HARTFORD FINANCIAL SERVICES GROUP INC

The Consolidated Results of Operations should be read in conjunction with the Company's Condensed Consolidated Financial Statements and the related Notes as well as with the segment operating results sections of MD&A.

Consolidated Results of Operations

Net income available to common stockholders increased by $218, primarily driven by:

•An increase in P&C underwriting gain of $128, before tax, driven by the effect of earned premium growth, including a lower expense ratio, favorable prior accident year reserve development, and lower current accident year catastrophe losses;

•Higher net investment income of $78, before tax, primarily driven by a higher yield on fixed maturities and a higher level of invested assets, partially offset by lower income from limited partnerships and other alternative investments;

•A $35, before tax, change to net realized gains in the 2024 period from net realized losses in the prior year period; and

•In Group Benefits, improved group life and group disability loss ratios and the effect of higher fully insured ongoing premiums, partially offset by a higher expense ratio.

For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.

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REVENUE

Earned premiums increased $383 primarily due to:

•An increase in P&C reflecting a 10% increase in both Commercial Lines and Personal Lines.

–Contributing to the increase in Commercial Lines was the effect of an increase in new business across all lines of business, earned pricing increases, and higher insured exposures, principally in workers’ compensation and property lines.

–For Personal Lines, earned premium was up primarily due to the effect of earned pricing increases, partially offset by non-renewals.

•An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and lower persistency compared to the prior year period.

Fee income increased primarily due to a $9 increase in Hartford Funds driven by higher daily average assets resulting from an increase in equity market levels, partially offset by net outflows over the preceding twelve months.

Net Investment Income

Net investment income increased primarily due to the impact of reinvesting at higher interest rates, a higher level of invested assets, and a higher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.

Net realized gains (losses)changed to a gain in the 2024 period from a loss in the 2023 period primarily due to:

•Fewer net losses on sales of fixed maturities in the 2024 period; and

•Appreciation in value of fixed maturities, at fair value using the fair value option ("FVO securities") in the 2024 period compared to depreciation in the 2023 period due to changes in credit spreads.

For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.

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BENEFITS, LOSSES AND EXPENSES

Losses and LAE Incurred for P&C

Benefits, losses and loss adjustment expenses increased due to:

•An increase in Property & Casualty of $135 which was attributable to:

–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $215, before tax, primarily due to the effect of higher earned premiums in all P&C lines of business;

Partially offset by:

–A decrease in current accident year catastrophe losses of $24, before tax. Catastrophe losses in the 2024 period included losses from tornado, wind and hail, mainly in the Midwest, South and mid-Atlantic regions, as well as winter storms, primarily in the Northeast, Pacific and South regions. Catastrophe losses in the 2023 period included losses from winter storms along the East and West Coasts and tornado, wind and hail events across several regions of the United States; and

–Net favorable prior accident year reserve development of $56, before tax, in P&C compared to no net prior accident year reserve development in the 2023 period. Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation and Personal Lines automobile physical damage, partially offset by increases in reserves for general liability, assumed reinsurance, and marine. The 2024 period also included a benefit of $24 related to amortization of the Navigators ADC deferred gain. For the 2023 period, prior year reserve development primarily included a decrease in reserves related to workers’ compensation and package business, offset by increases in reserves for Personal Lines automobile physical damage,

Losses and LAE Incurred for Group Benefits

general liability, and uncollectible reinsurance. For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

•A decrease in Group Benefits of $6, before tax, primarily driven by the impact of lower mortality levels and favorable long-term disability claim recoveries, partially offset by the effect of an increase in earned premiums and higher incidence on paid family leave and short-term disability products.

Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.

Insurance operating costs and other expenses increased due to:

•Increased expense from higher staffing costs and commissions in Commercial Lines and Group Benefits, partly in response to increased business volume;

•Higher direct marketing costs in Personal Lines as marketing resumed at normalized levels; and

•Investments in technology to support business growth and innovation initiatives.

Income tax expense increased primarily due to an increase in income before tax. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.