| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---|---|---|---|---|---|---|---|---|
| **Net New Business Premium Small Commercial [$M]** | 191  **[0000874766-23-000012_ex992ifs12312022.htm:16]**  | 242  **[0000874766-23-000071_hig-20230331.htm:83]**  | 237  **[0000874766-23-000097_hig-20230630.htm:92]**  | 220  **[0000874766-23-000112_hig-20230930.htm:95]**  | 216  **[0000874766-24-000007_ex992ifs12312023.htm:17]**  | 268  **[0000874766-24-000073_hig-20240331.htm:78]**  | 291  **[0000874766-24-000108_hig-20240630.htm:87]**  | 278  **[0000874766-24-000122_hig-20240930.htm:88]**  |
| **Net New Business Premium Middle Market [$M]** | 131  **[0000874766-23-000012_ex992ifs12312022.htm:16]**  | 148  **[0000874766-23-000070_ex992ifs3312023.htm:13]**  | 164  **[0000874766-23-000097_hig-20230630.htm:92]**  | 137  **[0000874766-23-000112_hig-20230930.htm:95]**  | 168  **[0000874766-24-000007_ex992ifs12312023.htm:17]**  | 174  **[0000874766-24-000073_hig-20240331.htm:78]**  | 187  **[0000874766-24-000107_ex992ifs6302024.htm:15]**  | 176  **[0000874766-24-000122_hig-20240930.htm:88]**  |
| **Policy Count Retention Automobile [%]** | 85  **[0000874766-23-000012_ex992ifs12312022.htm:20]**  | 85  **[0000874766-23-000070_ex992ifs3312023.htm:15]**  | 86  **[0000874766-23-000096_ex992ifs6302023.htm:18]**  | 85  **[0000874766-23-000111_ex992ifs9302023.htm:18]**  | 85  **[0000874766-24-000007_ex992ifs12312023.htm:20]**  | 84  **[0000874766-24-000072_ex992ifs3312024.htm:16]**  | 83  **[0000874766-24-000107_ex992ifs6302024.htm:18]**  | 81  **[0000874766-24-000121_ex992ifs9302024.htm:19]**  |
| **Renewal Written Price Increase Commercial Lines [%]** | 7.9  **[HIG_3226741_1]**  | 8.1  **[HIG_3248057_1]**  | 7.5  **[HIG_3256244_1]**  | 8.0  **[HIG_3362621_2]**  | 8.5  **[HIG_3371813_3]**  | 9.0  **[HIG_3381195_20]**  | 9.5  **[HIG_3394740_2]**  | 9.5  **[HIG_3403981_3]**  |
| **Renewal Written Price Increase Auto [%]** | 6.3  **[0000874766-23-000012_ex992ifs12312022.htm:20]**  | 10.0  **[0000874766-23-000070_ex991earningsnewsrelease33.htm:0]**  | 13.8  **[0000874766-23-000096_ex992ifs6302023.htm:18]**  | 19.7  **[0000874766-23-000111_ex991earningsnewsrelease93.htm:6]**  | 21.9  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:8]**  | 25.7  **[0000874766-24-000072_ex991earningsnewsrelease33.htm:7]**  | 23.5  **[0000874766-24-000107_ex991earningsnewsrelease63.htm:7]**  | 20.8  **[0000874766-24-000121_ex991earningsnewsrelease93.htm:8]**  |
| **Renewal Earned Price Increase Auto [%]** | 3.2  **[0000874766-23-000023_hig-20221231.htm:112]**  | 6.0  **[0000874766-23-000071_hig-20230331.htm:83]**  | 8.5  **[0000874766-23-000097_hig-20230630.htm:96]**  | 11.7  **[0000874766-23-000112_hig-20230930.htm:99]**  | 10.5  **[0000874766-24-000016_hig-20231231.htm:113]**  | 19.1  **[0000874766-24-000073_hig-20240331.htm:81]**  | 22.1  **[0000874766-24-000108_hig-20240630.htm:90]**  | 22.7  **[0000874766-24-000122_hig-20240930.htm:92]**  |
| **Policies In-Force Small Commercial [000s]** | 1,421  **[0000874766-23-000012_ex992ifs12312022.htm:16]**  | 1,439  **[0000874766-23-000071_hig-20230331.htm:83]**  | 1,461  **[0000874766-23-000097_hig-20230630.htm:92]**  | 1,479  **[0000874766-23-000112_hig-20230930.htm:95]**  | 1,492  **[0000874766-24-000007_ex992ifs12312023.htm:17]**  | 1,512  **[0000874766-24-000073_hig-20240331.htm:78]**  | 1,537  **[0000874766-24-000108_hig-20240630.htm:87]**  | 1,558  **[0000874766-24-000122_hig-20240930.htm:88]**  |
| **Global Specialty Gross New Business Premium [$M]** | 192  **[0000874766-23-000012_ex992ifs12312022.htm:16]**  | 191  **[0000874766-23-000070_ex992ifs3312023.htm:13]**  | 246  **[0000874766-23-000096_ex992ifs6302023.htm:15]**  | 216  **[0000874766-23-000112_hig-20230930.htm:95]**  | 230  **[0000874766-24-000007_ex992ifs12312023.htm:17]**  | 223  **[0000874766-24-000072_ex992ifs3312024.htm:13]**  | 264  **[0000874766-24-000108_hig-20240630.htm:87]**  | 233  **[0000874766-24-000121_ex992ifs9302024.htm:16]**  |
| **Expense Ratio Commercial Lines [%]** | 31.3  **[0000874766-23-000012_ex991earningsnewsrelease12.htm:6]**  | 31.7  **[0000874766-23-000070_ex991earningsnewsrelease33.htm:5]**  | 31.3  **[0000874766-23-000096_ex991earningsnewsrelease63.htm:4]**  | 30.7  **[0000874766-23-000111_ex991earningsnewsrelease93.htm:4]**  | 30.2  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:5]**  | 31.5  **[0000874766-24-000072_ex991earningsnewsrelease33.htm:4]**  | 31.1  **[0000874766-24-000107_ex991earningsnewsrelease63.htm:4]**  | 30.9  **[0000874766-24-000121_ex991earningsnewsrelease93.htm:4]**  |
| **Combined Ratio Commercial Lines** | 89.0  **[0000874766-23-000012_ex991earningsnewsrelease12.htm:6]**  | 92.7  **[0000874766-23-000055_ex991preliminaryearningsne.htm:0]**  | 91.2  **[0000874766-23-000096_ex991earningsnewsrelease63.htm:4]**  | 90.2  **[0000874766-23-000111_ex991earningsnewsrelease93.htm:4]**  | 84.7  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:5]**  | 90.1  **[0000874766-24-000072_ex991earningsnewsrelease33.htm:4]**  | 89.8  **[0000874766-24-000107_ex991earningsnewsrelease63.htm:0]**  | 92.2  **[0000874766-24-000121_ex991earningsnewsrelease93.htm:4]**  |
| **Current Accident Year Catastrophe Losses [$M]** | 135  **[0000874766-23-000012_ex991earningsnewsrelease12.htm:1]**  | 185  **[0000874766-23-000055_ex991preliminaryearningsne.htm:0]**  | 226  **[0000874766-23-000097_hig-20230630.htm:89]**  | 184  **[0000874766-23-000112_hig-20230930.htm:92]**  | 81  **[0000874766-24-000007_ex991earningsnewsrelease12.htm:1]**  | 161  **[0000874766-24-000073_hig-20240331.htm:76]**  | 280  **[0000874766-24-000107_ex991earningsnewsrelease63.htm:0]**  | 247  **[0000874766-24-000122_hig-20240930.htm:85]**  |
| **Workers’ Compensation Discount Accretion [$M]** | 9  **[0000874766-23-000012_ex992ifs12312022.htm:11]**  | 11  **[0000874766-23-000071_hig-20230331.htm:49]**  | 11  **[0000874766-23-000097_hig-20230630.htm:90]**  | 10  **[0000874766-23-000111_ex992ifs9302023.htm:12]**  | 10  **[0000874766-24-000007_ex992ifs12312023.htm:12]**  | 12  **[HIG_3381195_29]**  | 11  **[0000874766-24-000107_ex992ifs6302024.htm:11]**  | 11  **[0000874766-24-000121_ex992ifs9302024.htm:12]**  |
| **Unfavorable Prior Accident Year Development [$M]** | 183  **[0000874766-23-000012_ex992ifs12312022.htm:11]**  | 0  **[0000874766-23-000071_hig-20230331.htm:81]**  | 39  **[0000874766-23-000097_hig-20230630.htm:90]**  | 92  **[0000874766-24-000007_ex992ifs12312023.htm:12]**  | 56  **[0000874766-24-000073_hig-20240331.htm:44]**  | 115  **[0000874766-24-000107_ex992ifs6302024.htm:11]**  |
| **Favorable Prior Accident Year Development [$M]** | (43)  **[0000874766-23-000112_hig-20230930.htm:92]**  | (24)  **[HIG_3403981_5]**  |

49c021552e77dadf5dca2790e3d16989963b978e0435a897201dea99babd63cd

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

413d2baf1d80761f8c190bb39a60fbf9deb2ef54fe69ac78ba813b91d20a0699

The Hartford Financial Services Group, Inc. (HIG) is a diversified insurance and investment company operating primarily in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Hartford Funds, along with a Corporate category **[0000874766-24-000073_hig-20240331.htm:68]** **[0000874766-24-000107_ex992ifs6302024.htm:28]** **[0000874766-24-000016_hig-20231231.htm:76]** **[0000874766-24-000108_hig-20240630.htm:12]**. The company offers a range of insurance products, including workers' compensation, property, automobile, general liability, and professional liability, primarily targeting small businesses, middle market companies, and national accounts **[0000874766-24-000107_ex992ifs6302024.htm:28]** **[0000874766-24-000016_hig-20231231.htm:11]**. Additionally, Hartford provides group life, accident, and disability coverage, investment management services, and products like mutual funds and ETFs **[0000874766-24-000107_ex992ifs6302024.htm:28]** **[0000874766-24-000016_hig-20231231.htm:191]**.

1. **Commercial Lines** - Offers insurance products such as workers' compensation, property, automobile, general liability, and professional liability, primarily targeting small businesses, middle market companies, and national accounts.
2. **Group Benefits** - Provides group life, accident, and disability coverage, along with other products like voluntary benefits and group retiree health.
3. **Personal Lines** - Provides automobile, homeowners, and personal umbrella coverages, with a significant portion of business coming from a program designed for AARP members.
4. **Hartford Funds** - Offers investment management services and products, including mutual funds and ETFs.
5. **Property & Casualty Other Operations** - Encompasses various other insurance-related activities not included in the main segments.

00c3bc95985836e666c60b0415d7a987d2945ce9c7977362b1392d739c27f756

| Segment / Quarter | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Commercial Lines (Million $)** | **2,776**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **2,896**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **2,962**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **3,059**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **3,132**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **3,260**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |
| **Personal Lines (Million $)** | **747**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **767**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **791**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **821**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **857**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **893**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |
| **Group Benefits (Million $)** | **1,609**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **1,630**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **1,629**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **1,639**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **1,665**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **1,655**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |
| **Hartford Funds (Million $)** | **241**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **244**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **248**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **250**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **253**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **263**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |
| **Corporate (Million $)** | **9**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **11**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **10**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **10**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **10**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **10**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |
| **Total Earned Premiums and Fee Income (Million $)** | **5,382**  **[0000874766-23-000071_hig-20230331.htm:15]**  | **5,548**  **[0000874766-23-000097_hig-20230630.htm:16]**  | **5,640**  **[0000874766-23-000112_hig-20230930.htm:15]**  | N/A | **5,779**  **[0000874766-24-000073_hig-20240331.htm:12]**  | **5,917**  **[0000874766-24-000108_hig-20240630.htm:12]**  | **6,081**  **[0000874766-24-000122_hig-20240930.htm:12]**  | N/A |

bc3999256d2f9248f7d3860da523b4d32de6919c8aeb97f0f5d959cb9aa4aed1

1. In the Personal Lines segment, can you provide specific targets for your longer-term combined ratio given the recent trends, and explain how you plan to achieve them, especially in the context of increased advertising expenses?  **[HIG_3403981_23]** **[HIG_3403981_9]** 
2. Regarding the upcoming A&E reserve review, can you discuss any preliminary trends or factors that might impact reserve levels, and how you are preparing for potential changes in those liabilities?  **[HIG_3403981_28]** 
3. Group Benefits sales are down 15% from the prior year despite strong margins; how do you plan to address the competitive pressures and decline in new business to drive growth in this segment?  **[HIG_3403981_25]** **[HIG_3403981_12]** 
4. In a competitive market with rising loss trends and healthy industry ROEs, how are you balancing pricing increases to maintain growth while ensuring underwriting discipline across your commercial lines?  **[HIG_3403981_20]** **[HIG_3403981_11]** 
5. Your Group Benefits margins are currently above your 6% to 7% guidance at 8.7%; what factors are driving the expectation of a margin decrease, and how will this affect your strategic priorities in this segment?  **[HIG_3403981_12]** 

786f56cd47df958aa211f0e0b51ee3fc5b7cbf5c48754d662a9bd6d940394c91

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Group Benefits Margin**: Core earnings margin was **8.7%**, above the typical guidance range of **6% to 7%**. Expected to return to the guidance range over time due to competitive market conditions  **[HIG_3403981_12]** .
  2. **Personal Lines**: On track to achieve target margins in auto by mid-2025, with auto renewal written price increases at approximately **20%**  **[HIG_3403981_3]** .
  3. **Commercial Lines Pricing**: Renewal written pricing excluding workers' compensation was **9.5%**. Pricing trends in auto, general liability, umbrella, and excess pricing are expected to remain conducive to growth  **[HIG_3403981_3]** .
  4. **E&S Growth**: On track to achieve a **$300 million** goal for E&S binding by the end of the year  **[HIG_3403981_24]** .
  5. **Property Pricing**: Pricing in the small to mid-market area remains elevated  **[HIG_3403981_27]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Core Earnings Margin for Group Benefits**: Long-term guidance range of **6% to 7%**, expected to outperform this for the remainder of 2024, with an **8.1%** margin in the first half  **[HIG_3394740_14]** .
  2. **Personal Lines Target Margins**: Expected to achieve target margins by **mid-2025**, with a **5- to 6-point improvement** in the auto underlying loss ratio for 2024  **[HIG_3394740_13]** .
  3. **Auto Renewal Written Price Increases**: Expected to be approximately **20%** for the year  **[HIG_3394740_2]** .
  4. **Workers' Compensation**: Maintaining a **5%** trend for medical inflation in reserves and pricing  **[HIG_3394740_15]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Personal Lines**: Profitability expected in 2024, target margins in 2025, with a 5 to 6-point improvement in the underlying auto loss ratio  **[HIG_3381195_8]** **[HIG_3381195_2]** .
  2. **Commercial Lines**: Expense ratio expected to be flat for 2024, with renewal written pricing excluding workers' compensation at 9%  **[HIG_3381195_28]** **[HIG_3381195_2]** .
  3. **Group Benefits**: Core earnings margin expected to reflect improved life results and strong disability performance  **[HIG_3381195_4]** .
  4. **Investments**: Limited partnership returns could be below 2023 results, but long-term results expected to be consistent with historical returns  **[HIG_3381195_5]** .
  5. **Share Repurchase**: Plan to maintain share repurchases, with approximately $1 billion remaining on authorization through December 31, 2024  **[HIG_3381195_5]** .
  6. **Overall Financial Performance**: Personal Lines expected to contribute to core earnings as it returns to profitability  **[HIG_3381195_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Commercial Lines**: Renewal written price increases excluding workers' compensation expected to be consistent with 2023; workers' compensation pricing projected to be flat to slightly negative  **[HIG_3371813_7]** .
  2. **Personal Lines**: Annual renewal written pricing in auto and home expected to be consistent with Q4 2023 results, with a 5 to 6-point improvement in the auto loss ratio  **[HIG_3371813_7]** .
  3. **Group Benefits**: Core earnings margin expected between **6% and 7%**  **[HIG_3371813_7]** .
  4. **Investment Income**: Expected to remain strong, supported by rising yields  **[HIG_3371813_7]** .
  5. **Capital Management**: Continued share repurchase program with $1.35 billion remaining on authorization through December 31, 2024  **[HIG_3371813_6]** .
  6. **Core Earnings ROE**: Expected to be anchored at **15%**  **[HIG_3371813_11]** .

0ecf5ade03b6b0eb1c577a8d93b8a59749b4f7b48f54c5b17fad519b6168b12b

0b9e17c28f5062f12cfa1fb1fc6ae33b1bf59f6e7ac9ad0d16f0229dded752f4

**Net New Business Premium Small Commercial [$M]**

**Net New Business Premium Middle Market [$M]**

**Policy Count Retention Automobile [%]**

**Renewal Written Price Increase Commercial Lines [%]**

**Renewal Written Price Increase Auto [%]**

**Renewal Earned Price Increase Auto [%]**

**Policies In-Force Small Commercial [000s]**

**Global Specialty Gross New Business Premium [$M]**

**Expense Ratio Commercial Lines [%]**

**Combined Ratio Commercial Lines**

**Current Accident Year Catastrophe Losses [$M]**

**Workers’ Compensation Discount Accretion [$M]**

**Unfavorable Prior Accident Year Development [$M]**

**Favorable Prior Accident Year Development [$M]**

2ba97d8658904413bf867f7fb6c7ff2bfaa8081375860e99cea230db6241c7d2

- Total Revenue: $6,879 million (+7% YoY)  **[0000874766-25-000010_ex992ifs12312024.htm:4]** **[0000874766-24-000016_hig-20231231.htm:80]**   
- Commercial Lines: $3,270 million (+7% YoY)  **[0000874766-25-000010_ex991earningsnewsrelease12.htm:17]** **[0000874766-24-000016_hig-20231231.htm:192]**   
- Personal Lines: $882 million (**+9% YoY**)  **[0000874766-25-000010_ex991earningsnewsrelease12.htm:17]** **[0000874766-24-000016_hig-20231231.htm:192]**   
- Group Benefits: $1,434 million (**-13% YoY**)  **[0000874766-25-000010_ex991earningsnewsrelease12.htm:17]** **[0000874766-24-000016_hig-20231231.htm:192]**   
- Hartford Funds: $269 million (**+>1,000% YoY**)  **[0000874766-25-000010_ex991earningsnewsrelease12.htm:17]** **[0000874766-24-000016_hig-20231231.htm:192]**   
- Net Income: $853 million (**+11% YoY**)  **[0000874766-25-000010_ex992ifs12312024.htm:4]** **[0000874766-24-000016_hig-20231231.htm:80]**   
- EPS (Basic): $2.93 (+5% YoY)  **[0000874766-25-000010_ex992ifs12312024.htm:4]** **[0000874766-24-000016_hig-20231231.htm:80]**   

ccf9993ea953f821549e56acea80fe822c0945e90df79d9dd80333bfa9573ae9

United States of America

Japan

Other

Total Revenue

a6d4ab3ac20a2b7fa32fac565ba744a642df23f667e5e75caae57f2c5f1971a8

9db28a147daff0bca19139d70a61776893daaaf850d10b08ff541a54ccfe18c4

| Name                  | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jonathan R. Bennett   | Executive Vice President and Head of Group Benefits                      | August 2019         | Jonathan R. Bennett has been the Executive Vice President and Head of Group Benefits since August 2019. He was previously the CFO and Head of Strategy for Property and Casualty and Group Benefits  **[0000874766-24-000016_hig-20231231.htm:163]** **[0000874766-23-000023_hig-20221231.htm:162]** .                                      |
| Claire H. Burns       | Chief Marketing and Communications Officer                               | September 2021      | Claire H. Burns has served as the Chief Marketing and Communications Officer since September 2021. She was previously the Chief Marketing and Strategy Officer at Prudential International  **[0000874766-24-000016_hig-20231231.htm:163]** .                                                 |
| Stephanie C. Bush     | Executive Vice President and Head of Personal Lines (Retiring March 1, 2024) | January 2018        | Stephanie C. Bush has been the Executive Vice President and Head of Personal Lines since January 2018. She announced her retirement effective March 1, 2024  **[0000874766-24-000016_hig-20231231.htm:163]** .                                                                                |
| Beth A. Costello      | Executive Vice President and Chief Financial Officer                     | July 1, 2014        | Beth A. Costello has been the Executive Vice President and Chief Financial Officer since July 1, 2014, overseeing finance, treasury, capital, accounting, investor relations, procurement, and actuarial functions  **[0000874766-24-000016_hig-20231231.htm:163]** **[0000874766-24-000022_hig-20240326.htm:56]** .                      |
| Michael R. Fisher     | Executive Vice President and Property and Casualty Chief Underwriting Officer | May 2019            | Michael R. Fisher has been the Executive Vice President and Property and Casualty Chief Underwriting Officer since May 2019. He was previously the Executive Vice President and Head of Specialty Commercial  **[0000874766-24-000016_hig-20231231.htm:163]** .                               |
| John J. Kinney        | Executive Vice President, Head of Claims & Operations                    | August 2021         | John J. Kinney has been the Executive Vice President, Head of Claims & Operations since August 2021. He was previously the Chief Claims Officer  **[0000874766-24-000016_hig-20231231.htm:163]** .                                                                                             |
| Allison G. Niderno    | Senior Vice President and Controller                                     | March 2023          | Allison G. Niderno has been the Senior Vice President and Controller since March 2023. She was previously Vice President Finance, Head of External Reporting and Investment Finance  **[0000874766-24-000016_hig-20231231.htm:163]** .                                                        |
| Robert W. Paiano      | Executive Vice President and Chief Risk Officer                          | June 2017           | Robert W. Paiano has been the Executive Vice President and Chief Risk Officer since June 2017. He was previously the Senior Vice President & Treasurer  **[0000874766-24-000016_hig-20231231.htm:163]** **[0001959173-24-001159_xsl144X01/primary_doc.xml:1]** .                                                                                   |
| David C. Robinson     | Executive Vice President and General Counsel (Retiring March 1, 2024)    | June 1, 2015        | David C. Robinson has been the Executive Vice President and General Counsel since June 1, 2015. He announced his retirement effective March 1, 2024  **[0000874766-24-000016_hig-20231231.htm:163]** **[0000874766-24-000022_hig-20240326.htm:56]** .                                                                                      |
| Lori A. Rodden        | Executive Vice President and Chief Human Resources Officer               | October 2019        | Lori A. Rodden has been the Executive Vice President and Chief Human Resources Officer since October 2019. She was previously the Senior Vice President and Lead HR Business Partner for various departments  **[0000874766-24-000016_hig-20231231.htm:163]** **[0000874766-23-000023_hig-20221231.htm:162]** .                           |
| Deepa Soni            | Executive Vice President, Head of Technology, Data, Analytics & Information Security | August 2, 2021     | Deepa Soni has been the Executive Vice President, Head of Technology, Data, Analytics & Information Security since August 2, 2021. She will also assume responsibility for customer-facing operations starting March 2024  **[0000874766-24-000049_hig-20240405.htm:57]** **[0000874766-24-000022_hig-20240326.htm:57]** .               |
| Amy M. Stepnowski     | Executive Vice President and Chief Investment Officer                    | August 2020         | Amy M. Stepnowski has been the Executive Vice President and Chief Investment Officer since August 2020. She is also the President of Hartford Investment Management Company (HIMCO)  **[0000874766-24-000016_hig-20231231.htm:163]** .                                                        |
| Adin M. Tooker        | Executive Vice President, Middle & Large Commercial, Global Specialty and Sales and Distribution | November 2022       | Adin M. Tooker has been the Executive Vice President, Middle & Large Commercial, Global Specialty and Sales and Distribution since November 2022. He was previously the EVP and Head of Middle & Large Commercial  **[0000874766-24-000016_hig-20231231.htm:163]** .                           |

f9f17561903b563c98f5fccc16a718104b755851e008b938a0bcea858831bf43

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | July 28, 2022  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**     | July 25, 2024  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**     |
| End Date/Duration        | December 31, 2024  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]** | December 31, 2026  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]** |
| Total additional amount  | **$3.0 billion**  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**  | **$3.3 billion**  **[0000874766-24-000122_hig-20240930.htm:128]** **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**  |
| Remaining authorization  | **$0.2 billion**  **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**     | **$3.3 billion**  **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**     |
| Details                  | Part of $3.5 billion remaining under both programs  **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**  | Part of $3.5 billion remaining under both programs  **[0000874766-24-000122_hig-20240930.htm:62]** **[0000874766-24-000122_hig-20240930.htm:114]**  |

0c4f00d64d6931237171305c980e702537de032d8e6a745b20b39e86f4bf36f6

5d6bbbb4315ae96d768bf417c0506161ba499bfb3e08c387fcda860290dc39f2

**Quarterly guidance for Q4 2024:**
- **Group Benefits Margin**: 8.7%  **[HIG_3403981_12]**  (raised from 8.1%  **[HIG_3394740_14]** )  
- **Personal Lines Target Margins**: Achieve target by mid-2025  **[HIG_3403981_3]**  (no change from prior guidance  **[HIG_3394740_13]** )  
- **Auto Renewal Written Price Increases**: 20%  **[HIG_3403981_3]**  (no change from prior guidance  **[HIG_3394740_2]** )  
- **Commercial Lines Pricing**: Renewal written pricing excluding workers' compensation 9.5%  **[HIG_3403981_3]**  (no prior guidance)  
- **E&S Growth**: $300 million  **[HIG_3403981_24]**  (no prior guidance)  
- **Property Pricing**: Elevated  **[HIG_3403981_27]**  (no prior guidance)  

ddc949c5ef58ae40cfc0092c5ae4aaa4dc725b07519455461e92479a605d16e8

| Name                   | Start Date | End Date | Reason for Change |
|------------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002       | Present  | Current auditor   |
```
Citation: Deloitte & Touche LLP has served as the auditor of The Hartford Financial Services Group, Inc. since 2002.  **[0000874766-24-000016_hig-20231231.htm:168]**

4991eef0161df1c51efc1b3c3405762044a0476af6e2bbe61b1e16d78004814e

- The Hartford's Small Commercial business achieved **9%** overall growth, driven by strategic investments in technology and data capabilities, positioning the company to capture additional market share and sustain consistent growth over time.  **[HIG_3413968_8]**
- The company has effectively managed its homeowners insurance business, generating combined ratios in the **low 90s** over a long period, which compares favorably to the industry, and is confident in its ability to thoughtfully grow this business, even amidst market disruptions.  **[HIG_3413968_11]**
- Management has proactively strengthened general liability reserves by **$130 million**, and is **highly confident** that they have addressed prior issues, positioning the company well for 2025 with expectations to maintain margins consistent with 2024.  **[HIG_3413968_2]** **[HIG_3413968_8]**

b1f7cfdc2f1aa0e3d42d3af4b4665bbb0f84d5ddc60b7150ef3907ede70cbc42

- The company faced increased reserve charges in their **General Liability** line due to **social inflation** and higher claim severity, resulting in a **$130 million** charge this quarter and adjustments to severity assumptions for both prior and current accident years, indicating potential ongoing reserve adequacy concerns.  **[HIG_3413968_13]** ,  **[HIG_3413968_15]** ,  **[HIG_3413968_7]**
- There is exposure to the recent **Los Angeles wildfires**, especially in commercial lines, which may lead to significant catastrophe losses. Although reinsurance coverage exists, there is a risk that losses could be substantial and impact financial results.  **[HIG_3413968_10]**
- The **expense ratio** in **Personal Lines** increased by about **2 points** in the quarter, driven by higher marketing costs and commissions related to new business growth, which may negatively affect profitability.  **[HIG_3413968_19]**

6d39881bf93e99a5636ffa42e500c4bddcd5b33dab50fde0ea19d13dd996341d

1. **General Liability Reserve Charge**  
   **Q:** Explain the $130 million GL reserve charge and confidence in future.  
   **A:** Management acknowledged a $130 million prior year development (PYD) charge in general liability due to increased costs across several accident years, including both 2015–2018 and more recent years. They feel **highly confident** they've put a good portion behind them.  **[HIG_3413968_7]**  Additionally, they've adjusted 2024 loss picks by adding about **1 point** to reflect higher loss cost trends.  **[HIG_3413968_7]**  They've incorporated these trends into pricing models, aiming to maintain margins consistent with 2024.  **[HIG_3413968_7]** 

2. **Reserving Approach and Severity Assumptions**  
   **Q:** Have you changed your approach to GL reserves and severity assumptions?  
   **A:** Management took a different approach this quarter by increasing severity assumptions for unsettled and unreported reserves, resulting in a larger IBNR increase.  **[HIG_3413968_7]**  They're now assuming **low double-digit** severity trends in aggregate for liability lines, with higher trends in umbrella and excess.  **[HIG_3413968_17]**  These assumptions are built into 2025 pricing, and underwriters are executing accordingly.  **[HIG_3413968_17]** 

3. **Commercial Lines Margin Outlook**  
   **Q:** Can you maintain commercial lines margins in 2025?  
   **A:** Despite challenges, management believes they can produce an underlying combined ratio consistent with the **87.9%** achieved in 2024.  **[HIG_3413968_12]**  They've incorporated higher loss cost trends into their assumptions and are confident in their diversified product lines and underwriting discipline.  **[HIG_3413968_12]** 

4. **Impact of California Wildfires**  
   **Q:** What is your exposure to the California wildfires?  
   **A:** The wildfires will impact both commercial and personal lines. Personal lines market share in California is less than **1%**, but they have a larger share in middle market and small commercial.  **[HIG_3413968_10]**  Losses may enter their reinsurance layers starting at **$200 million**, where they retain **60%** and reinsure **40%**.  **[HIG_3413968_10]**  It's unclear if losses will reach higher layers, but they're monitoring the situation closely.  **[HIG_3413968_10]** 

5. **Disability Loss Ratio Increase**  
   **Q:** Why did the disability loss ratio rise by 3.3 points?  
   **A:** The increase is primarily due to elevated Paid Family and Medical Leave (PFML) incidence trends, contributing **3 points** of the rise.  **[HIG_3413968_11]**  Higher long-term disability incidence added **1 point**, partially offset by better recoveries, which improved by **1 point**.  **[HIG_3413968_11]** 

6. **Group Benefits Trends**  
   **Q:** Are disability incidence rates normalizing after being low?  
   **A:** Disability incidence rates are returning to a five-year historical average after being at all-time lows.  **[HIG_3413968_14]**  Management expected this normalization and has reflected it in their pricing and reserving assumptions to avoid future shortfalls.  **[HIG_3413968_14]** 

7. **Growth in Small and Mid-Large Commercial**  
   **Q:** Can you sustain growth in small and mid-large commercial?  
   **A:** Small commercial had a strong year with **9%** growth, and management believes momentum is sustainable due to strategic advantages like technology investments and data.  **[HIG_3413968_8]**  Mid-large commercial growth was **5%**; while the market is competitive, especially in workers' comp, GL, and umbrella, they remain disciplined and confident in gaining market share over time.  **[HIG_3413968_8]** 

8. **Personal Lines Expense Ratio**  
   **Q:** Why did the personal lines expense ratio increase?  
   **A:** The expense ratio rose by about **2 points** in the quarter, driven by higher marketing spend and commissions related to new business growth, particularly in home.  **[HIG_3413968_19]**  Investments in new business are expected to drive premium and policy growth over time.  **[HIG_3413968_19]** 

9. **A&E Reserve Developments**  
   **Q:** Why are you still taking A&E reserve charges?  
   **A:** While claim frequency is decreasing, especially in mesothelioma, severity is increasing as plaintiffs seek higher settlements per claim.  **[HIG_3413968_20]**  Management continues to monitor these trends and adjusts reserves accordingly, noting similar themes as in the past.  **[HIG_3413968_20]** 

10. **Personal Lines Bundling Strategy**  
    **Q:** Is there a risk in selling monoline homeowners policies?  
    **A:** Approximately **75%** of homeowners policies are bundled with auto.  **[HIG_3413968_16]**  Management isn't a big monoline homeowners player, but where they offer it, they do so judiciously to mitigate adverse selection.  **[HIG_3413968_16]**  They've improved modeling and risk selection to confidently grow in the homeowners market while remaining cautious.  **[HIG_3413968_16]** 

3e38783c0357a1914fb88ecdd60bbba3a40d0227f94007fe5e1943db17027120

HIG’s Q4 shows 9% growth in Small Commercial but includes a $130M reserve charge for General Liability. Management remains confident in 2025, aiming to match 2024’s 87.9% combined ratio through higher pricing, disciplined underwriting, and tech-driven efficiency.

9827a53a3b461330089e8c25aaaa3bdebd9ee3072fe42ec6d1020b1b7e17f9b7

**Quarterly guidance for Q1 2025:**  
- **Share repurchases**: $400 million per quarter  **[HIG_3413968_6]**  (no prior guidance)

**Annual guidance for FY 2025:**  
- **Net investment income (excluding Limited Partnerships)**: Expected to be higher  **[HIG_3413968_6]**  (no prior guidance)  
- **Net dividends from operating companies**: $2.5 billion  **[HIG_3413968_6]**  (no prior guidance)  
- **Commercial lines underlying combined ratio**: Expected to remain at 87.9%  **[HIG_3413968_12]**  (no prior guidance)  
- **Personal auto underlying combined ratio**: Mid-90s  **[HIG_3413968_2]**  (no prior guidance)  
- **Group benefits core earnings margin**: 6% to 7%  **[HIG_3413968_2]**  (no prior guidance)  

73790f5abd68aa5179ffcbd15e945a5975573c9b224ede3030da28337bae0907

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2076c3478448f9e708d15ed71313479da0d6ff316bc3fef8f19467dcaad3fc64

- Total Revenue: $6,751 million (+9% YoY)  **[0000874766-23-000112_hig-20230930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   
- Commercial Lines: $3,260 million (+10% YoY)  **[0000874766-23-000112_hig-20230930.htm:15]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   
- Personal Lines: $893 million (+**13%** YoY)  **[0000874766-23-000112_hig-20230930.htm:15]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   
- Hartford Funds: $263 million (+6% YoY)  **[0000874766-23-000112_hig-20230930.htm:15]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   
- Net Income: $767 million (+**18%** YoY)  **[0000874766-23-000112_hig-20230930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   
- EPS (Diluted): $2.55 (+**22%** YoY)  **[0000874766-23-000112_hig-20230930.htm:15]** **[0000874766-24-000122_hig-20240930.htm:7]** **[0000874766-24-000122_hig-20240930.htm:12]**   

b0ed7d120c34399ebc1e1e8eeaf7079bbc675457e060b54ea2c396f4bc05ccfb

5ea3c1ec06e05798228f8230fe4287970be524d04fb8e6717510bfcf86392e0c

595cec7f2e2c4a88014b6c19b83797b55382ed2122778918f227322d1dc6d957

a165802e249e32f8b5650f11bc351e91d31904a71d8df78260f7e48fabe023bc

dd8589455016e35efe1c8425780f2587917fdd4a9ea3d359f3c73a6f5a9f1c57

1. **ROE Guidance Increased**  
   **Q:** What did you mean by anchoring ROE at 15%?  
   **A:** Management clarified that anchoring ROE at **15%** represents a new floor, reflecting higher expectations compared to the previous 14-15% range.  **[HIG_3371813_11]**  They are confident in achieving this and see potential upside, as evidenced by strong 2023 results and a good start in 2024.  **[HIG_3371813_11]** 

2. **Capital Management and Buybacks**  
   **Q:** Will share buybacks increase given higher operating dividends?  
   **A:** Management plans to continue executing the existing share repurchase authorization, with **$350 million** of buybacks expected in Q1, consistent with Q4 levels.  **[HIG_3371813_17]**  While operating company dividends are increasing by **$100 million** in 2024, they do not plan to alter their current share repurchase plans.  **[HIG_3371813_17]** 

3. **Sustainability of Margins**  
   **Q:** Are current strong margins sustainable or at peak levels?  
   **A:** Management believes in continuous improvement and does not see current margins as peak.  **[HIG_3371813_21]**  They are focused on resetting the bar higher and pursuing profitable growth opportunities to enhance shareholder value.  **[HIG_3371813_21]** 

4. **Commercial Lines Margin Outlook**  
   **Q:** How will you maintain margins amid social inflation trends?  
   **A:** Management acknowledges social inflation in casualty lines but remains confident.  **[HIG_3371813_13]**  They've been securing high single to low double-digit rate increases to stay ahead of loss trends.  **[HIG_3371813_13]**  The goal is to keep underlying margins in Commercial Lines consistent with 2023.  **[HIG_3371813_18]** 

5. **Property Growth and Exposure**  
   **Q:** What are your plans for property growth in 2024?  
   **A:** Management aims to expand the property book to **$3 billion** in premium next year.  **[HIG_3371813_22]**  They are pleased with the **20%** growth to **$2.5 billion** in 2023 and see a constructive market for further building a diversified national portfolio.  **[HIG_3371813_22]** 

6. **Group Benefits Margin Outlook**  
   **Q:** Why is the core earnings margin target lower for 2024?  
   **A:** While Group Benefits had an exceptional year with an **8.1%** core earnings margin in 2023, management maintains a **6-7%** long-term target.  **[HIG_3371813_12]**  This accounts for market conditions and rate guarantees, but they expect continued strong contributions from the business.  **[HIG_3371813_12]** 

7. **Small Commercial Growth Prospects**  
   **Q:** What is the outlook for growth in Small Commercial?  
   **A:** Management expects continued growth driven by healthy new business starts, low unemployment, and strong small business sentiment.  **[HIG_3371813_23]**  In 2023, they wrote **$913 million** in new premium, growing every line and achieving exceptional underlying results.  **[HIG_3371813_23]** 

8. **Personal Auto Rate Increases**  
   **Q:** Will you seek further auto rate increases in 2024?  
   **A:** Yes, after achieving a **21.9%** pure rate increase in 2023, they plan to secure an additional **20 points** of rate in 2024.  **[HIG_3371813_10]**  This is crucial for improving the auto underlying combined ratio from **110** to **104** in 2024, aiming for **95-96%** by 2025.  **[HIG_3371813_9]** 

9. **Adverse Development Covers**  
   **Q:** Are you planning new adverse development covers?  
   **A:** Management feels current balance sheet strength reduces the need for new covers.  **[HIG_3371813_20]**  While past covers were appropriate due to different circumstances, any future deals would have to make economic sense for shareholders.  **[HIG_3371813_20]** 

10. **Reserving and Construction Liability**  
    **Q:** Any concerns about reserves in construction liability?  
    **A:** Management is not significantly concerned, having addressed reserving issues from prior years.  **[HIG_3371813_16]**  They adjusted their underwriting and loss picks several years ago, positioning them well in this area.  **[HIG_3371813_16]** 

1e968764b10f81bc8b2e2f68ae1be283ca5e368686ba6b191f757a09991e6999

1. **General Liability Loss Trends**  
   **Q:** Why did GL loss picks increase this quarter?  
   **A:** Management explained that data shows more attorney representation in claims of all sizes, leading to a higher percentage of claims coming in with attorneys, which is increasing rapidly. Additionally, the average settlement rate of claims, including simple slip and falls, is increasing rapidly. These two factors led to a **$32 million** adjustment in prior year picks.  **[HIG_3403981_7]** **[HIG_3403981_22]** 

2. **Commercial Auto Adverse Development**  
   **Q:** Are adverse trends in commercial auto continuing?  
   **A:** Yes, adverse development in commercial auto continued this quarter, primarily related to specific accounts within certain lines. Management is actively managing these exposures by moving larger fleets to loss-sensitive programs or exiting accounts altogether. They are pushing rates hard in auto lines and feel good about current year loss picks.  **[HIG_3403981_18]** **[HIG_3403981_19]** 

3. **Workers' Comp Trends and Reserves**  
   **Q:** What's the outlook for workers' comp reserves and trends?  
   **A:** Workers' comp reserve releases have been significant over the last seven quarters. Management sees trends as generally stable, with medical severity within their assumption of **5%**. They continue to view workers' comp as a highly profitable line but are being selective on new business and sensitive to states taking bigger price adjustments.  **[HIG_3403981_15]** **[HIG_3403981_16]** **[HIG_3403981_17]** 

4. **Commercial Lines Growth and Market Share**  
   **Q:** Can you discuss growth and market share in Commercial Lines?  
   **A:** The company reported solid premium growth across Commercial Lines, with **10%** in Small Commercial, **8%** in Middle Market, and **9%** in Specialty. They believe they are gaining market share through differentiated capabilities, such as improvements in data science, analytics, and underwriting. Submission flows remain strong, and they feel confident about growth prospects.  **[HIG_3403981_11]** **[HIG_3403981_21]** 

5. **Personal Lines Profitability Targets**  
   **Q:** What's the outlook for Personal Lines profitability?  
   **A:** Management aims to return to overall profitability targets, roughly a **15% to 17% ROE**. While they refrained from giving specific combined ratio targets, they are focused on improving margins and feel good about the progress in Personal Lines.  **[HIG_3403981_9]** **[HIG_3403981_23]** 

6. **Group Benefits Margins and Competition**  
   **Q:** What's driving high margins in Group Benefits, and how is competition?  
   **A:** Group Benefits delivered a margin of **8.7%**, well above the **6% to 7%** guidance. Despite a competitive market and sales being down about **15%** from the prior year, persistency remains strong at over **90%**. They are pricing for an endemic state in life insurance, which has impacted sales, but are pleased with new products in absence and paid family leave.  **[HIG_3403981_12]** **[HIG_3403981_13]** **[HIG_3403981_25]** **[HIG_3403981_26]** 

7. **Property Pricing Dynamics**  
   **Q:** Why is property pricing still strong in SME markets?  
   **A:** Property pricing remains strong in the SME space, with pricing accelerating **60 basis points** during the quarter to **12.8%**. Products like Spectrum saw pricing up **60 basis points** to **17.6%**, and general industry property capabilities up **60 basis points** to **8.5%**. Management feels good about being in the SME space where pricing remains firm, unlike in larger property accounts where pricing is softening.  **[HIG_3403981_27]** 

8. **E&S Growth Progress**  
   **Q:** What's the progress on E&S growth targets?  
   **A:** The company is on track to achieve its **$300 million** goal in E&S binding this year. They are benefiting from increased flow to the E&S channels due to social inflation, capturing more of the flow in the small and middle market segments. They see strong momentum in both E&S binding and the wholesale space within Global Specialty.  **[HIG_3403981_24]** 

9. **Homeowners Combined Ratio Improvement**  
   **Q:** Why hasn't homeowners' combined ratio improved more despite rate increases?  
   **A:** Although they have implemented mid-teens rate increases consistently, loss cost trends are increasing, which is why they're putting in the rate. Catastrophe losses were elevated during the quarter, affecting the combined ratio. Management feels they are ahead of loss trends and close to hitting their target margins in total.  **[HIG_3403981_10]** **[HIG_3403981_17]** 

10. **Middle & Large Commercial Growth Outlook**  
    **Q:** How is growth trending in Middle & Large Commercial?  
    **A:** Growth in Middle Market was around **7%** this quarter, slightly lower than the year-to-date growth of **9.9%**. Despite this, they feel really good about growth possibilities as submission flows remain strong and underwriters are active in the marketplace. They believe they will benefit from agents' desire to consolidate carriers.  **[HIG_3403981_21]** **[HIG_3403981_22]** 

11. **A&E Reserve Review Status**  
    **Q:** What's the status of the A&E reserve review?  
    **A:** Management is currently conducting the A&E reserve review and will announce the results with the fourth quarter earnings. They have nothing to speculate on at this time.  **[HIG_3403981_28]** 

12. **Commercial Rate Environment**  
    **Q:** What's driving commercial rate increases despite healthy ROEs?  
    **A:** The pricing environment is driven primarily by loss trends rather than investment income. Management believes it's rational and thoughtful, focused on maintaining margins. Underwriting is challenging, and their teams are making difficult choices every day, with investments in data science and feedback loops being crucial.  **[HIG_3403981_20]** **[HIG_3403981_21]** 

13. **Group Disability Claims Trends**  
    **Q:** Any new trends in group disability claims this year?  
    **A:** No significant new trends have emerged; it's been more of the same as in previous years. They are pleased with their absence and paid family leave products, which are performing well in six states and are complementary to their disability offerings.  **[HIG_3403981_14]** 

14. **Personal Lines Expense Ratio**  
    **Q:** What's happening with the Personal Lines expense ratio?  
    **A:** There is nothing significant to call out regarding the expense ratio. Last quarter, they restarted national advertising and solicitation for their direct response business. They expect the expense ratio to normalize and decrease over time as they gain operating leverage with resumed growth.  **[HIG_3403981_23]** 

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- The Hartford is experiencing strong growth in Commercial Lines, with **double-digit new business growth** in small commercial and middle market, and expects to **continue gaining market share**.  **[HIG_3403981_11]**
- The company maintains high **renewal persistency above 90%** in its Group Benefits segment, indicating strong customer retention.  **[HIG_3403981_25]** **[HIG_3403981_12]**
- **Group Benefits core earnings margin reached 8.7%**, exceeding its guidance range of 6% to 7%, demonstrating excellent profitability.  **[HIG_3403981_12]**

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1. **Commercial Pricing Outlook**  
   **Q:** Will commercial pricing trends continue upward?  
   **A:** Management expects to maintain disciplined pricing in commercial lines, particularly in liability lines, to stay ahead of loss cost trends. They are pleased with current pricing levels, with rates up **6.6%**, including a **9.5%** increase excluding workers' compensation, and higher rates in excess and umbrella lines. They believe the environment will not let up and plan to continue pushing for needed rate increases.  **[HIG_3394740_6]** 

2. **Reserving in GL and Auto**  
   **Q:** Should we be concerned about adverse reserves in GL and auto?  
   **A:** Management acknowledges reserve increases in general liability related to accident years 2016-2019 and a **$10 million** adverse development in commercial auto from 2022 due to a few accounts. They have taken action on these accounts and feel confident about their overall reserving approach, stating that the balance sheet is healthy and they feel good about where they are.  **[HIG_3394740_10]** 

3. **Workers' Comp Loss Trends**  
   **Q:** Impact of Florida legislation on workers' comp severity?  
   **A:** The recent Florida legislation increasing Medicare reimbursements for doctors is expected to have a modest impact on workers' comp severity trends starting in 2025. Management does not anticipate it to be material and plans to adjust pricing accordingly through rate filings.  **[HIG_3394740_11]** 

4. **Property Rate Increases**  
   **Q:** Are property rates still seeing double-digit increases?  
   **A:** Despite some moderation, property rates remain in double digits, with rates up **12.4%** this quarter compared to **14.1%** last quarter. The highest increases are in Small Commercial business owners policies (BOP) and E&S binding divisions. Management notes competition in shared and layered space but continues to execute well in other areas.  **[HIG_3394740_11]** 

5. **Personal Lines Margin Improvement**  
   **Q:** When will Personal Lines hit target margins?  
   **A:** Management expects Personal Lines to reach target margins by mid-**2025**. Sequential increase in combined ratio was primarily due to increased expenses from resuming marketing activities. Loss cost trends are moderating, and they anticipate continued rate earn-in to drive margin improvement over the next 18 months.  **[HIG_3394740_13]** 

6. **Group Benefits Margin and Growth**  
   **Q:** Can you balance margins and growth in Group Benefits?  
   **A:** While acknowledging competitive pressures and a slight decline in sales, management emphasizes maintaining underwriting and pricing discipline. They reported a **10%** core margin in Q2, outperforming their long-term guidance of **6%-7%**, and aim to compete hard without compromising profitability.  **[HIG_3394740_13]** **[HIG_3394740_17]** 

7. **Specialty Growth and Reinsurance Lines**  
   **Q:** Where is Specialty growing, especially in reinsurance?  
   **A:** Specialty lines experienced **14%** growth with an **85.2%** underlying combined ratio. Growth is diversified, with significant contributions from E&S wholesale and global reinsurance growing at **18%**, particularly property reinsurance up **24%**. They focus on niche areas and disciplined underwriting, expecting reinsurance to be a run-rate business of about **$850 million** this year.  **[HIG_3394740_8]** 

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- **Rising loss costs in General Liability due to increased attorney representation and higher settlements have led to a $32 million prior year reserve adjustment.** The company noted that "the percentage of claims coming in with attorney representation is high and is getting higher," and "the average settlement rate of claims... is increasing rapidly."  **[HIG_3403981_7]**
- **Despite mid-teens rate increases in homeowners insurance, the underlying combined ratio hasn't improved significantly**, suggesting that **loss cost trends are increasing and eroding margins**. The company acknowledged, "loss cost trends are increasing. That's why we are putting the rate in there."  **[HIG_3403981_10]**
- **Group Benefits sales are down year-over-year even after adjusting for prior-year one-time items**, indicating potential weakness in this segment. The executive stated, "we had some one-time PFL and PML sales last year... If you take it out, we're still down, but we're down just slightly."  **[HIG_3403981_25]**

8a71c215f5c1b18e039f96deda4e0470b9253f2ee020614cce2caebee918bcd3

- **The Hartford delivered outstanding commercial results, with their best commercial and Group Benefits performance ever**. CEO Christopher Swift emphasized their growth orientation and commitment to resetting the bar higher, stating, "I would never ever bet against us."  **[HIG_3371813_21]**
- **The company expects continued strong growth in Commercial Lines**, benefiting from a favorable macroeconomic environment. Swift noted that early indications in January show continuation of double-digit growth, and they perform well when the economy is strong.  **[HIG_3371813_15]**  Additionally, **Small Commercial is positioned as a growth and earnings engine**, with healthy new business starts and 14 consecutive quarters with a combined ratio of 90 or below.  **[HIG_3371813_23]**
- **The Hartford is in a stronger capital position than in previous years**, with a prudent balance sheet. They plan to continue share buybacks and have sufficient capital to fund expected growth, as operating companies are well-capitalized and expect increased dividends in 2024.  **[HIG_3371813_20]** **[HIG_3371813_14]**

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- **Increased competition in larger segments leading to potential pressure on margins**: The Hartford acknowledges that the market is becoming more competitive, especially in the larger end of each segment, including small, middle, and specialty businesses. This heightened competition could impact future growth and profitability.  **[HIG_3381195_11]**
- **Pullback from public D&O insurance due to an unstable market**: The company is dramatically pulling back on public Directors & Officers (D&O) insurance because the market hasn't stabilized as expected. This reduction will cause the public D&O book to shrink, potentially affecting revenues from this line of business.  **[HIG_3381195_11]**
- **Decline in personal auto policies and lower retention rates due to significant rate increases**: To address increased loss costs from inflationary pressures, changing weather patterns, and social litigation, The Hartford is pushing through sizable rate increases in personal auto. This has led to a **policy count decline of approximately 4%** and lower retention rates, which could negatively impact premiums and customer base in this segment.  **[HIG_3381195_12]**   **[HIG_3381195_13]**

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- **HIG reported adverse prior year reserve development** in General Liability ($32 million) and Commercial Auto ($10 million), particularly in accident years **2015-2019**, indicating potential reserving issues.  **[HIG_3394740_10]**
- In Personal Lines, margins are under pressure, with target margins not expected until **mid-2025**, suggesting ongoing profitability challenges in auto and homeowners.  **[HIG_3394740_13]**
- **Heightened competition** in the Group Benefits business is leading to **lower sales** and growth, with HIG prioritizing margin over growth, which may impact future top-line performance.  **[HIG_3394740_18]** **[HIG_3394740_14]**

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- **The Hartford's specialty business achieved over $1 billion in quarterly written premium for the first time**, with diversified growth in wholesale and reinsurance. The reinsurance business is growing at **18% overall**, capitalizing on market dislocation to deliver **superior risk-adjusted returns**.  **[HIG_3394740_8]**
- **Shift towards property insurance is enhancing margins**, with property written premiums expected to reach **nearly $3 billion this year**, up from **$2 billion a couple of years ago**, representing growth of approximately **20%**. This is due to significant investments in risk management tools and talent, enabling effective competition and navigation of market complexities.  **[HIG_3394740_19]**
- **Increased share repurchase authorization by 10% to $3.3 billion**, reflecting strong earnings and capital generation across businesses. The company plans to **increase quarterly share repurchases to approximately $400 million** starting in the third quarter.  **[HIG_3394740_7]**

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- **Analysts are concerned that current exceptional margins may represent peak levels that are not sustainable.** When asked about the possibility of margins being at their peak, CEO Christopher Swift acknowledged the concern but expressed confidence in pushing to perform better.  **[HIG_3371813_21]**
- **Environmental remediation costs are increasing, particularly related to PFAS (per- and polyfluoroalkyl substances), and the company's Adverse Development Cover (ADC) for asbestos and environmental liabilities is nearing exhaustion.** CFO Beth Bombara noted increases in remediation costs and acknowledged the need to consider the impact as the ADC is closer to being used up.  **[HIG_3371813_25]**
- **The company is significantly growing its property insurance book, increasing exposure to catastrophe and weather-related losses.** CEO Christopher Swift mentioned plans to increase property premiums to about **$3 billion** next year, up from **$2.5 billion** (a **20%** growth over the prior year), which could pose risks if catastrophic events occur.  **[HIG_3371813_22]**

6911fdcd3bd5bc851f2983df97583a7670724e20a46925c67c5d51a7c572edb9

1. **Personal Lines Profitability**  
   **Q:** When will Personal Lines return to profitability?  
   **A:** The company expects Personal Lines to achieve profitability this year and reach target margins in 2025. They've implemented significant rate increases of **25.7%** in auto and **15%** in home. Auto loss cost trends are moderating from **mid-teens in 2023** to **low double digits in 2024**, leading to an expected **5 to 6 point** improvement in the underlying auto loss ratio in 2024.  **[HIG_3381195_8]** 

2. **Commercial Lines Pricing**  
   **Q:** How are Commercial Lines pricing trends evolving?  
   **A:** Management sees stability in Commercial Lines pricing with continued strong momentum. Excluding workers' compensation, written renewal rate increases rose to **7%**. They expect to maintain margins as loss trends have increased modestly from 2023 to 2024, and the market remains disciplined.  **[HIG_3381195_9]** 

3. **Long-Tail Reserving Confidence**  
   **Q:** Any concerns about long-tail reserves in liability?  
   **A:** The company is confident in its loss picks and reserving practices. They've improved underwriting, adjusted terms and conditions, and exited unprofitable lines like primary GL high-hazard since 2017. They believe they are better positioned than competitors regarding reserving adequacy.  **[HIG_3381195_7]** 

4. **Group Life Sales Pressure**  
   **Q:** Why are group life sales facing pressure?  
   **A:** Group life sales are lighter due to disciplined pricing amid higher post-pandemic mortality rates. The company believes mortality remains at an endemic state and is pricing products accordingly, which may impact sales if competitors hold different views.  **[HIG_3381195_6]** 

5. **Property Catastrophe Exposure**  
   **Q:** How is property growth affecting cat exposure?  
   **A:** Despite growing the property business by **17%**, the company is not increasing its catastrophe appetite. They manage exposures by maintaining ratios like annual aggregate loss to premium, ensuring tail risk metrics align with premium growth.  **[HIG_3381195_10]** 

6. **Auto Rate Increases and Retention**  
   **Q:** How do auto rate hikes impact retention?  
   **A:** Significant auto rate increases are leading to lower retention, which the company views as a necessary trade-off for profitability. Policy count is expected to decline by about **4%**, aligning with their expectations as they focus on margin improvement.  **[HIG_3381195_12]** 

7. **Excess and Surplus Growth**  
   **Q:** Will E&S lines continue to grow strongly?  
   **A:** Yes, strong growth is expected in both E&S binding and brokerage channels. The company sees significant opportunities in primary and excess casualty, with accelerating rates, especially in areas where they are currently undersized.  **[HIG_3381195_17]** 

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- **Strong pricing momentum in Commercial Lines**, with renewal written pricing increasing to 9%, driven by the Global Specialty segment, indicating HIG's ability to capitalize on favorable market conditions.  **[HIG_3381195_15]**
- **Proactive underwriting and risk management actions** have strengthened HIG's reserve positions, with significant rate increases since 2019 and reduced exposure to high-risk areas, positioning the company better than competitors.  **[HIG_3381195_23]**
- **Stable margins and optimistic outlook for 2024**, with expectations of consistent outcomes compared to 2023, supported by a disciplined market and supportive pricing environment in Commercial Lines.  **[HIG_3381195_9]**

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Hartford Financial Services Group Inc (HIG)

Financials