The Hartford includes in its public disclosures financial measures that are not calculated based on generally accepted accounting principles ("non-GAAP"). The Hartford uses non-GAAP and other financial measures to assist investors in analyzing the Company's operating performance. Because The Hartford's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford's non-GAAP and other financial measures to those of other companies.

Many of the non-GAAP and other financial measures used by The Hartford are included in The Hartford's quarterly Investor Financial Supplement. An explanation of those measures, including for each non-GAAP financial measure a reconciliation to the most directly comparable GAAP measure, is set forth in each Investor Financial Supplement.

From time to time in various public disclosures other than the Investor Financial Supplement, The Hartford provides the non-GAAP financial measure core earnings, before tax related items, 2003 asbestos reserve addition, Bancorp litigation and severance charges for the five-year period ended December 31, 2007, and for the three and six months ended June 30, 2007 and 2008. The Hartford also provides this non-GAAP financial measure on a per diluted share basis. The Hartford provides these adjusted measures of core earnings to enhance investor understanding of the company's ongoing businesses by eliminating:

• those realized capital gains and losses that tend to be highly variable from period to period based on capital market conditions;
• the cumulative effect of accounting change;
• the 2003 asbestos reserve addition, which relates solely to legacy businesses; and
• the effects of tax related items, Bancorp litigation and severance charges, because these items either are non-recurring or are highly variable from period to period.

Net income is the most directly comparable GAAP measure. A reconciliation of net income (loss) and net income (loss) per diluted share to these non-GAAP financial measures for the five-year period ended December 31, 2007 is set forth below.

A reconciliation of net income and net income per diluted share to these non-GAAP financial measures for the three and six months ended June 30, 2007 and 2008 is set forth below.