Hartford Financial Services Group Inc. - FXDFR DB REDEEM 15/04/2042 USD 25

Strong Q3 operating performance (good): Core earnings were $956M ($3.50/share) with 17.9% trailing 12-month core ROE; Book value per share ex-AOCI $82.47 (+12% YoY). Business Insurance delivered +6% written premium with 90.1 underlying combined ratio; Personal Insurance underlying combined ratio was 87.1 with pricing improving vs loss trends; Employee Benefits had 6.4% core earnings margin.

Segment highlights + underwriting drivers (good with some headwinds): - Small Business: +7% premium growth and an exceptional 85.2 combined ratio (including favorable non-cat property). Management emphasized durability of underlying performance but noted non-cat property can move quarter-to-quarter. - Middle/Large: +3% premium growth, but 99.5 combined ratio due to higher non-cat property losses and workers’ comp frequency. - Global Specialty: +7% premium growth, mid-80s combined ratio (strong and steady). - Pricing: Business insurance renewal pricing (ex workers’ comp) down 40 bps to 5.3%; overall BI renewal written pricing 4.0% (workers’ comp pricing slightly improving and still positive).

Workers’ comp frequency is the key risk area (bad/uncertain): Management said frequency increases are broad-based across the book (not tied to geography/size/industry) and linked to structural factors (e.g., healthcare cost pressure, ACA subsidy expirations, affordability challenges) that are showing up in workers’ comp. For Q3, comp contributed a bit over ~1 point to BI combined ratio impact; Beth clarified the “run rate” is ~½ point based on 9M, but the company frames this as a step-change in 2026, with uncertainty on persistence beyond year-end.