This is a summary of the fourth quarter fiscal 2006 earnings call conducted by The Hartford Financial Services Group Inc. (HIG: chart) on January 26, 2007

- Management:

- VP: Kimberly Johnson
- Assistant VP: John Reilly

Key Investor Issues:

- Total revenues were$7.58 billion down from $7.71 billion in the prior year.
- Net income rose 68% to $783 million or $2.42 a share
- The firm had 15% growth in book value per share and a return on equity of more than 16%.

Full Year Highlights:

-Net income was $2.7 billion or $8.69 a share, up by 21%
- The low catastrophe costs and strong underlying performance led to an outstanding combined ratio of 89.3 percent.
- In life operations, more than $12 billion of positive net flows in 2006.

Fourth Quarter Highlights:

Net income was up 68% to $783 million or $2.43 a share compared to $467 million or $1.51 a share in the prior year reflecting a $76 million after tax charge related to the company’s revision of its estimates of future gross profits.

- Growth in book value per share plus dividends averaged over 19% per year.
- Core earnings rose to $768 up 28% compared to the one recorded in the same period the previous year in both Property/Casualty and Life operations being driven by strong underlying performance in each of major business segments.
- Total written premium in ongoing operations rose 2% over 2005 to $10.7 billion.

Retail mutual funds had a phenomenal year with over $11 billion in deposits and $5.7 billion in net flows, while mutual fund sales hit $3.1 billion.

- This was driven by seasoning of dedicated wholesaling team, strong fund performance and attractive fixed income products which drove sales gains.
- Variable annuity sales rebounded to $3.1 billion, 26% higher than the year ago period and despite net flows, variable annuity assets under management rose 9% year-over-year.
- New lifetime income riders introduced in August gained traction.

Total mutual fund assets under management rose by 33% to $40 billion

- Retirement plans deposits reached $5.5 billion for the year and assets under management rose by 21%, mostly being driven by 401K business, which now provides solutions for over 16,000 plans and 800,000 participants.
- The company launched two new products; a 401K plan targeted to mid-sized businesses and a product addressing the 403B market.
- HIG had 4.4 billion of net flows and 20% growth in assets under management, while total sales in Japan came in at $1.2 billion.

The company faced increased competition for new deposits but global financial markets provided Hartford''s variable annuity customers in Japan with attractive returns.

- Account values grew an average of 6.6% before contract fees.
- A total of 42% of 2006 sales to employer markets were sales to existing customers.
- Combined ratio for business insurance was 87.9% and specialty commercial ended the year with an excellent combined ratio of 95.9.

Cash flows were above $12 billion of net flows across wealth management businesses driving assets under management in these businesses to $283 billion.

- The company is capitalizing on the opportunity to provide innovative solutions for large and growing retirement markets in both the US and Japan.
- AARP members generated 9% growth in written premium, while personal lines agency business grew 6% over the fourth quarter of 2005.
-The firm continued to see favorable frequency and modest loss costs increases during the fourth quarter.

As a result, underwriting margins remained strong through year-end, helping to drive an excellent combined ratio of 88.6% for the full year.

- The core earnings impact was a charge of $30 million after tax. A $13 million impact was recorded in corporate and life operations core earnings were reduced by $17 million per DAC and related adjustments.
- The company had favorable development in both current and prior accident years in P&C ongoing operations.

Segmental Analysis