\n| \n \n\u00a0\n<\/p>\n ($ in millions except per share data)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n Change<\/b><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | | \n\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet income available to common stockholders\n<\/p>\n<\/td>\n | | \n\n \n$584\n<\/p>\n<\/td>\n | | \n\n \n$724\n<\/p>\n<\/td>\n | | \n\n \n(19)%\n<\/p>\n<\/td>\n | | \n\n \n$1,794\n<\/p>\n<\/td>\n | | \n\n \n$2,344\n<\/p>\n<\/td>\n | | \n\n \n(23)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income available to common stockholders per diluted share1<\/sup><\/i><\/p>\n<\/td>\n | \n\n $1.81<\/i><\/p>\n<\/td>\n | | \n\n $2.10<\/i><\/p>\n<\/td>\n | | \n\n \n(14)%\n<\/p>\n<\/td>\n | | \n\n $5.44<\/i><\/p>\n<\/td>\n | | \n\n $6.62<\/i><\/p>\n<\/td>\n | | \n\n \n(18)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCore earnings2<\/sup><\/p>\n<\/td>\n | \n\n \n$746\n<\/p>\n<\/td>\n | | \n\n \n$697\n<\/p>\n<\/td>\n | | \n\n \n7%\n<\/p>\n<\/td>\n | | \n\n \n$2,492\n<\/p>\n<\/td>\n | | \n\n \n$2,178\n<\/p>\n<\/td>\n | | \n\n \n14%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Core earnings per diluted share2<\/sup><\/i><\/p>\n<\/td>\n | \n\n $2.31<\/i><\/p>\n<\/td>\n | | \n\n $2.02<\/i><\/p>\n<\/td>\n | | \n\n \n14%\n<\/p>\n<\/td>\n | | \n\n $7.56<\/i><\/p>\n<\/td>\n | | \n\n $6.15<\/i><\/p>\n<\/td>\n | | \n\n \n23%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value per diluted share\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$41.53\n<\/p>\n<\/td>\n | | \n\n \n$51.36\n<\/p>\n<\/td>\n | | \n\n \n(19%)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value per diluted share (ex. AOCI)2<\/sup><\/p>\n<\/td>\n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$53.63\n<\/p>\n<\/td>\n | | \n\n \n$50.86\n<\/p>\n<\/td>\n | | \n\n \n5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income available to common stockholders’ return on equity (ROE)3<\/sup><\/b>, last 12-months\n<\/p>\n<\/td>\n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n11.6%\n<\/p>\n<\/td>\n | | \n\n \n13.1%\n<\/p>\n<\/td>\n | | \n\n \n(1.5)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCore earnings ROE2,3<\/b><\/sup>, last 12-months\n<\/p>\n<\/td>\n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n14.4%\n<\/p>\n<\/td>\n | | \n\n \n12.7%\n<\/p>\n<\/td>\n | | \n\n \n1.7\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n [1] Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends<\/i><\/p>\n [2] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures<\/i><\/p>\n [3] Return on equity (ROE) is calculated based on last 12-months net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders\u2019 equity including AOCI; for core earnings ROE, the denominator is common stockholders\u2019 equity excluding AOCI<\/i><\/p>\n The Hartford defines increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa, as “NM” or not meaningful<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFourth quarter 2022 net income available to common stockholders was $584 million, or $1.81 per diluted share, compared to $724 million in fourth quarter 2021, primarily due to a decrease in P&C underwriting results and a decrease in net realized gains, partially offset by a reduction in excess mortality in Group Benefits and higher net investment income. Included in fourth quarter 2022 net income was a charge for a deferred gain on retroactive reinsurance of $229 million, before tax, related to asbestos and environmental reserves compared to a charge of $155 million, before tax, in fourth quarter 2021.\n<\/p>\n \nFourth quarter 2022 core earnings of $746 million, or $2.31 per diluted share, increased from $697 million of core earnings in fourth quarter 2021. Contributing to the results were:\n<\/p>\n \n- \nLower excess mortality losses in group life with $43 million, before tax, in fourth quarter 2022, compared to $161 million, before tax, in fourth quarter 2021.\n<\/li>\n
- \nAn increase in earnings generated by 8% growth in P&C earned premium and a 9% increase in Group Benefits fully insured ongoing premium.\n<\/li>\n
- \nNet investment income of $640 million, before tax, compared to $573 million in fourth quarter 2021, driven by a higher yield on variable rate securities and reinvesting at higher rates.\n<\/li>\n
- \nAn improvement in the group disability loss ratio to 65.5% from 71.6%, driven by elevated estimated long-term disability incidence trends in fourth quarter 2021.\n<\/li>\n
- \nCommercial Lines loss and loss adjustment expense ratio of 57.4 compared to 52.2 in fourth quarter 2021, including 3.9 points of higher CATs and 2.0 points of less favorable prior accident year development (PYD). Underlying loss and loss adjustment expense ratio* improved 0.8 points, to 55.7 in fourth quarter 2022 from 56.5 in fourth quarter 2021, primarily driven by margin improvement in Global Specialty.\n<\/li>\n
- \nP&C CAY CAT losses of $135 million, before tax, in fourth quarter 2022, including $167 million for Winter Storm Elliott in December and $68 million of favorable development on prior quarter catastrophes, compared to CAY CAT losses of $22 million in fourth quarter 2021.\n<\/li>\n
- \nNet favorable PYD in core earnings of $46 million, before tax, in fourth quarter 2022, compared to net favorable PYD of $144 million in core earnings in fourth quarter 2021. Among other changes, net favorable PYD in fourth quarter 2022 primarily included reserve reductions in workers’ compensation, catastrophes and bond, partially offset by reserve increases in general liability and commercial auto liability.\n<\/li>\n
- \nPersonal Lines loss and loss adjustment expense ratio of 74.4 compared to 65.7 in fourth quarter 2021, including 0.6 points of higher CATs and 4.2 points of favorable PYD in fourth quarter 2021. Underlying loss and loss adjustment expense ratio of 71.5 in fourth quarter 2022 compared to 67.8 in fourth quarter 2021, with the increase largely due to higher severity in auto liability and physical damage, partially offset by earned pricing increases benefiting both auto and homeowners.\n<\/li>\n
- \nAn increase in the group life loss ratio apart from excess mortality driven by higher accidental death losses as compared to very favorable fourth quarter 2021 experience.\n<\/li>\n<\/ul>\n
\nFull year 2022 net income available to common stockholders was $1.8 billion, or $5.44 per diluted share, compared to $2.3 billion in the 2021 period, primarily due to a change from net realized gains to net realized losses and a reduction in net investment income due to lower income from limited partnerships and other alternative investments (LPs), partially offset by lower excess mortality in Group Benefits and higher P&C underwriting results.\n<\/p>\n \nFull year 2022 core earnings of $2.5 billion, or $7.56 per diluted share, compared to $2.2 billion of core earnings in the 2021 period. Contributing to the results were:\n<\/p>\n \n- \nLower excess mortality losses in group life, with $160 million, before tax, in 2022, compared to $583 million, before tax, in 2021.\n<\/li>\n
- \nAn increase in earnings generated by 8% growth in P&C earned premium and a 6% increase in Group Benefits fully insured ongoing premium.\n<\/li>\n
- \nNet favorable PYD in core earnings of $193 million, before tax, in 2022, compared to net favorable PYD of $47 million in core earnings in 2021. Among other changes, net favorable PYD in 2022 primarily included reserve reductions in workers’ compensation, catastrophes, package business and bond, partially offset by reserve increases in general liability and commercial auto liability.\n<\/li>\n
- \nNet investment income of $2.2 billion, before tax, compared to $2.3 billion in 2021, with lower LP income and a decline in valuation of equity fund investments, partially offset by a higher yield on variable rate securities and reinvesting at higher rates. LP income was $515 million, before tax, a 14.4% annualized return, in 2022, compared to LP income of $732 million, for a 31.8% annualized return, in 2021.\n<\/li>\n
- \nAn increase in insurance operating costs and other expenses in P&C and Group Benefits, primarily driven by investments in technology, an increase in staffing costs and higher performance-based commissions as well as lower doubtful accounts expense in 2021, partially offset by incremental savings from the Hartford Next program and lower direct marketing costs in Personal Lines.\n<\/li>\n
- \nPersonal Lines loss and loss adjustment expense ratio of 73.4 compared to 63.1 in 2021, including 4.5 points of less favorable PYD and 1.4 points of higher CATs. Underlying loss and loss adjustment expense ratio of 66.8 in 2022 compared to 62.3 in 2021, with the increase largely due to higher auto liability and physical damage severity, higher auto liability frequency, and higher non-CAT homeowners losses, partially offset by earned pricing increases.\n<\/li>\n
- \nCommercial Lines loss and loss adjustment expense ratio of 58.4 compared to 63.3 in 2021, including a change to net favorable PYD of 3.7 points and lower CATs of 1.0 point. Underlying loss and loss adjustment expense ratio improved 0.3 points, to 56.4 in 2022 from 56.7 in 2021, driven by margin improvement in Global Specialty and lower COVID-19 losses, partially offset by higher non-CAT property losses.\n<\/li>\n
- \nP&C CAY CAT losses of $649 million, before tax, in 2022, compared to $664 million in 2021.\n<\/li>\n
- \nLower earnings from Hartford Funds due to a decrease in daily average assets under management.\n<\/li>\n<\/ul>\n
\nDec. 31, 2022, book value per diluted share of $41.53 decreased 19%, from $51.36 at Dec. 31, 2021, principally due to a change from net unrealized gains to net unrealized losses on investments within AOCI as a result of an increase in interest rates and wider credit spreads.\n<\/p>\n \nBook value per diluted share (excluding AOCI)* of $53.63 as of Dec. 31, 2022, increased from $50.86 at Dec. 31, 2021, as the impact from net income in excess of stockholder dividends through Dec. 31, 2022, was partially offset by the dilutive effect of share repurchases.\n<\/p>\n \nNet income available to common stockholders’ ROE (net income ROE) was 11.6% for the twelve-month period ending Dec. 31, 2022 compared to 13.1% from fourth quarter 2021.\n<\/p>\n \nCore earnings ROE for the twelve-month period ending Dec. 31, 2022, was 14.4%, an increase of 1.7 points from fourth quarter 2021 due to higher trailing 12-month core earnings.\n<\/p>\n BUSINESS RESULTS:<\/b><\/p>\n Commercial Lines<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $566<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $702<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (19%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,624<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,757<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (8)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | | \n\n $562<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $622<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (10%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,925<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,631<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 18%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | | \n\n $2,733<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $2,512<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 9%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $11,158<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $10,041<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 11%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain (loss)1<\/sup><\/b><\/p>\n<\/td>\n | \n\n $304<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $387<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (21%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,032<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $402<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 157%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain1<\/sup><\/b><\/p>\n<\/td>\n | \n\n $350<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $279<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 25%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,242<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,039<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 20%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year before catastrophes\n<\/p>\n<\/td>\n | | \n\n \n55.7\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n56.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.8)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n56.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n56.7\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.3)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes\n<\/p>\n<\/td>\n | | \n\n \n4.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n3.9\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n5.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1.0)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnfavorable (favorable) prior accident year development\n<\/p>\n<\/td>\n | | \n\n \n(2.5)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4.5)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n2.0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2.2)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3.7)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Expenses<\/b><\/p>\n<\/td>\n | | \n\n 31.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 32.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (0.8)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n31.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n32.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.6)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Policyholder dividends<\/b><\/p>\n<\/td>\n | | \n\n 0.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 0.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \u2014<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 89.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 84.6<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 4.4<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 90.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 95.8<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (5.6)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpact of catastrophes and PYD on combined ratio\n<\/p>\n<\/td>\n | | \n\n \n(1.6)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5.9)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2.0)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(6.7)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.7\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 87.4<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 88.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (1.5)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 88.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 89.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (0.8)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n [1] Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFourth quarter 2022 net income of $566 million compared to net income of $702 million in fourth quarter 2021, principally due to a change from net realized gains to net realized losses and a decrease in underwriting gain, partially offset by higher net investment income.\n<\/p>\n \nCommercial Lines core earnings of $562 million in fourth quarter 2022 compared to $622 million in fourth quarter 2021. Contributing to the results were:\n<\/p>\n \n- \nCAY CAT losses of $114 million, before tax, in fourth quarter 2022, including $151 million for Winter Storm Elliott and $56 million of favorable development on prior quarter catastrophes, compared to CAY CAT losses of $6 million in fourth quarter 2021.\n<\/li>\n
- \nFavorable PYD within core earnings of $68 million, before tax, in fourth quarter 2022, compared to $132 million of favorable PYD within core earnings in fourth quarter 2021. Among other changes the $68 million of net favorable PYD in fourth quarter 2022 primarily included reserve reductions in workers\u2019 compensation, catastrophes, and bond, partially offset by reserve increases in general liability and auto liability. Favorable PYD within core earnings in fourth quarter 2021 of $132 million primarily included reserve reductions in workers’ compensation, catastrophes, and package business.\n<\/li>\n
- \nAn underlying loss and loss adjustment expense ratio of 55.7, in fourth quarter 2022 compared to 56.5 in fourth quarter 2021, with the decrease primarily driven by margin improvement in Global Specialty.\n<\/li>\n
- \nA 10% growth in earned premium.\n<\/li>\n
- \nNet investment income of $411 million before, tax, compared to $372 million in fourth quarter 2021, primarily driven by a higher yield on variable rate securities and reinvesting at higher rates, partially offset by lower returns on LP investments.\n<\/li>\n<\/ul>\n
\nCombined ratio was 89.0 in fourth quarter 2022, 4.4 points higher than 84.6 in fourth quarter 2021, primarily due to 2.0 points of less favorable prior accident reserve development and 3.9 points of higher CAY CAT losses, partially offset by a 1.5 point improvement in the underlying combined ratio. Underlying combined ratio was 87.4, a 1.5 point improvement from fourth quarter 2021, primarily due to a 0.8 point decrease in the underlying loss and loss adjustment expense ratio and a 0.8 point decrease in the expense ratio.\n<\/p>\n \n- \nSmall Commercial combined ratio of 89.4 compared to 79.0 in fourth quarter 2021 including 6.1 points of higher CAY CATs and 4.7 points of less favorable PYD. Underlying combined ratio of 87.5 improved from 88.0 in fourth quarter 2021 due to a lower expense ratio, largely offset by a higher package business loss ratio driven by non-CAT property losses.\n<\/li>\n
- \nMiddle & Large Commercial combined ratio of 91.8 compared to 83.5 in fourth quarter 2021 including 5.2 points of higher CAY CATs and 2.9 points of less favorable PYD. Underlying combined ratio of 90.2 compared with 90.0 in fourth quarter 2021 due to a higher expense ratio, largely driven by a doubtful account reserve reduction in 4Q21, and higher non-CAT property losses that were largely offset by large losses in excess liability in 4Q21.\n<\/li>\n
- \nGlobal Specialty combined ratio of 84.1 compared to 94.8 in fourth quarter 2021 including 1.6 points of lower CAY CATs and a 3.2 point change to favorable PYD. Underlying combined ratio of 83.0 improved 5.8 points from fourth quarter 2021 primarily due to a lower expense ratio and a lower loss ratio in U.S. wholesale, due in part to large losses in 4Q21, and improved results in financial lines and ocean marine lines of business as well as lower loss ratios in international marine and global reinsurance.\n<\/li>\n<\/ul>\n
\nThe expense ratio of 31.3% was down 0.8 points from fourth quarter 2021 driven by the impact of higher earned premium and incremental savings from the Hartford Next program, partially offset by investments in technology and the impact of a decrease in the allowance for credit losses on premiums receivable recognized in fourth quarter 2021.\n<\/p>\n \nFourth quarter 2022 written premiums of $2.7 billion were up 9% from fourth quarter 2021, reflecting higher new business and policy count retention in both Small Commercial and Middle Market, and the effect of renewal written price increases in Small Commercial, Middle Market, and Global Specialty, partially offset by lower new business in Global Specialty.\n<\/p>\n Personal Lines<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $44<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $81<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (46%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $91<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $385<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (76%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | | \n\n $42<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $70<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (40%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $119<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $362<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (67%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | | \n\n $695<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $668<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 4%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $2,961<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $2,908<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain (loss)<\/b><\/p>\n<\/td>\n | | \n\n $7<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $45<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (84%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(9)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $275<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain<\/b><\/p>\n<\/td>\n | | \n\n $29<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $30<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (3%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $186<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $299<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (38%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year before catastrophes\n<\/p>\n<\/td>\n | | \n\n \n71.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n67.8\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n3.7\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n66.8\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n62.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.5\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes\n<\/p>\n<\/td>\n | | \n\n \n2.8\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n2.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n7.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n5.7\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1.4\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnfavorable (favorable) prior accident year development\n<\/p>\n<\/td>\n | | \n\n \n0.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4.2)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.4)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4.9)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4.5\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Expenses<\/b><\/p>\n<\/td>\n | | \n\n 24.7<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 28.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (3.5)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n26.9\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n27.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.7)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 99.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 93.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 5.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 100.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 90.7<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n9.6\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nImpact of catastrophes and PYD on combined ratio\n<\/p>\n<\/td>\n | | \n\n \n(2.9)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n2.0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4.9)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(6.7)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.8)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5.9)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 96.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 95.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 0.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 93.7<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 89.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n3.8\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet income of $44 million in fourth quarter 2022 compared to net income $81 million in fourth quarter 2021 largely driven by a decrease in underwriting gain and, to a lesser extent, a decrease in net realized gains.\n<\/p>\n \nPersonal Lines core earnings of $42 million compared to $70 million of core earnings in fourth quarter 2021. Contributing to the results were:\n<\/p>\n \n- \nAn underlying loss and loss adjustment expense ratio of 71.5, in fourth quarter 2022 compared to 67.8 in fourth quarter 2021, with the increase primarily driven by higher severity in auto liability and physical damage, partially offset by earned pricing increases benefiting both auto and homeowners.\n<\/li>\n
- \n$31 million, before tax, of favorable PYD in fourth quarter 2021 compared to unfavorable PYD of $1 million in fourth quarter of 2022.\n<\/li>\n
- \nA decrease in underwriting expenses largely attributable to lower direct marketing costs.\n<\/li>\n
- \nCAY CAT losses of $21 million, before tax, in fourth quarter 2022, including Winter Storm Elliott, compared to $16 million in fourth quarter 2021.\n<\/li>\n
- \nNet investment income, of $41 million, before tax, in fourth quarter 2022 compared to $38 million in fourth quarter 2021.\n<\/li>\n<\/ul>\n
\nCombined ratio of 99.1 in fourth quarter 2022, compared to 93.9 in fourth quarter 2021, primarily due to 4.2 points of favorable PYD in fourth quarter 2021, a 3.7 point increase in CAY losses before CATs, and a 0.6 point increase in the CAY CAT ratio. Underlying combined ratio of 96.2 compared to 95.9 in fourth quarter 2021, primarily due to an increase in CAY losses before CATs in auto, partially offset by a 3.5 point decrease in the expense ratio and a lower non-CAT CAY homeowners loss ratio.\n<\/p>\n \n- \nAuto combined ratio of 108.6 compared to 102.4 in fourth quarter 2021. The underlying combined ratio of 108.9 increased from 105.4 in fourth quarter 2021, primarily due to an increase in auto liability and physical damage severity, partially offset by an increase in earned pricing and a lower expense ratio.\n<\/li>\n
- \nHomeowners combined ratio of 78.1 compared to 74.8 in fourth quarter 2021. The underlying combined ratio of 68.3 was down from 75.1 in fourth quarter 2021, as the effect of earned pricing increases, lower severity and a lower expense ratio were partially offset by higher weather-related frequency.\n<\/li>\n<\/ul>\n
\nThe decrease in the expense ratio to 24.7 was mostly driven by lower direct marketing costs and, to a lesser extent, an increase in earned premium and incremental savings from the Hartford Next program.\n<\/p>\n \nWritten premiums in fourth quarter 2022 were $695 million compared to $668 million in fourth quarter 2021 with:\n<\/p>\n \n- \nHigher renewal written price increases in auto and homeowners in response to increased loss cost trends.\n<\/li>\n
- \nAn increase in new business in homeowners.\n<\/li>\n
- \nA slight increase in auto policy count retention with homeowners’ retention flat.\n<\/li>\n
- \nPartially offset by a decline in new business in auto.\n<\/li>\n<\/ul>\n
Group Benefits<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $140<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $42<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $324<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $249<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 30%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings (loss)<\/b><\/p>\n<\/td>\n | | \n\n $141<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($12)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $427<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $153<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 179%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Fully insured ongoing premiums (ex. buyout premiums)<\/b><\/p>\n<\/td>\n | | \n\n $1,498<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1,380<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 9%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $5,858<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $5,502<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 6%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Loss ratio<\/b><\/p>\n<\/td>\n | | \n\n 73.6%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 84.0%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (10.4)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 74.6%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 81.1%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (6.5)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Expense ratio<\/b><\/p>\n<\/td>\n | | \n\n 25.0%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 26.3%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (1.3)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 25.3%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 25.5%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (0.2)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income margin<\/b><\/p>\n<\/td>\n | | \n\n 8.2%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.6%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 5.6<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 5.0%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 3.9%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 1.1<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings margin<\/b><\/p>\n<\/td>\n | | \n\n 8.3%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (0.8)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 9.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 6.5%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.5%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 4.0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet income of $140 million in fourth quarter 2022 compared to $42 million in fourth quarter 2021, largely driven by lower excess mortality losses in group life and a lower loss ratio in group disability, partially offset by a decrease in net realized gains.\n<\/p>\n \nCore earnings were $141 million, improving from a core loss of $12 million in fourth quarter 2021, largely driven by a reduction in excess mortality losses, an improvement in the group disability loss ratio, higher net investment income and earnings generated by 9% growth in fully insured ongoing premiums, partially offset by a higher group life loss ratio excluding excess mortality* and higher insurance operating expenses.\n<\/p>\n \nFully insured ongoing premiums were up 9% compared to fourth quarter 2021, driven by an increase in exposure on existing accounts as well as strong persistency and sales. Fully insured ongoing sales were $102 million in fourth quarter 2022, up 52% over fourth quarter 2021, driven by an increase in group disability.\n<\/p>\n \nLoss ratio of 73.6% improved 10.4 points from fourth quarter 2021, driven by an improvement of 15.4 points in group life and 6.1 points in group disability.\n<\/p>\n \n- \nGroup life loss ratio of 89.6% improved 15.4 points, primarily due to $43 million, before tax, or 7.1 points, of excess mortality losses in fourth quarter 2022 compared to $161 million, before tax, or 27.2 points, of excess mortality losses in fourth quarter 2021. The group life loss ratio excluding excess mortality increased 4.7 points primarily due to higher accidental death losses as compared to very favorable fourth quarter 2021 experience.\n<\/li>\n
- \nGroup disability loss ratio of 65.5% improved 6.1 points from fourth quarter 2021, driven by elevated estimated long-term disability incidence trends in fourth quarter 2021 and lower COVID-19 related short-term disability losses of 0.7 points.\n<\/li>\n
- \nExpense ratio of 25.0% improved 1.3 points from fourth quarter 2021, primarily due to the effect of higher earned premiums, lower premium taxes, and incremental expense savings from Hartford Next, partially offset by higher claims staffing and investments in technology.\n<\/li>\n<\/ul>\n
Hartford Funds<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $45<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $62<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (27)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $162<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $217<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (25)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | | \n\n $39<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $60<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (35)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $180<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $214<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (16)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Daily average Hartford Funds AUM<\/b><\/p>\n<\/td>\n | | \n\n $124,087<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $156,533<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (21)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $135,124<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $151,347<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (11)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Mutual Funds and exchange-traded funds (ETF) net flows<\/b><\/p>\n<\/td>\n | | \n\n $(3,293)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $358<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(7,951)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $3,867<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Total Hartford Funds AUM<\/b><\/p>\n<\/td>\n | | \n\n $124,107<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $157,895<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (21)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $124,107<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $157,895<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (21)%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet income of $45 million in fourth quarter 2022, compared to $62 million in fourth quarter 2021, and core earnings of $39 million compared to $60 million in fourth quarter 2021 largely driven by lower daily average Hartford Funds AUM resulting in lower fee income and variable expenses.\n<\/p>\n \nDaily average AUM of $124 billion in fourth quarter 2022 declined 21% from fourth quarter 2021 driven by decreases in market values and, to a lesser extent, net outflows over the preceding twelve months.\n<\/p>\n \nMutual fund and ETF net outflows totaled $3.3 billion in fourth quarter 2022, compared to net inflows of $0.4 billion in fourth quarter 2021.\n<\/p>\n Corporate<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Dec 31
\n
2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net loss<\/b><\/p>\n<\/td>\n | | \n\n $(22)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(37)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 41%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(196)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(148)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (32)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net loss available to common stockholders<\/b><\/p>\n<\/td>\n | | \n\n $(27)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(42)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 36%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(217)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(169)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (28)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core loss<\/b><\/p>\n<\/td>\n | | \n\n $(33)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(41)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 20%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(162)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(200)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 19%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Other revenue (loss)<\/b><\/p>\n<\/td>\n | | \n\n $0<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $0<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $1<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $(10)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n NM<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net investment income, before tax<\/b><\/p>\n<\/td>\n | | \n\n $13<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $16<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (19)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $26<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $24<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 8%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Interest expense and preferred dividends, before tax<\/b><\/p>\n<\/td>\n | | \n\n $55<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $67<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (18)%<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $234<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $255<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (8)%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet loss available to common stockholders of $27 million in fourth quarter 2022 compared to a net loss available to common stockholders of $42 million in fourth quarter 2021, primarily driven by a decrease in interest expense and an increase in net realized gains.\n<\/p>\n \nFourth quarter 2022 core loss of $33 million compared to a fourth quarter 2021 core loss of $41 million primarily due to lower interest expense, partially offset by lower net investment income.\n<\/p>\n INVESTMENT INCOME AND PORTFOLIO DATA:<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n | | \n\n Twelve Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Dec 31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |