HARTFORD FINANCIAL SERVICES GROUP INC

For the period ended Dec 31, 2023. Filed Feb 23, 2024.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 23, 2024

HIG$134.86+0.6%Stored close · as of Nov 9, 2026

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Contents

Hartford Funds

|HARTFORD FUNDS - RESULTS OF OPERATIONS

	2023	2022	2021	Increase (Decrease) From 2022 to 2023	Increase (Decrease) From 2021 to 2022
Fee income and other revenue	$973	$1,044	$1,189	(7%)	(12%)
Net investment income	17	9	5	89%	80%
Net realized gains (losses)	10	(24)	4	NM	NM
Total revenues	1,000	1,029	1,198	(3%)	(14%)
Operating costs and other expenses	781	826	925	(5%)	(11%)
Total benefits, losses and expenses	781	826	925	(5%)	(11%)
Income before income taxes	219	203	273	8%	(26%)
Income tax expense [1]	45	41	56	10%	(27%)
Net income	$174	$162	$217	7%	(25%)
Daily average Hartford Funds AUM	$127,019	$135,124	$151,347	(6%)	(11%)
ROA [2]	13.7	12.0	14.3	1.7	(2.3)
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax	(0.8)	1.7	(0.3)	(2.5)	2.0
Effect of income tax expense (benefit)	0.1	(0.4)	0.1	0.5	(0.5)
ROA, core earnings [2]	13.0	13.3	14.1	(0.3)	(0.8)

[1] For discussion of income taxes, see Note 17 - Income Taxes of Notes to Consolidated Financial Statements.

[2] Represents annualized earnings divided by a daily average of assets under management, as measured in basis points.

Table of Contents	Index to MD&A

Hartford Funds Segment AUM

	2023	2022	2021	Increase (Decrease) From 2022 to 2023	Increase (Decrease) From 2021 to 2022
Mutual Fund and ETF AUM - beginning of period	$112,472	$142,632	$124,627	(21%)	14%
Sales - Mutual Fund	20,960	29,833	32,399	(30%)	(8%)
Redemptions - Mutual Fund	(28,606)	(37,981)	(28,653)	25%	(33%)
Net flows - ETF	619	197	121	NM	63%
Net Flows - Mutual Fund and ETF	(7,027)	(7,951)	3,867	12%	NM
Change in market value and other	13,871	(22,209)	14,138	NM	NM
Mutual Fund and ETF AUM - end of period	119,316	112,472	142,632	6%	(21%)
Third-party life and annuity separate account AUM	11,709	11,635	15,263	1%	(24%)
Hartford Funds AUM - end of period	$131,025	$124,107	$157,895	6%	(21%)

Mutual Fund and ETF AUM by Asset Class

	2023	2022	2021	Increase (Decrease) From 2022 to 2023	Increase (Decrease) From 2021 to 2022
Equity - Mutual Funds	$79,352	$73,782	$95,703	8%	(23%)
Fixed Income - Mutual Funds	16,773	15,861	20,113	6%	(21%)
Multi-Strategy Investments - Mutual Funds [1]	19,292	19,975	23,610	(3%)	(15%)
Equity - ETF	2,141	1,805	2,230	19%	(19%)
Fixed Income - ETF	1,758	1,049	976	68%	7%
Mutual Fund and ETF AUM	$119,316	$112,472	$142,632	6%	(21%)

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

Net income increasedfor the year ended December 31, 2023, primarily driven by net realized gains compared to net realized losses in 2022 and higher net investment income, partially offset by a decrease in fee income net of variable expenses driven by a decrease in daily average AUM.

Hartford Funds AUM

December 31, 2023 compared to December 31, 2022

Hartford Funds AUMincreased primarily due to an increase in market values, partly offset by net outflows over the previous twelve months. Net outflows were $7.0 billion for the year ended December 31, 2023 compared to net outflows of $8.0 billion for the year ended December 31, 2022.

Table of Contents	Index to MD&A

Assuming continued growth in equity markets in 2024, the Company expects net income for Hartford Funds to increase from 2023 to 2024.

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.