Hartford Insurance Group (HIG) 10-K risk factor changes: FY2022 vs FY2021

[added: Decreases in value could have a material adverse] effect on our business, [removed: financial condition,] results of [removed: operations] [added: operations, financial condition] or liquidity.

State insurance departments regulate many of the premium rates we charge and also propose rate changes for the benefit of the [removed: property and casualty] [added: insurance] consumer at the expense of the insurer, which may not allow us to reach targeted levels of profitability.

For more on international regulatory risks, see the Risk Factor, “Regulatory and legislative developments could have a material adverse impact on our business, financial condition, results of operations [removed: and] [added: or] liquidity.”

Additionally, the property and casualty and group benefits insurance markets have been historically cyclical, experiencing periods characterized by relatively high levels of price competition, less restrictive underwriting standards, more [removed: expansive coverage offerings, multi-year rate guarantees and declining premium rates, followed by periods of relatively low levels of competition, more selective underwriting standards, more coverage restrictions and increasing premium rates.]

In all of our property and casualty and group benefits insurance product lines, there is a risk that the premium we charge may [added: ultimately prove to be inadequate as reported losses emerge.]

Our principal competitors are other property and casualty insurers, group benefits providers and providers of mutual funds and exchange-traded [removed: products.][added: funds ("ETFs").]

[removed: While] there is substantial uncertainty about the timing, penetration and reliability of such technologies, and the legal frameworks that may apply, such as to autonomous vehicles, any such impacts could have a material adverse effect on our business and results of operations.

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We distribute our insurance products, mutual funds and [removed: ETPs] [added: ETFs] through a variety of distribution channels and financial intermediaries, including brokers, independent agents, wholesale agents, reinsurance brokers, broker-dealers, banks, registered investment advisors, affinity partners, our own internal sales force and other third-party organizations.

In addition, the independent agent and broker distribution channel is [removed: consolidating] [added: consolidating,] which could result in a larger proportion of written premium being concentrated among fewer agents and brokers, potentially increasing our cost of acquiring new business.

An interruption in our relationship with certain of these third parties could materially affect our ability to market our products and could have a material adverse effect on our business, financial condition, results of operations [removed: and] [added: or] liquidity.

In addition, these and other social, economic, political and environmental issues may either extend coverage beyond our underwriting intent or [removed: increase the frequency or severity of claims.]

Some of these changes, advances or activities may not become apparent until some time after we have issued insurance contracts that are affected by the changes, advances or activities and/or we may be unable to compensate for such losses through future pricing [added: and underwriting.]

As a result, the full extent of liability under our insurance contracts may not be known for many years after a contract is issued, and this liability may have a material adverse effect on our business, financial condition, results of operations [removed: and] [added: or] liquidity at the time it becomes known.

These events could materially adversely affect our business, financial condition, results of operations [removed: and] [added: or] liquidity.

In the United States, statutory accounting standards and statutory capital and reserve requirements for these entities are prescribed by the applicable [added: insurance regulators and the NAIC.]

Countries in which our international insurance subsidiaries are incorporated or deemed commercially domiciled are subject to [removed: regulatory] [added: minimum capital] requirements as defined by the [added: applicable] regulatory [removed: jurisdiction,] [added: regime,] including Solvency [removed: II.][added: II subject to amendments proposed in the U.K. following the U.K.'s withdrawal from the European Union.]

Among other factors, rating agencies consider the level of statutory capital and surplus of our U.S. insurance subsidiaries as well as the level of [removed: a measure of] Generally Accepted Accounting Principles ("GAAP") capital held by the Company in determining the [removed: Company's financial strength and credit ratings.]

Losses due to nonperformance or defaults by counterparties can have a material adverse effect on the value of our [removed: investments,] [added: investments and] reduce our profitability or sources of liquidity.

Defaults by these counterparties on their obligations to us could have a material adverse effect on the value of our investments, financial condition, results of operations [removed: and] [added: or] liquidity.

The inability or unwillingness of any reinsurer or retrocessionaire to meet its financial obligations to us, including the impact of any insolvency or rehabilitation proceedings involving a reinsurer or retrocessionaire that could affect the Company's access to collateral held in trust, could have a material adverse effect on our financial condition, results of operations [removed: and] [added: or] liquidity.

[added: Both proprietary] and third party models we use incorporate numerous assumptions and forecasts about the future level and variability of interest rates, capital requirements, loss frequency and severity, currency exchange rates, policyholder behavior, equity markets and inflation, among others.

[removed: Further, rapidly changing or unprecedented credit and equity] market conditions could materially impact the valuation of securities and the period-to-period changes in value could vary significantly.

[removed: Decreases in value] [added: Regulatory and legislative developments] could have a material adverse [removed: effect] [added: impact] on our business, [added: financial condition,] results of [removed: operations, financial condition and] [added: operations or] liquidity.

[removed: In the] event of a disaster such as a natural catastrophe, a pandemic, civil unrest, an industrial accident, a cyber-attack, a blackout, a terrorist attack (including conventional, nuclear, biological, chemical or radiological) or war, systems upon which we rely may be inaccessible to our employees, customers or business partners for an extended period of time.

Our businesses must comply with regulations to control the privacy of customer, employee and third party data, and state, federal and international regulations regarding data [removed: privacy, including the European Union General Data Protection Regulation and California Consumer Privacy Act,] [added: privacy] are becoming increasingly more onerous.

Third parties, including third party administrators and cloud-based systems, are also subject to cyber-attacks and breaches of confidential information, along with the other risks outlined above, any one of which may result in our incurring substantial costs and other negative consequences, including a material adverse effect on our business, reputation, financial condition, results of operations [removed: and] [added: or] liquidity.

Our ability to execute on capital management [removed: plans, expense reduction initiatives] [added: plans] and other actions is subject to material challenges, uncertainties and risks.

We may take future actions, including acquisitions, divestitures or restructurings that may involve additional uncertainties and risks that negatively impact our business, financial condition, results of operations [added: or liquidity] and [removed: liquidity.][added: could impact our ability to execute our capital management plans.]

[removed: We could be adversely affected by the acquisition due to unanticipated performance issues and additional expense, unforeseen liabilities, transaction-related] charges, downgrades by third-party rating agencies, diversion of management time and resources to integration challenges, loss of key employees, regulatory requirements, exposure to tax liabilities, amortization of expenses related to intangibles and charges for impairment of long-term assets or goodwill.

We may be unable to distribute as much capital to the holding company as planned due to regulatory restrictions or other [removed: reasons that] [added: reasons, or we] may [added: be required to contribute capital to a subsidiary, either of which could] adversely affect our liquidity.

The expected benefits of acquired or divested businesses may not be realized and involve additional uncertainties and risks that may negatively impact our business, financial condition, results of operations [removed: and] [added: or] liquidity.

Our inability to attract and retain key personnel could have a material adverse effect on our financial condition [removed: and] [added: or] results of operations.

We also may be subject to costly litigation in the event that another party alleges our operations or activities infringe upon their intellectual property rights, including patent rights, or violate license usage [removed: rights.]

Any such intellectual property claims and any resulting litigation could result in significant expense and liability for damages, and in some circumstances we could be enjoined from providing certain products or services to our customers, or utilizing and benefiting from certain patent, copyrights, trademarks, trade secrets or licenses, or alternatively could be required to enter into costly licensing arrangements with third parties, all of which could have a material adverse effect on our business, results of operations [removed: and] [added: or] financial condition.

[removed: Regulatory and legislative developments] [added: such catastrophic events until they occur, claims from catastrophic events] could have a material adverse [removed: impact] [added: effect] on our business, financial condition, results of operations [removed: and] [added: or] liquidity.

It is unclear whether and to what extent [removed: Congress] [added: Congress, the current Administration or individual states] will continue to pursue these types of [removed: reforms,] [added: proposals,] and how those changes might impact the Company, its business, financial conditions, results of operations [removed: and] [added: or] liquidity.

Our international insurance subsidiaries are subject to the laws and regulations of the relevant jurisdictions in which they operate, including the requirements of the [removed: Prudential Regulation Authority] [added: PRA] and the [removed: Financial Conduct Authority] [added: FCA] in the [removed: U.K] [added: U.K, the Bermuda Monetary Authority in Bermuda] and the Insurance Authority in Hong Kong.

Our Lloyd’s Syndicate is also subject to management and supervision by the Council of Lloyd’s, which has wide discretionary powers to regulate members’ underwriting at Lloyd’s, as well as regulations [removed: imposed by overseas regulators where the Lloyd’s Syndicate conducts business.]

In addition, future regulatory initiatives could be adopted at the federal, state and international level that could [removed: impact] [added: affect] the profitability of our businesses.

The amount we charge for catastrophe exposure may be inadequate if the frequency or severity of catastrophe losses changes over time or if the models we use to estimate the exposure prove inadequate.

In addition, regulators or legislators could limit our ability to charge adequate pricing for catastrophe exposures or shift more responsibility for covering risk.

Terrorism is an example of a significant man-made potential catastrophe.

Private sector catastrophe reinsurance is limited and generally unavailable for terrorism losses caused by attacks with nuclear, biological, chemical or radiological weapons.

In addition, workers' compensation policies generally do not have exclusions or limitations for terrorism losses.

Reinsurance coverage from the federal government under the Terrorism Risk Insurance Program (the "Program") Reauthorization Act of 2019 (“TRIPRA 2019”) is also limited and only applies for certified acts of terrorism that exceed a certain threshold of industry losses.

Accordingly, the effects of a terrorist attack in the geographic areas we serve may result in claims and related losses for which we do not have adequate reinsurance.

TRIPRA 2019 also requires that the federal government create the following reports, which could lead to additional legislation or regulation: (1) Treasury Department to include in its biennial report on the effectiveness of the Program an evaluation of the availability and affordability of terrorism risk insurance for places of worship; and (2) Government Accountability Office report to analyze and address the vulnerabilities and potential costs of cyber terrorism, to assess adequacy of coverage under the Program, and to make recommendations for future legislative changes to address evolving cyber terrorism risks.

Further, the continued threat of terrorism and the occurrence of terrorist attacks, as well as heightened security measures and military action in response to these threats and attacks or other geopolitical or military crises, may cause significant volatility in global financial markets, disruptions to commerce and reduced economic activity.

These consequences could have an adverse effect on the value of the assets in our investment portfolio.

Terrorist attacks also could disrupt our operation centers.

In addition, TRIPRA 2019 expires on December 31, 2027 and if the U.S. Congress does not reauthorize the program or significantly reduces the government’s share of covered terrorism losses, the Company’s exposure to terrorism losses could increase materially unless it can purchase alternative terrorism reinsurance protection in the private markets at affordable prices or takes actions to materially reduce its exposure in lines of business subject to terrorism risk.

For a further discussion of TRIPRA, see Part II, Item 7, MD&A - Enterprise Risk Management - Insurance Risk Management, Reinsurance as a Risk Management Strategy.

Cyber risk exposure exists through stand-alone cyber policies as well as cyber coverage endorsements on some property, general liability, management liability and directors and officers policies.

Increasing frequency of cyber attacks and the evolving nature of cyber risk taking place across the globe may potentially lead to increased insured losses across the industry and for the businesses we insure.

Our insureds may be increasingly exposed to cyber-related attacks with insured losses to property (including data and systems), breach of data, ransom payments and business interruption.

Geopolitical crises or hostile actions taken by nation states or terrorist

organizations may heighten the risk of cyber-attacks on companies we insure and on our own operations.

As a result, it is possible that any, or a combination of all, of these factors related to a catastrophe, or multiple catastrophes, whether natural or man-made, can have a material adverse effect on our business, financial condition, results of operations or liquidity.

expansive coverage offerings, multi-year rate guarantees and declining premium rates, followed by periods of relatively low levels of competition, more selective underwriting standards, more coverage restrictions and increasing premium rates.

While

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increase the frequency or severity of claims.

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Company's financial strength and credit ratings.

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Further, rapidly changing or unprecedented credit and equity

In the

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Our increased use of open source software, cloud technology and software as a service can make it more difficult to identify and remedy such situations due to the disparate location of code utilized in our operations.

We could be adversely affected by the acquisition due to unanticipated performance issues and additional expense, unforeseen liabilities, transaction-related

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rights.

For example, federal and state legislative efforts on Paid Family and Medical Leave, data privacy and cyber security, risk-based pricing and ESG practices could have unanticipated consequences for the Company and its businesses.

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imposed by overseas regulators where the Lloyd’s Syndicate conducts business.

Following the U.K.’s withdrawal from the European Union, the U.K entered into a free trade agreement with the E.U. on December 30, 2020.

Under this agreement, a Trade Partnership Committee meets on a regular basis to discuss areas of cooperation.

It is possible that deliberations of this Trade Partnership Committee could affect how U.K. domiciled financial services and insurance firms are regulated.

Lawmakers and regulators at the federal, state and international levels are enacting laws and promulgating regulations and guidance related to climate change, with conflicts from jurisdiction to jurisdiction possible, which may impose additional costs on the Company, or expose us to new or additional risks.

ultimately prove to be inadequate as reported losses emerge.

and underwriting.

insurance regulators and the NAIC.

Both proprietary

For example, further reforms to the Affordable Care Act, and potential modifications of the Dodd-Frank Act, including expansion of the role of the Federal Insurance Office ("FIO") or repeal of the McCarran-Ferguson Act, could have unanticipated consequences for the Company and its businesses.

There is continued uncertainty as to whether and how the U.K. might continue to access the E.U. Single Market now that the U.K. has left the E.U. following the conclusion of the Trade and Cooperation Agreement on December 30, 2020.

There is the prospect of "equivalence" decisions to provide the U.K. with access, but these would be designed to cover a limited range of financial services activity and not offer permanent market access.

In addition, the Federal Reserve Board and the International Association of Insurance Supervisors ("IAIS") continue to advance the development of insurance group capital standards.

The Covered Agreement between the U.S. and European Union, as well as the Covered Agreement between the U.S. and the U.K., provide a 60-month period (expiring September 22, 2022) for the U.S. to implement a "worldwide group capital calculation" for U.S. groups.

If this deadline is not met, European Union member states and the U.K. each could potentially subject U.S. groups doing business in the EU and the U.K. to their own group supervision requirements, possibly including imposition of Solvency II's group capital standard.

There is an increasing risk that, in the context of tax reform in

Properties

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | December 31, [removed: 2021] [added: 2022] | | | | | | | | | | | | | | | | | | | | | December 31, [removed: 2020] [added: 2021] | | | | | | | | | | | | | | | | | |

| Consumer loans | | | $ | [removed: 959] [added: 1,538] | | $ | — | | $ | [removed: 11] [added: —] | | $ | [removed: (2)] [added: (41)] | | $ | [removed: 968] [added: 1,497] | | [removed: 2.3] [added: 4.1] | | % | | | | $ | [removed: 1,396] [added: 959] | | $ | — | | $ | [removed: 35] [added: 11] | | $ | [removed: —] [added: (2)] | | $ | [removed: 1,431] [added: 968] | | [removed: 3.2] [added: 2.3] | | % |

| Other | | | [removed: 166] [added: 478] | | | — | | | [removed: 2] [added: —] | | | [removed: (1)] [added: (34)] | | | [removed: 167] [added: 444] | | | [removed: 0.4] [added: 1.3] | | % | | | | [removed: 129] [added: 166] | | | — | | | [removed: 4] [added: 2] | | | [removed: —] [added: (1)] | | | [removed: 133] [added: 167] | | | [removed: 0.3] [added: 0.4] | | % |

| Interest only | | | [removed: 238] [added: 184] | | | — | | | [removed: 12] [added: 5] | | | [removed: (1)] [added: (15)] | | | [removed: 249] [added: 174] | | | [removed: 0.6] [added: 0.5] | | % | | | | [removed: 280] [added: 238] | | | — | | | [removed: 10] [added: 12] | | | [removed: (2)] [added: (1)] | | | [removed: 288] [added: 249] | | | 0.6 | | % |

| Basic industry | | | [removed: 761] [added: 797] | | | — | | | [removed: 34] [added: 1] | | | [removed: (5)] [added: (64)] | | | [removed: 790] [added: 734] | | | [removed: 1.8] [added: 2.0] | | % | | | | [removed: 727] [added: 761] | | | — | | | [removed: 69] [added: 34] | | | [removed: (1)] [added: (5)] | | | [removed: 795] [added: 790] | | | 1.8 | | % |

| Capital goods | | | [removed: 1,442] [added: 1,380] | | | — | | | [removed: 84] [added: 2] | | | [removed: (9)] [added: (117)] | | | [removed: 1,517] [added: 1,265] | | | 3.5 | | % | | | | [removed: 1,488] [added: 1,442] | | | — | | | [removed: 148] [added: 84] | | | [removed: (11)] [added: (9)] | | | [removed: 1,625] [added: 1,517] | | | [removed: 3.6] [added: 3.5] | | % |

| Consumer cyclical | | | [removed: 1,161] [added: 1,100] | | | [removed: (1)] [added: —] | | | [removed: 50] [added: —] | | | [removed: (5)] [added: (97)] | | | [removed: 1,205] [added: 1,003] | | | 2.8 | | % | | | | [removed: 1,434] [added: 1,161] | | | (1) | | | [removed: 108] [added: 50] | | | [removed: (1)] [added: (5)] | | | [removed: 1,540] [added: 1,205] | | | [removed: 3.4] [added: 2.8] | | % |

| Consumer non-cyclical | | | [removed: 2,473] [added: 2,102] | | | — | | | [removed: 134] [added: 6] | | | [removed: (8)] [added: (188)] | | | [removed: 2,599] [added: 1,920] | | | [removed: 6.1] [added: 5.3] | | % | | | | [removed: 2,878] [added: 2,473] | | | — | | | [removed: 314] [added: 134] | | | [removed: (4)] [added: (8)] | | | [removed: 3,188] [added: 2,599] | | | [removed: 7.1] [added: 6.1] | | % |

| Financial services | | | [removed: 4,648] [added: 4,923] | | | — | | | [removed: 214] [added: 8] | | | [removed: (20)] [added: (441)] | | | [removed: 4,842] [added: 4,490] | | | [removed: 11.3] [added: 12.4] | | % | | | | [removed: 4,523] [added: 4,648] | | | [removed: (21)] [added: —] | | | [removed: 398] [added: 214] | | | [removed: (4)] [added: (20)] | | | [removed: 4,896] [added: 4,842] | | | [removed: 10.9] [added: 11.3] | | % |

| Tech./comm. | | | [removed: 2,658] [added: 2,312] | | | [removed: —] [added: (2)] | | | [removed: 216] [added: 9] | | | [removed: (11)] [added: (249)] | | | [removed: 2,863] [added: 2,070] | | | [removed: 6.7] [added: 5.7] | | % | | | | [removed: 2,651] [added: 2,658] | | | — | | | [removed: 370] [added: 216] | | | [removed: (3)] [added: (11)] | | | [removed: 3,018] [added: 2,863] | | | 6.7 | | % |

| Transportation | | | [removed: 744] [added: 731] | | | — | | | [removed: 43] [added: 1] | | | [removed: (3)] [added: (81)] | | | [removed: 784] [added: 651] | | | 1.8 | | % | | | | [removed: 747] [added: 744] | | | — | | | [removed: 85] [added: 43] | | | (3) | | | [removed: 829] [added: 784] | | | 1.8 | | % |

| Other | | | [removed: 535] [added: 502] | | | — | | | [removed: 23] [added: —] | | | [removed: (3)] [added: (51)] | | | [removed: 555] [added: 451] | | | [removed: 1.3] [added: 1.2] | | % | | | | [removed: 480] [added: 535] | | | — | | | [removed: 37] [added: 23] | | | [removed: —] [added: (3)] | | | [removed: 517] [added: 555] | | | [removed: 1.1] [added: 1.3] | | % |

| Foreign govt./govt. agencies | | | [removed: 883] [added: 596] | | | — | | | [removed: 33] [added: —] | | | [removed: (6)] [added: (49)] | | | [removed: 910] [added: 547] | | | [removed: 2.1] [added: 1.5] | | % | | | | [removed: 842] [added: 883] | | | — | | | [removed: 77] [added: 33] | | | [removed: —] [added: (6)] | | | [removed: 919] [added: 910] | | | [removed: 2.0] [added: 2.1] | | % |

| Tax-exempt | | | [removed: 6,394] [added: 5,656] | | | — | | | [removed: 704] [added: 91] | | | [removed: (1)] [added: (367)] | | | [removed: 7,097] [added: 5,380] | | | [removed: 16.6] [added: 14.9] | | % | | | | [removed: 7,480] [added: 6,394] | | | — | | | [removed: 831] [added: 704] | | | [removed: —] [added: (1)] | | | [removed: 8,311] [added: 7,097] | | | [removed: 18.5] [added: 16.6] | | % |

| Non-agency | | | [removed: 2,101] [added: 2,277] | | | — | | | [removed: 11] [added: —] | | | [removed: (16)] [added: (312)] | | | [removed: 2,096] [added: 1,965] | | | [removed: 4.9] [added: 5.4] | | % | | | | [removed: 1,755] [added: 2,101] | | | — | | | [removed: 41] [added: 11] | | | [removed: (1)] [added: (16)] | | | [removed: 1,795] [added: 2,096] | | | [removed: 4.0] [added: 4.9] | | % |

| Alt-A | | | [removed: 12] [added: 7] | | | — | | | [removed: 1] [added: —] | | | — | | | [removed: 13] [added: 7] | | | — | | % | | | | [removed: 27] [added: 12] | | | — | | | [removed: 2] [added: 1] | | | — | | | [removed: 29] [added: 13] | | | [removed: 0.1] [added: —] | | % |

| Sub-prime | | | [removed: 160] [added: 65] | | | — | | | [removed: 4] [added: —] | | | — | | | [removed: 164] [added: 65] | | | [removed: 0.4] [added: 0.2] | | % | | | | [removed: 355] [added: 160] | | | — | | | [removed: 9] [added: 4] | | | — | | | [removed: 364] [added: 164] | | | [removed: 0.8] [added: 0.4] | | % |

| Total fixed maturities, AFS | | | $ | [removed: 40,788] [added: 39,533] | | $ | [removed: (1)] [added: (12)] | | $ | [removed: 2,204] [added: 152] | | $ | [removed: (144)] [added: (3,442)] | | $ | [removed: 42,847] [added: 36,231] | | 100.0 | | % | | | | $ | [removed: 41,561] [added: 40,788] | | $ | [removed: (23)] [added: (1)] | | $ | [removed: 3,560] [added: 2,204] | | $ | [removed: (63)] [added: (144)] | | $ | [removed: 45,035] [added: 42,847] | | 100.0 | | % |

| Fixed maturities, [removed: FVO \[2\]] [added: FVO] | | | | | | | | | | | | | | | $ | [removed: 160] [added: 333] | | | | | | | | | | | | | | | | | | | | $ | [removed: —] [added: 160] | | | | |

*\[1\]Includes securities with pools of loans issued by the Small Business Administration which are backed by the full faith and credit of the U.S. [removed: government..*][added: government.*]

The fair value of fixed maturities, AFS decreased as compared [removed: with] [added: to] December 31, [removed: 2020,] [added: 2021,] primarily due to a [removed: decrease] [added: decline] in valuations due to higher interest [removed: rates, partially offset by tighter][added: rates and wider credit spreads.]

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[added: | BSA | | | Boy Scouts of America | | | MD&A | | |] Management's Discussion and Analysis of Financial [removed: Condition] [added: Conditions] and Results of [removed: Operations][added: Operations | | | | | |]

[removed: RMBS, consumer cyclical and non-cyclical corporate bonds, consumer loans, and agency CMBS,] [added: U.S. treasuries,] while primarily increasing holdings in [removed: U.S. treasuries,] [added: agency and] non-agency [removed: RMBS, CLOs,] [added: RMBS] and [removed: CMBS bonds.][added: consumer loans.]

Exposure to CMBS and RMBS as of December 31, [removed: 2020][added: 2022]

| Alt-A | | | — | | | — | | | [removed: 3] [added: —] | | | [removed: 3] [added: —] | | | [removed: 2] [added: —] | | | [removed: 2] [added: —] | | | [removed: 2] [added: 1] | | | [removed: 2] [added: 1] | | | [removed: 20] [added: 6] | | | [removed: 22] [added: 6] | | | [removed: 27] [added: 7] | | | [removed: 29] [added: 7] | | |

[removed: *\[1\]Includes] [added: *\[1\]Includes] securities with pools of loans issued by the Small Business Administration which are backed by the full faith and credit of the U.S. government.*

As of December 31, [removed: 2020,] [added: 2022,] mortgage loans had an amortized cost of [removed: $4.5] [added: $6.0] billion and carrying value of [removed: $4.5] [added: $6.0] billion, with an ACL of [removed: $38.][added: $36.]

The Company funded [removed: $1.3 billion] [added: $913 million] of commercial mortgage loans with a weighted average loan-to-value (“LTV”) ratio of [removed: 57%] [added: 56%] and a weighted average yield of [removed: 2.9%] [added: 3.6%] during the twelve months ended December 31, [removed: 2021.][added: 2022.]

The Company continues to originate commercial mortgage loans in high growth markets across the country focusing primarily on institutional-quality [removed: industrial, multi-family,] [added: multi-family] and [removed: retail] [added: industrial] properties with strong LTV ratios.

There were no mortgage loans held for sale as of December 31, [removed: 2021] [added: 2022,] or December 31, [removed: 2020.][added: 2021.]

| | | | December 31, [removed: 2021] [added: 2022] | | | | | | | | | | | | December 31, [removed: 2020] [added: 2021] | | | | | | | | |

| General Obligation | | | $ | [removed: 910] [added: 863] | | $ | [removed: 1,031] [added: 838] | | [removed: AA+] [added: AA] | | | | | | $ | [removed: 1,082] [added: 910] | | $ | [removed: 1,232] [added: 1,031] | | AA+ | | |

| Pre-refunded \[1\] | | | [removed: 487] [added: 235] | | | [removed: 519] [added: 242] | | | AAA | | | | | | [removed: 889] [added: 487] | | | [removed: 940] [added: 519] | | | AAA | | |

| Transportation | | | [removed: 1,404] [added: 1,435] | | | [removed: 1,579] [added: 1,342] | | | A+ | | | | | | [removed: 1,441] [added: 1,404] | | | [removed: 1,636] [added: 1,579] | | | A+ | | |

| Health Care | | | [removed: 1,274] [added: 1,132] | | | [removed: 1,397] [added: 1,012] | | | A+ | | | | | | [removed: 1,273] [added: 1,274] | | | [removed: 1,407] [added: 1,397] | | | A+ | | |

| Leasing \[2\] | | | [removed: 813] [added: 714] | | | [removed: 874] [added: 659] | | | AA- | | | | | | [removed: 905] [added: 813] | | | [removed: 985] [added: 874] | | | AA- | | |

| Education | | | [removed: 670] [added: 601] | | | [removed: 748] [added: 572] | | | AA | | | | | | [removed: 732] [added: 670] | | | [removed: 824] [added: 748] | | | AA | | |

| Water & Sewer | | | [removed: 504] [added: 411] | | | [removed: 538] [added: 384] | | | AA | | | | | | [removed: 644] [added: 504] | | | [removed: 694] [added: 538] | | | AA | | |

| Sales Tax | | | [removed: 370] [added: 304] | | | [removed: 436] [added: 295] | | | AA | | | | | | [removed: 394] [added: 370] | | | [removed: 464] [added: 436] | | | AA | | |

| CLO | | | 3,040 | | | — | | | 3 | | | (102) | | | 2,941 | | | 8.1 | | % | | | | 3,019 | | | — | | | 8 | | | (2) | | | 3,025 | | | 7.1 | | % |

| Agency \[1\] | | | 1,268 | | | (10) | | | 14 | | | (115) | | | 1,157 | | | 3.2 | | % | | | | 1,390 | | | — | | | 75 | | | (5) | | | 1,460 | | | 3.4 | | % |

| Bonds | | | 2,263 | | | — | | | 2 | | | (228) | | | 2,037 | | | 5.6 | | % | | | | 2,327 | | | — | | | 92 | | | (9) | | | 2,410 | | | 5.6 | | % |

| Energy | | | 1,076 | | | — | | | 3 | | | (92) | | | 987 | | | 2.7 | | % | | | | 1,405 | | | — | | | 99 | | | (2) | | | 1,502 | | | 3.5 | | % |

| Utilities | | | 1,871 | | | — | | | 3 | | | (212) | | | 1,662 | | | 4.6 | | % | | | | 1,917 | | | — | | | 141 | | | (8) | | | 2,050 | | | 4.8 | | % |

| Taxable | | | 1,062 | | | — | | | 2 | | | (148) | | | 916 | | | 2.5 | | % | | | | 1,079 | | | — | | | 83 | | | (2) | | | 1,160 | | | 2.7 | | % |

| Agency | | | 1,865 | | | — | | | 2 | | | (196) | | | 1,671 | | | 4.6 | | % | | | | 1,337 | | | — | | | 44 | | | (11) | | | 1,370 | | | 3.2 | | % |

| U.S. Treasuries | | | 2,440 | | | — | | | — | | | (243) | | | 2,197 | | | 6.1 | | % | | | | 2,979 | | | — | | | 86 | | | (14) | | | 3,051 | | | 7.1 | | % |

The decline was also due to the reinvestment of sales and maturities

into other asset classes.

The Company primarily decreased holdings of consumer non-cyclical, technology/communication, and energy corporate bonds, tax-exempt municipal bonds, and

| Agency \[1\] | | | $ | 1,264 | | $ | 1,154 | | $ | 4 | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,268 | | $ | 1,157 | |

| Bonds | | | 908 | | | 840 | | | 568 | | | 504 | | | 424 | | | 370 | | | 138 | | | 116 | | | 225 | | | 207 | | | 2,263 | | | 2,037 | | |

| Interest Only | | | 101 | | | 96 | | | 74 | | | 70 | | | — | | | — | | | 8 | | | 7 | | | 1 | | | 1 | | | 184 | | | 174 | | |

| Total CMBS | | | 2,273 | | | 2,090 | | | 646 | | | 577 | | | 424 | | | 370 | | | 146 | | | 123 | | | 226 | | | 208 | | | 3,715 | | | 3,368 | | |

| Agency | | | 1,845 | | | 1,652 | | | 20 | | | 19 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,865 | | | 1,671 | | |

| Non-Agency | | | 1,166 | | | 1,036 | | | 501 | | | 428 | | | 353 | | | 288 | | | 236 | | | 198 | | | 21 | | | 15 | | | 2,277 | | | 1,965 | | |

| Sub-Prime | | | 3 | | | 3 | | | 21 | | | 21 | | | 10 | | | 10 | | | 8 | | | 8 | | | 23 | | | 23 | | | 65 | | | 65 | | |

| Total RMBS | | | 3,014 | | | 2,691 | | | 542 | | | 468 | | | 363 | | | 298 | | | 245 | | | 207 | | | 50 | | | 44 | | | 4,214 | | | 3,708 | | |

| Total CMBS & RMBS | | | $ | 5,287 | | $ | 4,781 | | $ | 1,188 | | $ | 1,045 | | $ | 787 | | $ | 668 | | $ | 391 | | $ | 330 | | $ | 276 | | $ | 252 | | $ | 7,929 | | $ | 7,076 | |

The increase in the allowance was primarily attributable to the deteriorating economic conditions and the potential impact on real estate property valuations, and to a lesser extent, net additions of new loans.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

| Other funds | | | 413 | | | 9.9 | | % | | | | 274 | | | 8.2 | | % |

The fixed maturities, AFS depressed more than 20% primarily related to corporate fixed maturities, municipal bonds, and RMBS that are mainly depressed because current interest rates are higher and market spreads are wider than at the respective purchase dates.

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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Greater than three to six months | | | 215 | | | 2,021 | | | — | | | (490) | | | 1,531 | | | | | | — | | | — | | | — | | | — | | | — | | |

| Total | | | 426 | | | $ | 3,394 | | $ | (3) | | $ | (875) | | $ | 2,516 | | | | | 20 | | | $ | 5 | | $ | — | | $ | (3) | | $ | 2 | |

The Company recorded net credit losses of $18, primarily attributable to increases in the allowance for credit losses of $10 on CMBS where projected cash flows are lower than originally expected due to faster prepayments, $3 on issuers with exposure to Russia, $3 related to a private corporate utilities issuer, and $2 related to a public corporate cable satellite issuer.

Intent-to-sell impairments of $6 related to two corporate issuers in the financial services and utilities sectors, and an issuer with exposure to Russia that had an ACL prior to disposal.

For the year ended December 31, 2022

Apart from an ACL recorded on

The increase was primarily attributable to the deteriorating economic conditions and the potential impact on real estate property valuations, and to a lesser extent, net additions of new loans.

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As of February 23, 2023, $1.9 billion was available, $100 was outstanding between certain affiliates and there were no amounts outstanding at the HFSG Holding Company.

- P&C - The Company's property and casualty insurance subsidiaries have regulatory dividend capacity of $1.8 billion for 2023, and expect available net dividends to the HFSG Holding Company of $1.5 billion after considering state deposit and regulatory capital requirements to support growth in certain entities, dividends that are expected to be subsequently contributed to P&C subsidiaries and dividends related to interest on intercompany notes.

The HFSG Holding Company expects to receive approximately $1.5 billion of net dividends from the Company's property and casualty insurance subsidiaries in 2023.

- Group Benefits - Hartford Life and Accident Insurance Company ("HLA") has regulatory dividend capacity of $408 in 2023 with approximately $400 of dividends expected in 2023.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Collateralized loan obligations ("CLOs") | | | 3,019 | | | — | | | 8 | | | (2) | | | 3,025 | | | 7.1 | | % | | | | 2,780 | | | — | | | 7 | | | (7) | | | 2,780 | | | 6.2 | | % |

| Agency \[1\] | | | 1,390 | | | — | | | 75 | | | (5) | | | 1,460 | | | 3.4 | | % | | | | 1,779 | | | — | | | 117 | | | (6) | | | 1,890 | | | 4.2 | | % |

| Bonds | | | 2,327 | | | — | | | 92 | | | (9) | | | 2,410 | | | 5.6 | | % | | | | 2,160 | | | — | | | 159 | | | (13) | | | 2,306 | | | 5.1 | | % |

| Energy | | | 1,405 | | | — | | | 99 | | | (2) | | | 1,502 | | | 3.5 | | % | | | | 1,474 | | | (1) | | | 147 | | | (4) | | | 1,616 | | | 3.6 | | % |

| Utilities | | | 1,917 | | | — | | | 141 | | | (8) | | | 2,050 | | | 4.8 | | % | | | | 1,999 | | | — | | | 250 | | | — | | | 2,249 | | | 5.0 | | % |

| Taxable | | | 1,079 | | | — | | | 83 | | | (2) | | | 1,160 | | | 2.7 | | % | | | | 1,084 | | | — | | | 109 | | | (1) | | | 1,192 | | | 2.6 | | % |

| Agency | | | 1,337 | | | — | | | 44 | | | (11) | | | 1,370 | | | 3.2 | | % | | | | 1,829 | | | — | | | 92 | | | (2) | | | 1,919 | | | 4.3 | | % |

| U.S. Treasuries | | | 2,979 | | | — | | | 86 | | | (14) | | | 3,051 | | | 7.1 | | % | | | | 1,264 | | | — | | | 141 | | | — | | | 1,405 | | | 3.1 | | % |

*\[2\]Included within other investments on the Consolidated Balance Sheets.*

credit spreads.

The decline was also due to the reinvestment into other asset classes.The Company primarily decreased holdings of tax-exempt municipal bonds, agency and sub-prime

|

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

Part II - Item 7.

| Agency \[1\] | | | $ | 1,771 | | $ | 1,882 | | $ | 8 | | $ | 8 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,779 | | $ | 1,890 | |

| Bonds | | | 1,009 | | | 1,101 | | | 541 | | | 582 | | | 423 | | | 430 | | | 170 | | | 179 | | | 17 | | | 14 | | | 2,160 | | | 2,306 | | |

| Interest Only | | | 177 | | | 183 | | | 90 | | | 93 | | | 8 | | | 7 | | | 4 | | | 4 | | | 1 | | | 1 | | | 280 | | | 288 | | |

| Total CMBS | | | 2,957 | | | 3,166 | | | 639 | | | 683 | | | 431 | | | 437 | | | 174 | | | 183 | | | 18 | | | 15 | | | 4,219 | | | 4,484 | | |

| Agency | | | 1,807 | | | 1,894 | | | 22 | | | 25 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,829 | | | 1,919 | | |

| Non-Agency | | | 1,034 | | | 1,063 | | | 371 | | | 380 | | | 313 | | | 315 | | | 36 | | | 36 | | | 1 | | | 1 | | | 1,755 | | | 1,795 | | |

| Sub-Prime | | | 1 | | | 1 | | | 25 | | | 26 | | | 114 | | | 116 | | | 102 | | | 105 | | | 113 | | | 116 | | | 355 | | | 364 | | |

| Total RMBS | | | 2,842 | | | 2,958 | | | 421 | | | 434 | | | 429 | | | 433 | | | 140 | | | 143 | | | 134 | | | 139 | | | 3,966 | | | 4,107 | | |

| Total CMBS & RMBS | | | $ | 5,799 | | $ | 6,124 | | $ | 1,060 | | $ | 1,117 | | $ | 860 | | $ | 870 | | $ | 314 | | $ | 326 | | $ | 152 | | $ | 154 | | $ | 8,185 | | $ | 8,591 | |

The decrease in the allowance is primarily attributable to improved economic scenarios, partially offset by an increase driven by net additions of new loans.

While COVID-19 has had an impact on many municipal issuers, credit fundamentals in this sector have broadly stabilized due to an unprecedented influx of federal relief funds and a strong economic recovery.

Real estate funds consist of investments primarily in real estate joint ventures and, to a lesser extent, equity funds.

| Hedge funds | | | $ | 274 | | 8.2 | | % | | | | $ | 158 | | 7.6 | | % |

The fixed maturities, AFS depressed more than 20%, primarily related to commercial real estate securities that were purchased at tighter credit spreads.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

The Company recorded net credit losses on fixed maturities, AFS of $28.

The losses were primarily attributable to corporate fixed maturities, mainly one private regional and commercial aircraft lessor and to a lesser extent, one tax-exempt municipal bond impacted by COVID-19.

Intent-to-sell impairments of $5 were primarily related to one corporate issuer in the energy sector and one issuer with exposure to India.

For

The increase in the allowance was due to the effects of the COVID-19 pandemic and its impacts on the economic forecasts, as well as lower estimated property values and operating income.

- P&C - The Company's U.S. property and casualty insurance subsidiaries have dividend capacity of $2.0 billion for 2022, with $1.3 to $1.4 billion of net dividends expected in 2022.

- Group Benefits - HLA has dividend capacity of $241 in 2022 with $175 to $200 of dividends expected in 2022.

- $210 of interest on debt;

As the sole corporate member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"), the Company has the exclusive right to underwrite business up to an approved level of premium in the Lloyd’s [added: of London ("Lloyds")] market.

Through its ICON quoting tool, The Hartford quotes over [removed: 70%] [added: 75%] of its Spectrum package business and workers’ compensation new business policies without human intervention.

Middle & large commercial business is considered [removed: “high] [added: “higher] touch” and involves individual underwriting and pricing decisions.

Within this competitive environment, The Hartford is working to deepen its product and underwriting capabilities, [added: including investing in speed to market solutions for the lower end of middle market,] leverage its sales and underwriting talent and expand its use of data analytics and third party data to make risk selection and pricing decisions.

In product development and related areas such as claims and risk engineering, the Company has [removed: extended] [added: expanded] its capabilities in industry verticals, such as energy, construction, [added: media arts & entertainment,] technology and life sciences.

The Hartford’s middle & large commercial business [removed: will leverage the] [added: leverages] investments in product, underwriting, and technology to better match price to individual risk as the firm pursues responsible growth strategies to deliver target returns.

As a means to mitigate the cost of [removed: insurance on larger accounts, more insureds] [added: insurance, middle market and large commercial buyers] may opt for loss-sensitive [removed: products, including retrospectively rated contracts, in lieu] [added: products in-lieu] of guaranteed cost policies.

Global specialty competes against multi-national insurance and reinsurance companies, [removed: writing] [added: including] marine, property, excess casualty, professional liability, bond and assumed [removed: reinsurance.][added: reinsurance in the U.S and London markets.]

The Company has been successful in cross-selling global specialty product lines [removed: acquired through the Navigators Insurance Group acquisition] to customers of small commercial and of middle & large commercial and seeks to expand cross-sell opportunities in the future.

The Company seeks to drive greater efficiency, shorten the quoting process and improve the customer’s experience through [added: expanded use of digital capabilities.]

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[added: Lloyd’s is regulated by the Financial Conduct Authority ("FCA") and Prudential Regulatory Authority ("PRA") in the U.K.] For further discussion, see Part II, Item 7, MD&A - Capital Resources and Liquidity.

[removed: 2021] [added: 2022] Earned Premiums of [removed: $2,954] [added: $2,949] by Line of Business

[removed: ][added: ]

[removed: 2021] [added: 2022] Earned Premiums of [removed: $2,954] [added: $2,949] by Product

[removed: ][added: ]

| Homeowners | | | Insures against losses to residences and contents from fire, wind and other perils. Homeowners insurance includes owned dwellings, rental properties and coverage for tenants. The policies may provide other coverages, including loss related to [removed: recreation] [added: recreational] vehicles or watercraft, identity theft and personal items such as jewelry. | | |

Business sold to AARP members, either direct or through independent agents, amounted to earned premiums of $2.7 billion, [added: $2.7 billion and] $2.8 billion [added: in 2022, 2021] and [added: 2020, respectively.]

The AARP relationship provides The Company with a competitive advantage to capitalize on the continued growth of the over [removed: age-50] [added: age 50] population.

[removed: During 2021, the] [added: The] Company [removed: began] [added: is in the process of] introducing its new product, Prevail, which is being rolled out for new business on a state-by-state basis [removed: through 2022] and [removed: into 2023 and] was in [removed: seven] [added: sixteen] states as of [removed: December, 2021.][added: December 2022.]

Among other things, overall rate levels, price segmentation, [removed: rating factors and underwriting procedures]

[added: rating factors and underwriting procedures] are being updated through the introduction of Prevail.

The direct-to-consumer channel continues to represent a larger share of the automobile insurance market, accounting for more than one-third of [added: industry] premiums.

In direct-to-consumer, Personal Lines markets its products through a mix of media, including direct mail, digital marketing, [added: and] television as well as digital and print advertising.

Personal Lines has made significant investments in offering direct and agency-based customers the opportunity to interact [removed: with the company on-line, including via mobile devices.]

Most of Personal Lines' sales are associated with its exclusive licensing arrangement with AARP, with the current agreement in place through December 31, 2032, to market automobile, homeowners and personal umbrella coverages to AARP's approximately [removed: 37] [added: 38] million members, primarily direct but also through independent agents.

However, beginning in May 2021, Personal Lines no longer offers the lifetime continuation agreement to new [removed: business] home and automobile policies.

The endorsement will remain on renewal policies with original [removed: new business] effective dates prior to May 2021.

In addition to selling to AARP members, Personal Lines offers its automobile and homeowners products to non-AARP customers, primarily through the independent agent [removed: channel within select underwriting markets where we believe we have a competitive advantage.][added: channel.]

Personal Lines leverages its agency channel to target AARP members and other customer [removed: segments] [added: segments, primarily targeting the over age 50 preferred mature market,] that value the advice of an independent agent and recognize the differentiated experience the Company provides.

In particular, the Company has taken action to distinguish its brand [added: within the over age 50 preferred mature market] and improve profitability in the independent agent [removed: channel with fewer and] [added: channel, placing] more [added: emphasis on our] highly partnered agents.

Companies with strong ratings, recognized brands, direct sales capability and economies of scale will have a competitive [removed: advantage.]

However, these features include expensive parts, [removed: potentially] [added: contributing to] increasing average claim severity.

In [removed: 2021,] [added: 2022,] inflation had an increasing impact on the industry.

Supply chain pressures, advanced vehicle technology, [added: body shop capacity,] and a tight labor market have increased the cost of automobile [removed: repairs and supply chain issues are also resulting in higher costs to repair homes.][added: repairs.]

policies written with exposure to A&E prior to [removed: 1986,] [added: 1986] reported within the P&C Other Operations segment (“Run-off A&E”), run-off assumed reinsurance and all other non-A&E exposures, see Part II, Item 7, MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product [removed: Reserves.][added: Reserves, Net of Reinsurance.]

[removed: ][added: ]

| Other Products | | | Includes other group coverages such as retiree health insurance, critical illness, [removed: accident,] [added: accident and] hospital indemnity [removed: and participant accident] coverages. | | |

In addition, the segment offers a single-company leave management solution, which integrates work absence data from the insurer’s short-term and long-term group disability and [added: workers’ compensation insurance business with its leave management administration services.]

Statutory paid family leave ("PFL") and paid family [added: and] medical leave ("PFML") programs are a source of growth as the Company offers fully insured coverage or administers self-insured coverage for some of these programs.

Global specialty also writes business in the London market via its Lloyd’s syndicate platform.

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with the company on-line, including via mobile devices.

advantage.

A tight labor market and inflation on material prices increased the cost to repair homes.

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2022 Premiums and Other Considerations of $6,057

As of 2022, eleven states and the District of Columbia have enacted mandated PFL or PFML programs.

Vermont, New Hampshire and Virginia have also created opt-in paid leave programs, and

additional states are considering adopting PFL or PFML programs.

The

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groups and registered investment advisers.

The Talcott Resolution life and annuity separate accounts managed by the Hartford Funds segment are not actively distributed.

The segment also competes directly with lower cost passive investment strategies, which continue taking share from active managers.

Additional discussion may be found in Notes to Consolidated Financial Statements, including in the Company’s accounting policies for insurance product reserves within Note 1 - Basis of Presentation and Significant Accounting Policies and in Note 11 - Reserve for Unpaid Losses

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and Loss Adjustment Expenses of Notes to Consolidated Financial Statements.

and peril.

The Company also writes coverage in the excess and surplus lines market, primarily within global specialty, which is characterized by the absence of regulation related to rate and form and allows for more pricing and coverage flexibility to write certain classes of business.

(% of total)

These activities are performed by

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approximately 7,000 claim employees including, among others, claim adjusters, appraisers, attorneys, doctors, nurses, behavioral health specialists, investigators and data analytics professionals as well as training, management, and support staff.

The Company contracts with a select number of approved regional, national and international suppliers to enhance claim capabilities and business resiliency.

The Company's claims teams manage losses across all 50 states, Washington D.C. and 2 international locations.

Our corporate home office supports shared service claim functions including data and analytics, technology, and strategy.

As a leading provider of workers’ compensation and group benefits coverages, the Company leverages data analytics to return employees to active, productive lives as soon and safely as possible.

Clinical experts focus on opioid usage, vocational rehabilitation, behavioral health and medical case management which we believe provides the Company with a competitive advantage for managing medical costs.

The Company maintains a dedicated catastrophe claims organization that is positioned to respond to large-scale catastrophic events across the country.

For the most severe events, the team is supplemented with additional Company staff to respond to claimants promptly after an event.

The Company's claims organization has a nationwide staff of attorneys who represent insureds in key jurisdictions, including dedicated lawyers specializing in complex litigation.

HIMCO manages the Company's investment portfolios to maximize economic value and generate the returns necessary

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and other necessary provisions for unearned premiums, unpaid losses and loss adjustment expenses and other liabilities, both reported and unreported.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

- The Hartford Early Career Leadership Program, which offers programs in Actuarial, Finance, Underwriting, Claims & Operations and Technology through rotational development to gain a breadth of experiences;

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

- Travel reimbursement to access medical services in other locations as needed;

Carriers in this marketplace seek to differentiate their product offerings, including by leveraging their umbrella and excess liability underwriting capacity to sell other lines of business.

For specialty casualty businesses within middle & large commercial, pricing competition continues to be significant, particularly for the larger individual accounts.

|

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

Part I - Item 1.

Business

expanded use of digital capabilities.

While global specialty benefitted from firm market conditions in 2020 and 2021, more capital has entered the specialty lines marketplace, increasing competition and putting downward pressure on rates.

Lloyd's Syndicate and London market business have been under financial stress in recent years due to a perceived lack of adequate pricing and an excessive focus on growth at the expense of underwriting discipline in those markets, combined with a significant increase in the level of catastrophe activity.

As such, syndicates and London market carriers, including The Hartford, have taken pricing and underwriting actions to improve

profitability.

Lloyd's, which is regulated by the Financial Conduct Authority and Prudential Regulatory Authority in the U.K., has been implementing changes to improve performance of the syndicates including a more rigorous approach to the approval of syndicate business plans.

Additionally, Lloyd’s has also introduced recent changes which require that members limit the amount of tier 2 capital (e.g. letters of credit) that can be used to meet syndicate solvency capital requirements.

$2.9 billion in 2021, 2020 and 2019, respectively.

New business premium growth partly depends on the rate that consumers shop for insurance and while shopping rates have generally rebounded since the depths of the pandemic, they have rebounded more slowly in the 50-plus age segment.

In recent years, insurers have increased their advertising in the direct-to-consumer market in an effort to gain new business and retain profitable business.

2021 Premiums and Fee Income of $5,687

workers’ compensation insurance business with its leave management administration services.

As of 2021, nine states and the District of Columbia have enacted PFL programs and additional states are considering adopting paid family leave or paid family and medical leave programs.

Policies are typically

Top tier insurers in

Our distribution

The investment products for Talcott Resolution are not actively distributed.

In recent years demand for lower cost passive investment strategies has outpaced demand for actively managed strategies and has taken market share from active managers.

| | | | | | | | | | | | | | | |

Our combined workers’ compensation and Group Benefits units enable us to leverage synergies for improved outcomes.

The Company attempts to minimize adverse impacts to the portfolio and the

premium rates and policy forms; and claims administration requirements.

objective to attract, retain and develop the best talent in the industry.

To help ensure pay equity, we use an independent third party compensation specialist firm to conduct statistical pay equity

Building a diverse workforce and creating an equitable and inclusive culture is a top priority and a business imperative.

We recognize that this work is central to leading, governing and managing risks better.

As of December 31, 2021, we had 106

Part I - Item 1A.

Risk Factors

The global spread of COVID-19 has continued to cause significant market uncertainty and economic disruption.

Additional uncertainty exists regarding governmental, business and individual actions that have been and may continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; potential legislative, regulatory, and judicial responses to the pandemic pertaining specifically to insurance underwriting and claims; the effect on our customers and customers’ demand for our products; our ability to sell our products and our ability to use historical experience to assist our decision making in areas including underwriting, pricing, capital management and investments.

- Insurance and Product Related Risk - The Company may continue to incur increased loss costs under insurance policies that we have written including for workers’ compensation, group life insurance, short-term disability, general liability, surety, director and officer liability, and employment practices liability, as well as property business.

Under general liability or umbrella policies, we may have exposure to increased claims for indemnification from our insureds who may be found liable for negligently having exposed third parties to COVID-19 at a place of business, home or other premise.

For a discussion regarding The Hartford’s legal proceedings, see the information contained under “Litigation,” including “COVID-19 Pandemic Business Income Insurance Litigation ” and “Run-off Asbestos and Environmental Claims,” in Note [removed: 15] [added: 14] - Commitments and Contingencies of the Notes to Consolidated Financial Statements.

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

For the fiscal year ended December 31, [removed: 2021][added: 2022]

[removed: ][added: ]

| • | | | if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | | | Yes | | | ☑ | | | No | | | [added: ☐] | | |

| • | | | if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. | | | Yes | | | [added: ☐] | | | No | | | ☑ | | |

| • | | | whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | | | Yes | | | ☑ | | | No | | | [added: ☐] | | |

| • | | | whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | | | Yes | | | ☑ | | | No | | | [added: ☐] | | |

| • | | | whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting [removed: company”] [added: company”,] and "emerging growth company" in Rule 12b-2 of the Exchange Act. | | | | | | | | | | | | | | |

| [removed: Large accelerated filer | | | ☑ | | |] Accelerated filer | | | ☐ | | | [removed: Non-accelerated filer] | | | [removed: ☐ | | |] Smaller reporting company | | | ☐ | | | [removed: Emerging growth company | | | ☐ | | |]

[added: | • | | |] If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [added: | | | ☐ | | | | | | | | | | | |]

[removed: Indicate by check mark] [added: | • | | |] whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit [removed: report.][added: report | | | ☑ | | | | | | | | | | | |]

| [removed: •] [added: • | | |] whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | | | Yes | | | ☐ | | | No | | | ☑ | | |

The aggregate market value of the shares of Common Stock held by non-affiliates of the registrant as of June 30, [removed: 2021] [added: 2022] was approximately [removed: $22] [added: $21] billion, based on the closing price of [removed: $61.97] [added: $65.43] per share of the Common Stock on the New York Stock Exchange on June 30, [removed: 2021.][added: 2022.]

As of February [removed: 17, 2022,] [added: 23, 2023,] there were outstanding [removed: 331,646,836] [added: 313,057,095] shares of Common Stock, $0.01 par value per share, of the registrant.

Portions of the registrant’s definitive proxy statement for its [removed: 2022] [added: 2023] annual meeting of stockholders are incorporated by reference in Part III of this Form 10-K.

| 1A. | | | [RISK [removed: FACTORS](#i995c27a32a614cd39befb7ad103f3b7b_76)] [added: FACTORS](#i06b18b14201940a9a0e64acb9b8906f8_76)] | | | [removed: [22](#i995c27a32a614cd39befb7ad103f3b7b_76)] [added: [21](#i06b18b14201940a9a0e64acb9b8906f8_76)] | | |

| 3 | | | [LEGAL [removed: PROCEEDINGS](#i995c27a32a614cd39befb7ad103f3b7b_82)] [added: PROCEEDINGS](#i06b18b14201940a9a0e64acb9b8906f8_82)] | | | [removed: [36](#i995c27a32a614cd39befb7ad103f3b7b_82)] [added: [33](#i06b18b14201940a9a0e64acb9b8906f8_82)] | | |

| 5 | | | [MARKET FOR THE HARTFORD'S COMMON EQUITY, RELATED STOCKHOLDER [removed: MATTER](#i995c27a32a614cd39befb7ad103f3b7b_88)[S](#i995c27a32a614cd39befb7ad103f3b7b_88) [AND] [added: MATTERS AND] ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#i995c27a32a614cd39befb7ad103f3b7b_88)] [added: SECURITIES](#i06b18b14201940a9a0e64acb9b8906f8_88)] | | | [removed: [37](#i995c27a32a614cd39befb7ad103f3b7b_88)] [added: [34](#i06b18b14201940a9a0e64acb9b8906f8_88)] | | |

[removed: | 7 | | | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i995c27a32a614cd39befb7ad103f3b7b_97) | | | [39](#i995c27a32a614cd39befb7ad103f3b7b_97) | | |][added: Management's Discussion and Analysis of Financial Condition and Results of Operations;]

| 9A. | | | [CONTROLS AND [removed: PROCEDURES](#i995c27a32a614cd39befb7ad103f3b7b_265)] [added: PROCEDURES](#i06b18b14201940a9a0e64acb9b8906f8_265)] | | | [removed: [122](#i995c27a32a614cd39befb7ad103f3b7b_265)] [added: [114](#i06b18b14201940a9a0e64acb9b8906f8_265)] | | |

| | | | [Part [removed: III](#i995c27a32a614cd39befb7ad103f3b7b_268)] [added: III](#i06b18b14201940a9a0e64acb9b8906f8_268)] | | | | | |

| 10 | | | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE [removed: HARTFORD](#i995c27a32a614cd39befb7ad103f3b7b_271)] [added: HARTFORD](#i06b18b14201940a9a0e64acb9b8906f8_271)] | | | [removed: [124](#i995c27a32a614cd39befb7ad103f3b7b_271)] [added: [116](#i06b18b14201940a9a0e64acb9b8906f8_271)] | | |

| 12 | | | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER [removed: MATTERS](#i995c27a32a614cd39befb7ad103f3b7b_274)] [added: MATTERS](#i06b18b14201940a9a0e64acb9b8906f8_274)] | | | [removed: [125](#i995c27a32a614cd39befb7ad103f3b7b_274)] [added: [117](#i06b18b14201940a9a0e64acb9b8906f8_274)] | | |

| 14 | | | PRINCIPAL [removed: ACCOUNTING] [added: ACCOUNTANT] FEES AND SERVICES | | | \[e\] | | |

| | | | [Part [removed: IV](#i995c27a32a614cd39befb7ad103f3b7b_277)] [added: IV](#i06b18b14201940a9a0e64acb9b8906f8_277)] | | | | | |

| 15 | | | [removed: [EXHIBITS, FINANCIAL] [added: [EXHIBITS](#i06b18b14201940a9a0e64acb9b8906f8_280) [](#i06b18b14201940a9a0e64acb9b8906f8_280)[AND](#i06b18b14201940a9a0e64acb9b8906f8_280) [FINANCIAL] STATEMENT [removed: SCHEDULES](#i995c27a32a614cd39befb7ad103f3b7b_280)] [added: SCHEDULES](#i06b18b14201940a9a0e64acb9b8906f8_280)] | | | [removed: [126](#i995c27a32a614cd39befb7ad103f3b7b_280)] [added: [118](#i06b18b14201940a9a0e64acb9b8906f8_280)] | | |

| | | | [EXHIBITS [removed: INDEX](#i995c27a32a614cd39befb7ad103f3b7b_424)] [added: INDEX](#i06b18b14201940a9a0e64acb9b8906f8_424)] | | | [removed: [233](#i995c27a32a614cd39befb7ad103f3b7b_424)] [added: [218](#i06b18b14201940a9a0e64acb9b8906f8_424)] | | |

◦the Company’s ability to effectively price its [removed: property] [added: products] and [removed: casualty] policies, including its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal of certain product lines;

◦technological changes, including usage-based methods of determining premiums, advancements in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride [removed: sharing,][added: sharing;]

[removed: ◦risk] [added: ◦risks] associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance and catastrophe risk management;

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

The Hartford Financial Services Group, Inc. (together with its subsidiaries, “The Hartford”, the “Company”, “we”, or “our”) is a holding company for a group of subsidiaries that provide property and casualty ("P&C") insurance, group benefits insurance and services, and mutual funds and exchange-traded [removed: products] [added: funds] to individual and business customers in the United States as well as in the United Kingdom and other international locations.

[removed: At] [added: As of] December 31, [removed: 2021,] [added: 2022,] total assets and total stockholders’ equity of The Hartford were [removed: $76.6] [added: $73.0] billion and [removed: $17.8] [added: $13.6] billion, respectively.

We are investing in [removed: claims,] [added: claims processing,] analytics, data science and digital capabilities to strengthen our existing competitive advantages.

We have proactive positions on ESG issues important to our [removed: sustainability,] [added: sustainability] and our capacity to deliver long-term stockholder value.

[removed: ][added: ]

[removed: As we enter 2022, our] [added: Our] strategy remains consistent and we are focused on the following priorities across our businesses:

- Emphasizing [removed: digital, data and analytics,] [added: digital capabilities] and data science that enhance the customer experience and improve [removed: the] underwriting and claims decision making;

[removed: Management's Discussion and Analysis of Financial Condition and Results of Operations.][added: | 7 | | | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i06b18b14201940a9a0e64acb9b8906f8_97) | | | [36](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |]

- Balancing [added: use of excess] capital [removed: deployment] for organic growth, investments in the business, and return to stockholders through dividends and share repurchases; and

Within our businesses, [added: in 2023] we will continue to pursue objectives specific to each, including:

| Large accelerated filer | | | ☑ | | | | | | Non-accelerated filer | | | ☐ | | |

| | | | | | | | | | Emerging growth company | | | ☐ | | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| • | | | If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. | | | ☐ | | | | | | | | | | | |

| • | | | whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). | | | ☐ | | | | | | | | | | | |

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022

| | | | [Part I](#i06b18b14201940a9a0e64acb9b8906f8_13) | | | | | |

| 1 | | | [BUSINESS](#i06b18b14201940a9a0e64acb9b8906f8_16) | | | [6](#i06b18b14201940a9a0e64acb9b8906f8_16) | | |

| 2 | | | [PROPERTIES](#i06b18b14201940a9a0e64acb9b8906f8_79) | | | [33](#i06b18b14201940a9a0e64acb9b8906f8_79) | | |

| | | | [Part II](#i06b18b14201940a9a0e64acb9b8906f8_85) | | | | | |

| 9C. | | | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | | | Not Applicable | | |

| | | | [SIGNATURES](#i06b18b14201940a9a0e64acb9b8906f8_427) | | | [221](#i06b18b14201940a9a0e64acb9b8906f8_427) | | |

◦the effects of the continued COVID-19 pandemic, including exposure to COVID-19 business interruption property claims, the possibility of a resurgence of excess mortality losses in Group Benefits, and the potential for further legislative, regulatory or judicial actions pertaining to insurance underwriting and claims;

◦political instability, politically motivated violence or civil unrest, which may increase the frequency and severity of insured losses;

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

Strategic Priorities

- Enabling improved risk selection and portfolio decisions through data science and analytics; and

- Addressing higher loss cost trends through pricing and underwriting actions;

- Investing in technology that enhances the overall customer experience; and

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

2022 Earned Premiums of $10,571 by Product

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | | | |

| 7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042 | | | HGH | | | The New York Stock Exchange | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | [Part I](#i995c27a32a614cd39befb7ad103f3b7b_13) | | | | | |

| 1 | | | [BUSINESS](#i995c27a32a614cd39befb7ad103f3b7b_16) | | | [6](#i995c27a32a614cd39befb7ad103f3b7b_16) | | |

| 2 | | | [PROPERTIES](#i995c27a32a614cd39befb7ad103f3b7b_79) | | | [36](#i995c27a32a614cd39befb7ad103f3b7b_79) | | |

| | | | [Part II](#i995c27a32a614cd39befb7ad103f3b7b_85) | | | | | |

| | | | [SIGNATURES](#i995c27a32a614cd39befb7ad103f3b7b_427) | | | [236](#i995c27a32a614cd39befb7ad103f3b7b_427) | | |

- Risks relating to the continued COVID-19 pandemic, including impacts to the Company's insurance and product-related, regulatory/legal, recessionary and other global economic, capital and liquidity and operational risks

◦the risks associated with the discontinuance of the London Inter-Bank Offered Rate ("LIBOR") on the securities we hold or may have issued, other financial instruments and any other assets and liabilities whose value is tied to LIBOR;

2022 Priorities

Before considering investments in new products and technology, we are on track to achieve a reduction in annual insurance operating costs and other expenses of approximately $540 in 2022 and $625 in 2023, relative to 2019;

mature market and includes digital service capabilities that provide real time transaction support;

- Completing the implementation of our disability and leave management claims platform, The Hartford Ability Advantage, to enhance the overall customer experience and accommodate the Company’s leave management programs; and

(Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as “Talcott Resolution”).

2021 Earned Premiums of $9,541 by Product

As of December 31, [removed: 2021,] [added: 2022,] The Hartford owned building space totaling approximately 1.8 million square feet consisting [removed: principally] of [removed: 1.77 million square feet for] its home office complex in Hartford, Connecticut and other properties within the greater Hartford, Connecticut area.

In addition, we lease offices throughout North America, the United Kingdom and other overseas locations to house administrative, claims handling, [added: sales and other business operations.]

[removed: As of] December 31, [removed: 2021,] [added: 2022,] The Hartford leased approximately [removed: 1.3] [added: 1.1] million square feet throughout North America, 22 thousand square feet in London and [removed: 5] [added: 6] thousand square feet in other international branches.

As of

| | | |

| --- | --- | --- |

sales and other business operations.

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

As of February [removed: 17, 2022,] [added: 23, 2023,] the Company had approximately [removed: 9,679] [added: 9,231] registered holders of record of the Company's common stock.

Repurchases of common stock by the Company during the quarter ended December 31, [removed: 2021] [added: 2022] are set forth below.

During the period from January 1, [removed: 2022] [added: 2023] through February [removed: 17, 2022,] [added: 23, 2023,] the Company repurchased [removed: 3.8] [added: 2.7] million shares for [removed: $274.][added: $209.]

| Repurchases of Common Stock by the Issuer for the Three Months Ended December 31, [removed: 2021] [added: 2022] | | | | | | | | | | | | | | |

| Period | | | Total [removed: Number of Shares Purchased] [added: Number of Shares Purchased \[1\]] | | | Average Price Paid Per Share | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs [removed: \[1\]] [added: \[2\]] | | |

[removed: *\[1\]On] [added: *\[2\]On] December 17, 2020, the Board of Directors authorized [removed: a new] [added: an] equity repurchase plan for $1.5 billion for the period commencing January 1, 2021 through December 31, 2022.

The Board of Directors increased this authorization by [removed: $1] [added: $1.0] billion on April 22, [removed: 2021] [added: 2021,] and by $500 on October 28, 2021, bringing the aggregate repurchase authorization to $3.0 billion through December 31, 2022.

The timing of any repurchases [removed: of shares under the remaining equity repurchase authorization] is dependent [removed: upon] [added: on] several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations.*

The following [removed: tables present] [added: table presents] The Hartford’s [removed: annual return percentage and] five-year total return on its common stock including reinvestment of dividends in comparison to the S&P [added: 500 and the S&P Insurance Composite Index.]

| Company/Index | | | [added: 2017] | | | [removed: 2017] | | | [added: | | |] 2018 | | | 2019 | | | 2020 | | | 2021 | | | [added: 2022 | | | | | |]

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

| [removed: Company/Index] | | | [removed: 2016] [added: 2013] | | | [added: 2014] | | | [added: 2015] | | | [added: 2016 | | |] 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | [added: 2022] | | | [added: Total | | |]

| The Hartford Financial Services Group, Inc. | | | $ | 100 | | | | | | | | $ | [removed: 120.25] [added: 80.76] | | $ | [removed: 97.11] [added: 112.83] | | $ | [removed: 135.68] [added: 93.74] | | $ | [removed: 112.64] [added: 135.23] | | $ | [removed: 162.51] [added: 151.89] | | | | |

[removed: ][added: ]

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | [Index to [removed: MD&A](#i995c27a32a614cd39befb7ad103f3b7b_97)] [added: MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97)] | | |

On December 29, 2021, the Company completed the sale of [removed: all of the issued and outstanding equity of] Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. (“BDM”) and Assurances Contintales Contintale Verzekeringen N.V. (“ASCO”), (collectively referred to as "Continental Europe Operations").

For discussion of reclassifications, [removed: acquisitions,] and dispositions, see Note 1 - Basis of Presentation and Significant Accounting Policies, [removed: Note 2 - Business Acquisitions] and Note [removed: 22] [added: 21] - Business Dispositions of Notes to Consolidated Financial Statements.

For discussion of the earliest of the three years included in the financial statements of the current filing, refer to Part 2, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in The Hartford’s [removed: 2020] [added: 2021] Form 10-K Annual Report.

| [Key Performance Measures and [removed: Ratios](#i995c27a32a614cd39befb7ad103f3b7b_103)] [added: Ratios](#i06b18b14201940a9a0e64acb9b8906f8_103)] | | | [removed: [39](#i995c27a32a614cd39befb7ad103f3b7b_103)] [added: [36](#i06b18b14201940a9a0e64acb9b8906f8_103)] | | |

| [The Hartford's [removed: Operations](#i995c27a32a614cd39befb7ad103f3b7b_106)] [added: Operations](#i06b18b14201940a9a0e64acb9b8906f8_106)] | | | [removed: [44](#i995c27a32a614cd39befb7ad103f3b7b_106)] [added: [41](#i06b18b14201940a9a0e64acb9b8906f8_106)] | | |

| [Financial [removed: Highlights](#i995c27a32a614cd39befb7ad103f3b7b_109)] [added: Highlights](#i06b18b14201940a9a0e64acb9b8906f8_109)] | | | [removed: [48](#i995c27a32a614cd39befb7ad103f3b7b_109)] [added: [44](#i06b18b14201940a9a0e64acb9b8906f8_109)] | | |

| [Consolidated Results of [removed: Operations](#i995c27a32a614cd39befb7ad103f3b7b_112)] [added: Operations](#i06b18b14201940a9a0e64acb9b8906f8_112)] | | | [removed: [49](#i995c27a32a614cd39befb7ad103f3b7b_112)] [added: [45](#i06b18b14201940a9a0e64acb9b8906f8_112)] | | |

| [Investment [removed: Results](#i995c27a32a614cd39befb7ad103f3b7b_115)] [added: Results](#i06b18b14201940a9a0e64acb9b8906f8_115)] | | | [removed: [52](#i995c27a32a614cd39befb7ad103f3b7b_115)] [added: [48](#i06b18b14201940a9a0e64acb9b8906f8_115)] | | |

| [Critical Accounting [removed: Estimates](#i995c27a32a614cd39befb7ad103f3b7b_118)] [added: Estimates](#i06b18b14201940a9a0e64acb9b8906f8_118)] | | | [removed: [54](#i995c27a32a614cd39befb7ad103f3b7b_118)] [added: [50](#i06b18b14201940a9a0e64acb9b8906f8_118)] | | |

| [Commercial [removed: Lines](#i995c27a32a614cd39befb7ad103f3b7b_148)] [added: Lines](#i06b18b14201940a9a0e64acb9b8906f8_148)] | | | [removed: [76](#i995c27a32a614cd39befb7ad103f3b7b_148)] [added: [72](#i06b18b14201940a9a0e64acb9b8906f8_148)] | | |

| [Personal [removed: Lines](#i995c27a32a614cd39befb7ad103f3b7b_151)] [added: Lines](#i06b18b14201940a9a0e64acb9b8906f8_151)] | | | [removed: [81](#i995c27a32a614cd39befb7ad103f3b7b_151)] [added: [77](#i06b18b14201940a9a0e64acb9b8906f8_151)] | | |

| [Property & Casualty Other [removed: Operations](#i995c27a32a614cd39befb7ad103f3b7b_154)] [added: Operations](#i06b18b14201940a9a0e64acb9b8906f8_154)] | | | [removed: [85](#i995c27a32a614cd39befb7ad103f3b7b_154)] [added: [81](#i06b18b14201940a9a0e64acb9b8906f8_154)] | | |

| [Group [removed: Benefits](#i995c27a32a614cd39befb7ad103f3b7b_157)] [added: Benefits](#i06b18b14201940a9a0e64acb9b8906f8_157)] | | | [removed: [86](#i995c27a32a614cd39befb7ad103f3b7b_157)] [added: [82](#i06b18b14201940a9a0e64acb9b8906f8_157)] | | |

| [Hartford [removed: Funds](#i995c27a32a614cd39befb7ad103f3b7b_160)] [added: Funds](#i06b18b14201940a9a0e64acb9b8906f8_160)] | | | [removed: [90](#i995c27a32a614cd39befb7ad103f3b7b_160)] [added: [84](#i06b18b14201940a9a0e64acb9b8906f8_160)] | | |

| [removed: [Corporate](#i995c27a32a614cd39befb7ad103f3b7b_163)] [added: [Corporate](#i06b18b14201940a9a0e64acb9b8906f8_163)] | | | [removed: [92](#i995c27a32a614cd39befb7ad103f3b7b_163)] [added: [86](#i06b18b14201940a9a0e64acb9b8906f8_163)] | | |

| [Enterprise Risk [removed: Management](#i995c27a32a614cd39befb7ad103f3b7b_166)] [added: Management](#i06b18b14201940a9a0e64acb9b8906f8_166)] | | | [removed: [93](#i995c27a32a614cd39befb7ad103f3b7b_166)] [added: [87](#i06b18b14201940a9a0e64acb9b8906f8_166)] | | |

| [Capital Resources and [removed: Liquidity](#i995c27a32a614cd39befb7ad103f3b7b_205)] [added: Liquidity](#i06b18b14201940a9a0e64acb9b8906f8_205)] | | | [removed: [111](#i995c27a32a614cd39befb7ad103f3b7b_205)] [added: [104](#i06b18b14201940a9a0e64acb9b8906f8_205)] | | |

| [Impact of New Accounting [removed: Standards](#i995c27a32a614cd39befb7ad103f3b7b_259)] [added: Standards](#i06b18b14201940a9a0e64acb9b8906f8_259)] | | | [removed: [120](#i995c27a32a614cd39befb7ad103f3b7b_259)] [added: [112](#i06b18b14201940a9a0e64acb9b8906f8_259)] | | |

Throughout the MD&A, we use certain terms and abbreviations, the more commonly used are summarized in the [removed: [Acronyms](#i995c27a32a614cd39befb7ad103f3b7b_262)] [added: [Acronyms](#i06b18b14201940a9a0e64acb9b8906f8_262)] section.

Assets Under Management (“AUM”)- Include mutual fund and [removed: ETP] [added: exchange-traded fund ("ETF")] assets.

AUM is a measure used by the Company's Hartford Funds segment because a significant portion of the [removed: segments’s] [added: segment’s] revenues and expenses are based upon asset values.

- Certain realized gains and losses - [removed: Some] [added: Generally] 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.

- Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and [removed: including] [added: excluding] the [removed: full benefit from] [added: deferred gain on] retroactive reinsurance [removed: in] [added: and related amortization of the deferred gain from] core earnings provides greater insight into the economics of the business.

| | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | |

| Net income | | | $ | [removed: 2,365] [added: 1,815] | | $ | [removed: 1,737] [added: 2,365] | | $ | [removed: 2,085] [added: 1,737] | |

| October 1, 2022 - October 31, 2022 | | | 1,709,923 | | | $ | 66.69 | | 1,705,631 | | | $ | 2,984 | |

| November 1, 2022 - November 30, 2022 | | | 1,869,736 | | | $ | 73.78 | | 1,852,356 | | | $ | 2,847 | |

| December 1, 2022 - December 31, 2022 | | | 1,337,959 | | | $ | 75.15 | | 1,325,635 | | | $ | 2,748 | |

| Total | | | 4,917,618 | | | $ | 71.69 | | 4,883,622 | | | | | |

*\[1\]Includes 33,996 shares in net settlement of employee tax withholding obligations related to equity awards under the Company's incentive stock plans, which were not part of publicly announced share repurchase authorizations.

The Company paid an average price per share of $72.76 in employee tax withholding obligations related to net share settlements in the three months ended December 31, 2022.*

In addition to the authorization covering the period from January 1, 2021 to December 31, 2022, in July, 2022, the Board of Directors approved a share repurchase authorization for up to $3.0 billion effective from August 1, 2022 to December 31, 2024.

| S&P 500 Index | | | $ | 100 | | | | | | | | $ | 95.62 | | $ | 125.72 | | $ | 148.85 | | $ | 191.58 | | $ | 156.88 | | | | |

| S&P Insurance Composite Index | | | $ | 100 | | | | | | | | $ | 88.79 | | $ | 114.88 | | $ | 114.38 | | $ | 151.12 | | $ | 166.42 | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

Therefore, this fee income increases or decreases with the rise or fall in AUM whether caused by changes in the market or through net flows.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

classes of business or states.

The rate component represents the change in rate impacting renewal policies as previously filed with and approved by state regulators during the period.

Renewal

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

The Company believes this ratio is an important measure of the trend in profitability since it removes

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

was completed on June 30, 2021.

For

The Company also invests in commercial mortgage loans as well as limited partnerships and alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

Impact of Ukraine conflict on our results of operations

From the Ukraine conflict, the Company incurred $27 of catastrophe losses, net of reinsurance, in 2022, all in the first quarter, 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.

Also in the first quarter of 2022, the Company recognized provisions for reinstatement premium of $11 as a result of estimated ceded incurred losses related to the conflict.

As of December 31, 2022, the Company does not have any investments in Russia, 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 see Part 1, Item 1A - Risk Factors, 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”.

In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to

| Net expense (savings) before tax | | | | | | $ | 47 | | $ | (359) | | $ | (490) | | $ | (587) | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | | | | [Index to MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97) | | |

| Þ | | | Decreased $550 or 23% | | | | | | | | | Þ | | | Decreased $1.18 or 18% | | | | | | | | | Þ | | | Decreased $9.83 or 19% | | | | | |

| \- | | | Lower net investment income driven by lower income from limited partnerships | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | + | | | Reduction in outstanding shares due to share repurchases | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | \- | | | Dilutive effect of share repurchases | | | | | | | | | | | | | | | | | |

| \- | | | Greater P&C underwriting expenses and Group Benefits insurance operating costs and other expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | + | | | Net income in excess of common stockholder dividends | | | | | | | | | | | | | | |

| \- | | | Higher group life loss ratio, excluding the impact of excess mortality | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| + | | | In Group Benefits, lower excess mortality claims and the effect of higher premiums | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| October 1, 2021 - October 31, 2021 | | | 1,618,168 | | | $ | 72.42 | | 1,618,168 | | | $ | 1,681 | |

| November 1, 2021 - November 30, 2021 | | | 3,165,842 | | | $ | 71.02 | | 3,165,842 | | | $ | 1,456 | |

| December 1, 2021 - December 31, 2021 | | | 2,328,073 | | | $ | 67.86 | | 2,328,073 | | | $ | 1,298 | |

| Total | | | 7,112,083 | | | $ | 70.31 | | 7,112,083 | | | | | |

500 and the S&P Insurance Composite Index.

| | | | | | | | | | | | | | | | | | | | | |

| Annual Return Percentage | | | | | | | | | | | | | | | | | | | | |

| | | | | | | For the years ended | | | | | | | | | | | | | | |

| The Hartford Financial Services Group, Inc. | | | | | | 20.25 | | % | (19.24 | | %) | 39.71 | | % | (16.98 | | %) | 44.27 | | % |

| S&P 500 Index | | | | | | 21.83 | | % | (4.38 | | %) | 31.49 | | % | 18.40 | | % | 28.71 | | % |

| S&P Insurance Composite Index | | | | | | 16.19 | | % | (11.21 | | %) | 29.38 | | % | (0.44 | | %) | 32.12 | | % |

|

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| S&P 500 Index | | | $ | 100 | | | | | | | | $ | 121.83 | | $ | 116.49 | | $ | 153.18 | | $ | 181.36 | | $ | 233.43 | | | | |

| S&P Insurance Composite Index | | | $ | 100 | | | | | | | | $ | 116.19 | | $ | 103.17 | | $ | 133.48 | | $ | 132.89 | | $ | 175.57 | | | | |

Part II - Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

| | | | | | | | | | | | |

| Loss on reinsurance transactions, before tax | | | — | | | — | | | 91 | | |

| Change in loss reserves upon acquisition of a business, before tax | | | — | | | — | | | 97 | | |

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.

adjustment expenses incurred for both the current and prior accident years.

previous policy term.

The rate

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.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Loss on reinsurance transaction | | | — | | | — | | | 91 | | | | | | | | |

and ratings.

certain affiliates.

New and

Impact to written and earned premiums

Despite the rollout of vaccines and states largely lifting restrictions allowing business to re-open, the COVID-19 pandemic continues to pose a threat to the economic recovery of the U.S. and other countries in which we operate.

As one of the largest providers of small business insurance in the U.S., we were negatively affected by economic effects of the pandemic on small businesses beginning in March of 2020.

An

improvement in economic conditions in 2021 has contributed to an increase of 11% in our small commercial written premiums.

Our middle & large commercial business was also negatively affected by COVID-19 and written premium has rebounded with an increase of 12% in 2021.

Overall, Commercial Lines written premium increased $1,072, or 12%, in 2021 with growth in workers' compensation, small commercial package business, general liability, U.S. wholesale, U.S. financial lines and global reinsurance.

We have audited the internal control over financial reporting of The Hartford Financial Services Group, Inc. and its subsidiaries (the “Company”) as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, [removed: 2021,] [added: 2022,] of the Company and our report dated February [removed: 18, 2022,] [added: 24, 2023,] expressed an unqualified opinion on those financial statements.

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

Directors, Executive Officers [removed: ad] [added: and] Corporate Governance of The Hartford

February 24, 2023

February 18, 2022

Certain of the information called for by Item 10 will be set forth in the definitive proxy statement for the [removed: 2022] [added: 2023] annual meeting of stockholders (the “Proxy Statement”) to be filed by The Hartford with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K under the captions and subcaptions “Board and Governance Matters”, and “Director Nominees" and is incorporated herein by reference.

Set forth below is information about the other executive officers of the Company as of February [removed: 17, 2022:][added: 23, 2023:]

| Jonathan R. Bennett | | | [removed: 57] [added: 58] | | | Executive Vice President and Head of Group Benefits (August 2019-present); Chief Financial Officer and Head of Strategy for Property and Casualty and Group Benefits (October, 2012-August 2019) | | |

| Claire H. Burns | | | [removed: 53] [added: 54] | | | Chief Marketing and Communications Officer (September 2021-present); Chief Marketing and Strategy Officer, Prudential International (February 2018-July 2021); Senior Vice President and Chief Customer Officer, MetLife (November 2012-January 2018) | | |

| Beth A. Costello | | | [removed: 54] [added: 55] | | | Executive Vice President and Chief Financial Officer (July 2014-present) | | |

| John J. Kinney | | | [removed: 50] [added: 51] | | | Executive Vice President, Head of Claims & Operations (August 2021-present); Chief Claims Officer (April 2013-August 2021) | | |

| Scott R. [removed: Lewis] [added: Lewis\[1\]] | | | [removed: 59] [added: 60] | | | Senior Vice President and Controller (May 2013-present) | | |

| Robert W. Paiano | | | [removed: 60] [added: 61] | | | Executive Vice President and Chief Risk Officer (June 2017-present); Senior Vice President & Treasurer (July 2010-May 2017) | | |

| David C. Robinson | | | [removed: 56] [added: 57] | | | Executive Vice President and General Counsel (June 2015-present) | | |

| Lori A. Rodden | | | [removed: 51] [added: 52] | | | Executive Vice President Chief Human Resources Officer (October 2019-present); [added: and] Senior Vice President and Lead Human Resources Business Partner for Property & Casualty, Group Benefits, Claims and Actuarial (April 2016-October 2019) [removed: and Vice President and Lead Human Resources for Middle Market, Large Commercial, Sales & Distribution and underwriting (November 2014-April 2016)] | | |

| Deepa Soni | | | [removed: 52] [added: 53] | | | Executive Vice President, Head of Technology, Data, Analytics & Information Security (August 2021-present); Chief Information Officer (September 2019-August 2021); U.S. Chief Information Officer, BMO Financial Group (April 2016-September 2019) | | |

| Amy M. Stepnowski | | | [removed: 53] [added: 54] | | | Executive Vice President Chief Investment Officer (August 2020-present); President of Hartford Investment Management Company (August 2020-Present); Managing Director and Head of Public Credit Research Hartford Investment Management Company (September 2008-August 2020) | | |

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

| Stephanie C. Bush | | | 58 | | | Executive Vice President and Head of Small Commercial and Personal Lines (January 2018-present) | | |

| Michael R. Fisher | | | 57 | | | Executive Vice President and Property and Casualty Chief Underwriting Officer (May 2019-present); Executive Vice President and Head of Specialty Commercial (October 2014-April 2019) | | |

| Adin M. Tooker | | | 53 | | | Executive Vice President, Middle and Large Commercial, Global Specialty and Sales and Distribution (November 2022-present); Executive Vice President and Head of Middle and Large Commercial (March 2019-October 2022); Executive Vice President and Head of Middle Market (March 2017-February 2019) | | |

*\[1\]On November 1, 2022, Mr. Lewis notified the Company of his intent to retire as Senior Vice President and Controller effective February 28, 2023.*

| Douglas G. Elliot | | | 61 | | | President (July 2014-present) | | |

The following table provides information as of December 31, [removed: 2021] [added: 2022] about the securities authorized for issuance under the Company’s equity compensation [removed: plans.][added: plans, which consist of The Hartford 2010 Incentive Stock Plan (the “2010 Stock Plan”), The Hartford 2014 Incentive Stock Plan (the "2014 Stock Plan"), the 2020 Stock Incentive Plan (the "2020 Stock Plan") (collectively the "Stock Plans") and The Hartford Employee Stock Purchase Plan (the “ESPP”).]

For a description of the 2020 Stock Plan and the ESPP, see Note [removed: 20] [added: 19] - Stock Compensation Plans of Notes to Consolidated Financial Statements.

*\[1\]The amount shown in this column includes [removed: 6,435,452] [added: 6,596,674] outstanding options awarded under the 2010 Stock Plan, the 2014 Stock Plan and the 2020 Stock Plan.

The amount shown in this column includes [removed: 4,031,435] [added: 3,517,067] outstanding restricted stock units, [removed: 764,755] [added: 710,927] outstanding performance shares at 100% of target (which excludes [removed: 623,464] [added: 448,510] shares that vested on December 31, [removed: 2021,] [added: 2022,] related to the [removed: 2019-2021] [added: 2020-2022] performance period)* *and [removed: 239,182] [added: 207,254] non-vested dividend equivalent shares* *as of December 31, [removed: 2021] [added: 2022] under the 2014 Stock Plan and the 2020 Stock Plan.

The maximum number of performance shares that could be awarded is [removed: 1,529,510] [added: 1,421,854] (200% of target) if the Company achieved the highest performance level.

*\[3\]Of these shares, [removed: 3,544,674] [added: 3,350,171] remain available for purchase under the ESPP as of December 31, [removed: 2021.][added: 2022.]

[removed: 9,667,290] [added: 8,181,554] shares remain available for issuance as options, restricted stock units, restricted stock awards or performance shares under the 2020 Stock Plan as of December 31, [removed: 2021.*][added: 2022.*]

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | | | | | | |

[removed: Exhibits,] [added: Exhibits and] Financial Statement Schedules

| Equity compensation plans approved by stockholders | | | 11,031,922 | | | $ | 51.58 | | 11,531,725 | | | | | |

| Total | | | 11,031,922 | | | $ | 51.58 | | 11,531,725 | | | | | |

The Company maintains The Hartford 2010 Incentive Stock Plan (the “2010 Stock Plan”), The Hartford 2014 Incentive Stock Plan (the "2014 Stock Plan"), the 2020 Stock Incentive Plan (the "2020 Stock Plan") (collectively the "Stock Plans") and The Hartford Employee Stock Purchase Plan (the “ESPP”).

| | | | | | | | | | | | | | | |

| Equity compensation plans approved by stockholders | | | 11,470,824 | | | $ | 47.46 | | 13,211,964 | | | | | |

| Total | | | 11,470,824 | | | $ | 47.46 | | 13,211,964 | | | | | |

[removed: EXHIBITS,] [added: EXHIBITS AND] FINANCIAL STATEMENT SCHEDULES

| [Report of Independent Registered Public Accounting [removed: Firm](#i995c27a32a614cd39befb7ad103f3b7b_286)] [added: Firm](#i06b18b14201940a9a0e64acb9b8906f8_286)] \[1\] | | | [removed: [127](#i995c27a32a614cd39befb7ad103f3b7b_286)] [added: [119](#i06b18b14201940a9a0e64acb9b8906f8_286)] | | |

| [Consolidated Statements of Operations — For the Years Ended December [removed: 31,](#i995c27a32a614cd39befb7ad103f3b7b_289) [202](#i995c27a32a614cd39befb7ad103f3b7b_289)[1](#i995c27a32a614cd39befb7ad103f3b7b_289)[, 20](#i995c27a32a614cd39befb7ad103f3b7b_289)[20](#i995c27a32a614cd39befb7ad103f3b7b_289)] [added: 31, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289)] [and [removed: 201](#i995c27a32a614cd39befb7ad103f3b7b_289)9] [added: 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] | | | [removed: [129](#i995c27a32a614cd39befb7ad103f3b7b_289)] [added: [121](#i06b18b14201940a9a0e64acb9b8906f8_289)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#i995c27a32a614cd39befb7ad103f3b7b_292)] [added: Income](#i06b18b14201940a9a0e64acb9b8906f8_292) [(](#i06b18b14201940a9a0e64acb9b8906f8_292)[Loss)](#i06b18b14201940a9a0e64acb9b8906f8_292)] [— For the Years Ended December [removed: 31,](#i995c27a32a614cd39befb7ad103f3b7b_292) [2021, 2020 and 201](#i995c27a32a614cd39befb7ad103f3b7b_289)9] [added: 31,](#i06b18b14201940a9a0e64acb9b8906f8_292) [202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] | | | [removed: [130](#i995c27a32a614cd39befb7ad103f3b7b_292)] [added: [122](#i06b18b14201940a9a0e64acb9b8906f8_292)] | | |

| [Consolidated Balance Sheets — As of December 31, [removed: 202](#i995c27a32a614cd39befb7ad103f3b7b_295)[1](#i995c27a32a614cd39befb7ad103f3b7b_295)] [added: 202](#i06b18b14201940a9a0e64acb9b8906f8_295)[2](#i06b18b14201940a9a0e64acb9b8906f8_295)] [and [removed: 20](#i995c27a32a614cd39befb7ad103f3b7b_295)20] [added: 20](#i06b18b14201940a9a0e64acb9b8906f8_295)21] | | | [removed: [131](#i995c27a32a614cd39befb7ad103f3b7b_295)] [added: [123](#i06b18b14201940a9a0e64acb9b8906f8_295)] | | |

| [Consolidated Statements of Changes in Stockholders’ Equity — For the Years Ended December [removed: 31,](#i995c27a32a614cd39befb7ad103f3b7b_298) [2021, 2020 and 201](#i995c27a32a614cd39befb7ad103f3b7b_289)9] [added: 31,](#i06b18b14201940a9a0e64acb9b8906f8_298) [202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] | | | [removed: [132](#i995c27a32a614cd39befb7ad103f3b7b_298)] [added: [124](#i06b18b14201940a9a0e64acb9b8906f8_298)] | | |

| [Consolidated Statements of Cash Flows — For the Years Ended December 31, [removed: 202](#i995c27a32a614cd39befb7ad103f3b7b_301)[1](#i995c27a32a614cd39befb7ad103f3b7b_301)[, 20](#i995c27a32a614cd39befb7ad103f3b7b_301)[20](#i995c27a32a614cd39befb7ad103f3b7b_301)] [added: 202](#i06b18b14201940a9a0e64acb9b8906f8_301)[2](#i06b18b14201940a9a0e64acb9b8906f8_301)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_301)[1](#i06b18b14201940a9a0e64acb9b8906f8_301)] [and [removed: 20](#i995c27a32a614cd39befb7ad103f3b7b_301)[1](#i995c27a32a614cd39befb7ad103f3b7b_301)9] [added: 20](#i06b18b14201940a9a0e64acb9b8906f8_301)20] | | | [removed: [133](#i995c27a32a614cd39befb7ad103f3b7b_301)] [added: [125](#i06b18b14201940a9a0e64acb9b8906f8_301)] | | |

| [Note 1 - Basis of Presentation and Significant Accounting [removed: Policies](#i995c27a32a614cd39befb7ad103f3b7b_307)] [added: Policies](#i06b18b14201940a9a0e64acb9b8906f8_307)] | | | [removed: [134](#i995c27a32a614cd39befb7ad103f3b7b_307)] [added: [126](#i06b18b14201940a9a0e64acb9b8906f8_307)] | | |

| [removed: [Note 3 - Earnings](#i995c27a32a614cd39befb7ad103f3b7b_313) [P](#i995c27a32a614cd39befb7ad103f3b7b_313)[er](#i995c27a32a614cd39befb7ad103f3b7b_313) [Common](#i995c27a32a614cd39befb7ad103f3b7b_313) [Share](#i995c27a32a614cd39befb7ad103f3b7b_313)] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_313) [2](#i06b18b14201940a9a0e64acb9b8906f8_313) [- Earnings Per Common Share](#i06b18b14201940a9a0e64acb9b8906f8_313)] | | | [removed: [144](#i995c27a32a614cd39befb7ad103f3b7b_313)] [added: [133](#i06b18b14201940a9a0e64acb9b8906f8_313)] | | |

| [removed: [Note 4 -] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_316) [3](#i06b18b14201940a9a0e64acb9b8906f8_316) [-] Segment [removed: Information](#i995c27a32a614cd39befb7ad103f3b7b_316)] [added: Information](#i06b18b14201940a9a0e64acb9b8906f8_316)] | | | [removed: [144](#i995c27a32a614cd39befb7ad103f3b7b_316)] [added: [134](#i06b18b14201940a9a0e64acb9b8906f8_316)] | | |

| [removed: [Note 5 -] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_319) [4](#i06b18b14201940a9a0e64acb9b8906f8_319) [-] Fair Value [removed: Measurements](#i995c27a32a614cd39befb7ad103f3b7b_319)] [added: Measurements](#i06b18b14201940a9a0e64acb9b8906f8_319)] | | | [removed: [147](#i995c27a32a614cd39befb7ad103f3b7b_319)] [added: [136](#i06b18b14201940a9a0e64acb9b8906f8_319)] | | |

| [removed: [Note 6 - Investments](#i995c27a32a614cd39befb7ad103f3b7b_325)] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_325) [5](#i06b18b14201940a9a0e64acb9b8906f8_325) [- Investments](#i06b18b14201940a9a0e64acb9b8906f8_325)] | | | [removed: [156](#i995c27a32a614cd39befb7ad103f3b7b_325)] [added: [144](#i06b18b14201940a9a0e64acb9b8906f8_325)] | | |

| [removed: [Note 7 - Derivatives](#i995c27a32a614cd39befb7ad103f3b7b_328)] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_328) [6](#i06b18b14201940a9a0e64acb9b8906f8_328) [- Derivatives](#i06b18b14201940a9a0e64acb9b8906f8_328)] | | | [removed: [164](#i995c27a32a614cd39befb7ad103f3b7b_328)] [added: [152](#i06b18b14201940a9a0e64acb9b8906f8_328)] | | |

| [removed: [Note 8 -] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_331) [7](#i06b18b14201940a9a0e64acb9b8906f8_331) [-] Premiums Receivable and Agents' [removed: Balances](#i995c27a32a614cd39befb7ad103f3b7b_331)] [added: Balances](#i06b18b14201940a9a0e64acb9b8906f8_331)] | | | [removed: [169](#i995c27a32a614cd39befb7ad103f3b7b_331)] [added: [157](#i06b18b14201940a9a0e64acb9b8906f8_331)] | | |

| [removed: [Note 9 - Reinsurance](#i995c27a32a614cd39befb7ad103f3b7b_334)] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_334) [8](#i06b18b14201940a9a0e64acb9b8906f8_334) [- Reinsurance](#i06b18b14201940a9a0e64acb9b8906f8_334)] | | | [removed: [170](#i995c27a32a614cd39befb7ad103f3b7b_334)] [added: [158](#i06b18b14201940a9a0e64acb9b8906f8_334)] | | |

| [removed: [Note 10 -] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_337) [9](#i06b18b14201940a9a0e64acb9b8906f8_337) [-] Deferred Policy Acquisition [removed: Costs](#i995c27a32a614cd39befb7ad103f3b7b_337)] [added: Costs](#i06b18b14201940a9a0e64acb9b8906f8_337)] | | | [removed: [173](#i995c27a32a614cd39befb7ad103f3b7b_337)] [added: [161](#i06b18b14201940a9a0e64acb9b8906f8_337)] | | |

| [Note [removed: 11 -] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_340)[0](#i06b18b14201940a9a0e64acb9b8906f8_340) [-] Goodwill & Other Intangible [removed: Assets](#i995c27a32a614cd39befb7ad103f3b7b_340)] [added: Assets](#i06b18b14201940a9a0e64acb9b8906f8_340)] | | | [removed: [173](#i995c27a32a614cd39befb7ad103f3b7b_340)] [added: [161](#i06b18b14201940a9a0e64acb9b8906f8_340)] | | |

| [Note [removed: 12 -] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_343)[1](#i06b18b14201940a9a0e64acb9b8906f8_343) [-] Reserve for Unpaid Losses and Loss Adjustment [removed: Expenses](#i995c27a32a614cd39befb7ad103f3b7b_343)] [added: Expenses](#i06b18b14201940a9a0e64acb9b8906f8_343)] | | | [removed: [174](#i995c27a32a614cd39befb7ad103f3b7b_346)] [added: [162](#i06b18b14201940a9a0e64acb9b8906f8_346)] | | |

| [Note [removed: 13 -] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_352)[2](#i06b18b14201940a9a0e64acb9b8906f8_352) [-] Reserve for Future Policy [removed: Benefits](#i995c27a32a614cd39befb7ad103f3b7b_352)] [added: Benefits](#i06b18b14201940a9a0e64acb9b8906f8_352)] | | | [removed: [199](#i995c27a32a614cd39befb7ad103f3b7b_352)] [added: [186](#i06b18b14201940a9a0e64acb9b8906f8_352)] | | |

| [Note [removed: 14 - Debt](#i995c27a32a614cd39befb7ad103f3b7b_355)] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_355)[3](#i06b18b14201940a9a0e64acb9b8906f8_355) [- Debt](#i06b18b14201940a9a0e64acb9b8906f8_355)] | | | [removed: [200](#i995c27a32a614cd39befb7ad103f3b7b_355)] [added: [186](#i06b18b14201940a9a0e64acb9b8906f8_355)] | | |

| [removed: [Note 15 - Commitments] [added: Commitments] and [removed: Contingencies](#i995c27a32a614cd39befb7ad103f3b7b_358)] [added: Contingencies (Note 14)] | | | [removed: [203](#i995c27a32a614cd39befb7ad103f3b7b_358)] | | | [added: | | |]

| [Note [removed: 16 - Equity](#i995c27a32a614cd39befb7ad103f3b7b_376)] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_376)[5](#i06b18b14201940a9a0e64acb9b8906f8_376) [- Equity](#i06b18b14201940a9a0e64acb9b8906f8_376)] | | | [removed: [206](#i995c27a32a614cd39befb7ad103f3b7b_376)] [added: [192](#i06b18b14201940a9a0e64acb9b8906f8_376)] | | |

| [Note [removed: 17 -] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_382)[6](#i06b18b14201940a9a0e64acb9b8906f8_382) [-] Income [removed: Taxes](#i995c27a32a614cd39befb7ad103f3b7b_382)] [added: Taxes](#i06b18b14201940a9a0e64acb9b8906f8_382)] | | | [removed: [208](#i995c27a32a614cd39befb7ad103f3b7b_382)] [added: [194](#i06b18b14201940a9a0e64acb9b8906f8_382)] | | |

| [removed: [Note 18 -] Accumulated [removed: Other Comprehensive Income](#i995c27a32a614cd39befb7ad103f3b7b_385)[, Net] [added: other comprehensive income (loss), net] of [removed: Tax](#i995c27a32a614cd39befb7ad103f3b7b_385)] [added: tax] | | | [removed: [210](#i995c27a32a614cd39befb7ad103f3b7b_385)] [added: (3,876)] | | | [added: 172 | | |]

| [Note [removed: 19 -] [added: 1](#i06b18b14201940a9a0e64acb9b8906f8_388)[8](#i06b18b14201940a9a0e64acb9b8906f8_388) [-] Employee Benefit [removed: Plans](#i995c27a32a614cd39befb7ad103f3b7b_388)] [added: Plans](#i06b18b14201940a9a0e64acb9b8906f8_388)] | | | [removed: [211](#i995c27a32a614cd39befb7ad103f3b7b_388)] [added: [197](#i06b18b14201940a9a0e64acb9b8906f8_388)] | | |

| [removed: [Note 20 -] [added: [Note](#i06b18b14201940a9a0e64acb9b8906f8_391) [19](#i06b18b14201940a9a0e64acb9b8906f8_391) [-] Stock Compensation [removed: Plans](#i995c27a32a614cd39befb7ad103f3b7b_391)] [added: Plans](#i06b18b14201940a9a0e64acb9b8906f8_391)] | | | [removed: [218](#i995c27a32a614cd39befb7ad103f3b7b_391)] [added: [204](#i06b18b14201940a9a0e64acb9b8906f8_391)] | | |

| [Note [removed: 21 - Leases](#i995c27a32a614cd39befb7ad103f3b7b_394)] [added: 2](#i06b18b14201940a9a0e64acb9b8906f8_394)[0](#i06b18b14201940a9a0e64acb9b8906f8_394) [- Leases](#i06b18b14201940a9a0e64acb9b8906f8_394)] | | | [removed: [221](#i995c27a32a614cd39befb7ad103f3b7b_394)] [added: [207](#i06b18b14201940a9a0e64acb9b8906f8_394)] | | |

| [Note [removed: 22 -] [added: 2](#i06b18b14201940a9a0e64acb9b8906f8_397)[1](#i06b18b14201940a9a0e64acb9b8906f8_397) [-] Business [removed: Dispositions](#i995c27a32a614cd39befb7ad103f3b7b_397)] [added: Dispositions](#i06b18b14201940a9a0e64acb9b8906f8_397)] | | | [removed: [222](#i995c27a32a614cd39befb7ad103f3b7b_397)] [added: [208](#i06b18b14201940a9a0e64acb9b8906f8_397)] | | |

| [Note [removed: 23 -] [added: 2](#i06b18b14201940a9a0e64acb9b8906f8_400)[2](#i06b18b14201940a9a0e64acb9b8906f8_400) [-] Restructuring and Other [removed: Costs](#i995c27a32a614cd39befb7ad103f3b7b_400)] [added: Costs](#i06b18b14201940a9a0e64acb9b8906f8_400)] | | | [removed: [223](#i995c27a32a614cd39befb7ad103f3b7b_400)] [added: [208](#i06b18b14201940a9a0e64acb9b8906f8_400)] | | |

| [Schedule I — Summary of Investments — Other Than Investments in [removed: Affiliates](#i995c27a32a614cd39befb7ad103f3b7b_406)] [added: Affiliates](#i06b18b14201940a9a0e64acb9b8906f8_406)] | | | [removed: [225](#i995c27a32a614cd39befb7ad103f3b7b_406)] [added: [210](#i06b18b14201940a9a0e64acb9b8906f8_406)] | | |

| [Schedule II — Condensed Financial Information of The Hartford Financial Services Group, [removed: Inc](#i995c27a32a614cd39befb7ad103f3b7b_409).] [added: Inc](#i06b18b14201940a9a0e64acb9b8906f8_409).] | | | [removed: [226](#i995c27a32a614cd39befb7ad103f3b7b_409)] [added: [211](#i06b18b14201940a9a0e64acb9b8906f8_409)] | | |

| [Schedule III — Supplementary Insurance [removed: Information](#i995c27a32a614cd39befb7ad103f3b7b_412)] [added: Information](#i06b18b14201940a9a0e64acb9b8906f8_412)] | | | [removed: [229](#i995c27a32a614cd39befb7ad103f3b7b_412)] [added: [214](#i06b18b14201940a9a0e64acb9b8906f8_412)] | | |

| [Schedule IV — [removed: Reinsurance](#i995c27a32a614cd39befb7ad103f3b7b_415)] [added: Reinsurance](#i06b18b14201940a9a0e64acb9b8906f8_415)] | | | [removed: [231](#i995c27a32a614cd39befb7ad103f3b7b_415)] [added: [216](#i06b18b14201940a9a0e64acb9b8906f8_415)] | | |

| [Schedule V — Valuation and Qualifying [removed: Accounts](#i995c27a32a614cd39befb7ad103f3b7b_418)] [added: Accounts](#i06b18b14201940a9a0e64acb9b8906f8_418)] | | | [removed: [232](#i995c27a32a614cd39befb7ad103f3b7b_418)] [added: [217](#i06b18b14201940a9a0e64acb9b8906f8_418)] | | |

[removed: *\[1\] Deloitte] [added: *\[1\]Deloitte] & Touche LLP (PCAOB ID No. 34) is our principal accountant and an independent registered public accounting firm.*

[removed: *\[2\] Schedule] [added: *\[2\]Schedule] has been omitted as information required is disclosed in the Notes to Consolidated Financial Statements or other Schedules.*

| [Table of [removed: Contents](#i995c27a32a614cd39befb7ad103f3b7b_7)] [added: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] | | | [Index to Consolidated Financial Statements and [removed: Schedules](#i995c27a32a614cd39befb7ad103f3b7b_283)] [added: Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283)] | | | | | |

We have audited the accompanying consolidated balance sheets of The Hartford Financial Services Group, Inc. and its subsidiaries (the "Company") as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] the related consolidated statements of operations, comprehensive [removed: income,] [added: income (loss),] changes in stockholders' equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 18, 2022,] [added: 24, 2023,] expressed an unqualified opinion on the Company's internal control over financial reporting.

| [Note](#i06b18b14201940a9a0e64acb9b8906f8_385) [](#i06b18b14201940a9a0e64acb9b8906f8_385)[17](#i06b18b14201940a9a0e64acb9b8906f8_385) [- Changes in and Reclassifications From Accumulated Other Comprehensive Inc](#i06b18b14201940a9a0e64acb9b8906f8_385)[om](#i06b18b14201940a9a0e64acb9b8906f8_385)[e (Loss)](#i06b18b14201940a9a0e64acb9b8906f8_385) | | | [196](#i06b18b14201940a9a0e64acb9b8906f8_385) | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| Treasury stock retired | | | (1) | | | — | | | — | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| *(in millions)* | | | 2022 | | | 2021 | | | 2020 | | |

| Net change in premiums receivable and agents' balances | | | (562) | | | (190) | | | (72) | | |

| Fixed maturities, AFS | | | 14,996 | | | 22,457 | | | 19,534 | | |

| Limited partnerships and other alternative investments | | | 349 | | | 537 | | | 167 | | |

| Fixed maturities, AFS | | | (14,255) | | | (21,754) | | | (21,112) | | |

| Fixed maturities, FVO | | | (216) | | | (160) | | | — | | |

| Limited partnerships and other alternative investments | | | (1,095) | | | (1,317) | | | (491) | | |

| Treasury stock acquired | | | (1,550) | | | (1,702) | | | (150) | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

An increase in market interest rates since the transition date resulted in a change from an AOCI loss of approximately $65 to an AOCI gain of approximately $35 as of December 31, 2022.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

retrospectively rated policies.

Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value with changes in value recorded in realized capital gains and losses.

These investments represent certain investments in residual interests of securitizations and other securities that contain embedded credit derivatives.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

calculated using agreed upon rates or other financial variables and notional principal amounts.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

under a master netting agreement, which provides the Company with the legal right of offset.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

loss development related to past insurable events.

The Hartford includes contingent deferred sales charge commissions paid to external broker-dealers on sales of shares of mutual funds in DAC, and amortizes the deferred costs over a 12 to 18 month period depending on the share class, or until the underlying shares are redeemed.

Recoverability is reviewed as events or changes in circumstances indicate that the carrying amount may not be recoverable and adjust them accordingly.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

Statements of Operations.

Depreciation expense was $213, $282, and $271 for the years ended December 31, 2022, 2021 and 2020, respectively, and is reported in insurance operating costs and other expenses.

costs to access and develop hosted software arrangements, where The Hartford has the right to access and use the software, but not take possession, and the cost of certain software licenses are reported in other assets on a straight-line basis over the service period.

Amortization of hosted software and certain software licenses was $78, $60, and $42 for the years ended December 31, 2022, 2021, and 2020, respectively, and is reported in insurance operating costs and other expenses.

| [Table of Contents](#i06b18b14201940a9a0e64acb9b8906f8_7) | | | [Index to Consolidated Financial Statements and Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283) | | | | | |

ultimate costs are reasonably fixed and determinable on an individual claim basis.

Treasury Stock

Treasury stock is the cost of common stock repurchased, which includes the purchase price of shares acquired and direct costs to acquire shares, including commissions and excise taxes.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| [Note 2 - Business Acquisitions](#i995c27a32a614cd39befb7ad103f3b7b_310) | | | [142](#i995c27a32a614cd39befb7ad103f3b7b_310) | | |

|

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Loss on reinsurance transaction | | | — | | | — | | | 91 | | |

| Change in other-than-temporary impairment ("OTTI") losses recognized in other comprehensive income ("OCI") | | | | | | | | | 1 | | |

| Issuance of shares for warrant exercise | | | — | | | — | | | (80) | | |

| Issuance of shares for warrant exercise | | | — | | | — | | | 80 | | |

| Issuance of shares for warrant exercise | | | — | | | — | | | 1,721 | | |

| Partnerships | | | 537 | | | 167 | | | 238 | | |

| Partnerships | | | (1,317) | | | (491) | | | (303) | | |

| Amounts paid for business acquired, net of cash acquired | | | — | | | — | | | (1,901) | | |

On May 23, 2019, the Company completed the acquisition of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.137 billion in cash, including transaction expenses.

For further discussion of these transactions, see Note 2 - Business Acquisitions and Note 22 - Business Dispositions.

Goodwill

The updated guidance requires impairment of goodwill if the carrying value of the reporting unit is greater than the estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill.

Goodwill is reviewed for impairment at least annually and more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred.

Under the updated guidance, changes in market-based factors are more likely to result in a goodwill impairment than under the prior accounting guidance, whether a reporting unit's fair value is estimated using an income approach or a market approach.