Hartford Financial Services : 1Q24 Financial Results Presentation Slides

The Hartford's First Quarter 2024 Financial Results

The Hartford Financial Services Group, Inc. | April 25, 2024

SAFE HARBOR STATEMENT

Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford's future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ, including those discussed in The Hartford's news release issued on April 25, 2024, The Hartford's Quarterly Reports on Form 10-Q, The Hartford's 2023 Annual Report on Form 10-K, and other filings we make with the U.S. Securities and Exchange Commission. We assume no obligation to update this presentation, which speaks as of today's date.

The discussion in this presentation of The Hartford's financial performance includes financial measures that are not derived from generally accepted accounting principles (GAAP). Information regarding these non-GAAP financial measures is provided in the appendix to this presentation, the news release issued on April 25, 2024 and The Hartford's Investor Financial Supplement for first quarter 2024 which is available at the Investor Relations section of The Hartford's website at https://ir.thehartford.com.

From time to time, The Hartford may use its website and/or social media channels 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. 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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THE HARTFORD

Diversified insurer with core strengths and market leadership

Market leader in desirable segments with high return characteristics

Delivering consistently strong results across diversified businesses with significant contribution from investment portfolio

Leveraging core strengths of underwriting excellence, risk management, claims, products and distribution

Investing in differentiating capabilities to strengthen competitive advantage to enable profitable growth

Ethics, people and performance driven culture

Hartford Funds	Other
4%	1%

Personal

Lines

14%

Revenue
Contribution Across
Commercial Lines
Our Segments1,2
53%

Group Benefits

28%

Unique portfolio of complementary underwriting businesses all contributing to our success.

1 Revenue contribution is for the trailing 12-months for the period ended March 31, 2024

3

2 "Other" includes revenue of $67 million for Property & Casualty Other Operations and $123 million for Corporate

FIRST QUARTER 2024 - DISCIPLINED EXECUTION

The Hartford delivered…

Growth:

P&C net written premium growth of 9%, including 8% in Commercial Lines and 13% in Personal Lines

Group Benefits fully insured ongoing premium growth of 2%

Profitability:

Commercial Lines combined ratio of 90.1 and underlying combined ratio1 of 88.4

Group Benefits core earnings margin1 of 6.1%

Balance sheet & capital management:

Proactive capital management - repurchased $350 million of shares and paid $141 million in common stockholder dividends

Superior risk-adjusted returns:

16.6% core earnings return on equity (ROE)1,3

High Quality Investment Portfolio:

A+ overall average credit rating with net investment income of $593 million, before tax, benefiting from the impact of reinvesting at higher rates, a higher level of invested assets and a higher yield on variable-rate securities

Maximizing Value Creation for All Stakeholders

Book Value Per Diluted Share

(ex AOCI)1,2

$60		$58.83	$60.18
$55	$53.66
$50.87
$50
$45
$40
2021	2022	2023	1Q24

Core Earnings ROE1,3

			16.6%
		15.8%
	14.5%
12.7%
2021	2022	2023	1Q24

1 Denotes financial measure not calculated based on GAAP

2	Accumulated other comprehensive income	4
3	ROE based on trailing 12-month average common equity, ex. AOCI and trailing 12-month core earnings

1Q24 CORE EARNINGS1 OF $709 MILLION, EPS1,2 OF $2.34, ROE1,3 OF 16.6%

Core Earnings (loss) By Segment ($ in millions, except per share amounts)	1Q24	1Q23	Change4
Commercial Lines	$546	$436	25%
Personal Lines	33	-	NM
P&C Other Operations	7	8	(13)%
Property & Casualty Total	586	444	32%
Group Benefits	107	90	19%
Hartford Funds	41	37	11%
Sub-total	734	571	29%
Corporate	(25)	(35)	29%
Core earnings	709	536	32%
Net realized gains (losses), before tax	30	(7)	NM
Restructuring and other costs, before tax	(1)	-	NM
Integration and other non-recurring M&A costs, before tax	(2)	(2)	-%
Change in deferred gain on retroactive reinsurance, before tax	24	-	NM
Income tax benefit (expense)	(12)	3	NM
Net income available to common stockholders	748	530	41%
Add back: Preferred stock dividends	5	5	-%
Net Income	$753	$535	41%
Core earnings per diluted share	$2.34	$1.68	39%
Net income available to common stockholders per diluted share	$2.47	$1.66	49%
Wtd. avg. diluted shares outstanding	302.6	318.6	(5)%
Common shares outstanding and dilutive potential common shares	301.3	316.4	(5)%
Book value per diluted share	$50.23	$44.27	13%
Book value per diluted share (excluding AOCI)1	$60.18	$54.55	10%
Net income ROE, last 12 months	18.5%	12.8%	5.7 pts
Core earnings ROE, last 12 months	16.6%	14.3%	2.3 pts

1 Denotes financial measure not calculated based on GAAP
2 Core earnings per diluted share (EPS)	5
3 Core earnings ROE
4 The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as	"NM" or not meaningful

1Q24 KEY BUSINESS HIGHLIGHTS VS. 1Q23

PROPERTY & CASUALTY

Strong contribution from Commercial Lines with growth across the segment

Written premiums		Combined ratio (%)		Underlying combined ratio1 (%)
$4.2B	9%		92.921.8	2.9 pts		90.1	0.3 pts

Commercial Lines	$3.4B	8%	90.1	2.6 pts.	88.4	0.1 pts.
Small Commercial	$1.4B	8%	89.0	1.8 pts.	89.6	0.1 pts.
Middle & Large Commercial	$1.0B	9%	94.0	3.6 pts.	89.2	0.7 pts.
Global Specialty	$907M	8%	87.8	0.9 pts.	85.3	0.1 pts.
Personal Lines	$844M	13%	101.6	4.5 pts.	96.1	0.9 pts.
Auto2	$600M	13%	103.9	6.3 pts.	104.4	0.7 pts.
Homeowners	$244M	12%	96.2	0.6 pts.	77.0	1.9 pts

Group Benefits

Core earnings margin1 of 6.1% and an increase in premiums deliver profitable growth

Fully Insured Ongoing Premiums	Core earnings margin	Life loss ratio (%)	Disability loss ratio (%)
$1.6B	2%	6.1%	0.9 pts.	82.6%	4.1 pts.	70.1%	0.3 pts.

1	Denotes financial measure not calculated based on GAAP	6
2	Taking into consideration the adverse accident year development that was booked in the second quarter of 2023 for the first quarter of 2023, the first quarter underlying combined ratio of 105.1 would be 3.0 points higher

COMMERCIAL LINES

Strong contributions from each business continue to deliver profitable growth

Written premiums of $3.4 billion in 1Q24 were up 8% from 1Q23 with increases across the segment, strong double-digit growth in new business, and the effect of renewal written price increases

Excluding workers' compensation, renewal written price increases of 9.0% is up 70 bps from 4Q23. Workers' compensation renewal written pricing between 1Q24 and 4Q23 was relatively flat

Combined ratio of 90.1 in 1Q24 compared to 92.7 in 1Q23 and underlying combined ratio1 of 88.4 in 1Q24 compared to 88.5 in 1Q23

Expense ratio of 31.5 improved 0.2 points from 1Q23, driven by the impact of higher earned premium

	Commercial Lines Combined Ratio3
92.7	91.2	90.2	84.7	90.1

CAY CATs and PYD

Expense Ratio

CAY Losses and

LAE4 Before CATs

1. Denotes financial measure not calculated based on GAAP
2. Excludes Middle Market loss sensitive and programs businesses, Global Re, offshore energy policies, credit and political risk insurance policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 delegates underwriting authority to coverholders and other third parties
3. Combined ratio includes policyholder dividends ratio
4. Loss adjustment expense (LAE)
5. Commercial Lines written premiums include immaterial amounts from Other Commercial

Commercial Lines Renewal Written Pricing %

Commercial Lines2

Commercial Lines, ex. Workers' Comp2

Commercial Lines Written Premiums5

($ in millions)

Small Commercial		Middle & Large Commercial	Global Specialty	7

PERSONAL LINES

Double-digit rate actions being taken to address higher auto claim loss costs

Written premiums of $844 million increased by 13% compared to 1Q23

Renewal written price increase in auto of 25.7% in 1Q24 compared to 21.8% in 4Q23, and in home, 15.2% in 1Q24 compared to 14.6% in 4Q23

Combined ratio of 101.6 in 1Q24 improved from 106.1 in 1Q23, primarily due to a change from unfavorable PYD of 2.7 points in 1Q23 to favorable PYD of 0.9 points in 1Q24 as well as a 0.9 point improvement in the underlying combined ratio

Underlying combined ratio of 96.1 improved from 97.0 in 1Q23 primarily due to a

1.2 point improvement in the expense ratio and a lower non-CAT CAY homeowners loss ratio

	Personal Lines Combined Ratio
106.1	114.9	107.9
	101.6
		101.2

CAY CATs and PYD

Expense Ratio

CAY Losses and LAE

Before CATs

Personal Lines Renewal Written Price Increase %

Homeowners

Auto

Written Premiums

($ in millions)

Homeowners

Auto

8

1 Denotes financial measure not calculated based on GAAP

GROUP BENEFITS

Solid margins in 1Q24

Core earnings margin1 of 6.1% compared with 5.2% in 1Q23 reflecting improved life results, continued strong long-term disability results and higher net investment income

The loss ratio of 73.5% improved 1.7 points from 1Q23 driven by improved mortality trends in group life and continued strong long-term disability claim recoveries, largely offset by higher incidence in Paid Family Leave and short-term disability products

1Q24 fully insured ongoing premiums increased 2%, including an increase in exposure on existing accounts, new business sales and strong but lower persistency compared to a year ago

Expense ratio of 25.4% increased 0.7 points from 1Q23 primarily due to higher staffing costs, increased investments in technology, and higher commission expense, partially offset by the effect of higher earned premiums

Loss Ratio

Core Earnings1 and Core Earnings Margin

($ in millions)

Fully Insured Ongoing Premiums & Growth

($ in millions)

9

1 Denotes financial measure not calculated based on GAAP

HARTFORD FUNDS

High return, fee generating business

Total AUM4

($ in billions)

Core earnings1 of $41 million in 1Q24 increased from $37 million in 1Q23 with an increase in fee income net of variable expenses, driven by higher daily average Hartford Funds AUM

Mutual fund and Exchange-traded funds (ETF) net outflows of $2.5 billion in 1Q24, compared with net outflows of $1.2 billion in 1Q23

51% of overall funds are outperforming peers on a 1-year basis3, 47% on a 3-year basis3, 54% on a 5-year basis3 and 68% on a 10-year basis3

42% of funds are rated 4 or 5 stars by Morningstar as of March 31, 2024

• 83% are rated 3 stars or better

Mutual Fund and ETF Net Flows2

($ in millions)

Mutual Fund and ETF AUM

Third-Party Life and Annuity Separate Account AUM5

1. Denotes financial measure not calculated based on GAAP
2. Includes Mutual fund AUM (mutual funds sold through retail, bank trust, registered investment advisor and 529 plan channels) and ETFs. Excludes third-party Life and Annuity Separate Account
3. Hartford Funds (non HLS) and ETFs on Morningstar net of fees basis at March 31, 2024

4 Includes Mutual Fund, ETF and third-party life and annuity separate account AUM as of end of period

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5 Represents AUM of the life and annuity business sold in May 2018 that are still managed by Hartford Funds