HARTFORD FINANCIAL SERVICES GROUP INC

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|GROUP BENEFITS - RESULTS OF OPERATIONS

[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.

[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.

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Net income increased in the three and nine months ended September 30, 2024, primarily due to a lower group life loss ratio and 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. In addition, the three months ended September 30, 2024, benefitted from no net realized gain or loss in the 2024 period compared to net realized losses in the 2023 period, while the nine month period benefitted from lower net realized losses in the 2024 period compared to the 2023 period.

Insurance operating costs and other expenses were higher for both the three and nine month periods, prim arily due to the effect of higher fully insured ongoing premium, including higher staffing costs and commissions, as well as higher incentive compensation and benefits costs.

Fully Insured Ongoing Premiums

[1]Other of $102 and $107 for the three months ended September 30, 2023 and 2024 respectively, and $304 and $318 for the nine months ended September 30, 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 in both the three and nine month periods over prior year and included an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.

Fully insured ongoing sales decreased in both the three and nine months periods compared to prior year driven by lower group life and group disability sales.

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Ratios

Loss ratio was flat in the three months ended September 30, 2024 compared to the prior year period driven by a lower group life loss ratio offset by a higher disability loss ratio, as well as a higher loss ratio on supplemental health products. The group life loss ratio decreased 2.7 points driven by lower mortality. The group disability loss ratio increased 0.6 points driven by a higher loss ratio on paid family and medical leave products, partially offset by a favorable change in the long-term disability recovery rate assumption of 2.2 points.

Total loss ratio improved 1.7 points in the nine months ended September 30, 2024 compared to the prior year period, primarily reflecting a lower group life loss ratio. The group life loss ratio decreased 5.4 points driven by a lower level of mortality. The group disability loss ratio was essentially flat driven by favorable long-term disability claim recoveries, incidence, and changes in the long-term disability recovery rate assumption of 0.7 points, offset by higher loss ratio on paid family and medical leave products.

Expense ratio increased for the three and nine month periods primarily due to the impact of higher staffing costs, including higher incentive compensation and benefits costs, and increased investments in technology.