The Hartford Financial Services Group | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>The Hartford Financial Services Group</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Corporate Governance </p>
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<strong>Focus Area:</strong>
<p>Shareholder Rights </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED</strong>: Shareholders request that the board of directors take the necessary steps to permit written consent by the shareholders entitled to cast the minimum number of votes that would be necessary to authorize an action at a meeting at which all shareholders entitled to vote thereon were present and voting (without any discrimination or restriction based on length of stock ownership). This includes shareholder ability to initiate any appropriate topic for written consent.</p>
<p><strong>SUPPORTING STATEMENT</strong>:</p>
<p dir=”ltr”>Hartford shareholders have a particular need for the right to act by written consent because it is considerably more difficult than necessary for Hartford shareholders to call for a special shareholder meeting. </p>
<p dir=”ltr”>Delaware law considers it reasonable for 10% of shareholders to call a special meeting – yet Hartford made the threshold 25% of shareholders based on all shares outstanding and then excluded all Hartford shares that were not long-term shares, which excludes the Hartford shares most likely to call for a special shareholder meeting.</p>
<p dir=”ltr”>The threshold 25% of shareholders based on all Hartford shares outstanding is only a token right to call for a special shareholder meeting. If Hartford claims otherwise then Hartford can give one example of the shareholders of any company the size of Hartford or larger that have ever called for a special shareholder meeting and the meeting actually took place.</p>
<p dir=”ltr”>Acting by written consent is hardly ever used by shareholders but the main point of having a right to act by written consent is that it gives shareholders greater standing to engage effectively with management when Hartford is underperforming. </p>
<p dir=”ltr”>If Hartford directors and management know that Hartford shareholders can act by written consent they will have a greater incentive to perform.</p>
<p dir=”ltr”>Challenging news reports regarding Hartford emerged in 2025 and it would be easy for shareholders to find similar news reports for 2026:</p>
<p dir=”ltr”>Hartford reported net realized losses of $49 million before tax in Q1 of 2025.<br><br>The underlying loss and loss adjustment expense (LAE) ratio in Business Insurance saw a slight increase in all 3 reported quarters of 2025 compared to 2024, largely attributed to higher loss ratios in workers’ compensation.</p>
<p dir=”ltr”>The second quarter 2025 general liability underlying loss ratio was also higher than 2024.<br><br>In Q1 of 2025, the homeowners’ combined ratio was significantly higher than the previous year (133 vs. 96) due to higher current accident year (CAY) catastrophe losses.<br><br>The Q1 of 2025 expense ratio in Personal Lines increased due to higher direct marketing costs and commission ratios.<br><br>The Group Disability loss ratio in Q2 of 2025 increased due to a higher incidence of short-term disability claims, as well as a slight increase in long-term disability incidence.<br><br>Hartford cautioned shareholders about important risks and uncertainties, including “the possibility of unfavorable loss reserve development on legacy exposures.”<br><br>An independent review said that customers reported sharp premium increases after collision claims. </p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>The Hartford Financial Services Group</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Climate Change, Environment </p>
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<strong>Focus Area:</strong>
<p>Climate Change </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p class><strong>WHEREAS:</strong> The United States is facing a nationwide, climate-related insurance crisis. Global insured losses from natural catastrophes in 2023 exceeded $100 billion for the fourth consecutive year.[1] These growing losses have translated into dramatic insurance cost increases. Premiums nationwide rose 34% between 2017 and 2023, with prices increasing 40% faster than inflation.[2] In 2023, 12% of homeowners lacked insurance, up from 5% four years earlier, as states like California and Florida become uninsurable due to climate-driven disasters.[3]</p>
<p class>The Hartford has seen increases in its underwriting losses on personal lines, from a gain of $275 million in 2021 to a loss of $230 million in 2023.[4] Beginning February 2024, the Hartford ceased issuing new homeowners’ policies in California.[5] California homeowners could lose up to $32.1 billion in property value due to non-renewals planned by large insurers.[6]</p>
<p class>Despite this growing insurance crisis, The Hartford continues to invest in and underwrite high greenhouse gas (GHG)-emitting sectors, exacerbating extreme weather and increasing systemic risk. The Hartford holds $1.364 billion in fossil fuel-related shares and bonds.[7]</p>
<p class>The Hartford has set a net zero emissions reduction target for its investment and insurance activities. However, it has not made public how it plans to achieve these reductions. It has not set a baseline of emissions for its insurance activities, nor has it set short or medium-term reduction targets for its investment and insurance-related emissions. It is therefore impossible for investors to know if The Hartford is on track to meet its long-term climate goals, and whether its actions will decrease associated climate risks.</p>
<p class>Setting interim emissions reduction targets is an integral pillar of net zero transition planning, as laid out by the Glasgow Financial Alliance for Net Zero (GFANZ). GFANZ recommends that financial institutions disclose net zero transition plans, including interim targets, to stakeholders and disclose progress against their plans with their climate disclosures at least annually.[8]</p>
<p class>Hartford is falling behind its peers on the issue. At least 15 European insurers have begun to set short or medium-term emission reduction targets for their invested emissions.[9] 60% of insurers surveyed by ShareAction had released interim targets for their investments.[10] Five European insurers have also set interim targets for insurance-related emissions.[11]</p>
<p class><strong>BE IT RESOLVED: </strong>Shareholders request that The Hartford issue a report, at reasonable cost and omitting proprietary information, disclosing short and medium-term targets to reduce the GHG emissions associated with its underwriting, insuring, and investment activities in alignment with Paris Agreement goals.</p>
<p class>[1] https://www.ft.com/content/28bbd550-76f2-4207-8d25-91f8be26972d</p>
<p class>[2] https://www.insurancejournal.com/news/national/2024/09/26/794409.htm</p>
<p class>[3] https://www.npr.org/2024/03/03/1233963377/auto-home-insurance-premiums-costs-natural-disasters-inflation</p>
<p class>[4] https://d18rn0p25nwr6d.cloudfront.net/CIK-0000874766/4550831d-7d67-43e9-a0ae-e22c836bb1b4.pdf, p.45</p>
<p class>[5] https://www.forbes.com/advisor/insurance/hartford-halts-california-homeowners-insurance/</p>
<p class>[6] https://us.insure-our-future.com/californias-dirty-dozen/</p>
<p class>[7] https://investinginclimatechaos.org/data</p>
<p class>[8] https://assets.bbhub.io/company/sites/63/2022/09/Recommendations-and-Guidance-on-Financial-Institution-Net-zero-Transition-Plans-November-2022.pdf, p.18</p>
<p class>[9] AXA, Allianz, Aviva, Achmea, NN Group, Swiss Re, Munich Re, Generali, Zurich Insurance Group, Talanx, Groupama Assurances Mutuelles, Ageas, Desjardins (Canada), Credit Agricole, a.s.r</p>
<p class>[10] https://shareaction.org/reports/insuring-disaster-2024, p.27</p>
<p class>[11] AXA, Allianz, Achmea, NN Group, a.s.r</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> David Shugar</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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Resolution Details

Company:

The Hartford Financial Services Group

Year:

2023

Issue Area:

Climate Change, Human Rights & Worker Rights

Focus Area:

Indigenous Peoples/FPIC, Risk Management

Status:

Withdrawn for Agreement

Resolution Text

Under the UN Guiding Principles on Business and Human Rights, companies are expected to conduct human rights due diligence to meet the corporate responsibility to respect human rights. The UN Declaration on the Rights of Indigenous Peoples recognizes the rights of Indigenous Peoples to self- determination, territories, and cultural practices, and establishes that entities must seek Free Prior and Informed Consent (FPIC) of Indigenous Peoples related to any projects that may impact their rights.

The Hartford Financial Services (The Hartford) may be exposed to environmental and social risk through its underwriting and financing activities. The Principles for Sustainable Insurance, signed by 135 insurers representing $15 trillion in assets, 1 serves as a framework to address environmental, social and governance (ESG) risks and opportunities. The Hartford is not a signatory. Several companies incorporate ESG in their underwriting practice, including AIG,2 Munich Re,3 and Zurich.4 Allianz,5 AXIS Capital,6 and Swiss Re7 assess FPIC in underwriting. Seventeen insurers have committed not to insure oil and gas projects in the Arctic National Wildlife Refuge (Arctic Refuge) in Alaska, noting potential impacts on Indigenous Peoples, biodiversity, and caribou.8

Projects that may negatively impact the rights, culture, or territories of Indigenous Peoples may face opposition and increase reputational risk. The Hartford is facing public scrutiny over the potential risk associated with the Arctic Refuge. The Gwich’in Steering Committee has written to The Hartford asking it to commit not to insure projects in the Arctic Refuge, to protect its communities, culture, and way of life.9 Investor expectations on Indigenous Rights are increasing, including that companies respect FPIC in business decisions that impact Indigenous Peoples.10

Identification and evaluation of all relevant data or risk factors of an activity or project, including exposure to potential human rights or biodiversity impacts or losses, are necessary to accurately assess risk exposure and appropriately set pricing, coverage, and exclusions. While The Hartford has some environmental commitments and a human rights policy,11 it lacks disclosure on how it evaluates human rights risks, in particular the rights of Indigenous Peoples, in underwriting. This may expose the company to mispricing of risk or failing to identify potential social and human rights risks associated with its business activities, which may lead to increased costs, project cancelations, or negative human rights outcomes.

Resolved: Shareholders request that the Board of Directors publish a report, describing how human rights risks and impacts are evaluated and incorporated in the underwriting process. The report should be prepared at reasonable cost and omit proprietary information.

Supporting Statement: At company discretion, the proponents recommend the report include:

The extent to which Free, Prior and Informed Consent, as articulated in the United Nations Declaration on the Rights of Indigenous Peoples, is considered or evaluated in the underwriting process; and

The company’s stakeholder engagement process, such as participating stakeholders, key recommendations made, and actions taken to address such recommendations.

1 https://www.unepfi.org/insurance/insurance/signatory-companies/
2 https://www.aig.com/esgreports/home/executive-summary
3 https://www.munichre.com/en/company/sustainability/human-rights.html
4 https://www.zurich.com/en/sustainability/responsible-investment/-/media/project/zurich/dotcom/sustainability/docs/mitigating-esg-risks-in-underwriting-and-investment-management.pdf
5 https://www.allianz.com/content/dam/onemarketing/azcom/Allianz_com/sustainability/documents/Allianz_ESG_I ntegration_Framework.pdf
6 https://www.axiscapital.com/docs/default-source/about-axis/axis-capital-human-rights- policy.pdf?sfvrsn=f7dfcab8_2#:~:text=We%20expect%20insureds%20to%20respect,on%20indigenous%20territories %20without%20FPIC
7 https://www.swissre.com/dam/jcr:5863fbc4-b708-4e61-acc7-6ef685461abb/esg-risk-framework.pdf
8 https://ourarcticrefuge.org/corporate-commitment-to-protect-the-arctic-refuge/
9 https://ourarcticrefuge.org/gsc-and-240-allied-organizations-urge-u-s-insurance-companies-to-meet-the- moment-with-policy-to-protect-the-arctic-refuge/
10 https://www.blackrock.com/corporate/literature/publication/blk-commentary-engagement-on-human- rights.pdf ; https://amazonwatch.org/news/2022/0622-the-business-case-for-indigenous-rights
11 https://s0.hfdstatic.com/sites/the_hartford/files/sustainability-highlight-report.pdf

Right To Act By Written Consent

Resolution Details

Resolution Text