The Hartford Insurance Group, Inc. · NYSE:HIG
The Hartford Insurance — Hartford Financial Services Group — Proxy Contest (May 2022)
22 slides from The Hartford Insurance's proxy contest presentation, May 2, 2022
Slide 1: Spring 2022 Shareholder Engagement
SPRING 2022 SHAREHOLDER ENGAGEMENT
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Some of the statements in this presentation, including those related to our goal of achieving net zero greenhouse gas emissions (“GHGe”) for the full range of our operations by 2050, may be considered forward-looking statements as defined in the Private Securities Litigation Re
Slide 3: About The Hartford
ABOUT THE HARTFORD © 2022 by The Hartford. Classification: Company Confidential. No part of this document may be reproduced, published, or used without the permission of The Hartford.
Slide 4: The Hartford is a diversified insurer with market leadership in a strong portfolio of businesses
THE HARTFORD IS A DIVERSIFIED INSURER WITH MARKET LEADERSHIP IN A STRONG PORTFOLIO OF BUSINESSES Market leader in desirable segments with high return characteristics Strong, consistent results across diversified businesses with significant contribution from investment portfolio Core strengths of und
Slide 5: Our portfolio is made up of complementary underwriting businesses all contributing to our success
OUR PORTFOLIO IS MADE UP OF COMPLEMENTARY UNDERWRITING BUSINESSES ALL CONTRIBUTING TO OUR SUCCESS Commercial Lines Personal Lines Group Benefits Accelerating growth across the portfolio through: Exceptional talent & execution • Deep underwriting & risk management expertise • Investments in claims, d
Slide 6: We have a clear roadmap to generate superior risk-adjusted returns
WE HAVE A CLEAR ROADMAP TO GENERATE SUPERIOR RISK-ADJUSTED RETURNS Accelerate profitable Unwavering focus on ROE Consistent generator of Ethical culture supported organic growth across performance, driven by excess capital, optimizing by industry-leading all businesses underwriting excellence superi
Slide 7: In 2021 we delivered strong execution
IN 2021 WE DELIVERED STRONG EXECUTION GROWTH: » P&C net written premium growth of 9% including 12% in Commercial Lines Book Value Per Diluted Share PROFITABILITY: » P&C combined ratio of 96.3 improved 0.1 points from 2020, underlying $51.36 $50.39 combined ratio1 of 89.4 improved 3.0 points from 202
Slide 8: About the Green Century Proposal
ABOUT THE GREEN CENTURY PROPOSAL
Slide 9: Executive Summary
EXECUTIVE SUMMARY Green Century Capital Management has submitted a shareholder proposal purportedly seeking new policies to help ensure that our underwriting practices do not support new fossil fuel supplies. We ask you to consider the following as you vote on the proposal: 1 The Hartford is a leade
Slide 10: The Hartford is a leader in the insurance industry in its efforts to address climate change
THE HARTFORD IS A LEADER IN THE INSURANCE INDUSTRY 1 IN ITS EFFORTS TO ADDRESS CLIMATE CHANGE AND SUPPORT THE GLOBAL ENERGY TRANSITION 2021 CLIMATE ACTIONS » Made progress ahead of targets on implementation of 2019 Coal and Tar Sands Policy with respect to insuring and investing in coal and tar sand
Slide 11: In April 2022 we announced a goal to achieve net zero greenhouse gas emissions by 2050
IN APRIL 2022 WE ANNOUNCED A GOAL TO ACHIEVE NET ZERO GREENHOUSE 2 GAS EMISSIONS FOR OUR FULL RANGE OF BUSINESSES AND OPERATIONS BY 2050, IN ALIGNMENT WITH THE PARIS CLIMATE ACCORD NEWS RELEASE »We are embracing ESG principles throughout the organization The Hartford Announces Goal Of Net Zero Green
Slide 12: Divestiture-first strategies are not an effective path to net zero
DIVESTITURE-FIRST STRATEGIES ARE NOT AN EFFECTIVE 3 PATH TO NET ZERO » An abrupt withdrawal from supporting energy companies is counterproductive to the global goal of net zero › The proposal effectively prohibits the underwriting of green energy projects by consolidated energy companies, as facilit
Slide 13: The proposal would create regulatory risk and complexity without any benefit
THE PROPOSAL WOULD CREATE REGULATORY RISK AND COMPLEXITY 4 WITHOUT ANY BENEFIT Insurers face an inordinately complex regulatory environment, consisting of federal and 50-state oversight, and exposure to some rules that conflict with the goals of the Green Century proposal FEDERAL STATE » The SEC has
Slide 14: The proposal would encroach upon The Hartford's underwriting judgment
THE PROPOSAL WOULD ENCROACH UPON THE HARTFORD’S 5 UNDERWRITING JUDGMENT » The purpose of the Green Century proposal is to limit our underwriting judgment going forward » Our commitment to risk assessment as the driver of underwriting and pricing is fundamental to what we do and what our regulators e
Slide 15: The proposal runs counter to shareholder sentiment and direct feedback
THE PROPOSAL RUNS COUNTER TO SHAREHOLDER SENTIMENT 6 AND THE DIRECT FEEDBACK WE HAVE HEARD DURING OUR REGULAR DISCUSSIONS WITH SHAREHOLDERS » Since 2011, we have engaged our largest investors annually to discuss issues that are important to them prior to proxy season » Our environmental initiatives
Slide 16: Key Takeaways
KEY TAKEAWAYS As a 212-year old insurer and asset manager, we view the transition to a greener society as a business imperative and are committed to progress We are a recognized leader in ESG, are committed to maintaining our leadership position, and have several carbon-reducing initiatives in place
Slide 17: Appendix – Non-GAAP Financial Measures
APPENDIX – NON-GAAP FINANCIAL MEASURES
Slide 18: Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures
Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing The Hartford's operating performance for the periods presented herein. Because The Hartford's calculation of these measures may d
Slide 19: Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures
Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisiti
Slide 20: Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures
Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures Underlying loss and loss adjustment expense ratio before COVID-19 losses - This non-GAAP financial measure of the loss and loss adjustment expense ratio for Commercial Lines represents the loss and loss adjustment expense ratio b
Slide 21: Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures
Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by
Slide 22: Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures
Appendix: Discussion and Reconciliation of Non-GAAP Financial Measures Core earnings return on equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non- GAAP financial measures. Core earnings ROE is calculated by dividi
Hartford Financial Services Group — Proxy Contest (May 2022) on 6ix