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Press Release: The Hartford Announces Fourth -5-

· 02/04/2021 16:15
Income (loss) before income taxes 370 82 10 198 51 (35) 676 Income tax expense (benefit) 68 16 1 39 10 (6) 128 ------------------- ---------- -------- ------ --------- ------- --- -------- ---------- ---- Income (loss) from continuing operations, net of tax 302 66 9 159 41 (29) 548 Net income (loss) 302 66 9 159 41 (29) 548 Preferred stock dividends -- -- -- -- -- 5 5 ------------------- ---------- -------- ------ --------- ------- --- -------- --- ---------- ---- Net income (loss) available to common stockholders 302 66 9 159 41 (34) 543 Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses) Net realized capital gains, excluded from core earnings, before tax (42) (7) (3) (7) (1) (2) (62) Change in deferred gain on retroactive reinsurance, before tax 16 -- -- -- -- -- 16 Integration and transaction costs, before tax 12 -- -- 8 -- 1 21 Income tax expense (benefit) 4 2 1 1 -- (4) 4 ------------------- ---------- -------- ------ --------- ------- --- -------- ---------- ---- Core earnings (losses) $ 292 $ 61 $ 7 $ 161 $ 40 $ (39) $ 522 ------------------- ------ ---- ----- --- --- ---- ------ ---- THE HARTFORD FINANCIAL SERVICES GROUP, INC. CONSOLIDATING INCOME STATEMENTS Year Ended December 31, 2020 ($ in millions) =================================================================================================================== P&C Commercial Personal Other Group Hartford Lines Lines Ops Benefits Funds Corporate Consolidated =================== ============== ========== ======= ========== ========== ============= ================== Earned premiums $ 8,910 $ 3,008 $ -- $ 5,361 $ -- $ 9 $ 17,288 Fee income 30 34 -- 175 989 49 1,277 Net investment income 1,160 157 55 448 4 22 1,846 Other revenue 1 81 -- -- -- 44 126 Net realized capital gains (losses) (60) (5) (1) 22 8 22 (14) ------------------- ---------- --------- ------ --------- --------- --------- ----------- Total revenues 10,041 3,275 54 6,006 1,001 146 20,523 Benefits, losses, and loss adjustment expenses 5,929 1,466 258 4,137 -- 15 11,805 Amortization of DAC 1,397 244 -- 50 14 1 1,706 Insurance operating costs and other expenses 1,655 659 10 1,308 773 75 4,480 Restructuring and other costs -- -- -- -- -- 104 104 Interest expense -- -- -- -- -- 236 236 Amortization of other intangible assets 28 4 -- 40 -- -- 72 ------------------- ---------- --------- ------ --------- --------- --------- ----------- --- Total benefits and expenses 9,009 2,373 268 5,535 787 431 18,403 Income (loss) before income taxes 1,032 902 (214) 471 214 (285) 2,120 Income tax expense (benefit) 176 184 (46) 88 44 (63) 383 ------------------- ---------- --------- ------ --------- --------- --------- ----------- --- Net income (loss) 856 718 (168) 383 170 (222) 1,737 Preferred stock dividends -- -- -- -- -- 21 21 ------------------- ---------- --------- ------ --------- --------- --------- ----------- --- Net Income available to common stockholders 856 718 (168) 383 170 (243) 1,716 Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses) Net realized capital losses (gains), excluded from core earnings, before tax 61 6 1 (20) (8) (22) 18 Restructuring costs, before tax -- -- -- -- -- 104 104 Integration and transaction costs, before tax 33 -- -- 18 -- -- 51 Change in deferred gain on retroactive reinsurance, before tax 102 -- 210 -- -- -- 312 Income tax expense (benefit) (54) (2) (44) 1 1 (17) (115) ------------------- ---------- --------- ------ --------- --------- --------- ----------- Core earnings (losses) $ 998 $ 722 $ (1) $ 382 $ 163 $ (178) $ 2,086 ------------------- ------ ----- ----- --- ---- ----- ======= === THE HARTFORD FINANCIAL SERVICES GROUP, INC. CONSOLIDATING INCOME STATEMENTS Year Ended December 31, 2019 ($ in millions) =========================================================================================================== P&C Commercial Personal Other Group Hartford Lines Lines Ops Benefits Funds Corporate Consolidated =================== ============ ========== ===== ========== ========== =========== ================ Earned premiums 8,290 3,198 2 5,423 -- 10 16,923 Fee income 35 37 -- 180 999 50 1,301 Net investment income 1,129 179 84 486 7 66 1,951 Other revenue 1 83 -- -- -- 86 170 Net realized capital gains (losses) 271 43 20 34 5 22 395 ------------------- ------- --- ------ ---- ------ ------ ------ --- -------- ---- Total revenues 9,726 3,540 106 6,123 1,011 234 20,740 Benefits, losses, and loss adjustment expenses 5,192 2,185 21 4,055 -- 19 11,472 Amortization of DAC 1,296 259 -- 54 12 1 1,622 Insurance operating costs and other expenses 1,667 696 12 1,311 813 82 4,580 Loss on extinguishment of debt -- -- -- -- -- 90 90 Loss on reinsurance transaction 91 -- -- -- -- -- 91 Interest expense -- -- -- -- -- 259 259 Amortization of other intangible assets 18 6 -- 41 -- 1 66 ------------------- ------- --- ------ ---- ------ ------ ------ --- -------- ---- Total benefits and expenses 8,264 3,146 33 5,461 825 451 18,180 Income (loss) before income taxes 1,462 394 73 662 186 (217) 2,560 Income tax expense (benefit) 270 76 12 126 37 (46) 475

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