)	$	41.92		$	40.95		$	40.52		$	42.24		$	41.88		$	42.24		$	41.73		$	42.99
Book value per diluted share	$	42.84		$	42.23		$	41.70		$	41.56		$	39.14		$	38.87		$	38.59		$	42.43
Per diluted share impact of AOCI	$	2.13		$	2.41		$	2.49		$	1.39		$	(0.16	)	$	(0.04	)	$	0.15		$	3.34
Book value per diluted share (excluding AOCI)	$	40.71		$	39.82		$	39.21		$	40.17		$	39.30		$	38.91		$	38.44		$	39.09
Common shares outstanding and dilutive potential common shares	437.0			446.0			465.9			475.8			483.0			486.9			492.7			493.0
RETURN ON EQUITY
ROE (net income (loss) last 12 months to stockholders' equity including AOCI)	4.2		%	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)	8.4		%	8.2		%	7.8		%	8.0		%	7.4		%	6.4		%	6.1		%	5.9		%


[1]	Weighted average common shares outstanding and dilutive potential common shares 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]	The three months ended March 31, 2013 and the year ended December 31, 2013 include the dilutive effect of the assumed conversion of 21.2 million and 6.2 million, respectively, preferred shares. 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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Core earnings (losses):
Commercial Lines	$	251		$	268		$	213		$	264		$	229		$	176		$	198		$	224		$	996		$	827
Personal Lines	65			71			(27		)	101			49			68			15			73			210			205
P&C Other Operations	—			14			(146		)	21			22			19			(73		)	21			(111		)	(11		)
Property & Casualty ("P&C") Combined	$	316		$	353		$	40		$	386		$	300		$	263		$	140		$	318		$	1,095		$	1,021
Group Benefits	45			38			52			45			55			36			37			30			180			158
Mutual Funds	27			22			21			21			20			18			20			20			91			78
Sub-total	388			413			113			452			375			317			197			368			1,366			1,257
Talcott Resolution	98			122			101			112			99			115			103			95			433			412
Corporate	(60		)	(58		)	(70		)	(63		)	(92		)	(16		)	(69		)	(73		)	(251		)	(250		)
CONSOLIDATED CORE EARNINGS	$	426		$	477		$	144		$	501		$	382		$	416		$	231		$	390		$	1,548		$	1,419
Add: Unlock benefit (charge), after-tax	$	13		$	(102	)	$	15		$	12		$	1		$	(104	)	$	(9	)	$	3		$	(62	)	$	(109	)
Add: Restructuring and other costs, after-tax	(17		)	(14		)	(5		)	(13		)	(10		)	(10		)	(12		)	(12		)	(49		)	(44		)
Add: Income (loss) from discontinued operations, after-tax [1]	37			—			(617		)	29			(70		)	(72		)	(423		)	(484		)	(551		)	(1,049		)
Add: Pension settlement, after-tax [2]	(83		)	—			—			—			—			—			—			—			(83		)	—
Add: Loss on extinguishment of debt, after-tax	—			—			—			—			—			—			—			(138		)	—			(138		)
Add: Net reinsurance gain (loss) on dispositions, after-tax [1]	15			—			—			—			—			—			1			(25		)	15			(24		)
Add: Net realized capital gains (losses), after-tax and DAC, excluded from core earnings	(9		)	27			(4		)	(34		)	11			63			22			25			(20		)	121
Net income (loss)	$	382		$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	798		$	176

[1] For further information, refer to footnotes [1]and [3] on page 3.

[2] Consists of a charge related to voluntary lump-sum settlements with vested participants in the Company's defined benefit pension plan who had separated from service, but who had not yet commenced annuity benefits.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Earned premiums	$	3,378		$	3,337		$	3,319		$	3,302		$	3,346		$	3,338		$	3,294		$	3,253		$	13,336		$	13,231
Fee income	474			524			502			496			544			538			513			510			1,996			2,105
Net investment income	752			810			768			824			811			787			841			825			3,154			3,264
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(18		)	(15		)	(8		)	(23		)	(15		)	(28		)	(17		)	(33		)	(64		)	(93		)
OTTI losses recognized in other comprehensive income	2			1			1			1			1			2			5			12			5			20
Net OTTI losses recognized in earnings	(16		)	(14		)	(7		)	(22		)	(14		)	(26		)	(12		)	(21		)	(59		)	(73		)
Net realized capital gains on investments transferred at fair value in business dispositions by reinsurance [1]	—			—			—			—			—			—			1			1,574			—			1,575
Other net realized capital gains (losses)	2			83			3			(13		)	16			157			32			91			75			296
Total net realized capital gains (losses)	(14		)	69			(4		)	(35		)	2			131			21			1,644			16			1,798
Other revenues	27			29			31			25			74			68			65			68			112			275
Total revenues	4,617			4,769			4,616			4,612			4,777			4,862			4,734			6,300			18,614			20,673
Benefits, losses and loss adjustment expenses	2,582			2,624			3,023			2,576			2,703			2,764			2,922			2,659			10,805			11,048
Amortization of DAC	381			580			372			396			380			594			391			429			1,729			1,794
Insurance operating costs and other expenses [2]	1,139			976			977			936			1,116			964			1,084			1,012			4,028			4,176
Loss on extinguishment of debt	—			—			—			—			—			—			—			213			—			213
Reinsurance (gain) loss on dispositions [1]	(23		)	—			—			—			—			—			—			1,574			(23		)	1,574
Interest expense	94			93			94			95			96			94			100			107			376			397
Total benefits, losses and expenses	4,173			4,273			4,466			4,003			4,295			4,416			4,497			5,994			16,915			19,202
Income from continuing operations before income taxes	444			496			150			609			482			446			237			306			1,699			1,471
Income tax expense	99			108			—			143			98			81			4			63			350			246
Income from continuing operations, after-tax	345			388			150			466			384			365			233			243			1,349			1,225
Income (loss) from discontinued operations, after-tax [3]	37			—			(617		)	29			(70		)	(72		)	(423		)	(484		)	(551		)	(1,049		)
Net income (loss)	$	382		$	388		$	(467	)	$	495		$	314		$	293		$	(190	)	$	(241	)	$	798		$	176


[1]	Amounts pertain to the Retirement Plans and Individual Life businesses sold in 2013.


[2]	The three months ended December 31, 2014 includes a pension settlement charge of $128, before tax, for voluntary lump-sum settlements with vested participants in the Company's defined benefit pension plan who had separated from service, but who had not yet commenced annuity benefits.


[3]	The three months ended December 31, 2014 includes a benefit of $29, after-tax, from the partial reduction of the deferred tax valuation allowance on capital loss carryovers established upon the sale of the Japan annuity business. 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

DECEMBER 31, 2014



													CONSOLIDATED [1]
	P&C (COMBINED)		GROUP BENEFITS			MUTUAL FUNDS		TALCOTT RESOLUTION		CORPORATE			Dec 31 2014		Dec 31 2013
Investments
Fixed maturities, available-for-sale, at fair value	$	25,484	$	7,323		$	13	$	25,468	$	1,096		$	59,384	$	62,357
Fixed maturities, at fair value using the fair value option	126		83			—		279		—			488		844
Equity securities, trading, at fair value	—		—			—		11		—			11		19,745
Equity securities, available-for-sale, at fair value	240		159			—		513		135			1,047		868
Mortgage loans	1,693		753			—		3,110		—			5,556		5,598
Policy loans, at outstanding balance	—		1			—		1,430		—			1,431		1,420
Limited partnerships and other alternative investments	1,506		183			—		1,253		—			2,942		3,040
Other investments	73		18			—		434		11			536		521
Short-term investments	1,038		372			229		2,252		992			4,883		4,008
Total investments	$	30,160	$	8,892		$	242	$	34,750	$	2,234		$	76,278	$	98,401
Cash	119		17			2		261		—			399		1,428
Premiums receivable and agents’ balances	3,175		227			—		27		—			3,429		3,465
Reinsurance recoverables	2,730		600			—		19,590		—			22,920		23,330
DAC	576		36			11		1,200		—			1,823		2,161
Deferred income taxes	355		(168		)	2		938		1,770			2,897		3,840
Goodwill	119		—			149		—		230			498		498
Property and equipment, net	670		71			1		80		9			831		877
Other assets	858		11			36		253		78			1,236		2,998
Separate account assets [2]	—		—			—		134,702		—			134,702		140,886
Total assets	$	38,762	$	9,686		$	443	$	191,801	$	4,321		$	245,013	$	277,884
Future policy benefits, unpaid losses and loss adjustment expenses	21,806		6,540			—		13,098		—			$	41,444	$	41,373
Other policyholder funds and benefits payable	—		518			—		32,014		—			32,532		39,029
Other policyholder funds and benefits payable— International variable annuities	—		—			—		—		—			—		19,734
Unearned premiums	5,099		45			—		111		—			5,255		5,225
Debt	—		—			—		143		5,966			6,109		6,544
Other liabilities	1,088		(3		)	159		1,930		3,077			6,251		6,188
Separate account liabilities	—		—			—		134,702		—			134,702		140,886
Total liabilities	$	27,993	$	7,100		$	159	$	181,998	$	9,043		$	226,293	$	258,979
Common equity, excluding AOCI	9,822		2,228			284		8,607		(3,149		)	17,792		18,984
AOCI, after-tax	947		358			—		1,196		(1,573		)	928		(79		)
Total stockholders’ equity	10,769		2,586			284		9,803		(4,722		)	18,720		18,905
Total liabilities and equity	$	38,762	$	9,686		$	443	$	191,801	$	4,321		$	245,013	$	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



	Dec 31 2014			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	$	456		$	289		$	289		$	532		$	438		$	200		$	520		520
Senior notes	4,553			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			1,100
Total debt	$	6,109		$	6,108		$	6,108		$	6,350		$	6,544		$	6,306		6,625			6,327
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	17,792		$	17,758		$	18,266		$	19,115		$	18,984		$	18,945		18,939			18,715
Preferred stock	—			—			—			—			—			—			—			556
AOCI	928			1,077			1,162			659			(79		)	(17		)	74			1,649
Total stockholders’ equity	$	18,720		$	18,835		$	19,428		$	19,774		$	18,905		$	18,928		$	19,013		20,920
CAPITALIZATION
Total capitalization, including AOCI, after-tax	$	24,829		$	24,943		$	25,536		$	26,124		$	25,449		$	25,234		$	25,638		27,247
Total capitalization, excluding AOCI, after-tax	$	23,901		$	23,866		$	24,374		$	25,465		$	25,528		$	25,251		$	25,564		25,598
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	24.6		%	24.5		%	23.9		%	24.3		%	25.7		%	25.0		%	25.8		%	23.2	%
Total debt to capitalization, excluding AOCI	25.6		%	25.6		%	25.1		%	24.9		%	25.6		%	25.0		%	25.9		%	24.7	%
Total rating agency adjusted debt to capitalization [1] [2]	28.4		%	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 $1.7 billion, $1.3 billion, $1.3 billion, $1.4 billion and $1.4 billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 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

DECEMBER 31, 2014



	P&C (COMBINED)			GROUP BENEFITS			TALCOTT RESOLUTION
U.S. statutory net income [1] [2]	$	1,228		$	197		$	218
U.S. statutory capital and surplus	$	8,069		$	1,575		$	5,582
U.S. GAAP adjustments:
DAC	576			36			1,200
Deferred taxes including non-admitted deferred tax assets	(746		)	(372		)	90
Goodwill	119			—			—
Non-admitted assets other than deferred taxes	602			75			56
Asset valuation and interest maintenance reserve	—			205			602
Benefit reserves	(45		)	339			603
Unrealized gains on investments	1,377			494			1,624
Other, net	817			234			46
U.S. GAAP stockholders’ equity	$	10,769		$	2,586		$	9,803


[1]	Statutory net income is for the year ended December 31, 2014.


[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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	THREE MONTHS ENDED
	Dec 31 2014			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	$	2,355		$	2,170		$	2,226		$	1,663		$	975		$	976		$	1,141		$	2,484
Equities net unrealized gain	15			23			29			23			12			12			21			45
OTTI losses recognized in AOCI	(5		)	(5		)	(7		)	(10		)	(12		)	(20		)	(23		)	(32		)
Net deferred gain on cash flow hedging instruments	150			120			141			121			108			167			188			320
Total net unrealized gain	$	2,515		$	2,308		$	2,389		$	1,797		$	1,083		$	1,135		$	1,327		$	2,817
Foreign currency translation adjustments	(8		)	—			13			108			91			184			92			186
Pension and other postretirement adjustment	(1,579		)	(1,231		)	(1,240		)	(1,246		)	(1,253		)	(1,336		)	(1,345		)	(1,354		)
Total AOCI	$	928		$	1,077		$	1,162		$	659		$	(79	)	$	(17	)	$	74		$	1,649

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

DEFERRED POLICY ACQUISITION COSTS (“DAC”)



	THREE MONTHS ENDED DEC 31, 2014

	P&C (Combined)			Group Benefits			Mutual Funds			Talcott Resolution			Consolidated
Balance, beginning of period	$	581		$	39		$	12		$	1,236		$	1,868
Deferred costs	317			5			5			5			332
Amortization — DAC	(322		)	(8		)	(6		)	(57		)	(393		)
Amortization — DAC unlock charge, before tax	—			—			—			12			12
Adjustments to unrealized gains and losses on securities available-for-sale and other	—			—			—			4			4
Balance, end of period	$	576		$	36		$	11		$	1,200		$	1,823



	YEAR ENDED DEC 31, 2014

	P&C (Combined)			Group Benefits			Mutual Funds			Talcott Resolution			Consolidated
Balance, beginning of period	$	549		$	41		$	19		$	1,552		$	2,161
Deferred costs	1,294			27			20			23			1,364
Amortization — DAC	(1,267		)	(32		)	(28		)	(266		)	(1,593		)
Amortization — DAC unlock charge, before tax	—			—			—			(136		)	(136		)
Adjustments to unrealized gains and losses on securities available-for-sale and other	—			—			—			27			27
Balance, end of period	$	576		$	36		$	11		$	1,200		$	1,823

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY (COMBINED)

UNPAID LOSS AND LOSS ADJUSTMENT EXPENSE RESERVE ROLLFORWARD



	THREE MONTHS ENDED DEC 31, 2014
	Commercial Lines		Personal Lines		P&C Other Operations		P&C (Combined)
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	16,485	$	1,853	$	3,547	$	21,885
Reinsurance and other recoverables	2,483		13		613		3,109
Beginning liabilities for unpaid losses and loss adjustment expenses, net	14,002		1,840		2,934		18,776
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	934		640		—		1,574
Current accident year catastrophes	6		13		—		19
Prior year development	13		6		10		29
Total provision for unpaid losses and loss adjustment expenses	953		659		10		1,622
Less: Payments	914		643		76		1,633
Ending liabilities for unpaid losses and loss adjustment expenses, net	14,041		1,856		2,868		18,765
Reinsurance and other recoverables	2,464		18		559		3,041
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	16,505	$	1,874	$	3,427	$	21,806



	YEAR ENDED DEC 31, 2014
	Commercial Lines		Personal Lines			P&C Other Operations		P&C (Combined)
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	16,293	$	1,864		$	3,547	$	21,704
Reinsurance and other recoverables	2,442		13			573		3,028
Beginning liabilities for unpaid losses and loss adjustment expenses, net	13,851		1,851			2,974		18,676
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	3,733		2,498			—		6,231
Current accident year catastrophes	109		232			—		341
Prior year development	13		(46		)	261		228
Total provision for unpaid losses and loss adjustment expenses	3,855		2,684			261		6,800
Less: Payments	3,665		2,679			367		6,711
Ending liabilities for unpaid losses and loss adjustment expenses, net	14,041		1,856			2,868		18,765
Reinsurance and other recoverables	2,464		18			559		3,041
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	16,505	$	1,874		$	3,427	$	21,806

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY (COMBINED)

INCOME STATEMENTS



	THREE MONTHS ENDED																							YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013		Dec 31 2014			Dec 31 2013
UNDERWRITING RESULTS
Written premiums	$	2,470		$	2,603		$	2,574		$	2,597		$	2,349		$	2,556		$	2,501		$	2,523	$	10,244		$	9,929
Change in unearned premium reserve	(110		)	61			69			128			(149		)	68			48			98		148			65
Earned premiums	2,580			2,542			2,505			2,469			2,498			2,488			2,453			2,425		10,096			9,864
Losses and loss adjustment expenses
Current accident year before catastrophes	1,574			1,570			1,563			1,524			1,615			1,607			1,551			1,536		6,231			6,309
Current accident year catastrophes	19			40			196			86			28			66			186			32		341			312
Prior year development [1]	29			(10		)	249			(40		)	15			17			146			14		228			192
Total losses and loss adjustment expenses	1,622			1,600			2,008			1,570			1,658			1,690			1,883			1,582		6,800			6,813
Amortization of DAC	322			318			316			311			310			308			309			310		1,267			1,237
Underwriting expenses [2]	473			443			439			372			463			434			432			416		1,727			1,745
Dividends to policyholders	4			4			3			4			4			4			4			4		15			16
Underwriting gain (loss)	159			177			(261		)	212			63			52			(175		)	113		287			53
Net investment income	282			316			292			326			324			296			338			312		1,216			1,270
Net realized capital gains (losses)	6			24			(25		)	(37		)	72			2			(7		)	51		(32		)	118
Net servicing and other income	14			4			8			5			20			11			9			17		31			57
Income from continuing operations before income taxes	461			521			14			506			479			361			165			493		1,502			1,498
Income tax expense (benefit)	140			154			(11		)	143			133			98			27			142		426			400
Income from continuing operations, after-tax	321			367			25			363			346			263			138			351		1,076			1,098
Income (loss) from discontinued operations, after-tax	6			—			—			—			—			1			(2		)	—		6			(1		)
Net income	327			367			25			363			346			264			136			351		1,082			1,097
Less: Restructuring and other costs, after-tax	—			—			—			—			—			(1		)	—			—		—			(1		)
Less: Income (loss) from discontinued operations, after-tax [3]	6			—			—			—			—			1			(2		)	—		6			(1		)
Less: Net realized capital gains (losses), after-tax and DAC, excluded from core earnings	5			14			(15		)	(23		)	46			1			(2		)	33		(19		)	78
Core earnings	$	316		$	353		$	40		$	386		$	300		$	263		$	140		$	318	$	1,095		$	1,021

[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.

[3] Represents residual income (loss) from discontinued operations of SRS.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY (COMBINED)

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				YEAR ENDED
	Dec 31 2014		Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013		Sept 30 2013		Jun 30 2013			Mar 31 2013		Dec 31 2014		Dec 31 2013
UNDERWRITING GAIN (LOSS)	$	159	$	177		$	(261	)	$	212		$	63	$	52	$	(175	)	$	113	$	287	$	53
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	61.0		61.8			62.4			61.7			64.7		64.6		63.2			63.3		61.7		64.0
Current accident year catastrophes	0.7		1.6			7.8			3.5			1.1		2.7		7.6			1.3		3.4		3.2
Prior year development [1]	1.1		(0.4		)	9.9			(1.6		)	0.6		0.7		6.0			0.6		2.3		1.9
Total losses and loss adjustment expenses	62.9		62.9			80.2			63.6			66.4		67.9		76.8			65.2		67.4		69.1
Expenses [2]	30.8		29.9			30.1			27.7			30.9		29.8		30.2			29.9		29.7		30.2
Policyholder dividends	0.2		0.2			0.1			0.2			0.2		0.2		0.2			0.2		0.1		0.2
Combined ratio	93.8		93.0			110.4			91.4			97.5		97.9		107.1			95.3		97.2		99.5
Current accident year catastrophes and prior year development	1.8		1.2			17.7			1.9			1.7		3.4		13.6			1.9		5.7		5.1
Combined ratio before catastrophes and prior year development	92.0		91.9			92.7			89.6			95.8		94.6		93.6			93.4		91.5		94.4

[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.

COMMERCIAL LINES

UNDERWRITING RESULTS



	THREE MONTHS ENDED																					YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014		Mar 31 2014			Dec 31 2013			Sept 30 2013		Jun 30 2013			Mar 31 2013		Dec 31 2014		Dec 31 2013
UNDERWRITING RESULTS
Written premiums	$	1,558		$	1,583		$	1,571	$	1,669		$	1,463		$	1,567	$	1,533		$	1,645	$	6,381	$	6,208
Change in unearned premium reserve	(53		)	5			12		128			(103		)	4		(12		)	116		92		5
Earned premiums	1,611			1,578			1,559		1,541			1,566			1,563		1,545			1,529		6,289		6,203
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	934			931			934		934			972			991		966			968		3,733		3,897
Current accident year catastrophes	6			8			35		60			7			48		44			6		109		105
Prior year development [3]	13			(5		)	12		(7		)	12			26		37			8		13		83
Total losses and loss adjustment expenses	953			934			981		987			991			1,065		1,047			982		3,855		4,085
Amortization of DAC	233			230			230		226			226			226		226			227		919		905
Underwriting expenses [2]	298			286			285		217			291			267		271			253		1,086		1,082
Dividends to policyholders	4			4			3		4			4			4		4			4		15		16
Underwriting gain (loss)	$	123		$	124		$	60	$	107		$	54		$	1	$	(3	)	$	63	$	414	$	115


[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, $15 and $9, respectively, of the reduction.


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



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Auto liability	$	9		$	—		$	9		$	5		$	—		$	86		$	40		$	15		$	23		$	141
Professional and general liability	(4		)	(19		)	(11		)	(8		)	(1		)	(45		)	(40		)	(18		)	(42		)	(104		)
Workers’ compensation	(12		)	—			5			—			(11		)	(10		)	1			18			(7		)	(2		)
Workers’ compensation - NY 25a Fund for Reopened Cases	—			—			—			—			—			—			80			—			—			80
Change in workers' compensation discount, including accretion	7			8			7			8			7			8			7			8			30			30
Catastrophes	3			1			(6		)	(12		)	(3		)	(12		)	(9		)	—			(14		)	(24		)
Uncollectible reinsurance	—			—			—			—			—			—			(25		)	—			—			(25		)
Other reserve re-estimates, net	10			5			8			—			20			(1		)	(17		)	(15		)	23			(13		)
Total prior year development	$	13		$	(5	)	$	12		$	(7	)	$	12		$	26		$	37		$	8		$	13		$	83

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS



	THREE MONTHS ENDED																			YEAR ENDED
	Dec 31 2014		Sept 30 2014			Jun 30 2014		Mar 31 2014			Dec 31 2013		Sept 30 2013		Jun 30 2013			Mar 31 2013		Dec 31 2014		Dec 31 2013
UNDERWRITING GAIN (LOSS)	$	123	$	124		$	60	$	107		$	54	$	1	$	(3	)	$	63	$	414	$	115
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	58.0		59.0			59.9		60.6			62.1		63.4		62.5			63.3		59.4		62.8
Current accident year catastrophes	0.4		0.5			2.2		3.9			0.4		3.1		2.8			0.4		1.7		1.7
Prior year development [2]	0.8		(0.3		)	0.8		(0.5		)	0.8		1.7		2.4			0.5		0.2		1.3
Total losses and loss adjustment expenses	59.2		59.2			62.9		64.0			63.3		68.1		67.8			64.2		61.3		65.9
Expenses [3]	33.0		32.7			33.0		28.7			33.0		31.5		32.2			31.4		31.9		32.0
Policyholder dividends	0.2		0.3			0.2		0.3			0.3		0.3		0.3			0.3		0.2		0.3
Combined ratio	92.4		92.1			96.2		93.1			96.6		99.9		100.2			95.9		93.4		98.1
Current accident year catastrophes and prior year development	1.2		0.2			3.0		3.4			1.2		4.8		5.2			0.9		1.9		3.0
Combined ratio before catastrophes and prior year development	91.2		92.0			93.1		89.6			95.3		95.2		95.0			95.0		91.5		95.1

COMBINED RATIOS BY LINE OF BUSINESS [4]
SMALL COMMERCIAL
Combined ratio	86.1		88.4			91.4		87.8			87.7		94.5		96.5			91.9		88.4		92.7
Combined ratio before catastrophes	85.3		88.1			88.0		85.5			87.4		92.0		93.8			90.2		86.7		90.8
Combined ratio before catastrophes and prior year development	86.8		87.5			87.6		85.9			87.9		89.3		89.6			91.2		87.0		89.5
MIDDLE MARKET
Combined ratio	97.8		93.7			99.8		98.8			102.6		117.3		111.9			96.1		97.5		107.0
Combined ratio before catastrophes	97.6		92.3			99.3		93.5			102.4		114.4		109.4			97.3		95.7		105.9
Combined ratio before catastrophes and prior year development	94.7		93.5			97.6		92.2			99.7		100.2		98.8			97.4		94.5		99.0
SPECIALTY COMMERCIAL
Combined ratio	101.4		97.8			103.7		95.9			95.6		79.4		93.4			109.7		99.7		94.3
Combined ratio before catastrophes	101.4		97.8			103.8		95.9			95.7		79.4		93.4			109.8		99.8		94.4
Combined ratio before catastrophes and prior year development	99.1		105.1			101.5		95.4			95.5		98.4		103.1			101.6		100.2		99.6


[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 12.


[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, 2.6 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 12.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
WRITTEN PREMIUMS
Small Commercial	$	754		$	791		$	833		$	865		$	715		$	740		$	787		$	842		$	3,243		$	3,084
Middle Market	601			583			537			572			568			593			541			569			2,293			2,271
Specialty Commercial	195			201			192			223			173			225			196			225			811			819
National Accounts	80			81			77			113			62			90			72			91			351			315
Financial Products	65			64			59			55			63			61			60			53			243			237
Bond	47			51			47			43			44			44			44			41			188			173
Other Specialty	3			5			9			12			4			30			20			40			29			94
Other	8			8			9			9			7			9			9			9			34			34
Total	$	1,558		$	1,583		$	1,571		$	1,669		$	1,463		$	1,567		$	1,533		$	1,645		$	6,381		$	6,208
EARNED PREMIUMS
Small Commercial	$	813		$	805		$	790		$	769		$	777		$	769		$	763		$	754		$	3,177		$	3,063
Middle Market	579			570			561			561			574			568			565			561			2,271			2,268
Specialty Commercial	212			193			199			203			209			217			208			205			807			839
National Accounts	97			79			82			80			79			83			70			68			338			300
Financial Products	63			61			61			59			62			61			64			63			244			250
Bond	45			46			44			43			43			43			45			42			178			173
Other Specialty	7			7			12			21			25			30			29			32			47			116
Other	7			10			9			8			6			9			9			9			34			33
Total	$	1,611		$	1,578		$	1,559		$	1,541		$	1,566		$	1,563		$	1,545		$	1,529		$	6,289		$	6,203

STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Small Commercial	$	122		$	128		$	140		$	131		$	111		$	115		$	125		$	134		$	521		$	485
Middle Market	$	131		$	107		$	110		$	110		$	101		$	105		$	115		$	103		$	458		$	424
Renewal Written Price Increases [1]
Standard Commercial Lines	3		%	5		%	5		%	6		%	7		%	7		%	7		%	8		%	5		%	7		%
Policy Count Retention [1]
Small Commercial	85		%	84		%	84		%	83		%	82		%	81		%	80		%	82		%	84		%	81		%
Middle Market	80		%	80		%	80		%	81		%	79		%	80		%	79		%	77		%	80		%	79		%
Policies in Force (in thousands) [1]
Small Commercial	1,205			1,197			1,187			1,179			1,177			1,181			1,181			1,185
Middle Market	72			72			73			73			73			74			74			75

[1] Excludes Middle Market specialty programs and livestock lines of business.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RESULTS



	THREE MONTHS ENDED																								YEAR ENDED
UNDERWRITING RESULTS	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Written premiums	$	912		$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	3,861		$	3,719
Change in unearned premium reserve	(56		)	55			57			(1		)	(45		)	63			59			(18		)	55			59
Earned premiums	968			964			946			928			931			925			908			896			3,806			3,660
Losses and loss adjustment expenses
Current accident year before catastrophes	640			639			629			590			643			616			585			568			2,498			2,412
Current accident year catastrophes	13			32			161			26			21			18			142			26			232			207
Prior year development [1]	6			(15		)	(3		)	(34		)	—			(11		)	(32		)	4			(46		)	(39		)
Total losses and loss adjustment expenses	659			656			787			582			664			623			695			598			2,684			2,580
Amortization of DAC	89			88			86			85			84			82			83			83			348			332
Underwriting expenses	160			149			147			148			165			159			154			156			604			634
Underwriting gain (loss)	$	60		$	71		$	(74	)	$	113		$	18		$	61		$	(24	)	$	59		$	170		$	114


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



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Auto liability	$	6		$	(4	)	$	—		$	—		$	1		$	—		$	2		$	—		$	2		$	3
Homeowners	3			—			3			(13		)	3			1			(2		)	(8		)	(7		)	(6		)
Catastrophes	(2		)	(3		)	(5		)	(21		)	(2		)	(8		)	(31		)	2			(31		)	(39		)
Other reserve re-estimates, net	(1		)	(8		)	(1		)	—			(2		)	(4		)	(1		)	10			(10		)	3
Total prior year development	$	6		$	(15	)	$	(3	)	$	(34	)	$	—		$	(11	)	$	(32	)	$	4		$	(46	)	$	(39	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS



	THREE MONTHS ENDED																					YEAR ENDED
	Dec 31 2014		Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013		Sept 30 2013			Jun 30 2013			Mar 31 2013		Dec 31 2014			Dec 31 2013
UNDERWRITING GAIN (LOSS)	$	60	$	71		$	(74	)	$	113		$	18	$	61		$	(24	)	$	59	$	170		$	114
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	66.1		66.3			66.5			63.6			69.1		66.6			64.4			63.4		65.6			65.9
Current accident year catastrophes	1.3		3.3			17.0			2.8			2.3		1.9			15.6			2.9		6.1			5.7
Prior year development [1]	0.6		(1.6		)	(0.3		)	(3.7		)	—		(1.2		)	(3.5		)	0.4		(1.2		)	(1.1		)
Total losses and loss adjustment expenses	68.1		68.0			83.2			62.7			71.3		67.4			76.5			66.7		70.5			70.5
Expenses	25.7		24.6			24.6			25.1			26.7		26.1			26.1			26.7		25.0			26.4
Combined ratio	93.8		92.6			107.8			87.8			98.1		93.4			102.6			93.4		95.5			96.9
Current accident year catastrophes and prior year development	1.9		1.7			16.7			(0.9		)	2.3		0.7			12.1			3.3		4.9			4.6
Combined ratio before catastrophes and prior year development	91.8		90.9			91.1			88.7			95.8		92.6			90.5			90.1		90.6			92.3
PRODUCT
Automobile
Combined ratio	102.9		97.8			100.1			92.6			104.5		97.8			96.3			97.3		98.4			99.0
Combined ratio before catastrophes and prior year development	102.4		97.0			96.0			92.8			104.8		98.3			95.5			94.6		97.1			98.4
Homeowners
Combined ratio	73.2		84.8			125.6			76.7			80.3		82.5			116.4			84.0		90.0			90.7
Combined ratio before catastrophes and prior year development	68.1		77.6			81.4			78.8			72.6		79.0			79.2			79.2		76.4			77.5


[1]	For a summary of (favorable) unfavorable prior year loss reserve development refer to footnote [1] on page 15.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	642		$	736		$	734		$	669		$	632		$	725		$	718		$	647		$	2,781		$	2,722
AARP Agency	88			88			78			71			66			62			52			45			325			225
Other Agency	171			181			179			173			175			187			182			173			704			717
Other	11			14			12			14			13			14			15			13			51			55
Total	$	912		$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	3,861		$	3,719
EARNED PREMIUMS
AARP Direct	$	698		$	699		$	689		$	678		$	684		$	682		$	673		$	662		$	2,764		$	2,701
AARP Agency	79			73			66			58			54			47			41			35			276			177
Other Agency	178			177			179			179			181			182			181			184			713			728
Other	13			15			12			13			12			14			13			15			53			54
Total	$	968		$	964		$	946		$	928		$	931		$	925		$	908		$	896		$	3,806		$	3,660
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	629		$	690		$	680		$	660		$	608		$	668		$	657		$	629		$	2,659		$	2,562
Homeowners	283			329			323			267			278			320			310			249			1,202			1,157
Total	$	912		$	1,019		$	1,003		$	927		$	886		$	988		$	967		$	878		$	3,861		$	3,719
EARNED PREMIUMS
Automobile	$	665		$	662		$	650		$	636		$	640		$	637		$	626		$	619		$	2,613		$	2,522
Homeowners	303			302			296			292			291			288			282			277			1,193			1,138
Total	$	968		$	964		$	946		$	928		$	931		$	925		$	908		$	896		$	3,806		$	3,660
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	100		$	108		$	103		$	104		$	94		$	100		$	93		$	87		$	415		$	374
Homeowners	$	29		$	34		$	35		$	32		$	32		$	35		$	34		$	30		$	130		$	131
Renewal Written Price Increases
Automobile	6		%	5		%	5		%	5		%	5		%	5		%	5		%	5		%	5		%	5		%
Homeowners	8		%	7		%	8		%	8		%	8		%	8		%	7		%	6		%	8		%	7		%
Policy Count Retention
Automobile	84		%	85		%	86		%	87		%	86		%	86		%	86		%	86		%	85		%	86		%
Homeowners	85		%	86		%	87		%	87		%	86		%	86		%	87		%	87		%	86		%	87		%
Premium Retention
Automobile	87		%	87		%	88		%	89		%	87		%	88		%	88		%	88		%	88		%	88		%
Homeowners	90		%	91		%	92		%	93		%	92		%	92		%	92		%	92		%	92		%	92		%
Policies in Force (in thousands)
Automobile	2,049			2,047			2,041			2,033			2,019			2,021			2,020			2,019
Homeowners	1,309			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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
UNDERWRITING RESULTS
Written premiums	$	—		$	1		$	—		$	1		$	—		$	1		$	1		$	—		$	2		$	2
Change in unearned premium reserve	(1		)	1			—			1			(1		)	1			1			—			1			1
Earned premiums	1			—			—			—			1			—			—			—			1			1
Losses and loss adjustment expenses
Prior year development [1]	10			10			240			1			3			2			141			2			261			148
Total losses and loss adjustment expenses	10			10			240			1			3			2			141			2			261			148
Underwriting expenses	15			8			7			7			7			8			7			7			37			29
Underwriting loss	$	(24	)	$	(18	)	$	(247	)	$	(8	)	$	(9	)	$	(10	)	$	(148	)	$	(9	)	$	(297	)	$	(176	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Earned premiums	$	751		$	738		$	761		$	784		$	821		$	817		$	823		$	812		$	3,034		$	3,273
Fee income	15			15			16			15			14			14			15			14			61			57
Net investment income	90			93			95			96			97			96			100			97			374			390
Net realized capital gains (losses)	4			(3		)	6			8			3			(8		)	37			18			15			50
Total revenues	860			843			878			903			935			919			975			941			3,484			3,770
Benefits, losses and loss adjustment expenses	580			584			601			597			607			637			635			639			2,362			2,518
Amortization of DAC	8			8			7			9			9			8			8			8			32			33
Insurance operating costs and other expenses	208			205			195			228			239			237			248			240			836			964
Total benefits, losses and expenses	796			797			803			834			855			882			891			887			3,230			3,515
Income before income taxes	64			46			75			69			80			37			84			54			254			255
Income tax expense	16			9			20			18			22			6			23			12			63			63
Net income	48			37			55			51			58			31			61			42			191			192
Less: Net realized capital gains (losses), after tax, excluded from core earnings	3			(1		)	3			6			3			(5		)	24			12			11			34
Core earnings	$	45		$	38		$	52		$	45		$	55		$	36		$	37		$	30		$	180		$	158
After-tax margin (excluding buyouts)
Net income	5.7		%	4.4		%	6.3		%	5.7		%	6.2		%	3.4		%	6.3		%	4.5		%	5.5		%	5.1		%
Core earnings	5.3		%	4.5		%	6.0		%	5.1		%	5.9		%	3.9		%	3.9		%	3.2		%	5.2		%	4.3		%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
PREMIUMS
Fully insured ongoing premiums
Group disability	$	343		$	343		$	349		$	346		$	352		$	343		$	355		$	345		$	1,381		$	1,395
Group life [1]	354			353			371			388			428			435			427			426			1,466			1,716
Other	42			42			41			42			41			39			40			41			167			161
Total fully insured ongoing premiums	$	739		$	738		$	761		$	776		$	821		$	817		$	822		$	812		$	3,014		$	3,272
Total buyouts [2]	12			—			—			8			—			—			1			—			20			1
Total premiums	751			738			761			784			821			817			823			812			3,034			3,273
Group disability premium equivalents [3]	112			109			108			103			102			104			100			106			432			412
Total premiums and premium equivalents	$	863		$	847		$	869		$	887		$	923		$	921		$	923		$	918		$	3,466		$	3,685
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	20		$	26		$	20		$	88		$	29		$	32		$	46		$	76		$	154		$	183
Group life	20			26			24			79			26			28			55			88			149			197
Other	4			5			1			13			3			3			2			5			23			13
Total fully insured ongoing sales	44			57			45			180			58			63			103			169			326			393
Total buyouts [2]	12			—			—			8			—			—			1			—			20			1
Total sales	56			57			45			188			58			63			104			169			346			394
Group disability premium equivalents [3]	15			3			3			25			23			5			18			15			46			61
Total sales and premium equivalents	$	71		$	60		$	48		$	213		$	81		$	68		$	122		$	184		$	392		$	455
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	81.9		%	85.7		%	83.9		%	82.4		%	75.7		%	87.9		%	82.7		%	89.9		%	83.5		%	84.0		%
Group life loss ratio	70.3		%	71.7		%	72.4		%	67.9		%	70.8		%	68.2		%	70.8		%	68.1		%	70.5		%	69.5		%
Total loss ratio	75.3		%	77.6		%	77.3		%	74.5		%	72.7		%	76.7		%	75.7		%	77.4		%	76.2		%	75.6		%
Expense ratio	28.6		%	28.3		%	26.0		%	30.0		%	29.7		%	29.5		%	30.6		%	30.0		%	28.2		%	29.9		%
SELECTED RATIOS, EXCLUDING A-FI
Group life loss ratio, excluding A-FI	71.8		%	72.9		%	72.6		%	74.0		%	74.6		%	75.8		%	79.2		%	75.3		%	72.8		%	76.2		%
Total loss ratio, excluding A-FI	76.0		%	78.3		%	77.5		%	77.6		%	74.7		%	80.9		%	80.3		%	81.5		%	77.4		%	79.3		%
Expense ratio, excluding A-FI	27.9		%	27.6		%	25.8		%	27.4		%	27.9		%	25.8		%	26.7		%	26.6		%	27.2		%	26.8		%


[1]	Association - Financial Institutions ("A-FI") business represents $2, $7, $19, $44, $65, $68, $71 and $72 for the three months ended December 31, 2014, 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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS



	THREE MONTHS ENDED																				YEAR ENDED
	Dec 31 2014			Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013			Sept 30 2013		Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Investment management fees	$	149		$	153	$	150	$	146	$	146		$	139	$	137		$	133		$	598		$	555
Shareholder servicing fees	19			19		19		19		19			19		20			20			76			78
Other revenue	13			13		14		9		10			10		8			7			49			35
Total revenues	181			185		183		174		175			168		165			160			723			668
Sub-advisory	53			53		52		51		51			48		48			48			209			195
Employee compensation and benefits [1]	29			26		26		25		26			24		24			25			106			99
Distribution and service	41			44		45		43		43			43		41			41			173			168
General, administrative and other	23			26		28		22		25			24		21			18			99			88
Total expenses	146			149		151		141		145			139		134			132			587			550
Income before income taxes	35			36		32		33		30			29		31			28			136			118
Income tax expense	12			14		11		12		11			10		11			10			49			42
Net income	23			22		21		21		19			19		20			18			87			76
Less: Restructuring and other costs, after-tax	(4		)	—		—		—		—			1		(1		)	(1		)	(4		)	(1		)
Less: Net realized capital gains (losses), after-tax, excluded from core earnings	—			—		—		—		(1		)	—		1			(1		)	—			(1		)
Core earnings	$	27		$	22	$	21	$	21	$	20		$	18	$	20		$	20		$	91		$	78
Average Total Mutual Funds segment AUM	$	94,891		$	97,511	$	98,581	$	97,519	$	94,566		$	90,953	$	90,973		$	90,042		$	95,177		$	92,191
Return on assets (bps, after-tax) [2]
Net income	9.7			9.0		8.5		8.6		8.0			8.4		8.8			8.0			9.1			8.2
Core earnings	11.4			9.0		8.5		8.6		8.5			8.0		8.8			8.9			9.6			8.5


[1]	The three months ended December 31, 2014 includes restructuring costs of $6, before tax.


[2]	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 ASSET CLASS



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Equity
Beginning balance	$	44,308		$	45,171		$	44,489		$	42,426		$	39,057		$	36,186		$	38,453		$	35,843		$	42,426		$	35,843
Sales	2,020			1,768			1,995			1,906			1,678			1,591			1,446			1,559			7,689			6,274
Redemptions	(2,232		)	(1,844		)	(2,145		)	(1,819		)	(2,043		)	(2,054		)	(4,821		)	(2,951		)	(8,040		)	(11,869		)
Net flows	(212		)	(76		)	(150		)	87			(365		)	(463		)	(3,375		)	(1,392		)	(351		)	(5,595		)
Change in market value and other	1,125			(787		)	832			1,976			3,734			3,334			1,108			4,002			3,146			12,178
Ending balance	$	45,221		$	44,308		$	45,171		$	44,489		$	42,426		$	39,057		$	36,186		$	38,453		$	45,221		$	42,426
Fixed Income
Beginning balance	$	14,765		$	14,942		$	14,661		$	14,632		$	14,595		$	14,944		$	15,213		$	14,524		$	14,632		$	14,524
Sales	1,074			1,317			1,241			1,134			1,255			1,507			1,432			1,755			4,766			5,949
Redemptions	(1,516		)	(1,329		)	(1,064		)	(1,257		)	(1,322		)	(1,802		)	(1,323		)	(1,133		)	(5,166		)	(5,580		)
Net flows	(442		)	(12		)	177			(123		)	(67		)	(295		)	109			622			(400		)	369
Change in market value and other	(277		)	(165		)	104			152			104			(54		)	(378		)	67			(186		)	(261		)
Ending balance	$	14,046		$	14,765		$	14,942		$	14,661		$	14,632		$	14,595		$	14,944		$	15,213		$	14,046		$	14,632
Multi-Strategy Investments [1]
Beginning balance	$	14,222		$	14,217		$	14,196		$	13,860		$	13,107		$	12,478		$	12,142		$	11,244		$	13,860		$	11,244
Sales	800			668			674			652			622			689			848			790			2,794			2,949
Redemptions	(1,206		)	(487		)	(1,139		)	(598		)	(632		)	(576		)	(521		)	(518		)	(3,430		)	(2,247		)
Net flows	(406		)	181			(465		)	54			(10		)	113			327			272			(636		)	702
Change in market value and other	(48		)	(176		)	486			282			763			516			9			626			544			1,914
Ending balance	$	13,768		$	14,222		$	14,217		$	14,196		$	13,860		$	13,107		$	12,478		$	12,142		$	13,768		$	13,860
Mutual Fund AUM
Beginning balance	$	73,295		$	74,330		$	73,346		$	70,918		$	66,759		$	63,608		$	65,808		$	61,611		$	70,918		$	61,611
Sales	3,894			3,753			3,910			3,692			3,555			3,787			3,726			4,104			15,249			15,172
Redemptions [2]	(4,954		)	(3,660		)	(4,348		)	(3,674		)	(3,997		)	(4,432		)	(6,665		)	(4,602		)	(16,636		)	(19,696		)
Net flows	(1,060		)	93			(438		)	18			(442		)	(645		)	(2,939		)	(498		)	(1,387		)	(4,524		)
Change in market value and other	800			(1,128		)	1,422			2,410			4,601			3,796			739			4,695			3,504			13,831
Ending balance	$	73,035		$	73,295		$	74,330		$	73,346		$	70,918		$	66,759		$	63,608		$	65,808		$	73,035		$	70,918
Talcott AUM [3]	$	20,584		$	22,867		$	24,529		$	24,957		$	25,817		$	25,638		$	25,901		$	26,628		$	20,584		$	25,817
Total Mutual Funds segment AUM	$	93,619		$	96,162		$	98,859		$	98,303		$	96,735		$	92,397		$	89,509		$	92,436		$	93,619		$	96,735

[1] Includes balanced, allocation, target date and alternative investment products.

[2] The three months ended December 31, 2014 includes a planned asset transfer of $0.7 billion to the Hartford Variable Insurance Trust (“HVIT”) which supports legacy retirement mutual funds and run-off

mutual funds (see footnote [3]). HVIT's invested assets are managed by Hartford Investment Management Company, a wholly-owned subsidiary of the Company.

[3] Talcott AUM (formerly Annuity Mutual Fund Assets) consist of Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products. The

three months ended December 31, 2014 includes a planned asset transfer of $2.0 billion to HVIT.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
NET INCOME (LOSS)
Individual Annuity	$	84		$	(23	)	$	92		$	108		$	41		$	69		$	23		63			$	261		$	196
Institutional and other [1] [2] [4]	60			51			(596		)	37			(56		)	(62		)	(355		)	(357		)	(448		)	(830		)
Talcott Resolution net income (loss)	144			28			(504		)	145			(15		)	7			(332		)	(294		)	(187		)	(634		)
Less: Unlock benefit (charge), after tax	13			(102		)	15			12			1			(104		)	(9		)	3			(62		)	(109		)
Less: Restructuring and other costs, after tax	—			—			—			—			—			(1		)	1			(1		)	—			(1		)
Less: Income (loss) from discontinued operations, after tax [2]	31			—			(617		)	29			(70		)	(73		)	(421		)	(484		)	(557		)	(1,048		)
Less: Net reinsurance gain on dispositions, after tax [3]	15			—			—			—			—			—			1			44			15			45
Less: Net realized gains (losses) and other, after tax and DAC, excluded from core earnings	(13		)	8			(3		)	(8		)	(45		)	70			(7		)	49			(16		)	67
Talcott Resolution core earnings	$	98		$	122		$	101		$	112		$	99		$	115		$	103		$	95		$	433		$	412
CORE EARNINGS (LOSSES)
Individual Annuity	$	80		$	83		$	84		$	89		$	81		$	89		$	79		$	73		$	336		$	322
Institutional and other	18			39			17			23			18			26			24			22			97			90
Talcott Resolution core earnings	$	98		$	122		$	101		$	112		$	99		$	115		$	103		$	95		$	433		$	412


[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]

The three months ended December 31, 2014 includes a benefit of $29, after-tax, from the partial reduction of the deferred tax valuation allowance on capital loss carryovers established when the Japan annuity business was sold. The three months ended June 30, 2014 includes a loss on disposition of $659 related to the Japan annuity business and the three months ended June 30, 2013 includes a loss on disposition of $102 related to the U.K. variable annuity business.


[3]	Amounts pertain to the Retirement Plans and Individual Life businesses sold in 2013.


[4]	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																YEAR ENDED
	Dec 31 2014		Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013		Sept 30 2013		Jun 30 2013		Mar 31 2013		Dec 31 2014		Dec 31 2013
CORE EARNINGS - RETURN ON ASSETS (bps, after tax) [1]
Individual Annuity	51.2		50.7		49.0		50.3		45.0		49.0		42.3		38.4		50.3		43.6
FULL SURRENDER RATES [2]
Variable Annuity	11.3	%	16.5	%	13.9	%	12.3	%	14.5	%	20.3	%	17.5	%	14.5	%	13.5	%	16.7	%
CONTRACT COUNTS (in thousands)
Variable Annuity	674		694		721		747		774		802		839		873
Fixed Annuity and Other	139		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:
	Dec 31 2014			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	2,059			1,972			1,960			1,872			1,848			1,682			1,606			1,569
Total account value with guaranteed minimum death benefits (“GMDB”)	$	52,861		$	54,349		$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500
Gross net amount at risk ("NAR")	3,807			3,972			4,024			4,192			4,325			4,657			5,195			5,349
NAR reinsured	79		%	78		%	78		%	77		%	76		%	75		%	72		%	72		%
Contracts in the Money [2]	23		%	27		%	14		%	17		%	16		%	22		%	33		%	29		%
% In the Money [2] [3]	14		%	13		%	27		%	23		%	26		%	19		%	14		%	16		%
Retained NAR [1]	793			862			891			971			1,026			1,183			1,457			1,498
Net GAAP liability for GMDB benefits	196			198			210			209			211			206			225			228

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	24,840		$	25,774		$	28,161		$	29,036		$	30,262		$	30,907		$	32,035		$	34,106
Gross NAR	156			160			139			163			167			228			344			361
NAR reinsured	26		%	24		%	21		%	21		%	20		%	18		%	18		%	19		%
Contracts in the Money [2]	6		%	6		%	5		%	6		%	5		%	9		%	14		%	13		%
% In the Money [2] [3]	11		%	10		%	13		%	12		%	12		%	9		%	8		%	9		%
Retained NAR [1]	116			122			110			129			134			187			282			293
Net GAAP liability (asset) for non-lifetime GMWB benefits	70			10			(43		)	(15		)	(3		)	158			513			651
Net GAAP liability for lifetime GMWB benefits	136			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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
VARIABLE ANNUITY
Beginning balance	$	54,349		$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500		$	64,824		$	61,812		$	64,824
Deposits	56			52			58			66			60			77			180			226			232			543
Partial withdrawals	(589		)	(490		)	(563		)	(634		)	(748		)	(647		)	(630		)	(710		)	(2,276		)	(2,735		)
Full surrenders	(1,517		)	(2,327		)	(2,041		)	(1,860		)	(2,235		)	(3,153		)	(2,805		)	(2,356		)	(7,745		)	(10,549		)
Death benefits/annuitizations/other [1]	(437		)	(465		)	(508		)	(521		)	(470		)	(445		)	(472		)	(468		)	(1,931		)	(1,855		)
Transfers	(2		)	(1		)	(2		)	(1		)	—			(2		)	(1		)	1			(6		)	(2		)
Net flows	(2,489		)	(3,231		)	(3,056		)	(2,950		)	(3,393		)	(4,170		)	(3,728		)	(3,307		)	(11,726		)	(14,598		)
Change in market value/change in reserve/interest credited and other	1,001			(770		)	1,859			685			3,693			3,103			807			3,983			2,775			11,586
Ending balance	$	52,861		$	54,349		$	58,350		$	59,547		$	61,812		$	61,512		$	62,579		$	65,500		$	52,861		$	61,812
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	8,959		$	9,429		$	9,917		$	10,142		$	10,455		$	10,670		$	10,797		$	10,848		$	10,142		$	10,848
Deposits	—			—			—			—			—			—			2			6			—			8
Surrenders	(256		)	(533		)	(576		)	(331		)	(381		)	(264		)	(161		)	(103		)	(1,696		)	(909		)
Death benefits/annuitizations/other [1]	(41		)	(13		)	(19		)	7			(58		)	(64		)	(72		)	(74		)	(66		)	(268		)
Transfers	(1		)	2			1			1			(2		)	(2		)	(3		)	—			3			(7		)
Net flows	(298		)	(544		)	(594		)	(323		)	(441		)	(330		)	(234		)	(171		)	(1,759		)	(1,176		)
Change in market value/change in reserve/interest credited and other	87			74			106			98			128			115			107			120			365			470
Ending balance	$	8,748		$	8,959		$	9,429		$	9,917		$	10,142		$	10,455		$	10,670		$	10,797		$	8,748		$	10,142
TOTAL INDIVIDUAL ANNUITY
Beginning balance	$	63,308		$	67,779		$	69,464		$	71,954		$	71,967		$	73,249		$	76,297		$	75,672		$	71,954		$	75,672
Deposits	56			52			58			66			60			77			182			232			232			551
Surrenders	(2,362		)	(3,350		)	(3,180		)	(2,825		)	(3,364		)	(4,064		)	(3,596		)	(3,169		)	(11,717		)	(14,193		)
Death benefits/annuitizations/other [1]	(478		)	(478		)	(527		)	(514		)	(528		)	(509		)	(544		)	(542		)	(1,997		)	(2,123		)
Transfers	(3		)	1			(1		)	—			(2		)	(4		)	(4		)	1			(3		)	(9		)
Net flows	(2,787		)	(3,775		)	(3,650		)	(3,273		)	(3,834		)	(4,500		)	(3,962		)	(3,478		)	(13,485		)	(15,774		)
Change in market value/change in reserve/interest credited and other	1,088			(696		)	1,965			783			3,821			3,218			914			4,103			3,140			12,056
Ending balance	$	61,609		$	63,308		$	67,779		$	69,464		$	71,954		$	71,967		$	73,249		$	76,297		$	61,609		$	71,954


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Fee income	$	1		$	2		$	4		$	3		$	5		$	2		$	2		$	3		$	10		$	12
Net investment income	10			5			5			2			8			6			—			13			22			27
Net realized capital gains (losses)	(9		)	11			14			(9		)	2			(5		)	10			(96		)	7			(89		)
Total revenues	2			18			23			(4		)	15			3			12			(80		)	39			(50		)
Insurance operating costs and other expenses [1]	8			4			20			12			34			(60		)	14			26			44			14
Pension settlement [2]	128			—			—			—			—			—			—			—			128			—
Loss on extinguishment of debt [3]	—			—			—			—			—			—			—			213			—			213
Reinsurance loss on disposition [4]	—			—			—			—			—			—			—			69			—			69
Interest expense	94			93			94			95			96			94			100			107			376			397
Restructuring and other costs	20			22			8			20			15			14			19			16			70			64
Total expenses	250			119			122			127			145			48			133			431			618			757
Loss before income taxes	(248		)	(101		)	(99		)	(131		)	(130		)	(45		)	(121		)	(511		)	(579		)	(807		)
Income tax benefit	(88		)	(35		)	(35		)	(46		)	(36		)	(17		)	(46		)	(153		)	(204		)	(252		)
Net loss	(160		)	(66		)	(64		)	(85		)	(94		)	(28		)	(75		)	(358		)	(375		)	(555		)
Less: Restructuring and other costs, after tax	(13		)	(14		)	(5		)	(13		)	(10		)	(9		)	(12		)	(10		)	(45		)	(41		)
Less: Pension settlement, after-tax [2]	(83		)	—			—			—			—			—			—			—			(83		)	—
Less: Loss on extinguishment of debt, after tax [3]	—			—			—			—			—			—			—			(138		)	—			(138		)
Less: Net reinsurance loss on dispositions, after tax [4]	—			—			—			—			—			—			—			(69		)	—			(69		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core losses	(4		)	6			11			(9		)	8			(3		)	6			(68		)	4			(57		)
Core losses	$	(60	)	$	(58	)	$	(70	)	$	(63	)	$	(92	)	$	(16	)	$	(69	)	$	(73	)	$	(251	)	$	(250	)


[1]	The three months ended September 30, 2014 and 2013 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]	Consists of a charge related to voluntary lump-sum settlements with vested participants in the Company's defined benefit pension plan who had separated from service, but who had not yet commenced annuity benefits.


[3]	Consists of premium associated with repurchasing $800 of senior notes and 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.


[4]	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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	485		$	485		$	483		$	498		$	500		$	521		$	529		$	535		$	1,951		$	2,085
Tax-exempt	116			117			118			118			118			117			116			116			469			467
Total fixed maturities	$	601		$	602		$	601		$	616		$	618		$	638		$	645		$	651		$	2,420		$	2,552
Equity securities, available-for-sale	15			9			7			7			9			7			8			6			38			30
Mortgage loans	68			65			66			66			69			65			62			64			265			260
Policy loans	21			20			19			20			21			20			22			20			80			83
Limited partnerships and other alternative investments [2]	44			100			53			97			80			46			95			66			294			287
Other [3]	44			44			48			43			44			40			37			46			179			167
Subtotal	793			840			794			849			841			816			869			853			3,276			3,379
Investment expense	(41		)	(30		)	(26		)	(25		)	(30		)	(29		)	(28		)	(28		)	(122		)	(115		)
Total net investment income	$	752		$	810		$	768		$	824		$	811		$	787		$	841		$	825		$	3,154		$	3,264
Annualized investment yield, before tax [4]	4.2		%	4.5		%	4.3		%	4.5		%	4.4		%	4.3		%	4.6		%	4.5		%	4.4		%	4.4		%
Annualized investment yield, after-tax [4]	2.9		%	3.2		%	3.0		%	3.2		%	3.1		%	3.0		%	3.1		%	3.0		%	3.0		%	3.1		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	4.1		%	4.1		%	4.1		%	4.2		%	4.2		%	4.2		%	4.2		%	4.3		%	4.1		%	4.2		%
New money yield [5]	3.3		%	3.2		%	3.8		%	3.9		%	4.0		%	4.4		%	3.6		%	3.4		%	3.6		%	3.8		%
Sales/maturities yield [6]	4.0		%	3.7		%	3.9		%	4.2		%	3.8		%	3.9		%	3.5		%	3.6		%	3.9		%	3.7		%
Portfolio duration (in years) [7]	5.3			5.4			5.1			5.0			5.2			5.3			5.5			5.4			5.3			5.2


[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.


[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																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	162		$	159		$	163		$	166		$	165		$	168		$	175		$	172		$	650		$	680
Tax-exempt	91			92			93			92			92			92			91			92			368			367
Total fixed maturities	$	253		$	251		$	256		$	258		$	257		$	260		$	266		$	264		$	1,018		$	1,047
Equity securities, available-for-sale	3			3			3			3			4			3			4			2			12			13
Mortgage loans	18			17			16			16			16			13			11			12			67			52
Limited partnerships and other alternative investments [2]	16			47			18			48			46			20			50			39			129			155
Other [3]	7			8			9			10			12			9			16			3			34			40
Subtotal	297			326			302			335			335			305			347			320			1,260			1,307
Investment expense	(15		)	(10		)	(10		)	(9		)	(11		)	(9		)	(9		)	(8		)	(44		)	(37		)
Total net investment income	$	282		$	316		$	292		$	326		$	324		$	296		$	338		$	312		$	1,216		$	1,270
Annualized investment yield, before tax [4]	3.9		%	4.4		%	4.1		%	4.5		%	4.5		%	4.2		%	4.8		%	4.5		%	4.2		%	4.5		%
Annualized investment yield, after-tax [4]	2.9		%	3.3		%	3.0		%	3.4		%	3.5		%	3.1		%	3.6		%	3.5		%	3.2		%	3.4		%
Annualized investment yield, before tax; excluding limited partnership and other alternative investments [4]	3.9		%	4.0		%	4.0		%	4.1		%	4.1		%	4.2		%	4.2		%	4.2		%	4.0		%	4.2		%
New money yield [5]	3.1		%	3.7		%	3.9		%	4.0		%	4.0		%	4.5		%	3.9		%	3.3		%	3.7		%	4.0		%
Sales/maturities yield [6]	4.0		%	4.0		%	4.2		%	4.3		%	4.0		%	4.4		%	3.8		%	3.8		%	4.1		%	4.0		%
Portfolio duration (in years)	4.9			5.2			4.6			4.5			5.3			5.4			5.5			5.3			4.9			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.


[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																YEAR ENDED
	Dec 31 2014		Sept 30 2014		Jun 30 2014		Mar 31 2014		Dec 31 2013		Sept 30 2013		Jun 30 2013		Mar 31 2013		Dec 31 2014		Dec 31 2013
Net Investment Income
Commercial Lines	$	222	$	250	$	230	$	256	$	252	$	230	$	262	$	240	$	958	$	984
Personal Lines	30		33		31		35		36		33		39		37		129		145
P&C Other Operations	30		33		31		35		36		33		37		35		129		141
Total Property & Casualty	$	282	$	316	$	292	$	326	$	324	$	296	$	338	312		$	1,216	$	1,270
Group Benefits	90		93		95		96		97		96		100		97		374		390
Talcott Resolution	370		396		376		400		382		389		403		403		1,542		1,577
Corporate	10		5		5		2		8		6		—		13		22		27
Total net investment income	$	752	$	810	$	768	$	824	$	811	$	787	$	841	$	825	$	3,154	$	3,264

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2014			Sept 30 2014			Jun 30 2014			Mar 31 2014			Dec 31 2013			Sept 30 2013			Jun 30 2013			Mar 31 2013			Dec 31 2014			Dec 31 2013
Net Realized Capital Gains (Losses)
Gross gains on sales [1]	$	106		$	116		$	122		$	183		$	292		$	105		$	207		$	1,709		$	527		$	2,313
Gross losses on sales	(59		)	(29		)	(33		)	(129		)	(333		)	(137		)	(117		)	(72		)	(250		)	(659		)
Net impairment losses	(16		)	(14		)	(7		)	(22		)	(14		)	(26		)	(12		)	(21		)	(59		)	(73		)
Valuation allowances on mortgage loans	(1		)	—			(3		)	—			(1		)	—			—			—			(4		)	(1		)
Periodic net coupon settlements on credit derivatives [2]	—			—			2			(1		)	(3		)	(1		)	—			(4		)	1			(8		)
Results of variable annuity hedge program
GMWB derivatives, net	(10		)	6			(6		)	15			43			203			(31		)	47			5			262
Macro hedge	2			12			(15		)	(10		)	(52		)	(50		)	(47		)	(85		)	(11		)	(234		)
Total results of variable annuity hedge program	(8		)	18			(21		)	5			(9		)	153			(78		)	(38		)	(6		)	28
Other net gain (loss) [3]	(36		)	(22		)	(64		)	(71		)	70			37			21			70			(193		)	198
Total net realized capital gains (losses)	$	(14	)	$	69		$	(4	)	$	(35	)	$	2		$	131		$	21		$	1,644		$	16		$	1,798
Less: Realized gain on dispositions, before tax	—			—			—			—			—			—			1			1,574			—			1,575
Less: Realized gains (losses), included in core earnings, before tax	2			7			7			—			(2		)	1			3			(3		)	16			(1		)
Total net realized capital gains (losses) and other, before tax and DAC, excluded from core earnings (losses)	(16		)	62			(11		)	(35		)	4			130			17			73			—			224
Less: Impacts of DAC	1			13			(1		)	16			(10		)	28			(6		)	22			29			34
Less: Impacts of tax	(8		)	22			(6		)	(17		)	3			39			1			26			(9		)	69
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings (losses)	$	(9	)	$	27		$	(4	)	$	(34	)	$	11		$	63		$	22		$	25		$	(20	)	$	121


[1]	Includes $1.5 billion of gains for the three months ended March 31, 2013 and the year ended December 31, 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 the year ended December 31, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED



	Dec 31 2014				Sept 30 2014				Jun 30 2014				Mar 31 2014				Dec 31 2013
	Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent
Total investments	$	76,278	100.0	%	$	76,231	100.0	%	$	76,239	100.0	%	$	97,084	100.0	%	$	98,401	100.0	%
Less: Equity securities, trading	11		—	%	12		—	%	12		—	%	17,418		17.9	%	19,745		20.1	%
Total investments excluding trading securities	$	76,267	100.0	%	$	76,219	100.0	%	$	76,227	100.0	%	$	79,666	82.1	%	$	78,656	79.9	%
Asset-backed securities	$	2,472	4.2	%	$	2,439	4.1	%	$	2,309	3.8	%	$	2,252	3.6	%	$	2,365	3.8	%
Collateralized debt obligations	2,841		4.8	%	2,445		4.1	%	2,434		4.0	%	2,394		3.8	%	2,387		3.8	%
Commercial mortgage-backed securities	4,415		7.4	%	4,482		7.5	%	4,696		7.8	%	4,568		7.2	%	4,446		7.1	%
Corporate	27,359		46.0	%	27,714		46.6	%	28,668		47.7	%	29,040		45.8	%	28,490		45.7	%
Foreign government/government agencies	1,636		2.8	%	1,672		2.8	%	1,707		2.8	%	4,050		6.4	%	4,104		6.6	%
Municipal	12,871		21.7	%	12,761		21.4	%	12,713		21.1	%	12,682		20.0	%	12,173		19.5	%
Residential mortgage-backed securities	3,918		6.6	%	3,995		6.7	%	4,426		7.3	%	4,556		7.2	%	4,647		7.5	%
U.S. Treasuries	3,872		6.5	%	4,078		6.8	%	3,293		5.5	%	3,797		6.0	%	3,745		6.0	%
Total fixed maturities, available-for-sale	$	59,384	100.0	%	$	59,586	100.0	%	$	60,246	100.0	%	$	63,339	100.0	%	$	62,357	100.0	%
U.S. government/government agencies	$	7,596	12.8	%	$	7,874	13.2	%	$	7,569	12.6	%	$	8,194	12.9	%	$	8,208	13.2	%
AAA	7,251		12.2	%	7,074		11.9	%	6,731		11.2	%	6,410		10.1	%	6,376		10.2	%
AA	10,056		16.9	%	10,094		16.9	%	10,458		17.4	%	12,930		20.4	%	12,273		19.7	%
A	16,717		28.2	%	16,143		27.1	%	16,437		27.3	%	16,084		25.4	%	15,498		24.9	%
BBB	14,397		24.2	%	14,764		24.8	%	15,402		25.4	%	16,006		25.3	%	16,087		25.7	%
BB & below	3,367		5.7	%	3,637		6.1	%	3,649		6.1	%	3,715		5.9	%	3,915		6.3	%
Total fixed maturities, available-for-sale	$	59,384	100.0	%	$	59,586	100.0	%	$	60,246	100.0	%	$	63,339	100.0	%	$	62,357	100.0	%


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES



	As of December 31, 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	$	5,091	$	5,415	7.1	%
Utilities	4,318		4,801		6.3	%
Consumer non-cyclical	3,520		3,854		5.1	%
Technology and communications	3,188		3,549		4.7	%
Energy [2]	3,115		3,316		4.3	%
Basic industry	1,899		2,087		2.7	%
Capital goods	1,704		1,824		2.4	%
Consumer cyclical	1,688		1,771		2.3	%
Transportation	894		972		1.3	%
Other	447		469		0.6	%
Total	$	25,864	$	28,058	36.8	%
Top Ten Exposures by Issuer [3]
State of Illinois	$	319	$	333	0.4	%
JP Morgan Chase & Co.	293		282		0.4	%
Goldman Sachs Group Inc.	263		281		0.4	%
State of California	242		280		0.4	%
Commonwealth of Massachusetts	239		269		0.4	%
Bank of America Corp.	241		251		0.3	%
New York State Dormitory Authority	231		251		0.3	%
National Grid PLC	210		249		0.3	%
General Electric Co.	246		240		0.3	%
Verizon Communications Inc.	193		233		0.3	%
Total	$	2,477	$	2,669	3.5	%


[1]	Excludes equity securities, trading.

[2]

The Company’s total exposure to the energy sector has a cost or amortized cost and fair value of $3.5 billion and $3.7 billion, respectively, as of December 31, 2014, and includes fixed maturities and equity securities, AFS classified within the energy, basic industry, and other sectors above, as well as investments in foreign government and government agency securities and in certain fixed maturities, FVO and short-term investments.


[3]	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, Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits, Mutual Funds and Talcott Resolution, as well as a Corporate category.

Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations (collectively "Property & Casualty (Combined)"). Commercial Lines provides businesses with workers' compensation, property, automobile, liability, umbrella, marine and livestock 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, bond, and specialty casualty coverages are offered through the Commercial Lines segment's specialty lines. Personal Lines provides automobile, homeowners and personal umbrella 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 group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups, associations, affinity groups and financial institutions. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.

Mutual Funds offers mutual funds for retail and retirement accounts and provides investment-management and administrative services such as product design, implementation and oversight. This business segment also includes the runoff of the mutual funds supporting the Company's variable annuity products.

Talcott Resolution is comprised of runoff business from the Company's individual annuity and institutional and private-placement life insurance businesses, and the retained Japan fixed payout annuity liabilities.

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 and insurance operating costs and expenses, including certain centralized services and bad debt 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, pension settlements, 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 on page 1.

The Company provides different measures of the return on stockholders' equity (“ROE”). ROE (core earnings last twelve months to stockholders' equity, excluding AOCI), is calculated based on non-GAAP financial measures. ROE (core earnings last twelve months to stockholders' 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 stockholders' 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 Commercial Lines and Personal Lines 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 Commercial Lines and Personal Lines is set forth herein on pages 12 and 15, 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 pricing and 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. Net income (loss) is the most directly comparable GAAP measure. 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 reconciliation of underwriting gain (loss) to net income for the P&C businesses is set forth herein on page 10.

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 (not presented herein) 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 (Individual Annuity) 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 99.2 - February 2, 2015

Attached files

HARTFORD FINANCIAL SERVICES GROUP, INC. Reports