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Press Release: The Hartford Announces Fourth -4-

· 02/04/2021 16:15
THE HARTFORD FINANCIAL SERVICES GROUP, INC. CONSOLIDATING INCOME STATEMENTS Three Months Ended December 31, 2020 ($ in millions) ===================================================================================================================== P&C Commercial Personal Other Group Hartford Lines Lines Ops Benefits Funds Corporate Consolidated =================== ============== ============ ===== ========== ============ ============= ================== Earned premiums $ 2,237 $ 761 $ -- $ 1,318 $ -- $ -- $ 4,316 Fee income 9 8 -- 43 265 11 336 Net investment income 363 47 15 124 1 6 556 Other revenue (loss) 1 18 -- -- -- (1) 18 Net realized capital gains 45 7 2 18 6 24 102 ------------------- ---------- -------- ---- --------- ------- --- -------- --- ---------- ---- Total revenues 2,655 841 17 1,503 272 40 5,328 Benefits, losses, and loss adjustment expenses 1,332 411 243 1,092 -- 2 3,080 Amortization of DAC 346 59 -- 11 3 -- 419 Insurance operating costs and other expenses 388 158 2 317 204 17 1,086 Restructuring and other costs -- -- -- -- -- 17 17 Interest expense -- -- -- -- -- 57 57 Amortization of other intangible assets 6 1 -- 10 -- -- 17 ------------------- ---------- -------- ---- --------- ------- --- -------- --- ---------- ---- Total benefits, losses and expenses 2,072 629 245 1,430 207 93 4,676 Income (loss) before income taxes 583 212 (228) 73 65 (53) 652 Income tax expense (benefit) 105 42 (48) 14 14 (12) 115 ------------------- ---------- -------- ---- --------- ------- --- -------- ---------- ---- Net income (loss) 478 170 (180) 59 51 (41) 537 Preferred stock dividends -- -- -- -- -- 5 5 ------------------- ---------- -------- ---- --------- ------- --- -------- --- ---------- ---- Net income (loss) available to common stockholders 478 170 (180) 59 51 (46) 532 Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses) Net realized capital gains, excluded from core earnings, before tax (46) (6) (2) (17) (6) (24) (101) Restructuring and other costs -- -- -- -- -- 17 17 Change in deferred gain on retroactive reinsurance, before tax 5 -- 210 -- -- -- 215 Integration and transaction costs associated with an acquired business, before tax 8 -- -- 3 -- -- 11 Income tax expense (benefit) (1) -- (44) 4 1 2 (38) ------------------- ---------- -------- ---- --------- ------- --- -------- --- ---------- --- Core earnings (losses) $ 444 $ 164 $(16) $ 49 $ 46 $ (51) $ 636 ------------------- ------ ---- --- ----- --- --- ---- ------ ---- THE HARTFORD FINANCIAL SERVICES GROUP, INC. CONSOLIDATING INCOME STATEMENTS Three Months Ended December 31, 2019 ($ in millions) ======================================================================================================================= P&C Commercial Personal Other Group Hartford Lines Lines Ops Benefits Funds Corporate Consolidated =================== ============== ============ ======= ========== ============ ============= ================== Earned premiums $ 2,276 $ 795 $ 2 $ 1,345 $ -- $ 5 $ 4,423 Fee income 9 9 -- 45 256 12 331 Net investment income 298 45 20 123 2 15 503 Other revenue -- 18 -- -- -- 23 41 Net realized capital gains 42 7 3 8 2 1 63 ------------------- ---------- -------- ------ --------- ------- --- -------- --- ---------- ---- Total revenues 2,625 874 25 1,521 260 56 5,361 Benefits, losses, and loss adjustment expenses 1,413 548 12 957 -- 9 2,939 Amortization of DAC 356 65 -- 13 3 1 438 Insurance operating costs and other expenses 479 177 3 343 206 16 1,224 Interest expense -- -- -- -- -- 65 65 Amortization of other intangible assets 7 2 -- 10 -- -- 19 ------------------- ---------- -------- ------ --------- ------- --- -------- --- ---------- ---- Total benefits, losses and expenses 2,255 792 15 1,323 209 91 4,685

Income from LPs was $152 million, before tax, in fourth quarter 2020, increasing from $51 million, before tax, in fourth quarter 2019, mostly driven by higher private equity valuations and distributions and the sale of two underlying real estate properties. Income from LPs, including from private equity and other funds, is generally reported on a three-month lag.

Total invested assets of $57 billion rose 7% from Dec. 31, 2019, due to increased book value and an increase in valuations as a result of a decline in interest rates.

CONFERENCE CALL

The Hartford will discuss its fourth quarter and full year 2020 financial results on a webcast at 9 a.m. EST on Friday, Feb. 5, 2021. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for Dec. 31, 2020, and the fourth quarter 2020 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

About The Hartford

The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at https://www.thehartford.com. Follow us on Twitter at https://twitter.com/thehartford_pr.

The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, Connecticut. For additional details, please read https://www.thehartford.com/legal-notice.

HIG-F

From time to time, The Hartford may use its website and/or social media outlets, such as Twitter and Facebook, to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at https://ir.thehartford.com, Twitter account at www.twitter.com/TheHartford_pr and Facebook at https://facebook.com/thehartford. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at https://ir.thehartford.com.

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February 04, 2021 16:15 ET (21:15 GMT)