Dear Fellow Shareholders, I write this letter with a great deal of pride in our accomplishments during 2003 and with optimism— built on an objective assessment of our business outlook—for the future of our company. We served our customers well last year. Thanks to the trust they placed in us, we prospered. Our diversified business model, industry-leading distribution platform, innovative product enhancements, customer-focused  service and claim management, and disciplined underwriting and risk management enabled our success.  The financial results you will read about in this report show that we emerged from 2003 stronger and  even better prepared than we were a year ago to continue to prosper in the future. But what really excites me is the story behind the numbers. Inside this report you will meet many of the  customers, business partners and employees who made this eventful year in our history such a successful one. Their real-life experiences represent the human element behind our financial statements and inspire us to work even harder on their behalf—and yours—in the years ahead. The Hartford’s mission is to protect the lives and property of our business and individual customers and to  help them grow and enhance their wealth. We embrace this responsibility because we know that our success  will nourish our customers’ retirement dreams and help them create a better future for themselves, their children and grandchildren. For almost 200 years, The Hartford has built an increasingly valuable franchise, grounded  in a solid financial foundation and committed to doing right by our shareholders, customers and employees.  The last several years, however, have tested us. We encountered equity market volatility, credit losses,  capital challenges and the lingering and financially draining issue of asbestos. In 2003, we dealt with each  of these challenges head-on, and we emerged financially stronger and better positioned to take advantage of future opportunities. Analysts, investors and ratings agencies noticed. We maintained our financial strength  ratings, and our stock price went up. Positioning The Hartford for long-term growth, financial strength and stability had short-term conse- quences. We posted a net loss for the year. However, this masks very sound execution in all of our ongoing  businesses. Not including our first quarter increase to asbestos reserves, net income rose 61 percent to  $1.6 billion. Net income was split almost equally between our property-casualty and life operations. This  balance positions us well in today’s ever-changing market environment.  We are well positioned to build on our core of financial strength and stability, and we are committed to  creating long-lasting value. The opportunities the future presents give our mission increased relevance.  Last year our property-casualty operations took three decisive actions to advance The Hartford’s competitive position. First, we increased the focus on our core property-casualty businesses where we have consistent perform- ance, scale or competitive advantage. We executed well in these businesses. Our 17,000 property-casualty employees kept their eyes on our partners and customers.  Reaffirming our mission Property-casualty—strengthening our businesses and our partnerships Ten The Hartford Financial Services Group, Inc.