Hartford Proxy 2018
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THE HARTFORD DOING THE RIGHT THING. IMPACTING THE WORLD AROUND US. It’s fundamental to our culture: Doing the right thing every day and in every situation. And while our efforts do REPORT ANNUAL AND 2017 STATEMENT MEETING OF SHAREHOLDERS, PROXY ANNUAL OF 2018 NOTICE award us recognition, the real reward is the impact we make on our employees, our customers and our communities. World’s Most Ethical Companies®, Ethisphere Institute (2018) Best Place to Work for Lesbian, Gay, Bisexual and Transgender (LGBT) Equality, Human Rights Campaign, Corporate Equality Index (2017) Military Friendly Employer, Military Times (2017) 2017 Bloomberg Financial Services Gender-Equality Index (BFGEI) The Hartford Named A Best Employer For Healthy Lifestyles®, National Business Group (2017) 100% Disability Equality Index, Best Place to Work (2017) LEARN MORE ABOUT US AT thehartford.com/our-company NOTICE OF 2018 ANNUAL MEETING OF SHAREHOLDERS, PROXY STATEMENT AND 2017 ANNUAL REPORT FOLLOW THE HARTFORD ON THE HARTFORD IS THE OFFICIAL DISABILITY INSURANCE SPONSOR OF U.S. PARALYMPICS 1 Based on The Hartford’s internal reporting as of December 2017 combined with the Aetna acquisition. 2 Customer reviews were collected and tabulated by The Hartford and reviews are not representative of all customers. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing companies, Hartford Fire Insurance Company, Hartford Life Insurance Company and Hartford Life and Accident Insurance Company. Its headquarters is in Hartford, CT. 17-1329 © February 2018 The Hartford 36USC220506 334622_Hartford_2018_Proxy_Cover_R1.indd 2-4 3/28/18 10:08 PM RINGING IN ANOTHER YEAR OF OUR COMMITMENT TO FIRE SAFETY. This past year saw The Hartford celebrate 70 years of our Junior This year is the second of our three-year commitment to Fire Marshal® program. We commemorated the milestone with donate $2 million to educate 1.5 million children about fire ringing The Closing Bell® at the New York Stock Exchange. prevention safety in the 100 U.S. cities with the highest Our Chairman and CEO Chris Swift was joined by our Chief home fire risk as identified in The Hartford’s Home Fire Financial Officer Beth Bombara and Chief Marketing and Index. In addition to the financial contribution, The Hartford Communications Officer Kathy Bromage along with members of will distribute free Junior Fire Marshal kits to each K-3 the FDNY and five students from the Bronx to raise awareness classroom in the public school districts in those 100 cities of the importance of fire safety because together we prevail. through 2019. The goal is to keep families safe from fire by teaching children the basics of fire prevention and personal The Hartford’s been committed to fire safety since we started fire safety. We haven’t done this alone. Working together as a fire insurance company in 1810. And that commitment is with educators, parents and local fire officials has helped stronger than ever as we enter 2018 and begin the 71st year of strengthen our mission. our Junior Fire Marshal program – one of the country’s oldest corporate-sponsored public education programs. Learn more at thehartford.com/jfm. ON THE COVER: Oksana Masters, U.S. Paralympian, Nordic Skiing We believe that when you’re willing to push boundaries, you can move mountains – that’s the will to prevail. It’s inside each and every one of us. It’s what drives athletes like Oksana Masters. And it’s the reason we’re a proud founding partner and official disability insurance sponsor of U.S. Paralympics – because it’s that same will that drives us in helping over 20 million Americans overcome challenges every day.1 She will. We will, too. Discover more at thehartford.com/willtoprevail. Together We PrevailTM + + 1MM 30 SMALL BUSINESS YEARS CUSTOMERS Since 1810, The Hartford Dedicated specialists to has been helping small support small businesses businesses prevail 4.8 STAR CLAIMS EXPERIENCE2 334622_Hartford_2018_Proxy_Cover_R1.indd 5-7 3/28/18 10:08 PM NOTICE OF 2018 ANNUAL MEETING OF SHAREHOLDERS Date and Time VOTING Wednesday, May 16, 2018 12:30 p.m. EDT Location One Hartford Plaza Hartford, CT 06155 By internet By toll-free telephone On behalf of the Board of Directors, I am pleased to invite you www.proxyvote.com 1-800-690-6903 to attend the Annual Meeting of Shareholders of The Hartford Financial Services Group, Inc. to be held in the Wallace Stevens Theater at our Home Office at 12:30 p.m. EDT. Voting Items Shareholders will vote on the following items of business: By mail 1. Elect a Board of Directors for the coming year; Follow instructions on In person your proxy card At the Annual Meeting 2. Ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2018; IMPORTANT INFORMATION IF YOU PLAN TO ATTEND THE MEETING IN PERSON: 3. Consider and approve, on a non-binding, advisory basis, the compensation of our named executive officers as Please remember to bring your ticket and government issued disclosed in this proxy statement; and ID! Shareholders can obtain an admission ticket and directions to the meeting by contacting our Investor Relations 4. Act upon any other business that may properly come Department: before the Annual Meeting or any adjournment thereof. Email: [email protected] Record Date Telephone: (860) 547-2537 You may vote if you were a shareholder of record at the close of business on March 19, 2018. The Hartford’s proxy Mail: The Hartford materials are available via the internet, which allows us to Attn: Investor Relations reduce printing and delivery costs and lessen adverse One Hartford Plaza (TA1-1) environmental impacts. Hartford, CT 06155 We hope that you will participate in the Annual Meeting, If you hold your shares of The Hartford through a brokerage either by attending and voting in person or by voting through account (in “street name”), your request for an admission other means. For instructions on voting, please refer to page ticket must include a copy of a brokerage statement reflecting 66 under “How do I vote my shares?” stock ownership as of the record date of March 19, 2018. We urge you to review the proxy statement carefully and exercise your right to vote. You can also join our meeting webcast at http:// Dated: April 5, 2018 ir.thehartford.com. By order of the Board of Directors, Donald C. Hunt Vice President and Corporate Secretary 2018 Proxy Statement 1 LETTER FROM OUR CHAIRMAN & CEO Dear Fellow Shareholders: 2017 was an outstanding year for The Hartford, as we delivered strong results and expanded our leading positions in property and casualty insurance, group benefits and mutual funds. The acquisition of Aetna’s U.S. group life and disability business topped the year’s list of significant accomplishments. This deal made The Hartford both the second largest group life and disability carrier, and the second largest workers’ compensation carrier in the U.S. Our data, analytics and expertise are now unmatched in the industry. Meanwhile, despite a competitive market and historically high catastrophe losses, Commercial Lines margins were strong, personal auto profitability greatly improved, and Group Benefits and Mutual Funds results were excellent. Our financial flexibility will improve following the close of the Talcott Resolution sale and we continue to invest in broader offerings and becoming a more efficient, customer-focused company. Turning to 2018, an improving economy should support opportunities for profitable growth. Stronger employment trends and U.S. GDP growth are a positive for each of our businesses and the insurance industry overall. Higher interest rates should also benefit our investment results, providing an opportunity to invest at more attractive returns. The passage of tax reform and the rollback of regulations are clear pro-growth messages, as U.S. corporations respond to the biggest tax cut in the last 30 years. We intend to use a portion of the additional cash flow expected from tax reform to fast track our existing technology initiatives. Consistent with our strategy, everything we do centers around the customer. We see new opportunities to create meaningful differentiation in customer value, risk selection, operating efficiencies and pricing. Our data and technology investments help us better serve our customers when they need us most. We use geocoding to plot policyholder locations in relation to impending natural disasters, analyze flood and elevation data, and model probable "Consistent with our claims to pre-position staff on the ground to respond. In workers’ compensation, our claims strategy, everything we do department uses data, analytics and education to identify addiction risks and recommend centers around the alternative pain management treatments. Initiatives like these deliver value for customers customer. We see new and shareholders while contributing to the well-being of our society. opportunities to create We know that as an employer, neighbor and steward of the environment, doing business meaningful differentiation extends beyond our product and service quality. That’s why we are proud to be recognized by in customer value, risk the Ethisphere Institute, Bloomberg Financial Services Gender Equality Index, Dow Jones selection, operating Sustainability Index, and the Human Rights Campaign Corporate Equality Index, among efficiencies and pricing." others. We are also grateful to our employees who give their time, talent and generosity as community volunteers to help us achieve our five-year goal of making a positive impact in the lives of 7 million people by the end of 2020. I am pleased with our business’ performance, how we served customers during a historic natural catastrophe year, the strength of our balance sheet and investment results, and our employees’ talent and character. We are well positioned to advance our strategy, and create long-term value for our shareholders, customers, employees and distribution partners.