HARTFORD FINANCIAL SERVICES GROUP INC

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| PROPERTY & CASUALTY OTHER OPERATIONS - RESULTS OF OPERATIONS

[1]For discussion of prior accident year development, see MD&A - Critical Accounting Estimates, Property and Casualty Insurance Product Reserves, Net of Reinsurance and Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements.

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

Net Loss

Net loss decreased primarily due to a lower underwriting loss, lower net realized losses, and an increase in net investment income.

Underwriting loss decreased, primarily due to lower unfavorable prior accident year reserve development in the 2023 period.

Unfavorable prior accident year reserve development for the year ended December 31, 2023 was primarily due to a $194 increase in A&E reserves and a $23 increase in related ULAE

reserves. Unfavorable prior accident year development in 2022 included a $229 increase in A&E reserves, and reallocating a portion of general liability reserves from Commercial Lines to P&C Other Operations related to sexual molestation and sexual abuse claims. The reallocated reserves relate to excess liability policies written by a legal entity in P&C Other Operations for amounts owed to claimants under the agreement in principle reached with the BSA on sexual molestation and sexual abuse claims in third quarter 2021. In total for the Company, there was no change in the liability for settlement amounts owed on the BSA claims in the 2022 period.

Before NICO reinsurance in 2023, A&E reserves were increased by$194 in P&C Other Operations, including$156 for asbestos and$38 for environmental. Cumulative adverse A&E reserve development ceded to NICO for both ongoing operations and P&C Other Operations totaled$1,438 through December 31, 2023 and since this amount exceeds ceded premium paid for the A&E ADC of $650, the Company has recognized a$788 deferred gain on retroactive reinsurance as of December 31, 2023, within other liabilities, including a$194 increase in deferred gain in 2023 recognized within P&C Other Operations.

Asbestos reserves prior accident year development in 2023 before NICO reinsurance of $156 was primarily due to an increase in the Company’s share of liability due to insolvencies and cost sharing agreements, an increase in claim settlement rates, as well as higher defense costs.

Environmental reserves prior accident year development in 2023 before NICO reinsurance of $38 was primarily due to higher severity on recently emerged accounts, higher environmental site cleanup and monitoring costs, including increased estimates of liability for PFAS exposures, and higher legal expenses.