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Part I – Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – InsuranceNewsNet

Item 2.

MANAGEMENT REPORT ON THE FINANCIAL SITUATION AND RESULTS OF
OPERATIONS

(Amounts in millions of dollars, except for per share data, unless otherwise indicated)

The Hartford provides projections and other forward-looking information in the
following discussions, which contain many forward-looking statements,
particularly relating to the Company's future financial performance. These
forward-looking statements are estimates based on information currently
available to the Company, are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and are subject to the
cautionary statements set forth on pages 4 and 5 of this Form 10-Q. Actual
results are likely to differ, and in the past have differed, materially from
those forecast by the Company, depending on the outcome of various factors,
including, but not limited to, those set forth in the following discussion; Part
I, Item 1A, Risk Factors in The Hartford's 2021 Form 10-K Annual Report; and our
other filings with the Securities and Exchange Commission. The Hartford
undertakes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or otherwise.

On December 29, 2021the Company finalized the sale of Navigators Fund
(Europe) SA
a Belgium holding company and its subsidiaries, Bracht, Deckers
& Mackelbert S.A.
and Contintale Insurance Contintale Verzekeringen NV,
collectively referred to as “Continental Europe Operations”.

Certain reclassifications have been made to historical financial information
presented in Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") to conform to the current period presentation.

the Hartford defines increases or decreases greater than or equal to 200% as
“NM” or not significant.

INDEX

Description                                    Page
  Key Performance Measures and Ratios             49
  The Hartford's Operations                       55
  Financial Highlights                            57
  Consolidated Results of     Operations          58
  Investment Results                              61
  Critical Accounting Estimates                   63
  Commercial Lines                                69
  Personal Lines                                  74
  Property & Casualty Other Operations            78
  Group Benefits                                  79
  Hartford Funds                                  81
  Corporate                                       83
  Enterprise Risk Management                      84
  Capital Resources and Liquidity                 94
  Impact of New Accounting Standards             101

Throughout the MD&A, we use certain terms and abbreviations most often
used are summarized in the Acronyms section.

KEY PERFORMANCE INDICATORS AND RATIOS

The Company considers the measures and ratios in the following discussion to be
key performance indicators for its businesses. Management believes that these
ratios and measures are useful in understanding the underlying trends in The
Hartford's businesses. However, these key performance indicators should only be
used in conjunction with, and not in lieu of, the results presented in the
segment discussions that follow in this MD&A. These ratios and measures may not
be comparable to other performance measures used by the Company's competitors.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Definitions of Non-GAAP and Other Measures and Ratios

Assets Under Management ("AUM")- Include mutual fund and exchange-traded funds
("ETF") assets. AUM is a measure used by the Company's Hartford Funds segment
because a significant portion of the segments's revenues and expenses are based
upon asset values. These revenues and expenses increase or decrease with a rise
or fall in AUM whether caused by changes in the market or through net flows.

Book Value per Diluted Share excluding accumulated other comprehensive income
("AOCI")- This is a non-GAAP per share measure that is calculated by dividing
(a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares
outstanding and dilutive potential common shares. The Company provides this
measure to enable investors to analyze the amount of the Company's net worth
that is primarily attributable to the Company's business operations. The Company
believes that excluding AOCI from the numerator is useful to investors because
it eliminates the effect of items that can fluctuate significantly from period
to period, primarily based on changes in interest rates. Book value per diluted
share is the most directly comparable U.S. GAAP measure.

Combined Ratio- The sum of the loss and loss adjustment expense ratio, the
expense ratio and the policyholder dividend ratio. This ratio is a relative
measurement that describes the related cost of losses and expenses for every
$100 of earned premiums. A combined ratio below 100 demonstrates underwriting
profit; a combined ratio above 100 demonstrates underwriting losses.

Core Earnings- The Hartford uses the non-GAAP measure core earnings as an
important measure of the Company's operating performance. The Hartford believes
that core earnings provides investors with a valuable measure of the performance
of the Company's ongoing businesses because it reveals trends in our insurance
and financial services businesses that may be obscured by including the net
effect of certain items. Therefore, the following items are excluded from core
earnings:

•Certain realized gains and losses - Some realized gains and losses are
primarily driven by investment decisions and external economic developments, the
nature and timing of which are unrelated to the insurance and underwriting
aspects of our business. Accordingly, core earnings excludes the effect of all
realized gains and losses that tend to be highly variable from period to period
based on capital market conditions. The Hartford believes, however, that some
realized gains and losses are integrally related to our insurance operations, so
core earnings includes net realized gains and losses such as net periodic
settlements on credit derivatives. These net realized gains and losses are
directly related to an offsetting item included in the income statement such as
net investment income.

• Restructuring and other costs – Costs incurred as part of a restructuring plan
are not recurring operating expenses of the business.

•Loss on extinguishment of debt - Largely consisting of make-whole payments or
tender premiums upon paying debt off before maturity, these losses are not a
recurring operating expense of the business.

•Gains and losses on reinsurance transactions - Gains or losses on reinsurance,
such as those entered into upon sale of a business or to reinsure loss reserves,
are not a recurring operating expense of the business.

•Integration and other non-recurring M&A costs - These costs, including
transaction costs incurred in connection with an acquired business, are incurred
over a short period of time and do not represent an ongoing operating expense of
the business.

•Change in loss reserves upon acquisition of a business - These changes in loss
reserves are excluded from core earnings because such changes could obscure the
ability to compare results in periods after the acquisition to results of
periods prior to the acquisition.

•Deferred gain resulting from retroactive reinsurance and subsequent changes in
the deferred gain - Retroactive reinsurance agreements economically transfer
risk to the reinsurers and including the full benefit from retroactive
reinsurance in core earnings provides greater insight into the economics of the
business.

•Change in valuation allowance on deferred taxes related to non-core components
of before tax income - These changes in valuation allowances are excluded from
core earnings because they relate to non-core components of before tax income,
such as tax attributes like capital loss carryforwards.

•Results of discontinued operations - These results are excluded from core
earnings for businesses sold or held for sale because such results could obscure
the ability to compare period over period results for our ongoing businesses.

In addition to the above components of net income available to common
stockholders that are excluded from core earnings, preferred stock dividends
declared, which are excluded from net income available to common stockholders,
are included in the determination of core earnings. Preferred stock dividends
are a cost of financing more akin to interest expense on debt and are expected
to be a recurring expense as long as the preferred stock is outstanding.

Net income (loss) and net income (loss) available to common stockholders are the
most directly comparable U.S. GAAP measures to core earnings. Core earnings
should not be considered as a substitute for net income (loss) or net income
(loss) available to common stockholders and does not reflect the overall
profitability of the Company's business. Therefore, The Hartford believes that
it is useful for investors to evaluate net income (loss), net income (loss)
available to common stockholders, and core earnings when reviewing the Company's
performance.
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                             Reconciliation of Net Income to Core Earnings
                                                                                  Three Months Ended
                                                                                       March 31,
                                                                                    2022        2021
Net income                                                                      $     445    $   249
Preferred stock dividends                                                               5          5
Net income available to common stockholders                                           440        244
Adjustments to reconcile net income available to common stockholders to core
earnings:
Net realized losses (gains) excluded from core earnings, before tax                   146        (77)
Restructuring and other costs, before tax                                               5         11

Integration and other non-recurring M&A costs, before tax                               5          9

Change in deferred gain on retroactive reinsurance, before tax                          -          6
Income tax expense (benefit) [1]                                                      (35)        10

Core earnings                                                                   $     561    $   203

[1] Represents primarily federal income tax expense (benefit) related to
before tax items not included in basic income and includes the effect of
changes in net deferred taxes due to changes in the tax rates in force.

Core Earnings Margin- The Hartford uses the non-GAAP measure core earnings
margin to evaluate, and believes it is an important measure of, the Group
Benefits segment's operating performance. Core earnings margin is calculated by
dividing core earnings by revenues, excluding buyouts and realized gains
(losses). Net income margin, calculated by dividing net income by revenues, is
the most directly comparable U.S. GAAP measure. The Company believes that core
earnings margin provides investors with a valuable measure of the performance of
Group Benefits because it reveals trends in the business that may be obscured by
the effect of buyouts and realized gains (losses) as well as other items
excluded in the calculation of core earnings. Core earnings margin should not be
considered as a substitute for net income margin and does not reflect the
overall profitability of Group Benefits. Therefore, the Company believes it is
important for investors to evaluate both core earnings margin and net income
margin when reviewing performance. A reconciliation of net income margin to core
earnings margin is set forth in the Results of Operations section within MD&A -
Group Benefits.

Current Accident Year Catastrophe Ratio- A component of the loss and loss
adjustment expense ratio, represents the ratio of catastrophe losses incurred in
the current accident year (net of reinsurance) to earned premiums. For U.S.
events, a catastrophe is an event that causes $25 or more in industry insured
property losses and affects a significant number of property and casualty
policyholders and insurers, as defined by the Property Claim Services office of
Verisk. For international events, the Company's approach is similar, informed,
in part, by how Lloyd's of London defines major losses. Lloyd's of London is an
insurance market-place operating worldwide ("Lloyd's"). Lloyd's does not
underwrite risks. The Company accepts risks as the sole member of Lloyd's
Syndicate 1221 ("Lloyd's Syndicate"). The current accident year catastrophe
ratio includes the effect of catastrophe losses, but does not include the effect
of reinstatement premiums.

Expense Ratio- For the underwriting segments of Commercial Lines and Personal
Lines is the ratio of underwriting expenses less fee income, to earned premiums.
Underwriting expenses include the amortization of deferred policy acquisition
costs ("DAC") and insurance operating costs and expenses, including certain
centralized services costs and

bad debt. DAC includes commissions, taxes, licenses and fees and other
additional direct sales charge and are amortized over the life of the policy.

The expense ratio for Group Benefits is expressed as the insurance expense ratio
operating and other expenses, including amortization of intangible assets and
amortization of the DAC, premiums and other consideration, excluding redemption
premiums.

The expense ratio for Commercial Lines, Personal Lines and Group Benefits does
not include integration and other transaction costs associated with an acquired
business.

Fee Income- Is largely driven from amounts earned as a result of contractually
defined percentages of assets under management in our Hartford Funds business.
These fees are generally earned on a daily basis. Therefore, the growth in
assets under management either through net inflows or favorable market
performance will have a favorable impact on fee income. Conversely, either net
outflows or unfavorable market performance will reduce fee income.

Gross New Business Premium- Represents the amount of premiums charged, before
ceded reinsurance, for policies issued to customers who were not insured with
the Company in the previous policy term. Gross new business premium plus gross
renewal written premium less ceded reinsurance equals total written premium.

Loss and Loss Adjustment Expense Ratio- A measure of the cost of claims incurred
in the calendar year divided by earned premium and includes losses and loss
adjustment expenses incurred for both the current and prior accident years.
Among other factors, the loss and loss adjustment expense ratio needed for the
Company to achieve its targeted return on equity ("ROE") fluctuates from year to
year based on changes in the expected investment yield over the claim settlement
period, the timing of expected claim settlements and the targeted returns set by
management based on the competitive environment.

The loss and loss adjustment expense ratio is affected by claim frequency and
claim severity, particularly for shorter-tail property lines of business, where
the emergence of claim frequency and severity is credible and likely indicative
of ultimate losses. Claim

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frequency represents the percentage change in the average number of reported
claims per unit of exposure in the current accident year compared to that of the
previous accident year. Claim severity represents the percentage change in the
estimated average cost per claim in the current accident year compared to that
of the previous accident year. As one of the factors used to determine pricing,
the Company's practice is to first make an overall assumption about claim
frequency and severity for a given line of business and then, as part of the
rate-making process, adjust the assumption as appropriate for the particular
state, product or coverage.

Loss and Loss Adjustment Expense Ratio before Catastrophes and Prior Accident
Year Development- A measure of the cost of non-catastrophe loss and loss
adjustment expenses incurred in the current accident year divided by earned
premiums. Management believes that the current accident year loss and loss
adjustment expense ratio before catastrophes is a performance measure that is
useful to investors as it removes the impact of volatile and unpredictable
catastrophe losses and prior accident year development.

Loss Ratio, excluding Buyouts- Utilized for the Group Benefits segment and is
expressed as a ratio of benefits, losses and loss adjustment expenses, excluding
those related to buyout premiums, to premiums and other considerations,
excluding buyout premiums. Since Group Benefits occasionally buys a block of
claims for a stated premium amount, the Company excludes this buyout from the
loss ratio used for evaluating the profitability of the business as buyouts may
distort the loss ratio. Buyout premiums represent takeover of open claim
liabilities and other non-recurring premium amounts.

Mutual Fund and Exchange-Traded Fund Assets- Are owned by the shareholders of
those products and not by the Company and, therefore, are not reflected in the
Company's Condensed Consolidated Financial Statements except in instances where
the Company seeds new investment products.

Mutual fund and ETF assets are a measure used by the Company primarily because a
significant portion of the Company's Hartford Funds segment revenues and
expenses are based upon asset values. These revenues and expenses increase or
decrease with a rise or fall in AUM whether caused by changes in the market or
through net flows.

Net New Business Premium – Represents the amount of premiums invoiced, after assignment
reinsurance, for policies issued to customers who were not insured with the
Company during the previous insurance period. New net business premium plus renewal
the written premium is equal to the total written premium.

Policy Count Retention- Represents the ratio of the number of renewal policies
issued during the current year period divided by the number of policies issued
in the previous calendar period before considering policies cancelled subsequent
to renewal. Policy count retention is affected by a number of factors, including
the percentage of renewal policy quotes accepted and decisions by the Company to
non-renew policies because of specific policy underwriting concerns or because
of a decision to reduce premium writings in certain classes of business or
states. Policy count retention is also affected by advertising and rate actions
taken by competitors.

Policies in Force- Represents the number of policies with coverage in effect as
of the end of the period. The number of policies in force is a growth measure
used for Personal Lines and standard commercial lines (small commercial and
middle market lines within middle & large commercial) within Commercial Lines
and is affected by both new business growth and policy count retention.

Policyholder dividend ratio – The ratio of policyholder dividends to
prime.

Prior accident year loss and loss adjustment expense ratio – Represents the
increase (decrease) in the estimated cost of settling a disaster and
non-catastrophic claims occurring in previous accident years as recorded in the
current calendar year divided by earned premiums.

Reinstatement Premiums – Represents the additional ceded premium paid for the
reinsurance of the amount of reinsurance coverage which has been reduced accordingly
of the Company ceding claims to reinsurers.

Renewal Earned Price Increase (Decrease)- Written premiums are earned over the
policy term, which is six months for certain Personal Lines automobile business
and twelve months for substantially all of the remainder of the Company's
Property and Casualty ("P&C") business. Since the Company earns premiums over
the six to twelve month term of the policies, renewal earned price increases
(decreases) lag renewal written price increases (decreases) by six to
twelve months.

Renewal Written Price Increase (Decrease)- For Commercial Lines, represents the
combined effect of rate changes, amount of insurance and individual risk pricing
decisions per unit of exposure on commercial lines policies that renewed. For
Personal Lines, renewal written price increases represent the total change in
premium per policy since the prior year on those policies that renewed and
includes the combined effect of rate changes, amount of insurance and other
changes in exposure. For Personal Lines, other changes in exposure include, but
are not limited to, the effect of changes in number of drivers, vehicles and
incidents, as well as changes in customer policy elections, such as deductibles
and limits. The rate component represents the change in rate filed with and
approved by state regulators during the period and the amount of insurance
represents the change in the value of the rating base, such as model
year/vehicle symbol for automobiles, building replacement costs for property and
wage inflation for workers' compensation. A number of factors affect renewal
written price increases (decreases) including expected loss costs as projected
by the Company's pricing actuaries, rate filings approved by state regulators,
risk selection decisions made by the Company's underwriters and marketplace
competition. Renewal written price changes reflect the property and casualty
insurance market cycle. Prices tend to increase for a particular line of
business when insurance carriers have incurred significant losses in that line
of business in the recent past or the industry as a whole commits less of its
capital to writing exposures in that line of business. Prices tend to decrease
when recent loss experience has been favorable or when competition among
insurance carriers increases. Renewal written price statistics are subject to
change from period to period, based on a number of factors, including changes in

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actuarial estimates and the effect of subsequent cancellations and non-renewals,
and modifications made to better reflect ultimate pricing achieved.

Return on Assets ("ROA"), Core Earnings-The Company uses this non-GAAP financial
measure to evaluate, and believes is an important measure of, the Hartford Funds
segment's operating performance. ROA, core earnings is calculated by dividing
annualized core earnings by a daily average AUM. ROA is the most directly
comparable U.S. GAAP measure. The Company believes that ROA, core earnings,
provides investors with a valuable measure of the performance of the Hartford
Funds segment because it reveals trends in our business that may be obscured by
the effect of items excluded in the calculation of core earnings. ROA, core
earnings, should not be considered as a substitute for ROA and does not reflect
the overall profitability of our Hartford Funds business. Therefore, the Company
believes it is important for investors to evaluate both ROA, and ROA, core
earnings when reviewing the Hartford Funds segment performance. A reconciliation
of ROA to ROA, core earnings is set forth in the Results of Operations section
within MD&A - Hartford Funds.

Underlying Combined Ratio- This non-GAAP financial measure of underwriting
results represents the combined ratio before catastrophes, prior accident year
development and current accident year change in loss reserves upon acquisition
of a business. Combined ratio is the most directly comparable GAAP measure. The
underlying combined ratio represents the combined ratio for the current accident
year, excluding the impact of current accident year catastrophes and current
accident year change in loss reserves upon acquisition of a business. The
Company believes this ratio is an important measure of the trend in
profitability since it removes the impact of volatile and unpredictable
catastrophe losses and prior accident year loss and loss adjustment expense
reserve development. The changes to loss reserves upon acquisition of a business
are excluded from underlying combined ratio because such changes could obscure
the ability to compare results in periods after the acquisition to results of
periods prior to the acquisition as such trends are valuable to our investors'
ability to assess the Company's financial performance.

A reconciliation of combined ratio to underlying combined ratio is set forth in
the Results of Operations section within MD&A - Commercial Lines and Personal
Lines.

Underwriting Gain (Loss)- The Hartford's management evaluates profitability of
the Commercial and Personal Lines segments primarily on the basis of
underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP
measure that represents earned premiums less incurred losses, loss adjustment
expenses and underwriting expenses. Net income (loss) is the most directly
comparable GAAP measure. Underwriting gain (loss) is influenced significantly by
earned premium growth and the adequacy of The Hartford's pricing. Underwriting
profitability over time is also greatly influenced by The Hartford's
underwriting discipline, as management strives to manage exposure to loss
through favorable risk selection and diversification, effective management of
claims, use of reinsurance and its ability to manage its expenses. The Hartford
believes that the measure underwriting gain (loss) provides investors with a
valuable measure of profitability, before tax, derived from underwriting
activities, which are managed separately from the Company's investing
activities.

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                       Reconciliation of Net Income to Underwriting Gain (Loss)
                                                                                                       Three Months
                                                                                                       Ended March
                                                                                                           31,
                                                                                                             2022     2021
                                           Commercial Lines
Net income                                                                                                 $ 383    $  129
Adjustments to reconcile net income to underwriting gain (loss):
Net servicing income                                                                                          (1)       (2)
Net investment income                                                                                       (333)     (327)
Net realized losses (gains)                                                                                   91       (44)
Other expense                                                                                                  7         4

Income tax expense                                                                                            95        24
Underwriting gain (loss)                                                                                   $ 242    $ (216)
                                            Personal Lines
Net income                                                                                                 $  77    $  135
Adjustments to reconcile net income to underwriting gain:
Net servicing income                                                                                          (4)       (4)
Net investment income                                                                                        (33)      (35)
Net realized losses (gains)                                                                                    9        (7)

Income tax expense                                                                                            20        35
Underwriting gain                                                                                          $  69    $  124
                                         P&C Other Operations
Net income (loss)                                                                                          $   8    $  (13)
Adjustments to reconcile net income to underwriting loss:
Net investment income                                                                                        (16)      (16)
Net realized losses (gains)                                                                                    4        (2)
Income tax expense (benefit)                                                                                   1        (4)
Underwriting loss                                                                                          $  (3)   $  (35)


Written and Earned Premiums- Written premium represents the amount of premiums
charged for policies issued, net of reinsurance, during a fiscal period.
Premiums are considered earned and are included in the financial results on a
pro rata basis over the policy period. Management believes that written premium
is a performance measure that is useful to investors as it reflects current
trends in the Company's sale of property and casualty insurance products.
Written and earned premium are recorded net of ceded reinsurance premium.

Traditional life and disability insurance type products, such as those sold by
Group Benefits, collect premiums from policyholders in exchange for financial
protection for the policyholder from a specified insurable loss, such as death
or disability. These premiums together with net investment income earned are
used to pay the contractual obligations under these insurance contracts. Two
major factors, new sales and persistency, impact premium growth. Sales can
increase or decrease in a given year based on a number of factors, including but
not limited to, customer demand for the Company's product offerings, pricing
competition, distribution channels and the Company's reputation and ratings.
Persistency refers to the percentage of premium remaining in-force from
year-to-year.

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THE HARTFORD'S OPERATIONS

The Hartford conducts business principally in five reporting segments including
Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group
Benefits and Hartford Funds, as well as a Corporate category. The Company
includes in the Corporate category reserves for run-off structured settlement
and terminal funding agreement liabilities, restructuring costs, capital raising
activities (including equity financing, debt financing and related interest
expense), transaction expenses incurred in connection with an acquisition,
certain M&A costs, purchase accounting adjustments related to goodwill and other
expenses not allocated to the reporting segments. Corporate also includes
investment management fees and expenses related to managing third party
business, including management of a portion of the invested assets of Talcott
Resolution Life, Inc. and its subsidiaries as well as certain affiliates. In
addition, up until June 30, 2021, Corporate included a 9.7% ownership interest
in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in
May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its
subsidiaries are collectively referred to as "Talcott Resolution"). The sale of
Talcott Resolution to a new investor was completed on June 30, 2021. The Company
received a total of $217 in connection with the sale of its 9.7% ownership
interest, resulting in a realized gain of $46 before tax in 2021.

The Company derives its revenues principally from: (a) premiums earned for
insurance coverage provided to insureds; (b) management fees on mutual fund and
ETF assets; (c) net investment income; (d) fees earned for services provided to
third parties; and (e) net realized gains and losses. Premiums charged for
insurance coverage are earned principally on a pro rata basis over the terms of
the related policies in-force.

The profitability of the Company's property and casualty insurance businesses
over time is greatly influenced by the Company's underwriting discipline, which
seeks to manage exposure to loss through favorable risk selection and
diversification, its management of claims, its use of reinsurance, the size of
its in force block, actual mortality and morbidity experience, and its ability
to manage its expense ratio which it accomplishes through economies of scale and
its management of acquisition costs and other underwriting expenses. Pricing
adequacy depends on a number of factors, including the ability to obtain
regulatory approval for rate changes, proper evaluation of underwriting risks,
the ability to project future loss cost frequency and severity based on
historical loss experience adjusted for known trends, the Company's response to
rate actions taken by competitors, its expense levels and expectations about
regulatory and legal developments. The Company seeks to price its insurance
policies such that insurance premiums and future net investment income earned on
premiums received will cover underwriting expenses and the ultimate cost of
paying claims reported on the policies and provide for a profit margin. For many
of its insurance products, the Company is required to obtain approval for its
premium rates from state insurance departments and the Lloyd's Syndicate's
ability to write business is subject to Lloyd's approval for its premium
capacity each year. Most of Personal Lines written premium is associated with
our exclusive licensing agreement

with AARP, which is effective through December 31, 2032. This agreement provides
an important competitive advantage given the size of the 50 plus population and
the strength of the AARP brand.

Similar to property and casualty, profitability of the group benefits business
depends, in large part, on the ability to evaluate and price risks appropriately
and make reliable estimates of mortality, morbidity, disability and longevity.
To manage the pricing risk, Group Benefits generally offers term insurance
policies, allowing for the adjustment of rates or policy terms in order to
minimize the adverse effect of market trends, loss costs, declining interest
rates and other factors. However, as policies are typically sold with rate
guarantees of up to three years, pricing for the Company's products could prove
to be inadequate if loss and expense trends emerge adversely during the rate
guarantee period or if investment returns are lower than expected at the time
the products were sold. For some of its products, the Company is required to
obtain approval for its premium rates from state insurance departments. New and
renewal business for group benefits business, particularly for long-term
disability, are priced using an assumption about expected investment yields over
time. While the Company employs asset-liability duration matching strategies to
mitigate risk and may use interest-rate sensitive derivatives to hedge its
exposure in the Group Benefits investment portfolio, cash flow patterns related
to the payment of benefits and claims are uncertain and actual investment yields
could differ significantly from expected investment yields, affecting
profitability of the business. In addition to appropriately evaluating and
pricing risks, the profitability of the Group Benefits business depends on other
factors, including the Company's response to pricing decisions and other actions
taken by competitors, its ability to offer voluntary products and self-service
capabilities, the persistency of its sold business and its ability to manage its
expenses which it seeks to achieve through economies of scale and operating
efficiencies.

The financial results of the Company's mutual fund and ETF businesses depend
largely on the amount of assets under management and the level of fees charged
based, in part, on asset share class and fund type. Changes in assets under
management are driven by the two main factors of net flows and the market return
of the funds, which are heavily influenced by the return realized in the equity
and bond markets. Net flows are comprised of new sales less redemptions by
mutual fund and ETF shareholders. Financial results are highly correlated to the
growth in assets under management since these funds generally earn fee income on
a daily basis.

The investment return, or yield, on invested assets is an important element of
the Company's earnings since insurance products are priced with the assumption
that premiums received can be invested for a period of time before benefits,
losses and loss adjustment expenses are paid. Due to the need to maintain
sufficient liquidity to satisfy claim obligations, the majority of the Company's
invested assets have been held in available-for-sale securities, including,
among other asset classes, corporate bonds, municipal bonds, government debt,
short-term debt, mortgage-backed securities, asset-backed securities and
collateralized loan obligations. The primary investment objective for the
Company is to maximize economic value, consistent with acceptable risk
parameters, including the management of credit risk and interest rate
sensitivity of invested assets, while

                                                                            

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generating sufficient net of tax income to meet policyholder and corporate
obligations. Investment strategies are developed based on a variety of factors
including business needs, regulatory requirements and tax considerations.

Impact of Ukraine conflict on our results of operations
From the Ukraine conflict, the Company incurred $27 of catastrophe losses, net
of reinsurance, in first quarter 2022 that included exposures under political
violence and terrorism ("PV&T") policies, including aviation war, as well as
under credit and political risk insurance ("CPRI") policies. In the first
quarter of 2022, the Company recognized a provision for reinstatement premium of
$11 as a result of estimated ceded incurred losses related to the conflict.

The Company's direct investment exposure is limited to bonds issued by Russian
entities with an amortized cost of $16 and a fair value of $7 as of March 31,
2022, recording an allowance for credit losses ("ACL") of $9. The Company does
not have any investments in Belarus or Ukraine.

For a discussion of the risks associated with a deterioration in global economic
conditions and/or geopolitical conditions, including due to military action,
please refer to the Risk Factors in our 2021 Form 10-K, including one entitled
"Unfavorable economic, political and global market conditions may adversely
impact our business and results of operations" and another entitled "We are
vulnerable to losses from catastrophes, both natural and man-made".

Operational Transformation and Cost Reduction Plan
In recognition of the need to become more cost efficient and competitive along
with enhancing the experience we provide to agents and customers, on July 30,
2020, the Company announced an operational transformation and cost reduction
plan it refers to as Hartford Next. Through reduction of its headcount,
Information Technology ("IT") investments to further enhance our capabilities,
and other activities, relative to 2019, the Company expects to achieve a
reduction in annual insurance operating costs and other expenses of
approximately $540 by 2022 and $625 by 2023.

To achieve those expected savings, we expect to incur approximately $395 over
the course of the program, with $238 expensed cumulatively through March 31,
2022, and expected expenses of $62 over the last nine months of 2022, $38 in
2023, and $57 after 2023, with the expenses after 2023 consisting mostly of
amortization of internal use software and capitalized real estate costs.
Included in the estimated costs of $395, we expect to incur restructuring costs
of approximately $130, including $46 of employee severance, and approximately
$84 of other costs, including consulting expenses, lease termination expenses
and the cost to retire certain IT applications. Restructuring costs are reported
as a charge to net income but not in core earnings.

The following table presents Hartford Next program costs incurred, including
restructuring costs, and expense savings realized in the three months ended
March 31, 2022 and expected annual costs and expense savings for the full year
in 2022 and 2023:

                            Hartford Next Costs and Expense Savings
                                                     Three months ended
                                                       March 31, 2022       Estimate for 2022     Estimate for 2023
Employee severance                                  $               (2)   $               (2)   $                -
IT costs to retire applications                                      2                    10                     5
Professional fees and other expenses                                 5                    12                     -

Estimated restructuring costs                                        5                    20                     5

Non-capitalized IT costs                                            13                    45                    17
Other costs                                                          3                    13                     6
Amortization of capitalized IT development costs                     -                     4                     9

[1]

Amortization of capitalized real estate [2]                          -                     1                     1
Estimated costs within core earnings                                16                    63                    33
Total Hartford Next program costs                   $               21    $               83    $               38

Cumulative savings for the period relative to                     (132)                 (540)                 (625)

2019

Net expense (savings) before tax:                   $             (111)   $             (457)   $             (587)

Net expense (savings) before tax:
Accounted for within core earnings                  $             (116)   $             (477)   $             (592)
Restructuring costs recognized outside of core                       5                    20                     5

earnings

Net expense (savings) before tax                    $             (111)   $             (457)   $             (587)


[1]Does not include approx. $34 depreciation of IT assets after 2023.
[2]Does not include approx. $19 real estate depreciation after 2023.

56

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
                              FINANCIAL HIGHLIGHTS

    Net Income Available to         Net Income Available to Common          Book Value per
      Common Stockholders           Stockholders per Diluted Share          Diluted Share

[[Image Removed: hig-20220331_g2.jpg]] [[Image Removed: hig-20220331_g3.jpg]]

                     [[Image Removed: hig-20220331_g4.jpg]]

 Ý    Increased $196 or 80%     Ý   Increased $0.63 or 94%     Þ              Decreased $5 or 9.7%

+ Change to favorable + Increase in net income – Decrease in equity

     P&C prior accident year        available to common            largely

due to a decrease in AOCI,

     reserve development            stockholders                   

mainly due to a change from the net

unrealized gains to net unrealized losses

                                                                   on 

titles available for sale as well as

                                                                   common 

dividends and shareholder shares

                                 +  Share repurchases              

redemptions exceeding net income

  +  Lower catastrophe
     losses
  +  In Commercial Lines,
     higher earned premiums
     and a lower current
     accident year loss                                         + 

Reduction of outstanding shares due to

     ratio                                                         share repurchases

  +  A decrease in excess
     mortality losses in
     group life
  -  A change to net
     realized losses
  -  Higher loss ratio in
     Group Benefits,
     excluding the impact of
     excess mortality
  -  Higher loss ratio in
     Personal Lines
     automobile
  -  Increase in P&C
     underwriting expenses
     and Group Benefits
     insurance operating
     costs and other
     expenses



   Investment Yield, After Tax        Property & Casualty        Group Benefits Net Income
                                         Combined Ratio                    Margin

[[Image Removed: hig-20220331_g5.jpg]] [[Image Removed: hig-20220331_g6.jpg]]

                     [[Image Removed: hig-20220331_g7.jpg]]
 Þ        Decreased 20 bps            Þ     Improved 13.9 points        

Þ Decrease of 1.0 point

– Lower yields on limited – A shift to favorable – A higher group loss rate

    partnerships and other               prior accident year               

due to less favorable prior commitments

    alternative investments              reserve development               

long-term development of the year

– Reinvestment at lower rates – Reduction of catastrophe losses

the yield to maturity during

    2021                              -  Decrease in COVID-19           -  

A shift from net realized gains to

                                         incurred losses                   

net losses realized in 2022

                                                                           period
                                      -  Lower current accident
                                         year loss ratio before
                                         COVID-19 in Commercial         - 

A higher loss ratio under the group

                                         Lines                             accidental death business
                                      +  Higher personal automobile
                                         claim frequency and
                                         severity                       -  Higher expense ratio

                                                                        + 

Reduction of excess mortality in group life


                                                                              57

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Part I – Point 2. Management report and analysis of the financial situation and
Operating results

CONSOLIDATED OPERATING RESULTS

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 segment operating results sections of MD&A.