Hartford Insurance Group (HIG) 10-K risk factor changes: FY2023 vs FY2022

[added: In addition, in part because accounting rules do not permit insurers to reserve for] such catastrophic events until they occur, claims from catastrophic events could have a material adverse effect on our business, financial condition, results of operations or liquidity.

These consequences could have an adverse effect on the value of the assets in our investment [removed: portfolio.][added: portfolio and/or cause a reduction in demand for our products.]

[removed: 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.

[added: 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.

In these markets, we may be compelled to underwrite significant amounts of business at lower than desired rates or accept additional risk not contemplated in our existing rates, participate in the operating losses of residual market plans or pay assessments to fund operating deficits of state-sponsored funds, [removed: possibly leading] [added: which could lead] to lower [removed: returns on equity.][added: than anticipated profitability.]

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 [added: 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.]

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

Competitive activity, use of [removed: predictive analytics,] [added: emerging technologies,] or [added: other] technological changes may adversely affect our market share, demand for our products, or our financial results.

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

[removed: In addition, a number of insurers] [added: Insurers] are [removed: making use of] [added: using or may begin using certain emerging technologies, such as machine learning,] predictive [removed: analytics] [added: analytics, "big data" analysis or other artificial intelligence functions] to, among other things, improve pricing accuracy, be more targeted in marketing, strengthen customer relationships and provide more customized loss prevention services.

If [removed: they] [added: competitors] are able to use [removed: predictive analytics and other data and/or adopt innovative new] [added: these emerging] technologies more effectively [removed: than we are,] [added: and/or efficiently,] it may [removed: give] [added: provide] them a competitive advantage.

Because of the highly competitive nature of the industries [removed: we compete] [added: The Hartford competes] in, there can be no assurance that [removed: we] [added: the Company] will continue to compete effectively with our industry rivals, or that competitive pressure will not have a material adverse effect on [removed: our] [added: the] business and results of operations.

Our business could [removed: also] be affected by [added: other] technological changes, including further advancements in automotive safety features, the development of autonomous or “self-driving” vehicles, and platforms that facilitate ride sharing.

[removed: These technologies could impact the frequency or severity of losses, disrupt the demand] for certain of our products, or reduce the size of the automobile insurance market as a whole.

[added: 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.

Social, economic, political and environmental issues, including rising income inequality, climate change, prescription drug use and addiction, exposures to new substances or those substances previously considered to be safe and found to have latent exposure, along [removed: with the use of social media to proliferate messaging around such issues, has expanded the theories for reporting claims, which may increase our claims administration and/or litigation costs.]

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

[removed: increase] [added: -] the [added: potential for an increase in] frequency [removed: or] [added: and] severity of [removed: claims.][added: hurricane events.]

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

The RBC formula for property and casualty companies sets required statutory surplus levels based on underwriting, [removed: asset and credit] [added: asset, credit,] and off-balance sheet risks.

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

- the value of certain [removed: fixed-income and] [added: fixed maturities,] equity [removed: securities] [added: securities, and limited partnership and other alternative investments] in our investment portfolio;

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 Generally Accepted Accounting Principles ("GAAP") capital held by the Company in determining the [added: Company's financial strength and credit ratings.]

In addition, for exchange-traded derivatives, such as futures, options and "cleared" over-the-counter [added: ("OTC")] derivatives, the Company is generally exposed to the credit risk of the relevant central counterparty clearing house.

Additionally, if the underlying assets supporting the structured securities we invest in default on their payment obligations, our securities [removed: will] [added: may] incur losses.

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 [removed: have a material adverse effect on our financial condition, results of operations or liquidity.]

Moreover, as a holding company that is separate and distinct from [removed: our] [added: its] insurance subsidiaries, [removed: we have] [added: HFSG has] no significant business operations of [removed: our] [added: its] own.

Therefore, [removed: we rely] [added: HFSG relies] on dividends from our insurance company subsidiaries and other subsidiaries as the principal source of cash flow to meet [removed: our] [added: its] obligations.

Subsidiary dividends fund payments on [removed: our] [added: its] debt securities and the payment of dividends to stockholders on [removed: our] [added: its] capital stock.

The laws and regulations of the countries in which [removed: our] [added: its] international insurance subsidiaries are incorporated or deemed commercially domiciled, as well as requirements of the Council of Lloyd’s, also impose limitations on the payment of dividends which, in some instances, are more restrictive.

Dividends paid from [removed: our] [added: its] insurance subsidiaries are further dependent on their cash requirements.

Similarly, management’s decision on whether to record an allowance for credit losses [added: ("ACL")] is subject to significant judgments and assumptions regarding changes in general economic conditions, the issuer's financial condition or future recovery prospects, estimated future cash flows, the expected recovery period and the accuracy of third party information used in internal assessments.

We use technology to process, store, retrieve, evaluate and [removed: utilize] [added: analyze] customer and company data and information.

Our systems have been, and will likely continue to be, subject to viruses or other malicious [removed: codes,] [added: code,] unauthorized access, cyber-attacks (such as ransomware and denial of service), cyber frauds or other computer related penetrations.

Although we attempt to protect [removed: privileged] [added: proprietary] and confidential information, we may be unable to secure the information in all events, especially with clients, vendors, service providers, counterparties and other third parties who may not have appropriate controls to protect confidential information.

[removed: For an] [added: An] equity repurchase plan approved by the [removed: Board, such capital management plan] [added: Board] would be subject to execution risks, including, among others, risks related to market fluctuations, investor interest and potential legal constraints that could delay execution at an otherwise optimal time.

[added: 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.

[removed: 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 [added: rights.]

For example, federal and state legislative efforts on Paid Family and Medical Leave, data privacy and cyber security, risk-based [removed: pricing] [added: pricing, sustainability,] and [removed: ESG] [added: environmental, social and governance ("ESG")] practices could have unanticipated consequences for the Company and its businesses.

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

aggregate limit, we may need to increase our recorded net reserves which could have a material adverse effect on our financial condition, results of operations or liquidity.

For additional information related to risks associated with the adverse development cover ("ADC"), see Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements.

We are vulnerable to losses from catastrophes, both natural and man-made.

Our insurance operations expose us to claims arising out of catastrophes.

Catastrophes can be caused by various unpredictable natural events, including, among others, earthquakes, hurricanes, hailstorms, severe winter weather, wind storms, fires, tornadoes, and pandemics.

Catastrophes can also be man-made, such as terrorist attacks, civil unrest, cyber-attacks, explosions or infrastructure failures.

Catastrophes may also include some major international events designated by Lloyd's of London.

The geographic distribution of our business subjects us to catastrophe exposure for events occurring in a number of areas, including, but not limited to: hurricanes in Florida, the Gulf Coast, the Northeast and the Atlantic coast regions of the United States; tornadoes and hail in the Midwest and Southeast; earthquakes in geographical regions exposed to seismic activity; wildfires in various regions, including the Western United States, Hawaii and Canada; and the spread of disease, which can occur throughout multiple geographic locations.

We are also exposed to catastrophe losses in other parts of the world through our global specialty business.

Any increases in the values and concentrations of insureds and property in these areas would increase the severity of catastrophic events in the future.

In addition, changes in climate and/or weather patterns may increase the frequency and/or intensity of severe weather and natural catastrophe events potentially leading to increased insured losses.

Potential examples include, but are not limited to:

- an increase in the frequency or intensity of wind and thunderstorm and tornado/hailstorm events due to increased convection in the atmosphere,

- more frequent and larger wildfires in certain geographies,

- higher incidence of deluge flooding, and

Insufficient incorporation of climatic trends into widely used catastrophe models and internal tools to assess risk from natural catastrophe perils could lead to ineffective evaluation and management of catastrophe risk.

For a further discussion of climate-related risks, see the above-referenced Risk Factor, “Changing climate and weather patterns may adversely affect our business, financial condition and results of operation.”

Our businesses also have exposure to global or nationally occurring pandemics caused by highly infectious and potentially fatal diseases spread through human, animal or plant populations.

In the event of one or more catastrophes, policyholders may be unable to meet their obligations to pay premiums on our insurance policies.

Further, our liquidity could be constrained by

a catastrophe, or multiple catastrophes.

Our insureds may be increasingly exposed to cyber-related attacks with insured

In addition, technological advancements and innovation are occurring in distribution, underwriting, claims and operations at a rapid pace that may continue to accelerate.

Nontraditional competitors could enter the insurance market and further accelerate these trends.

These technologies could impact the frequency or severity of losses, disrupt the demand

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | | | |

with the use of social media to proliferate messaging around such issues, has expanded the theories for reporting claims, which may increase our claims administration and/or litigation costs.

COVID-19 illness could continue to impact our business and may have a material adverse impact on our results of operations.

While the impact of COVID-19 has subsided, a surge of COVID-19 infections could continue to impact our business, particularly with respect to mortality claims in our group benefits business, and will depend on future developments which are highly uncertain and cannot be easily predicted including: the potential spread of new COVID-19 variants; the continued effectiveness of vaccines; natural immunity and current or emerging therapeutic treatments in preventing infection, serious illness and death; and the percentage of those infected who are of working age.

Below are several key effects of COVID-19 on the Company’s business results, financial condition, results of operations and/or liquidity:

- Exposure to COVID-19 business interruption property claims - Nearly all of our property insurance policies require direct physical loss or damage to property and contain standard exclusions that we believe preclude coverage for COVID-19 related claims, and the vast majority of such policies contain exclusions for virus-related losses.

Nevertheless, the Company and certain of its writing companies have been served as defendants in lawsuits seeking insurance coverage under commercial insurance policies for alleged losses resulting from the shutdown or suspension of our insureds’ businesses due to the spread of COVID-19.

While the Company and its subsidiaries deny the allegations and are defending vigorously and while almost none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss, it is possible that adverse outcomes, if any, in the aggregate, could have a material adverse effect on the Company’s consolidated operating results.

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | | | |

- The possibility of a resurgence of a higher level of mortality losses - The Company’s Group Benefits business has issued group life policies to employers and associations, which may result in increased death claims as a result of surges in COVID-19 infections causing mortality where COVID-19 is specifically listed as the cause of death and indirect impacts of COVID-19 that includes an increased number of deaths associated with chronic conditions exacerbated by COVID-19.

In addition, while the Company has increased pricing for group life coverage in response to higher levels of mortality, it is possible that, even apart from surges in COVID-19 infections, the Company will experience a higher level of mortality going forward associated with chronic conditions.

We may also continue to experience higher short-term disability and paid family leave claims from employees and covered individuals who have been affected by COVID-19.

For the reasons discussed above, the global public health and economic impacts caused by COVID-19 could have a material adverse effect on our results of operations.

These events could materially adversely

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | | | |

Geopolitical crises or hostile actions taken by nation states or terrorist

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

- changes in equity market levels;

- the value of certain derivative instruments;

Company's financial strength and credit ratings.

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

rights.

end of which insurance firms are required to follow such standards.

Thus, significant

[removed: Fixed Maturities, AFS by Type][added: | Fixed maturities | | | $ | 31,680 | |]

| | | | December 31, [removed: 2022 | | | | | | | | |] [added: 2023] | | | | | | | | | | | | December 31, [removed: 2021 | | | | | | | | |] [added: 2022] | | | | | | | | |

| [removed: Residential Mortgage-Backed Securities ("RMBS") | | | | | | | | | | | | | | | | | | | | | | | | | | |] [added: FASB] | | | [added: Financial Accounting Standards Board] | | | [added: RMBS] | | | [added: Residential Mortgage-Backed Securities] | | | | | |

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | [Index to [removed: MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97)] [added: MD&A](#i9b54cc746e184599b631808d88b32e18_97)] | | |

The following [removed: table presents] [added: tables present] the Company’s exposure to CMBS and RMBS by credit quality included in the preceding Fixed Maturities, AFS by Type table.

| Sub-Prime | | | [removed: 3] [added: 1] | | | [removed: 3] [added: 1] | | | [removed: 21] [added: 12] | | | [removed: 21] [added: 12] | | | [removed: 10] [added: 5] | | | [removed: 10] [added: 5] | | | [removed: 8] [added: 10] | | | [removed: 8] [added: 10] | | | [removed: 23] [added: 12] | | | [removed: 23] [added: 12] | | | [removed: 65] [added: 40] | | | [removed: 65] [added: 40] | | |

Exposure to CMBS and RMBS as of December 31, [removed: 2021][added: 2023]

| Sub-Prime | | | [removed: 6] [added: 3] | | | [removed: 7] [added: 3] | | | [removed: 34] [added: 21] | | | [removed: 35] [added: 21] | | | [removed: 47] [added: 10] | | | [removed: 48] [added: 10] | | | [removed: 24] [added: 9] | | | [removed: 24] [added: 9] | | | [removed: 49] [added: 29] | | | [removed: 50] [added: 29] | | | [removed: 160] [added: 72] | | | [removed: 164] [added: 72] | | |

[removed: A loan participation interest represents a pro-rata share in interest and principal payments generated by the] participated loan, and the relationship between the Company as loan originator, lead participant and servicer and the third party [added: as a participant are governed by a participation agreement.]

As of December 31, [removed: 2021,] [added: 2023,] mortgage loans had an amortized cost of [removed: $5.4] [added: $6.1] billion and carrying value of [removed: $5.4] [added: $6.1] billion, with an ACL of [removed: $29.][added: $51.]

The Company funded [removed: $913] [added: $589] million of commercial mortgage loans with a weighted average loan-to-value (“LTV”) ratio of [removed: 56% and a weighted average yield of 3.6% during the twelve months ended December 31, 2022.][added: 57%]

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

There were no mortgage loans held for sale as of December 31, [removed: 2022,] [added: 2023,] or December 31, [removed: 2021.][added: 2022.]

| | | | December 31, [removed: 2022 | | |] [added: 2023] | | | | | | | | | December 31, [removed: 2021 | | |] [added: 2022] | | | | | |

| General Obligation | | | $ | [removed: 863] [added: 807] | | $ | [removed: 838] [added: 814] | | AA | | | | | | $ | [removed: 910] [added: 863] | | $ | [removed: 1,031] [added: 838] | | [removed: AA+] [added: AA] | | |

| Pre-refunded \[1\] | | | [removed: 235] [added: 155] | | | [removed: 242] [added: 158] | | | [removed: AAA] [added: AA+] | | | | | | [removed: 487] [added: 235] | | | [removed: 519] [added: 242] | | | AAA | | |

| Transportation | | | [removed: 1,435] [added: 1,325] | | | [removed: 1,342] [added: 1,298] | | | A+ | | | | | | [removed: 1,404] [added: 1,435] | | | [removed: 1,579] [added: 1,342] | | | A+ | | |

| Health Care | | | [removed: 1,132] [added: 974] | | | [removed: 1,012] [added: 902] | | | A+ | | | | | | [removed: 1,274] [added: 1,132] | | | [removed: 1,397] [added: 1,012] | | | A+ | | |

| Leasing \[2\] | | | [removed: 714] [added: 761] | | | [removed: 659] [added: 732] | | | AA- | | | | | | [removed: 813] [added: 714] | | | [removed: 874] [added: 659] | | | AA- | | |

| Education | | | [removed: 601] [added: 527] | | | [removed: 572] [added: 520] | | | AA | | | | | | [removed: 670] [added: 601] | | | [removed: 748] [added: 572] | | | AA | | |

| Water & Sewer | | | [removed: 411] [added: 362] | | | [removed: 384] [added: 347] | | | [removed: AA] [added: AA+] | | | | | | [removed: 504] [added: 411] | | | [removed: 538] [added: 384] | | | AA | | |

| Sales Tax | | | [removed: 304] [added: 231] | | | [removed: 295] [added: 237] | | | AA | | | | | | [removed: 370] [added: 304] | | | [removed: 436] [added: 295] | | | AA | | |

| Power | | | [removed: 280] [added: 275] | | | [removed: 268] [added: 271] | | | A | | | | | | [removed: 317] [added: 280] | | | [removed: 357] [added: 268] | | | [removed: A+] [added: A] | | |

| Other | | | [removed: 670] [added: 611] | | | [removed: 622] [added: 588] | | | A+ | | | | | | [removed: 626] [added: 670] | | | [removed: 675] [added: 622] | | | [removed: AA-] [added: A+] | | |

| Total Revenue | | | [removed: 5,620] [added: 5,245] | | | [removed: 5,216] [added: 5,067] | | | AA- | | | | | | [removed: 6,076] [added: 5,620] | | | [removed: 6,707] [added: 5,216] | | | AA- | | |

| Total Municipal | | | $ | [removed: 6,718] [added: 6,207] | | $ | [removed: 6,296] [added: 6,039] | | AA- | | | | | | $ | [removed: 7,473] [added: 6,718] | | $ | [removed: 8,257] [added: 6,296] | | AA- | | |

As of December 31, [removed: 2021,] [added: 2023,] the largest issuer concentrations were the New York [removed: State Dormitory] [added: City Transitional Finance] Authority, the State of [removed: California,] [added: Illinois,] and the [removed: Pennsylvania State Turnpike Commission,] [added: Metropolitan Transportation Authority,] which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds.

In total, municipal bonds make up [removed: 12%] [added: 11%] of the fair value of the Company's investment portfolio.

| | | | | | | | | | | | | | | | [removed: 2022] [added: 2023] | | | | | | | | | [removed: 2021] [added: 2022] | | | | | | | | | [removed: 2020] [added: 2021] | | | | | | | | | | | |

| Real estate joint ventures and funds | | | | | | | | | | | | | | | | | | | | | $ | [removed: 316] [added: (10)] | | [removed: 21.9] [added: (0.5)] | | % | | | | $ | [removed: 149] [added: 316] | | [removed: 18.4] [added: 21.9] | | % | | | | $ | [removed: 85] [added: 149] | | [removed: 20.3] [added: 18.4] | | % |

| Private equity funds | | | | | | | | | | | | | | | | | | | | | [removed: 186] [added: 161] | | | [removed: 14.2] [added: 9.9] | | % | | | | [removed: 456] [added: 186] | | | [removed: 51.3] [added: 14.2] | | % | | | | [removed: 106] [added: 456] | | | [removed: 12.4] [added: 51.3] | | % |

| Other funds | | | | | | | | | | | | | | | | | | | | | [removed: 32] [added: 29] | | | [removed: 10.5] [added: 6.6] | | % | | | | [removed: 33] [added: 32] | | | [removed: 17.7] [added: 10.5] | | % | | | | [removed: 9] [added: 33] | | | [removed: 7.1] [added: 17.7] | | % |

| Other alternative investments \[2\] | | | | | | | | | | | | | | | | | | | | | [removed: (19)] [added: 32] | | | [removed: (3.8] [added: 6.6] | | [removed: %)] [added: %] | | | | [removed: 94] [added: (19)] | | | [removed: 22.6] [added: (3.8)] | | % | | | | [removed: 22] [added: 94] | | | [removed: 5.4] [added: 22.6] | | % |

| Total | | | | | | | | | | | | | | | | | | | | | $ | [removed: 515] [added: 212] | | [removed: 14.4] [added: 4.8] | | % | | | | $ | [removed: 732] [added: 515] | | [removed: 31.8] [added: 14.4] | | % | | | | $ | [removed: 222] [added: 732] | | [removed: 12.3] [added: 31.8] | | % |

*\[2\]Consists of an insurer-owned life insurance policy which is primarily invested in private [removed: equity, fixed income, hedge] [added: equity] funds and [removed: public equity.*][added: fixed income.*]

| | | | December 31, [removed: 2022] [added: 2023] | | | | | | | | | [added: | | | | | | | | |] December 31, [removed: 2021] [added: 2022] | | | | | | [added: | | | | | | | | |]

| Real estate joint ventures and funds | | | $ | [removed: 1,713] [added: 1,931] | | [removed: 41.0] [added: 40.4] | | % | | | | $ | [removed: 1,315] [added: 1,713] | | [removed: 39.2] [added: 41.0] | | % |

| Private equity funds | | | [removed: 1,565] [added: 1,838] | | | [removed: 37.5] [added: 38.4] | | % | | | | [removed: 1,256] [added: 1,565] | | | 37.5 | | % |

| Other funds | | | [removed: 413] [added: 498] | | | [removed: 9.9] [added: 10.4] | | % | | | | [removed: 274] [added: 413] | | | [removed: 8.2] [added: 9.9] | | % |

| Other alternative investments \[1\] | | | [removed: 486] [added: 518] | | | [removed: 11.6] [added: 10.8] | | % | | | | [removed: 508] [added: 486] | | | [removed: 15.1] [added: 11.6] | | % |

| Agency \[1\] | | | $ | 20 | | $ | 19 | | $ | 1,159 | | $ | 1,043 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,179 | | $ | 1,062 | |

| Bonds | | | 852 | | | 795 | | | 545 | | | 485 | | | 371 | | | 317 | | | 147 | | | 119 | | | 235 | | | 215 | | | 2,150 | | | 1,931 | | |

| Interest Only | | | 76 | | | 72 | | | 54 | | | 53 | | | — | | | — | | | 7 | | | 7 | | | — | | | — | | | 137 | | | 132 | | |

| Total CMBS | | | 948 | | | 886 | | | 1,758 | | | 1,581 | | | 371 | | | 317 | | | 154 | | | 126 | | | 235 | | | 215 | | | 3,466 | | | 3,125 | | |

| Agency | | | — | | | — | | | 2,342 | | | 2,185 | | | — | | | — | | | — | | | — | | | — | | | — | | | 2,342 | | | 2,185 | | |

| Non-Agency | | | 1,263 | | | 1,144 | | | 526 | | | 477 | | | 300 | | | 260 | | | 189 | | | 169 | | | 15 | | | 12 | | | 2,293 | | | 2,062 | | |

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

| Total RMBS | | | 1,264 | | | 1,145 | | | 2,880 | | | 2,674 | | | 305 | | | 265 | | | 199 | | | 179 | | | 27 | | | 24 | | | 4,675 | | | 4,287 | | |

| Total CMBS & RMBS | | | $ | 2,212 | | $ | 2,031 | | $ | 4,638 | | $ | 4,255 | | $ | 676 | | $ | 582 | | $ | 353 | | $ | 305 | | $ | 262 | | $ | 239 | | $ | 8,141 | | $ | 7,412 | |

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As of December 31, 2023, the credit quality of the majority of agency-backed CMBS and RMBS changed from AAA to AA+ due to a downgrade of U.S. government-sponsored enterprises by Fitch in August of 2023.

A loan participation interest represents a pro-rata share in interest and principal payments generated by the

The increase in the allowance is primarily attributable to revised economic scenarios, lower property valuations, and overall weaker real estate fundamentals.

and a weighted average yield of 7.2% during the twelve months ended December 31, 2023.

| Housing | | | 179 | | | 172 | | | AA | | | | | | 73 | | | 62 | | | AA- | | |

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| Total | | | 3,850 | | | $ | 29,886 | | $ | (14) | | $ | (2,305) | | $ | 27,567 | | | | | 4,936 | | | $ | 35,771 | | $ | (12) | | $ | (3,442) | | $ | 32,317 | |

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The Company recorded net credit losses of $14, primarily attributable to increases in the ACL of $12 related to three below investment grade corporate issuers and $2 related to a CMBS that had an ACL in the prior period driven by prepayments.

For the year ended December 31, 2023

The increase is primarily attributable to revised economic scenarios, lower property valuations, and overall weaker real estate fundamentals.

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- P&C - The Company's property and casualty insurance subsidiaries have regulatory dividend capacity of $1.8 billion for 2024.

- $194 of interest on debt, net of settlements on a related interest rate swap.

See Note 14 - Debt of Notes to Consolidated Financial Statements;

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liquidity resources to manage liquidity across a range of economic scenarios.

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payments on an intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company.

In 2023, the Company funded $3 to a rabbi trust that is designated for other defined benefit pension plans and contributed $1 to the Canadian Pension Plan.

There were no plan contributions in 2022 or 2021 for other defined benefit pension plans.

The Company made direct benefit payments of $5, $5 and $7 on behalf of the other postretirement plans in 2023, 2022 and 2021, respectively.

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qualified defined benefit pension plan in 2024.

| | | | December 31, 2023 | | |

| Total | | | $ | 33,861 | |

| | | | December 31, 2023 | | | | | |

| Total | | | $ | 8,657 | | | | |

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

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

| | | | Amortized Cost | | | ACL | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | | Percent of Total Fair Value | | | | | | Amortized Cost | | | ACL | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | | Percent of Total Fair Value | | |

| Asset-backed securities ("ABS") | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Consumer loans | | | $ | 1,538 | | $ | — | | $ | — | | $ | (41) | | $ | 1,497 | | 4.1 | | % | | | | $ | 959 | | $ | — | | $ | 11 | | $ | (2) | | $ | 968 | | 2.3 | | % |

| Other | | | 478 | | | — | | | — | | | (34) | | | 444 | | | 1.3 | | % | | | | 166 | | | — | | | 2 | | | (1) | | | 167 | | | 0.4 | | % |

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

| Commercial Mortgage-Backed Securities ("CMBS") | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 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 | | % |

| Interest only | | | 184 | | | — | | | 5 | | | (15) | | | 174 | | | 0.5 | | % | | | | 238 | | | — | | | 12 | | | (1) | | | 249 | | | 0.6 | | % |

| Corporate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Basic industry | | | 797 | | | — | | | 1 | | | (64) | | | 734 | | | 2.0 | | % | | | | 761 | | | — | | | 34 | | | (5) | | | 790 | | | 1.8 | | % |

| Capital goods | | | 1,380 | | | — | | | 2 | | | (117) | | | 1,265 | | | 3.5 | | % | | | | 1,442 | | | — | | | 84 | | | (9) | | | 1,517 | | | 3.5 | | % |

| Consumer cyclical | | | 1,100 | | | — | | | — | | | (97) | | | 1,003 | | | 2.8 | | % | | | | 1,161 | | | (1) | | | 50 | | | (5) | | | 1,205 | | | 2.8 | | % |

| Consumer non-cyclical | | | 2,102 | | | — | | | 6 | | | (188) | | | 1,920 | | | 5.3 | | % | | | | 2,473 | | | — | | | 134 | | | (8) | | | 2,599 | | | 6.1 | | % |

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

| Financial services | | | 4,923 | | | — | | | 8 | | | (441) | | | 4,490 | | | 12.4 | | % | | | | 4,648 | | | — | | | 214 | | | (20) | | | 4,842 | | | 11.3 | | % |

| Tech./comm. | | | 2,312 | | | (2) | | | 9 | | | (249) | | | 2,070 | | | 5.7 | | % | | | | 2,658 | | | — | | | 216 | | | (11) | | | 2,863 | | | 6.7 | | % |

| Transportation | | | 731 | | | — | | | 1 | | | (81) | | | 651 | | | 1.8 | | % | | | | 744 | | | — | | | 43 | | | (3) | | | 784 | | | 1.8 | | % |

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

| Other | | | 502 | | | — | | | — | | | (51) | | | 451 | | | 1.2 | | % | | | | 535 | | | — | | | 23 | | | (3) | | | 555 | | | 1.3 | | % |

| Foreign govt./govt. agencies | | | 596 | | | — | | | — | | | (49) | | | 547 | | | 1.5 | | % | | | | 883 | | | — | | | 33 | | | (6) | | | 910 | | | 2.1 | | % |

| Municipal bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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

| Tax-exempt | | | 5,656 | | | — | | | 91 | | | (367) | | | 5,380 | | | 14.9 | | % | | | | 6,394 | | | — | | | 704 | | | (1) | | | 7,097 | | | 16.6 | | % |

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

| Non-agency | | | 2,277 | | | — | | | — | | | (312) | | | 1,965 | | | 5.4 | | % | | | | 2,101 | | | — | | | 11 | | | (16) | | | 2,096 | | | 4.9 | | % |

| Alt-A | | | 7 | | | — | | | — | | | — | | | 7 | | | — | | % | | | | 12 | | | — | | | 1 | | | — | | | 13 | | | — | | % |

| Sub-prime | | | 65 | | | — | | | — | | | — | | | 65 | | | 0.2 | | % | | | | 160 | | | — | | | 4 | | | — | | | 164 | | | 0.4 | | % |

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

| Total fixed maturities, AFS | | | $ | 39,533 | | $ | (12) | | $ | 152 | | $ | (3,442) | | $ | 36,231 | | 100.0 | | % | | | | $ | 40,788 | | $ | (1) | | $ | 2,204 | | $ | (144) | | $ | 42,847 | | 100.0 | | % |

| Fixed maturities, FVO | | | | | | | | | | | | | | | $ | 333 | | | | | | | | | | | | | | | | | | | | $ | 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. government.*

The fair value of fixed maturities, AFS decreased as compared to December 31, 2021, primarily due to a decline in valuations due to higher interest rates and wider credit spreads.

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

|

| | | | | | | | | |

[added: Workers’ compensation rates have been under downward pressure for the industry due to favorable loss cost trends in] recent years, including due to lower claim frequency that occurred during the pandemic.

[removed: The vast majority of the business written by] our Navigators Group insurance subsidiaries is reported in the global specialty business unit.

The products are marketed and distributed using independent retail agents and brokers, wholesale agents and global and specialty [added: insurance and] reinsurance brokers, with business also sold direct-to-consumer.

Middle & large commercial business is considered “higher touch” and involves [added: highly specialized expertise, including] individual underwriting and pricing decisions.

[removed: Competition in this] market includes stock companies, mutual companies, alternative risk sharing groups and other underwriting organizations.

Within this competitive environment, The Hartford is [removed: working] [added: continuing] to [removed: deepen] [added: invest in] its [removed: product and] underwriting [added: systems and] capabilities, including investing in speed to market solutions for the lower end of middle market, [added: enhancing its digital experience,] leverage its sales and underwriting talent and expand its use of data analytics and third party data to make risk selection and pricing [removed: decisions.][added: decisions as the firm pursues responsible growth strategies to deliver target returns.]

[removed: Through] [added: In addition, through] business partners, [removed: the Company] [added: middle & large commercial] offers business insurance coverages to exporters and other U.S. companies with a physical presence overseas.

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[removed: 2022] [added: 2023] Earned Premiums of [removed: $2,949] [added: $3,087] by Line of Business

[removed: ][added: ]

[removed: 2022] [added: 2023] Earned Premiums of [removed: $2,949] [added: $3,087] by Product

[removed: ][added: ]

Business sold to AARP members, either direct or through independent agents, amounted to earned premiums of [removed: $2.7] [added: $2.9] billion, $2.7 billion and [removed: $2.8] [added: $2.7] billion in [removed: 2022, 2021] [added: 2023, 2022] and [removed: 2020,] [added: 2021,] respectively.

The Company [removed: is in the process of introducing] [added: continues to roll out] its new [removed: product,] [added: cloud-based product and platform,] Prevail, [removed: which is being rolled out for new business] on a [removed: state-by-state basis] [added: state by state basis,] and was in [removed: sixteen] [added: 39] states as of December [removed: 2022.][added: 2023.]

[removed: Prevail is tailored to the mature] market and includes digital service capabilities that provide real time transaction support.

Among other things, overall rate levels, price segmentation, [added: rating factors and underwriting procedures are being updated through the introduction of Prevail.]

[removed: Through the agency channel, Personal Lines provides products and services] to customers through a network of independent agents in the standard personal lines market, primarily serving mature, preferred consumers.

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

[removed: Personal] lines insurance is written by insurance companies of varying sizes that compete principally on the basis of price, product, service, including claims handling, the insurer's ratings and brand recognition.

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

[removed: Carriers,] [added: Many carriers,] including The Hartford, [removed: have invested] [added: continue to invest] in telematics capabilities to enable better risk selection and pricing segmentation in response to changes in driving patterns.

[removed: In 43 states,] [added: Currently in] the [added: states where the Prevail product has rolled out, The] Hartford offers its telematics program, TrueLane, which [removed: offers] [added: uses a mobile app solution to offer] discounts for good driving behavior based on such attributes as braking, speed, distracted driving, and acceleration.

In [removed: 2022,] [added: 2023,] inflation [removed: had an increasing] [added: continued to] impact [removed: on] the industry.

[removed: A] [added: In addition, a] tight labor market and inflation on material prices increased the cost to repair homes.

[removed: 2022] [added: 2023] Premiums and Other Considerations of [removed: $6,057][added: $6,515]

[removed: ][added: ]

| Group Life | | | Typically is term life insurance provided in the form of [added: a] yearly renewable [removed: term life insurance.] [added: policy.] Other life coverages in this category include accidental [removed: death] [added: loss of life] and [removed: dismemberment] [added: severe injury benefits] and [added: business] travel accident insurance. | | |

| Group Disability | | | Typically comprised of short-term [removed: disability and] [added: disability,] long-term [removed: disability] [added: disability, and paid family leave] plans that pay a percentage of an employee’s salary for a period of time if they are ill or injured and cannot perform the duties of their job. Short-term and long-term disability policies have elimination periods that must be satisfied prior to benefit payments. The Company also earns fee income from leave management services for federal, state and employer family and medical leave [added: and workplace accommodation] programs, as well as the administration of employer self-funded disability plans. | | |

As of [removed: 2022, eleven] [added: 2023, thirteen] states and the District of Columbia have enacted mandated PFL or PFML programs.

[removed: Vermont,] New [removed: Hampshire] [added: Hampshire, Tennessee, Texas, Vermont,] and Virginia have also created opt-in paid leave programs, and [added: additional states are considering adopting PFL or PFML programs.]

[added: The] market for group benefits [removed: is expected] [added: continues] to grow as [removed: the] COVID-19 [removed: pandemic has driven] [added: drove] new demand for employee benefits among both employees and [removed: employers.][added: employers for addressing mental health, wellness, and caregiving costs.]

Competitive factors include the extent of products offered, price, the quality of customer and claims handling services, [added: digital capabilities,] and the Company's relationship with third-party distributors and private exchanges.

[removed: Our] [added: We offer our] voluntary products [removed: include] [added: including] critical illness, accident and hospital indemnity coverage to employees through our Employee Choice Benefits programs.

Hartford Funds Segment Assets Under Management ("AUM") of [removed: $124,107] [added: $131,025] as of December 31, [removed: 2022][added: 2023]

[removed: ][added: ]

Mutual Fund AUM [added: of $115,417] as of December 31, [removed: 2022][added: 2023]

[removed: ][added: ]

| [removed: Talcott Resolution] [added: Third-party] life and annuity separate accounts [added: under management] | | | Relates to assets of the life and annuity business sold in May 2018 that are still managed by the Company's Hartford Funds segment. | | |

AUM are separated into three distinct categories referred to as mutual funds, ETFs and [removed: Talcott Resolution] [added: third-party] life and annuity separate [removed: accounts, which relate to the life and annuity business sold in May 2018.][added: accounts under management.]

Our funds and ETFs are sold through national and regional broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust [added: groups and registered investment advisers.]

Through its three lines of business, small commercial, middle & large commercial, and global specialty, Commercial Lines offers its products and services to businesses in the United States ("U.S.") and internationally.

Commercial Lines generally consists of products written for small businesses and middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty insurance and reinsurance brokers.

The majority of Commercial Lines written premium is generated by small commercial and middle market lines, which provide coverage options and customized pricing based on the policyholder’s individual risk characteristics.

Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines.

Small commercial provides coverages for small businesses, which the Company generally considers to be businesses with an annual payroll under $20, revenues under $50 and property values less than $20 per location.

Primary coverages provided include workers' compensation, property, general liability and commercial automobile.

Within small commercial, both property and general liability coverages are offered under a single package policy, marketed under the Spectrum name.

Small commercial also provides excess and surplus lines coverage to small businesses including umbrella, general liability, property and other coverages.

Middle & large commercial business provides insurance coverages to medium-sized and national accounts businesses, which are companies whose payroll, revenue and property values exceed the small business definition.

In addition to offering standard commercial lines products, including workers' compensation, property, general liability and commercial automobile products, middle & large commercial includes program business which provides tailored programs, primarily to customers with common risk characteristics.

On national accounts, a significant portion of the business is written through large deductible programs.

Other programs written within middle & large commercial are retrospectively-rated where the ultimate premium collected from the insured is adjusted based on how incurred losses for the policy year develop over time, subject to a minimum and maximum premium.

Also within middle & large commercial, the Company writes captive programs business, which provides tailored programs to those seeking a loss sensitive solution where premiums are adjustable based on loss experience.

Lines of business written by small commercial and middle & large commercial are subject to rate regulation and written pricing increases or decreases that are partly in response to loss cost trends.

Workers’ compensation rates are based on loss experience and are informed by data submitted through the National Council on Compensation Insurance ("NCCI").

The vast majority of the business written by

Competition in this

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In recent years, surplus lines have accounted for a significant portion of the total U.S. property and casualty commercial market, and The Hartford continues to grow its surplus book of business.

The Lloyd’s platform is comprised of over 50 syndicates and 350 brokers, who benefit from the ability to write risks in over 200 countries using Lloyd’s international licenses.

The Lloyd’s platform has shifted from remediation to growth in recent years, as the market emerged from consecutive underwriting losses, returning to more profitable underwriting conditions in recent years.

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Prevail is tailored to the mature

Through the agency channel, Personal Lines provides products and services

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However, in 2023, many personal lines insurance companies reduced marketing spend and implemented non-rate actions to reduce new business production while working to achieve adequate rate.

Personal

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Alabama, Arkansas, Florida,

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segments.

Corporate also includes investment management fees and expenses related to managing third-party assets.

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On January 1, 2023, the Company adopted the Financial Accounting Standards Board's ("FASB") updated guidance on accounting for long duration insurance contracts, which was applied on a modified retrospective basis as of January 1, 2021.

For additional information refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements.

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HIMCO provides customized

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HIMCO manages the Company's investment portfolios to maximize economic value, ensure sufficient funding of the Company's liabilities, and achievement of enterprise financial objectives while remaining within acceptable risk tolerances.

The Hartford’s middle & large commercial business 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.

Since 2010, surplus lines has accounted for an increasing share of total commercial lines industry direct written premiums.

rating factors and underwriting procedures are being updated through the introduction of Prevail.

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

advantage.

additional states are considering adopting PFL or PFML programs.

The

For example, there is increased interest in benefits addressing mental health and wellness, caregiving costs and remote work considerations.

The Hartford Funds segment continues to manage the mutual fund assets of Talcott Resolution, though these assets are expected to continue to decline over time.

groups and registered investment advisers.

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

goodwill and other expenses not allocated to the reporting segments.

and peril.

These activities are performed by

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

to support The Hartford’s various product obligations, within internally established objectives, guidelines and risk tolerances.

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

- Providing career growth and development opportunities by enhancing our talent management systems, including succession planning, executive recruitment, training, development and retention strategies; and

The Hartford seeks to be an insurance industry leader in ensuring a diverse workforce and creating an equitable and inclusive workplace, enabling us to attract and leverage top talent to meet our business goals.

We take a whole-company approach to ensure we meet our stated DEI goals.

We hold our leaders accountable for making progress against our DEI goals.

To that end, the Company requires each business and functional area, in partnership with our Human Resources team, to create and adopt individualized DEI plans with specific DEI goals.

One of the ways we do this is by working to mitigate bias in our Human Resource systems and offering programs to educate employees on minimizing unconscious bias in the workplace.

In 2022, over 3,600 unique participants engaged in Courageous Conversations, a program to allow employees to respectfully exchange perspectives, that ultimately contributes to a more inclusive workplace.

Additionally, one of our enterprise leadership programs, the "Empower" program, is designed to accelerate the readiness and encourage sponsorship of high performing, high potential people of color.

Our 2021 performance share awards under the Company’s long-term incentive plan included a performance share modifier tied to the Company's workforce representation goals.

The modifier will determine whether an increase or decrease of 10% on the pay-out for these awards is warranted based upon performance against predetermined year-end 2023 representation goals for women and people of color in executive level roles.

This change was described in greater detail in our 2022 proxy statement.

We currently expect that the 2024 and 2027 performance share awards will include a similar modifier to encourage continued progress toward the Company's 2030 representation goals.

Risk Factors

returns and result in an adverse impact on operating results.

- Interest Rate Risk - Continued increases in interest rates to combat inflation could lead to an economic downturn or recession, which would lower the demand for many of the

For additional information on interest rate sensitivity, see Part II, Item 7, MD&A - Enterprise Risk Management, Financial Risk - Interest Rate Risk.

Supply chain issues arising from conditions due to the pandemic have contributed to inflation in the cost of labor and repairs for insurance claims paid to insureds and third parties.

Russia's February 2022 invasion of Ukraine has further exacerbated supply chain issues contributing to higher inflation for goods and services, including higher energy costs.

customers, economic activity may be depressed and lower insured exposure, hindering the Company's growth.

As the Company has expanded its international operations, exposure to exchange rate fluctuations has increased.

COVID-19 illness could continue to impact our business and may have a material adverse impact on our results of operations.

While the impact of COVID-19 has subsided, a surge of COVID-19 infections could continue to impact our business, particularly with respect to mortality claims in our group benefits business, and will depend on future developments which are highly uncertain and cannot be easily predicted including: the potential spread of new COVID-19 variants; the continued effectiveness of vaccines; natural immunity and current or emerging therapeutic treatments in preventing infection, serious illness and death; and the percentage of those infected who are of working age.

Additional uncertainty exists regarding the potential for further legislative, regulatory, and judicial responses to COVID-19 pertaining specifically to insurance underwriting and claims.

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: 14] [added: 15] - Commitments and Contingencies of the Notes to Consolidated Financial Statements.

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

For the fiscal year ended December 31, [removed: 2022][added: 2023]

[removed: ][added: ]

| 6.10% [added: Senior] Notes due October 1, 2041 | | | HIG 41 | | | The New York Stock Exchange | | |

| Large accelerated filer | | | ☑ | | | | | | [removed: Non-accelerated] [added: Accelerated] filer | | | ☐ | | |

| [removed: Accelerated] [added: Non-accelerated] filer | | | ☐ | | | | | | Smaller reporting company | | | ☐ | | |

The aggregate market value of the shares of Common Stock held by non-affiliates of the registrant as of June 30, [removed: 2022] [added: 2023] was approximately [removed: $21] [added: $22] billion, based on the closing price of [removed: $65.43] [added: $72.02] per share of the Common Stock on the New York Stock Exchange on June 30, [removed: 2022.][added: 2023.]

As of February [removed: 23, 2023,] [added: 22, 2024,] there were outstanding [removed: 313,057,095] [added: 297,350,060] shares of Common Stock, $0.01 par value per share, of the registrant.

Portions of the registrant’s definitive proxy statement for its [removed: 2023] [added: 2024] annual meeting of stockholders are incorporated by reference in Part III of this Form 10-K.

| 1A. | | | [RISK [removed: FACTORS](#i06b18b14201940a9a0e64acb9b8906f8_76)] [added: FACTORS](#i9b54cc746e184599b631808d88b32e18_76)] | | | [removed: [21](#i06b18b14201940a9a0e64acb9b8906f8_76)] [added: [23](#i9b54cc746e184599b631808d88b32e18_76)] | | |

| 3 | | | [LEGAL [removed: PROCEEDINGS](#i06b18b14201940a9a0e64acb9b8906f8_82)] [added: PROCEEDINGS](#i9b54cc746e184599b631808d88b32e18_82)] | | | [removed: [33](#i06b18b14201940a9a0e64acb9b8906f8_82)] [added: [37](#i9b54cc746e184599b631808d88b32e18_82)] | | |

| 5 | | | [MARKET FOR THE HARTFORD'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#i06b18b14201940a9a0e64acb9b8906f8_88)] [added: SECURITIES](#i9b54cc746e184599b631808d88b32e18_88)] | | | [removed: [34](#i06b18b14201940a9a0e64acb9b8906f8_88)] [added: [38](#i9b54cc746e184599b631808d88b32e18_88)] | | |

| 7 | | | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#i06b18b14201940a9a0e64acb9b8906f8_97)] [added: OPERATIONS](#i9b54cc746e184599b631808d88b32e18_97)] | | | [removed: [36](#i06b18b14201940a9a0e64acb9b8906f8_97)] [added: [40](#i9b54cc746e184599b631808d88b32e18_97)] | | |

| 9A. | | | [CONTROLS AND [removed: PROCEDURES](#i06b18b14201940a9a0e64acb9b8906f8_265)] [added: PROCEDURES](#i9b54cc746e184599b631808d88b32e18_265)] | | | [removed: [114](#i06b18b14201940a9a0e64acb9b8906f8_265)] [added: [117](#i9b54cc746e184599b631808d88b32e18_265)] | | |

| 9B. | | | [removed: OTHER INFORMATION] [added: [OTHER INFORMATION](#i9b54cc746e184599b631808d88b32e18_3931)] | | | [removed: None] [added: [119](#i9b54cc746e184599b631808d88b32e18_3931)] | | |

| | | | [Part [removed: III](#i06b18b14201940a9a0e64acb9b8906f8_268)] [added: III](#i9b54cc746e184599b631808d88b32e18_268)] | | | | | |

| 10 | | | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE [removed: HARTFORD](#i06b18b14201940a9a0e64acb9b8906f8_271)] [added: HARTFORD](#i9b54cc746e184599b631808d88b32e18_271)] | | | [removed: [116](#i06b18b14201940a9a0e64acb9b8906f8_271)] [added: [120](#i9b54cc746e184599b631808d88b32e18_271)] | | |

| 12 | | | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER [removed: MATTERS](#i06b18b14201940a9a0e64acb9b8906f8_274)] [added: MATTERS](#i9b54cc746e184599b631808d88b32e18_274)] | | | [removed: [117](#i06b18b14201940a9a0e64acb9b8906f8_274)] [added: [121](#i9b54cc746e184599b631808d88b32e18_274)] | | |

| | | | [Part [removed: IV](#i06b18b14201940a9a0e64acb9b8906f8_277)] [added: IV](#i9b54cc746e184599b631808d88b32e18_277)] | | | | | |

| 15 | | | [removed: [EXHIBITS](#i06b18b14201940a9a0e64acb9b8906f8_280) [](#i06b18b14201940a9a0e64acb9b8906f8_280)[AND](#i06b18b14201940a9a0e64acb9b8906f8_280) [FINANCIAL] [added: [EXHIBITS AND FINANCIAL] STATEMENT [removed: SCHEDULES](#i06b18b14201940a9a0e64acb9b8906f8_280)] [added: SCHEDULES](#i9b54cc746e184599b631808d88b32e18_280)] | | | [removed: [118](#i06b18b14201940a9a0e64acb9b8906f8_280)] [added: [122](#i9b54cc746e184599b631808d88b32e18_280)] | | |

| | | | [EXHIBITS [removed: INDEX](#i06b18b14201940a9a0e64acb9b8906f8_424)] [added: INDEX](#i9b54cc746e184599b631808d88b32e18_424)] | | | [removed: [218](#i06b18b14201940a9a0e64acb9b8906f8_424)] [added: [225](#i9b54cc746e184599b631808d88b32e18_424)] | | |

*\[c\] The information called for by Item 11 will be set forth in the Proxy Statement under the subcaptions "Compensation Discussion and Analysis", "Executive [removed: Compensation",] [added: Compensation Tables",] "Director Compensation", "Report of the Compensation and Management Development Committee", [removed: and "Compensation and Management Development Committee Interlocks] [added: "Pay Versus Performance"] and [removed: Insider Participation"] [added: "CEO Pay Ratio"] and is incorporated herein by reference.*

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

◦technological changes, including usage-based methods of determining premiums, advancements in [added: certain emerging technologies, including machine learning, predictive analytics, “big data” analysis or other artificial intelligence functions, advancements in] automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing;

The Hartford Financial Services Group, Inc. [added: ("HFSG")] (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 funds [added: ("ETF")] to individual and business customers in the United States as well as in the United Kingdom and other international locations.

As of December 31, [removed: 2022,] [added: 2023,] total assets and total stockholders’ equity of The Hartford were [removed: $73.0] [added: $76.8] billion and [removed: $13.6] [added: $15.3] billion, respectively.

The Company sells diverse and innovative products through multiple distribution channels to individuals and businesses and is considered a leading property and casualty and [removed: employee] group benefits insurer.

As a holding company, The Hartford Financial Services Group, Inc. is separate and distinct from its subsidiaries and has no [removed: significant business operations of its own.]

Our strategy to maximize value creation for all stakeholders focuses on advancing underwriting excellence, emphasizing digital capabilities, maximizing distribution channels, optimizing organizational efficiency, and [removed: advancing environmental, social and governance ("ESG") leadership.][added: embedding sustainability principles into our business to drive value creation while impacting society at large.]

We are investing in [removed: claims processing,] [added: end-to-end transformation, advancing data,] analytics, [removed: data science] and digital capabilities [added: across the organization] to [added: improve customer experience and] strengthen our existing competitive advantages.

An [removed: ethics, people,] [added: ethical, people-oriented,] and performance-driven culture drives our values.

[removed: ][added: ]

- Optimizing organizational efficiency with a focus on continuous [removed: improvement.][added: improvement;]

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

- Continuing to advance [removed: ESG] [added: sustainability] leadership in order to attract and retain top talent and enhance value to stockholders.

For more information on retaining and attracting talent through our diversity, equity and inclusion [added: ("DEI")] initiatives, refer to the Human Capital Resources section of Part 1, Item 1.

Within our businesses, in [removed: 2023] [added: 2024] we will continue to pursue objectives specific to each, including:

- Maintaining underwriting and pricing discipline across property and liability lines of [removed: business in the face of increased loss costs while navigating continued pricing pressure in workers’ compensation;][added: business;]

- Accelerating use of [removed: data,] [added: data and] digital [removed: technology] [added: technology, including artificial intelligence,] and voice of customer to drive a best-in-class experience;

- Regaining competitive momentum through the continued rollout of our new automobile and homeowners [removed: product,] [added: product and platform,] Prevail, which is tailored to the mature market and includes digital service capabilities that provide real time transaction support;

- [removed: Addressing] [added: Continue addressing] higher loss cost trends through pricing and underwriting actions;

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023

| | | | [Part I](#i9b54cc746e184599b631808d88b32e18_13) | | | | | |

| 1 | | | [BUSINESS](#i9b54cc746e184599b631808d88b32e18_16) | | | [6](#i9b54cc746e184599b631808d88b32e18_16) | | |

| 1C. | | | [CYBERSECURITY](#i9b54cc746e184599b631808d88b32e18_3957) | | | [36](#i9b54cc746e184599b631808d88b32e18_3957) | | |

| 2 | | | [PROPERTIES](#i9b54cc746e184599b631808d88b32e18_79) | | | [37](#i9b54cc746e184599b631808d88b32e18_79) | | |

| | | | [Part II](#i9b54cc746e184599b631808d88b32e18_85) | | | | | |

| | | | [SIGNATURES](#i9b54cc746e184599b631808d88b32e18_427) | | | [228](#i9b54cc746e184599b631808d88b32e18_427) | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to Business](#i9b54cc746e184599b631808d88b32e18_16) | | |

Index

| Description | | | Page | | |

| [General](#i9b54cc746e184599b631808d88b32e18_19) | | | [6](#i9b54cc746e184599b631808d88b32e18_19) | | |

| [Organization](#i9b54cc746e184599b631808d88b32e18_22) | | | [6](#i9b54cc746e184599b631808d88b32e18_22) | | |

| [Purpose and Strategic Priorities](#i9b54cc746e184599b631808d88b32e18_25) | | | [6](#i9b54cc746e184599b631808d88b32e18_25) | | |

| [Reporting Segments and Corporate](#i9b54cc746e184599b631808d88b32e18_28) | | | [8](#i9b54cc746e184599b631808d88b32e18_28) | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| [Reserves](#i9b54cc746e184599b631808d88b32e18_49) | | | [17](#i9b54cc746e184599b631808d88b32e18_49) | | |

| [Underwriting for P&C and Group Benefits](#i9b54cc746e184599b631808d88b32e18_52) | | | [18](#i9b54cc746e184599b631808d88b32e18_52) | | |

| [Claims Administration for P&C and Group Benefits](#i9b54cc746e184599b631808d88b32e18_55) | | | [18](#i9b54cc746e184599b631808d88b32e18_55) | | |

| [Reinsurance](#i9b54cc746e184599b631808d88b32e18_58) | | | [18](#i9b54cc746e184599b631808d88b32e18_58) | | |

| [Investment Operations](#i9b54cc746e184599b631808d88b32e18_61) | | | [18](#i9b54cc746e184599b631808d88b32e18_61) | | |

| [Enterprise Risk Management](#i9b54cc746e184599b631808d88b32e18_64) | | | [19](#i9b54cc746e184599b631808d88b32e18_64) | | |

| [Regulation and Intellectual Property](#i9b54cc746e184599b631808d88b32e18_67) | | | [19](#i9b54cc746e184599b631808d88b32e18_67) | | |

| [Human Capital Resources](#i9b54cc746e184599b631808d88b32e18_70) | | | [20](#i9b54cc746e184599b631808d88b32e18_70) | | |

| [Available Information](#i9b54cc746e184599b631808d88b32e18_73) | | | [22](#i9b54cc746e184599b631808d88b32e18_73) | | |

| | | | | | |

significant business operations of its own.

We are committed to maintaining and enhancing our inclusive culture and are proud of our reputation for ethics and integrity.

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to Business](#i9b54cc746e184599b631808d88b32e18_16) | | |

- Embracing a culture of growth and innovation and cross-enterprise collaboration;

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to Business](#i9b54cc746e184599b631808d88b32e18_16) | | |

- Grow revenues in all customer segments with an emphasis on employer groups with under 500 lives;

- Advancing data and technology capabilities, including artificial intelligence, to unlock process improvement and enable agility.

2023 Revenues of $24,527 by Segment

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to Business](#i9b54cc746e184599b631808d88b32e18_16) | | |

2023 Earned Premiums of $11,641 by Product

| | | | | | |

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

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

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

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

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

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

We have proactive positions on ESG issues important to our sustainability and our capacity to deliver long-term stockholder value.

For information on the Company’s operational transformation and cost reduction plan (called “Hartford Next”), refer to The Hartford’s Operations section of Part II - Item 7.

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

- Transforming underwriting to improve customer experience and reduce expenses;

- Continuing to grow revenues through strong sales and persistency;

- Investing in data and analytics and technology, including artificial intelligence, to enhance risk management and reinvent processes.

The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with acquisitions, certain M&A costs, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments.

Corporate also includes investment management fees and expenses related to managing third party business, including management of a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well as certain of Talcott's affiliates.

Talcott Resolution Life, Inc. is the holding company of the life and annuity business that we sold in May 2018.

In addition, up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as “Talcott Resolution”).

2022 Revenues of $22,362 by Segment

2022 Earned Premiums of $10,571 by Product

Through its three lines of business, small commercial, middle & large commercial, and global specialty, Commercial Lines offers its products and services to businesses in the United States ("U.S.") and internationally.

Commercial Lines generally consists of products written for small businesses and middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers.

The majority of Commercial Lines written premium is generated by small commercial and middle market lines, which provide coverage options and customized pricing based on the policyholder’s individual risk characteristics.

Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines.

Small commercial provides coverages for small businesses, which the Company generally considers to be businesses with an annual payroll under $20, revenues under $50 and property values less than $20 per location.

Primary coverages provided include workers' compensation, property, general liability and commercial automobile.

Within small commercial, both property and general liability coverages are offered under a single package policy, marketed under the Spectrum name.

Small commercial also provides excess and surplus lines coverage to small businesses including umbrella, general liability, property and other coverages.

Middle & large commercial business provides insurance coverages to medium-sized and national accounts businesses, which are companies whose payroll, revenue and property values exceed the small business definition.

In addition to offering standard commercial lines products, including workers' compensation, property, general liability and commercial automobile products, middle & large commercial includes program business which provides tailored programs, primarily to customers with common risk characteristics.

On national accounts, a significant portion of the business is written through large deductible programs.

Other programs written within middle & large commercial are retrospectively-rated where the ultimate premium collected from the insured is adjusted based on how incurred losses for the policy year develop over time, subject to a minimum and maximum premium.

Also within middle & large commercial, the Company writes captive programs business, which provides tailored programs to those seeking a loss sensitive solution where premiums are adjustable based on loss experience.

Lines of business written by small commercial and middle & large commercial are subject to rate regulation and written pricing increases or decreases that are partly in response to loss cost trends.

Workers’ compensation rates are based on loss experience and are informed by data submitted through the National Council on Compensation Insurance ("NCCI").

Workers’ compensation rates have been under downward pressure for the industry due to favorable loss cost trends in

CYBERSECURITY

The Hartford has implemented an information protection program with established governance routines for assessing and managing risks.

The Hartford employs a ‘defense-in-depth’ strategy that uses multiple security measures to protect the integrity of the Company's information assets.

This ‘defense-in-depth’ strategy aligns to the National Institute of Standards and Technology Cybersecurity Framework, where controls are implemented throughout our environments to achieve five categorical objectives, including identification, protection, detection, response and recovery.

Our 'defense in depth' program uses several methods to protect against intrusion by a bad actor, including such techniques as reputational filtering, anti-virus scans, intrusion prevention, multi-factor authentication, and account isolation among others.

We also use numerous approaches to detect ransomware and other cyber attacks, including, among others, dark web searches, email sandboxing, endpoint detection, and intrusion detection.

The Hartford continues to monitor and enhance its framework to respond to evolving cyber threats and regulations for data privacy, including the European Union General Data Protection Regulation and the California Consumer Privacy Act.

We regularly assess our programs and control environment, leveraging externally conducted cyber tests and evaluations along with internally managed cyber risk assessments and testing.

Additionally, the Company collaborates with industry associations, government authorities, peers and external advisors to monitor the threat environment and to inform our security practices.

In connection with the regular assessment of third-party service providers performed by our procurement organization, our information protection team performs a third-party assessment of each vendor’s information security practices and protocols, including its readiness to protect against and respond to cybersecurity breaches.

Third-party service providers are categorized in tiers depending on the significance of their operations to the Company’s business processes and risk assessments for vendors in the highest tier are completed periodically.

With respect to cyber, we have procedures to verify each service provider’s information security controls, and each vendor completes a cyber questionnaire that also addresses their resiliency in the event of an intrusion to their systems.

We proactively communicate with suppliers to understand mitigation steps taken when major cyber exposures are identified.

We are executing on a multi-year roadmap to, among other things, further improve our ability to defend against, respond to, and recover from ransomware and other cyber events; enhance application cybersecurity capabilities, including defenses against fraud attacks; and to ensure security capabilities are built into new cloud-based platforms that we adopt.

We are also required to maintain strong cyber defense protocols in the states where we are authorized or licensed to write business.

A number of states where our insurance companies are domiciled, including Connecticut, have adopted the NAIC Insurance Data Security Model Law.

Our legal team monitors the status of new cybersecurity regulations, including notification requirements.

To the best knowledge of Management, no risks from cybersecurity threats have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.

For further discussion of the Company's risks related to cybersecurity, see Part I, Item 1A, — Risk Factors for the risk factor "Our businesses may suffer and we may incur substantial costs if we are unable to access our systems and safeguard the security of our data in the event of a disaster, cyber breach or other information security incident."

From a governance perspective, senior members of our Enterprise Risk Management, Information Protection and Internal Audit functions provide detailed, regular reports on cybersecurity matters to the Board, primarily through the Audit Committee, which oversees controls for the Company's major risk exposures and has principal responsibility for oversight of cybersecurity risk, and the Finance, Investment and Risk Management Committee ("FIRMCo"), which oversees business risk related to cyber insurance products.

The topics covered by these updates include the Company's activities, policies and procedures to prevent, detect and respond to cybersecurity incidents, as well as lessons learned from cybersecurity incidents and internal and external testing of our cyber defenses.

The Audit Committee is provided with updates on technology and cybersecurity risks at least four times annually, including annual reviews of the Company's cybersecurity program and technology risks and controls, and bi-annual updates on operational risks (in spring and fall).

Given its importance, the full Board is invited to attend the annual cybersecurity program and time is reserved at each Audit Committee meeting for cybersecurity technology matters that warrant discussion between the standing sessions.

In addition, our Enterprise Risk Management team provides FIRMCo with an assessment of cybersecurity insurance risk once per year.

The Audit Committee, FIRMCo and the full Board are apprised of developments in the external environment and business strategies that present additional potential cyber risk exposure to the Company, such as modifications to on-line platforms and expanded use of cloud-based applications, on an ongoing, as-needed basis.

As a result, cybersecurity and cyber risk are typically discussed more frequently than the annual minimum requirements.

The Company has established an Executive Privacy & Security Council ("EPSC") that meets semi-annually.

Formed in 2003, the EPSC consists of a cross-functional senior leaders, including the Chief Information Officer ("CIO"), the Chief Information Security Officer ("CISO"), the Chief Risk Officer ("CRO") and General Counsel among others.

The EPSC receives a monthly written executive briefing on topics, and with metrics related to cybersecurity, including incident prevention, detection, mitigation and remediation.

Quarterly, the IT Risk Council, made up of senior IT leaders, is also provided with an update of cybersecurity risks and preparedness.

Various other meetings are held on cybersecurity topics periodically, including monthly business operating reviews, and meetings of the Enterprise Risk and Capital Committee ("ERCC") and executive leadership team.

|

| | | | | | | | | |

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

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | | | |

Part I - Item 1C.

Cybersecurity

Both the CIO and the CISO have expertise assessing and managing cybersecurity risks.

The CIO has served in her current role since 2019 and served in similar technology leadership roles before her current role.

She has eighteen years of executive leadership experience in the financial services industry and twenty-eight years of overall technology experience, during which time she has led large scale business transformation, delivered innovative technology strategies and has overseen and modernized complex technology portfolios.

As of December 31, [removed: 2022,] [added: 2023,] The Hartford owned building space totaling approximately 1.8 million square feet consisting of its home office complex in Hartford, Connecticut and other properties within the greater Hartford, Connecticut area.

December 31, [removed: 2022,] [added: 2023,] The Hartford leased approximately [removed: 1.1 million] [added: 935 thousand] square feet throughout [removed: North America,] [added: the United States,] 22 thousand square feet in London and 6 thousand square feet in other international branches.

All of the properties owned or leased are used by one or more of [removed: all] [added: the] five reporting segments, [added: or are used for corporate purposes,] depending on the location.

As of February [removed: 23, 2023,] [added: 22, 2024,] the Company had approximately [removed: 9,231] [added: 7,835] registered holders of record of the Company's common stock.

Repurchases of common stock by the Company during the quarter ended December 31, [removed: 2022] [added: 2023] are set forth below.

During the period from January 1, [removed: 2023] [added: 2024] through February [removed: 23, 2023,] [added: 22, 2024,] the Company repurchased [removed: 2.7] [added: 2.3] million shares for [removed: $209.][added: $200.]

| Repurchases of Common Stock by the Issuer for the Three Months Ended December 31, [removed: 2022] [added: 2023] | | | | | | | | | | | | | | |

*\[1\]Includes [removed: 33,996] [added: 22,241] 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 [removed: $72.76] [added: $78.24] in employee tax withholding obligations related to net share settlements in the three months ended December 31, [removed: 2022.*][added: 2023.*]

[removed: In addition to the authorization covering the period from January 1, 2021 to December 31, 2022, in] [added: *\[2\]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.

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

| Cumulative Five-Year Total Return | | | | | | | | | | | | | | | | | | | | | | | | [removed: | | | | | |]

| | | | Base | | | | | | | | | | | | | | | | | | | | | [removed: | | | | | |]

| Company/Index | | | [removed: 2017 | | | | | | | | |] 2018 | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | [added: 2023] | | | [added: | | |]

| The Hartford Financial Services Group, Inc. | | | $ | 100 | | [removed: | | | | | |] $ | [removed: 80.76] [added: 139.72] | | $ | [removed: 112.83] [added: 116.07] | | $ | [removed: 93.74] [added: 167.45] | | $ | [removed: 135.23] [added: 188.07] | | $ | [removed: 151.89] [added: 204.11] | | | | |

[removed: ][added: ]

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | [Index to [removed: MD&A](#i06b18b14201940a9a0e64acb9b8906f8_97)] [added: MD&A](#i9b54cc746e184599b631808d88b32e18_97)] | | |

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

The Hartford defines increases or decreases greater than or equal to [removed: 200%] [added: 200%, or changes from a net gain to a net loss position, or vice versa,] as [removed: “NM”] [added: "NM"] or not meaningful.

For discussion of the earliest of the three years included in the financial statements of the current filing, refer to Part 2, Item 7, [removed: Management's Discussion and Analysis of Financial Condition and Results of Operations] [added: MD&A] in The Hartford’s [removed: 2021] [added: 2022] Form 10-K Annual Report.

| [Key Performance Measures and [removed: Ratios](#i06b18b14201940a9a0e64acb9b8906f8_103)] [added: Ratios](#i9b54cc746e184599b631808d88b32e18_103)] | | | [removed: [36](#i06b18b14201940a9a0e64acb9b8906f8_103)] [added: [40](#i9b54cc746e184599b631808d88b32e18_103)] | | |

| [The Hartford's [removed: Operations](#i06b18b14201940a9a0e64acb9b8906f8_106)] [added: Operations](#i9b54cc746e184599b631808d88b32e18_106)] | | | [removed: [41](#i06b18b14201940a9a0e64acb9b8906f8_106)] [added: [45](#i9b54cc746e184599b631808d88b32e18_106)] | | |

| [Financial [removed: Highlights](#i06b18b14201940a9a0e64acb9b8906f8_109)] [added: Highlights](#i9b54cc746e184599b631808d88b32e18_109)] | | | [removed: [44](#i06b18b14201940a9a0e64acb9b8906f8_109)] [added: [48](#i9b54cc746e184599b631808d88b32e18_109)] | | |

| [Consolidated Results of [removed: Operations](#i06b18b14201940a9a0e64acb9b8906f8_112)] [added: Operations](#i9b54cc746e184599b631808d88b32e18_112)] | | | [removed: [45](#i06b18b14201940a9a0e64acb9b8906f8_112)] [added: [49](#i9b54cc746e184599b631808d88b32e18_112)] | | |

| [Investment [removed: Results](#i06b18b14201940a9a0e64acb9b8906f8_115)] [added: Results](#i9b54cc746e184599b631808d88b32e18_115)] | | | [removed: [48](#i06b18b14201940a9a0e64acb9b8906f8_115)] [added: [52](#i9b54cc746e184599b631808d88b32e18_115)] | | |

| [Critical Accounting [removed: Estimates](#i06b18b14201940a9a0e64acb9b8906f8_118)] [added: Estimates](#i9b54cc746e184599b631808d88b32e18_118)] | | | [removed: [50](#i06b18b14201940a9a0e64acb9b8906f8_118)] [added: [54](#i9b54cc746e184599b631808d88b32e18_118)] | | |

| [Commercial [removed: Lines](#i06b18b14201940a9a0e64acb9b8906f8_148)] [added: Lines](#i9b54cc746e184599b631808d88b32e18_148)] | | | [removed: [72](#i06b18b14201940a9a0e64acb9b8906f8_148)] [added: [74](#i9b54cc746e184599b631808d88b32e18_148)] | | |

| [Personal [removed: Lines](#i06b18b14201940a9a0e64acb9b8906f8_151)] [added: Lines](#i9b54cc746e184599b631808d88b32e18_151)] | | | [removed: [77](#i06b18b14201940a9a0e64acb9b8906f8_151)] [added: [78](#i9b54cc746e184599b631808d88b32e18_151)] | | |

| [Property & Casualty Other [removed: Operations](#i06b18b14201940a9a0e64acb9b8906f8_154)] [added: Operations](#i9b54cc746e184599b631808d88b32e18_154)] | | | [removed: [81](#i06b18b14201940a9a0e64acb9b8906f8_154)] [added: [83](#i9b54cc746e184599b631808d88b32e18_154)] | | |

| [Group [removed: Benefits](#i06b18b14201940a9a0e64acb9b8906f8_157)] [added: Benefits](#i9b54cc746e184599b631808d88b32e18_157)] | | | [removed: [82](#i06b18b14201940a9a0e64acb9b8906f8_157)] [added: [84](#i9b54cc746e184599b631808d88b32e18_157)] | | |

| [Hartford [removed: Funds](#i06b18b14201940a9a0e64acb9b8906f8_160)] [added: Funds](#i9b54cc746e184599b631808d88b32e18_160)] | | | [removed: [84](#i06b18b14201940a9a0e64acb9b8906f8_160)] [added: [86](#i9b54cc746e184599b631808d88b32e18_160)] | | |

| [removed: [Corporate](#i06b18b14201940a9a0e64acb9b8906f8_163)] [added: [Corporate](#i9b54cc746e184599b631808d88b32e18_163)] | | | [removed: [86](#i06b18b14201940a9a0e64acb9b8906f8_163)] [added: [88](#i9b54cc746e184599b631808d88b32e18_163)] | | |

| [Enterprise Risk [removed: Management](#i06b18b14201940a9a0e64acb9b8906f8_166)] [added: Management](#i9b54cc746e184599b631808d88b32e18_166)] | | | [removed: [87](#i06b18b14201940a9a0e64acb9b8906f8_166)] [added: [89](#i9b54cc746e184599b631808d88b32e18_166)] | | |

| [Capital Resources and [removed: Liquidity](#i06b18b14201940a9a0e64acb9b8906f8_205)] [added: Liquidity](#i9b54cc746e184599b631808d88b32e18_205)] | | | [removed: [104](#i06b18b14201940a9a0e64acb9b8906f8_205)] [added: [108](#i9b54cc746e184599b631808d88b32e18_205)] | | |

| [Impact of New Accounting [removed: Standards](#i06b18b14201940a9a0e64acb9b8906f8_259)] [added: Standards](#i9b54cc746e184599b631808d88b32e18_259)] | | | [removed: [112](#i06b18b14201940a9a0e64acb9b8906f8_259)] [added: [115](#i9b54cc746e184599b631808d88b32e18_259)] | | |

Throughout the MD&A, we use certain terms and abbreviations, the more commonly used are summarized in the [removed: [Acronyms](#i06b18b14201940a9a0e64acb9b8906f8_262)] [added: [Acronyms](#i9b54cc746e184599b631808d88b32e18_262)] section.

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

Book Value per Diluted Share excluding accumulated other comprehensive income ("AOCI")- This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding [added: and dilutive potential common shares.]

In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net [removed: income available to common stockholders,] [added: income,] are included in the determination of core earnings.

| | | | [removed: 2022] [added: 2023] | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | |

| Net income available to common stockholders | | | [removed: 1,794] [added: 2,483] | | | [removed: 2,344] [added: 1,798] | | | [removed: 1,716] [added: 2,350] | | |

| Net realized losses (gains) excluded from core earnings, before tax | | | [removed: 626] [added: 152] | | | [removed: (505)] [added: 626] | | | [removed: 18] [added: (505)] | | |

| Restructuring and other costs, before tax | | | [removed: 13] [added: 6] | | | [removed: 1] [added: 13] | | | [removed: 104] [added: 1] | | |

| October 1, 2023 - October 31, 2023 | | | 2,043,934 | | | $ | 71.72 | | 2,039,013 | | | $ | 1,553 | |

| November 1, 2023 - November 30, 2023 | | | 1,294,172 | | | $ | 76.29 | | 1,290,733 | | | $ | 1,456 | |

| December 1, 2023 - December 31, 2023 | | | 1,370,044 | | | $ | 80.19 | | 1,356,163 | | | $ | 1,348 | |

| Total | | | 4,708,150 | | | $ | 75.44 | | 4,685,909 | | | | | |

| | | | Period | | | | | | | | | | | | | | | | | | | | |

| S&P 500 Index | | | $ | 100 | | $ | 131.49 | | $ | 155.68 | | $ | 200.37 | | $ | 164.08 | | $ | 207.21 | | | | |

| S&P Insurance Composite Index | | | $ | 100 | | $ | 129.38 | | $ | 128.81 | | $ | 170.19 | | $ | 187.42 | | $ | 204.78 | | | | |

On January 1, 2023, the Company adopted the FASB's updated guidance on accounting for long duration insurance contracts, which was applied on a modified retrospective basis as of January 1, 2021.

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

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

| Core earnings | | | $ | 2,767 | | $ | 2,496 | | $ | 2,184 | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

Effective Policy Count Retention- Represents the number of policies expected to renew in the current year period, based on contract effective dates, divided by the new and renewal policies effective in the prior period.

Effective policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or because of a decision to reduce premium writings in certain classes of business or states.

Effective policy count retention is also affected by advertising and rate actions taken by us and competitors, as well as the effect of subsequent cancellations and non-renewals by customers.

Effective policy count retention statistics are subject to change from period to period based on the effect of differences between actual and expected policy cancellations throughout the policy period.

Premium Retention- For middle & large commercial, represents the ratio of prior period premiums that were successfully renewed divided by premiums associated with policies available for renewal in the current period.

Premium retention excludes premium amounts from annual audits, renewal written price increases and changes in exposure, including amount of insurance.

Premium retention statistics are subject to change from period to period based on a number of factors, including the effect of subsequent cancellations and non-renewals.

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

ROA, core earnings, should

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

The Company received a total of $217 in connection with

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

uncertain and actual investment yields could differ significantly from expected investment yields, affecting profitability of the business.

To achieve those expected savings, we incurred approximately $323 through December 31, 2023.

Included in the restructuring costs of approximately $124

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

were $35 of employee severance, $25 to retire certain IT applications, and $64 for consulting and lease termination expenses.

| Net expense (savings) before tax | | | | | | | | | $ | (359) | | $ | (490) | | $ | (601) | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

| Ý | | | Increased $685 or 38% | | | | | | | | | Ý | | | Increased $2.51 or 46% | | | | | | | | | Ý | | | Increased $7.76 or 19% | | | | | |

| | | | + | | | Reduction in outstanding shares due to share repurchases | | | | | | | | | + | | | An increase in AOCI, primarily driven by a decrease in net unrealized losses on AFS securities | | | | | | | | | | | | | | |

| + | | | Lower group life and group disability loss ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| \- | | | Higher current accident year catastrophe losses in P&C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Ý | | | Increased 10 bps | | | | | | | | | Ý | | | Deteriorated 0.3 points | | | | | | | | | Ý | | | Increased 2.6 points | | | | | |

| + | | | A higher yield on fixed maturity securities due to reinvesting at higher rates and an increased yield on variable-rate securities | | | | | | | | | + | | | Higher personal automobile loss costs, driven by severity | | | | | | | | | + | | | Lower group life and group disability loss ratios | | | | | |

| | | | \- | | | A lower expense ratio primarily driven by higher earned premium and lower marketing spend in Personal Lines | | | | | | | | | + | | | Effect of higher fully insured ongoing premiums, including a lower expense ratio | | | | | | | | | | | | | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | [Index to MD&A](#i9b54cc746e184599b631808d88b32e18_97) | | |

| 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 | | | | | |

*\[2\]On December 17, 2020, the Board of Directors authorized 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 $1.0 billion on April 22, 2021, and by $500 on October 28, 2021, bringing the aggregate repurchase authorization to $3.0 billion through December 31, 2022.

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

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

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

| 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 | | | | |

and dilutive potential common shares.

| Net income | | | $ | 1,815 | | $ | 2,365 | | $ | 1,737 | |

| Core earnings | | | $ | 2,492 | | $ | 2,178 | | $ | 2,086 | |

Renewal

the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development.

was completed on June 30, 2021.

For

Impact of Ukraine conflict on our results of operations

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”.

Included in the estimated costs of $387, we expect to incur restructuring costs of approximately $125, including $41 of employee severance, and approximately $84 of other costs, including consulting expenses, lease termination expenses and the cost to retire certain IT applications.

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

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

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

| \- | | | A change to net realized losses | | | | | | | | | \- | | | Decrease in net income available to common stockholders | | | | | | | | | \- | | | Decrease in common stockholders' equity largely due to a decrease in AOCI, primarily driven by a change from net unrealized gains to net unrealized losses on available for sale securities | | | | | |

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

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

| + | | | In Commercial Lines, the effect of higher earned premiums | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Þ | | | Decreased 30 bps | | | | | | | | | Þ | | | Improved 1.7 points | | | | | | | | | Ý | | | Increased 1.1 points | | | | | |

| | | | | | | + | | | Higher personal automobile and homeowners loss costs | | | | | | | | | \- | | | A higher group life loss ratio excluding the impact of excess mortality | | | | | | | | | | | |

| | | | | | | | | | | | | + | | | In Commercial Lines, higher non-catastrophe property losses, partially offset by margin improvement in global specialty | | | | | | | | | \- | | | Higher insurance operating costs and other expenses | | | | | |

| Income before income taxes | | | 2,258 | | | 2,896 | | | 2,120 | | | (22 | | %) | 37 | | % | | | | | | | | | | | | | | | |

| Net income | | | 1,815 | | | 2,365 | | | 1,737 | | | (23 | | %) | 36 | | % | | | | | | | | | | | | | | | |

This decrease was partially offset by:

- An increase in P&C underwriting results of $267, before tax, driven by the effect of Commercial Lines earned premium

- In Group Benefits, lower losses from excess mortality claims of $423, before tax, and the effect of higher fully insured ongoing premiums was partially offset by a higher loss ratio on accidental death business and an increase in expense reserves, as well as an increase in insurance operating costs and other expenses;

- Legal and consulting costs in the 2021 period associated with the unsolicited proposals from Chubb Limited to acquire the Company; and

- A lower level of interest expense on corporate debt.

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: 2022,] [added: 2023,] 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: 2022,] [added: 2023,] 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: 2022,] [added: 2023,] of the Company and our report dated February [removed: 24, 2023,] [added: 23, 2024,] expressed an unqualified opinion on those financial [removed: statements.][added: statements and included an explanatory paragraph regarding the Company’s adoption of a new accounting standard.]

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

Part [removed: III] [added: II] - Item [removed: 10.][added: 9B.]

February 23, 2024

Other Information

February 24, 2023

Directors, Executive Officers and Corporate Governance of The Hartford

OTHER INFORMATION

On October 31, 2023, Adin M.

Tooker, Executive Vice President, Middle & Large Commercial, Global Specialty and Sales and Distribution, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the potential sale of up to 7,643.967 shares of the Company's common stock on February 29, 2024.

This 10b5-1 plan is effective through October 31, 2024.

On November 21, 2023, Michael R.

Fisher, Executive Vice President and Property and Casualty Chief Underwriting Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the potential sale of (i) up to 4,088 shares of the Company's common stock between March 1, 2024 and November 15, 2024 and (ii) up to 4,088 shares of the Company's common stock between July 1, 2024 and November 15, 2024, subject to certain conditions.

This 10b5-1 plan is effective through November 15, 2024.

|

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

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | | | | | | |

Part III - Item 10.

Directors, Executive Officers and Corporate Governance of The Hartford

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

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

Certain of the information called for by Item 10 will be set forth in the definitive proxy statement for the [removed: 2023] [added: 2024] 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: 23, 2023:][added: 22, 2024:]

| Jonathan R. Bennett | | | [removed: 58] [added: 59] | | | 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: 54] [added: 55] | | | 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) | | |

| Stephanie C. [removed: Bush] [added: Bush\[1\]] | | | [removed: 58] [added: 59] | | | Executive Vice President and Head of [removed: Small Commercial and] Personal Lines (January [removed: 2018-present)] [added: 2018-present); Executive Vice President and Head of Small Commercial (July 2014-present)] | | |

| Beth A. Costello | | | [removed: 55] [added: 56] | | | Executive Vice President and Chief Financial Officer (July 2014-present) | | |

| Michael R. Fisher | | | [removed: 57] [added: 58] | | | 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) | | |

| John J. Kinney | | | [removed: 51] [added: 52] | | | Executive Vice President, Head of Claims & Operations (August 2021-present); Chief Claims Officer (April 2013-August 2021) | | |

| Robert W. Paiano | | | [removed: 61] [added: 62] | | | Executive Vice President and Chief Risk Officer (June 2017-present); Senior Vice President & Treasurer (July 2010-May 2017) | | |

| David C. [removed: Robinson] [added: Robinson\[2\]] | | | [removed: 57] [added: 58] | | | Executive Vice President and General Counsel (June 2015-present) | | |

| Lori A. Rodden | | | [removed: 52] [added: 53] | | | Executive Vice President Chief Human Resources Officer (October 2019-present); and Senior Vice President and Lead Human Resources Business Partner for Property & Casualty, Group Benefits, Claims and Actuarial (April 2016-October 2019) | | |

| Deepa Soni | | | [removed: 53] [added: 54] | | | 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: 54] [added: 55] | | | Executive Vice President Chief Investment Officer (August 2020-present); President of Hartford Investment Management Company (August [removed: 2020-Present);] [added: 2020-present);] Managing Director and Head of Public Credit Research Hartford Investment Management Company (September 2008-August 2020) | | |

| Adin M. Tooker | | | [removed: 53] [added: 54] | | | Executive Vice President, Middle [removed: and] [added: &] Large Commercial, Global Specialty and Sales and Distribution (November 2022-present); Executive Vice President and Head of Middle [removed: and] [added: &] Large Commercial (March 2019-October 2022); Executive Vice President and Head of Middle Market (March 2017-February 2019) | | |

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

| Allison G. Niderno | | | 44 | | | Senior Vice President and Controller (March 2023-present); Vice President Finance, Head of External Reporting and Investment Finance (June 2018 - March 2023); Vice President Finance (April 2016 - June 2018) | | |

*\[1\]On November 29, 2023, the Company announced Ms. Bush's intent to retire as Executive Vice President and Head of Small Commercial and Personal Lines effective March 1, 2024.*

*\[2\]On November 29, 2023, the Company announced Mr. Robinson's intent to retire as Executive Vice President and General Counsel effective March 1, 2024.*

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

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

The following table provides information as of December 31, [removed: 2022] [added: 2023] about the securities authorized for issuance under the Company’s equity compensation 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: 19] [added: 20] - Stock Compensation Plans of Notes to Consolidated Financial Statements.

*\[1\]The amount shown in this column includes [removed: 6,596,674] [added: 6,071,595] 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: 3,517,067] [added: 3,258,731] outstanding restricted stock units, [removed: 710,927] [added: 582,651] outstanding performance shares at 100% of target (which excludes [removed: 448,510] [added: 777,144] shares that vested on December 31, [removed: 2022,] [added: 2023,] related to the [removed: 2020-2022] [added: 2021-2023] performance period)* *and [removed: 207,254] [added: 173,114] non-vested dividend equivalent shares* *as of December 31, [removed: 2022] [added: 2023] under the 2014 Stock Plan and the 2020 Stock Plan.

The maximum number of performance shares that could be awarded is [removed: 1,421,854] [added: 1,165,302] (200% of target) if the Company achieved the highest performance level.

*\[3\]Of these shares, [removed: 3,350,171] [added: 3,155,609] remain available for purchase under the ESPP as of December 31, [removed: 2022.][added: 2023.]

[removed: 8,181,554] [added: 6,884,152] 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: 2022.*][added: 2023.*]

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | | | | | | |

| Equity compensation plans approved by stockholders | | | 10,086,091 | | | $ | 55.92 | | 10,039,761 | | | | | |

| Total | | | 10,086,091 | | | $ | 55.92 | | 10,039,761 | | | | | |

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

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

(1)Consolidated Financial Statements. See Index to Consolidated Financial Statements and Schedules [removed: elsewhere herein.][added: below.]

(2)Consolidated Financial Statement Schedules. See Index to Consolidated Financial Statement and Schedules [removed: elsewhere herein.][added: below.]

| [Report of Independent Registered Public Accounting [removed: Firm](#i06b18b14201940a9a0e64acb9b8906f8_286)] [added: Firm](#i9b54cc746e184599b631808d88b32e18_286)] \[1\] | | | [removed: [119](#i06b18b14201940a9a0e64acb9b8906f8_286)] [added: [123](#i9b54cc746e184599b631808d88b32e18_286)] | | |

| [Consolidated Statements of Operations — For the Years Ended December [removed: 31, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] [added: 31,](#i9b54cc746e184599b631808d88b32e18_289) [2023,](#i9b54cc746e184599b631808d88b32e18_289) [2022](#i9b54cc746e184599b631808d88b32e18_289) [and](#i9b54cc746e184599b631808d88b32e18_289) [2021](#i9b54cc746e184599b631808d88b32e18_289)] | | | [removed: [121](#i06b18b14201940a9a0e64acb9b8906f8_289)] [added: [125](#i9b54cc746e184599b631808d88b32e18_289)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#i06b18b14201940a9a0e64acb9b8906f8_292) [(](#i06b18b14201940a9a0e64acb9b8906f8_292)[Loss)](#i06b18b14201940a9a0e64acb9b8906f8_292) [—] [added: Income (Loss) —] For the Years Ended December [removed: 31,](#i06b18b14201940a9a0e64acb9b8906f8_292) [202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] [added: 31, 2023, 2022 and 2021](#i9b54cc746e184599b631808d88b32e18_292)] | | | [removed: [122](#i06b18b14201940a9a0e64acb9b8906f8_292)] [added: [126](#i9b54cc746e184599b631808d88b32e18_292)] | | |

| [Consolidated Balance Sheets — As of December 31, [removed: 202](#i06b18b14201940a9a0e64acb9b8906f8_295)[2](#i06b18b14201940a9a0e64acb9b8906f8_295) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_295)21] [added: 2023 and 2022](#i9b54cc746e184599b631808d88b32e18_295)] | | | [removed: [123](#i06b18b14201940a9a0e64acb9b8906f8_295)] [added: [127](#i9b54cc746e184599b631808d88b32e18_295)] | | |

| [Consolidated Statements of Changes in Stockholders’ Equity — For the Years Ended December [removed: 31,](#i06b18b14201940a9a0e64acb9b8906f8_298) [202](#i06b18b14201940a9a0e64acb9b8906f8_289)[2](#i06b18b14201940a9a0e64acb9b8906f8_289)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_289)[1](#i06b18b14201940a9a0e64acb9b8906f8_289) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_289)20] [added: 31, 2023, 2022 and 2021](#i9b54cc746e184599b631808d88b32e18_298)] | | | [removed: [124](#i06b18b14201940a9a0e64acb9b8906f8_298)] [added: [128](#i9b54cc746e184599b631808d88b32e18_298)] | | |

| [Consolidated Statements of Cash Flows — For the Years Ended December 31, [removed: 202](#i06b18b14201940a9a0e64acb9b8906f8_301)[2](#i06b18b14201940a9a0e64acb9b8906f8_301)[, 202](#i06b18b14201940a9a0e64acb9b8906f8_301)[1](#i06b18b14201940a9a0e64acb9b8906f8_301) [and 20](#i06b18b14201940a9a0e64acb9b8906f8_301)20] [added: 2023, 2022 and 2021](#i9b54cc746e184599b631808d88b32e18_301)] | | | [removed: [125](#i06b18b14201940a9a0e64acb9b8906f8_301)] [added: [129](#i9b54cc746e184599b631808d88b32e18_301)] | | |

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

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_313) [2](#i06b18b14201940a9a0e64acb9b8906f8_313) [-] [added: Note 2 -] Earnings Per Common [removed: Share](#i06b18b14201940a9a0e64acb9b8906f8_313)] [added: Share] | | | [removed: [133](#i06b18b14201940a9a0e64acb9b8906f8_313)] | | | [added: | | |]

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_316) [3](#i06b18b14201940a9a0e64acb9b8906f8_316) [-] [added: [Note 3 -] Segment [removed: Information](#i06b18b14201940a9a0e64acb9b8906f8_316)] [added: Information](#i9b54cc746e184599b631808d88b32e18_316)] | | | [removed: [134](#i06b18b14201940a9a0e64acb9b8906f8_316)] [added: [139](#i9b54cc746e184599b631808d88b32e18_316)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_319) [4](#i06b18b14201940a9a0e64acb9b8906f8_319) [-] [added: [Note 4 -] Fair Value [removed: Measurements](#i06b18b14201940a9a0e64acb9b8906f8_319)] [added: Measurements](#i9b54cc746e184599b631808d88b32e18_319)] | | | [removed: [136](#i06b18b14201940a9a0e64acb9b8906f8_319)] [added: [142](#i9b54cc746e184599b631808d88b32e18_319)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_325) [5](#i06b18b14201940a9a0e64acb9b8906f8_325) [- Investments](#i06b18b14201940a9a0e64acb9b8906f8_325)] [added: [Note 5 - Investments](#i9b54cc746e184599b631808d88b32e18_325)] | | | [removed: [144](#i06b18b14201940a9a0e64acb9b8906f8_325)] [added: [150](#i9b54cc746e184599b631808d88b32e18_325)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_328) [6](#i06b18b14201940a9a0e64acb9b8906f8_328) [- Derivatives](#i06b18b14201940a9a0e64acb9b8906f8_328)] [added: [Note 6 - Derivatives](#i9b54cc746e184599b631808d88b32e18_328)] | | | [removed: [152](#i06b18b14201940a9a0e64acb9b8906f8_328)] [added: [157](#i9b54cc746e184599b631808d88b32e18_328)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_331) [7](#i06b18b14201940a9a0e64acb9b8906f8_331) [-] [added: [Note 7 -] Premiums Receivable and Agents' [removed: Balances](#i06b18b14201940a9a0e64acb9b8906f8_331)] [added: Balances](#i9b54cc746e184599b631808d88b32e18_331)] | | | [removed: [157](#i06b18b14201940a9a0e64acb9b8906f8_331)] [added: [162](#i9b54cc746e184599b631808d88b32e18_331)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_334) [8](#i06b18b14201940a9a0e64acb9b8906f8_334) [- Reinsurance](#i06b18b14201940a9a0e64acb9b8906f8_334)] [added: [Note 8 - Reinsurance](#i9b54cc746e184599b631808d88b32e18_334)] | | | [removed: [158](#i06b18b14201940a9a0e64acb9b8906f8_334)] [added: [163](#i9b54cc746e184599b631808d88b32e18_334)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_337) [9](#i06b18b14201940a9a0e64acb9b8906f8_337) [-] [added: [Note 9 -] Deferred Policy Acquisition [removed: Costs](#i06b18b14201940a9a0e64acb9b8906f8_337)] [added: Costs](#i9b54cc746e184599b631808d88b32e18_337)] | | | [removed: [161](#i06b18b14201940a9a0e64acb9b8906f8_337)] [added: [166](#i9b54cc746e184599b631808d88b32e18_337)] | | |

| [Note [removed: 1](#i06b18b14201940a9a0e64acb9b8906f8_340)[0](#i06b18b14201940a9a0e64acb9b8906f8_340) [-] [added: 10 -] Goodwill & Other Intangible [removed: Assets](#i06b18b14201940a9a0e64acb9b8906f8_340)] [added: Assets](#i9b54cc746e184599b631808d88b32e18_340)] | | | [removed: [161](#i06b18b14201940a9a0e64acb9b8906f8_340)] [added: [166](#i9b54cc746e184599b631808d88b32e18_340)] | | |

| [Note [removed: 1](#i06b18b14201940a9a0e64acb9b8906f8_343)[1](#i06b18b14201940a9a0e64acb9b8906f8_343) [-] [added: 11 -] Reserve for Unpaid Losses and Loss Adjustment [removed: Expenses](#i06b18b14201940a9a0e64acb9b8906f8_343)] [added: Expenses](#i9b54cc746e184599b631808d88b32e18_343)] | | | [removed: [162](#i06b18b14201940a9a0e64acb9b8906f8_346)] [added: [167](#i9b54cc746e184599b631808d88b32e18_346)] | | |

| [Note [removed: 1](#i06b18b14201940a9a0e64acb9b8906f8_352)[2](#i06b18b14201940a9a0e64acb9b8906f8_352) [-] [added: 12 -] Reserve for Future Policy [removed: Benefits](#i06b18b14201940a9a0e64acb9b8906f8_352)] [added: Benefits](#i9b54cc746e184599b631808d88b32e18_352)] | | | [removed: [186](#i06b18b14201940a9a0e64acb9b8906f8_352)] [added: [192](#i9b54cc746e184599b631808d88b32e18_352)] | | |

| [removed: [Note 1](#i06b18b14201940a9a0e64acb9b8906f8_358)[4](#i06b18b14201940a9a0e64acb9b8906f8_358) [- Commitments] [added: Commitments] and [removed: Contingencies](#i06b18b14201940a9a0e64acb9b8906f8_358)] [added: Contingencies (Note 15)] | | | [removed: [189](#i06b18b14201940a9a0e64acb9b8906f8_358)] | | | [added: | | |]

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_385) [](#i06b18b14201940a9a0e64acb9b8906f8_385)[17](#i06b18b14201940a9a0e64acb9b8906f8_385) [-] [added: [Note 18 -] Changes in and Reclassifications From Accumulated Other Comprehensive [removed: Inc](#i06b18b14201940a9a0e64acb9b8906f8_385)[om](#i06b18b14201940a9a0e64acb9b8906f8_385)[e (Loss)](#i06b18b14201940a9a0e64acb9b8906f8_385)] [added: Income (Loss)](#i9b54cc746e184599b631808d88b32e18_388)] | | | [removed: [196](#i06b18b14201940a9a0e64acb9b8906f8_385)] [added: [202](#i9b54cc746e184599b631808d88b32e18_388)] | | |

| [Note [removed: 1](#i06b18b14201940a9a0e64acb9b8906f8_388)[8](#i06b18b14201940a9a0e64acb9b8906f8_388) [-] [added: 19 -] Employee Benefit [removed: Plans](#i06b18b14201940a9a0e64acb9b8906f8_388)] [added: Plans](#i9b54cc746e184599b631808d88b32e18_391)] | | | [removed: [197](#i06b18b14201940a9a0e64acb9b8906f8_388)] [added: [204](#i9b54cc746e184599b631808d88b32e18_391)] | | |

| [removed: [Note](#i06b18b14201940a9a0e64acb9b8906f8_391) [19](#i06b18b14201940a9a0e64acb9b8906f8_391) [-] [added: [Note 20 -] Stock Compensation [removed: Plans](#i06b18b14201940a9a0e64acb9b8906f8_391)] [added: Plans](#i9b54cc746e184599b631808d88b32e18_394)] | | | [removed: [204](#i06b18b14201940a9a0e64acb9b8906f8_391)] [added: [211](#i9b54cc746e184599b631808d88b32e18_394)] | | |

| [removed: [Note 2](#i06b18b14201940a9a0e64acb9b8906f8_400)[2](#i06b18b14201940a9a0e64acb9b8906f8_400) [-] Restructuring and [removed: Other Costs](#i06b18b14201940a9a0e64acb9b8906f8_400)] [added: other costs] | | | [removed: [208](#i06b18b14201940a9a0e64acb9b8906f8_400)] [added: 6] | | | [added: 13 | | | 1 | | |]

| [Schedule I — Summary of Investments — Other Than Investments in [removed: Affiliates](#i06b18b14201940a9a0e64acb9b8906f8_406)] [added: Affiliates](#i9b54cc746e184599b631808d88b32e18_409)] | | | [removed: [210](#i06b18b14201940a9a0e64acb9b8906f8_406)] [added: [217](#i9b54cc746e184599b631808d88b32e18_409)] | | |

| [Schedule II — Condensed Financial Information of The Hartford Financial Services Group, [removed: Inc](#i06b18b14201940a9a0e64acb9b8906f8_409).] [added: Inc](#i9b54cc746e184599b631808d88b32e18_412).] | | | [removed: [211](#i06b18b14201940a9a0e64acb9b8906f8_409)] [added: [218](#i9b54cc746e184599b631808d88b32e18_412)] | | |

| [Schedule III — Supplementary Insurance [removed: Information](#i06b18b14201940a9a0e64acb9b8906f8_412)] [added: Information](#i9b54cc746e184599b631808d88b32e18_415)] | | | [removed: [214](#i06b18b14201940a9a0e64acb9b8906f8_412)] [added: [221](#i9b54cc746e184599b631808d88b32e18_415)] | | |

| [Schedule V — Valuation and Qualifying [removed: Accounts](#i06b18b14201940a9a0e64acb9b8906f8_418)] [added: Accounts](#i9b54cc746e184599b631808d88b32e18_421)] | | | [removed: [217](#i06b18b14201940a9a0e64acb9b8906f8_418)] [added: [224](#i9b54cc746e184599b631808d88b32e18_421)] | | |

| [Table of [removed: Contents](#i06b18b14201940a9a0e64acb9b8906f8_7)] [added: Contents](#i9b54cc746e184599b631808d88b32e18_7)] | | | [Index to Consolidated Financial Statements and [removed: Schedules](#i06b18b14201940a9a0e64acb9b8906f8_283)] [added: Schedules](#i9b54cc746e184599b631808d88b32e18_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: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] the related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2022,] [added: 2023,] 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: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2022,] [added: 2023,] 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: 2022,] [added: 2023,] 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: 24, 2023,] [added: 23, 2024,] expressed an unqualified opinion on the Company's internal control over financial reporting.

Given the subjectivity of estimating the ultimate cost to settle the liabilities for reported and unreported claims due to uncertainties caused by various factors including frequency and severity of claims as well as changes in the legislative and regulatory environment, performing audit procedures to evaluate whether unpaid losses and loss adjustment expenses were appropriately recorded as of December 31, [removed: 2022,] [added: 2023,] required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

- On a sample basis, we tested the accuracy and completeness of the investments owned as of December 31, [removed: 2022,] [added: 2023,] and the relevant security attributes used in the determination of their fair values.

| | | | [added: | | |] For the years ended December 31, | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| *(in millions, except for per share data)* | | | [removed: 2022] [added: 2023] | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | |

| Earned premiums | | | $ | [removed: 19,390] [added: 21,026] | | $ | [removed: 17,999] [added: 19,390] | | $ | [removed: 17,288] [added: 17,999] | |

| Fee income | | | [removed: 1,349] [added: 1,300] | | | [removed: 1,488] [added: 1,349] | | | [removed: 1,277] [added: 1,488] | | |

| Net investment income | | | [removed: 2,177] [added: 2,305] | | | [removed: 2,313] [added: 2,177] | | | [removed: 1,846] [added: 2,313] | | |

| [Note 2 - Earnings Per Common Share](#i9b54cc746e184599b631808d88b32e18_313) | | | [139](#i9b54cc746e184599b631808d88b32e18_313) | | |

| [Note 13 - Other Policyholder Funds and Benefits Payable](#i9b54cc746e184599b631808d88b32e18_355) | | | [193](#i9b54cc746e184599b631808d88b32e18_355) | | |

| [Note 14 - Debt](#i9b54cc746e184599b631808d88b32e18_358) | | | [194](#i9b54cc746e184599b631808d88b32e18_358) | | |

| [Note 16 - Equity](#i9b54cc746e184599b631808d88b32e18_379) | | | [199](#i9b54cc746e184599b631808d88b32e18_379) | | |

| [Note 17 - Income Taxes](#i9b54cc746e184599b631808d88b32e18_385) | | | [201](#i9b54cc746e184599b631808d88b32e18_385) | | |

| [Note 21 - Leases](#i9b54cc746e184599b631808d88b32e18_397) | | | [214](#i9b54cc746e184599b631808d88b32e18_397) | | |

| [Note 22 - Business Dispositions](#i9b54cc746e184599b631808d88b32e18_400) | | | [215](#i9b54cc746e184599b631808d88b32e18_400) | | |

| [Note 24 - Quarterly Results (Unaudited)](#i9b54cc746e184599b631808d88b32e18_406) | | | [216](#i9b54cc746e184599b631808d88b32e18_406) | | |

| [Schedule IV — Reinsurance](#i9b54cc746e184599b631808d88b32e18_418) | | | [223](#i9b54cc746e184599b631808d88b32e18_418) | | |

As discussed in Note 1 to the financial statements, effective January 1, 2023, the Company adopted FASB ASU 2018-12, *Targeted Improvements to the Accounting for Long-Duration Contracts Issued by Insurance Companies*, using the modified retrospective approach.

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| Benefits, losses and loss adjustment expenses | | | 14,238 | | | 13,138 | | | 12,720 | | |

| Income before income taxes | | | 3,088 | | | 2,262 | | | 2,905 | | |

| Income tax expense | | | 584 | | | 443 | | | 534 | | |

| Net income available to common stockholders | | | $ | 2,483 | | $ | 1,798 | | $ | 2,350 | |

| Basic | | | $ | 8.09 | | $ | 5.54 | | $ | 6.73 | |

| Diluted | | | $ | 7.97 | | $ | 5.46 | | $ | 6.64 | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| Change in liability for future policy benefits adjustments | | | (10) | | | 94 | | | 27 | | |

| OCI, net of tax | | | 992 | | | (3,969) | | | (977) | | |

| Comprehensive income (loss) | | | $ | 3,496 | | $ | (2,150) | | $ | 1,394 | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| Accrued investment income | | | 404 | | | 372 | | |

| Deferred income taxes, net | | | 1,173 | | | 1,437 | | |

| Other assets | | | 1,754 | | | 1,768 | | |

| Reserve for future policy benefits | | | 484 | | | 502 | | |

| Retained earnings | | | 19,007 | | | 17,058 | | |

| Accumulated other comprehensive loss, net of tax | | | (2,849) | | | (3,841) | | |

| Total stockholders' equity | | | 15,327 | | | 13,676 | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| Net income | | | 2,504 | | | 1,819 | | | 2,371 | | |

| Adjusted balance beginning of period | | | (3,841) | | | 128 | | | 1,105 | | |

| Total Stockholders’ Equity | | | $ | 15,327 | | $ | 13,676 | | $ | 17,805 | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| Net income | | | $ | 2,504 | | $ | 1,819 | | $ | 2,371 | |

| Increase in reinsurance recoverables | | | (155) | | | (470) | | | (583) | | |

| Increase in insurance liabilities | | | 1,819 | | | 2,192 | | | 2,411 | | |

| Treasury stock acquired | | | (1,400) | | | (1,550) | | | (1,702) | | |

| [Table of Contents](#i9b54cc746e184599b631808d88b32e18_7) | | | [Index to Consolidated Financial Statements and Schedules](#i9b54cc746e184599b631808d88b32e18_283) | | | | | |

| | | | | | |

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

| [Note 1](#i06b18b14201940a9a0e64acb9b8906f8_355)[3](#i06b18b14201940a9a0e64acb9b8906f8_355) [- Debt](#i06b18b14201940a9a0e64acb9b8906f8_355) | | | [186](#i06b18b14201940a9a0e64acb9b8906f8_355) | | |

| [Note 1](#i06b18b14201940a9a0e64acb9b8906f8_376)[5](#i06b18b14201940a9a0e64acb9b8906f8_376) [- Equity](#i06b18b14201940a9a0e64acb9b8906f8_376) | | | [192](#i06b18b14201940a9a0e64acb9b8906f8_376) | | |

| [Note 1](#i06b18b14201940a9a0e64acb9b8906f8_382)[6](#i06b18b14201940a9a0e64acb9b8906f8_382) [- Income Taxes](#i06b18b14201940a9a0e64acb9b8906f8_382) | | | [194](#i06b18b14201940a9a0e64acb9b8906f8_382) | | |

| [Note 2](#i06b18b14201940a9a0e64acb9b8906f8_394)[0](#i06b18b14201940a9a0e64acb9b8906f8_394) [- Leases](#i06b18b14201940a9a0e64acb9b8906f8_394) | | | [207](#i06b18b14201940a9a0e64acb9b8906f8_394) | | |

| [Note 2](#i06b18b14201940a9a0e64acb9b8906f8_397)[1](#i06b18b14201940a9a0e64acb9b8906f8_397) [- Business Dispositions](#i06b18b14201940a9a0e64acb9b8906f8_397) | | | [208](#i06b18b14201940a9a0e64acb9b8906f8_397) | | |

| [Schedule IV — Reinsurance](#i06b18b14201940a9a0e64acb9b8906f8_415) | | | [216](#i06b18b14201940a9a0e64acb9b8906f8_415) | | |

February 24, 2023

| Net income | | | $ | 1,815 | | $ | 2,365 | | $ | 1,737 | |

| OCI, net of tax | | | (4,048) | | | (998) | | | 1,118 | | |

| Other assets | | | 2,136 | | | 2,577 | | |

| Net income | | | 1,815 | | | 2,365 | | | 1,737 | | |

| Total Stockholders’ Equity | | | $ | 13,631 | | $ | 17,843 | | $ | 18,556 | |

| Net income | | | $ | 1,815 | | $ | 2,365 | | $ | 1,737 | |

| Increase in reinsurance recoverables | | | (473) | | | (582) | | | (540) | | |

| Increase in insurance liabilities | | | 2,199 | | | 2,416 | | | 1,426 | | |

| Net decrease in securities loaned or sold under agreements to repurchase | | | — | | | — | | | (587) | | |

Financial Instruments - Credit Losses

On January 1, 2020, the Company adopted the Financial Accounting Standards Board's ("FASB") updated guidance for recognition and measurement of credit losses on financial instruments.

The new guidance replaces the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value.

Under the new model, for financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables, an allowance for credit losses ("ACL") is recognized, which is an estimate of credit losses expected over the life of financial instruments.

Under the prior accounting model an ACL was recognized using an incurred loss approach.

The new guidance also requires that we estimate a liability for credit losses ("LCL") on off balance sheet credit exposures, such as financial guarantees and mortgage loan commitments that the Company cannot unconditionally cancel.

Credit losses on fixed maturities, AFS carried at fair value continue to be measured based on the present value of expected future cash flows compared to amortized cost; however, the losses are now recognized through an ACL and no longer as an adjustment to the amortized cost.

Recoveries of credit losses on fixed maturities, AFS are now recognized as reversals of the ACL and no longer accreted as investment income through an adjustment to the investment yield.

The ACL on fixed maturities, AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of the ACL and increase net income.

The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase.

The Company adopted the guidance effective January 1, 2020, through a cumulative-effect adjustment that decreased retained earnings by $18, representing a net increase to the ACL and LCL, after tax.

No ACL was recognized at adoption for fixed maturities, AFS; rather, these investments are evaluated for an ACL prospectively.

The Company does not have any purchased financial assets with a more than insignificant amount of credit deterioration since original issuance.

| | | | Balance as of January 1, 2020 | | | | | | | | |

| | | | Opening Balance | | | Cumulative Effect of Accounting Change | | | Adjusted Opening Balance | | |

| Premiums receivable and agents' balances, net of ACL | | | 4,384 | | | 23 | | | 4,407 | | |

| ACL and allowance for disputed amounts on reinsurance recoverables | | | (114) | | | (2) | | | (116) | | |

| Retained Earnings | | | $ | 12,685 | | $ | (18) | | $ | 12,667 | |

Summary of Adoption Impacts

| Net increase to ACL and LCL | | | $ | (23) | |

| Net tax effects | | | 5 | | |

| Net decrease to retained earnings | | | $ | (18) | |