Cover Document - USD ($) $ in Billions	12 Months Ended
Cover Document - USD ($) $ in Billions	Dec. 31, 2023	Feb. 22, 2024	Jun. 30, 2023
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-13958
Entity Registrant Name	THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3317783
Entity Address, Address Line One	One Hartford Plaza
Entity Address, City or Town	Hartford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06155
City Area Code	860
Local Phone Number	547-5000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 22
Entity Common Stock, Shares Outstanding		297,350,060
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for its 2024 annual meeting of stockholders are incorporated by reference in Part III of this Form 10-K.
Entity Central Index Key	0000874766
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, par value $0.01 per share
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HIG
Security Exchange Name	NYSE
6.10% Notes due October 1, 2041
Title of 12(b) Security	6.10% Senior Notes due October 1, 2041
Trading Symbol	HIG 41
Security Exchange Name	NYSE
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share
Title of 12(b) Security	Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share
Trading Symbol	HIG PR G
Security Exchange Name	NYSE

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Location	Hartford, Connecticut

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues
Earned premiums									$ 21,026	$ 19,390	$ 17,999
Fee income									1,300	1,349	1,488
Net investment income									2,305	2,177	2,313
Net realized gains (losses)									(188)	(627)	509
Other revenues									84	73	81
Total revenues	$ 6,400	$ 6,168	$ 6,049	$ 5,910	$ 6,016	$ 5,580	$ 5,373	$ 5,393	24,527	22,362	22,390
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses									14,238	13,138	12,720
Amortization of deferred policy acquisition costs ("DAC")									2,044	1,824	1,668
Insurance operating costs and other expenses									4,881	4,841	4,791
Interest expense									199	213	234
Amortization of other intangible assets									71	71	71
Restructuring and other costs									6	13	1
Total benefits, losses and expenses	5,450	5,355	5,377	5,257	5,281	5,148	4,819	4,852	21,439	20,100	19,485
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									3,088	2,262	2,905
Income tax expense									584	443	534
Net income	771	651	547	535	592	340	444	443	2,504	1,819	2,371
Less: Preferred stock dividends	5	6	5	5	5	6	5	5	21	21	21
Net income (loss) available to common stockholders	$ 766	$ 645	$ 542	$ 530	$ 587	$ 334	$ 439	$ 438	$ 2,483	$ 1,798	$ 2,350
Earnings per common share
Net income (loss) Basic	$ 2.55	$ 2.12	$ 1.75	$ 1.69	$ 1.85	$ 1.04	$ 1.34	$ 1.32	$ 8.09	$ 5.54	$ 6.73
Net income (loss) Diluted	$ 2.51	$ 2.09	$ 1.73	$ 1.66	$ 1.82	$ 1.02	$ 1.32	$ 1.30	$ 7.97	$ 5.46	$ 6.64

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 2,504	$ 1,819	$ 2,371
Other comprehensive income (loss) (“OCI”):
Change in net unrealized gain (loss) on fixed maturities, available-for-sale ("AFS")	1,112	(4,225)	(1,224)
Change in unrealized losses on fixed maturities for which an allowance for credit losses ("ACL") has been recorded	(1)	(5)	0
Change in net gain on cash flow hedging instruments	(19)	34	(6)
Change in foreign currency translation adjustments	6	(10)	(2)
Change in liability for future policy benefits adjustments	(10)	94	27
Change in pension and other postretirement plan adjustments	(96)	143	228
OCI, net of tax	992	(3,969)	(977)
Comprehensive income (loss)	$ 3,496	$ (2,150)	$ 1,394

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Investments:
Fixed maturities, AFS, at fair value (amortized cost of $41,726 and $39,533, and ACL of $21 and $12)	$ 39,818	$ 36,231
Fixed maturities, at fair value using the fair value option ("FVO")	327	333
Equity securities, at fair value	864	1,801
Financing Receivable, after Allowance for Credit Loss	6,087	6,000
Limited partnerships and other alternative investments	4,785	4,177
Other investments	191	159
Short-term investments	3,850	3,859
Total investments	55,922	52,560
Cash	126	229
Restricted Cash	63	115
Accrued Investment Income Receivable	404	372
Premiums receivable and agents' balances (net of ACL of $109 and $109)	5,607	4,949
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $103 and $105)	7,104	6,964
Deferred policy acquisition costs	1,113	998
Deferred income taxes, net	1,173	1,437
Goodwill	1,911	1,911
Property and equipment, net	896	927
Other intangible assets, net	707	778
Other assets	1,754	1,768
Total assets	76,780	73,008
Liabilities
Unpaid losses and loss adjustment expenses	42,318	41,243
Liability for Future Policy Benefit, before Reinsurance	484	502
Policyholder Account Balance	638	658
Unearned premiums	8,599	7,815
Long-term debt	4,362	4,357
Other liabilities	5,052	4,757
Total liabilities	61,453	59,332
Stockholders’ Equity
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at December 31, 2023 and December 31, 2022, aggregate liquidation preference of $345	334	334
Common Stock, Value, Issued	3	3
Additional paid-in capital	648	1,895
Retained earnings	19,007	17,058
Treasury Stock, Value	(1,816)	(1,773)
Accumulated other comprehensive loss, net of tax	(2,849)	(3,841)
Total stockholders' equity	15,327	13,676
Total liabilities and stockholders’ equity	$ 76,780	$ 73,008

Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Fixed maturities, AFS, at fair value (amortized cost of $41,726 and $39,533, and ACL of $21 and $12)	$ 41,726	$ 39,533
Debt Securities, Available-for-sale, Allowance for Credit Loss	(21)	(12)
Premiums receivable and agents' balances (net of ACL of $109 and $109)	109	109
Reinsurance Recoverable, Allowance for Credit Loss	$ 103	$ 105
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, 13,800 shares issued	13,800	13,800
Preferred Stock, Liquidation Preference, Value	$ 345	$ 345
Common stock, par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	1,500,000,000	1,500,000,000
Common Stock, Shares, Issued	326,960,228	344,960,228
Treasury stock, at cost — 28,488,130 and 29,848,980 shares	28,488,130	29,848,980
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Loss	$ 51	$ 36

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Preferred Stock, end of period	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss) ("AOCI"), net of tax	Treasury Stock, Common	Treasury Stock, Common Stock Compensation Plan
Beginning balance at Dec. 31, 2020			$ 4	$ 4,322	$ 13,918	$ 1,170	$ (1,192)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under incentive and stock compensation plans and other				(90)
Stock-based compensation plans expense				116
Treasury Stock, Retired, Cost Method, Amount			0	(1,039)			(1,039)
Net income	$ 2,371				2,371
Dividends declared on preferred stock					(21)
Dividends declared on common stock					(498)
Treasury stock acquired	(1,700)						(1,702)
Stock Issued During Period, Value, Treasury Stock Reissued								$ 146
Net shares acquired related to employee incentive and stock compensation plans							(31)
Other Comprehensive Income (Loss), Net of Tax						(977)
Ending balance at Dec. 31, 2021	$ 17,805	$ 334	$ 4	3,309	15,770	128	(1,740)
Preferred Stock, Shares Outstanding, Ending Balance at Dec. 31, 2021		13,800
Common Shares Outstanding, beginning of period at Dec. 31, 2020			358,489,000
Common Shares Outstanding (in thousands)
Treasury stock acquired	(25,900,000)		(25,878,000)
Issuance of shares under incentive and stock compensation plans and other			2,902,000
Return of shares under incentive and stock compensation plans to treasury stock			(587,000)
Common Shares Outstanding, end of period at Dec. 31, 2021			334,926,000
Common Shares Outstanding (in thousands)
Cash dividends declared per common share	$ 1.44
Preferred Stock, Dividends Per Share, Declared	$ 1,500
Issuance of shares under incentive and stock compensation plans and other				(154)
Stock-based compensation plans expense				131
Treasury Stock, Retired, Cost Method, Amount			$ (1)	(1,391)			(1,392)
Net income	$ 1,819				1,819
Dividends declared on preferred stock					(21)
Dividends declared on common stock					(510)
Treasury stock acquired	(1,600)						(1,550)
Stock Issued During Period, Value, Treasury Stock Reissued								183
Net shares acquired related to employee incentive and stock compensation plans							(58)
Other Comprehensive Income (Loss), Net of Tax						(3,969)
Ending balance at Dec. 31, 2022	$ 13,676	$ 334	$ 3	1,895	17,058	(3,841)	(1,773)
Preferred Stock, Shares Outstanding, Ending Balance at Dec. 31, 2022		13,800
Common Shares Outstanding (in thousands)
Treasury stock acquired	(22,300,000)		(22,273,000)
Issuance of shares under incentive and stock compensation plans and other			3,285,000
Return of shares under incentive and stock compensation plans to treasury stock			(827,000)
Common Shares Outstanding, end of period at Dec. 31, 2022			315,111,000
Common Shares Outstanding (in thousands)
Cash dividends declared per common share	$ 1.58
Preferred Stock, Dividends Per Share, Declared	$ 1,500
Issuance of shares under incentive and stock compensation plans and other				(153)
Stock-based compensation plans expense				125
Treasury Stock, Retired, Cost Method, Amount			$ 0	(1,219)			(1,219)
Net income	$ 2,504				2,504
Dividends declared on preferred stock					(21)
Dividends declared on common stock					(534)
Treasury stock acquired	(1,400)						(1,414)
Stock Issued During Period, Value, Treasury Stock Reissued								$ 207
Net shares acquired related to employee incentive and stock compensation plans							(55)
Other Comprehensive Income (Loss), Net of Tax						992
Ending balance at Dec. 31, 2023	$ 15,327	$ 334	$ 3	$ 648	$ 19,007	$ (2,849)	$ (1,816)
Preferred Stock, Shares Outstanding, Ending Balance at Dec. 31, 2023		13,800
Common Shares Outstanding (in thousands)
Treasury stock acquired	(19,200,000)		(19,238,000)
Issuance of shares under incentive and stock compensation plans and other			3,299,000
Return of shares under incentive and stock compensation plans to treasury stock			(700,000)
Common Shares Outstanding, end of period at Dec. 31, 2023			298,472,000
Common Shares Outstanding (in thousands)
Cash dividends declared per common share	$ 1.75
Preferred Stock, Dividends Per Share, Declared	$ 1,500

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Activities
Net income	$ 2,504	$ 1,819	$ 2,371
Adjustments to reconcile net income to net cash provided by operating activities
Net realized losses (gains)	188	627	(530)
Additional Cash Flow Elements, Operating Activities
Amortization of deferred policy acquisition costs	2,044	1,824	1,668
Additions to deferred policy acquisition costs	(2,159)	(1,939)	(1,739)
Depreciation and amortization	510	625	680
Loss on extinguishment of debt	0	(9)	0
Loss on sale of business	0	0	21
Other operating activities, net	213	109	(125)
Increase in reinsurance recoverables	(155)	(470)	(583)
Net change in accrued and deferred income taxes	(29)	(80)	85
Increase in insurance liabilities	1,819	2,192	2,411
Increase (Decrease) in Premiums Receivable	(708)	(562)	(190)
Net change in other assets and other liabilities	(7)	(146)	24
Cash provided by operating activities	4,220	4,008	4,093
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, AFS	6,806	14,996	22,457
Proceeds From Sale and Maturity of Fair Value Option, Fixed Maturity Securties	2	2	0
Proceeds from Sale and Maturity of Marketable Securities	2,173	1,213	626
Mortgage loans	1,036	973	1,506
Limited partnerships and other alternative investments	295	349	537
Payments for the purchase of:
Fixed maturities, AFS	(9,105)	(14,255)	(21,754)
Payments for the purchase of Fair Value Option Fixed Maturity Securties	0	(216)	(160)
Equity securities at fair value	(1,183)	(1,371)	(1,420)
Mortgage loans	(1,055)	(1,596)	(2,386)
Limited partnerships and other alternative investments	(966)	(1,095)	(1,317)
Net proceeds from (payments for) derivatives	(129)	54	(7)
Net additions to property and equipment	(215)	(175)	(133)
Net payments for short-term investments	(69)	(160)	(417)
Other investing activities, net	(21)	4	(9)
Proceeds from businesses sold, net of cash transferred	0	0	11
Net cash used for investing activities	(2,431)	(1,277)	(2,466)
Financing Activities
Deposits and other additions to investment and universal life-type contracts	96	88	89
Withdrawals and other deductions from investment and universal life-type contracts	(100)	(102)	(75)
Repayment of debt	0	(600)	0
Proceeds from the issuance of debt	0	0	588
Net issuance (return of) shares under incentive and stock compensation plans	6	(19)	25
Treasury stock acquired	(1,400)	(1,550)	(1,702)
Payments for Repurchase of Preferred Stock and Preference Stock	(21)	(21)	(21)
Dividends paid on common stock	(528)	(506)	(485)
Net cash used for financing activities	(1,947)	(2,710)	(1,581)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations	3	(14)	(6)
Net increase (decrease) in cash and restricted cash, including cash classified within assets held for sale	(155)	7	40
Less: Net decrease in cash classified as assets held for sale	0	0	(58)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total	(155)	7	98
Cash and restricted cash — beginning of period	344	337	239
Cash and restricted cash — end of period	189	344	337
Supplemental Disclosure of Cash Flow Information
Income tax paid	622	548	496
Interest paid	$ 209	$ 212	$ 214

Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The Hartford Financial Services Group, Inc. ("HFSG") is a holding company for insurance and financial services subsidiaries that provide property and casualty ("P&C") insurance, group life and disability products and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States as well as in the United Kingdom and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”).

On December 29, 2021, the Company completed the sale of all of Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. and Assurances Contintales Contintale Verzekeringen N.V., collectively referred to as "Continental Europe Operations". For further discussion of this transaction, see Note 22 - Business Dispositions.

The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. Generally Accepted Accounting Principles”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities.

Consolidation

The Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability ("LTD") insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; and contingencies relating to corporate litigation and regulatory matters.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation.

Adoption of New Accounting Standards

Reference Rate Reform

On March 12, 2020, the Company adopted the Financial Accounting Standard Board's ("FASB") temporary guidance, which allows The Hartford to account for contract modifications made solely due to rate reform (such as replacing London Inter-Bank Offered Rate ("LIBOR") with another reference rate) as continuations of existing contracts and to maintain hedge accounting when the hedging effectiveness between a financial instrument and its hedge is only affected by the change to a replacement rate. As a result, The Hartford did not recognize gains and losses during the transition period of LIBOR to an alternative reference rate that would otherwise have arisen from accounting assessments and remeasurements. On December 21, 2022, the FASB extended the effective date for the temporary guidance and the temporary guidance now expires for contract modifications made and hedge relationships entered into or evaluated after December 31, 2024. The Company is not required to measure the effect of adoption on its financial position, cash flows or net income because the guidance provides relief from accounting for the effects of the change to a replacement rate.

Reserve for Future Policy Benefits

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

The new guidance requires the discount rate assumption to be updated, as of the transition date and quarterly going forward, to a current upper-medium grade fixed-income investment yield, which has been interpreted to represent a yield based on single-A credit rated fixed maturity instruments with similar duration to the liability. The new guidance also eliminated the requirement to adjust the reserve for future policy benefits for unrealized gains and losses on fixed maturity investments as if those unrealized gains and losses were realized (referred to as shadow reserves). The change in the reserve estimate resulting from updating the discount rate assumptions and eliminating shadow reserves was recognized as a net cumulative effect adjustment that increased the reserve for future policy benefits by $85 and decreased AOCI by $65, net of deferred tax effects, as of January 1, 2021.

The new guidance also requires that underlying cash flow assumptions (i.e., mortality, lapse and expense) in the reserve for future policy benefits be based on best estimate assumptions. The adjustments to the reserve for future policy benefits at adoption resulted in establishing a deferred profit liability on limited pay contracts of $18 representing the estimated profits based on best estimate cash flow assumptions.

The effect of adopting this guidance on the Company’s reserve for future policy benefits was as follows:


Impact of Adoption on Reserve for Future Policy Benefits
	Payout Annuities		Life Conversions		Paid-up Life		Deferred Profit Liability		Other		Total
Reserve for Future Policy Benefits as of December 31, 2020	$	189	$	94	$	267	$	—	$	88	$	638
Adjustments:
Removal of shadow reserve [1]	(26)		—		—		—		—		(26)
Update cash flow assumptions and establish deferred profit liability	(16)		—		(2)		18		—		—
Effect of measurement at current single-A rate [1]	59		21		29		—		2		111
Total Adjustments	17		21		27		18		2		85
Reserve for Future Policy Benefits as of January 1, 2021	206		115		294		18		90		723
Change in reserves due to changes in the single-A rate	(11)		(7)		(15)		—		—		(33)
Other changes in reserves	(7)		(14)		(17)		2		(8)		(44)
Reserve for Future Policy Benefits as of December 31, 2021	$	188	$	94	$	262	$	20	$	82	$	646

[1]These changes were reflected as an adjustment to opening AOCI as of January 1, 2021, with a corresponding deferred tax benefit and increase in reinsurance recoverables of $18 and $2, respectively, resulting in a net decrease to AOCI of $65.

The effect of adopting this guidance on the Company’s Consolidated Balance Sheets as of January 1, 2021 as well as December 31, 2022 and 2021, and Consolidated Statements of Operations and Consolidated Statements of Comprehensive

Income for the years ended December 31, 2022 and 2021 was as follows:


Impact of Adoption on Consolidated Balance Sheets
	As of December 31, 2022						As of December 31, 2021						As of January 1, 2021
	As previously reported		Effect of change		As currently reported		As previously reported		Effect of change		As currently reported		Balance prior to adoption		Effect of change		As currently reported
Reinsurance recoverables	$	6,966	$	(2)	$	6,964	$	6,523	$	1	$	6,524	$	6,011	$	2	$	6,013
Deferred income taxes, net	$	1,449	$	(12)	$	1,437	$	270	$	11	$	281	$	46	$	18	$	64
Reserve for future policy benefits	$	561	$	(59)	$	502	$	596	$	50	$	646	$	638	$	85	$	723
Retained earnings	$	17,048	$	10	$	17,058	$	15,764	$	6	$	15,770	$	13,918	$	—	$	13,918
AOCI	$	(3,876)	$	35	$	(3,841)	$	172	$	(44)	$	128	$	1,170	$	(65)	$	1,105
Total stockholders' equity	$	13,631	$	45	$	13,676	$	17,843	$	(38)	$	17,805	$	18,556	$	(65)	$	18,491


Impact of Adoption on Consolidated Statements of Operations
	Year Ended December 31, 2022						Year Ended December 31, 2021
	As previously reported		Effect of change		As currently reported		As previously reported		Effect of change		As currently reported
Benefits, losses and loss adjustment expenses	$	13,142	$	(4)	$	13,138	$	12,729	$	(9)	$	12,720
Income before income taxes	$	2,258	$	4	$	2,262	$	2,896	$	9	$	2,905
Income tax expense	$	443	$	—	$	443	$	531	$	3	$	534
Net income	$	1,815	$	4	$	1,819	$	2,365	$	6	$	2,371
Net income available to common stockholders	$	1,794	$	4	$	1,798	$	2,344	$	6	$	2,350
Net income available to common stockholders per common share
Basic	$	5.52	$	0.02	$	5.54	$	6.71	$	0.02	$	6.73
Diluted	$	5.44	$	0.02	$	5.46	$	6.62	$	0.02	$	6.64


Impact of Adoption on Consolidated Statements of Comprehensive Income
	Year Ended December 31, 2022						Year Ended December 31, 2021
	As previously reported		Effect of change		As currently reported		As previously reported		Effect of change		As currently reported
Change in net unrealized gain (loss) on fixed maturities, AFS	$	(4,210)	$	(15)	$	(4,225)	$	(1,218)	$	(6)	$	(1,224)
Change in liability for future policy benefits adjustments	$	—	$	94	$	94	$	—	$	27	$	27
Other comprehensive loss, net of tax	$	(4,048)	$	79	$	(3,969)	$	(998)	$	21	$	(977)
Comprehensive income (loss)	$	(2,233)	$	83	$	(2,150)	$	1,367	$	27	$	1,394

Future Adoption of New Accounting Standards

Segment Disclosures

The FASB issued new guidance on Segment Reporting that requires enhanced disclosures on an annual and quarterly basis about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of segment profit or loss. The new guidance also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The Company is required to provide the new disclosures beginning with the December 31, 2024 consolidated financial statements and on a quarterly basis beginning with the March 31, 2025 interim condensed consolidated financial statements. The new guidance will be applied on a retrospective basis for all periods presented. The Company is evaluating the disclosure impact of the new guidance; however, the new guidance will not have an impact on the consolidated financial position, results of operations, or cash flows.

Income Tax Disclosures

The FASB issued new disclosure requirements for income taxes primarily for the income tax rate reconciliation and income taxes paid. The income tax rate reconciliation within the income taxes note will present reconciling items based on specified categories with further disaggregation of items above a prescribed threshold. Disclosure of income taxes paid (net of refunds received) in the consolidated statement of cash flows will be disaggregated by federal (national), state, and foreign taxes with further disaggregation by individual jurisdictions subject to a

prescribed threshold. The Company is required to provide the new disclosure annually beginning with the December 31, 2025 consolidated financial statements. Disclosures are required to be provided on a prospective basis. Early adoption in an annual period and retrospective application is permitted. The Company is evaluating the disclosure impact of the new guidance; however, the new guidance will not have an impact on the consolidated financial position, results of operations, or cash flows.

Significant Accounting Policies

The Company’s significant accounting policies are as follows:

Revenue Recognition

Premium Revenue from Direct Insurance and Assumed Reinsurance

Property and casualty premiums are earned on a pro rata basis over the policy period and include accruals for policies that have been written by agents but not yet reported to us, as well as ultimate premium revenue anticipated under auditable and retrospectively rated policies. We estimate the amount of premium not yet reported based on current and historical trends of the business being written. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year's results. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force, or period of risk.

Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts.

An estimated ACL is recorded on the basis of periodic evaluations of balances due from insureds and considering

historical credit loss information, adjusted for current economic conditions as well as reasonable and supportable forecasts when appropriate. The Company records total credit loss expenses related to premiums receivable in insurance operating costs and other expenses. Write-offs of premiums receivable and agents' balances and any related ACL are recorded in the period in which the balance is deemed uncollectible. Refer to Note 7 - Premiums Receivable and Agents' Balances for further discussion regarding the allowance for doubtful accounts included in premiums receivable and agents’ balances.

Non-Insurance Revenue from Contracts with Customers

Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection.

Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized in other revenues over the period of the flood program's policy terms.

Group Benefits earns fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly.

Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded funds. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded funds, which are recorded in the period in which the services are provided and are collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded funds, and other changes to the composition of assets under management ("AUM") are all factors that ultimately have a direct effect on fee income earned.

Corporate investment management and other fees are primarily for managing third party invested assets, including management of a portion of the invested assets of The Hartford’s former life and annuity business. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Dividends to Policyholders

Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to

be paid based on underlying contractual obligations under policies and applicable state laws.

Net written premiums for participating property and casualty insurance policies represented 6%, 7%, and 7% of total net written premiums for each of the years ended December 31, 2023, 2022 and 2021, respectively. Participating dividends to property and casualty policyholders were $39, $29 and $24 for the years ended December 31, 2023, 2022 and 2021, respectively.

There were no additional amounts of income allocated to participating policyholders.

Investments

Overview

The Company’s investments in fixed maturities consist of bonds, including structured securities, and redeemable preferred stock. Most of these investments are classified as AFS and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value with changes in value recorded in net realized gains and losses. These investments represent certain investments in residual interests of securitizations and other securities that contain embedded credit derivatives. Equity securities are measured at fair value with any changes in valuation reported in net realized gains and losses. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of an ACL. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally received on a three-month delay. Accordingly, income for the years ended December 31, 2023, 2022, and 2021 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of equity fund investments, overseas deposits which are measured at fair value using the net asset value as a practical expedient, consolidated investment funds for which the Company has provided seed money and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies, and derivative instruments which are carried at fair value.

Net Realized Gains and Losses

Net realized gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized gains and losses also result from fair value changes in equity securities, fixed maturities, FVO, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes. The Company records net credit losses on fixed maturities, AFS and

changes in the ACL on mortgage loans as a component of net realized gains and losses. Future changes in the ACL resulting from improvements in expected future cash flows are recorded through net realized gains and losses.

Net Investment Income

Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on the estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For structured financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method. For certain other structured securities, including securities that previously had an ACL and interest only securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. For fixed maturities with an ACL, net investment income is recognized at the original effective rate and accretion of the ACL is recognized through net realized gains and losses. The Company’s non-income producing investments were not material for the years ended December 31, 2023, 2022 and 2021.

Accrued Investment Income

Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received.

Derivative Instruments

Overview

The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to engage in income generation covered call transactions and replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve the following Company-approved objectives:

•to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rates or volatility;

•to manage liquidity;

•to control transaction costs;

•to enter into income generation covered call transactions and synthetic replication transactions.

Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash

flow streams exchanged by the counterparties are equal in value.

The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the Derivative Collateral Arrangements section in Note 6 - Derivatives. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which is characterized as interest and reflected in net investment income.

Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash.

Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash.

Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts.

The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance regulators.

Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities

Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or

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

On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. The Company currently does not designate any derivatives as fair value or net investment hedges.

Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows.

Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized gains and losses.

Hedge Documentation and Effectiveness Testing

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flows of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may

include comparison of critical terms of the derivative to the hedged item.

Discontinuance of Hedge Accounting

The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.

When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings.

In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item.

Embedded Derivatives

The Company may purchase investments that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized gains and losses.

Credit Risk of Derivative Instruments

Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives is greater than zero, subject to minimum transfer thresholds, if applicable. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on

a monthly basis to ensure compliance with Company policies and statutory limitations.

Cash and Restricted Cash

Cash represents cash on hand and demand deposits with banks or other financial institutions. Restrictions on cash primarily relate to funds that are held to support regulatory and contractual obligations.

Reinsurance

The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in reinsurance pools and associations. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies or pools have underwritten.

Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e., risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as deposit transactions. The Company had no deposit liability as of December 31, 2023 and 2022, reported in other liabilities.

Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables are balances due from reinsurers for ceded paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. Changes in the allowance for uncollectible reinsurance are reported in benefits, losses and loss adjustment expenses in the Company's Consolidated Statements of Operations.

The Company periodically evaluates the recoverability of its reinsurance recoverable assets and establishes an allowance for uncollectible reinsurance. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible. The Company records credit losses related to reinsurance recoverables in benefits, losses and loss adjustment expenses. Write-offs of reinsurance recoverables and any related ACL are recorded in the period in which the balance is deemed

uncollectible. Expected recoveries are included in the estimate of the ACL.

Retroactive reinsurance agreements, including adverse development covers ("ADC"), are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of loss development related to past insurable events. For these agreements, the consideration paid in excess of the estimated ultimate losses to be recovered under the agreement at inception is recognized as a loss on reinsurance transaction. The benefit of subsequent adverse development ceded up to the total consideration paid is recognized as ceded losses, which are a reduction of incurred losses and loss adjustment expenses. The excess of the estimated amounts ultimately to be recovered under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the period the ceded losses are recovered in cash from the reinsurer. The amount of the deferred gain liability is recalculated each period based on cumulative recoveries not yet collected relative to the latest estimate of ultimate losses to be recovered. Ceded loss reserves under retroactive agreements were $1.7 billion and $1.5 billion, and the deferred gain liability reported in other liabilities was $997 and $803, as of December 31, 2023 and 2022, respectively. In any given period, the change in deferred gain included in net income includes amortization of the deferred gain based on the percentage of ultimate ceded losses collected plus any change in the deferred gain liability due to changes in the estimated ultimate losses to be recovered. The effect on income from change in the deferred gain was a charge to earnings of $194, $229 and $246 before tax for the years ended December 31, 2023, 2022, and 2021 respectively.

Deferred Policy Acquisition Costs

DAC represents costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or in compensation to employees. Such costs primarily include commissions, premium taxes, costs and certain other expenses that are directly related to successfully issued contracts, including a portion of policy issuance and underwriting costs.

For P&C insurance products and group life, disability and accident contracts, costs are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income, and if not, are charged to expense. Anticipated investment income is considered in the determination of the recoverability of DAC.

Income Taxes

The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of temporary differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated

Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized.

Goodwill

Goodwill represents the excess of the cost to acquire a business over the acquisition date fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. Goodwill is tested for impairment by comparing the fair value of a reporting unit to its carrying value. Goodwill is impaired up to the amount that the carrying value of the reporting unit exceeds the fair value. A reporting unit is defined as an operating segment or one level below an operating segment. The Company’s reporting units, for which goodwill has been allocated consist of Commercial Lines, Personal Lines, Group Benefits, and Hartford Funds.

Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital required to support the business, future business growth, earnings projections, the weighted average cost of capital used for purposes of discounting and, for the Hartford Funds segment, assets under management. Decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease, increasing the possibility of impairments.

Intangible Assets

Acquired intangible assets on the Consolidated Balance Sheets include purchased customer relationship and agency or other distribution rights and licenses measured at fair value at acquisition. The Company amortizes finite-lived other intangible assets over their useful lives generally on a straight-line basis over the period of expected benefit, ranging from 1 to 15 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value. Indefinite-lived intangible assets are not subject to amortization. Intangible assets are assessed for impairment generally when events or circumstances indicate a potential impairment and at least annually for indefinite-lived intangibles. Finite-lived intangible assets are impaired if the carrying amount is not recoverable from undiscounted cash flows. Indefinite-lived intangible assets are impaired if the carrying amount exceeds fair value. Impaired intangible assets are written down to fair value.

Property and Equipment

Property and equipment, which includes capitalized software and right-of-use lease assets, is carried at cost net of accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is recognized principally on the straight-line method. Accumulated depreciation was $2.4 billion and $2.3 billion as of December 31, 2023 and 2022, respectively. Depreciation expense was $204, $213, and $282 for the years

ended December 31, 2023, 2022 and 2021, respectively, and is reported in insurance operating costs and other expenses. The costs to access and develop hosted software arrangements, where The Hartford has the right to access and use the software, but not take possession, and the cost of certain software licenses are reported in other assets on a straight-line basis over the service period. Amortization of hosted software and certain software licenses was $85, $78, and $60 for the years ended December 31, 2023, 2022, and 2021, respectively, and is reported in insurance operating costs and other expenses.

Leases

Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease is not economically similar to a purchase as the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the Consolidated Balance Sheets.

Unpaid Losses and Loss Adjustment Expenses

For property and casualty and group life, disability and accident insurance and assumed reinsurance products, the Company establishes reserves for unpaid losses and loss adjustment expenses to provide for the estimated costs of paying claims under insurance policies written by the Company. These reserves include estimates for both claims that have been reported and those that have not yet been reported, and include estimates of all losses and loss adjustment expenses associated with processing and settling these claims. Estimating the ultimate cost of future losses and loss adjustment expenses is an uncertain and complex process. This estimation process is based significantly on the assumption that past developments are an appropriate predictor of future events, and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors. The effects of inflation are implicitly considered in the reserving process. In addition, a number of complex factors influence the uncertainties involved with the reserving process including social and economic trends and changes in the concepts of legal liability and damage awards. Accordingly, final claim settlements may vary from the present estimates, particularly when those payments may not occur until well into the future. The Company regularly reviews the adequacy of its estimated losses and loss adjustment expense reserves by reserve line within the various reporting segments. Adjustments to previously established reserves are reflected in the operating results of the period in which the adjustment is determined to be necessary. Such adjustments could possibly be significant, reflecting any variety of new and adverse or favorable trends.

Most of the Company’s property and casualty insurance products reserves are not discounted. However, the Company

has discounted to present value certain reserves for indemnity payments that are due to claimants under workers’ compensation policies because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rate is based on the risk free rate for the expected claim duration as determined in the year the claims were incurred. The Company also has discounted liabilities for structured settlement agreements that provide fixed periodic payments to claimants. These structured settlements include annuities purchased to fund unpaid losses for permanently disabled claimants. These structured settlement liabilities are discounted to present value using the rate implicit in the purchased annuities and the purchased annuities are accounted for within reinsurance recoverables.

Group life and disability contracts with long-tail claim liabilities are discounted because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rates are estimated based on investment yields expected to be earned on the cash flows net of investment expenses and expected credit losses. The Company establishes discount rates for these reserves in the year the claims are incurred (the incurral year) which is when the estimated settlement pattern is determined. The discount rate for life and disability reserves acquired from Aetna's U.S. group life and disability business were based on interest rates in effect at the acquisition date of November 1, 2017.

For further information about how unpaid losses and loss adjustment expenses are established, see Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses.

Reserve for Future Policy Benefits

The Company’s reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities, which are reported in the Corporate category.

Contracts are grouped into cohorts by contract type and issue year. The Company establishes reserves for future policy benefits using the net premium approach, which represents the present value of future policyholder benefits and related expenses less the present value of future net premiums. Net premiums are calculated by multiplying gross premiums for the contracts in a specific cohort by a net premium ratio. The net premium ratio is determined for the lifetime of a given cohort as the present value of net benefits divided by the present value of gross premiums. Related expenses include termination and settlement costs and exclude acquisition costs and non-claim related costs, such as costs relating to investments, general administration, policy maintenance, product development, market research and general overhead or any other costs, which are expensed as incurred.

The Company estimates premiums, benefits and related expense cash flows using methods that include assumptions, such as estimates of mortality, lapse, and claim-related expenses, and the possible impact of inflation on those expenses. Benefits include all guaranteed cash flows to be paid to the policyholder.

The reserve for future policy benefits is adjusted for differences between actual and expected experience. Each quarter, the Company updates its estimates of cash flows expected over the life of a group of contracts using actual historical experience. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated reserve for future policy benefits. In subsequent periods, the revised net premiums are used to measure the reserve for future policy benefits, subject to future revisions. Future cash flow assumptions, including mortality, lapse and expense are reviewed and, if a change is indicated, updated at least annually in the third quarter.

The difference between the newly calculated reserve balance and the reserve balance before updating for actual experience and/or future cash flow assumptions is the remeasurement gain or loss, which is immaterial for each of the years ended December 31, 2023, 2022 and 2021 is presented in benefits losses and loss adjustments expense in the Consolidated Statements of Operations. Changes to the reserve due to updates to cash flow assumptions discounted at the discount rate used immediately prior to transition are recognized on a catch-up basis in the Consolidated Statement of Operations.

The discount rate assumption is an equivalent single rate that is based on a current market observable, upper-medium grade fixed maturity yield. This has been interpreted to represent a yield based on single-A credit rated fixed maturity instruments with similar duration to the liability. The Company uses the yield of a market observable index of single-A credit rated fixed maturities as the basis for setting the discount rate. The discount rate assumption is updated quarterly and the change in the reserve estimate resulting from updating the discount rate assumption is recognized in other comprehensive income.

Treasury Stock

Treasury stock is the cost of common stock repurchased, which includes the purchase price of shares acquired and direct costs to acquire shares, including commissions and excise taxes. Issuance and retirement of treasury stock is recognized at the average cost of shares held in treasury.

Foreign Currency

Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of AOCI. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies; however, the U.S. dollar is the functional currency of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"), for which the Company is the sole corporate member. Gains and losses resulting from the remeasurement of foreign currency transactions are reflected in earnings in net realized gains (losses) in the period in which they occur.

Derivatives

6. DERIVATIVES

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, commodity market, credit spread, issuer default, price, and currency exchange rate or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or debt instruments issued.

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on variable-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the $500 junior subordinated debentures due 2067 to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 14 - Debt.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, equity, and commodity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Interest Rate Swaps and Futures

The Company uses interest rate swaps and futures to manage interest rate duration between assets and liabilities. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of December 31, 2023 and

December 31, 2022, the notional amount of interest rate swaps in offsetting relationships was $6.6 billion for both periods.

Foreign Currency Swaps and Forwards

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars.

Equity Index Options

The Company may enter into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company has also previously entered into covered call options on equity securities to generate additional return.

Commodity Options

The Company previously purchased call option contracts on oil futures in order to partially offset potential changes in value related to certain fixed maturity securities that could arise if oil prices increased substantially.

Derivative Balance Sheet Classification

For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk.

Derivative Balance Sheet Presentation


	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
Hedge Designation/ Derivative Type	Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022
Cash flow hedges
Interest rate swaps	$	3,450	$	2,155	$	(1)	$	—	$	1	$	—	$	(2)	$	—
Foreign currency swaps	644		568		13		53		29		57		(16)		(4)
Total cash flow hedges	4,094		2,723		12		53		30		57		(18)		(4)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	6,626		7,245		(5)		(6)		—		2		(5)		(8)
Foreign exchange contracts
Foreign currency swaps and forwards	645		569		—		—		—		—		—		—
Credit contracts
Credit derivatives that purchase credit protection	—		11		—		—		—		—		—		—

Credit derivatives in offsetting positions	998		207		—		—		27		3		(27)		(3)










Total non-qualifying strategies	8,269		8,032		(5)		(6)		27		5		(32)		(11)
Total cash flow hedges and non-qualifying strategies	$	12,363	$	10,755	$	7	$	47	$	57	$	62	$	(50)	$	(15)
Balance Sheet Location
Fixed maturities, AFS	$	645	$	569	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	1,662		9,108		(1)		34		18		38		(19)		(4)
Other liabilities	10,056		1,078		8		13		39		24		(31)		(11)


Total derivatives	$	12,363	$	10,755	$	7	$	47	$	57	$	62	$	(50)	$	(15)

.

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Offsetting amounts include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

Offsetting Derivative Assets and Liabilities


	(i)		(ii)		(iii) = (i) - (ii)				(iv)		(v) = (iii) - (iv)
					Net Amounts Presented in the Statement of Financial Position				Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2023
Other investments	$	57	$	55	$	(1)	$	3	$	—	$	2
Other liabilities	$	(50)	$	(36)	$	8	$	(22)	$	(13)	$	(1)
As of December 31, 2022
Other investments	$	62	$	60	$	34	$	(32)	$	—	$	2
Other liabilities	$	(15)	$	(7)	$	13	$	(21)	$	(7)	$	(1)

[1]Included in other investments in the Company's Consolidated Balance Sheets.

[2]Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3]Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4]Excludes collateral associated with exchange-traded derivative instruments.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the

same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.


Gain (Loss) Recognized in OCI
	Year Ended December 31,
	2023		2022		2021
Interest rate swaps	$	6	$	—	$	4
Foreign currency swaps	(31)		56		24
Total	$	(25)	$	56	$	28


Gain (Loss) Reclassified from AOCI into Income
	Year Ended December 31,
	2023						2022						2021
	Net Realized Gain/(Loss)		Net Investment Income		Interest Expense		Net Realized Gain/(Loss)		Net Investment Income		Interest Expense		Net Realized Gain/(Loss)		Net Investment Income		Interest Expense
Interest rate swaps	$	—	$	(26)	$	15	$	—	$	6	$	(2)	$	—	$	41	$	(10)
Foreign currency swaps	—		10		—		—		9		—		—		5		—
Total	$	—	$	(16)	$	15	$	—	$	15	$	(2)	$	—	$	46	$	(10)

Total amounts presented on the Consolidated Statement of Operations	$	(188)	$	2,305	$	199	$	(627)	$	2,177	$	213	$	509	$	2,313	$	234

As of December 31, 2023, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $18. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. Over that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income or interest expense, as applicable, over the term of the hedged instrument cash flows.

During the years ended December 31, 2023, 2022, and 2021, the Company had no net reclassifications from AOCI to earnings

resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

Non-qualifying Strategies

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses).

Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)


	For the Year Ended December 31,
	2023		2022		2021
Foreign exchange contracts
Foreign currency swaps and forwards	$	—	$	5	$	2
Interest rate contracts
Interest rate swaps, swaptions and futures	(3)		25		3
Credit contracts
Credit derivatives that purchase credit protection	(105)		4		—
Credit derivatives that assume credit risk	—		—		7
Equity contracts
Equity options	—		(2)		—
Commodity contracts
Commodity options	—		14		—




Total [1]	$	(108)	$	46	$	12

[1]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements.

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be

equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk may reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers.

Credit Risk Assumed Derivatives by Type


						Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of December 31, 2023



Basket credit default swaps [4]

Investment grade risk exposure	$	101	$	(1)	5 years	CMBS Credit	AAA	$	101	$	1
Below investment grade risk exposure	396		24		4 years	Corporate Credit	B+	396		(24)
Below investment grade risk exposure	2		(1)		Less than 1 year	CMBS Credit	CCC-	2		1
Total [5]	$	499	$	22				$	499	$	(22)
As of December 31, 2022
Basket credit default swaps [4]





Investment grade risk exposure	$	100	$	(1)	6 years	CMBS Credit	AAA	$	100	$	1
Below investment grade risk exposure	3		(2)		Less than 1 year	CMBS Credit	B-	3		2


Total [5]	$	103	$	(3)				$	103	$	3

[1]The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

[2]Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3]The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

[4]Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[5]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements.

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2023 and 2022, the Company has pledged cash collateral associated with derivative instruments of $25 and less than $1, respectively. In general, collateral receivable is recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of December 31, 2023 and 2022, the Company pledged securities collateral associated with derivative instruments with a fair value of $14 and $8, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities.

In addition, as of December 31, 2023 and 2022, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $16 for both periods, which is recorded in other investments or other assets on the Company's Consolidated Balance Sheets. As of December 31, 2023 and 2022, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $112 and $57, respectively, which are included within fixed maturities on the Company's Consolidated Balance Sheets.

As of December 31, 2023 and 2022, the Company accepted cash collateral associated with derivative instruments of $49 and $56, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2023 and 2022 with a fair value of $0 and $1, respectively, which the Company has the right to repledge or sell. As of December 31, 2023 and 2022, the Company had no repledged securities. In addition, as of December 31, 2023 and 2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

Earnings Per Common Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

2. EARNINGS PER COMMON SHARE

Computation of Basic and Diluted Earnings per Common Share


	For the years ended December 31,
(In millions, except for per share data)	2023		2022		2021
Earnings








Net income	$	2,504	$	1,819	$	2,371
Less: Preferred stock dividends	21		21		21
Net income available to common stockholders	$	2,483	$	1,798	$	2,350


Shares
Weighted average common shares outstanding, basic	307.1		324.8		349.1

Dilutive effect of stock-based awards under compensation plans	4.4		4.7		5.0
Weighted average common shares outstanding and dilutive potential common shares [1]	311.5		329.5		354.1
Net income available to common stockholders per common share
Basic	$	8.09	$	5.54	$	6.73



Diluted	$	7.97	$	5.46	$	6.64

[1]For additional information, see Note 16 - Equity and Note 20 - Stock Compensation Plans.

Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the year. Diluted earnings per common share includes the dilutive effect of stock-based awards under compensation plans.

Under the treasury stock method, for stock-based awards, shares are assumed to be issued and then reduced for the number of shares repurchasable with theoretical proceeds at the average market price for the period. Contingently issuable shares are included for the number of shares issuable assuming the end of the reporting period was the end of the contingency period, if dilutive.

Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.

Over 95% of the Company’s revenues are generated in the United States (“U.S.”). The remaining revenues are generated in the U.K. and other international locations.

We report our results of operations consistent with the manner in which our chief operating decision maker ("CODM") reviews the business to assess performance, make operating decisions and allocate resources. The Company’s reporting segments, as well as the Corporate category, are as follows:

Commercial Lines

Commercial Lines provides a variety of insurance products and risk management services in the U.S. and internationally, with insurance coverages including workers’ compensation, property, automobile, general liability, umbrella, package business, professional liability, bond, marine, livestock, accident and health, and assumed reinsurance.

Personal Lines

Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. This agreement provides an important competitive advantage given the size of the 50 plus population and the

strength of the AARP brand, and is in place through December 31, 2032.

Property & Casualty Other Operations

Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental ("A&E") exposures.

Group Benefits

Group Benefits provides employers and associations with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Hartford Funds

Hartford Funds offers investment products for retail and retirement accounts and provides investment management, distribution and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support third-party life and annuity separate accounts.

Corporate

The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Interest expense of $199, $213 and $234, on debt for the years ended December 31, 2023, 2022 and 2021, respectively, is included in the Corporate category for segment reporting. Corporate also includes investment management fees and expenses related to managing third party assets. Talcott Resolution Life, Inc. is the holding company of the life and annuity business that we sold in May 2018. Up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution"). Refer to Note 5 - Investments for additional information.

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net income is unaffected by such transactions.

Revenues


	For the years ended December 31,
	2023		2022		2021
Earned premiums and fee income:
Commercial Lines
Workers’ compensation	$	3,670	$	3,499	$	3,172
General liability	1,977		1,836		1,622
Marine	256		235		228
Package business	2,076		1,844		1,665
Property	1,053		845		829
Professional liability	787		737		655
Bond	321		303		287
Assumed reinsurance	615		467		328
Automobile	927		844		789
Total Commercial Lines	11,682		10,610		9,575
Personal Lines
Automobile	2,156		2,047		2,059
Homeowners	961		932		927
Total Personal Lines [1]	3,117		2,979		2,986
Property & Casualty Other Operations	—		—		—
Group Benefits
Group disability	3,530		3,310		2,983
Group life	2,583		2,393		2,388
Other	402		354		316
Total Group Benefits	6,515		6,057		5,687
Hartford Funds
Mutual fund and ETF	900		964		1,094
Third-party life and annuity separate accounts [2]	73		80		95
Total Hartford Funds	973		1,044		1,189
Corporate	39		49		50
Total earned premiums and fee income	22,326		20,739		19,487
Total net investment income	2,305		2,177		2,313
Net realized gains (losses)	(188)		(627)		509
Other revenues	84		73		81
Total revenues	$	24,527	$	22,362	$	22,390

[1]For 2023, 2022 and 2021, AARP members accounted for earned premiums of $2.9 billion, $2.7 billion and $2.7 billion, respectively.

[2]Represents revenues earned for investment advisory services on third party life and annuity separate account AUM by the Company's Hartford Funds segment.

Net Income (Loss)


	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	2,085	$	1,624	$	1,757
Personal Lines	(39)		91		385
Property & Casualty Other Operations	(130)		(190)		(95)
Group Benefits	535		327		256
Hartford Funds	174		162		217
Corporate	(121)		(195)		(149)
Net income	2,504		1,819		2,371
Preferred stock dividends	21		21		21
Net income available to common stockholders	$	2,483	$	1,798	$	2,350

Net Investment Income


	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	1,532	$	1,415	$	1,502
Personal Lines	171		140		157
Property & Casualty Other Operations	69		63		75
Group Benefits	469		524		550
Hartford Funds	17		9		5
Corporate	47		26		24
Net investment income	$	2,305	$	2,177	$	2,313

Amortization of DAC


	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	1,779	$	1,563	$	1,398
Personal Lines	231		228		230
Group Benefits	34		33		40


Total amortization of DAC	$	2,044	$	1,824	$	1,668

Amortization of Other Intangible Assets


	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	29	$	29	$	29
Personal Lines	2		2		2
Group Benefits	40		40		40

Total amortization of other intangible assets	$	71	$	71	$	71

Income Tax Expense (Benefit)


	For the years ended December 31,
	2023		2022		2021
Commercial Lines	$	502	$	426	$	402
Personal Lines	(15)		22		95
Property & Casualty Other Operations	(36)		(52)		(28)
Group Benefits	133		75		56
Hartford Funds	45		41		56
Corporate	(45)		(69)		(47)
Total income tax expense	$	584	$	443	$	534

Assets


	As of December 31,
	2023		2022
Commercial Lines	$	49,711	$	47,234
Personal Lines	5,579		5,130
Property & Casualty Other Operations	4,235		3,897
Group Benefits	13,697		13,278
Hartford Funds	684		635
Corporate	2,874		2,834
Total assets	$	76,780	$	73,008

Non-Insurance Revenue from Contracts with Customers


		For the years ended December 31,
	Revenue Line Item	2023		2022		2021
Commercial Lines
Installment billing fees	Fee income	$	41	$	39	$	34
Personal Lines
Installment billing fees	Fee income	30		30		32
Insurance servicing revenues	Other revenues	81		73		80
Group Benefits
Administrative services	Fee income	217		187		183
Hartford Funds


Advisory, servicing and distribution fees	Fee income	973		1,044		1,189
Corporate
Investment management and other fees	Fee income	39		49		50
Other	Other revenues	1		1		1
Total non-insurance revenues with customers		$	1,382	$	1,423	$	1,569

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

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-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

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-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

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-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

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-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. FAIR VALUE MEASUREMENTS

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs.

The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.


Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2023
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed securities ("ABS")	$	3,320	$	—	$	3,320	$	—
Collateralized loan obligations ("CLO")	3,090		—		2,977		113
Commercial mortgage-backed securities ("CMBS")	3,125		—		2,898		227
Corporate	17,866		—		16,005		1,861
Foreign government/government agencies	562		—		562		—
Municipal	6,039		—		6,039		—
Residential mortgage-backed securities ("RMBS")	4,287		—		4,251		36
U.S. Treasuries	1,529		18		1,511		—
Total fixed maturities, AFS	39,818		18		37,563		2,237
Fixed maturities, FVO	327		—		160		167
Equity securities, at fair value	864		333		473		58
Derivative assets
Credit derivatives	(10)		—		(10)		—

Foreign exchange derivatives	9		—		9		—

Total derivative assets [1]	(1)		—		(1)		—

Short-term investments	3,850		1,400		2,425		25
Total assets accounted for at fair value on a recurring basis	$	44,858	$	1,751	$	40,620	$	2,487
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	$	10	$	—	$	10	$	—

Foreign exchange derivatives	4		—		4		—
Interest rate derivatives	(6)		—		(6)		—
Total derivative liabilities [2]	8		—		8		—

Total liabilities accounted for at fair value on a recurring basis	$	8	$	—	$	8	$	—


Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2022
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS	$	1,941	$	—	$	1,911	$	30
CLO	2,941		—		2,826		115
CMBS	3,368		—		3,146		222
Corporate	15,233		—		13,644		1,589
Foreign government/government agencies	547		—		547		—
Municipal	6,296		—		6,296		—
RMBS	3,708		—		3,613		95
U.S. Treasuries	2,197		—		2,197		—
Total fixed maturities, AFS	36,231		—		34,180		2,051
Fixed maturities, FVO	333		—		155		178
Equity securities, at fair value	1,801		1,261		479		61
Derivative assets
Credit derivatives	2		—		2		—

Foreign exchange derivatives	32		—		32		—

Total derivative assets [1]	34		—		34		—
Short-term investments	3,859		1,429		2,237		193
Total assets accounted for at fair value on a recurring basis	$	42,258	$	2,690	$	37,085	$	2,483
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	$	(2)	$	—	$	(2)	$	—

Foreign exchange derivatives	21		—		21		—
Interest rate derivatives	(6)		—		(6)		—
Total derivative liabilities [2]	13		—		13		—

Total liabilities accounted for at fair value on a recurring basis	$	13	$	—	$	13	$	—

[1]Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities.

[2]Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

The Company has overseas deposits included in other investments of $75 and $62 as of December 31, 2023 and December 31, 2022, respectively, which are measured at fair value using the net asset value as a practical expedient.

Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where

appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order:

•Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

•Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the

underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

•Internal matrix pricing is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s sector, financial strength, and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the significant inputs are observable or can be corroborated with observable data.

•Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC cleared derivatives may be used and in other cases independent broker quotes may

be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments.

Valuation Controls

The process for determining the fair value of investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company. The purpose of the Valuation Committee is to provide oversight of the pricing policy, procedures and controls, including approval of valuation methodologies and pricing sources. The Valuation Committee reviews market data trends, pricing statistics and trading statistics to ensure that prices are reasonable and consistent with our fair value framework. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. Controls include, but are not limited to, reviewing daily and monthly price changes, stale prices, and missing prices and comparing new trade prices to third-party pricing services, weekly price changes to published bond index prices, and daily OTC derivative market valuations to counterparty valuations. The Company has a dedicated pricing group that works with trading and investment professionals to challenge prices received by a third party pricing source if the Company believes that the valuation received does not accurately reflect the fair value. New valuation models and changes to current models require approval by the Valuation Committee. In addition, the Company’s enterprise-wide Operational Risk Management function provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded derivative instruments.

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives


	Level 2 Primary Observable Inputs	Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CLO, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLO, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral	• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature	• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S. Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements	• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active	• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short-term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates	• Independent broker quotes
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves	• Not applicable


Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves	• Not applicable
Interest rate derivatives
	• Swap yield curve	• Not applicable

Significant Unobservable Inputs for Level 3 - Securities

Assets accounted for at fair value on a recurring basis

Fair Value

Predominant Valuation Technique

Significant Unobservable Input

Minimum

Maximum

Weighted Average [1]

Impact of Increase in Input on Fair Value [2]

As of December 31, 2023

CLO [3]

$

98

Discounted cash flows

Spread

268 bps

270 bps

269 bps

Decrease

CMBS [3]

$

226

Discounted cash flows

Spread (encompasses prepayment, default risk and loss severity)

365 bps

1,315 bps

509 bps

Decrease

Corporate [4]

$

1,741

Discounted cash flows

Spread

49 bps

743 bps

323 bps

Decrease

RMBS

$

36

Discounted cash flows

Spread [6]

32 bps

298 bps

161 bps

Decrease

Constant prepayment rate [6]

1%

5%

4%

Decrease [5]

Constant default rate [6]

1%

5%

2%

Decrease

Loss severity [6]

10 bps

70 bps

41 bps

Decrease

Short-term investments [3]

$

15

Discounted cash flows

Spread

579 bps

1,254 bps

1,225 bps

Decrease

As of December 31, 2022

CLO

$

115

Discounted cash flows

Spread

337 bps

Decrease

CMBS [3]

$

219

Discounted cash flows

Spread (encompasses prepayment, default risk and loss severity)

419 bps

1,307 bps

527 bps

Decrease

Corporate [4]

$

1,541

Discounted cash flows

Spread

77 bps

642 bps

360 bps

Decrease

RMBS [3]

$

65

Discounted cash flows

Spread [6]

62 bps

249 bps

160 bps

Decrease

Constant prepayment rate [6]

1%

10%

7%

Decrease [5]

Constant default rate [6]

1%

4%

2%

Decrease

Loss severity [6]

10%

100%

38%

Decrease

[1]The weighted average is determined based on the fair value of the securities.

[2]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3]Excludes securities for which the Company bases fair value on broker quotations.

[4]Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5]Decrease for above market rate coupons and increase for below market rate coupons.

[6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.

As of December 31, 2023 and 2022, the fair values of the Company's level 3 derivatives were less than $1 for both periods.

The table above excludes certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As

of December 31, 2023, no significant adjustments were made by the Company to broker prices received.

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability.


Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2023
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2023		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of December 31, 2023
Assets
Fixed maturities, AFS
	ABS	$	30	$	—	$	—	$	82	$	—	$	—	$	—	$	(112)	$	—
	CLO	115		—		—		102		(49)		—		—		(55)		113
	CMBS	222		(2)		3		6		(18)		(5)		21		—		227
	Corporate	1,589		(5)		71		458		(196)		(11)		50		(95)		1,861


	RMBS	95		—		—		40		(29)		—		—		(70)		36
Total fixed maturities, AFS		2,051		(7)		74		688		(292)		(16)		71		(332)		2,237
Fixed maturities, FVO		178		(1)		—		—		(10)		—		—		—		167
Equity securities, at fair value		61		(1)		—		1		(3)		—		—		—		58



Short-term investments		193		—		—		48		(216)		—		—		—		25
Total Assets		$	2,483	$	(9)	$	74	$	737	$	(521)	$	(16)	$	71	$	(332)	$	2,487


Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2022
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2022		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of December 31, 2022
Assets
Fixed maturities, AFS
	ABS	$	—	$	—	$	—	$	49	$	—	$	—	$	—	$	(19)	$	30
	CLO	257		—		(2)		113		(62)		—		—		(191)		115
	CMBS	196		—		(15)		51		(10)		—		—		—		222
	Corporate	1,618		—		(174)		524		(274)		(40)		45		(110)		1,589
	Foreign Govt./Govt. Agencies	5		(1)		—		—		—		(7)		3		—		—

	RMBS	328		—		(14)		137		(95)		—		—		(261)		95
Total fixed maturities, AFS		2,404		(1)		(205)		874		(441)		(47)		48		(581)		2,051
Fixed maturities, FVO		160		(24)		—		55		(13)		—		—		—		178
Equity securities, at fair value		64		11		—		2		(16)		—		—		—		61




Short-term investments		80		—		—		284		(121)		—		—		(50)		193
Total Assets		$	2,708	$	(14)	$	(205)	$	1,215	$	(591)	$	(47)	$	48	$	(631)	$	2,483

[1]Amounts in these columns are generally reported in net realized gains (losses). All amounts are before income taxes.

[2]All amounts are before income taxes.

[3]Transfers into and/or (out of) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.


Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End
		December 31, 2023				December 31, 2022
		Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]		Changes in Unrealized Gain/(Loss) included in OCI [3]		Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]		Changes in Unrealized Gain/(Loss) included in OCI [3]
Assets
Fixed maturities, AFS

	CLO	$	—	$	1	$	—	$	(1)
	CMBS	—		2		—		(15)
	Corporate	(6)		71		(3)		(170)


	RMBS	—		—		—		(13)
Total fixed maturities, AFS		(6)		74		(3)		(199)
Fixed maturities, FVO		(1)		—		(24)		—
Equity securities, at fair value		(1)		—		2		—




Total Assets		$	(8)	$	74	$	(25)	$	(199)

[1]All amounts in these rows are reported in net realized gains (losses). All amounts are before income taxes.

[2]Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3]Changes in unrealized gains (losses) on fixed maturities, AFS are reported in changes in net unrealized gain (loss) on fixed maturities in the Consolidated Statements of Comprehensive Income.

Fair Value Option

The Company has elected the fair value option for certain investments in residual interests of securitizations and other securities that contain embedded credit derivatives with underlying credit risk related to residential real estate in order to reflect changes in fair value in earnings. These instruments are included within fixed maturities, FVO on the Consolidated Balance Sheets and changes in the fair value of these investments are reported in net realized gains and losses.

As of December 31, 2023 and 2022, the fair value of assets using the fair value option was $327 and $333, respectively, of which $167 and $178, respectively, were residual interests of securitizations.

For the years ended December 31, 2023, 2022, and 2021, net realized gains (losses) related to the change in fair value of assets using the fair value option were $5, $(28), and $(6), respectively.

Financial Instruments Not Carried at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value


	December 31, 2023					December 31, 2022
	Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value		Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value
Assets
Mortgage loans	Level 3	$	6,087	$	5,584	Level 3	$	6,000	$	5,362
Liabilities
Other policyholder funds and benefits payable	Level 3	$	638	$	639	Level 3	$	658	$	658
Senior notes [2]	Level 2	$	3,863	$	3,533	Level 2	$	3,858	$	3,339
Junior subordinated debentures [2]	Level 2	$	499	$	429	Level 2	$	499	$	419

[1]As of December 31, 2023 and December 31, 2022, the carrying amount of mortgage loans is net of ACL of $51 and $36, respectively

[2]Included in long-term debt in the Consolidated Balance Sheets, except for any current maturities, which are included in short-term debt when applicable.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Investments

5. INVESTMENTS

Net Investment Income


	For the years ended December 31,
(Before tax)	2023		2022		2021
Fixed maturities [1]	$	1,895	$	1,469	$	1,349
Equity securities	45		57		73
Mortgage loans	235		211		181
Limited partnerships and other alternative investments	212		515		732
Other investments [2]	9		5		58
Gross investment income	$	2,396	$	2,257	$	2,393
Investment expenses	(91)		(80)		(80)
Total net investment income	$	2,305	$	2,177	$	2,313

[1]Includes net investment income on short-term investments.

[2]Primarily includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

Net Realized Gains (Losses)


	For the years ended December 31,
(Before tax)	2023		2022		2021
Gross gains on sales of fixed maturities	$	30	$	57	$	319
Gross losses on sales of fixed maturities	(149)		(315)		(89)
Equity securities [1]
Net realized gains (losses) on sales of equity securities	100		(83)		81
Change in net unrealized gains (losses) of equity securities	(22)		(266)		146
Net realized and unrealized gains (losses) on equity securities	78		(349)		227
Net credit losses on fixed maturities, AFS	(14)		(18)		4
Change in ACL on mortgage loans	(15)		(7)		9
Intent-to-sell impairments	—		(6)		—
Other, net [2]	(118)		11		39
Net realized gains (losses)	$	(188)	$	(627)	$	509

[1]The change in net unrealized gains (losses) on equity securities still held as of the end of the period and included in net realized gains (losses) were $17, $(108), and $155 for the years ended December 31, 2023, 2022, and 2021, respectively.

[2]Includes gains (losses) on non-qualifying derivatives for 2023, 2022, and 2021 of $(108), $46, and $12, respectively, and gains (losses) from transactional foreign currency revaluation of $(15), $28, and $(1), respectively. Also included for the year ended December 31, 2021, is a loss of $21 on the sale of the Continental Europe Operations and a gain of $46 on the sale of the Company's previously owned interest in Talcott Resolution.

Proceeds from the sales of fixed maturities, AFS totaled $3.8 billion, $11.4 billion, and $15.9 billion for the years ended December 31, 2023, 2022, and 2021, respectively. Sales of AFS securities in 2023 were primarily a result of tactical changes to the portfolio driven by changing market conditions, in addition to duration and liquidity management. Non-cash investing activities for the year ended December 31, 2023, included $80 related to the exchange of short-term investments for mortgage loans.

Accrued Investment Income on Fixed Maturities, AFS and Mortgage Loans

As of December 31, 2023 and December 31, 2022, the Company reported accrued investment income related to fixed maturities, AFS of $371 and $338, respectively, and accrued

investment income related to mortgage loans of $20 and $18, respectively. These amounts are not included in the carrying value of the fixed maturities or mortgage loans. The Company does not include the current accrued investment income balance when estimating the ACL. The Company has a policy to write-off accrued investment income balances that are more than 90 days past due. Write-offs of accrued investment income are recorded as a credit loss component of net realized gains and losses.

Investment income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible.

Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.

For fixed maturities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an ACL for the portion of the unrealized loss related to the credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.


ACL on Fixed Maturities, AFS by Type
	For the years ended December 31,
	2023						2022									2021
(Before tax)	CMBS		Corporate		Total			CMBS		Corporate		Foreign govt./govt. agencies		Total			Corporate		Total
Balance as of beginning of period	$	10	$	2	$	12		$	—	$	1	$	—	$	1		$	23	$	23
Credit losses on fixed maturities where an allowance was not previously recorded	—		9		9			7		10		3		20			2		2
Reduction due to sales	—		(5)		(5)			—		(3)		(1)		(4)			(18)		(18)
Reduction due to intent to sell	—		—		—			—		—		(3)		(3)			—		—
Net increases (decreases) on fixed maturities where an allowance was previously recorded	2		3		5			3		(3)		1		1			(6)		(6)
Write-offs charged against the allowance	—		—		—			—		(3)		—		(3)			—		—
Balance as of end of period	$	12	$	9	$	21		$	10	$	2	$	—	$	12		$	1	$	1

Fixed Maturities, AFS


Fixed Maturities, AFS, by Type
	December 31, 2023										December 31, 2022
	Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
ABS	$	3,347	$	—	$	18	$	(45)	$	3,320	$	2,016	$	—	$	—	$	(75)	$	1,941
CLO	3,104		—		3		(17)		3,090		3,040		—		3		(102)		2,941
CMBS	3,466		(12)		19		(348)		3,125		3,715		(10)		21		(358)		3,368
Corporate	18,691		(9)		197		(1,013)		17,866		16,794		(2)		33		(1,592)		15,233
Foreign govt./govt. agencies	583		—		6		(27)		562		596		—		—		(49)		547
Municipal	6,207		—		131		(299)		6,039		6,718		—		93		(515)		6,296
RMBS	4,675		—		18		(406)		4,287		4,214		—		2		(508)		3,708
U.S. Treasuries	1,653		—		26		(150)		1,529		2,440		—		—		(243)		2,197
Total fixed maturities, AFS	$	41,726	$	(21)	$	418	$	(2,305)	$	39,818	$	39,533	$	(12)	$	152	$	(3,442)	$	36,231

Fixed Maturities, AFS, by Contractual Maturity Year


	December 31, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,526	$	1,501	$	1,417	$	1,396
Over one year through five years	9,670		9,433		8,340		7,930
Over five years through ten years	6,568		6,211		7,259		6,485
Over ten years	9,370		8,851		9,532		8,462
Subtotal	27,134		25,996		26,548		24,273
Mortgage-backed and asset-backed securities	14,592		13,822		12,985		11,958
Total fixed maturities, AFS	$	41,726	$	39,818	$	39,533	$	36,231

Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e., prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of December 31, 2023, or December 31, 2022, other than U.S. government securities and certain U.S. government agencies.

As of December 31, 2023, other than U.S. government securities and certain U.S. government agencies, the

Company’s three largest exposures by issuer were NextEra Energy Inc., the Government of Canada, and Morgan Stanley each of which comprised less than 1% of total invested assets. As of December 31, 2022, other than U.S. government securities and certain U.S. government agencies, the Company’s three largest exposures by issuer were the Toronto Dominion Bank, Morgan Stanley, and the Mitsubishi UFJ Financial Group Inc. each of which comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2023, were the municipal sector, the financial services sector, and the RMBS sector which comprised approximately 11%, 9%, and 8%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2022, were the municipal sector, the financial services sector, and the RMBS sector which comprised approximately 12%, 9%, and 7%, respectively, of total invested assets.

Unrealized Losses on Fixed Maturities, AFS


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	604	$	(6)	$	1,043	$	(39)	$	1,647	$	(45)
CLO	209		(1)		2,249		(16)		2,458		(17)
CMBS	117		(7)		2,837		(341)		2,954		(348)
Corporate	810		(10)		11,149		(1,003)		11,959		(1,013)
Foreign govt./govt. agencies	27		—		368		(27)		395		(27)
Municipal	329		(3)		3,196		(296)		3,525		(299)
RMBS	181		(3)		3,207		(403)		3,388		(406)
U.S. Treasuries	120		(11)		1,121		(139)		1,241		(150)
Total fixed maturities, AFS in an unrealized loss position	$	2,397	$	(41)	$	25,170	$	(2,264)	$	27,567	$	(2,305)


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	1,577	$	(50)	$	281	$	(25)	$	1,858	$	(75)
CLO	1,490		(48)		1,378		(54)		2,868		(102)
CMBS	2,560		(270)		521		(88)		3,081		(358)
Corporate	11,157		(1,071)		2,575		(521)		13,732		(1,592)
Foreign govt./govt. agencies	308		(26)		224		(23)		532		(49)
Municipal	4,270		(461)		228		(54)		4,498		(515)
RMBS	2,311		(249)		1,250		(259)		3,561		(508)
U.S. Treasuries	1,554		(145)		633		(98)		2,187		(243)
Total fixed maturities, AFS in an unrealized loss position	$	25,227	$	(2,320)	$	7,090	$	(1,122)	$	32,317	$	(3,442)

As of December 31, 2023, fixed maturities, AFS in an unrealized loss position consisted of 3,850 instruments and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date. As of December 31, 2023, 94% of these fixed maturities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during 2023, was primarily due to an increase in valuations as a result of tighter credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, RMBS, CMBS, and municipal bonds, which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows.

Mortgage Loans

ACL on Mortgage Loans

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The Company's process also considers qualitative factors. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios.

When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about

the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of December 31, 2023, the Company did not have any mortgage loans for which an ACL was established on an individual basis.

There were no mortgage loans held-for-sale as of December 31, 2023 or December 31, 2022. In addition, as of December 31, 2023 and December 31, 2022, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract or with borrowers experiencing financial difficulties.


ACL on Mortgage Loans
	For the years ended December 31,
	2023		2022		2021
ACL as of beginning of period	$	36	$	29	$	38


Current period provision (release)	15		7		(9)



ACL as of December 31,	$	51	$	36	$	29

The increase in the allowance for the 2023 period is primarily attributable to revised economic scenarios, lower property valuations, and overall weaker real estate fundamentals. During 2022, the Company increased the estimate of the ACL primarily attributable to the deteriorating economic conditions and the potential impact on real estate property valuations and, to a lesser extent, net additions of new loans. During 2021, the Company decreased the estimate of the ACL in response improved economic scenarios, including improved GDP growth and unemployment, and higher property valuations.

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 55% as of December 31, 2023, while the weighted-average LTV ratio at origination of these loans was 59%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2023
	2023			2022			2021			2020			2019			2018 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	—	—x	$	16	1.09x	$	38	1.05x	$	—	—x	$	—	—x	$	105	1.41x	$	159	1.29x
65% - 80%	—		—x	189		2.13x	457		2.42x	95		3.47x	98		1.77x	252		1.77x	1,091		2.25x
Less than 65%	400		1.47x	724		2.75x	1,105		2.99x	527		2.92x	679		2.90x	1,453		2.67x	4,888		2.72x
Total mortgage loans	$	400	1.47x	$	929	2.60x	$	1,600	2.78x	$	622	3.00x	$	777	2.76x	$	1,810	2.47x	$	6,138	2.60x

[1]Amortized cost of mortgage loans excludes ACL of $51.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2022
	2022			2021			2020			2019			2018			2017 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	23	1.40x	$	23	1.40x
65% - 80%	16		2.02x	59		2.61x	43		2.78x	100		1.95x	108		1.11x	117		1.91x	443		1.91x
Less than 65%	839		2.43x	1,475		2.79x	663		3.02x	680		2.77x	437		2.21x	1,476		2.54x	5,570		2.65x
Total mortgage loans	$	855	2.42x	$	1,534	2.78x	$	706	3.01x	$	780	2.66x	$	545	1.99x	$	1,616	2.48x	$	6,036	2.59x

[1]Amortized cost of mortgage loans excludes ACL of $36.


Mortgage Loans by Region
	December 31, 2023				December 31, 2022
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
East North Central	$	368	6.0	%	$	317	5.3	%
Middle Atlantic	238		3.9	%	316		5.2	%
Mountain	699		11.4	%	707		11.7	%
New England	351		5.7	%	395		6.5	%
Pacific	1,326		21.6	%	1,299		21.5	%
South Atlantic	1,776		28.9	%	1,670		27.7	%
West North Central	103		1.7	%	105		1.7	%
West South Central	445		7.2	%	421		7.0	%
Other [1]	832		13.6	%	806		13.4	%
Total mortgage loans	6,138		100.0	%	6,036		100.0	%
ACL	(51)				(36)
Total mortgage loans, net of ACL	$	6,087			$	6,000

[1]Primarily represents loans collateralized by multiple properties in various regions.


Mortgage Loans by Property Type
	December 31, 2023				December 31, 2022
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
Commercial
Industrial	$	2,363	38.5	%	$	2,217	36.7	%
Multifamily	2,200		35.9	%	2,247		37.2	%
Office	578		9.4	%	585		9.7	%
Retail [1]	917		14.9	%	947		15.7	%
Single Family	80		1.3	%	—		—	%
Other	—		—	%	40		0.7	%
Total mortgage loans	6,138		100.0	%	6,036		100.0	%
ACL	(51)				(36)
Total mortgage loans, net of ACL	$	6,087			$	6,000

[1]Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls.

Past-Due Mortgage Loans

Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of December 31, 2023 and December 31, 2022, the Company held no mortgage loans considered past due.

Mortgage Servicing

The Company originates, sells, and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of December 31, 2023, under this program, the Company serviced mortgage loans with a total outstanding principal of $9.4 billion, of which $4.4 billion was serviced on behalf of third parties and $5.0 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. As of December 31, 2022, the Company serviced mortgage loans with a total outstanding principal balance of $9.3 billion, of which $4.4 billion was serviced on behalf of third parties and $4.9 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of December 31, 2023 and December 31, 2022, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities or, at times, as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company

consolidates the VIE in the Company’s Consolidated Financial Statements.

Consolidated VIEs

As of December 31, 2023 and 2022, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2023 and 2022 is limited to the total carrying value of $3.0 billion and $2.6 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets that are primarily recorded using the equity method of accounting. As of December 31, 2023 and 2022, the Company has outstanding commitments totaling $1.7 billion and $1.8 billion, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLO, CMBS, and RMBS and are reported in fixed maturities, AFS, and fixed maturities, FVO, on the Company's Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase

agreements as collateralized financing. As of December 31, 2023 and December 31, 2022, the Company reported $10 and $41, respectively, within short-term investments on the Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of December 31, 2023 and December 31, 2022, the Company pledged collateral of $7 and $7, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 6 - Derivatives of Notes to Consolidated Financial Statements.

Other Restricted Investments

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Lloyd's is an insurance market-place operating worldwide. Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate").

The following table presents the components of the Company’s exposure to other restricted investments.



	December 31, 2023		December 31, 2022
	Fair Value		Fair Value
Securities on deposit with government agencies	$	2,339	$	2,189
Fixed maturities in trust for benefit of Lloyd's Syndicate policyholders	890		718
Short-term investments in trust for benefit of Lloyd's Syndicate policyholders	30		8
Fixed maturities in Lloyd's trust account	154		161
Other investments	75		62
Total Other Restricted Investments	$	3,488	$	3,138

Equity Method Investments

The majority of the Company's investments in limited partnerships and other alternative investments, including real estate joint ventures, real estate funds, private equity funds, and other funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists of investments in insurer-owned life insurance accounted for at cash surrender value. Prior to June 30, 2021, the Company also had a retained 9.7% investment in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"), which was accounted for under the equity method

of accounting and was reported in other assets on the Company's Consolidated Balance Sheets. On June 30, 2021, the Company sold its 9.7% ownership interest in Talcott Resolution and received a total $217 in connection with the sale, resulting in a realized gain on sale of $46 before tax during 2021.

The Company recognized total equity method income of $181, $533, and $630 for the years ended December 31, 2023, 2022 and 2021, respectively. Equity method income is reported in net investment income, except amounts related to strategic investments classified in other assets which are reported in other revenues. For investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2023 is limited to the total carrying value of $4.3 billion. In addition, the Company has outstanding commitments totaling $1.9 billion to fund limited partnership investments as of December 31, 2023. The Company’s investments accounted for under the equity method are generally of a passive nature in that the Company does not take an active role in the management.

In 2023, aggregate investment income from investments accounted for under the equity method exceeded 10% of the

Company’s before tax consolidated net income. Accordingly, the Company is disclosing aggregated, summarized financial data for the Company’s investments accounted for under the equity method based on the most recently available information. This aggregated, summarized financial data does not represent the Company’s proportionate share of investees' assets or earnings. Aggregate total assets of the investees totaled $308.3 billion and $289.9 billion as of December 31, 2023 and 2022, respectively. Aggregate total liabilities of the investees totaled $44.0 billion and $46.8 billion as of December 31, 2023 and 2022, respectively. Aggregate net investment loss of the investees totaled $1.2 billion for the period ended December 31, 2023. Aggregate total investment income of the investees totaled $1.6 billion, and $2.1 billion for the periods ended December 31, 2022 and 2021, respectively. Aggregate net income excluding net investment income of the investees totaled $13.0 billion, $11.9 billion and $46.7 billion for the periods ended December 31, 2023, 2022 and 2021, respectively. As of, and for the period ended, December 31, 2023, the aggregated summarized financial data reflects the latest available financial information.

Derivatives

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

6. DERIVATIVES

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, commodity market, credit spread, issuer default, price, and currency exchange rate or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or debt instruments issued.

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on variable-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the $500 junior subordinated debentures due 2067 to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 14 - Debt.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, equity, and commodity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Interest Rate Swaps and Futures

The Company uses interest rate swaps and futures to manage interest rate duration between assets and liabilities. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of December 31, 2023 and

December 31, 2022, the notional amount of interest rate swaps in offsetting relationships was $6.6 billion for both periods.

Foreign Currency Swaps and Forwards

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars.

Equity Index Options

The Company may enter into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company has also previously entered into covered call options on equity securities to generate additional return.

Commodity Options

The Company previously purchased call option contracts on oil futures in order to partially offset potential changes in value related to certain fixed maturity securities that could arise if oil prices increased substantially.

Derivative Balance Sheet Classification

For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk.

Derivative Balance Sheet Presentation


	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
Hedge Designation/ Derivative Type	Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022		Dec 31, 2023		Dec 31, 2022
Cash flow hedges
Interest rate swaps	$	3,450	$	2,155	$	(1)	$	—	$	1	$	—	$	(2)	$	—
Foreign currency swaps	644		568		13		53		29		57		(16)		(4)
Total cash flow hedges	4,094		2,723		12		53		30		57		(18)		(4)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	6,626		7,245		(5)		(6)		—		2		(5)		(8)
Foreign exchange contracts
Foreign currency swaps and forwards	645		569		—		—		—		—		—		—
Credit contracts
Credit derivatives that purchase credit protection	—		11		—		—		—		—		—		—

Credit derivatives in offsetting positions	998		207		—		—		27		3		(27)		(3)










Total non-qualifying strategies	8,269		8,032		(5)		(6)		27		5		(32)		(11)
Total cash flow hedges and non-qualifying strategies	$	12,363	$	10,755	$	7	$	47	$	57	$	62	$	(50)	$	(15)
Balance Sheet Location
Fixed maturities, AFS	$	645	$	569	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	1,662		9,108		(1)		34		18		38		(19)		(4)
Other liabilities	10,056		1,078		8		13		39		24		(31)		(11)


Total derivatives	$	12,363	$	10,755	$	7	$	47	$	57	$	62	$	(50)	$	(15)

.

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Offsetting amounts include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

Offsetting Derivative Assets and Liabilities


	(i)		(ii)		(iii) = (i) - (ii)				(iv)		(v) = (iii) - (iv)
					Net Amounts Presented in the Statement of Financial Position				Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2023
Other investments	$	57	$	55	$	(1)	$	3	$	—	$	2
Other liabilities	$	(50)	$	(36)	$	8	$	(22)	$	(13)	$	(1)
As of December 31, 2022
Other investments	$	62	$	60	$	34	$	(32)	$	—	$	2
Other liabilities	$	(15)	$	(7)	$	13	$	(21)	$	(7)	$	(1)

[1]Included in other investments in the Company's Consolidated Balance Sheets.

[2]Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3]Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4]Excludes collateral associated with exchange-traded derivative instruments.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the

same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.


Gain (Loss) Recognized in OCI
	Year Ended December 31,
	2023		2022		2021
Interest rate swaps	$	6	$	—	$	4
Foreign currency swaps	(31)		56		24
Total	$	(25)	$	56	$	28


Gain (Loss) Reclassified from AOCI into Income
	Year Ended December 31,
	2023						2022						2021
	Net Realized Gain/(Loss)		Net Investment Income		Interest Expense		Net Realized Gain/(Loss)		Net Investment Income		Interest Expense		Net Realized Gain/(Loss)		Net Investment Income		Interest Expense
Interest rate swaps	$	—	$	(26)	$	15	$	—	$	6	$	(2)	$	—	$	41	$	(10)
Foreign currency swaps	—		10		—		—		9		—		—		5		—
Total	$	—	$	(16)	$	15	$	—	$	15	$	(2)	$	—	$	46	$	(10)

Total amounts presented on the Consolidated Statement of Operations	$	(188)	$	2,305	$	199	$	(627)	$	2,177	$	213	$	509	$	2,313	$	234

As of December 31, 2023, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $18. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. Over that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income or interest expense, as applicable, over the term of the hedged instrument cash flows.

During the years ended December 31, 2023, 2022, and 2021, the Company had no net reclassifications from AOCI to earnings

resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

Non-qualifying Strategies

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses).

Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)


	For the Year Ended December 31,
	2023		2022		2021
Foreign exchange contracts
Foreign currency swaps and forwards	$	—	$	5	$	2
Interest rate contracts
Interest rate swaps, swaptions and futures	(3)		25		3
Credit contracts
Credit derivatives that purchase credit protection	(105)		4		—
Credit derivatives that assume credit risk	—		—		7
Equity contracts
Equity options	—		(2)		—
Commodity contracts
Commodity options	—		14		—




Total [1]	$	(108)	$	46	$	12

[1]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements.

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be

equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk may reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers.

Credit Risk Assumed Derivatives by Type


						Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of December 31, 2023



Basket credit default swaps [4]

Investment grade risk exposure	$	101	$	(1)	5 years	CMBS Credit	AAA	$	101	$	1
Below investment grade risk exposure	396		24		4 years	Corporate Credit	B+	396		(24)
Below investment grade risk exposure	2		(1)		Less than 1 year	CMBS Credit	CCC-	2		1
Total [5]	$	499	$	22				$	499	$	(22)
As of December 31, 2022
Basket credit default swaps [4]





Investment grade risk exposure	$	100	$	(1)	6 years	CMBS Credit	AAA	$	100	$	1
Below investment grade risk exposure	3		(2)		Less than 1 year	CMBS Credit	B-	3		2


Total [5]	$	103	$	(3)				$	103	$	3

[1]The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

[2]Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3]The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

[4]Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[5]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements.

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2023 and 2022, the Company has pledged cash collateral associated with derivative instruments of $25 and less than $1, respectively. In general, collateral receivable is recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of December 31, 2023 and 2022, the Company pledged securities collateral associated with derivative instruments with a fair value of $14 and $8, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities.

In addition, as of December 31, 2023 and 2022, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $16 for both periods, which is recorded in other investments or other assets on the Company's Consolidated Balance Sheets. As of December 31, 2023 and 2022, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $112 and $57, respectively, which are included within fixed maturities on the Company's Consolidated Balance Sheets.

As of December 31, 2023 and 2022, the Company accepted cash collateral associated with derivative instruments of $49 and $56, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2023 and 2022 with a fair value of $0 and $1, respectively, which the Company has the right to repledge or sell. As of December 31, 2023 and 2022, the Company had no repledged securities. In addition, as of December 31, 2023 and 2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

Premiums Receivable

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

Premiums Receivable Note [Text Block]

7. PREMIUMS RECEIVABLE AND AGENTS' BALANCES


Premiums Receivable and Agents' Balances
	As of December 31,
	2023		2022
Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")	$	5,303	$	4,698
Receivables for loss sensitive business, by credit quality:

AA	94		106
A	54		38
BBB	136		119
BB	84		56
Below BB	45		41
Total receivables for loss sensitive business	413		360

Total Premiums Receivable and Agents' Balances, Gross	5,716		5,058
ACL	(109)		(109)
Total Premiums Receivable and Agents' Balances, Net of ACL	$	5,607	$	4,949

ACL on Premiums Receivable and Agents' Balances

Premiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.

A portion of the Company's Commercial Lines business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business"). Under some commercial insurance contracts with a large deductible, the

Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight.

The ACL for receivables for loss sensitive business is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default and the amount of loss given a default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other credit enhancement, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss sensitive business considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 5 - Investments.

During 2021, the ACL on premiums receivable decreased as the provision required on premiums written during the year was more than offset by write-offs and a reduction in the provision, primarily reflecting lessening expected impacts of COVID-19 relative to prior assumptions in certain lines of business.


Rollforward of ACL on Premiums Receivable and Agents' Balances for the Year Ended
	December 31, 2023						December 31, 2022						December 31, 2021
	Receivables Excluding Receivables for Loss Sensitive Business		Receivables for Loss Sensitive Business		Total		Receivables Excluding Receivables for Loss Sensitive Business		Receivables for Loss Sensitive Business		Total		Receivables Excluding Receivables for Loss Sensitive Business		Receivables for Loss Sensitive Business		Total
Beginning ACL	$	85	$	24	$	109	$	83	$	22	$	105	$	117	$	35	$	152
Current period provision (release)	52		(2)		50		48		3		51		17		(13)		4
Current period gross write-offs	(55)		(2)		(57)		(56)		(1)		(57)		(59)		—		(59)
Current period gross recoveries	7		—		7		10		—		10		8		—		8
Ending ACL	$	89	$	20	$	109	$	85	$	24	$	109	$	83	$	22	$	105

Reinsurance

12 Months Ended

Dec. 31, 2023

Insurance [Abstract]

Reinsurance

8. REINSURANCE

The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers.

The Company has two ADC reinsurance agreements in place, both of which are accounted for as retroactive reinsurance. One agreement covers substantially all A&E reserve development for 2016 and prior accident years ("A&E ADC") up to an aggregate limit of $1.5 billion and the other covered substantially all reserve development of Navigators Insurance Company ("NIC") and certain of its affiliates for 2018 and prior accident years (the "Navigators ADC") up to an aggregate limit of $300. As the Company has ceded all of the $300 available limit, there is no remaining limit available under the Navigators ADC. For more information on ADC agreements, see Note 1 - Basis of Presentation and Significant Accounting Policies, and Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses.

Property and Casualty ceded losses, which reduce losses and loss adjustment expenses incurred, were $1,043, $1,338 and $1,243 for the years ended December 31, 2023, 2022 and 2021, respectively.

Group Benefits ceded losses, which reduce losses and loss adjustment expenses incurred, were $93, $81 and $85 for the years ended December 31, 2023, 2022 and 2021, respectively.

Reinsurance Recoverables

Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported ("IBNR") unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses.


Reinsurance Recoverables by Credit Quality Indicator
	As of December 31, 2023								As of December 31, 2022
	P&C		Group Benefits		Corporate		Total		P&C		Group Benefits		Corporate		Total
AM Best Financial Strength Rating
A++	$	2,398	$	—	$	—	$	2,398	$	2,094	$	—	$	—	$	2,094
A+	2,030		251		241		2,522		2,169		239		259		2,667
A	810		1		—		811		763		1		—		764
A-	653		5		—		658		79		6		—		85
B++	2		—		3		5		616		—		2		618
Below B++	22		—		—		22		20		—		—		20
Total Rated by AM Best	5,915		257		244		6,416		5,741		246		261		6,248
Mandatory (Assigned) and Voluntary Risk Pools	208		—		—		208		218		—		—		218
Captives	353		—		—		353		319		—		—		319
Other not rated companies	226		4		—		230		279		5		—		284
Gross Reinsurance Recoverables	6,702		261		244		7,207		6,557		251		261		7,069
Allowance for uncollectible reinsurance	(100)		(1)		(2)		(103)		(102)		(1)		(2)		(105)
Net Reinsurance Recoverables	$	6,602	$	260	$	242	$	7,104	$	6,455	$	250	$	259	$	6,964

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating.

Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. As part of its reinsurance recoverable review, the Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers and the overall credit quality of the Company’s reinsurers.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. The ACL is estimated as the amount of reinsurance recoverables exposed to loss multiplied by estimated factors for the probability of default and the amount of loss given a default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed on a quarterly basis and any significant changes are reflected in an updated estimate. The probability of default

factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.

As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.

The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 5 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital ("RBC") to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults. The decrease in the ACL in 2021 was primarily due to a higher than expected recovery from one reinsurer on which the Company had recognized an ACL.


Allowance for Uncollectible Reinsurance
	As of December 31, 2023		As of December 31, 2022		As of December 31, 2021
P&C beginning allowance for uncollectible reinsurance	$	102	$	96	$	105
Beginning allowance for disputed amounts	60		54		53
P&C beginning ACL	42		42		52
Current period provision (release)	3		—		(9)
Current period gross write-offs	(2)		—		(1)

P&C ending ACL	43		42		42
Ending allowance for disputed amounts	57		60		54
P&C ending allowance for uncollectible reinsurance	100		102		96
Group Benefits allowance for uncollectible reinsurance	1		1		1
Corporate allowance for uncollectible reinsurance	2		2		2
Total allowance for uncollectible reinsurance	$	103	$	105	$	99

Insurance Revenues

Property and Casualty Insurance Revenue


	For the years ended December 31,
Premiums Written	2023		2022		2021
Direct	$	16,144	$	14,891	$	13,696
Assumed	975		718		631
Ceded	(1,642)		(1,490)		(1,378)
Net	$	15,477	$	14,119	$	12,949
Premiums Earned
Direct	$	15,514	$	14,328	$	13,204
Assumed	826		654		568
Ceded	(1,612)		(1,462)		(1,277)
Net	$	14,728	$	13,520	$	12,495

Group Benefits Revenue


	For the years ended December 31,
	2023		2022		2021
Gross earned premiums, fees and other considerations	$	6,445	$	5,988	$	5,663
Reinsurance assumed	174		175		128
Reinsurance ceded	(104)		(106)		(104)
Net earned premiums, fees and other considerations	$	6,515	$	6,057	$	5,687

For its group benefits products, the Company reinsures certain of its risks to other reinsurers under yearly renewable term and coinsurance arrangements and variations thereto. Yearly renewable term and coinsurance arrangements result in passing

a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments.

Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2023

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

9. DEFERRED POLICY ACQUISITION COSTS

Changes in DAC


	For the years ended December 31,
	2023		2022		2021
Balance, beginning of period	$	998	$	874	$	782
Deferred costs	2,159		1,939		1,739
Amortization — DAC	(2,044)		(1,824)		(1,668)
Add back amortization of value of business acquired [1]	—		9		21

Balance, end of period	$	1,113	$	998	$	874

[1]While the value of in-force contracts acquired from the Navigators Group acquisition is included in other intangible assets, the amortization of that asset is recorded as DAC amortization.

Goodwill & Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill & Other Intangible Assets

10. GOODWILL & OTHER INTANGIBLE ASSETS

The carrying value of goodwill allocated to reporting segments as of December 31, 2023 and 2022 was as follows:


	Carrying Value

Commercial Lines	$	659
Personal Lines	119
Hartford Funds	180
Group Benefits	723
Corporate [1]	230
Total	$	1,911

[1]The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2023 and 2022 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively.

The annual goodwill assessment for The Hartford's reporting units was completed as of October 31, 2023 and 2022; all reporting units passed their annual impairment test with a

significant margin and as a result there were no write-downs of goodwill.

Other Intangible Assets


	As of December 31, 2023						As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets:
Customer relationships	$	636	$	(269)	$	367	$	636	$	(225)	$	411
Marketing agreement with Aetna	16		(7)		9		16		(6)		10
Distribution Agreement	79		(72)		7		79		(70)		9
Distribution and Agency relationships & Other	340		(111)		229		340		(87)		253
Total Finite Life Intangibles	1,071		(459)		612		1,071		(388)		683
Total Indefinite Life Intangible Assets	95				95		95				95
Total Other Intangible Assets	$	1,166	$	(459)	$	707	$	1,166	$	(388)	$	778

Expected Before Tax Amortization Expense for Acquired Intangibles as of December 31, 2023


	Other Intangible Assets
2024	$	71
2025	$	71
2026	$	70
2027	$	68
2028	$	64

Reserve for Unpaid Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2023

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Reserve for Unpaid Losses and Loss Adjustment Expenses

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the years ended December 31,
	2023		2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	33,083	$	31,449	$	29,622
Reinsurance and other recoverables	6,465		6,081		5,725
Beginning liabilities for unpaid losses and loss adjustment expenses, net	26,618		25,368		23,897
Provision for unpaid losses and loss adjustment expenses
Current accident year	9,538		8,577		7,911
Prior accident year development [1]	10		36		199
Total provision for unpaid losses and loss adjustment expenses	9,548		8,613		8,110
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	(194)		(229)		(246)
Payments
Current accident year	(2,716)		(2,424)		(2,276)
Prior accident years	(5,926)		(4,678)		(4,119)
Total payments	(8,642)		(7,102)		(6,395)

Foreign currency adjustment	18		(32)		2
Ending liabilities for unpaid losses and loss adjustment expenses, net	27,348		26,618		25,368
Reinsurance and other recoverables	6,696		6,465		6,081
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	34,044	$	33,083	$	31,449

[1]Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.

Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted


	For the years ended December 31,
	2023						2022						2021
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	$	1,255					$	1,343					$	1,405
Amount of discount	339						347						355
Carrying value of liability for unpaid losses and loss adjustment expenses	$	916					$	996					$	1,050
Discount accretion included in losses and loss adjustment expenses	$	42					$	36					$	36
Weighted average discount rate	2.74					%	2.71					%	2.54					%
Range of discount rates	0.83		%	-	14.03	%	0.83		%	-	14.03	%	0.83		%	-	14.03	%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 0.83% for accident year 2020 to 14.03% for accident year 1981.

The reserves recorded for the Company’s property and casualty insurance products at December 31, 2023 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows.

Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

(Favorable) Unfavorable Prior Accident Year Development


	For the years ended December 31,
	2023		2022		2021
Workers’ compensation	$	(236)	$	(204)	$	(190)
Workers’ compensation discount accretion	42		36		35
General liability	41		56		454
Marine	(2)		2		1
Package business	(24)		(39)		(91)
Commercial property	(7)		(11)		(26)
Professional liability	(2)		(11)		(2)
Bond	(27)		(32)		(26)
Assumed reinsurance	34		19		(6)
Automobile liability - Commercial Lines	20		38		9
Automobile liability - Personal Lines	—		(14)		(90)
Homeowners	(6)		(1)		3


Net asbestos and environmental reserves	—		—		—
Catastrophes	(87)		(62)		(154)
Uncollectible reinsurance	13		3		(6)
Other reserve re-estimates, net	57		27		42
Prior accident year development, including full benefit for the ADC cession	(184)		(193)		(47)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	194		229		246
Total prior accident year development	$	10	$	36	$	199

[1]The change in deferred gain for the years ended December 31, 2023, 2022 and 2021 included $194, $229 and $155, respectively of adverse development on A&E reserves in excess of ceded premium paid and included $0, $0 and $91 respectively, of adverse development on Navigators 2018 and prior accident year reserves ceded to NICO, primarily within professional liability, general liability and marine.

2023 re-estimates of prior accident year reserves

Workers’ compensation reserves were decreased within the 2014 to 2020 accident years primarily in small commercial, driven by lower than previously estimated claim

severity. In addition, the majority of the 2020 accident year relates to a $38 reduction of COVID-19 related reserves.

General liability reserves were increased driven by higher frequency and estimated cost to settle large individual claims for the 2016 to 2019 accident years, partially offset by a decrease in reserves for the 2020 accident year due to favorable experience. In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years. Also included was a decrease in reserves for extra contractual liability claims and other miscellaneous run-off lines.

Package business reserves decreased primarily due to lower than previously estimated property severity for accident year 2019 and 2021. Package liability is flat overall with reserve increases related to higher severity across multiple accident years offset by improvement in accident year 2020 due to favorable claim count emergence.

Commercial property reserves decreased primarily due to favorable development for accident years 2018 and 2021. In accident year 2022, unfavorable development in middle & large commercial was offset by favorable development in global specialty.

Professional liability reserves decreased modestly due to favorable development on directors' and officers' ("D&O") claims driven by the 2020 and 2021 accident years, partially offset by deterioration in 2019 and prior accident years experience across errors and omissions and other claims.

Bond reserves decreased primarily due to improvement in fidelity in 2013 and prior accident years, as well as improvement in contract surety in 2019 and prior accident years, partially offset by unfavorable development for 2013 and prior accident years related to customs bonds.

Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America casualty and surety business.

Automobile liability reserves - Commercial Lines increased primarily due to adverse loss development from elevated large loss frequency and severity pressures within middle & large commercial for accident year 2022, as well as unfavorable experience in accident year 2019, partly offset by favorable development in accident years 2020 and 2021.

Automobile liability reserves - Personal Lines were flat as increases for accident year 2022 from higher estimated severity and increasing attorney representation rates were fully offset by decreases, primarily within accident years 2019 to 2021, due to lower estimated severity.

Catastrophe reserves were decreased primarily within Commercial Lines driven by a reduction in reserves in accident year 2022 for Hurricane Ian and accident year 2021 for Hurricane Ida.

Uncollectible reinsurance was increased primarily in Commercial Lines related to a captive reinsurer and, to a lesser extent, an increase in reserves for potential collection disputes and credit concerns.

Other reserve re-estimates, net, were increased primarily due to an increase in unallocated loss adjustment expense ("ULAE") reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves, as well as an increase in accident year 2022 Personal Lines automobile physical damage severity.

Asbestos and environmental reserves were reviewed in fourth quarter 2023 resulting in a $194 increase in reserves before ADC reinsurance, including $156 for asbestos and $38 for environmental. The Company recognized a $194 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

2022 re-estimates of prior accident year reserves

Workers’ compensation reserves were decreased for the 2014 through 2018 accident years, predominately within small commercial, and to a lesser extent in middle & large commercial, driven by lower than previously estimated claim severity and, to a lesser extent, a $14 reduction of COVID-19 related claims from 2020.

General liability reserves were increased, driven by an increase in the estimated cost to settle large individual claims in middle & large commercial for the 2016 to 2019 accident years, an increase in excess casualty and environmental in recent accident years, and increases in primary construction on older accident years, partially offset by a decrease in reserves for other mass torts.

Package business reserves decreased due to lower estimated severity and lower estimated loss adjustment expenses for accident years 2018 and prior, and a reduction in property reserves for the 2020 and 2021 accident years.

Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in middle & large commercial related to COVID-19 claims.

Professional liability reserves were decreased primarily due to favorable development on D&O claims for the 2018 to 2020 accident years and on errors and omissions claims for the 2013 to 2017 accident years, partially offset by large losses related to 2018 and prior accident years for primary and excess D&O claims.

Bond reserves were decreased primarily in contract surety due to favorable development on older accident years.

Assumed reinsurance reserves were increased primarily due to higher reserve estimates for syndicate property claims, including higher expected COVID-19 property losses in the 2020 accident year and increased reserves for international agriculture related to drought claims. Also contributing were reserve increases for Latin America P&C and specialty casualty business in recent accident years.

Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct claims, primarily within accident years 2015 to 2020 and were increased in Commercial Lines principally due to a higher number of large claims in accident years 2017 to 2019, along with decreasing settlement rates and increasing attorney rep rates.

Catastrophes reserves were decreased in both Commercial and Personal Lines with the largest reduction related to 2019 and 2020 wind and hail events.

Asbestos and environmental reserves were reviewed in fourth quarter 2022 resulting in a $229 increase in reserves before ADC reinsurance, including $162 for asbestos and $67 for environmental. The Company recognized a $229 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, were increased primarily due to an increase in ULAE reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves, as well as unfavorable development from participation in involuntary market pools, and increased automobile physical damage severity.

2021 re-estimates of prior accident year reserves

Workers’ compensation reserves were decreased within small commercial and middle & large commercial for the 2013 through 2018 accident years driven by lower than previously estimated claim severity.

General liability reserves were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims. In addition, the Company recognized reserve increases on Navigators’ wholesale construction business for 2018 and prior accident years, largely included within the change in deferred gain on retroactive reinsurance in the above table.

Package business reserves decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims.

Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty.

Professional liability reserves were decreased due to lower estimated severity in both large and middle market D&O insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company D&O insurance for 2019 and

prior accident years, a portion of which is reflected within the change in deferred gain on retroactive reinsurance in the above table.

Bond reserves were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years.

Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct and Agency claims, primarily within accident years 2017 to 2020, and a reduction in estimated reserves for extra contractual liability claims.

Catastrophes reserves were decreased in both Commercial and Personal Lines primarily driven by a reduction in reserves for 2018 and 2019 wind and hail events, lower estimated losses from 2018 and 2020 hurricanes, a reduction in estimated losses from the 2017 and 2018 California wildfires, including an expected recovery of subrogation from a utility related to the 2018 Woolsey wildfire in California, and a reduction in losses relating to the 2020 civil unrest.

Asbestos and environmental reserves were reviewed in fourth quarter 2021 resulting in a $155 increase in reserves before ADC reinsurance, including $106 for asbestos and $49 for environmental. The Company recognized a $155 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, were increased primarily due to an increase in reserves for sexual molestation and sexual abuse claims within P&C Other Operations, principally on assumed reinsurance, as well as an increase in ULAE reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves.

Settlement Agreement with Boy Scouts of America

On February 14, 2022, the Company executed a final settlement agreement (the “Settlement”) with the BSA, the Local Councils, and the attorneys representing a majority of the alleged victims, pursuant to which The Hartford agreed to pay $787 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford Writing Companies in the 1970s and early 1980s. In exchange for its payment, the Company receives a complete release of its policies issued to BSA and the Local Councils, as well as an injunction against further abuse claims involving BSA. All conditions precedent to the Settlement have been satisfied, including approval by the bankruptcy court and the district court, and on April 20, 2023, The Hartford paid the Settlement amount of $787. Certain objecting parties have appealed the district court’s ruling and that appeal is pending before the Third Circuit. If the court approvals for the BSA’s plan of reorganization are not affirmed on appeal, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s operating results.

Adverse Development Covers

The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Commercial Lines and Personal Lines. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit.

Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 results in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of December 31, 2023, the Company has incurred $1,438 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with $62 of available limit remaining under the A&E ADC. As a result, the Company has recorded a

$788 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $1,438 and ceded premium paid of $650. The deferred gain is recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims will result in charges against earnings which may be significant.

Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurance Company and certain of its affiliates (collectively, “Navigators Insurers"). Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018.

As of December 31, 2023, the Company has recorded a reinsurance recoverable under the Navigators ADC of $300 as estimated cumulative loss development on the 2018 and prior accident year reserves has exhausted the treaty limit. While the reinsurance recoverable is $300, the Company has recorded a $209 cumulative deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. Of the $209 of cumulative ceded losses in excess of ceded premium paid, $0, $0 and $91 were recognized as changes in deferred gain in 2023, 2022 and 2021, respectively.

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2023


	Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance										Subtotal
Reserve Line	Cumulative Incurred for Accident Years Displayed in Triangles		Cumulative Paid for Accident Years Displayed in Triangles		Unpaid for Accident Years not Displayed in Triangles		Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance		Discount			Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance		Reinsurance and Other Recoverables		Liability for Unpaid Losses and Loss Adjustment Expenses
Workers' compensation	$	18,050	$	(9,482)	$	3,581	$	388	$	(325)		$	12,212	$	1,651	$	13,863
General liability	8,271		(3,772)		497		172		—			5,168		1,160		6,328
Marine	1,452		(1,182)		11		14		—			295		255		550
Package business	7,856		(5,797)		102		120		—			2,281		54		2,335
Commercial property	4,068		(3,568)		13		27		—			540		271		811
Commercial automobile liability	4,243		(2,945)		21		32		—			1,351		99		1,450
Commercial automobile physical damage	215		(194)		3		1		—			25		—		25
Professional liability	2,846		(1,511)		68		46		—			1,449		734		2,183
Bond	680		(284)		26		36		—			458		14		472
Assumed Reinsurance	1,798		(1,242)		—		6		—			562		44		606
Personal automobile liability	10,874		(9,393)		29		62		—			1,572		27		1,599
Personal automobile physical damage	1,535		(1,462)		7		4		—			84		—		84
Homeowners	6,009		(5,677)		5		35		—			372		4		376
Other ongoing business					170		5		(14)			161		347		508
Asbestos and environmental [1]					340		—		—			340		1,992		2,332
Other operations [1]					317		161		—			478		44		522
Total P&C	$	67,897	$	(46,509)	$	5,190	$	1,109	$	(339)		$	27,348	$	6,696	$	34,044

[1]Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, sexual molestation and sexual abuse and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles.

The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $300 of losses to the Navigators ADC even though $209 of that benefit has been recorded as a deferred gain within other liabilities. The $300 of Navigators Insurers losses ceded to the Navigators ADC and reflected in the following triangles include $95 for professional liability, $105 for general liability, $38 for marine, $27 for assumed reinsurance, $14 for commercial automobile, $3 for commercial property, and $1 for bond. The triangles do not include $17 of losses ceded to the Navigators ADC related to older accident years and lines of business not in the triangles.

The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss

estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development ("PYD") recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred loss triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line.

Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. IBNR reserves shown in loss triangles include reserves for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2023.

Workers' Compensation


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	1,869	$	1,838	$	1,789	$	1,761	$	1,713	$	1,692	$	1,679	$	1,654	$	1,637	$	1,615	$	327	126,753
2015			1,873		1,835		1,801		1,724		1,714		1,699		1,667		1,645		1,625		344		114,644
2016					1,772		1,772		1,780		1,767		1,748		1,708		1,670		1,634		375		112,675
2017							1,862		1,869		1,840		1,822		1,757		1,665		1,635		442		112,215
2018									1,916		1,917		1,915		1,904		1,870		1,836		524		119,524
2019											1,937		1,935		1,934		1,934		1,899		606		120,486
2020													1,865		1,864		1,849		1,808		766		91,762
2021															1,831		1,832		1,831		791		102,180
2022																	2,000		2,001		1,049		112,597
2023																			2,166		1,575		108,987
Total																			$	18,050


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	275	$	598	$	811	$	960	$	1,041	$	1,099	$	1,137	$	1,167	$	1,191	$	1,207
2015			261		576		778		909		1,004		1,068		1,117		1,151		1,179
2016					255		579		779		908		1,003		1,064		1,110		1,145
2017							261		575		778		900		977		1,035		1,087
2018									283		624		837		983		1,090		1,170
2019											291		637		856		1,007		1,129
2020													223		507		695		850
2021															254		562		780
2022																	293		649
2023																			286
Total																			$	9,482

General Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	506	$	475	$	481	$	494	$	513	$	522	$	515	$	505	$	510	$	506	$	33	16,609
2015			556		560		554		594		633		647		637		647		641		51		16,786
2016					613		583		607		632		632		620		636		670		65		17,833
2017							626		614		613		615		613		615		658		92		17,377
2018									692		669		697		703		728		751		158		18,783
2019											822		826		821		839		859		259		18,432
2020													938		923		923		874		496		14,006
2021															1,002		991		983		676		11,943
2022																	1,116		1,110		873		11,167
2023																			1,219		1,173		7,835
Total																			$	8,271


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	15	$	42	$	130	$	214	$	304	$	358	$	402	$	423	$	437	$	456
2015			10		55		156		278		409		477		524		547		564
2016					12		52		131		283		368		446		513		564
2017							15		67		156		255		344		441		506
2018									21		83		177		288		409		512
2019											29		100		192		339		501
2020													45		110		202		308
2021															34		115		209
2022																	26		135
2023																			17
Total																			$	3,772

Marine


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves [1]		Claims Reported
2014	$	164	$	161	$	159	$	166	$	165	$	170	$	169	$	173	$	172	$	168	$	(1)	7,500
2015			159		147		147		149		134		139		141		144		141		—		10,374
2016					140		144		139		149		150		148		150		160		(6)		13,616
2017							154		174		161		160		166		169		176		(3)		16,101
2018									131		147		141		147		153		157		(15)		10,678
2019											139		136		134		129		127		(1)		7,085
2020													145		138		134		138		6		5,108
2021															127		128		119		29		5,161
2022																	140		132		38		4,855
2023																			134		85		3,297
Total																			$	1,452

[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	41	$	81	$	117	$	132	$	152	$	157	$	160	$	162	$	165	$	166
2015			40		86		117		126		134		140		141		143		143
2016					36		81		106		123		132		141		144		147
2017							47		107		134		143		151		162		171
2018									33		95		126		135		142		159
2019											34		80		96		106		115
2020													32		68		90		99
2021															25		63		87
2022																	27		72
2023																			23
Total																			$	1,182

Package Business


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	566	$	578	$	601	$	602	$	603	$	603	$	593	$	581	$	576	$	577	$	18	43,611
2015			582		588		585		583		588		581		567		564		564		15		42,415
2016					655		638		632		625		611		595		591		590		33		44,318
2017							695		702		692		657		644		637		640		43		46,880
2018									719		724		688		667		655		654		60		45,254
2019											813		769		749		744		747		81		43,820
2020													915		893		877		837		147		62,738
2021															946		954		958		235		47,187
2022																	1,038		1,039		317		45,649
2023																			1,250		570		40,286
Total																			$	7,856


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	226	$	345	$	416	$	468	$	507	$	525	$	535	$	542	$	545	$	551
2015			212		332		383		445		486		505		513		530		542
2016					225		353		410		465		500		521		540		545
2017							235		372		447		496		534		561		578
2018									237		402		451		498		537		571
2019											254		413		488		571		626
2020													326		493		573		648
2021															368		556		650
2022																	319		633
2023																			453
Total																			$	5,797

Commercial Property


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	293	$	281	$	282	$	280	$	280	$	280	$	280	$	279	$	279	$	279	$	(1)	21,124
2015			299		301		302		302		306		304		302		302		301		1		21,149
2016					406		420		400		407		409		409		406		406		(1)		24,099
2017							578		516		456		439		441		438		440		3		24,727
2018									450		436		424		403		400		393		(3)		21,916
2019											480		439		418		420		421		—		21,105
2020													501		469		439		437		54		20,573
2021															530		500		463		45		18,285
2022																	497		480		71		17,350
2023																			448		140		15,390
Total																			$	4,068


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	170	$	250	$	270	$	279	$	279	$	279	$	280	$	280	$	280	$	280
2015			179		257		285		296		302		303		302		302		302
2016					215		343		379		396		402		407		407		408
2017							229		378		412		427		433		439		440
2018									188		344		378		385		394		394
2019											215		351		383		405		407
2020													221		336		355		366
2021															241		382		403
2022																	180		369
2023																			199
Total																			$	3,568

Commercial Automobile Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	309	$	317	$	331	$	337	$	341	$	334	$	333	$	332	$	332	$	332	$	4	30,171
2015			308		358		372		356		356		359		360		358		360		6		28,745
2016					385		393		390		391		391		395		395		396		7		29,260
2017							372		383		379		383		381		394		398		2		26,411
2018									349		396		405		406		424		433		21		24,799
2019											425		439		450		460		471		30		28,573
2020													428		424		419		397		79		22,194
2021															440		443		429		157		19,999
2022																	468		500		238		20,384
2023																			527		403		18,107
Total																			$	4,243


Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance
	For the years ended December 31
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	59	$	131	$	197	$	252	$	299	$	309	$	318	$	320	$	325	$	328
2015			62		142		207		267		314		335		344		348		350
2016					65		147		232		303		339		357		379		385
2017							60		134		211		285		328		368		386
2018									62		153		238		305		360		387
2019											67		160		247		327		393
2020													55		119		200		264
2021															55		127		212
2022																	64		171
2023																			69
Total																			$	2,945

Commercial Automobile Physical Damage


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2021		2022		2023		IBNR Reserves		Claims Reported







2021	$	58	$	62	$	61	$	1	15,490
2022			70		74		1		16,713
2023					80		10		15,610
Total					$	215


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2021		2022		2023







2021	$	51	$	61	$	61
2022			59		72
2023					61
Total					$	194

Professional Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Claims Made Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves [1]		Claims Reported
2014	$	187	$	183	$	181	$	178	$	179	$	182	$	183	$	174	$	169	$	167	$	6	6,751
2015			164		174		180		190		214		207		200		197		198		(3)		7,266
2016					183		176		203		197		195		196		194		192		2		8,443
2017							205		203		231		226		239		242		217		5		9,514
2018									244		275		271		271		267		326		47		9,863
2019											295		313		330		347		355		77		9,921
2020													369		363		336		325		156		7,994
2021															339		343		327		207		6,698
2022																	349		355		265		7,033
2023																			384		338		6,725
Total																			$	2,846

[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Claims Made Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	8	$	38	$	74	$	108	$	131	$	135	$	146	$	145	$	151	$	157
2015			9		41		86		108		125		141		164		175		186
2016					8		51		88		111		124		148		167		177
2017							11		48		87		122		149		179		191
2018									15		72		127		161		195		233
2019											21		77		148		198		241
2020													19		71		118		147
2021															15		55		95
2022																	18		64
2023																			20
Total																			$	1,511

Bond


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	71	$	67	$	66	$	67	$	59	$	59	$	60	$	60	$	64	$	62	$	10	1,393
2015			67		67		63		60		54		48		47		42		37		12		1,411
2016					61		61		61		55		51		45		37		34		14		1,344
2017							63		90		101		94		79		70		68		25		1,793
2018									68		68		72		71		70		63		32		1,737
2019											72		73		74		73		71		53		1,890
2020													83		84		79		83		55		2,201
2021															85		85		88		62		2,870
2022																	85		93		42		2,456
2023																			81		71		1,414
Total																			$	680


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	18	$	31	$	40	$	43	$	43	$	44	$	46	$	47	$	52	$	52
2015			9		20		24		31		34		32		30		25		25
2016					2		12		15		20		22		22		22		20
2017							5		46		55		54		42		43		43
2018									6		16		23		24		29		29
2019											3		13		15		16		16
2020													4		12		21		26
2021															8		21		23
2022																	11		42
2023																			8
Total																			$	284

Assumed Reinsurance


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves [1]		Claims Reported
2014	$	119	$	142	$	122	$	118	$	115	$	116	$	116	$	115	$	116	$	116	$	(1)	1,934
2015			102		92		95		94		95		96		96		96		96		(1)		1,723
2016					89		91		98		100		102		102		102		104		(2)		1,975
2017							129		153		162		157		153		155		155		(3)		2,557
2018									128		127		129		134		136		132		(17)		3,026
2019											181		189		186		190		209		22		3,710
2020													183		181		187		179		29		3,177
2021															192		196		204		41		2,431
2022																	266		274		101		1,971
2023																			329		188		977
Total																			$	1,798

[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	66	$	119	$	106	$	109	$	112	$	113	$	115	$	115	$	115	$	116
2015			42		65		77		83		91		94		95		96		96
2016					36		66		85		90		95		97		99		101
2017							44		116		135		145		147		149		151
2018									25		111		133		139		142		144
2019											62		132		153		159		176
2020													50		89		113		133
2021															46		102		133
2022																	60		129
2023																			63
Total																			$	1,242

Personal Automobile Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	1,146	$	1,153	$	1,198	$	1,200	$	1,199	$	1,202	$	1,201	$	1,199	$	1,199	$	1,199	$	5	209,028
2015			1,195		1,340		1,338		1,330		1,331		1,328		1,324		1,320		1,319		3		216,908
2016					1,407		1,402		1,393		1,397		1,395		1,386		1,384		1,384		3		215,868
2017							1,277		1,275		1,228		1,214		1,200		1,198		1,197		6		187,557
2018									1,108		1,104		1,072		1,058		1,056		1,055		22		156,286
2019											1,018		1,010		991		986		971		21		139,723
2020													805		782		775		741		37		96,668
2021															881		886		852		101		101,842
2022																	928		1,018		235		106,927
2023																			1,138		586		99,620
Total																			$	10,874


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	430	$	843	$	1,032	$	1,125	$	1,165	$	1,182	$	1,186	$	1,190	$	1,192	$	1,193
2015			475		935		1,142		1,243		1,292		1,304		1,310		1,313		1,314
2016					505		968		1,188		1,308		1,345		1,363		1,373		1,377
2017							441		836		1,033		1,123		1,161		1,180		1,187
2018									359		710		888		965		1,011		1,028
2019											323		654		816		897		933
2020													238		486		615		679
2021															247		553		691
2022																	301		662
2023																			329
Total																			$	9,393

Personal Automobile Physical Damage


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2021		2022		2023		IBNR Reserves		Claims Reported







2021	$	412	$	413	$	412	$	1	225,735
2022			533		549		10		239,278
2023					574		27		222,805
Total					$	1,535


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2021		2022		2023







2021	$	388	$	411	$	411
2022			498		538
2023					513
Total					$	1,462

Homeowners


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	710	$	707	$	702	$	700	$	698	$	698	$	698	$	698	$	698	$	699	$	—	121,928
2015			690		703		690		684		684		684		684		684		682		—		120,017
2016					669		673		663		658		658		658		658		658		—		119,815
2017							866		889		884		783		775		774		771		5		124,772
2018									903		910		673		642		639		645		11		102,905
2019											501		475		470		468		467		4		84,781
2020													525		512		513		505		12		88,502
2021															502		501		491		14		77,212
2022																	499		507		27		63,841
2023																			584		115		63,662
Total																			$	6,009


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	526	$	663	$	684	$	691	$	695	$	697	$	697	$	698	$	698	$	698
2015			487		645		665		674		680		681		681		682		682
2016					481		621		640		649		653		655		656		657
2017							538		747		795		757		761		762		761
2018									484		712		616		619		627		626
2019											318		425		445		458		460
2020													335		454		478		486
2021															305		440		464
2022																	298		453
2023																			390
Total																			$	5,677

Property and casualty reserves, including IBNR

The Company estimates ultimate losses and allocated loss adjustment expenses ("ALAE") by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for ALAE and ULAE are generally established separate from the reserves for losses.

Reserves for losses are set by line of business within the reporting segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge

more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses.

The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. The

reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates.

For both short-tail and long-tail lines of business, an expected loss ratio ("ELR") is used to record initial reserves. This ELR is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year ("CAY") is initially recorded as the product of the ELR for the period, earned premium for the period and the proportion of losses expected to be reported in future calendar periods for the current accident period. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the ELR for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, including commercial property, homeowners, and automobile physical damage, IBNR amounts in the above loss development triangles are negative in certain accident years due to anticipated salvage and subrogation recoveries on paid losses.

As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the ELR method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the ELR and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as actuarial indications.

Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the ELR method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. The Berquist-Sherman technique is also

used for automobile liability, marine and assumed reinsurance. For most lines, reserves for ALAE, or those expenses related to specific claims) are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. For most of the lines acquired through the Navigators Group book of business, loss and ALAE are reviewed on a combined basis. Reserves for ULAE are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses.

The recorded reserve for losses and loss adjustment expenses represents the Company's best estimate of the ultimate settlement amount of unpaid losses and loss adjustment expenses. In applying judgment, the best estimate is selected after considering the estimates derived from a number of actuarial methods, giving more weight to those methods deemed more predictive of ultimate unpaid losses and loss adjustment expenses. The Company does not produce a statistical range or confidence interval of reserve estimates and, since reserving methods with more credibility are given greater weight, the selected best estimate may differ from the mid-point of the various estimates produced by the actuarial methods used.

Cumulative number of reported claims

For most property and casualty lines, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Similarly, a fire that impacts one commercial building may result in multiple claim features due to the potential for claims related to business interruption, structural damage, and loss of the physical contents of the building. Claim features that result in no paid losses are included in the reported claim counts. For some property and casualty lines, such as marine and assumed reinsurance, a claim count represents each reported claim regardless of the number of features. For assumed bordereau business and business written on binders, one claim count is posted for each bordereau received, which could account for multiple claims.


Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [1]
	(Unaudited)
Reserve Line	1st Year		2nd Year		3rd Year		4th Year		5th Year		6th Year		7th Year		8th Year		9th Year		10th Year
Workers' compensation	14.9	%	18.4	%	12.0	%	8.2	%	5.6	%	3.8	%	2.8	%	2.1	%	1.6	%	1.0	%
General liability	2.7	%	7.6	%	12.7	%	16.7	%	16.6	%	12.3	%	9.0	%	5.1	%	2.7	%	3.9	%
Marine	23.1	%	31.8	%	18.0	%	7.2	%	6.7	%	6.0	%	2.3	%	1.5	%	0.8	%	0.4	%
Package business	36.7	%	22.3	%	10.0	%	9.1	%	6.6	%	3.9	%	2.2	%	1.7	%	1.3	%	1.1	%
Commercial property	50.9	%	32.1	%	7.2	%	3.5	%	1.2	%	0.6	%	0.1	%	0.1	%	—	%	—	%
Commercial automobile liability	14.7	%	19.9	%	19.6	%	16.9	%	12.3	%	6.0	%	3.8	%	1.1	%	1.0	%	0.9	%
Commercial automobile physical damage	79.7	%	17.1	%	(0.2	%)
Professional liability	5.0	%	16.5	%	18.1	%	13.2	%	10.7	%	9.7	%	8.5	%	3.5	%	4.2	%	3.7	%
Bond	11.7	%	24.9	%	9.4	%	6.8	%	0.3	%	(0.4	%)	(0.5	%)	(5.5	%)	4.0	%	—	%
Assumed Reinsurance	30.4	%	35.4	%	10.8	%	5.5	%	4.6	%	1.8	%	1.3	%	1.1	%	0.5	%	0.3	%
Personal automobile liability	33.2	%	34.2	%	16.4	%	8.0	%	3.5	%	1.4	%	0.5	%	0.3	%	0.2	%	0.1	%
Personal automobile physical damage	91.3	%	6.5	%	0.1	%
Homeowners	68.7	%	25.7	%	1.8	%	0.5	%	0.7	%	0.1	%	0.1	%	—	%	—	%	—	%

[1]Negative percentages are generally due to salvage, subrogation or other recoveries.

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the years ended December 31,
	2023		2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,160	$	8,210	$	8,233
Reinsurance recoverables	245		245		237
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,915		7,965		7,996
Provision for unpaid losses and loss adjustment expenses
Current incurral year	5,145		4,853		5,021
Prior year's discount accretion	193		202		201
Prior incurral year development [1]	(502)		(381)		(458)
Total provision for unpaid losses and loss adjustment expenses [2]	4,836		4,674		4,764
Payments
Current incurral year	(2,575)		(2,456)		(2,631)
Prior incurral years	(2,156)		(2,268)		(2,164)
Total payments	(4,731)		(4,724)		(4,795)
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,020		7,915		7,965
Reinsurance recoverables	254		245		245
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,274	$	8,160	$	8,210

[1]Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[2]Includes unallocated loss adjustment expenses of $182, $185 and $179 for the years ended December 31, 2023, 2022 and 2021, respectively, that are recorded in insurance operating costs and other expenses in the Consolidated Statements of Operations.

Group Life, Disability and Accident Products Reserves, Net of Reinsurance, that are Discounted


	For the years ended December 31,
	2023						2022						2021
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	$	8,150					$	8,124					$	8,176
Amount of discount	(1,166)						(1,205)						(1,304)
Carrying value of liability for unpaid losses and loss adjustment expenses	$	6,984					$	6,919					$	6,872
Weighted average discount rate	3.2					%	3.2					%	3.3					%
Range of discount rate	2.1		%	-	8.0	%	2.1		%	-	8.0	%	2.1		%	-	8.0	%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 2.1% for life and disability reserves acquired from Aetna based on interest rates in effect at the acquisition date of November 1, 2017, to 8.0% for the Company’s pre-acquisition reserves for incurral year 1990, and vary by product. Prior year's discount accretion has been calculated as the average reserve balance for the year times the weighted average discount rate.

2023 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $457 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $36 largely driven by continued low incidence in group life premium waiver.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $9 driven by lower than previously expected claim incidence.

2022 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $325 largely driven by group long-term disability claim incidence lower than prior assumptions, strong recoveries on prior incurral year claims and higher estimated claim termination rates.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $50 largely driven by continued low incidence in group life premium waiver as well as a reduction in the estimation of high level of mortality losses incurred in fourth quarter 2021.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $6 driven by lower-than-previously expected claim incidence.

2021 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $380 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims, and by a New York Paid Family Leave risk adjustment benefit.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental loss of life and severe injury benefits.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower-than-expected emergence of prior year claims, especially for voluntary critical Illness and voluntary accident products.

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses as of December 31, 2023


	Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance										Subtotal
Reserve Line	Cumulative Incurred for Incurral Years Displayed in Triangles		Cumulative Paid for Incurral Years Displayed in Triangles		Unpaid for Incurral Years not Displayed in Triangles		Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance		Discount		Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance		Reinsurance and Other Recoverables		Liability for Unpaid Losses and Loss Adjustment Expenses
Group long-term disability	$	14,262	$	(8,187)	$	1,434	$	200	$	(1,089)	$	6,620	$	243	$	6,863
Group life and accident, excluding premium waiver	6,525		(5,934)		157		5		(14)		739		5		744
Group short-term disability					148		9		—		157		—		157
Group life premium waiver					523		10		(63)		470		2		472
Group supplemental health					34		—		—		34		4		38
Total Group Benefits	$	20,787	$	(14,121)	$	2,296	$	224	$	(1,166)	$	8,020	$	254	$	8,274

The following loss triangles present historical loss development for incurred and paid claims by the year the insured claim occurred, referred to as the incurral year. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed.

Changes in reserve development evident in the incurred loss triangles differ from prior accident year development recorded by the Company as shown in the reserve rollforward above as the triangles are presented on an undiscounted basis and exclude ULAE.

Group Long-Term Disability


Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR Reserves		Claims Reported
2014	$	1,636	$	1,473	$	1,430	$	1,431	$	1,431	$	1,408	$	1,395	$	1,389	$	1,382	$	1,382	$	—	31,783
2015			1,595		1,442		1,422		1,420		1,401		1,385		1,380		1,380		1,380		—		32,750
2016					1,651		1,481		1,468		1,437		1,417		1,409		1,401		1,400		—		33,296
2017							1,597		1,413		1,358		1,316		1,304		1,296		1,289		—		30,923
2018									1,647		1,387		1,309		1,277		1,276		1,271		—		28,426
2019											1,650		1,424		1,327		1,284		1,287		1		27,458
2020													1,686		1,407		1,323		1,282		1		25,848
2021															1,768		1,521		1,417		5		27,071
2022																	1,842		1,566		35		25,580
2023																			1,988		1,009		17,404
Total																			$	14,262


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	103	$	448	$	675	$	801	$	884	$	960	$	1,025	$	1,079	$	1,122	$	1,164
2015			108		460		687		806		891		962		1,025		1,078		1,125
2016					112		479		705		819		907		981		1,043		1,100
2017							109		452		658		757		842		911		970
2018									105		447		639		743		827		897
2019											101		454		650		751		832
2020													100		458		663		767
2021															101		493		720
2022																	101		496
2023																			116
Total																			$	8,187

Group Life and Accident, excluding Premium Waiver


Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Incurral Year	2021		2022		2023		IBNR Reserves		Claims Reported
2021	$	2,384	$	2,365	$	2,364	$	14	69,915
2022			2,061		2,053		26		71,604
2023					2,108		407		57,414
Total					$	6,525


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Incurral Year	2021		2022		2023
2021	$	1,764	$	2,320	$	2,344
2022			1,562		2,018
2023					1,572
Total					$	5,934

Group life, disability and accident reserves, including IBNR

The majority of Group Benefits’ reserves are for LTD claimants who are known to be disabled and are currently receiving benefits. A Disabled Life Reserve ("DLR") is calculated for each LTD claim. The DLR for each claim is the expected present value of all estimated future benefit payments and includes estimates of claim recovery, investment yield, and offsets from other income, including offsets from Social Security benefits and workers’ compensation. Estimated future benefit payments represent the monthly income benefit that is paid until recovery, death or expiration of benefits. Claim recoveries are estimated based on claim characteristics such as age and diagnosis and represent an estimate of benefits that will terminate, generally as a result of the claimant returning to work or being deemed able to return to work. The DLR also includes a liability for payments to claimants who have not yet been approved for LTD. In these cases, the present value of future benefits is reduced for the likelihood of claim denial based on Company experience. For claims recently closed due to recovery, a portion of the DLR is retained for the possibility that the claim reopens upon further evidence of disability. In addition, a reserve for estimated unpaid claim expenses is included in the DLR.

For incurral years with IBNR claims, estimates of ultimate losses are made by applying completion factors to the dollar amount of claims reported or expected depending on the market segment. IBNR represents estimated ultimate losses less both DLR and cumulative paid amounts for all reported claims. Completion factors are derived using standard actuarial techniques using triangles that display historical claim count emergence by incurral month. These estimates are reviewed for reasonableness and are adjusted for current trends and other factors expected to cause a change in claim emergence. The IBNR includes an estimate of unpaid claim expenses, including a provision for the cost of initial set-up of the claim once reported.

For all products, including LTD, there is a period generally ranging from two to twelve months, depending on the product and market segment, where emerged claim information for an incurral year is not yet credible enough to be a basis for an IBNR projection. In these cases, the ultimate losses and allocated loss adjustment expenses are estimated using earned premium multiplied by an expected loss ratio.

The Company also records reserves for future death benefits under group term life policies that provide for premiums to be waived in the event the insured is unable to work due to disability and has satisfied an elimination period, which is typically nine months (premium waiver reserves). The death benefit reserve for these group life premium waiver claims is estimated for a known disabled claimant equal to the present value of expected future cash outflows (typically a lump sum face amount payable at death plus claim expenses) with separate estimates for claimant recovery (when no death benefit is payable) and for death before recovery or benefit expiry (when death benefit is payable). The IBNR for premium waiver death benefits is estimated with standard actuarial development methods.

In addition, the Company also records reserves for group term life, accidental loss of life and severe injury, short-term disability, and other group products that have short claim payout periods. For these products, reserves are determined using paid or reported actuarial development methods. The resulting claim triangles produce a completion pattern and estimate of ultimate loss. IBNR for these lines of business equals the estimated ultimate losses and loss adjustment expenses less the amount of paid or reported claims depending on whether the paid or reported development method was used. Estimates are reviewed for reasonableness and are adjusted for current trends or other factors that affect the development pattern.

Cumulative number of reported claims

For group life, disability and accident coverages, claim counts include claims that are approved, pending approval and terminated and exclude denied claims. Due to the nature of the claims, one claimant represents one event.


Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
	(Unaudited)
	1st Year		2nd Year		3rd Year		4th Year		5th Year		6th Year		7th Year		8th Year		9th Year		10th Year
Group long-term disability	7.5	%	26.5	%	15.9	%	8.2	%	6.3	%	5.4	%	4.6	%	3.9	%	3.3	%	3.0	%
Group life and accident, excluding premium waiver	75.1	%	22.8	%	1.0	%

12. RESERVE FOR FUTURE POLICY BENEFITS


Rollforward of Reserve for Future Policy Benefits
	For the year ended December 31,
	2023						2022						2021
	Payout Annuities		Life Conversions		Paid-up Life		Payout Annuities		Life Conversions		Paid-up Life		Payout Annuities		Life Conversions		Paid-up Life
Present Value of Expected Net Premiums
Balance, beginning of the period			$	47					$	58					$	52
Balance, ending of the period			$	49					$	47					$	58

Present Value of Expected Future Policy Benefits
Beginning balance at single-A rate	$	140	$	112	$	192	$	188	$	152	$	262	$	206	$	167	$	293
Beginning adjustment for changes in single-A rate	4		(14)		(39)		47		19		14		59		26		29
Beginning balance at original discount rate	136		126		231		141		133		248		147		141		264
Effect of changes in cash flow assumptions	(2)		—		—		—		—		—		—		—		—
Effect of actual variances from expected experience	1		7		(1)		—		5		—		—		11		(1)
Adjusted beginning balance	135		133		230		141		138		248		147		152		263
Interest accrual and other	7		20		8		8		17		7		7		19		7
Benefit Payments	(12)		(29)		(21)		(13)		(29)		(24)		(13)		(38)		(22)
Ending balance at original discount rate	130		124		217		136		126		231		141		133		248
Ending adjustment for changes in single-A rate	7		(11)		(32)		4		(14)		(39)		47		19		14
Ending balance at single-A rate	$	137	$	113	$	185	$	140	$	112	$	192	$	188	$	152	$	262

Net reserve for future policy benefits	$	137	$	64	$	185	$	140	$	65	$	192	$	188	$	94	$	262
Weighted-average duration of the reserve for future policy benefits (years)	9.0		12.2		6.4		9.2		11.4		6.4		9.2		15.5		8.2


Net Reserve for Future Policy Benefits
	As of December 31,
	2023		2022		2021
Payout Annuities	$	137	$	140	$	188
Life Conversions	64		65		94
Paid-up Life	185		192		262
Deferred Profit Liability	20		19		20
Other	78		86		82
Total	$	484	$	502	$	646


Undiscounted Expected Future Gross Premiums and Benefit Payments
	As of December 31,
	2023		2022		2021
Payout Annuities [1]
Expected future benefit payments	$	257	$	272	$	283
Life Conversions
Expected future gross premiums	$	114	$	120	$	131
Expected future benefit payments	$	204	$	212	$	225
Paid-up Life [1]
Expected future benefit payments	$	281	$	300	$	324

[1]Payout Annuities and Paid-up Life have no expected future gross premiums.


Weighted-Average Interest Rates
	For the year ended December 31,
	2023		2022		2021
Payout Annuities
Interest accretion rate	5.6	%	5.6	%	5.6	%
Current discount rate	5.0	%	5.3	%	2.8	%
Life Conversions
Interest accretion rate	4.2	%	4.1	%	4.1	%
Current discount rate	5.1	%	5.3	%	2.9	%
Paid-up Life
Interest accretion rate	2.9	%	2.9	%	2.9	%
Current discount rate	5.0	%	5.2	%	2.1	%

The Company completed a review of cash flow assumptions in the third quarter 2023, resulting in immaterial changes to the reserve for future policy benefits. For payout annuities, the net effect of updating cash flow assumptions was partially offset by a corresponding impact to the deferred profit liability. Gross premiums and interest accretion recognized on long-duration insurance policies for the years ended December 31, 2023, 2022 and 2021 were immaterial.

Reserve for Future Policy Benefits

12 Months Ended

Dec. 31, 2023

Insurance Loss Reserves [Abstract]

Reserve for Future Policy Benefits

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the years ended December 31,
	2023		2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	33,083	$	31,449	$	29,622
Reinsurance and other recoverables	6,465		6,081		5,725
Beginning liabilities for unpaid losses and loss adjustment expenses, net	26,618		25,368		23,897
Provision for unpaid losses and loss adjustment expenses
Current accident year	9,538		8,577		7,911
Prior accident year development [1]	10		36		199
Total provision for unpaid losses and loss adjustment expenses	9,548		8,613		8,110
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	(194)		(229)		(246)
Payments
Current accident year	(2,716)		(2,424)		(2,276)
Prior accident years	(5,926)		(4,678)		(4,119)
Total payments	(8,642)		(7,102)		(6,395)

Foreign currency adjustment	18		(32)		2
Ending liabilities for unpaid losses and loss adjustment expenses, net	27,348		26,618		25,368
Reinsurance and other recoverables	6,696		6,465		6,081
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	34,044	$	33,083	$	31,449

[1]Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.

Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted


	For the years ended December 31,
	2023						2022						2021
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	$	1,255					$	1,343					$	1,405
Amount of discount	339						347						355
Carrying value of liability for unpaid losses and loss adjustment expenses	$	916					$	996					$	1,050
Discount accretion included in losses and loss adjustment expenses	$	42					$	36					$	36
Weighted average discount rate	2.74					%	2.71					%	2.54					%
Range of discount rates	0.83		%	-	14.03	%	0.83		%	-	14.03	%	0.83		%	-	14.03	%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 0.83% for accident year 2020 to 14.03% for accident year 1981.

The reserves recorded for the Company’s property and casualty insurance products at December 31, 2023 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows.

Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

(Favorable) Unfavorable Prior Accident Year Development


	For the years ended December 31,
	2023		2022		2021
Workers’ compensation	$	(236)	$	(204)	$	(190)
Workers’ compensation discount accretion	42		36		35
General liability	41		56		454
Marine	(2)		2		1
Package business	(24)		(39)		(91)
Commercial property	(7)		(11)		(26)
Professional liability	(2)		(11)		(2)
Bond	(27)		(32)		(26)
Assumed reinsurance	34		19		(6)
Automobile liability - Commercial Lines	20		38		9
Automobile liability - Personal Lines	—		(14)		(90)
Homeowners	(6)		(1)		3


Net asbestos and environmental reserves	—		—		—
Catastrophes	(87)		(62)		(154)
Uncollectible reinsurance	13		3		(6)
Other reserve re-estimates, net	57		27		42
Prior accident year development, including full benefit for the ADC cession	(184)		(193)		(47)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	194		229		246
Total prior accident year development	$	10	$	36	$	199