The Hartford Reports Fourth Quarter 2012 Financial Results; Announces 2013 Outlook And Capital Management Plan

  The Hartford Reports Fourth Quarter 2012 Financial Results; Announces 2013
  Outlook And Capital Management Plan

  *Fourth quarter 2012 core earnings* of $265 million, or $0.54 per diluted
    share, including $218 million of catastrophe losses, after tax
  *Fourth quarter 2012 net loss of $46 million, or $0.13 per diluted share
  *Property & Casualty Standard Commercial renewal written price increases
    averaged 9% in the fourth quarter of 2012 and 8% for full year 2012
  *Fourth quarter 2012 Property & Casualty combined ratio, excluding
    catastrophes and prior year development*, was 95.4 compared with 98.2 in
    the fourth quarter 2011
  *Closed sales of Woodbury Financial and U.S. Annuity new business
    capabilities in 2012; closed sales of Retirement Plans and Individual Life
    in early January 2013
  *2013 core earnings outlook of $1.375 billion to $1.475 billion
  *Capital management plan to repurchase $500 million of common stock and to
    reduce debt by $1.0 billion

Business Wire

HARTFORD, Conn. -- February 4, 2013

The Hartford (NYSE:HIG) reported a net loss of $46 million, or $0.13 per
diluted share, for the three months ended Dec. 31, 2012 (fourth quarter 2012)
compared with net income of $118 million, or $0.23 per diluted share, for the
quarter ended Dec. 31, 2011 (fourth quarter 2011). The decline in net income
compared to the prior year quarter was due to higher catastrophe losses,
largely from Storm Sandy, restructuring and other costs, hedging losses on
runoff annuity blocks, and increased net realized capital losses due to the
sales of the Retirement Plans and Individual Life businesses.

Fourth quarter 2012 core earnings** declined to $265 million, or $0.54 per
diluted share, from $301 million, or $0.61  per diluted share, in the fourth
quarter of 2011. The decrease in fourth quarter 2012 results was due to higher
catastrophe losses as a result of Storm Sandy in the company's Property &
Casualty (P&C) operations which were offset by improved results in Group
Benefits, Corporate and Talcott Resolution, which is comprised of the
company's legacy Wealth Management runoff businesses, as well as the
Individual Life and Retirement Plans businesses that were sold in January,
2013.

The company also announced that it has reviewed with the Connecticut Insurance
Department its capital management plans and that it has received approval from
the Department for a $1.2 billion extraordinary dividend from its Connecticut
domiciled life insurance companies. In addition, it expects to dissolve the
company's Vermont life reinsurance captive and return approximately $300
million of surplus to the holding company. These actions are expected to be
completed by the end of the first quarter of 2013.

*Denotes financial measures not calculated based on generally accepted
accounting principles (“non-GAAP").
**The company changed the calculation of core earnings in the fourth quarter
of 2012. Please see the Discussion of Non-GAAP Financial Measures section
below for the current definition of core earnings and reconciliations to net
income.

The company also announced that it expects to reduce debt by approximately $1
billion, including the repayment of the 2013 and 2014 debt maturities totaling
$520 million. In addition, The Hartford's Board of Directors has authorized a
$500 million share repurchase program, expiring at Dec. 31, 2014.

“The Hartford had a strong finish to 2012 and the fourth quarter concluded a
year of strategic accomplishments for the company,” said The Hartford's
Chairman, President and Chief Executive Officer Liam E. McGee. “Following the
successful close of the sales of the life businesses, we enter 2013 with a
sharper focus on the P&C, Group Benefits and Mutual Funds businesses. We are
also very pleased to share our capital management plans, which will be
accretive to shareholders and effectively balance a number of critical goals
for The Hartford, including paying down debt, returning capital to
shareholders and further strengthening our financial flexibility to take
actions to reduce risk in the legacy annuity liabilities.”

“In the fourth quarter, pricing continued to improve across our P&C and Group
Benefits businesses, with P&C Standard Commercial renewal written price
increases of 9%. Group Benefits core earnings were up significantly in the
fourth quarter. Consumer Markets achieved a combined ratio improvement of 2.4
points, excluding catastrophes and prior year development. I also want to
express my appreciation for the professionalism and dedication demonstrated by
my Hartford colleagues in response to Storm Sandy,” added McGee.

The company also reported net income for the year ended Dec. 31, 2012 of $350
million, or $0.66 per diluted share, compared with 2011 net income of $712
million, or $1.40 per diluted share. The decline in net income was largely due
to the second quarter $587 million loss on extinguishment of debt incurred as
a result of the debt refinancing and increases in 2012 for net realized
capital losses due to hedging of the company's runoff annuity blocks and for
restructuring and other costs associated with the sales of the Retirement
Plans, Individual Life and other businesses.

2012 core earnings totaled $1.4 billion, or $2.88 per diluted share, compared
with $1.1 billion, or $2.24 per diluted share, in 2011. The increase in 2012
core earnings was principally due to a significant reduction in unfavorable
prior year loss and loss adjustment expense reserve development (prior year
development or PYD) in the company's P&C operations compared with 2011.

                                               
CONSOLIDATED FINANCIAL RESULTS
                                                      
($ in
millions          Three Months Ended            For The Years Ended
except per
share data)
Three Months          Dec.      Dec.                  Dec.     Dec.
Ended             31,      31,     Change^3   31,     31,     Change
                      2012      2011                  2012     2011
Net income        ($46)    $118    NM         $350    $712    (51)%
(loss)
Net income
(loss)
available to
common            $(0.13)  $0.23   NM         $0.66   $1.40   (53)%
shareholders
per diluted
share
Core earnings                                            
(losses):
Property &        $54      $130    (58)%      $714    $279    156%
Casualty
Group             39       17      129%       101     86      17%
Benefits
Mutual Funds      16       20      (20)%      74      98      (24)%
Talcott           211      197     7%         827     952     (13)%
Resolution
Corporate         (55)     (63)    13%        (313)   (299)   (5)%
Core earnings     $265     $301    (12)%      $1,403  $1,116  26%
Weighted
average           488.9    489.6   —%         486.8   498.7   (2)%
common shares
outstanding
Core earnings
available to
common            $0.54    $0.61   (11)%      $2.88   $2.24   29%
shareholders
per diluted
share^2
Book value
per diluted       $46.59   $44.31  5%                       
share
Book value
per diluted       $40.79   $41.73  (2)%                     
share (ex.
AOCI)¹

[1] Accumulated other comprehensive income (AOCI)
[2] Includes dilutive potential common shares and assumed conversion of
preferred shares
[3] 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.

Net income and core earnings included the following items which totaled $190
million, after tax, in 2012 and $163 million, after tax, in the fourth quarter
of 2012:

2012:

  *2012 catastrophe losses of $706 million, before tax ($459 million, after
    tax), which was approximately $210 million, after tax, or $0.43 per
    diluted share on a core basis, higher than the company's 2012 catastrophe
    forecast;
  *Favorable prior year development of $4 million, before tax ($3 million,
    after tax), or $0.01 per diluted share on a core basis; and
  *A $17 million tax benefit in the fourth quarter, or $0.03 per diluted
    share on a core basis, associated with retiree prescription drug benefits.

Fourth Quarter 2012:

  *2012 catastrophe losses totaled $335 million, before tax ($218 million,
    after tax), which was approximately $174 million, after tax, or $0.36 per
    diluted share on a core basis, higher than the company's fourth quarter
    2012 catastrophe forecast;
  *Unfavorable prior year development of $9 million, before tax ($6 million,
    after tax), or $0.01 per diluted share on a core basis; and
  *A $17 million tax benefit in the fourth quarter, or $0.03 per diluted
    share on a core basis, associated with retiree prescription drug benefits.

2013 OUTLOOK

The Hartford currently expects 2013 full year core earnings of between $1.375
billion and $1.475 billion, compared with $1.403 billion in 2012.

This outlook is a management estimate based on business, competitive, capital
market, catastrophe loads and other assumptions. Key business and market
assumptions included in this outlook are set forth in the table below. This
outlook is subject to change for many reasons, including unusual or
unpredictable items, such as catastrophe losses, tax benefits or charges,
prior year development, investment results, and other items. The company has
frequently experienced unusual or unpredictable benefits and charges that were
not anticipated in previously provided guidance.

                                                                  
2013 OUTLOOK
($ in millions)
                                          2013 Outlook            2012
Core earnings                              $1,375 - $1,475         $1,403
Key business drivers and market                                   
assumptions:
P&C Commercial combined ratio, excl.       92.5-95.5               96.6
catastrophes and PYD^1
Consumer Markets combined ratio, excl.     89.5-92.5               90.8
catastrophes and PYD^2
Catastrophe loss ratio                     4.8%                    7.1%
Group Benefits loss ratio                  77.0-80.0               79.5
Group Benefits core earnings               mid-high teens growth   $101
Talcott Resolution core earnings           $ 260-$280 million      $827
                                               decline
Annualized investment yield^3              4.1%                    4.3%
S&P 500 annualized return, incl.           9.0%                    15.8%
dividends
10 Year Treasury yield                     2.10%                   1.78%
Yen/$                                      90.0                    86.5

[1] Catastrophe budget of 2.5% included in 2013 outlook; 2012 actual
catastrophes were 5.2% of earned premium in P&C Commercial.
[2] Catastrophe budget of 8.6% included in 2013 outlook; 2012 actual
catastrophes were 10.5% of earned premium in Consumer Markets.
[3] Yields calculated using annualized net investment income (excluding income
related to equity securities, trading) divided by the monthly average invested
assets at cost, amortized cost, or adjusted carrying value, as applicable,
excluding equity securities, trading, repurchase agreement and dollar roll
collateral, and consolidated variable interest entity non-controlling
interests.

Investors should consider the risks and uncertainties that may cause the
company's actual results to materially differ from the 2013 outlook set forth
above, including, but not limited to, those set forth in the discussion of
forward looking statements at the end of this release and the risk factors
included in the company's quarterly report on Form 10-Q for the quarters ended
March31, 2012, June30, 2012, and Sept.30, 2012, and annual report on Form
10-K for the year ended Dec.31, 2011.

PROPERTY & CASUALTY (CONSOLIDATED)

Highlights:

  *Fourth quarter 2012 core earnings declined 58% to $54 million compared
    with the prior year quarter due to Storm Sandy
  *2012 P&C core earnings were $714 million, up 156% over 2011
  *Fourth quarter 2012 combined ratio, excluding catastrophes and prior year
    development, improved to 95.4 from 98.2 in the fourth quarter of 2011
  *2012 combined ratio, excluding catastrophes and prior year development,
    improved to 94.8 from 95.5 in 2011
  *P&C investment income declined 1% in 2012 compared with 2011 driven by a
    decrease in new money investment rates due to a decline in market yields
    and credit spreads


PROPERTY & CASUALTY
($ in             Three Months Ended           For The Years Ended
millions)
                      Dec.      Dec.                 Dec.      Dec.
                 31,      31,      Change   31,      31,     Change
                      2012      2011                 2012      2011
Written           $2,314   $2,340   (1)%     $9,847   $9,852  —%
premiums
Underwriting      $(229)   $(67)    NM       $(189)   $(671)  72%
loss*
Investment        $301     $292     3%       $1,232   $1,248  (1)%
income
Core earnings     $54      $130     (58)%    $714     $279    156%
Net income        $80      $137     (42)%    $770     $416    85%
Combined          109.2    102.7    (6.5)    101.9    106.8   4.9
ratio
Combined
ratio, excl.      95.4     98.2     2.8      94.8     95.5    0.7
PYD and
catastrophes
PYD, before       $9       $98      91%      $(4)     $367    NM
tax
Catastrophe
losses,           $335     $14      NM       $706     $745    5%
before tax
                                                             

Property & Casualty (Consolidated) includes the financial results of the
company's three P&C segments: P&C Commercial, Consumer Markets and P&C Other
Operations.

Fourth Quarter 2012 Results

Fourth quarter 2012 Property & Casualty net income was $80 million and core
earnings were $54 million, down 42% and 58%, respectively, over the fourth
quarter of 2011. The decline was largely driven by higher catastrophe losses,
which were partially offset by lower unfavorable prior year development. 2012
accident year catastrophe losses in the fourth quarter of 2012 totaled $335
million, before tax, which was $174 million, after tax, above the company's
fourth quarter 2012 catastrophe forecast. Catastrophe losses in the fourth
quarter of 2012 were almost entirely due to Storm Sandy. The company incurred
gross losses of $370 million from Storm Sandy and net losses of $350 million,
after reinsurance. Current accident year catastrophes in the fourth quarter of
2011 were $14 million, before tax. Unfavorable prior year development totaled
$9 million, before tax, in the fourth quarter of 2012 compared with an
unfavorable $98 million, before tax, in the fourth quarter of 2011.

Excluding catastrophes and prior year development, the P&C combined ratio in
the fourth quarter of 2012 was 95.4 compared with 98.2 in the fourth quarter
of 2011, reflecting improved underwriting margins in P&C Commercial and
Consumer Markets. Underwriting margins improved as a result of lower
non-catastrophe property losses and the effect of the company's pricing and
underwriting initiatives.

Fourth quarter 2012 written premiums declined 1% over the prior year period,
driven by P&C Commercial Markets as efforts to rebalance the portfolio through
pricing initiatives continued.

2012 Full Year Results

2012 P&C net income was $770 million and core earnings were $714 million, up
85% and 156%, respectively, over 2011 principally due to a reduction in
unfavorable prior year development in 2012 compared with 2011. 2012 accident
year catastrophe losses totaled $706 million, before tax ($459 million, after
tax), $210 million, after tax, above the company's forecast of 2012
catastrophe losses, compared with 2011 accident year catastrophe losses of
$745 million, before tax ($484 million, after tax). Prior year development was
favorable by $4 million, before tax, in 2012 compared with unfavorable prior
year development of $367 million, before tax, in 2011.

Excluding catastrophes and prior year development, the P&C consolidated
combined ratio was 94.8 in 2012 compared with 95.5 in 2011, reflecting
improved underwriting margins in P&C Commercial and Consumer Markets.
Underwriting margins improved as a result of pricing initiatives and lower
non-catastrophe property losses in P&C Commercial and Consumer Markets, and
the company's underwriting efforts in P&C Commercial.

Written premiums in 2012 were essentially flat with 2011, reflecting a slight
increase in P&C Commercial that was offset by a decline in Consumer Markets.

P&C Commercial

Highlights:

  *Fourth quarter 2012 underwriting losses were $193 million compared with
    $141 million in the fourth quarter of 2011 driven by higher catastrophes,
    partially offset by lower unfavorable prior year development
  *Continued pricing and underwriting initiatives and lower unfavorable prior
    year development resulted in improved P&C Commercial underwriting losses
    of $182 million in 2012 compared with $279 million in 2011
  *Standard Commercial renewal written price increases rose to 9% in the
    fourth quarter 2012 compared with 5% in the prior year quarter; 2012 rose
    to 8% compared with 4% in 2011
  *Renewal written price increases in Middle Market workers’ compensation
    were 15% and 14% in the fourth quarter 2012 and full year 2012,
    respectively

                                                             
P&C
COMMERCIAL
($ in             Three Months Ended           For The Years Ended
millions)
                      Dec.      Dec.                 Dec.      Dec.
                 31,      31,      Change   31,      31,     Change
                      2012      2011                 2012      2011
Underwriting      $(193)   $(141)   (37)%    $(182)   $(279)  35%
loss
Combined          112.3    109.0    (3.3)    102.9    104.6   1.7
ratio
Combined
ratio, excl.      97.8     101.1    3.3      96.6     97.3    0.7
catastrophes
and PYD
Written           $1,454   $1,482   (2)%     6,209    6,176   1%
premiums
                                                                        

Fourth Quarter 2012 Results

P&C Commercial underwriting loss was $193 million in the fourth quarter of
2012, a 37% deterioration from an underwriting loss of $141 million in the
fourth quarter of 2011. The higher underwriting loss was primarily due to
fourth quarter 2012 catastrophe losses which were partially offset by lower
unfavorable prior year development and favorable non-catastrophe property
results compared with the prior year quarter. Current year catastrophe losses
were $209 million, before tax, in the fourth quarter of 2012, largely due to
Storm Sandy, an increase compared with $15 million, before tax, in the fourth
quarter of 2011. Unfavorable prior year development was $18 million, before
tax, in the fourth quarter of 2012 compared with unfavorable prior year
development of $109 million, before tax, in the fourth quarter of 2011, which
were largely associated with the company's 2010 accident year workers'
compensation reserves.

The combined ratio, excluding catastrophes and prior year development,
improved to 97.8 in the fourth quarter of 2012 compared with 101.1 in the
fourth quarter of 2011, reflecting improved underwriting margins in workers'
compensation and lower non-catastrophe property losses. The fourth quarter
2012 and fourth quarter 2011 combined ratio included 1.8 points and 5.6
points, respectively, of unfavorable current accident year loss reserve
development related to the first nine months of the year, principally for
workers' compensation.

P&C Commercial continued to achieve strong renewal written pricing increases
in all business lines in the fourth quarter of 2012. Standard Commercial,
which is comprised of Small Commercial and Middle Market, renewal written
pricing increases averaged 9%, a 4 point increase over the fourth quarter of
2011. Middle Market pricing increased 11%, while Middle Market workers’
compensation pricing increased 15% in the quarter. Policy count retention
remained strong in Small Commercial at 83% in the fourth quarter of 2012, flat
with the fourth quarter of 2011. Middle Market policy count retention for the
fourth quarter of 2012 was 79%, an improvement compared with 77% in the fourth
quarter of 2011.

2012 Full Year Results

2012 P&C Commercial underwriting loss totaled $182 million, a 35% improvement
compared with 2011 due to lower unfavorable prior year development.
Unfavorable prior year development declined from $125 million, before tax, in
2011 to $72 million, before tax, in 2012, principally due to reduced prior
year development on workers' compensation reserves for the 2010 and 2011
accident years. Catastrophe losses totaled $325 million, before tax, in 2012,
almost equal to 2011's catastrophe losses of $320 million, before tax.

The 2012 P&C Commercial combined ratio, excluding catastrophes and prior year
development, improved to 96.6 compared with 97.3 in 2011. The improvement in
the combined ratio reflects higher pricing and the related margin expansion in
Middle Market and Specialty in 2012 compared with 2011.

2012 written premiums were slightly higher than 2011 at $6.2 billion, as rate
increases were largely offset by lower new business written and essentially
flat policy count retention, consistent with the company's rate and
underwriting strategies during 2012.

P&C Commercial continued to achieve strong renewal written pricing increases
in all business lines in 2012. Standard Commercial renewal written pricing
increases averaged 8%, a 4 point increase over 2011. Middle Market pricing
increased 11%, largely due to a 14% increase in Middle Market workers’
compensation pricing in 2012. Policy count retention remained strong in Small
Commercial, at 83% in 2012, flat to 2011, while Middle Market policy count
retention for 2012 was down slightly to 77% compared with 78% in 2011.

Consumer Markets

Highlights:

  *2012 new auto and homeowners business premium rose 15% compared with 2011,
    due to growth in AARP Agency and AARP Direct
  *2012 combined ratio, excluding catastrophes and prior year development,
    improved to 90.0 in the fourth quarter of 2012 compared with 92.4 in the
    fourth quarter of 2011.
  *2012 combined ratio, excluding catastrophes and prior year development,
    improved to 90.8 compared with 91.9 in 2011
  *Auto and homeowners fourth quarter 2012 policy count retention improved 3
    points and 4 points, respectively, compared with the fourth quarter of
    2011; policy count retention improved 2 points to 85% and 86%,
    respectively, for the full year in 2012 compared with 2011

                                                             
Consumer
Markets
($ in millions)     Three Months Ended        For The Years Ended
                        Dec.     Dec.               Dec.      Dec.
                   31,     31,    Change   31,      31,      Change
                        2012     2011               2012      2011
Underwriting        $(21)   $88    NM       $93      $(48)    NM
gain (loss)
Combined ratio      102.3   90.5   (11.8)   97.4     101.3    3.9
Combined ratio,
excl.               90.0    92.4   2.4      90.8     91.9     1.1
catastrophes
and PYD
Written             $859    $858   —%       $3,630   $3,675   (1)%
premiums
                                                                        

Fourth Quarter 2012 Results

Consumer Markets reported an underwriting loss of $21 million in the fourth
quarter of 2012, principally due to catastrophe losses from Storm Sandy,
compared with an underwriting gain of $88 million in the fourth quarter of
2011. Fourth quarter 2012 underwriting results included current year
catastrophe losses of $126 million, before tax. Favorable prior year
development totaled $14 million, before tax, in the fourth quarter of 2012
compared with $17 million, before tax, in the fourth quarter of 2011.

Consumer Markets combined ratio, excluding catastrophes and prior year
development, was 90.0 in the fourth quarter of 2012, down from 92.4 in the
fourth quarter of 2011. The improvement reflected an approximately 8 point
improvement in the homeowners' combined ratio, excluding catastrophes and
prior year development, due primarily to earned pricing increases, lower
frequency of non-catastrophe weather claims and lower severity. The auto
combined ratio, excluding catastrophes and prior year development, improved 1
point driven by earned pricing increases.

Fourth quarter 2012 written premiums were flat compared with the fourth
quarter of 2011 while earned premiums declined 1%, as higher new business was
offset by the loss of renewal premium despite higher policy count retention
compared with the prior year period. New business written premium rose 7% to
$107 million due to strong production in AARP Agency. Auto new business
premiums were flat while homeowners increased 30%. Fourth quarter 2012 policy
count retention for auto and homeowners increased 3 and 4 points to 86% and
88%, respectively, from the fourth quarter of 2011.

2012 Full Year Results

Consumer Markets reported a 2012 underwriting gain of $93 million compared
with an underwriting loss of $48 million in 2011 as a result of more favorable
prior year development, lower catastrophe losses, and expanded current
accident year margins before catastrophes. 2012 underwriting results included
current year catastrophe losses of $381 million, before tax, compared with
2011 catastrophe losses of $425 million, before tax. Favorable prior year
development totaled $141 million, before tax, in 2012 compared with $75
million, before tax, in 2011, as a result of more favorable prior year
development in homeowners' and catastrophes losses.

Consumer Markets combined ratio, excluding catastrophes and prior year
development, was 90.8 in 2012, an improvement from 91.9 in 2011. The
improvement was driven by the homeowners' combined ratio, excluding
catastrophes and prior year development, decreasing from 80.9 in 2011 to 75.4
in 2012, primarily as a result of earned pricing increases and lower frequency
of non-catastrophe weather claims. This experience was partially offset by the
auto combined ratio, excluding catastrophes and prior year development, rising
from 96.9 in 2011 to 97.6 in 2012, largely due to higher physical damage
severity trends in 2012.

2012 written premiums were down 1% compared with 2011 and earned premiums
declined 3% as the loss of renewal business was not entirely offset by new
business. New business written premium rose 15% to $449 million due to strong
production in AARP Agency and AARP Direct. Auto new business premiums rose 11%
while homeowners increased 29%. Renewal business retention trends improved, as
2012 policy count retention for auto and homeowners each increased 2 points to
85% and 86%, respectively, from 2011.

P&C Other Operations

Highlights:

  *Fourth quarter 2012 underwriting loss was $15 million compared to a loss
    of $14 million in the fourth quarter of 2011
  *2012 underwriting loss was $100 million compared with a loss of $344
    million in 2011

Fourth Quarter 2012 Results

Fourth quarter 2012 underwriting loss was $15 million compared with $14
million in the fourth quarter of 2011. Fourth quarter 2012 results included
unfavorable prior year development of approximately $5 million, before tax,
while fourth quarter of 2011 included unfavorable prior year development of $6
million, before tax. Loss development in both quarters was primarily driven by
environmental reserve strengthening as a result of the quarterly actuarial
environmental reserve evaluation.

2012 Full Year Results

2012 underwriting loss for P&C Other Operations totaled $100 million compared
with $344 million in 2011. The principal reason for the improvement in 2012
financial results was lower unfavorable prior year development compared with
2011. Unfavorable prior year development in 2012 totaled $65 million, before
tax, compared with 2011 unfavorable prior year development of $317 million,
before tax, both periods principally due to unfavorable development on
asbestos liabilities. Unfavorable prior year development for asbestos totaled
$48 million in 2012 compared with $294 million in 2011.

GROUP BENEFITS

Highlights:

  *Fully insured premiums declined 8% and 7% in the fourth quarter of 2012
    and full year 2012, respectively, reflecting competition and the impact of
    the company's pricing initiatives on persistency
  *Fourth quarter 2012 core earnings were $39 million, up 129% from the
    fourth quarter of 2011, reflecting improved group long-term disability
    results that were slightly offset by less favorable group life mortality
    results compared with the fourth quarter of 2011
  *2012 core earnings were $101 million, up 17% from 2011, as a result of
    more favorable group long-term disability experience

                                                             
GROUP BENEFITS
($ in              Three Months Ended         For The Years Ended
millions)
                       Dec.     Dec.                Dec.      Dec.
                  31,     31,     Change   31,      31,      Change
                       2012     2011                2012      2011
Fully insured      $915    $995    (8%)     $3,745   $4,036   (7%)
premiums¹
Loss ratio         77.0%   80.5%   3.5      79.5%    79.5%    —
Core earnings      $39     $17     129%     $101     $86      17%

[1] Fully insured ongoing premiums excludes buyout premiums and premium
equivalents

Fourth Quarter 2012 Results

Group Benefits fourth quarter net income rose to $46 million compared with $15
million in the fourth quarter of 2011 due to realized capital gains and
improved core earnings. Core earnings in the fourth quarter of 2012 were $39
million, up 129% compared with $17 million in the fourth quarter of 2011,
reflecting improved group long-term disability results.

The loss ratio improved to 77.0% compared with 80.5% in the fourth quarter of
2011 due to continued improving group long-term disability claim trends.
Long-term disability claims incidence was stable compared with the prior year
quarter, but remains elevated when compared to historical levels.

In the fourth quarter of 2012, fully insured premium in Group Benefits were
$915 million, down 8% compared with $995 million in the fourth quarter of
2011.

2012 Full Year Results

2012 Group Benefits net income was $129 million, a 40% increase compared with
$92 million in 2011. 2012 Group Benefits core earnings were $101 million, up
17% compared with $86 million in 2011, reflecting an improvement in the
expense ratio that was partially offset by a reduction in net premiums earned.

The 2012 loss ratio was flat at 79.5% compared with 2011. Group Benefits loss
experience in 2012 reflects stable incidence trends during the year, although
elevated when compared to historical levels, and a continuation of the
slightly improving claim trends in group long-term disability that emerged in
mid-2012. Group life claims experience deteriorated modestly compared with
2011 but remained more favorable than group long-term disability.

2012 fully insured premium in Group Benefits declined 7% to $3,745 million
compared with 2011 due to lower persistency resulting from the company’s
targeted pricing initiatives as well as the competitive market environment.

MUTUAL FUNDS

Highlights:

  *Fourth quarter 2012 Mutual Funds core earnings were $16 million, down 20%
    from $20 million in the fourth quarter of 2011 due primarily to higher
    sales related expenses
  *2012 Mutual Funds net income was $71 million, down 28% from 2011, as a
    result of lower average assets under management
  *Retail net flows improved in 2012 to a negative $2.4 billion from a
    negative $5.6 billion in 2011, as a result of reduced redemptions
  *Assets under management in retail mutual funds totaled $43.1 billion at
    Dec. 31, 2012, up 7% from $40.2 billion at Dec. 31, 2011

                                           
MUTUAL
FUNDS
($ in           Three Months Ended            For The Years Ended
millions)
                    Dec. 31,   Dec.                 Dec.      Dec.
               2012      31,      Change   31,      31,      Change
                               2011                 2012      2011
Core            $16       $20      (20%)    $74      $98      (24%)
earnings
Average
assets          $87,884   $84,170  4%       $86,593  $93,012  (7%)
under
management
Assets
under           $87,647   $85,538  2%                       
management
                                                                     

Fourth Quarter 2012 Results

Fourth quarter 2012 net income for Mutual Funds totaled $15 million, down 21%
compared with $19 million in the fourth quarter of 2011. Mutual Funds fourth
quarter 2012 core earnings were $16 million, down 20% compared with $20
million in the fourth quarter of 2011. The reduction in net income and core
earnings was principally due to higher sales related expenses compared to the
fourth quarter of 2011.

2012 Full Year Results

2012 Mutual Funds net income was $71 million compared with $98 million in
2011. 2012 core earnings were $74 million, down 24% compared with $98 million
in 2011. The reduction in net income and core earnings was principally due to
lower fee income as a result of a 7% decrease in average assets under
management and higher sales related expenses compared with 2011.

Total assets under management were $87.6 billion at Dec. 31, 2012, up 2%
compared with $85.5 billion at Dec. 31, 2011, reflecting market appreciation
that was largely offset by negative net flows.

TALCOTT RESOLUTION

  *Fourth quarter 2012 core earnings of $211 million were up 7% compared with
    $197 million in the fourth quarter of 2011 due to lower expenses
  *2012 core earnings of $827 million declined 13% primarily due to the
    decrease in account values and lower tax benefits compared with 2011
  *Net outflows in the U.S. and International variable annuity blocks of
    business totaled $11.4 billion and $2.2 billion, respectively in 2012;
    fourth quarter 2012 net outflows were $2.8 billion and $0.6 billion,
    respectively

                                                             
Talcott
Resolution
($ in             Three Months Ended             For The Years Ended
millions)
                      Dec. 31,   Dec. 31,              Dec.     Dec.
                 2012      2011      Change   31,     31,    Change
                                                       2012     2011
Core earnings     $211      $197      7%       $827    $952   (13%)
Net income        $(148)    $37       NM       $271    $540   (50%)
Account           228,143   235,310   (3%)                  
values
U.S. VA full
surrender         10.6%     7.5%      3.0%     10.9%   9.3%   1.6%
rate^1
Japan VA full
surrender         3.7%      2.8%      0.9%     3.4%    2.6%   0.8%
rate^1

[1] Full surrender rate represents full contract liquidation; excludes partial
withdrawals

Talcott Resolution consists of the company's run-off annuity businesses,
including U.S. Annuity, International Annuity and Institutional, and other
legacy Wealth Management businesses which are in run-off, such as private
placement life insurance (PPLI), or have been sold, such as the company's
Individual Life and Retirement Plans businesses.

Fourth Quarter 2012 Results

Talcott Resolution fourth quarter 2012 net loss was $148 million compared with
net income of $37 million in the fourth quarter of 2011. Talcott Resolution
net income for the fourth quarter of 2012 included a DAC unlock benefit for
market performance and assumption changes of $42 million, after tax, compared
with a benefit of $5 million, after tax, in the fourth quarter of 2011. In
addition, fourth quarter 2012 net income includes restructuring and other
costs of $14 million, after tax; there were no restructuring charges in the
fourth quarter of 2011.

Fourth quarter 2012 net realized capital losses, after tax and deferred
acquisition costs (DAC), were $387 million compared with losses of $165
million in the fourth quarter of 2011, principally as a result of the
company's international variable annuity hedging programs due to the weakening
of the Japanese yen.

Talcott Resolution fourth quarter 2012 core earnings were $211 million, a 7%
increase compared with $197 million in the fourth quarter of 2011 principally
due to lower expenses.

During the fourth quarter of 2012, U.S. variable annuity account values
declined by 3% to $64.8 billion at Dec.31, 2012 from $66.7 billion at Sept.
30, 2012 due to net outflows of $2.8 billion during the quarter. International
variable annuity account values declined by 4% to $29.5 billion at Dec.31,
2012 from $30.6 billion at Sept. 30, 2012 due to net outflows of $0.6 billion
during the quarter. Annualized full surrender rate increased in the fourth
quarter of 2012 to 10.6% on U.S. variable annuities and 3.7% on Japan variable
annuities compared with 7.5% and 2.8%, respectively, in the fourth quarter of
2011.

2012 Full Year Results

Talcott Resolution 2012 net income was $271 million compared with net income
of $540 million in 2011. Talcott Resolution net income for 2012 included a DAC
unlock benefit for market performance and assumption changes of $31 million,
after tax, compared with a charge of $473 million, after tax, in 2011 and
restructuring and other costs of $44 million, after tax, compared with $0
million, in 2011. 2011 also included a tax benefit of $52 million related to
the resolution of a tax matter with the IRS for the computation of dividends
received deductions for years 1998, 2000 and 2001.

2012 net income also included net realized capital losses, after tax and DAC,
of $543 million compared with gains of $61 million in 2011, principally as a
result of losses in the company's international variable annuity hedging
programs and impairments and investment losses relating to the sales of the
Retirement Plans and Individual Life businesses. 2012 net realized capital
losses from annuity hedging programs and assumption changes were $742 million,
after tax and DAC, primarily due to the weakening of the Japanese yen and
favorable market performance, compared with gains of $155 million, after tax
and DAC, in 2011 driven by unfavorable market performance in that period.
Total net realized gains on investments not related to hedging were $199
million.

Talcott Resolution 2012 core earnings were $827 million, down 13% compared
with $952 million in 2011 due to lower account values, lower tax benefits
compared with 2011 and an $18 million, after tax, 2011 premium deficiency
reserve release on the Japan annuity block.

Account values for Talcott Resolution totaled $228.1 billion at Dec.31, 2012,
down 3% from $235.3 billion at Dec.31, 2011, reflecting $11.4 billion of net
outflows over the past twelve months in the U.S. variable annuity block,
largely offset by the impact of higher capital market levels. During 2012,
U.S. variable annuity account values declined by 6% to $64.8 billion at
Dec.31, 2012 from $68.8 billion at Dec.31, 2011. The annualized full
surrender rate on U.S. variable annuities rose to 10.9% in 2012 compared with
9.3% in 2011. International variable annuity account values declined 5% to
$29.5 billion at Dec.31, 2012 from $31.2 billion at Dec.31, 2011 due to net
outflows of $2.2 billion. The annualized full surrender rate on Japan variable
annuities also rose during the year from 2.6% in 2011 to 3.4% in 2012.

CORPORATE

Fourth Quarter 2012 Results

Net loss in Corporate totaled $39 million in the fourth quarter of 2012
compared with a net loss of $90 million in the fourth quarter of 2011.
Restructuring and other costs totaled $43 million, after tax, in the fourth
quarter of 2012 compared with $7 million in the fourth quarter of 2011.

Core losses in Corporate were $55 million in the fourth quarter of 2012, a 13%
decrease from core losses of $63 million in the fourth quarter of 2011 due to
higher investment income and lower interest expense as a result of the second
quarter 2012 debt refinancing. Interest expenses totaled $109 million, before
tax, in the quarter, a decrease of 12% from $124 million in the fourth quarter
of 2011.

2012 Full Year Results

2012 net loss in Corporate totaled $891 million, versus a net loss of $434
million in 2011. 2012 results included $587 million of losses due to the
extinguishment of debt and $78 million of restructuring and other costs, for a
total of $665 million, after tax, compared with restructuring and other costs
of $16 million, after tax, in 2011.

2012 core losses in Corporate of $313 million increased slightly compared with
core losses of $299 million in 2011 due to lower fee income and higher
operating costs in Woodbury Financial, which was sold in November 2012.
Interest expenses totaled $457 million, before tax, in 2012, a decrease of 10%
from 2011 due principally to the second quarter 2012 debt refinancing.

INVESTMENTS

Highlights:

  *Fourth quarter 2012 annualized investment yield of 4.3% compared with 4.0%
    in the fourth quarter of 2011
  *2012 annualized investment yield of 4.3% compared with 4.4% in 2011
  *Excluding limited partnerships and other alternative investments, fourth
    quarter 2012 annualized investment yields were 4.2% compared to 4.1% in
    the fourth quarter of 2011 and 4.3% for the full year 2012 compared to
    4.2% in 2011
  *Fourth quarter 2012 net impairment losses, which are not included in core
    earnings, were $172 million compared with $35 million in 2011 and included
    intent-to-sell impairments of $177 million

                                                             
INVESTMENTS
($ in millions)     Three Months Ended          For The Years Ended   
Amounts                 Dec.      Dec.                Dec.     Dec.
presented           31,      31,     Change   31,     31,     Change
before tax              2012      2011                2012     2011
Net investment
income,
excluding           $1,040   $998    4%       $4,237  $4,272  (1%)
trading
securities
Intent-to-sell
impairments
related to
sales of            $(177)   $—      NM       $(177)  $—      NM
Retirement
Plans and
Individual Life
businesses
Net impairment
gains (losses)
including           $5       $(35)   NM       $(158)  $(150)  (5  )%
mortgage loan
loss reserves^1
Annualized
investment          4.3%     4.0%    0.3      4.3%    4.4%    (0.1)
yield^2
Annualized
investment
yield,
excluding
limited             4.2%     4.1%    0.1      4.3%    4.2%    0.1
partnerships
and other
alternative
investments

[1] Excludes intent-to-sell impairments
[2] Yields calculated using annualized net investment income (excluding income
related to equity securities, trading) divided by the monthly average invested
assets at cost, amortized cost, or adjusted carrying value, as applicable,
excluding equity securities, trading, repurchase agreement and dollar roll
collateral, and consolidated variable interest entity non-controlling
interests.

Fourth Quarter 2012 Results

Fourth quarter 2012 net investment income, excluding trading securities
associated with the company's runoff Japan variable annuity block, was $1.0
billion, before tax, a 4% increase compared with the fourth quarter of 2011
due to higher returns on limited partnerships and other alternative
investments. Annualized investment yield, before tax, was 4.3% in the fourth
quarter of 2012 compared with 4.0% in the fourth quarter of 2011 due to higher
returns on limited partnerships and other alternative investments. Annualized
returns on limited partnerships and other alternative investments were
approximately 6.0% in the fourth quarter of 2012, compared with 0% in the
fourth quarter of 2011.

Annualized investment yield, excluding limited partnerships and other
alternative investments, was up slightly to 4.2% in the fourth quarter of 2012
compared to 4.1% in the fourth quarter of 2011 due to modest duration
extension of the portfolio and a slight increase in higher yielding asset
classes in the company's general account offset by reinvestment at lower
interest rates.

Total impairment losses for the fourth quarter 2012 include intent-to-sell
impairments of $177 million, before tax, related to the sales of the
Retirement Plans and Individual Life businesses. Net impairment losses and
changes to the mortgage loan loss reserves, excluding the intent-to-sell
impairments, resulted in a net gain of $5 million, before tax, compared with
net losses of $35 million, before tax, in the fourth quarter of 2011. The
fourth quarter 2012 net impairment losses and changes to the mortgage loan
loss reserve were driven by improvement in the underlying valuation and
performance of the collateral of a commercial mortgage loan.

2012 Full Year Results

2012 net investment income, excluding trading securities associated with the
company's runoff Japan variable annuity block, declined 1% to $4.2 billion,
before tax, in 2012 compared with 2011, primarily due to lower returns on
limited partnerships and other alternative investments. Annualized investment
yield, before tax, was 4.3% in 2012 compared with 4.4% in 2011 due to lower
returns on limited partnerships and other alternative investments as well as
continued low reinvestment rates. Annualized returns on limited partnerships
and other alternative investments were approximately 7.1% in 2012 compared
with 12.0% in 2011.

2012 annualized investment yield, excluding limited partnerships and other
alternative investments, was 4.3% in 2012 compared with 4.2% in 2011,
resulting from modest duration extension of the portfolio and a slight
increase in higher yielding asset classes in the company's general account
partially offset by reinvestment at lower interest rates.

The Company recorded impairment losses of $335 million, before tax and DAC,
including $177 million of intent-to-sell impairments related to the sales of
the Retirement Plans and Individual Life businesses. 2012 net impairment
losses and changes to the mortgage loan loss reserves, excluding the
intent-to-sell impairments, were $158 million, before tax, slightly higher
than impairment losses of $150 million, before tax, in 2011.

Total invested assets, excluding trading securities, were $105.3 billion as of
Dec.31, 2012 compared with $104.4 billion at Dec.31, 2011.

STOCKHOLDERS’ EQUITY

The Hartford’s stockholders’ equity was $22.8 billion on Dec. 31, 2012, a 6%
increase over stockholders’ equity of $21.5 billion on Dec. 31, 2011,
reflecting 2012 net income of $350 million, share and warrant share
repurchases totaling $449 million, common and preferred dividends of $217
million as well as an increase in AOCI from $1.3 billion at Dec. 31, 2011 to
$2.8 billion at Dec. 31, 2012.

Book value per diluted common share, which includes the dilutive effect of the
company’s common stock warrants and mandatory convertible preferred stock, was
$46.59 at Dec. 31, 2012, an increase of 5% compared with $44.31 at Dec. 31,
2011. Excluding AOCI, book value per diluted common share* declined 2% to
$40.79 on Dec. 31, 2012, compared with $41.73 on Dec. 31, 2011.

CONFERENCE CALL

The Hartford will discuss its fourth quarter and full year 2012 financial
results in a conference call on Tuesday, Feb. 5, 2013 at 9 a.m. EST. The call,
along with a slide presentation, can be accessed live or as a replay through
the investor relations section of The Hartford's website at
http://ir.thehartford.com. The slide presentation will be posted on The
Hartford’s website at approximately 8:30 a.m. EST on Feb. 5, 2013.

More detailed financial information can be found in The Hartford's Investor
Financial Supplement for Dec. 31, 2012 which is available at
http://thehartford.com.

ABOUT THE HARTFORD

With more than 200 years of expertise, The Hartford (NYSE:HIG) is a leader in
property and casualty insurance, group benefits and mutual funds. The company
is widely recognized for its excellence, sustainability practices, trust and
integrity. More information on the company and its financial performance is
available at www.thehartford.com.

HIG-F



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Three Months Ended Dec. 31,                                               
2012
                       Property   Group      Mutual   Talcott
                    &         Benefits  Funds   Resolution  Corporate  Consolidated
                       Casualty
Earned premiums      $2,479     $915       $—       $(6)         $—          $3,388
Fee income             —          16         152      873          25          1,066
Net investment
income (loss)
Securities
available-for-sale     301        101        (1)      613          26          1,040
and other
Equity securities
held for trading     —         —         —       2,676       —          2,676
[1]
Total net
investment income      301        101        (1)      3,289        26          3,716
(loss)
Other revenues         73         —          —        —            1           74
Net realized
capital gains        40        9         —       (642)       84         (509)
(losses)
Total revenues         2,893      1,041      151      3,514        136         7,735
Benefits, losses,
and loss               2,004      717        —        599          —           3,320
adjustment
expenses
Benefits, losses,
and loss
adjustment
expenses – returns     —          —          —        2,676        —           2,676
credited on
International
variable annuities
[1]
Amortization of
deferred policy        317        8          9        213          —           547
acquisition costs
Insurance
operating costs        493        256        118      337          48          1,252
and other expenses
Interest expense       —          —          —        —            109         109
Restructuring and    —         —         1       21          67         89
other costs
Total benefits and     2,814      981        128      3,846        224         7,993
expenses
Income (loss) from
continuing             79         60         23       (332)        (88)        (258)
operations before
income taxes
Income tax expense   (2)       14        8       (184)       (49)       (213)
(benefit)
Income (loss) from
continuing             81         46         15       (148)        (39)        (45)
operations
Add: Loss from
discontinued         (1)       —         —       —           —          (1)
operations, after
tax
Net income (loss)      80         46         15       (148)        (39)        (46)
Less: DAC unlock
impact on net          —          —          —        42           —           42
income (loss),
after tax
Less:
Restructuring and      —          —          (1)      (14)         (43)        (58)
other costs, after
tax
Less: Income
(loss) from
discontinued           (1)        —          —        —            —           (1)
operations, after
tax
Less: Net realized
gains (losses),
after tax and DAC,   27        7         —       (387)       59         (294)
excluded from core
earnings
Core earnings          $54        $39        $16      $211         $(55)       $265
(losses)

[1] Includes dividend income and mark-to-market effects of trading securities
supporting the international variable annuity business, which are classified
in net investment income with corresponding amounts credited to policyholders
within interest credited


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Three Months Ended Dec. 31, 2011                                              
                           Property   Group      Mutual   Talcott
                      &         Benefits  Funds   Resolution  Corporate  Consolidated
                           Casualty
Earned premiums        $2,481     $995       $—       $30          $—          $3,506
Fee income                 —          16         143      923          48          1,130
Net investment
income (loss)
Securities
available-for-sale         292        99         (1)      615          (7)         998
and other
Equity securities
held for trading       —         —         —       325         —          325
[1]
Total net
investment income          292        99         (1)      940          (7)         1,323
(loss)
Other revenues             65         —          —        —            —           65
Net realized
capital gains          15        (5)       —       (356)       (40)       (386)
(losses)
Total revenues             2,853      1,105      142      1,537        1           5,638
Benefits, losses,
and loss                   1,888      814        —        762          1           3,465
adjustment
expenses
Benefits, losses,
and loss
adjustment
expenses – returns         —          —          —        324          —           324
credited on
International
variable annuities
[1]
Amortization of
deferred policy            313        8          11       65           —           397
acquisition costs
Insurance
operating costs            441        270        100      386          9           1,206
and other expenses
Interest expense           —          —          —        —            124         124
Goodwill                   30         —          —        —            —           30
impairment
Restructuring and      —         —         —       —           11         11
other costs
Total benefits and         2,672      1,092      111      1,537        145         5,557
expenses
Income (loss) from
continuing                 181        13         31       —            (144)       81
operations before
income taxes
Income tax expense     39        (2)       12      (37)        (48)       (36)
(benefit)
Income (loss) from
continuing                 142        15         19       37           (96)        117
operations
Add: Income (loss)
from discontinued      (5)       —         —       —           6          1
operations, after
tax
Net income (loss)          137        15         19       37           (90)        118
Less: DAC unlock
impact on net              —          —          —        5            —           5
income (loss),
after tax
Less:
Restructuring and          —          —          —        —            (7)         (7)
other costs, after
tax
Less: Income
(loss) from
discontinued               (5)        —          —        —            6           1
operations, after
tax
Less: Net realized
gains (losses),
after tax and DAC,     12        (2)       (1)     (165)       (26)       (182)
excluded from core
earnings
Core earnings              $130       $17        $20      $197         $(63)       $301
(losses)
                                                                                   
                                                                                   

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Twelve Months Ended Dec. 31, 2012                                             
                           Property   Group      Mutual   Talcott
                      &         Benefits  Funds   Resolution  Corporate  Consolidated
                           Casualty
Earned premiums        $9,893     $3,748     $—       $(10)        $—          $13,631
Fee income                 —          62         599      3,604        167         4,432
Net investment
income (loss)
Securities
available-for-sale         1,232      405        (3)      2,572        31          4,237
and other
Equity securities
held for trading       —         —         —       4,565       —          4,565
[1]
Total net
investment income          1,232      405        (3)      7,137        31          8,802
(loss)
Other revenues             257        —          —        —            1           258
Net realized
capital gains          96        40        —       (972)       125        (711)
(losses)
Total revenues             11,478     4,255      596      9,759        324         26,412
Benefits, losses,
and loss                   7,270      3,029      —        2,951        —           13,250
adjustment
expenses
Benefits, losses,
and loss
adjustment
expenses – returns         —          —          —        4,564        —           4,564
credited on
International
variable annuities
[1]
Amortization of
deferred policy            1,259      33         35       661          —           1,988
acquisition costs
Insurance
operating costs            1,930      1,032      449      1,383        244         5,038
and other expenses
Loss on
extinguishment of          —          —          —        —            910         910
debt
Interest expense           —          —          —        —            457         457
Restructuring and      6         1         3       68          121        199
other costs
Total benefits and         10,465     4,095      487      9,627        1,732       26,406
expenses
Income (loss) from
continuing                 1,013      160        109      132          (1,408)     6
operations before
income taxes
Income tax expense     238       31        38      (139)       (517)      (349)
(benefit)
Income (loss) from
continuing                 775        129        71       271          (891)       355
operations
Add: Loss from
discontinued           (5)       —         —       —           —          (5)
operations, after
tax
Net income (loss)          770        129        71       271          (891)       350
Less: DAC unlock
impact on net              —          —          —        31           —           31
income (loss)
after tax
Less:
Restructuring and          (4)        —          (3)      (44)         (78)        (129)
other costs, after
tax
Less: Income
(loss) from
discontinued               (5)        —          —        —            —           (5)
operations, after
tax
Less: Loss on
extinguishment of          —          —          —        —            (587)       (587)
debt, after tax
Less: Net realized
gains (losses),
after tax and DAC,     65        28        —       (543)       87         (363)
excluded from core
earnings
Core earnings              $714       $101       $74      $827         $(313)      $1,403
(losses)
                                                                                   
                                                                                   

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Twelve Months Ended Dec. 31, 2011                                             
                           Property   Group      Mutual   Talcott
                      &         Benefits  Funds   Resolution  Corporate  Consolidated
                           Casualty
Earned premiums        $9,874     $4,085     $—       $129         $—          $14,088
Fee income                 —          62         649      3,830        209         4,750
Net investment
income (loss)
Securities
available-for-sale         1,248      411        (3)      2,593        23          4,272
and other
Equity securities
held for trading       —         —         —       (1,359)     —          (1,359)
[1]
Total net
investment income          1,248      411        (3)      1,234        23          2,913
(loss)
Other revenues             253        —          —        —            —           253
Net realized
capital gains          (62)      (3)       1       15          (96)       (145)
(losses)
Total revenues             11,313     4,555      647      5,208        136         21,859
Benefits, losses,
and loss                   7,787      3,306      —        3,535        (3)         14,625
adjustment
expenses
Benefits, losses,
and loss
adjustment
expenses – returns         —          —          —        (1,359)      —           (1,359)
credited on
International
variable annuities
[1]
Amortization of
deferred policy            1,254      35         47       1,108        —           2,444
acquisition costs
Insurance
operating costs            2,035      1,121      448      1,504        177         5,285
and other expenses
Loss on
extinguishment of          —          —          —        —            —           —
debt
Interest expense           —          —          —        —            508         508
Goodwill                   30         —          —        —            —           30
impairment
Restructuring and      —         —         —       —           25         25
other costs
Total benefits and         11,106     4,462      495      4,788        707         21,558
expenses
Income (loss) from
continuing                 207        93         152      420          (571)       301
operations before
income taxes
Income tax expense     (59)      1         54      (120)       (201)      (325)
(benefit)
Income (loss) from
continuing                 266        92         98       540          (370)       626
operations
Add: Income (loss)
from discontinued      150       —         —       —           (64)       86
operations, after
tax
Net income (loss)          416        92         98       540          (434)       712
Less: DAC unlock
impact on net              —          —          —        (473)        —           (473)
income (loss)
after tax
Less:
Restructuring and          —          —          —        —            (16)        (16)
other costs, after
tax
Less: Income
(loss) from
discontinued               150        —          —        —            (64)        86
operations, after
tax
Less: Net realized
gains (losses),
after tax and DAC,     (13)      6         —       61          (55)       (1)
excluded from core
earnings
Core earnings              $279       $86        $98      $952         $(299)      $1,116
(losses)
                                                                                   
                                                                                   

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
RESULTS BY SEGMENT
($ in millions, except per share data)
                                                              
                        Three Months Ended           For The Years Ended
                        Dec. 31,   Dec.               Dec.     Dec.
                        2012      31,      Change  31,     31,     Change
                                   2011               2012     2011
Property &
Casualty                26         29        (10)%    511      389      31%
Commercial
Consumer                11         85        (87)%    159      9        NM
Markets
P&C Other           17        16       6%      44      (119)   NM
Operations
Total P&C core
earnings                54         130       (58)%    714      279      156%
(losses)
Group Benefits          39         17        129%     101      86       17%
core earnings
Mutual Funds            16         20        (20)%    74       98       (24)%
core earnings
Talcott
Resolution core         211        197       7%       827      952      (13)%
earnings
Corporate core      (55)      (63)     (13)%   (313)   (299)   5%
losses
CONSOLIDATED            265        301       (12)%    1,403    1,116    26%
Core earnings
Add: DAC unlock
impact on net           42         5         NM       31       (473)    NM
income (loss)
after tax
Add:
Restructuring
and other               (58)       (7)       NM       (129)    (16)     NM
costs, after
tax
Add: Income
(loss) from
discontinued            (1)        1         NM       (5)      86       NM
operations
after tax
Add: Loss on
extinguishment          —          —         —%       (587)    —        —%
of debt, after
tax
Add: Net
realized
capital gains
(losses), after     (294)     (182)    62%     (363)   (1)     NM
tax and DAC,
excluded from
core earnings
[1]
Net income          (46)      118      NM      350     712     (51)%
(loss)
PER SHARE DATA
Diluted
earnings
(losses) per
common share
Core earnings
available to
common
shareholders            $0.54      $0.61     (11)%    $2.88    $2.24    29%
and assumed
conversion of
preferred
shares
Less:
Difference
arising from
shares used for         0.01       —         —%       —        —        —%
the denominator
between net
loss and core
earnings
Add: DAC unlock
impact on net           0.09       0.01      NM       0.07     (0.99)   NM
income (loss)
after tax
Add:
Restructuring
and other               (0.12)     (0.01)    NM       (0.28)   (0.03)   NM
costs, after
tax
Add: Income
(loss) from             —          —         —        (0.01)   0.18     NM
discontinued
operations
Add: Loss on
extinguishment          —          —         —%       (1.26)   —        —%
of debt, after
tax
Add: Net
realized
capital gains
(losses), after         (0.63)    (0.39)    62%      (0.78)   (0.01)   NM
tax and DAC,
excluded from
core earnings
[1]
Less: Assumed
conversion of       —         (0.01)   (100)%  (0.04)  (0.01)  NM
preferred
dividends
Net income
(loss)
available to        (0.13)    0.23     NM      0.66    1.40    (53)%
common
shareholders
Talcott
Resolution DAC
unlock impact           42         5         NM       31       (473)    NM
on net income
(loss)

[1] NM: 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.”

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Hartford uses non-GAAP financial measures in this press release to assist
investors in analyzing the company's operating performance for the periods
presented herein. Because The Hartford's calculation of these measures may
differ from similar measures used by other companies, investors should be
careful when comparing The Hartford's non-GAAP financial measures to those of
other companies. Definitions and calculations of other financial measures used
in this press release can be found below and in The Hartford's Investor
Financial Supplement for the fourth quarter of 2012, which is available on The
Hartford's website, http://ir.thehartford.com.

Book value per diluted common share excluding accumulated other comprehensive
income ("AOCI”): Book value per diluted common share excluding AOCI is a
non-GAAP financial measure based on a GAAP financial measure. It is calculated
by dividing (a) common stockholders' equity excluding AOCI, after tax, by (b)
common shares outstanding and dilutive potential common shares. The Hartford
provides book value per diluted common share excluding AOCI to enable
investors to analyze the company’s stockholders’ equity excluding the effect
of changes in the value of the company’s investment portfolio and other assets
due to interest rates, currency and other factors. The Hartford believes book
value per diluted common share excluding AOCI is useful to investors because
it eliminates the effect of items that can fluctuate significantly from period
to period, primarily based on changes in market value. Stockholders’ equity
per diluted common share is the most directly comparable GAAP measure. A
reconciliation of stockholders’ equity per diluted common share to book value
per diluted common share excluding AOCI as of Dec. 31, 2012 and Dec. 31, 2011,
is set forth below.

                                             
                                                  As of
                                                  Dec. 31,  Dec. 31,  Change
                                                  2012       2011
Stockholders’ equity per diluted common           $46.59    $44.31    5%
share, including AOCI
Less: Per share impact of AOCI                5.80      2.58      125%
Book value per diluted common share,          $40.79    $41.73    (2)%
excluding AOCI
                                                                        

Combined ratio before catastrophes and prior year development: Combined ratio
before catastrophes and prior year development is a non-GAAP financial
measure. Combined ratio is the most directly comparable GAAP measure. The
combined ratio is the sum of the loss and loss adjustment expense ratio, the
expense ratio and the policyholder dividend ratio. This ratio measures the
cost of losses and expenses for every $100 of earned premiums. A combined
ratio below 100% demonstrates a positive underwriting result. A combined ratio
above 100% indicates a negative underwriting result*. The combined ratio
before catastrophes and prior year development represents the combined ratio
for the current accident year, excluding the impact of catastrophes and prior
year development. The company believes this ratio is an important measure of
the trend in profitability since it removes the impact of volatile and
unpredictable catastrophe losses and prior accident year loss and loss
adjustment expense reserve. A reconciliation of the combined ratio to the
combined ratio before catastrophes and prior year development is provided in
the table below.

                                                     
                                     Three Months Ended    For The Years Ended
                                     Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                     2012       2011       2012       2011
P&C Commercial                                                     
Combined ratio                       112.3      109.0      102.9      104.6
Catastrophe ratio                    13.4       1.3        4.6        5.4
Non-catastrophe prior year       1.1       6.7       1.7       1.8
development
Combined ratio before PYD &          97.8       101.1      96.6       97.3
catastrophes
                                                                      
                                                                      
Consumer Markets
Combined ratio                       102.3      90.5       97.4       101.3
Catastrophe ratio                    13.8       (0.4)      9.7        12.0
Non-catastrophe prior year       (1.5)     (1.5)     (3.1)     (2.7)
development
Combined ratio before PYD &          90.0       92.4       90.8       91.9
catastrophes
                                                                      

Core Earnings: The Hartford uses the non-GAAP financial measure core earnings
as an important measure of the Company's operating performance. The Hartford
believes that core earnings provides investors with a measure of the
performance of the company'soperating insurance and financial services
businesses before the net effect of certain realized capital gains and losses,
discontinued operations, DAC unlock, restructuring and other expensesand loss
from the extinguishment of debt,which better enables investors to
seefundamental trends in the operating businesses.In the fourth quarter of
2012, the company changed the definition of core earnings to also exclude
additional items that mayobscuretrends in our businesses, including
restructuring charges and the impact of Unlocks to deferred policy acquisition
costs (“DAC”), sales inducement assets ("SIA"), unearned revenue reserve
("URR") and death and other insurance benefit reserve balances. Some realized
capital gains and losses are primarily driven by investment decisions and
external economic developments, the nature and timing of which are unrelated
to the insurance and underwriting aspects of our business.

Accordingly, core earnings excludes the effect of all realized gains and
losses (after tax and the effects of DAC) that tend to be highly variable from
period to period based on capital market conditions. The Hartford believes,
however, that some realized capital gains and losses are integrally related to
our insurance operations, so core earnings includes net realized gains and
losses such as net periodic settlements on credit derivatives and net periodic
settlements on the Japan fixed annuity cross-currency swap. These net realized
gains and losses are directly related to an offsetting item included in the
income statement such as net investment income.Net income is the most
directly comparable GAAP measure. Core earnings should not be considered as a
substitute for net income and does not reflect the overall profitability of
the Company's business. Therefore, The Hartford believes that it is useful for
investors to evaluate both net income and core earnings when reviewing the
company's performance. A reconciliation of core earnings to net income as of
Dec. 31, 2012 and Dec. 31, 2011, is included in this press release. A
reconciliation of core earnings to net income for individual reporting
segments can be found in The Hartford's Investor Financial Supplement for the
fourth quarter of 2012.

Core earnings available to shareholders per diluted share: Core earnings
available to common shareholders per diluted share is calculated based on the
non-GAAP financial measure core earnings. It is calculated by dividing (a)
core earnings, by (b) diluted shares outstanding. The Hartford believes that
the measure core earnings per diluted share provides investors with a valuable
measure of the company's operating performance for the same reasons applicable
to its underlying measure, core earnings. Net income per diluted common share
is the most directly comparable GAAP measure. Core earnings available to
shareholders per diluted share should not be considered as a substitute for
net income per diluted share and does not reflect the overall profitability of
the company's business.

Therefore, The Hartford believes that it is useful for investors to evaluate
both net income per diluted share and core earnings available to shareholders
per share when reviewing the company's performance. A reconciliation of core
earnings available to common shareholders per diluted share to net income per
diluted common share as of Dec. 31, 2012 and Dec. 31, 2011 is included in this
press release under the heading “The Hartford Financial Services Group, Inc.
Results By Segment.”

Underwriting gain (loss): The Hartford's management evaluates profitability of
the P&C Commercial and Consumer Markets segments primarily on the basis of
underwriting gain or loss. Underwriting gain (loss) is a before-tax measure
that represents earned premiums less incurred losses, loss adjustment expenses
and underwriting expenses. Net income (loss) is the most directly comparable
GAAP measure. Underwriting gain (loss) is influenced significantly by earned
premium growth and the adequacy of The Hartford's pricing. Underwriting
profitability over time is also greatly influenced by The Hartford's
underwriting discipline, as management strives to manage exposure to loss
through favorable risk selection and diversification, effective management of
claims, use of reinsurance and its ability to manage its expenses. The
Hartford believes that the measure underwriting gain (loss) provides investors
with a valuable measure of profitability, before tax, derived from
underwriting activities, which are managed separately from the company's
investing activities. A reconciliation of underwriting results to net income
as of Dec. 31, 2012 and Dec. 31, 2011, is set forth below.

                                                     
                                     Three Months Ended   For The Years Ended
                                     Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                     2012       2011       2012       2011
P&C Commercial                                                     
Net income                           $45        $32        $547       $526
Less: Income (loss) from
discontinued operations,             (1)        (5)        (5)        150
after tax
Less: Net realized capital           30         11         67         (50)
gains (losses)
Add: Income tax expense              (9)        (13)       159        37
Less: Net servicing income           4          7          17         13
Less: Goodwill impairment            —          (30)       —          (30)
Less: Other expenses                 (32)       (35)       (115)      (151)
Less: Net investment income      228       212       924       910
Underwriting gain (loss)             $(193)     $(141)     $(182)     $(279)
                                                                      
Consumer Markets
Net income                           $14        $87        $166       $7
Less: Net realized capital           5          1          12         (11)
gains (losses)
Add: Income tax expense              1          41         65         (22)
Less: Net servicing income           11         6          23         19
Less: Other expenses                 (17)       (9)        (56)       (162)
Less: Net investment income      37        42        159       187
Underwriting gain (loss)             $(21)      $88        $93        $(48)
                                                                      

SAFE HARBOR STATEMENT

Some of the statements in this release should be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects”
and similar references to the future. Examples of forward-looking statements
include, but are not limited to, statements the company makes regarding future
results of operations. The Hartford cautions investors that these
forward-looking statements are not guarantees of future performance, and
actual results may differ materially. Investors should consider the important
risks and uncertainties that may cause actual results to differ. These
important risks and uncertainties include: challenges related to the company's
current operating environment, including continuing uncertainty about the
strength and speed of the recovery in the United States and other key
economies and the impact of governmental stimulus and austerity initiatives,
sovereign credit concerns, a sustained low interest rate environment, higher
tax rates and other potentially adverse developments on financial, commodity
and credit markets and consumer and business spending and investment and the
effect of these events on our returns in investment portfolios and our hedging
costs associated with our variable annuities business; the risks, challenges
and uncertainties associated with our strategic realignment to focus on our
property and casualty, group benefits and mutual fund businesses, place our
Individual Annuity business into run-off and sell the Individual Life,
Woodbury Financial Services and the Retirement Plans businesses, including
potential constraints on our ability to deploy capital as and when planned;
execution risk related to the continued repositioning of our investment
portfolios and refinement of our hedge program for our run-off annuity block;
market risks associated with our business, including changes in interest
rates, credit spreads, equity prices, market volatility and foreign exchange
rates, and implied volatility levels, as well as continuing uncertainty in key
sectors such as the global real estate market; the possibility of unfavorable
loss development including with respect to long-tailed exposures; the
possibility of a pandemic, earthquake, or other natural or man-made disaster
that may adversely affect our businesses; weather and other natural physical
events, including the severity and frequency of storms, hail, winter storms,
hurricanes and tropical storms, as well as climate change and its potential
impact on weather patterns; risk associated with the use analytical models in
making decisions in key areas such as underwriting, capital, reserving, and
catastrophe risk management; the uncertain effects of emerging claim and
coverage issues; the Company's ability to effectively price its property and
casualty policies, including its ability to obtain regulatory consents to
pricing actions or to non-renewal or withdrawal of certain product lines; the
impact on our statutory capital of various factors, including many that are
outside the Company's control, which can in turn affect our credit and
financial strength ratings, cost of capital, regulatory compliance and other
aspects of our business and results; risks to our business, financial
position, prospects and results associated with negative rating actions or
downgrades in the Company's financial strength and credit ratings or negative
rating actions or downgrades relating to our investments; the impact on our
investment portfolio if our investment portfolio is concentrated in any
particular segment of the economy; volatility in our earnings and potential
material changes to our results resulting from our adjustment of our risk
management program to emphasize protection of economic value; the potential
for differing interpretations of the methodologies, estimations and
assumptions that underlie the valuation of the Company's financial instruments
that could result in changes to investment valuations; the subjective
determinations that underlie the Company's evaluation of other-than-temporary
impairments on available-for-sale securities; losses due to nonperformance or
defaults by others; the potential for further acceleration of deferred policy
acquisition cost amortization; the potential for further impairments of our
goodwill or the potential for changes in valuation allowances against deferred
tax assets; the possible occurrence of terrorist attacks and the Company's
ability to contain its exposure, including the effect of the absence or
insufficiency of applicable terrorism legislation on coverage; the difficulty
in predicting the Company's potential exposure for asbestos and environmental
claims; the response of reinsurance companies under reinsurance contracts and
the availability, pricing and adequacy of reinsurance to protect the Company
against losses; actions by our competitors, many of which are larger or have
greater financial resources than we do; the Company's ability to distribute
its products through distribution channels, both current and future; the cost
and other effects of increased regulation as a result of the enactment of the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which,
among other effects, vests a Financial Services Oversight Council with the
power to designate “systemically important” institutions, will require central
clearing of, and/or impose new margin and capital requirements on, derivatives
transactions, and created a new “Federal Insurance Office” within the U.S.
Department of the Treasury; unfavorable judicial or legislative developments;
the potential effect of other domestic and foreign regulatory developments,
including those that could adversely impact the demand for the Company's
products, operating costs and required capital levels; regulatory limitations
on the ability of the Company and certain of its subsidiaries to declare and
pay dividends; the Company's ability to maintain the availability of its
systems and safeguard the security of its data in the event of a disaster,
cyber or other information security incident or other unanticipated event; the
risk that our framework for managing operational risks may not be effective in
mitigating material risk and loss to the Company; the potential for
difficulties arising from outsourcing relationships; the impact of changes in
federal or state tax laws; regulatory requirements that could delay, deter or
prevent a takeover attempt that shareholders might consider in their best
interests; the impact of potential changes in accounting principles and
related financial reporting requirements; the Company's ability to protect its
intellectual property and defend against claims of infringement; and other
factors described in such forward-looking statements and other factors
described in The Hartford's 2011 Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and Sept.
30, 2012, and other filings The Hartford makes with the Securities and
Exchange Commission.

Any forward-looking statement made by the company in this release speaks only
as of the date of this release. Factors or events that could cause the
company's actual results to differ may emerge from time to time, and it is not
possible for the company to predict all of them. The company undertakes no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future developments or otherwise.

Contact:

The Hartford
Media Contacts
Shannon Lapierre, 860-547-5624
shannon.lapierre@thehartford.com
or
Thomas Hambrick, 860-547-9746
thomas.hambrick@thehartford.com
or
Investor Contacts
Sabra Purtill, CFA, 860-547-8691
sabra.purtill@thehartford.com
or
Sean Rourke, 860-547-5688
sean.rourke@thehartford.com
 
Press spacebar to pause and continue. Press esc to stop.