Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Commercial & Residential Real Estate

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

Exposure to CMBS and RMBS as of December 31, 2023

			AAA						AA						A						BBB						BB and Below						Total
			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value
CMBS
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
RMBS
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
Sub-Prime			1			1			12			12			5			5			10			10			12			12			40			40
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

Exposure to CMBS and RMBS as of December 31, 2022

			AAA						AA						A						BBB						BB and Below						Total
			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value			Amortized Cost			Fair Value
CMBS
Agency [1]			$	1,264		$	1,154		$	4		$	3		$	—		$	—		$	—		$	—		$	—		$	—		$	1,268		$	1,157
Bonds			908			840			568			504			424			370			138			116			225			207			2,263			2,037
Interest Only			101			96			74			70			—			—			8			7			1			1			184			174
Total CMBS			2,273			2,090			646			577			424			370			146			123			226			208			3,715			3,368
RMBS
Agency			1,845			1,652			20			19			—			—			—			—			—			—			1,865			1,671
Non-Agency			1,166			1,036			501			428			353			288			236			198			21			15			2,277			1,965
Sub-Prime			3			3			21			21			10			10			9			9			29			29			72			72
Total RMBS			3,014			2,691			542			468			363			298			245			207			50			44			4,214			3,708
Total CMBS & RMBS			$	5,287		$	4,781		$	1,188		$	1,045		$	787		$	668		$	391		$	330		$	276		$	252		$	7,929		$	7,076

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

As of December 31, 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.

The Company also has exposure to commercial mortgage loans. These loans are collateralized by real estate properties that are diversified both geographically throughout the United States and by property type. These commercial loans are originated by the Company as high quality whole loans, and the Company may sell participation interests in one or more loans to third parties. 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 as a participant are governed by a participation agreement.

As of December 31, 2023, mortgage loans had an amortized cost of $6.1 billion and carrying value of $6.1 billion, with an ACL of $51. As of December 31, 2022, mortgage loans had an amortized cost of $6.0 billion and carrying value of $6.0 billion, with an ACL of $36. The increase in the allowance is primarily attributable to revised economic scenarios, lower property valuations, and overall weaker real estate fundamentals.

The Company funded $589 million of commercial mortgage loans with a weighted average loan-to-value (“LTV”) ratio of 57%

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

and a weighted average yield of 7.2% during the twelve months ended December 31, 2023. The Company continues to originate commercial mortgage loans in high growth markets across the country focusing primarily on institutional-quality industrial and multi-family properties with strong LTV ratios. There were no mortgage loans held for sale as of December 31, 2023, or December 31, 2022.

Municipal Bonds

The following table presents the Company’s exposure to municipal bonds by type and weighted average credit quality included in the preceding Securities by Type table.

Available For Sale Investments in Municipal Bonds

			December 31, 2023												December 31, 2022
			Amortized Cost			Fair Value			Weighted Average Credit Quality						Amortized Cost			Fair Value			Weighted Average Credit Quality
General Obligation			$	807		$	814		AA						$	863		$	838		AA
Pre-refunded [1]			155			158			AA+						235			242			AAA
Revenue
Transportation			1,325			1,298			A+						1,435			1,342			A+
Health Care			974			902			A+						1,132			1,012			A+
Leasing [2]			761			732			AA-						714			659			AA-
Education			527			520			AA						601			572			AA
Water & Sewer			362			347			AA+						411			384			AA
Power			275			271			A						280			268			A
Sales Tax			231			237			AA						304			295			AA
Housing			179			172			AA						73			62			AA-
Other			611			588			A+						670			622			A+
Total Revenue			5,245			5,067			AA-						5,620			5,216			AA-
Total Municipal			$	6,207		$	6,039		AA-						$	6,718		$	6,296		AA-

*[1]*Pre-refunded bonds are bonds for which an irrevocable trust containing sufficient U.S. treasury, agency, or other securities has been established to fund the remaining payments of principal and interest.

*[2]*Leasing revenue bonds are generally the obligations of a financing authority established by the municipality that leases facilities back to a municipality. The notes are typically secured by lease payments made by the municipality that is leasing the facilities financed by the issue. Lease payments may be subject to annual appropriation by the municipality or the municipality may be obligated to appropriate general tax revenues to make lease payments.

As of December 31, 2023, the largest issuer concentrations were the New York City Transitional Finance Authority, the State of Illinois, and the Metropolitan Transportation Authority, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds. As of December 31, 2022, the largest issuer concentrations were the Grand Parkway Transportation Corporation of Texas, the New York City Transitional Finance Authority, and the New York City Municipal Water Finance 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 11% of the fair value of the Company's investment portfolio.

Limited Partnerships and Other Alternative Investments

The following table presents the Company’s investments in limited partnerships and other alternative investments which include real estate joint ventures, real estate funds, private equity funds, other funds, and other alternative investments. Private equity funds primarily consist of investments in funds whose assets typically consist of a diversified pool of investments in small to mid-sized non-public businesses with high growth potential and strong owner sponsorship, as well as limited exposure to public markets.

Income or losses on investments in limited partnerships and other alternative investments are recognized on a lag as results from private equity investments and other funds are generally reported on a three-month delay.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Limited Partnerships and Other Alternative Investments - Net Investment Income

									Year Ended December 31,
															2023									2022									2021
																					Amount			Yield [1]						Amount			Yield [1]						Amount			Yield [1]
Real estate joint ventures and funds																					$	(10)		(0.5)		%				$	316		21.9		%				$	149		18.4		%
Private equity funds																					161			9.9		%				186			14.2		%				456			51.3		%
Other funds																					29			6.6		%				32			10.5		%				33			17.7		%
Other alternative investments [2]																					32			6.6		%				(19)			(3.8)		%				94			22.6		%
Total																					$	212		4.8		%				$	515		14.4		%				$	732		31.8		%

*[1]*Yields calculated using annualized net investment income divided by the monthly average invested assets.

*[2]*Consists of an insurer-owned life insurance policy which is primarily invested in private equity funds and fixed income.

Investments in Limited Partnerships and Other Alternative Investments

			December 31, 2023									December 31, 2022
			Amount			Percent						Amount			Percent
Real estate joint ventures and funds			$	1,931		40.4		%				$	1,713		41.0		%
Private equity funds			1,838			38.4		%				1,565			37.5		%
Other funds			498			10.4		%				413			9.9		%
Other alternative investments [1]			518			10.8		%				486			11.6		%
Total			$	4,785		100.0		%				$	4,177		100.0		%

*[1]*Consists of an insurer-owned life insurance policy which is primarily invested in private equity funds and fixed income.

Fixed Maturities, AFS — Unrealized Loss Aging

The total gross unrealized losses were $2.3 billion as of December 31, 2023, and have decreased $1.1 billion from December 31, 2022, primarily due to tighter credit spreads. As of December 31, 2023, $1.9 billion of the gross unrealized losses were associated with fixed maturities, AFS depressed less than 20% of amortized cost. The remaining $417 of gross unrealized losses were associated with fixed maturities, AFS depressed greater than 20%. The fixed maturities, AFS depressed more than 20% primarily related to corporate fixed maturities, CMBS, RMBS, and municipal bonds that are mainly depressed because current interest rates are higher and/or market spreads are wider than at the respective purchase dates.

As part of the Company’s ongoing investment monitoring process, the Company has reviewed its fixed maturities, AFS in an unrealized loss position and concluded that these fixed maturities are temporarily depressed and are expected to recover in value as the investments approach maturity or as market spreads tighten. For these fixed maturities in an unrealized loss position where an ACL has not been recorded, the Company’s best estimate of expected future cash flows are sufficient to recover the amortized cost basis of the investment. Furthermore, the Company neither has an intention to sell nor does it expect to be required to sell these investments. For further information regarding the Company’s ACL analysis, see the Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments section below.

Unrealized Loss Aging for Fixed Maturities, AFS

			December 31, 2023																		December 31, 2022
Consecutive Months			Items			Amortized Cost			ACL			Unrealized Loss			Fair Value						Items			Amortized Cost			ACL			Unrealized Loss			Fair Value
Three months or less			51			$	440		$	—		$	(4)		$	436					200			$	786		$	—		$	(15)		$	771
Greater than three to six months			35			143			—			(2)			141						809			6,175			—			(234)			5,941
Greater than six to nine months			137			1,117			—			(13)			1,104						1,024			7,598			—			(561)			7,037
Greater than nine to eleven months			97			738			—			(22)			716						1,859			12,994			(6)			(1,510)			11,478
Twelve months or more			3,530			27,448			(14)			(2,264)			25,170						1,044			8,218			(6)			(1,122)			7,090
Total			3,850			$	29,886		$	(14)		$	(2,305)		$	27,567					4,936			$	35,771		$	(12)		$	(3,442)		$	32,317

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Unrealized Loss Aging for Fixed Maturities, AFS Continuously Depressed Over 20%

			December 31, 2023																		December 31, 2022
Consecutive Months			Items			Amortized Cost			ACL			Unrealized Loss			Fair Value						Items			Amortized Cost			ACL			Unrealized Loss			Fair Value
Three months or less			14			$	56		$	(1)		$	(13)		$	42					98			$	543		$	—		$	(116)		$	427
Greater than three to six months			10			19			(2)			(4)			13						215			2,021			—			(490)			1,531
Greater than six to nine months			31			148			—			(33)			115						89			791			—			(253)			538
Greater than nine to eleven months			22			163			—			(40)			123						7			34			(2)			(14)			18
Twelve months or more			143			1,216			—			(327)			889						17			5			(1)			(2)			2
Total			220			$	1,602		$	(3)		$	(417)		$	1,182					426			$	3,394		$	(3)		$	(875)		$	2,516

Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments

For the year ended December 31, 2023

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. Unrealized losses on securities with an ACL recognized in other comprehensive income were $4. For further information, refer to Note 5 - Investments of Notes to Consolidated Financial Statements.

There were no intent-to-sell impairments.

The Company incorporates its best estimate of future performance using internal assumptions and judgments that are informed by economic and industry specific trends, as well as our expectations with respect to security specific developments.

Future intent-to-sell impairments or credit losses may develop as the result of changes in our intent to sell specific securities that are in an unrealized loss position or if modeling assumptions, such as macroeconomic factors or security specific developments, change unfavorably from our current modeling assumptions, resulting in lower cash flow expectations.

For the year ended December 31, 2022

The Company recorded net credit losses of $18, primarily attributable to increases in the allowance for credit losses of $10 on CMBS, $3 on issuers with exposure to Russia, $3 related to a private corporate utilities issuer, and $2 related to a public corporate cable satellite issuer. Unrealized losses on securities with an ACL recognized in other comprehensive income were $6

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

ACL on Mortgage Loans

For the year ended December 31, 2023

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. For further information, refer to Note 5 - Investments of Notes to Consolidated Financial Statements.

The Company recorded an increase in the ACL on mortgage loans of $15. The increase is primarily attributable to revised economic scenarios, lower property valuations, and overall weaker real estate fundamentals. The Company did not record an ACL on any individual mortgage loans.

For the year ended December 31, 2022

The Company recorded an increase in the ACL on mortgage loans of $7. The increase was primarily attributable to the deteriorating economic conditions and the potential impact on real estate property valuations, and to a lesser extent, net additions of new loans. The Company did not record an ACL on any individual mortgage loans.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

CAPITAL RESOURCES AND LIQUIDITY

The following section discusses the overall financial strength of The Hartford and its insurance operations including their ability to generate cash flows from each of their business segments, borrow funds at competitive rates and raise new capital to meet operating and growth needs.

|SUMMARY OF CAPITAL RESOURCES AND LIQUIDITY

Capital available to the holding company as of December 31, 2023:

• $1.1 billion in fixed maturities, short-term investments, investment sales receivable and cash at the HFSG Holding Company.

• A senior unsecured revolving credit facility that provides for borrowing capacity up to $750 of unsecured credit through October 27, 2026. As of December 31, 2023, there were no borrowings outstanding.

*•*An intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes. As of December 31, 2023, $1.9 billion was available, $100 was outstanding between certain affiliates, and there were no amounts outstanding at the HFSG Holding Company.

2024 expected dividends and other sources of capital:

The future payment of dividends from our subsidiaries is dependent on several factors including business results, capital position and liquidity of our subsidiaries.

• P&C -** The Company's property and casualty insurance subsidiaries have regulatory dividend capacity of $1.8 billion for 2024. The HFSG Holding Company expects to receive approximately $1.5 billion of net dividends in 2024 after considering state deposit and regulatory capital requirements to support growth in certain entities, dividends that are expected to be subsequently contributed to P&C subsidiaries and dividends related to interest on intercompany notes.

• Group Benefits -** Hartford Life and Accident Insurance Company ("HLA") has regulatory dividend capacity of $609 in 2024 with approximately $600 of dividends expected in 2024.

• Hartford Funds** - HFSG Holding Company expects to receive approximately $130 in dividends from Hartford Funds in 2024.

Expected liquidity requirements for the next twelve months as of December 31, 2023:

• $194 of interest on debt, net of settlements on a related interest rate swap. See Note 14 - Debt of Notes to Consolidated Financial Statements;

• $21 dividends on preferred stock, subject to the discretion of the Board of Directors; and

• $570 of common stockholders' dividends, subject to the discretion of the Board of Directors and before share repurchases.

Expected liquidity requirements for beyond the next twelve months as of December 31, 2023:

• Interest on debt and debt repayments, see Note 14 - Debt of Notes to Consolidated Financial Statements.

• Preferred stock and common stock dividends, subject to the discretion of the Board of Directors.

Equity repurchase program:

In 2023, the Company repurchased 19.2 million common shares for $1.4 billion under the $3.0 billion share repurchase program authorized by the Board of Directors, effective through December 31, 2024. As of December 31, 2023, the Company has $1.35 billion remaining for equity repurchases under the share repurchase program. During the period January 1, 2024 through February 22, 2024, the Company repurchased approximately 2.3 million common shares for $200.

The timing of any repurchases is dependent on several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations.

|LIQUIDITY REQUIREMENTS AND SOURCES OF CAPITAL

The Hartford Financial Services Group, Inc. ("HFSG Holding Company")

The liquidity requirements of the HFSG Holding Company will primarily be met by HFSG Holding Company’s fixed maturities; short-term investments and cash; and dividends from its subsidiaries, principally its insurance operations. The Company maintains sufficient liquidity and has a variety of contingent

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

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

The HFSG Holding Company expects to continue to receive dividends from its operating subsidiaries in the future and manages capital in its operating subsidiaries to be sufficient under significant economic stress scenarios. Dividends from subsidiaries and other sources of funds at the holding company may be used to repurchase shares under the authorized share repurchase program at the discretion of management.

Under significant economic stress scenarios, the Company has the ability to meet short-term cash requirements, if needed, by borrowing under its revolving credit facility or by having its insurance subsidiaries take collateralized advances under a facility with the FHLBB. The Company could also choose to have its insurance subsidiaries sell certain highly liquid, high quality fixed maturities or the Company could issue debt in the public markets under its shelf registration.

Debt

In 2022, The Hartford redeemed at par $600 aggregate principal amount of its 7.875% junior subordinated debentures due 2042 and recognized, in insurance operating costs and other expenses, a loss on extinguishment of debt of $9, before tax, for unamortized debt issuance costs.

For additional information on Debt, see Note 14 - Debt of Notes to Consolidated Financial Statements.

|DIVIDENDS

The Hartford's Board of Directors declared the following quarterly dividends since October 1, 2023:

Common Stock Dividends

Declared			Record			Payable			Amount per share
October 26, 2023			December 1, 2023			January 3, 2024			$	0.470
February 21, 2024			March 4, 2024			April 2, 2024			$	0.470

Preferred Stock Dividends

Declared			Record			Payable			Amount per share
December 13, 2023			February 1, 2024			February 15, 2024			$	375.00
February 21, 2024			May 1, 2024			May 15, 2024			$	375.00

There are no current restrictions on HFSG Holding Company's ability to pay dividends to its stockholders.

For a discussion of restrictions on dividends to HFSG Holding Company from its insurance subsidiaries, see the following "Dividends from Subsidiaries" discussion. For a discussion of potential restrictions on the HFSG Holding Company's ability to pay dividends, see Part I, Item 1A, — Risk Factors for the risk factor "Our ability to declare and pay dividends is subject to limitations."

|DIVIDENDS FROM SUBSIDIARIES

Dividends to HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. The Company’s principal insurance subsidiaries are domiciled in the United States and the United Kingdom.

The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s statutory policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the preceding year, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner.

Property casualty insurers domiciled in New York, including NIC and Navigators Specialty Insurance Company ("NSIC"), generally may not, without notice to and approval by the state insurance commissioner, pay dividends out of earned surplus in any twelve‑month period that exceeds the lesser of (i) 10% of the insurer’s statutory policyholders’ surplus as of the most recent financial statement on file, or (ii) 100% of its adjusted net investment income, as defined, for the same twelve month period.

The insurance holding company laws of the other jurisdictions in which The Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances more restrictive) limitations on the payment of dividends. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization, regulatory capital requirements, liquidity requirements and state deposit requirements of the individual subsidiary.

Corporate members of Lloyd's syndicates may pay dividends to its parent to the extent of available profits that have been distributed from the syndicate in excess of the FAL capital requirement and subject to restrictions imposed under UK Company Law. The FAL is determined based on the syndicate's SCR under the Solvency II capital adequacy model, the current regulatory framework governing UK domiciled insurers, plus a Lloyd’s specific economic capital assessment.

Insurers domiciled in the United Kingdom may pay dividends to their parent out of their statutory profits subject to restrictions imposed under U.K. Company law and Solvency II.

In 2023, HFSG Holding Company received $408 of dividends from HLA and $129 from Hartford Funds. In addition, HFSG Holding Company received $1.5 billion of net dividends from P&C subsidiaries in 2023 which excludes $100 of P&C dividends that were subsequently contributed to P&C subsidiaries and $50 of P&C dividends related to interest

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

payments on an intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company. Refer to "2024 expected dividends and other sources of capital" for expected payments of dividends from our subsidiaries in 2024.

|OTHER SOURCES OF CAPITAL FOR THE HFSG HOLDING COMPANY

The Hartford endeavors to maintain a capital structure that provides financial and operational flexibility to its insurance subsidiaries, ratings that support its competitive position in the financial services marketplace (see the "Ratings" section below for further discussion), and stockholder returns. As a result, the Company may from time to time raise capital from the issuance of debt, common equity, preferred stock, equity-related debt or other capital securities and is continuously evaluating strategic opportunities. The issuance of debt, common equity, equity-related debt or other capital securities could result in the dilution of stockholder interests or reduced net income to common stockholders due to additional interest expense or preferred stock dividends.

Shelf Registrations

The Hartford filed an automatic shelf registration statement with the Securities and Exchange Commission ("the SEC") on February 22, 2022 that permits it to offer and sell debt and equity securities during the three-year life of the registration statement.

For further information regarding Shelf Registrations, see Note 14 - Debt of Notes to Consolidated Financial Statements.

Revolving Credit Facility

The Hartford has a senior unsecured revolving credit facility (the "Credit Facility") that provides up to $750 of unsecured credit through October 27, 2026. As of December 31, 2023, no borrowings were outstanding and no letters of credit were issued under the Credit Facility and The Hartford was in compliance with all financial covenants. For further information regarding the Credit Facility, see Note 14 – Debt of Notes to Consolidated Financial Statements.

Intercompany Liquidity Agreements

The Company has $2.0 billion available under an intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes. The Connecticut Department of Insurance ("CTDOI") granted approval for certain affiliated insurance companies that are parties to the agreement to treat receivables from a parent, including the HFSG Holding Company, as admitted assets for statutory accounting purposes.

As of December 31, 2023, $1.9 billion was available, $100 was outstanding between certain affiliates and there were no amounts outstanding at the HFSG Holding Company.

Collateralized Advances with Federal Home Loan Bank of Boston

The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and HLA, are members of the FHLBB.

Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. Advances may be used to support general corporate purposes, which would be presented as short- or long-term debt, or to earn incremental investment income, which would be presented in other liabilities consistent with other collateralized financing transactions. As of December 31, 2023, there were no advances outstanding. The CTDOI permits Hartford Fire and HLA to pledge up to $1.3 billion and $0.7 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2024. For further information regarding the Company's collateralized advances with Federal Home Loan Bank of Boston, see Note 14 - Debt of Notes to Consolidated Financial Statements.

Lloyd's Letter of Credit Facility

The Hartford has a committed credit facility agreement with a syndicate of lenders (the "Lloyd's Facility"). The Lloyd's Facility has two tranches with one tranche extending a $74 commitment and the other tranche extending a £79 million ($101 as of December 31, 2023) commitment. As of December 31, 2023, letters of credit with an aggregate face amount of $74 and £79 million, or $101, were outstanding under the Lloyd's Facility.

Among other covenants, the Lloyd's Facility contains financial covenants regarding The Hartford's consolidated net worth and financial leverage and that limit the amount of letters of credit that can support Funds at Lloyd's, consistent with Lloyd's requirements. As of December 31, 2023, The Hartford was in compliance with all financial covenants of the facility. For further information regarding the Lloyd's Facility, see Note 14 - Debt of Notes to Consolidated Financial Statements.

|PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

While the Company has significant discretion in making voluntary contributions to the U.S. qualified defined benefit pension plan, minimum contributions are mandated in certain circumstances pursuant to the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006, the Worker, Retiree, and Employer Recovery Act of 2008, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, the Moving Ahead for Progress in the 21st Century Act of 2012 (MAP-21) and Internal Revenue Code regulations. The Company did not make any contributions to the U.S. qualified defined benefit pension plan in 2023, 2022 and 2021. 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. No other contributions were made to the other postretirement plans in 2023, 2022 and 2021. The Company’s 2023, 2022 and 2021 required minimum funding contributions were immaterial. The Company does not have a 2024 required minimum funding contribution for the U.S. qualified defined benefit pension plan and the funding requirements for all pension plans are expected to be immaterial. The Company has not determined whether, and to what extent, contributions may be made to the U.S.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

qualified defined benefit pension plan in 2024. The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2024 to make this determination. As of December 31, 2023, the U.S. qualified defined benefit pension plan is fully funded and in an asset position. For further discussion of pension and other postretirement benefit obligations, see Note 19 - Employee Benefit Plans of Notes to Consolidated Financial Statements.

|DERIVATIVE COMMITMENTS

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical rating agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could terminate agreements and demand immediate settlement of the outstanding net derivative positions transacted under each agreement. For further information, refer to Note 15 - Commitments and Contingencies of Notes to Consolidated Financial Statements.

As of December 31, 2023, no derivative positions would be subject to immediate termination in the event of a downgrade of one level below the current financial strength ratings. This could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated.

|INSURANCE OPERATIONS

While subject to variability period to period, underwriting and investment cash flows continue to provide sufficient liquidity to meet anticipated demands.

The principal sources of operating funds are premiums, fees earned from insurance and administrative service agreements, and investment income, while investing cash flows primarily originate from maturities and sales of invested assets.

The Company’s insurance operations consist of property and casualty insurance products (collectively referred to as “Property & Casualty Operations”) and Group Benefits products.

The Company's insurance operations hold fixed maturity securities including a significant short-term investment position (securities with maturities of one year or less at the time of purchase) to meet liquidity needs. Liquidity requirements that are unable to be funded by the Company's insurance operations' short-term investments would be satisfied with current operating funds, including premiums or investing cash flows, which includes proceeds received through the sale of invested assets. A sale of invested assets could result in significant realized losses.

The following tables represent the fixed maturity holdings, including the aforementioned cash and short-term investments available to meet liquidity needs, for each of the Company’s insurance operations.

Property & Casualty

			As of
			December 31, 2023
Fixed maturities			$	31,680
Short-term investments			2,127
Cash			106
Less: Derivative collateral			52
Total			$	33,861

Property & Casualty operations invested assets also include $456 in equity securities, $4.5 billion in mortgage loans and $3.8 billion in limited partnerships and other alternative investments.

Group Benefits Operations

			As of
			December 31, 2023
Fixed maturities			$	8,277
Short-term investments			382
Cash			12
Less: Derivative collateral			14
Total			$	8,657

Group Benefits operations invested assets also include $99 in equity securities, $1.6 billion in mortgage loans and $1.0 billion in limited partnerships and other alternative investments.

The primary uses of funds are to pay claims, claim adjustment expenses, commissions and other underwriting and insurance operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HFSG Holding Company.

Property & Casualty reserves for unpaid losses and loss adjustment expenses as of December 31, 2023 were $34.0 billion and net of reinsurance were $27.4 billion. Reserves for Property & Casualty unpaid losses and loss adjustment expenses include case reserves and IBNR reserves. The ultimate amount to be paid to settle both case and IBNR reserves is an estimate, subject to significant uncertainty. The actual amount to be paid is not finally determined until the Company reaches a settlement with the claimant. Final claim settlements may vary significantly from the present estimates, particularly since many claims will not be settled until well into the future. For a discussion of The Hartford’s judgment in estimating reserves for Property & Casualty see Part II, Item 7, MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance, and for historical payments by reserve line net of reinsurance, see Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements. The timing of future payments for the next twelve months and for beyond twelve months could vary materially from historical payment patterns due to, among other things, changes in claim reporting and payment patterns and large unanticipated settlements. In particular, there is significant uncertainty over the claim payment patterns of asbestos and environmental claims.

Group Benefits reserves as of December 31, 2023 were $9.0 billion and net of reinsurance were $8.7 billion. Group life and disability obligations are estimated using assumptions based on the Company’s historical experience, modified for recent observed trends. For a discussion of The Hartford’s judgment in estimating LTD reserves for Group Benefits see Part II, Item 7, MD&A - Critical Accounting Estimates, Group

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Benefit LTD Reserves, Net of Reinsurance. For additional information about future policy benefits and other policyholder funds and benefits payable, see Note 12 - Reserve for Future Policy Benefits and Note 13 - Other Policyholder Funds and Benefits Payable of Notes to Consolidated Financial Statements. For historical payments by reserve line, net of reinsurance, see Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements. Due to the significance of the assumptions used, payments for the next twelve months and beyond twelve months could materially differ from historical patterns.

Corporate includes reserves of $402 as of December 31, 2023 related to retained run-off liabilities of its former life and annuity business. For additional information about future policy benefits and other policyholder funds and benefits payable, see Note 12 - Reserve for Future Policy Benefits and Note 13 - Other Policyholder Funds and Benefits Payable of Notes to Consolidated Financial Statements.

Hartford Funds

Hartford Funds principal sources of operating funds are fees earned from basis points on assets under management with uses primarily for payments to subadvisors and other general operating expenses. As of December 31, 2023, Hartford Funds cash and short-term investments were $250.

|PURCHASE AND OTHER OBLIGATIONS

The Hartford’s unfunded commitments to purchase investments in limited partnerships and other alternative investments, private placements, and mortgage loans are disclosed in Note 15 - Commitments and Contingencies of Notes to Consolidated Financial Statements. It is anticipated that these unfunded commitments will be funded through the Company’s normal operating and investing activities.

In the normal course of business, the Company enters into contractual commitments to purchase various goods and services such as maintenance, human resources, and information technology. The Company’s operating lease commitments are disclosed in Note 21 - Leases of Notes to Consolidated Financial Statements. It is anticipated that these purchase commitments and operating lease obligations will be funded through the Company’s normal operating and investing activities.

|CAPITALIZATION

Capital Structure
			December 31, 2023			December 31, 2022			Change
Long-term debt			$	4,362		$	4,357		—%
Total debt			4,362			4,357			—%
Common stockholders' equity, excluding AOCI, net of tax			17,842			17,183			4%
Preferred stock			334			334			—%
AOCI, net of tax			(2,849)			(3,841)			26%
Total stockholders’ equity			$	15,327		$	13,676		12%
Total capitalization			$	19,689		$	18,033		9%
Debt to stockholders’ equity			28		%	32		%
Debt to capitalization			22		%	24		%

Total capitalization increased $1,656, or 9%, as of December 31, 2023 compared to December 31, 2022 primarily due to net income in excess of common stockholder dividends in the period and a decrease in net unrealized losses on fixed maturities, AFS, partially offset by share repurchases.

For additional information on AOCI, net of tax, including unrealized gains from securities, see Note 18 - Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) and Note 5 - Investments of Notes to Consolidated Financial Statements. For additional information on debt, see Note 14 - Debt of Notes to Consolidated Financial Statements.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

|CASH FLOW [1]

			2023			2022			2021
Net cash provided by operating activities			$	4,220		$	4,008		$	4,093
Net cash used for investing activities			$	(2,431)		$	(1,277)		$	(2,466)
Net cash used for financing activities			$	(1,947)		$	(2,710)		$	(1,581)
Cash and restricted cash— end of year			$	189		$	344		$	337

*[1]*Cash activities in 2021 include cash flows related to Continental Europe Operations classified as held for sale beginning in the third quarter of 2020 and sold on December 29, 2021. See Note 22 - Business Dispositions of Notes to Consolidated Financial Statements for discussion of this transaction.

Year ended December 31, 2023 compared to the year ended December 31, 2022

Net cash provided by operating activities increased in 2023 as compared to the prior year period primarily driven by an increase in P&C and Group Benefits premiums received, largely offset by an increase in P&C loss and loss adjustment expenses paid, including the $787 payment to the BSA on April 20, 2023, and higher operating expenses, including increased commissions and staffing costs.

Cash used for investing activities increased in 2023 as a result of a change from net proceeds from to net payments for both fixed maturities and derivatives, partially offset by a change from net payments for to net proceeds from equity securities, a decrease in net payments for mortgage loans, a

decrease in net payments for short-term investments, and a decrease in net payments for partnerships.

Cash used for financing activities decreased primarily due to the redemption of $600 of 7.875% junior subordinated debentures in the second quarter of 2022, and a decrease in share repurchases in 2023.

Operating cash flows for the year ended December 31, 2023 have been adequate to meet liquidity requirements.

|EQUITY MARKETS

For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk on Statutory Capital and Liquidity Risk section in this MD&A.

|RATINGS

Ratings are an important factor in establishing a competitive position in the insurance marketplace and impact the Company's ability to access financing and its cost of borrowing. There can be no assurance that the Company’s ratings will continue for any given period of time, or that they will not be changed. In the event the Company’s ratings are downgraded, the Company’s competitive position, ability to access financing, and its cost of borrowing, may be adversely impacted.

Insurance Financial Strength Ratings as of February 22, 2024

			A.M. Best			Standard & Poor's			Moody's
Hartford Fire Insurance Company			A+			A+			A1
Hartford Life and Accident Insurance Company			A+			A+			A1
Navigators Insurance Company			A+			A+			Not Rated
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt			a-			BBB+			Baa1

These ratings are not a recommendation to buy, sell or hold any of The Hartford’s securities and they may be revised or withdrawn at any time at the discretion of the rating organization. Each agency’s rating should be evaluated independently of any other agency’s rating. The system and the number of rating categories can vary across rating agencies.

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 GAAP capital held by the Company in determining the Company's financial strength and credit ratings. Rating agencies may implement changes to their capital formulas that have the effect of increasing the amount of capital we must hold in order to maintain our current ratings. See Part I, Item 1A. Risk Factors — “Downgrades in our financial strength or credit ratings may make our products less attractive, increase our cost of capital and inhibit our ability to refinance our debt.”

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

|STATUTORY CAPITAL

U.S. Statutory Capital Rollforward for the Company's Insurance Subsidiaries
			Property and Casualty Insurance Subsidiaries [1] [2]			Group Benefits Insurance Subsidiary			Total
U.S. statutory capital at January 1, 2023			$	12,111		$	2,571		$	14,682
Statutory income			1,887			592			2,479
Dividends to parent			(1,515)			(408)			(1,923)
Other items			66			(7)			59
Net change to U.S. statutory capital			438			177			615
U.S. statutory capital at December 31, 2023			$	12,549		$	2,748		$	15,297

*[1]*The statutory capital for property and casualty insurance subsidiaries in this table does not include the value of an intercompany note owed by HHI to Hartford Fire Insurance Company.

*[2]*Excludes insurance operations in the U.K.

Stat to GAAP Differences

Significant differences between U.S. GAAP stockholders’ equity and aggregate statutory capital prepared in accordance with U.S. STAT include the following:

• U.S. STAT excludes equity of non-insurance and foreign insurance subsidiaries not held by U.S. insurance subsidiaries.

• Costs incurred by the Company to acquire insurance policies are deferred under U.S. GAAP while those costs are expensed immediately under U.S. STAT.

• Temporary differences between the book and tax basis of an asset or liability which are recorded as deferred tax assets are evaluated for recoverability under U.S. GAAP while these amounts are then subject to further admissibility tests under U.S. STAT.

• The assumptions used in the determination of Group Benefits reserves (i.e., for Group Benefits contracts) are prescribed under U.S. STAT, while the assumptions used under U.S. GAAP are generally the Company’s best estimates.

• The difference between the amortized cost and fair value of fixed maturity and other investments, net of tax, is recorded as an increase or decrease to the carrying value of the related asset and to equity under U.S. GAAP, while, under U.S. STAT, most investments are carried at amortized cost with only certain securities carried at fair value, such as equity securities and certain lower rated bonds required by the NAIC to be recorded at the lower of amortized cost or fair value.

• U.S. STAT for life insurance companies like HLA establishes a formula reserve for realized and unrealized losses due to default and equity risks associated with certain invested assets (the Asset Valuation Reserve), while U.S. GAAP does not. Also, for those realized gains and losses caused by changes in interest rates, U.S. STAT for life insurance companies defers and amortizes the gains and losses into income over the original life to maturity of the asset sold (the Interest Maintenance Reserve) while U.S. GAAP does not.

• Goodwill arising from the acquisition of a business is tested for recoverability on an annual basis (or more frequently, as necessary) for U.S. GAAP, while under U.S. STAT goodwill is amortized over a period not to exceed 10 years and the amount of goodwill admitted as an asset is limited.

• The deferred gain on retroactive reinsurance for losses ceded to the Navigators and A&E ADC agreements is recognized within a special category of surplus under U.S. STAT but is recognized within other liabilities under U.S. GAAP. In addition, the pattern of amortizing the deferred gain for GAAP and releasing special surplus for STAT is different. For GAAP the deferred gain is amortized in proportion of actual recoveries collected to total expected recoveries, while for STAT special surplus is released dollar for dollar once recoveries collected exceed the reinsurance premium.

In addition, certain assets, including a portion of premiums receivable and fixed assets, are non-admitted (recorded at zero value and charged against surplus) under U.S. STAT. U.S. GAAP generally evaluates assets based on their recoverability.

|RISK BASED CAPITAL

The Company's U.S. insurance companies' states of domicile impose RBC requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. All of the Company's U.S. operating insurance

subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations.

Similar to the RBC ratios that are employed by U.S. insurance regulators, regulatory authorities in the international jurisdictions in which the Company operates generally establish minimum solvency requirements for insurance companies. All of the Company's international insurance subsidiaries expect to maintain capital levels in excess of the minimum levels required by the applicable regulatory authorities.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

|SENSITIVITY

In any particular period, statutory capital amounts and RBC ratios may increase or decrease depending upon a variety of factors. The amount of change in the statutory capital or RBC ratios can vary based on individual factors and may be compounded in extreme scenarios or if multiple factors occur at the same time. At times the impact of changes in certain market factors or a combination of multiple factors on RBC ratios can be counterintuitive. For further discussion on these factors, see MD&A - Enterprise Risk Management, Financial Risk on Statutory Capital.

Statutory capital at the insurance subsidiaries has been maintained at capital levels commensurate with the Company's desired RBC ratios and ratings from rating agencies. The amount of statutory capital can increase or decrease depending on a number of factors affecting insurance results including, among other factors, the level of catastrophe claims incurred, the amount of reserve development, the effect of changes in interest rates on investment income and the discounting of loss reserves, and the effect of realized gains and losses on investments.

|CONTINGENCIES

Legal Proceedings

For a discussion regarding The Hartford’s legal proceedings, see the information contained in Note 15 - Commitments and Contingencies of the Notes to Consolidated Financial Statements and Part I, Item 3 — Legal Proceedings, which are incorporated herein by reference.

Legislative and Regulatory Developments

Inflation Reduction Act

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”) which is generally effective for years beginning after December 31, 2022. Notably, the bill created a 15% corporate alternative minimum tax (“CAMT”) on corporations with three-year average financial statement income over $1 billion. The Internal Revenue Service has issued some preliminary guidance and is expected to release more detailed proposed regulations in the coming year. The Company has made certain interpretations and assumptions to comply with the CAMT. While the Company's financial statement income is over $1 billion, it is not expected the Company would have a CAMT liability. If CAMT is paid in the future, the amount would be indefinitely available as a credit carryforward that would reduce tax in future years and would be treated as a temporary item reflected within deferred taxes.

In addition, Congress may consider a variety of proposals including a possible increase in the corporate tax rate to offset the cost of any new spending. Tax proposals and regulatory initiatives that may be considered by Congress and/or the U.S. Treasury Department could have a material effect on the Company and its insurance businesses. The nature and timing of any such Congressional or regulatory action with respect to any such efforts is unclear.

Guaranty Fund and Other Insurance-related Assessments

For a discussion regarding Guaranty Fund and Other Insurance-related Assessments, see Note 15 - Commitments and Contingencies of Notes to Consolidated Financial Statements.

IMPACT OF NEW ACCOUNTING STANDARDS

For a discussion of accounting standards, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements.

|

Table of Contents						Index to MD&A

Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

ACRONYMS

A&E			Asbestos and Environmental			HIMCO			Hartford Investment Management Company
ABS			Asset-Backed Securities			HLA			Hartford Life and Accident Insurance Company
ACL			Allowance for Credit Losses			IBNR			Incurred But Not Reported
ADC			Adverse Development Cover			LAE			Loss Adjustment Expense
AFS			Available-For-Sale			LCL			Liability for Credit Losses
ALAE			Allocated Loss Adjustment Expenses			LIBOR			London Inter-Bank Offered Rate
AOCI			Accumulated Other Comprehensive Income			LTD			Long-Term Disability
AUM			Assets Under Management			LTV			Loan-to-Value
BSA			Boy Scouts of America			MD&A			Management's Discussion and Analysis of Financial Conditions and Results of Operations
CAY			Current Accident Year			NAIC			National Association of Insurance Commissioners
CLO			Collateralized Loan Obligations			NIC			Navigators Insurance Company
CMBS			Commercial Mortgage-Backed Securities			NICO			National Indemnity Company, a subsidiary of Berkshire Hathaway Inc. (“Berkshire”)
CPRI			Credit and Political Risk Insurance			NM			Not Meaningful
DAC			Deferred Policy Acquisition Costs			NOLs			Net Operating Losses
DEI			Diversity, Equity and Inclusion			NSIC			Navigators Specialty Insurance Company
DLR			Disabled Life Reserve			OCI			Other Comprehensive Income
DSCR			Debt Service Coverage Ratio			OTC			Over-the-Counter
ERCC			Enterprise Risk and Capital Committee			P&C			Property and Casualty
ESPP			The Hartford Employee Stock Purchase Plan			PV&T			Political Violence and Terrorism
ETF			Exchange-Traded Funds			PYD			Prior Accident Year Development
FAL			Funds at Lloyd's			RBC			Risk-Based Capital
FASB			Financial Accounting Standards Board			RMBS			Residential Mortgage-Backed Securities
FHLBB			Federal Home Loan Bank of Boston			ROA			Return on Assets
FVO			Fair Value Option			ROE			Return on Equity
GAAP			Generally Accepted Accounting Principles			SCR			Solvency Capital Requirement
HFSG			Hartford Financial Services Group, Inc.			SOFR			Secured Overnight Financing Rate
HHI			Hartford Holdings, Inc.			ULAE			Unallocated Loss Adjustment Expenses

|

Table of Contents

Part II - Item 9A. Controls and Procedures

Item 9A.

CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company's principal executive officer and its principal financial officer, based on their evaluation of the Company's disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) have concluded that the Company's disclosure controls and procedures are effective for the purposes set forth in the definition thereof in Exchange Act Rule 13a-15(e) as of December 31, 2023.

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of The Hartford Financial Services Group, Inc. and its subsidiaries (“The Hartford”) is responsible for establishing and maintaining adequate internal control over financial reporting for The Hartford as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. A company's internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Hartford's management assessed its internal controls over financial reporting as of December 31, 2023 in relation to criteria for effective internal control over financial reporting described in “Internal Control-Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment under those criteria, The Hartford's management concluded that its internal control over financial reporting was effective as of December 31, 2023.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company's internal control over financial reporting that occurred during the Company's fourth fiscal quarter of 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

ATTESTATION REPORT OF THE COMPANY'S REGISTERED PUBLIC ACCOUNTING FIRM

The Hartford's independent registered public accounting firm, Deloitte & Touche LLP, has issued their attestation report on the Company's internal control over financial reporting which is set forth below.

|

Table of Contents