HARTFORD FINANCIAL SERVICES GROUP INC

For the period ended Mar 31, 2024. Filed Apr 25, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed Apr 25, 2024

HIG$133.99-2.3%Stored close · as of Nov 6, 2026

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Contents

Group Benefits

|GROUP BENEFITS - RESULTS OF OPERATIONS

Operating Summary
	Three Months Ended March 31,
	2024	2023	Change
Premiums and other considerations	$1,639	$1,609	2%
Net investment income [1]	114	110	4%
Net realized gains [1]	1	5	(80)%
Total revenues	1,754	1,724	2%
Benefits, losses and loss adjustment expenses	1,204	1,210	—%
Amortization of DAC	9	9	—%
Insurance operating costs and other expenses	397	380	4%
Amortization of other intangible assets	10	10	—%
Total benefits, losses and expenses	1,620	1,609	1%
Income before income taxes	134	115	17%
Income tax expense [2]	26	23	13%
Net income	$108	$92	17%

[1]For discussion of consolidated investment results, see MD&A - Investment Results.

[2]For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Premiums and Other Considerations
	Three Months Ended March 31,
	2024	2023	Change
Fully insured – ongoing premiums	$1,585	$1,557	2%
Buyout premiums	—	1	(100)%
Fee income	54	51	6%
Total premiums and other considerations	$1,639	$1,609	2%
Fully insured ongoing sales	$444	$474	(6)%

Table of Contents	Index to MD&A

Ratios, Excluding Buyouts
	Three Months Ended March 31,
	2024	2023	Change
Group disability loss ratio	70.1%	70.4%	(0.3)
Group life loss ratio	82.6%	86.7%	(4.1)
Total loss ratio	73.5%	75.2%	(1.7)
Expense ratio [1]	25.4%	24.7%	0.7

[1]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.

Margin
	Three Months Ended March 31,
	2024	2023	Change
Net income margin	6.2%	5.3%	0.9
Adjustments to reconcile net income margin to core earnings margin:
Net realized gains, before tax	(0.1%)	(0.3%)	0.2
Integration and other non-recurring M&A costs, before tax	—%	0.1%	(0.1)
Income tax benefit	—%	0.1%	(0.1)
Core earnings margin	6.1%	5.2%	0.9

Net income increased primarily due to a lower loss ratio, higher fully insured ongoing premiums, and higher net investment income, partially offset by a higher expense ratio and lower net realized gains.

Insurance operating costs and other expenses were higher prim arily due to the effect of higher earned premium, including higher staffing costs and commissions and increased investments in technology.

Fully Insured Ongoing Premiums

[1]Other of $100 and $104 for the three months ended March 31, 2023 and 2024 respectively, which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.

Fully insured ongoing premiums increased over prior year and included an increase in exposure on existing accounts, new business sales, and lower persistency compared to the prior year period.

Fully insured ongoing sales decreased compared to prior year driven by lower group life sales, partially offset by an increase in group disability sales.

Table of Contents	Index to MD&A

Ratios

Loss ratio improved 1.7 points compared to the prior year period reflecting lower group life and group disability loss ratios. The group life loss ratio decreased 4.1 points driven by a lower level of mortality compared to the prior year period. The group disability loss ratio decreased 0.3 points due to favorable long-term disability claim recoveries, largely offset by higher incidence in paid family leave and short-term disability products.

Expense ratio increased in 2024 driven by higher staffing costs, increased investments in technology, and higher commission expense, partially offset by the effects of higher earned premium.

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