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Copyright © 2017 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford.

Overview of The Hartford

The Hartford Financial Services Group, Inc.

November 2017


Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford’s future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ, including those discussed in The Hartford’s news releases issued on October 23, 2017, The Hartford’s Quarterly Reports on Form 10-Q, The Hartford’s 2016 Annual Report on Form 10-K, and other filings we make with the U.S. Securities and Exchange Commission. We assume no obligation to update this presentation, which speaks as of today’s date. The discussion in this presentation of The Hartford’s financial performance includes financial measures that are not derived from generally accepted accounting principles (GAAP). Information regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, is provided in the Appendix, the news releases issued on October 23, 2017 and The Hartford’s Investor Financial Supplement for third quarter 2017 which is available at the Investor Relations section of The Hartford’s website at https://ir.thehartford.com.

From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at https://ir.thehartford.com.

2

Safe harbor statement

https://ir.thehartford.com/






Copyright © 2017 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford. 3

The Hartford is focused on several strategic priorities

Maintain strong margins and underwriting discipline in Commercial Lines

Improve Personal Lines margins through continued pricing, underwriting and

distribution initiatives and reinvigorate new business production

Smooth and timely integration of Aetna acquisition

while achieving strong margins in Group Benefits

Increase core earnings1 and core earnings ROE1, 2, excluding Talcott Resolution,

while maintaining a strong balance sheet

1. Denotes financial measure not calculated based on generally accepted accounting principles (GAAP)

2. Return on equity

3


Mutual Funds

7% Group

Benefits 15%

Commercial and

Personal Lines 55%

Talcott Resolution

23%

4

The Hartford’s businesses have:

– Strong market positions

– Good margins and excess capital generation

– Low capital markets sensitivity

• Commercial Lines: Leader in the highly

attractive small and middle market segments

• Group Benefits: A leading provider of life

and disability protection through employers

• Personal Lines: 30+ year partnership

with AARP

• Mutual Funds: A high return business

with consistent cash flows

• Talcott Resolution: Continued runoff of

the annuity blocks and return of capital to the

holding company

Our businesses have attractive characteristics and strong competitive advantages

1. Year-to-date (YTD); denotes financial measure not calculated based on GAAP

2. Corporate core losses, which included interest expense, were $156 million, and P&C Other

core earnings were $57 million as of 2017 September YTD

2017 September YTD Core Earnings1 excluding Corporate and P&C Other2


Group Benefits – The acquisition of Aetna’s group insurance business is a unique opportunity and solidifies our market leading position

▪ Enhances The Hartford’s distribution footprint and sales force

▪ Provides an exclusive, multi-year collaboration to sell The Hartford’s

group life and disability products through Aetna’s medical sales team

▪ Enables expanded data and advanced analytical capabilities

▪ Increases competitive advantage around recovery management,

driving improved outcomes for customers

Higher ROE

potential

Accelerates

technological

strategy

Expands data

and analytical

capabilities

Enhances

distribution

footprint

▪ Accelerates our technology strategy by adding industry-leading digital

capabilities and an integrated absence management and claims platform

▪ Reduces investment costs previously expected for digital initiatives and

enhancements of legacy systems

Stock price beta

more consistent

with peers

▪ Expected to be accretive to net income and core earnings beginning in 2018

▪ Purchase price was funded by dividends from insurance subsidiaries and

holding company resources without issuance of debt or equity

Financially

accretive

Increases

market

presence

▪ The Hartford has become #2 insurer in the group life and disability market,

up from #51

▪ Combines two complementary franchises that are both committed to

high-quality products and best-in-class customer and claims service

1. Source: LIMRA, based on in-force master contracts, certificates, total premiums collected as of Dec. 31, 2016, and annualized premiums

5


9M171 financial highlights

▪ Net income per diluted share of $1.54, compared with $2.45 per diluted share in 9M162

reflecting the impact of pension transfer in 2Q17, partially offset by higher core earnings3

▪ Core EPS3,4 of $2.65, up 15% from 9M16, principally due to A&E5 PYD6 charges in 2Q16

and improved personal automobile (auto) results, partially offset by elevated CATs7 in 2017

▪ BVPS, ex. AOCI3,8 of $45.72, essentially flat compared with Sept. 30, 2016

▪ Core earnings ROE, excluding Talcott Resolution, of 9.7% compared with

core earnings ROE, excluding Talcott Resolution, of 9.1% in 3Q16

▪ Underlying combined ratio3,9 of 91.7, increased 1.9 points from 9M16, primarily due to

higher loss ratios in workers’ compensation, non-CAT property and commercial auto

liability and a higher expense ratio as a result of variable compensation accruals

▪ Underlying combined ratio of 92.9 improved 0.4 point from 9M16, reflecting improved

auto underwriting results; underlying auto loss ratio improved 2.1 points compared with

9M16, adjusted for subsequent reserve development for accident year 2016

▪ Core earnings of $167 million, up 15% from 9M16 due to favorable group life mortality

and improved disability incidence and recoveries

▪ Loss ratio of 76.2%, improved 2.2 points compared with 9M16

▪ Repurchased 20.2 million shares for $1.027 billion during 2017; share repurchase

suspended Oct. 13, 2017 for funding Aetna group life and disability acquisition

▪ Declared 9% increase in quarterly dividend to $0.25 per common share,

payable Jan. 2, 2018

1. First nine months of 2017 2. First nine month of 2016 3.Denotes financial measure not calculated based on GAAP 4. Earnings per diluted share 5. Asbestos & Environmental 6. prior accident year

development (PYD) 7. Catastrophes (CATs) 8.Book value per diluted share, excluding accumulated other comprehensive income 9. Combined ratio before catastrophes (CATs) and PYD

Core Earnings

BVPS and ROE

Personal Lines

Group Benefits

Capital

Management

Commercial

Lines


P&C1 – The Hartford is a leading P&C insurer

Core Earnings

($ in millions)

1. Property & Casualty (P&C) includes Commercial Lines, Personal Lines and P&C Other Operations

2. Per A.M. Best, based on 2016 direct written premiums

*Total Net Written Premium includes all other premiums in P&C Other Operations

• Leader in highly-attractive small commercial segment

• Broad and deep commercial distribution partnerships

• Longstanding Personal Lines partnership with AARP

• Leading choice among agents

• Best-in-class technology

• Recognized for claims excellence

• Leading share in P&C Small Commercial

• #2 in Workers’ Compensation2

• #4 in Commercial Multi-Peril2

• #4 in Direct Personal Lines2

• #7 overall in P&C Commercial2

Leading Market

Positions

Strong Competitive Advantages

$872 $884 $919

$259

($12)

$15

2015 2016 3Q17, LTMUnderwriting Gain (Loss) and Fees, After-tax

Net Investment Income, After-tax

$1,131

$872

$6,625 $6,732 $6,893

$3,918 $3,837 $3,630

2015 2016 3Q17, LTM

Commercial Lines Personal Lines

Net Written Premium

($ in millions)

$10,522* $10,578* $10,568*

$934


Commercial Lines – Continues to deliver strong results

2016 Earned Premium by Product

Diversified Premium Mix

48%

9%

10%

18%

9% 3% 3%

Workers’ Compensation

Property

Auto

Package

Liability Professional Liability

Bond

Distinctive Agent Relationships

92.6 92.8

97.7

90.0 89.4

90.8

2015 2016 3Q17, LTMCombined Ratio

Underlying Combined Ratio

Strong Underwriting and Profitability

2016 Written Premiums by Lines

$3,521

$2,343

$826 $42

Small Commercial (52%)

Middle Market (35%)

Specialty Commercial (12%)

Other Commercial (1%)

($ in millions)


Leading Small Commercial underwriter

Strong Profitability

New Business Premium

89.0 90.3

93.6

86.6 86.6 87.4

2015 2016 3Q17, LTM

Combined Ratio


Net Written Premium

Small Commercial

$3,388 $3,521 $3,673

2015 2016 3Q17, LTM

($ in millions)

$545 $576 $586

2015 2016 3Q17, LTM

• Expanding product and underwriting

capabilities, including acquisition of

Maxum

• Best in class technology, improving

efficiency and customer/partner

experience

• Leading choice among agents

($ in millions)

9

+8% +8%


Middle Market focused on margins and underwriting discipline

Improved Underwriting - Discipline over Growth

New Business Premium

97.3 97.4

103.0

91.4 91.5 93.6

2015 2016 3Q17, LTM

Combined Ratio


Net Written Premium

Middle Market

$2,364 $2,343 $2,349

2015 2016 3Q17, LTM

($ in millions)

$474 $459 $480

2015 2016 3Q17, LTM

• In an increasingly competitive

environment, focused on underwriting

discipline over growth

• Investing in technology and new industry

verticals to further strengthen franchise

• Introduced multinational in 1Q17

($ in millions)

10


42% 30%

23%

5%

National

Accounts Financial

Products

Bond

Other

Full Year

Specialty Commercial results remain strong

Improving Underwriting with Strong Results

2016 Earned Premium by Product

89.9 88.0

96.8

98.8

94.5

96.7



Net Written Premium

Specialty Commercial

$838 $826 $825

2015 2016 3Q17, LTM

($ in millions)

• National Accounts market became

more competitive in 2016 and continues

in 2017

• Financial Products focus shifted to

private and mid-sized accounts over

the past several years

• Bond is expanding into smaller and

mid-sized accounts

11


$1.4 $1.4 $2.4

$1.5 $1.5

$2.5

2015 2016 2016Pro Forma

Disability Life Other

Premium2

($ in billions)

12

The acquisition of Aetna’s group insurance further strengthen our leadership position

Strong Profitability Book of Business Remains Balanced

Between Disability and Life

Group Benefits Underwriting Complements The Hartford’s Workers’ Compensation Expertise

Group Benefits – A market leader in the group life and disability market, an underwriting-centric business that leverages our workers’ compensation expertise

5.6% 5.7% 6.2%

2015 2016 3Q17, LTM

Core Earnings Margin1

2. Fully insured ongoing premium, excluding buyout premiums, excluding Association –

Financial Institutions

77.4 78.0

76.2

81.6 81.4

78.3

74.7 75.7 75.0

2015 2016 9M17

Total Disability Life

Loss Ratio

(Excluding Association – Financial Institutions)

$3.1 $3.1

1. Denotes financial measure not calculated based on GAAP

$5.1

Leader in Group Life

and Disability

(in-force premium as of

12/31/16, per LIMRA)

#2


$0.1

$2.7 $2.0

Small

(2%)

Middle

Market

(42%)

National

Accounts

(56%)

13

• Hartford Life and Accident Insurance Company

(HLA), the primary group benefits insurance

operating subsidiary of The Hartford, reinsures

on a coinsurance basis Aetna’s U.S. book of

group life and disability insurance with premiums

of approximately $2 billion

– Acquisition does not include dental, vision or

long-term care products

• Acquisition closed on November 1, 2017

– Purchase price consists principally of a $1.38 billion

ceding commission

– Funded by dividends from insurance subsidiaries and

holding company resources without issuance of debt

or equity

• Financially accretive in 2018:

– Expected to increase annual premium by

approximately $2.0 billion plus investment income

on transferred invested assets, less expenses

– Core earnings expected to rise by $80 to $100

million, after tax, including amortization of intangibles

of $20 to $30 million, after tax

– Estimated savings beginning in 2018 on run-rate

operating expenses of approximately $100 million,

before tax, expected to be largely achieved within

two years

The acquisition of Aetna’s group life and disability business is

expected to be accretive to earnings in 2018 and beyond

$1.4 $2.4

$1.5

$2.5

2016 Actual Pro Forma

Disability Life Other

49%

47%

48%

46%

Pro Forma Group Benefits Premium1

2016 Full Year ($ in billions)

1. Fully insured ongoing premium, excluding buyout premiums

2. Excludes The Hartford’s non-Employer Group Specialty business

$3.1

$5.1

Employer Group2 Premiums by Employer Size

Premiums by Product


Group Benefits –

Summary estimated financial impacts of acquisition

Cash consideration:

Ceding commission

Purchase price for operating assets (software, equipment, etc.)

$1.45 billion

~$1.38 billion

~$0.07 billion

2018 estimates of earnings accretion1:

Net income, after tax

Core earnings, after tax

Estimated annual amortization of intangibles, after tax

+ $60 to $80 million



Pro forma impact to 9/30/17:

Book value per diluted share (BVPS), ex. AOCI2

Tangible BVPS ex. AOCI2

Leverage ratio3

No impact

$(3.38) or (8%) dilutive

No impact

Present value of tax benefits as a result of the acquisition4 ~$325 million

Estimated savings beginning in 2018 on run-rate operating expenses,

expected to be largely achieved within 2 years (before tax)5 ~$100 million

Estimated transaction and integration related costs over the next 24 months6 ~$80 million, before tax

~$50 million, after tax

1. Intangible amortization included in net income and core earnings; transaction and integration related costs included in net income

2. Denotes financial measures not calculated based on generally accepted accounting principles (GAAP)

3. Total rating agency adjusted debt to capitalization ratio (based on Moody’s methodology)

4. Includes ~$260 million net present value, discounted at 8%, from ceding commission and ~$65 million from accelerated utilization of existing tax attributes

5. Largest portion of the estimated total operating expense savings of ~$100 million, before tax, is ~$60 million, before tax, expected to be achieved in 2018, which is

reflected in earnings estimates

6. Transaction and integration related costs estimated to be ~$15 million, before tax, in 4Q17, ~$25 million, before tax, in 2018 and ~$40 million, before tax, in 2019,

or ~$10 million, after tax, in 4Q17, ~$15 million, after tax, in 2018 and ~$25 million, after tax, in 2019


75%

10%

14%

1%

AARP

Direct

AARP

Agency

Other Agency Other

2016 FY

~3M

~38M

Policies in force AARP Members

15

Market Leading Position

Focused on AARP Membership for Growth

Net Written Premium by Distribution

Focused on Improving Margins in 2017 & 2018

Personal Lines – The Hartford is a leading direct personal lines

insurer with a 30+ year partnership with AARP

Opportunity to further penetrate AARP membership

Major Direct

Personal Lines

Company (per A.M. Best, 2016)

#4

97.0

104.8 101.8

92.0

95.4 94.1



AARP Policies AARP Members

The Hartford’s personal

lines business is focused

on AARP members, with

the goal of increasing its

penetration of this

38 million member

association

1

1. 3Q17, LTM includes 4Q16 combined ratio and underlying combined ratio adjusted for

2016 accident year development


$101 $96 $111 $114 $110

$83

$48 $42 $38 $37

AARP Direct AARP Agency Other Agency Other

13

21 27

37

30 36

28

45

19

44

32

16

Underwriting Actions Impact on New Business

Policy Count Retention

Increased Rate Actions

Personal Lines – Auto profitability initiatives taking hold,

laying foundation for improved results in 2017 and beyond

Number of Rate Filings

Auto New Written Premium

($ in millions)

85% 86% 86% 86% 86% 86% 86% 85% 83% 84%

82%

81% 80% 78% 77% 78% 78% 78% 79%

74%

70% 66%

82% 81% 79% 80% 80% 78% 78% 79% 76% 75%

73%

AARP AARP Agency Other Agency

$70 (47%)

1

1. Includes policies that are available to renew on either a six or twelve month policy term.

The policy retention represents the percentage of policies that renewed since the last

policy term and is not annualized

99.2 99.0

104.4

98.4 97.1 99.0

103.9

2013 2014 2015 2016

Underlying Combined Ratio (2013-2015 as developedthrough Dec. 31, 2016)

Underlying Combined Ratio (as originally reported)


1

1. As developed combined ratio takes into account impact of prior accident year

development since accident year-end


Automobile Underlying Combined Ratio

9M16 9M17 Change

Underlying combined ratio

as reported 100.7 99.1 (1.6) pts

Adjusted for 9M16:

Loss ratio on reported basis 77.9 77.7

2016 accident year development

adjustment 1.9 —

9M16 loss ratio as adjusted 79.8 77.7 (2.1) pts

Expense ratio 22.8 21.3 (1.5) pts

Underlying combined ratio with

adjusted 9M16 loss ratio 102.6 99.1 (3.5) pts

17

With improved auto rate adequacy in 2017,

increasing marketing spend for new business growth in 2018

• Personal auto results deteriorated as 2015 - 2016 auto

frequency and severity were higher than expected due

to increased miles driven with greater distracted and

highway driving

• Multiple auto profitability initiatives launched since

3Q15, which negatively impacted new business and

renewal retention ‒ Reduced agency appointments

‒ Increased prices and accelerated rate filings

‒ Decreased marketing spending

‒ 9M17 net written premiums decreased 7%

• 2017 auto losses have improved, adjusted for

subsequent development of 2016 accident year

‒ Adjusted for 2.1 points of loss ratio development related to

other periods in 2016, 9M17 underlying auto combined ratio

improved 3.5 points

‒ 9M17 expense ratio down 1.5 points due to reduced

acquisition expenses

• With improved rate adequacy, increased marketing

efforts in full motion, and expect to see year-over-year

new business growth in early 2018


(in thousands)

$40.7 $7.3

$13.8

($ in billions) Individual Variable Annuity

Individual Fixed Annuity

Institutional Annuity

18

• Focused on running off annuity blocks

effectively and efficiently, while maintaining

Talcott Resolution’s capital self-sufficiency – Annuity assets under management decreasing

steadily through runoff

– Talcott Resolution legal entities are separate

from P&C and other businesses

• $1.75 billion of dividends paid in 2015 - 2016 – $1.4 billion paid in 2017

Talcott Resolution – Effectively and efficiently running off annuity blocks and returning capital to the holding company

$1,469

$1,000

$750

$1,400

2014 2015 2016 2017

($ in millions)

674 603

544 505

139 128

121 115

2014 2015 2016 3Q17

Variable Annuity Fixed Annuity

813 731

665 620

1. As of Sept. 30, 2017; excludes

assets associated with reinsured

businesses and Private

Placement Life Insurance

business

2. Includes Structured Settlements,

Terminal Funding, Investment

Contracts and $4.1 billion of HIG

Pension

(24%)

Capital Self-sufficiency and Generation Individual Annuity Contract Count

Talcott Resolution Return of Capital Annuity Asset Under Management1

2


$7.0B

$4.1B

$2.6B

$0.1B

Institutional Account Value

$13.8 Billion as of September 30, 2017

HIG

Pension

30%

Investment

Contracts

1%

Terminal

Funding

18%

Structured

Settlements

51%

Structured Settlements Long duration structured payout annuities contracts

Liability Duration: 12.4

Implied Crediting Rate: 5.9%

Number of Annuitants: ~41,000

Weighted Average Life of Payout: 25.1 years

Terminal Funding • Defined benefit pension deferred/payout annuity contracts

• Liability Duration: 8.3

• Implied Crediting Rate: 5.9%

• Number of Annuitants: ~72,000

• Weighted Average Life of Payout: 13.6 years

Investment Contracts • Guaranteed Investment Products (GIPs) and Consumer Notes

• GIP Liability Duration: 2.8

• GIP Average Crediting Rate: 4.4%

• GIP Number of Cases: 11

• GIP Weighted Average Life of Payout: 3.0 years

HIG Pension • Servicing fees on a portion of HIG pension plan assets

• Number of Contracts: 3

Institutional block has very long duration contracts and is sensitive to interest rate and credit risk

19


Capital management includes equity repurchases, common dividends, debt reduction and investment in businesses

• $1.027 billion repurchased under 2017 plan

through October 12, 2017 for a remaining

balance of $273 million used to fund cash

requirements associated with the acquisition of

Aetna’s group life and disability book – The Hartford does not currently expect to authorize

a 2018 equity repurchase plan as a result of the

additional P&C and Talcott Resolution extraordinary

dividends totaling $1.4 billion to fund the acquisition

• Aetna acquisition funded by: – Additional P&C dividends of $600 million and

additional Talcott Resolution dividends of

$800 million above 2017 prior plan

– $250 million from holding company

– No debt or equity issued to fund the acquisition

• On October 23, 2017, the board declared a 9%

increase in quarterly dividend to $0.25 per

common share, payable on January 2, 2018 – This is the fifth consecutive year we have increased

our quarterly dividend

• Debt management actions: – Repaid $416 million of senior notes at maturity

in March 2017

– Intend to call the 8.125% $500 million

junior subordinated bond redeemable at par

in June 2018

$1.3 $1.3

$1.0

$0.3 $0.3

$0.31

2015 2016 2017

Dividends Paid on Common Stock

Share Repurchases

Capital Return to Shareholders

($ in billions)

$1.6 $1.6

$1.3

1. Reflects estimated dividends for the year at 2017 quarterly dividend rate of

$0.23 per share and year-end 2016 shares outstanding


• Book value per diluted share has grown since

Dec. 31, 2016, despite the impact of pension

settlement charge

– $47.33 BVPS at Sept. 30, 2017,

up 7% from Dec. 31, 2016

– $45.72 BVPS, ex. AOCI at Sept. 30, 2017,

up 1% from Dec. 31, 2016

• Over the last twelve months, risk reduction

transactions have reduced BVPS growth

– 4Q16 included a charge of $423 million, after tax,

resulting from a reinsurance agreement with

National Indemnity Company (NICO) covering

The Hartford’s A&E liability exposures up to

$1.5 billion for a net impact to book value per

diluted share of $1.11

– 2Q17 included a transfer of $1.6 billion of U.S.

defined benefit pension obligation to Prudential

Financial resulting in a pension settlement charge of

$488 million, after tax, ($344 million, after tax, already

in AOCI previously) for a net impact to book value per

diluted share of $0.39

Book value per diluted share growth in last twelve months

impacted by risk reduction transactions for A&E and

pension settlement charge

Book Value Per Diluted Share, ex. AOCI1,2

$40.71

$43.76 $45.24 $45.72

2014 2015 2016 9M17

Book Value Per Diluted Share

$42.84 $42.96 $44.35

$47.33

2014 2015 2016 9M17

1. Denotes financial measure not calculated based on GAAP

2. Book value per diluted share, excluding accumulated other comprehensive income


11.0%

9.7%

4.7%

7.6%

9.1%

10.7%

12.1%

5.1%

8.2%

9.7%

3Q16 3Q17

22

2016 P&C ROEs impacted by deterioration in personal auto and A&E PYD; better underlying results in 2017, but increase in CATs

Core Earnings ROE1

1. Denotes financial measure not calculated based on GAAP; Twelve month trailing core earnings return on equity (ROE), excluding AOCI, levered


The Hartford’s operating and financial leverage has improved and the balance sheet is strong

Reducing Leverage Ratio

27.0 25.8

24.7

Low 20s

Dec. 31,2015

Dec. 31,2016

Sep. 30,2017

Target

Rating Agency Adjusted Debt Ratio1

Financial Strength Ratings Upgraded

A.M. Best

Hartford Fire

Insurance Company

Standard

& Poor’s

Moody’s

May 1, 2015

April 17, 2015

April 23, 2015

Company Debt Ratings

1. Based on Moody’s methodology

Hartford Financial Services Group

Senior Debt Ratings

Moody’s Baa2 (Stable)

Standard & Poor’s BBB+ (Stable)

Hartford Life and

Accident Company

April 3, 2014

April 15, 2014

April 23, 2015


Appendix - Discussion and reconciliation of GAAP

to non-GAAP financial terms


The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing the company's operating performance for the

periods presented herein. Because The Hartford's calculation of these measures may differ from similar measures used by other companies,

investors should be careful when comparing The Hartford's non-GAAP financial measures to those of other companies. Definitions and

calculations of non-GAAP and other financial measures used in this presentation can be found below, in The Hartford’s press releases, dated

October 23, 2017, and in The Hartford's Investor Financial Supplement for third quarter 2017, which are available on The Hartford's website,

https://ir.thehartford.com.

Book value per diluted share excluding accumulated other comprehensive income ("AOCI”): Book value per diluted share excluding AOCI

is a non-GAAP financial measure based on a GAAP financial measure. It is calculated by dividing (a) common stockholders' equity excluding

AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Hartford provides book value per diluted share

excluding AOCI to enable investors to analyze the company’s stockholders’ equity excluding the effect of changes in the value of the company’s

investment portfolio and other assets due to interest rates, currency and other factors. The Hartford believes 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 market value. Book value per diluted share is the most directly comparable GAAP measure. A reconciliation of book value per

diluted share, including AOCI to book value per diluted share, excluding AOCI is set forth below.

Discussion and reconciliation of non-GAAP financial measures

As of As of

Sep 30

2017

Sep 30

2016

Dec 31

2016

Dec 31

2015

Dec 31

2014

Book value per diluted share, including AOCI $47.33 $48.30 $44.35 $42.96 $42.84

Less: Per diluted share impact of AOCI $1.61 $2.56 ($0.89) ($0.80) $2.13

Book value per diluted share, excluding AOCI $45.72 $45.74 $45.24 $43.76 $40.71



Discussion and reconciliation of non-GAAP financial measures –

continued

Core Earnings: The Hartford uses the non-GAAP measure core earnings as an important measure of the company’s operating performance.

The Hartford believes that the measure core earnings provides investors with a valuable measure of the performance of the company’s ongoing

businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of

certain realized capital gains and losses, certain restructuring charges, pension settlements, loss on extinguishment of debt, reinsurance gains

and losses on business disposition transactions, income tax benefit from reduction in valuation allowance, discontinued operations, and the

impact of Unlocks to deferred policy acquisition costs ("DAC"), sales inducement assets, unearned revenue reserves 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 (net of tax and the effects of DAC) that tend to be highly variable

from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are

integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit

derivatives. 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 (loss) is the most directly comparable U.S. GAAP measure. Core earnings should not be considered as a substitute for net

income (loss) and does not reflect the overall profitability of the company’s business. Therefore, The Hartford believes that it is useful for investors

to evaluate both net income (loss) and core earnings when reviewing the company’s performance.


A reconciliation of net income (loss) to core earnings for years ended December 31, 2016 and December 31, 2015 as well as for the nine months

ended September 30, 2017 and 2016 can be found in the tables set forth below. A reconciliation of net income (loss) to core earnings for individual

reporting segments can also be found in the tables below.

Twelve Months Ended Dec 31, 2015

($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott

Resolution Corporate Consolidated

Net income (loss) $1,003 $187 ($53) $187 $86 $430 ($158) $1,682

Less: Unlock benefit, before tax - - - - - 80 - 80

Less: Net realized capital gains (losses) after DAC,

excluded from core earnings, before tax (9) 4 3 (12) - (165) 14 (165)

Less: Restructuring and other costs, before tax - - - - - - (20) (20)

Less: Loss on extinguishment of debt, before tax - - - - - - (21) (21)

Less: Net reinsurance gain on dispositions, before

tax - - - - - 28 - 28

Less: Income tax benefit (expense) 2 (2) 1 4 - 13 103 121

Less: Income from discontinued operations, after tax 7 - - - - 2 - 9

Core earnings (losses) $1,003 $185 ($57) $195 $86 $472 ($234) $1,650

Twelve Months Ended Dec 31, 2016

($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott


Net income (loss) $1,007 ($22) ($529) $230 $78 $244 ($112) $896

Less: Unlock benefit (charge), before tax - - - - - (2) - (2)

Less: Net realized capital gains (losses) including

DAC, excluded from core earnings, before tax 15 2 (70) 41 - (140) (104) (256)

Less: Loss on reinsurance transactions, before tax - - (650) - - - - (650)

Less: Income tax benefit (expense) (5) - 292 (15) - 3 194 469

Core earnings (losses) $997 ($24) ($101) $204 $78 $383 ($202) $1,335


continued


Nine Months Ended Sep 30, 2017

($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott


Net income (loss) $ 579 $ 65 $ 62 $ 185 $ 73 $ 253 $ (645) $ 572



DAC, excluded from core earnings, before tax 55 9 10 27 - (51) - 50

Less: Pension settlement, before tax - - - - - - (750) (750)

Less: Income tax benefit (expense) (19) (3) (5) (9) - (3) 261 222

Core earnings (losses) $ 543 $ 59 $ 57 $ 167 $ 73 $ 246 $ (156) $ 989

Nine Months Ended Sep 30, 2016

($ in millions)

Commercial

Lines

Personal

Lines

P&C

Other Ops

Group

Benefits

Mutual

Funds

Talcott


Net income (loss) $ 730 $ 6 $ (106) $ 167 $ 61 $ 199 $ (80) $ 977



DAC, excluded from core earnings, before tax 32 4 (44) 34 - (131) (5) (110)

Less: Income tax benefit (expense) (12) (1) 54 (12) - 40 80 149

Core earnings (losses) $ 710 $ 3 $ (116) $ 145 $ 61 $ 272 $ (155) $ 920


continued


Core earnings per diluted share: Core earnings per diluted share is calculated based on the non-GAAP financial measure core earnings. It is

calculated by dividing (a) core earnings, by (b) diluted common shares outstanding. The Hartford believes that the measure core earnings per

diluted share provides investors with a valuable measure of the company's operating performance for the same reasons applicable to its

underlying measure, core earnings. Net income (loss) per diluted common share is the most directly comparable GAAP measure. Core earnings

per diluted share should not be considered as a substitute for net income (loss) per diluted share and does not reflect the overall profitability of the

company's business.

Therefore, The Hartford believes that it is useful for investors to evaluate both net income (loss) per diluted share and core earnings per diluted

share when reviewing the company's performance. A reconciliation of net income (loss) per diluted common share to core earnings per diluted

share for the nine months ended September 30, 2017 and 2016 is provided in the table below.


continued

Nine Months

Ended

Sep 30

2017

Sep 30

2016

PER SHARE DATA

Diluted earnings (losses) per common share:

Net income per share $1.54 $2.45

Less: Unlock benefit (charge), before tax 0.16 0.05

Less: Net realized capital losses including DAC, excluded

from core earnings, before tax 0.13 (0.28)

Less: Pension settlement, before tax (2.01) -

Less: Income tax benefit (expense) on items excluded

from core earnings 0.61 0.37

Core earnings per share $2.65 $2.31


Core earnings margin: The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of,

the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding

buyouts and realized gains (losses). Net income margin is the most directly comparable U.S. GAAP measure. The Company believes that core

earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that

may be obscured by the effect of buyouts and realized gains (losses). Core earnings margin should not be considered as a substitute for net

income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to

evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings

margin for the twelve months ended December 31, 2016, December 31, 2015 and December 31, 2014 as well as for the nine months ended

September 30, 2017 and 2016 is set forth below.

Nine Months Ended Twelve Months Ended

Sep 30

2017

Sep 30

2016

Dec 31

2016

Dec 31

2015

Dec 31

2014

Net income margin 6.7% 6.1% 6.3% 5.4% 5.5%

Less: Effect of net capital realized

gains, net of tax on after tax margin 0.6% 0.7% 0.6% (0.2%) 0.3%

Core earnings margin 6.1% 5.4% 5.7% 5.6% 5.2%


continued


Return on Equity – Core Earnings: The Company provides different measures of the return on stockholders' equity (“ROE”). ROE - Core

earnings is calculated based on non-GAAP financial measures. ROE - Core earnings is calculated by dividing (a) core earnings for the prior four

fiscal quarters by (b) average common stockholders' equity, excluding AOCI. ROE - Net income is the most directly comparable U.S. GAAP

measure. ROE - Net income is calculated by dividing (a) net income for the prior four fiscal quarters by (b) average common stockholders' equity,

including AOCI. ROEs at the segment level and for consolidated, excluding Talcott Resolution, represent a levered view of ROE as debt financing

and related interest expense are attributed to the businesses consistent with the overall average debt to capitalization ratios of the consolidated

entity. The Company excludes AOCI in the calculation of ROE - core earnings 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. 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 “Core

Earnings” discussion above. Reconciliations of ROE Net Income (Loss) to ROE Core Earnings at a segment and consolidated level as well as on

a consolidated level, excluding Talcott Resolution and A&E, for the last twelve months ended September 30, 2017 and September 30, 2016 are

set forth below.


continued

Return on Equity - Last Twelve Months Ended Sep 30, 2017

P&C Group

Benefits

Mutual

Funds

Talcott

Resolution

Consolidated

excluding

Talcott

Consolidated

Net income (loss) 5.0% 11.6% 34.5% 3.4% 2.4% 2.7%

Less: Unlock benefit (charge), before tax 0.0% 0.0% 0.0% 0.6% 0.0% 0.2%


excluded from core earnings, before tax 0.3% 1.8% 0.0% (0.9%) (0.3%) (0.5%)

Less: Loss on reinsurance transactions, before tax (7.6%) 0.0% 0.0% 0.0% (5.7%) (3.6%)

Less: Pension settlement, before tax 0.0% 0.0% 0.0% 0.0% (6.6%) (4.2%)

Less: Income tax benefit (expense) 2.6% (0.6%) 0.0% (0.6%) 5.1% 3.0%

Less: Impact of AOCI, excluded from Core ROE (1.0%) (1.7%) (0.3%) (0.8%) 0.2% (0.4%)

Core earnings (losses) 10.7% 12.1% 34.8% 5.1% 9.7% 8.2%



continued

Return on Equity - Last Twelve Months Ended Sep 30, 2016

P&C Group

Benefits

Mutual

Funds

Talcott

Resolution

Consolidated

excluding

Talcott

Consolidated

excluding Talcott

and A&E

Consolidated

Net income (loss) 10.4% 9.3% 33.2% 2.1% 10.8% 12.2% 7.6%

Less: Unlock benefit (charge), before tax 0.0% 0.0% 0.0% 1.0% 0.0% 0.0% 0.4%


excluded from core earnings, before tax 0.0% 1.5% 0.0% (3.9%) 0.0% 0.2% (1.3%)

Less: Restructuring and other costs, before tax 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0%

Less: Loss on reinsurance transactions, before tax 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Less: Income tax benefit (expense) 0.5% (0.5%) 0.0% 1.0% 1.2% 1.2% 1.1%

Less: Impact of AOCI, excluded from Core ROE (1.1%) (1.4%) (0.2%) (0.7%) 0.3% 0.2% (0.2%)

Core earnings (losses) 11.0% 9.7% 33.4% 4.7% 9.1% 10.6% 7.6%


Underlying combined ratio: Represents the combined ratio before catastrophes and prior accident year development (PYD) (also referred to as

Current Accident Year (CAY) combined ratio before catastrophes) and is a non-GAAP financial measure. Combined ratio is the most directly

comparable GAAP measure. The combined ratio is the sum of the loss and loss adjustment expense ratio (also known as a loss ratio), the

expense ratio and the policyholder dividend ratio. This ratio measures the cost of losses and expenses for every $100 of earned premiums. A

combined ratio below 100 demonstrates a positive underwriting result. A combined ratio above 100 indicates a negative underwriting result. The

underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes.

The company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable

catastrophe losses and prior accident year loss and loss adjustment expense reserve. A reconciliation of the combined ratio to the underlying

combined ratio for individual reporting segments for the twelve months ended December 31, 2016, December 31, 2015 and December 31, 2014

as well as for the nine months ended September 30, 2017 and 2016 can be found in the tables set forth below.


Sep 30 2017 Sep 30 2016 Dec 31 2016 Dec 31 2015 Dec 31 2014

Commercial Lines

Combined ratio 99.8 93.3 92.8 92.6 93.4

Impact of catastrophes and PYD on combined ratio 8.1 3.6 3.4 2.7 1.9

Underlying combined ratio 91.7 89.8 89.4 90.0 91.5

Small Commercial

Combined ratio 94.6 90.2 90.3 89.0 88.4



Middle Market

Combined ratio 106.6 99.2 97.4 97.3 97.5



Specialty Commercial

Combined ratio 99.4 87.7 88.0 89.9 99.7

Impact of catastrophes and PYD on combined ratio 2.1 (6.6) (6.5) (8.9) (0.5)



continued



Sep 30

2017

Sep 30

2016

Dec 31

2016

Dec 31

2015

Dec 31

2014

Personal Lines

Combined ratio 101.5 104.2 104.8 97.0 95.5



Automobile

Combined ratio 101.5 109.5 111.6 99.4 98.4



Homeowners

Combined ratio 101.6 92.1 89.3 92.1 90.0




continued

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