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 reportable segment and corporate operating summaries within the MD&A.

Consolidated Results of Operations

Three months ended September 30, 2024 compared to the three months ended September 30, 2023

Net income available to common stockholders increased by $116, primarily driven by:

•Lower net realized losses of $77, before tax;

•Higher net investment income of $62, 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 and;

•A slight increase in the P&C underwriting gain of $5, before tax, driven by the effect of earned premium growth, a lower CAY loss and LAE ratio before catastrophes in Personal Lines and a higher level of favorable prior accident year reserve development, partially offset by higher CAY catastrophe losses, a higher CAY loss and LAE ratio before catastrophes in Commercial Lines, and a higher expense ratio.

•In Group Benefits, a higher expense ratio, a higher loss ratio on supplemental health products, and a higher group disability loss ratio, partially offset by a lower group life loss ratio and the effect of higher fully insured ongoing premiums.

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

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REVENUE

Earned premiums increased by $424 primarily due to:

•An increase in P&C reflecting a 10% increase in Commercial Lines and a 13% increase in Personal Lines.

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

–For Personal Lines, earned premium increased 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 persistency in excess of 90%, though slightly below the prior year periods.

Fee income increased primarily driven by higher daily average assets within Hartford Funds 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 and a higher level of invested assets, partially offset by a lower level of income on limited partnerships and other alternative investments.

Net realized losses improved primarily due to:

•Gains on interest rate derivatives in the 2024 period compared to losses in the 2023 period due to lower interest rates; and

•Valuation improvements on equity securities in the 2024 period compared to declines in the 2023 period.

•Higher net losses on sales of fixed maturities; and

•Losses on transactional foreign currency revaluation in the 2024 period compared to gains in the 2023 period.

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 $265 which was attributable to:

–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $209, before tax, primarily due to the effect of higher earned premiums and a slightly higher CAY loss and LAE ratio before catastrophes in Commercial Lines, partially offset by a lower CAY loss and LAE ratio before catastrophes in Personal Lines.

–An increase in CAY catastrophe losses of $63, before tax. Catastrophe losses in the 2024 period included losses from hurricanes, including a loss of $104 from Hurricane Helene, and tropical storms primarily in the Southeast and South regions, and to a lesser extent, tornado, wind and hail events primarily in the Midwest, Northeast and Mountain West regions. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States and, to a lesser extent, losses from hurricanes and tropical storms in the Southeast and West Coast.

–Net favorable prior accident year reserve development of $50, before tax, in P&C compared to $43 in the prior year 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 and Commercial Lines automobile liability. The 2024 period also included a benefit of $26 related to amortization of the Navigators ADC deferred gain. Prior accident year reserve development in the 2023 period was a net favorable $43, before tax, primarily driven by decreases in reserves related to workers’

Losses and LAE Incurred for Group Benefits

compensation and package business, partly offset by an increase in reserves for general liability.

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

•A slight increase in Group Benefits of $15, before tax, primarily driven by the effect of higher earned premiums, a higher loss ratio on supplemental health products, and a higher loss ratio on paid family and medical leave products, partially offset by lower group life mortality and a favorable change in the long-term disability recovery rate assumption.

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, including higher incentive compensation and benefits costs, partly in response to increased business volume; and

•Higher direct marketing costs in Personal Lines.

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.

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Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

Net income available to common stockholders increased by $525 primarily driven by:

•An increase in P&C underwriting gain of $250, before tax, driven by the effect of earned premium growth, a higher level of favorable prior accident year reserve development, and lower CAY loss and LAE ratio before catastrophes in Personal Lines, partially offset by higher CAY catastrophe losses;

•Higher net investment income of $202, 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;

•Lower net realized losses of $117, before tax; and

•In Group Benefits, a lower group life loss ratio and the effect of higher fully insured ongoing premiums, partially offset by a higher expense ratio, a higher loss ratio on supplemental health products, and a higher group disability loss ratio.

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

REVENUE

Earned premiums increased by $1,165, or 7%, primarily due to:

•An increase in P&C reflecting a 9% increase in Commercial Lines and a 12% increase in Personal Lines.

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

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

Net Investment Income

•An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.

Fee income increased, primarily due to a $33 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 increased primarily due to the impact of reinvesting at higher interest rates, a higher level of invested assets, and, to a lesser extent, ahigher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.

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Net realized losses improved primarily due to:

•Gains on interest rate derivatives in the 2024 period compared to losses in the 2023 period due to lower interest rates;

•No losses on credit derivatives in the 2024 period compared to losses in the 2023 period; and

•Valuation improvements on equity securities in the 2024 period compared to valuation declines and sales in the 2023 period.

•Higher net losses on sales of fixed maturities.

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

BENEFITS, LOSSES AND EXPENSES

Losses and LAE Incurred for P&C

Benefits, losses and loss adjustment expenses increased $490, due to:

•An increase in Property & Casualty of $509, which was attributable to:

–An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $555, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower CAY loss and LAE ratio in Personal Lines; and

–An increase in CAY catastrophe losses of $93, before tax. Catastrophe losses in the 2024 period included losses from tornado, wind and hail events across several regions of the United States, as well as losses from hurricanes and tropical storms mainly in the Southeast and South regions, and, to a lesser extent, from winter storms, mainly in the Pacific, Northeast, and South regions. Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, and losses from winter storms along the East and West Coasts.

Losses and LAE Incurred for Group Benefits

–Net favorable prior accident year reserve development of $221, before tax, in P&C compared to net favorable prior accident year reserve development in the 2023 period of $82. Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation, catastrophes, bond, Personal Lines automobile physical damage, homeowners, and Personal Lines automobile liability, partially offset by increases in reserves for general liability, Commercial Lines automobile liability, and assumed reinsurance. The 2024 period also included a benefit of $87 related to amortization of the Navigators ADC deferred gain. Prior accident year reserve development in the 2023 period was a net favorable $82, before tax, primarily driven by decreases in reserves related to workers' compensation and catastrophes, offset by increases in reserves for general liability, Personal Lines automobile physical damage, assumed reinsurance and bond.

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

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•A decrease in Group Benefits of $19, before tax, primarily driven by lower group life mortality, favorable long-term disability claim recoveries and incidence, and a favorable change in the long-term disability recovery rate assumption, partially offset by the effect of higher earned premiums and a higher loss ratio on paid family and medical leave 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, including higher incentive compensation and benefits costs, and commissions in Group Benefits, partly in response to increased business volume; and

•Higher direct marketing costs in Personal Lines.

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.