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 $22 and $21 for the three months ended September 30, 2024 and 2023, respectively, and $66 and $64 for the nine months ended September 30, 2024 and 2023, respectively. Includes servicing expenses of $18 and $17 for the three months ended September 30, 2024 and 2023, respectively, and $51 and $47 for the nine months ended September 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 Income changed to a net gain for both the three and nine months ended September 30, 2024 compared to a net loss for the prior year periods, largely driven by improved underwriting results and an increase in net investment income.

Underwriting Loss

Underwriting loss decreased for the three and nine months ended September 30, 2024 driven by a decrease in the CAY loss and LAE ratio before catastrophes, the effect of an increase in earned premium due to renewal written price increases, and a change from unfavorable to favorable prior accident year development, partially offset by an increase in current accident year catastrophe losses, and an increase in underwriting expenses.

Expense ratio increased in the three month period primarily due to an increase in direct marketing costs, higher commissions, and higher incentive compensation and benefits costs, partially offset by the impact of higher earned premium driven by earned pricing increases. For the nine month period, the increase was primarily due to higher commissions, higher direct marketing costs, and higher incentive compensation and benefits costs, partially offset by the impact of higher earned premium.

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Written Premiums

Earned premiums increased in both the three and nine 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 nine 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 nine month periods, primarily in response to recent elevated loss cost trends as well as higher insured values in homeowners.

Policy count retention decreased both for automobile and for homeowners in the three month period, and decreased for automobile and was stable for homeowners in the nine month period, in response to renewal written pricing increases.

Effective Policy count retention decreased for automobile and was stable for homeowners in the three month period, and decreased both for automobile and homeowners in the nine month period, in response to renewal written pricing increases.

Policies in-force as of September 30, 2024 declined since September 30, 2023 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 in automobile and homeowners for both the three and nine month periods. The decrease in automobile was primarily due to the impact of earned pricing increases as well as lower physical damage claim frequency, partially offset by higher automobile claim severities. The automobile physical damage claim severity trend has moderated from the prior year. The automobile liability severity increases continue to recognize the inflationary effects and higher attorney representation rates on bodily injury claims. For homeowners, the decrease in the CAY loss and LAE ratio before catastrophes was primarily due to the impact of earned pricing increases and lower claim frequency, partially offset by higher claim severities. Contributing to the higher homeowners severity was the effect of higher rebuilding costs.

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

Current accident year catastrophe losses increased for both the three and nine months ended September 30, 2024, compared to the prior year. CAY catastrophe losses for the three months ended September 30, 2024 included losses from hurricanes and tropical storms, primarily in the Southeast region, including a loss of $49 for Hurricane Helene, and to a lesser extent, tornado, wind and hail events, mainly in the Midwest, Mountain West and Northeast regions. CAY catastrophe losses for the nine months ended September 30, 2024 included losses from tornado, wind and hail events in several regions of the United States, and to a lesser extent, from hurricanes and tropical storms primarily in the Southeast region. CAY catastrophe losses for the three months ended September 30, 2023 included tornado, wind and hail events across several regions of the United States, and to a lesser extent, wildfire events and hurricanes and tropical storms. The nine month period also included losses from winter storms primarily on the East and West coasts.

Prior accident year development was favorable for the three and nine months ended September 30, 2024, primarily driven by lower estimated severity on automobile physical damage and homeowners, and for the nine month period, automobile liability. Prior accident year development was an unfavorable $1 in the three months ended September 30, 2023. Net unfavorable prior accident year development in the nine months ended September 30, 2023 was primarily driven by automobile physical damage.