HARTFORD FINANCIAL SERVICES GROUP INC

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|PERSONAL LINES - RESULTS OF OPERATIONS

[1]For additional information on current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance and Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

[3]Includes servicing revenues of $25 and $24 for the three months ended June 30, 2024 and 2023, respectively, and $44 and $43 for the six months ended June 30, 2024 and 2023, respectively. Includes servicing expenses of $18 and $16 for the three months ended June 30, 2024 and 2023, respectively, and $33 and $30 for the six months ended June 30, 2024 and 2023, respectively.

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

Written and Earned Premiums

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Premium Measures

Underwriting Ratios

Product Combined Ratios

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Net Income (Loss)

Net loss decreased for the three months ended June 30, 2024, largely driven by improved underwriting results and an increase in net investment income. Net income changed to a net gain for the six months ended June 30, 2024 compared to a net loss for the prior year period, largely driven by improved underwriting results and an increase in net investment income.

Underwriting Loss

Underwriting loss decreased for the three and six months ended June 30, 2024 driven by the effect of an increase in earned premium due to renewal written price increases and a decrease in the CAY loss and LAE ratio before catastrophes, partially offset by an increase in current accident year catastrophe losses and an increase in direct marketing costs. The three month period also benefited from an increase in favorable prior accident year development. The six month period benefited from a change from unfavorable to favorable prior accident year development.

Expense ratio increased in the three month period primarily due an increase in direct marketing costs, partially offset by the impact of higher earned premium driven by earned pricing increases. The expense ratio in the six month period decreased primarily due to the impact of higher earned premium driven by earned pricing increases, partially offset by an increase in direct marketing costs.

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Written Premiums

Earned premiums increased in both the three and six month periods due to higher written premium over the prior twelve months in both automobile and homeowners.

Written premiums increased in both the three and six month periods driven by the effect of written pricing increases and by an increase in new premium in both automobile and homeowners.

Renewal written pricing increases were higher for both automobile and homeowners in the three and six month periods, primarily in response to recent elevated loss cost trends as well as higher insured values in homeowners.

Policy count retention decreased in automobile, and was stable for homeowners for both the three and six month periods.

Effective Policy count retention decreased both for automobile and for homeowners in the three and six month periods in response to renewal written pricing increases.

Policies in-force declined for both automobile and homeowners, reflecting the level of new business in relation to non-renewed policies.

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Current Accident Year Loss and LAE Ratio before Catastrophes

Current accident year Loss and LAE ratio before catastrophes decreased both in automobile and in homeowners in both the three and six month periods. The decrease in automobile was primarily due to the impact of earned pricing increases, partially offset by an increase in automobile liability and physical damage claim severity, in line with expectations. The automobile severity increases continue to include the inflationary effects on bodily injury claims and automobile parts and repairs, and also include higher attorney representation rates for liability claims. For homeowners, the decrease in the CAY loss and LAE ratio before catastrophes was due to a decrease in frequency for both weather and non-weather claims, as well as the impact of earned pricing increases, partially offset by an increase in severity for both weather and non-weather claims. Contributing to the increase in homeowners severity was the effect of higher rebuilding costs due to inflation.

Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Current accident year catastrophe losses increased for both the three and six months ended June 30, 2024, compared to the prior year. Current accident year catastrophe losses for 2024 included tornado, wind and hail events, mainly in the Midwest and South regions, as well as winter storms in the Pacific and South regions. Current accident year catastrophe losses for the three months ended June 30, 2023 included tornado, wind and hail events across several regions of the United States, and for the six month period, included losses from winter storms primarily on the East and West coasts.

Prior accident year development was favorable for the three and six months ended June 30, 2024, primarily driven by lower estimated severity on automobile physical damage, automobile liability, and homeowners. Net favorable prior accident year development for the three months ended June 30, 2023 was primarily driven by a reduction in prior accident year catastrophes. Net unfavorable prior accident year development in the six month period was primarily driven by automobile physical damage.