What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-04-24 compared with 2024-10-24 · 413 added, 549 removed, 1208 unchanged (44% of the section changed)

2 unchanged sentences

To the Board of Directors and Stockholders of

The Hartford Financial Services Group, Inc.

The Hartford Insurance Group, Inc.

Hartford, Connecticut

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of The Hartford Financial Services Group, Inc.

and subsidiaries (the "Company") as of September 30, 2024, the related condensed consolidated statements of operations, comprehensive income (loss), and changes in stockholders' equity for the three-month and nine-month periods ended September 30, 2024 and 2023, and of cash flows for the nine-month periods ended September 30, 2024 and 2023, and the related notes (collectively referred to as the "interim financial information").

We have reviewed the accompanying condensed consolidated balance sheet of The Hartford Insurance Group, Inc.

and subsidiaries (the "Company") as of March 31, 2025, the related condensed consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows for the three-month periods ended March 31, 2025 and 2024 , and the related notes (collectively referred to as the "interim financial information").

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows for the year then ended (not presented herein);

and in our report dated February 23, 2024, we expressed an unqualified opinion on those consolidated financial statements and included an explanatory paragraph regarding a change in accounting principle for the measurement and disclosure of long-duration contracts issued by insurance companies.

and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

9 unchanged sentences

Hartford, Connecticut

October 24, 2024

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

April 24, 2025

The Hartford Insurance Group, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except for per share data) 2025 2024

2 unchanged sentences

Net investment income 656 593

Net realized losses ( 13 ) ( 90 ) ( 44 ) ( 161 )

Net realized gains (losses) ( 49 ) 28

Other revenues 22 19

3 unchanged sentences

Amortization of deferred policy acquisition costs ("DAC")

585 517 1,691 1,510

Insurance operating costs and other expenses 1,352 1,283

12 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

3 unchanged sentences

Change in unrealized losses on fixed maturities with an allowance for credit losses ("ACL") — 1

Change in net gain (loss) on cash flow hedging instruments 3 ( 4 ) 12 ( 13 )

Change in net gain on cash flow hedging instruments — —

Change in foreign currency translation adjustments — ( 1 )

1 unchanged sentence

Change in pension and other postretirement plan adjustments 7 7

Other comprehensive income (loss), net of tax 1,063 ( 654 ) 844 ( 337 )

Comprehensive income (loss) $ 1,830 $ ( 3 ) $ 3,102 $ 1,396

OCI, net of tax 306 ( 148 )

Comprehensive income $ 936 $ 605

See Notes to Condensed Consolidated Financial Statements.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Condensed Consolidated Balance Sheets

(in millions, except for share and per share data) September 30,

(in millions, except for share and per share data) March 31,

2025 December 31, 2024

28 unchanged sentences

Stockholders’ Equity

Preferred stock, $ 0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at September 30, 2024 and December 31, 2023, aggregate liquidation preference of $ 345

Common stock, $ 0.01 par value — 1,500,000,000 shares authorized, 326,960,228 shares issued at September 30, 2024 and December 31, 2023

Preferred stock, $ 0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at March 31, 2025 and December 31, 2024, aggregate liquidation preference of $ 345

Common stock, $ 0.01 par value — 1,500,000,000 shares authorized, 326,960,228 shares issued at March 31, 2025 and December 31, 2024

Additional paid-in capital 524 578

7 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Condensed Consolidated Statements of Changes in Stockholders' Equity

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except for share and per share data) 2025 2024

33 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

2 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Net realized losses 44 161

Net realized losses (gains) 49 ( 28 )

Amortization of deferred policy acquisition costs 607 545

22 unchanged sentences

Limited partnership and other alternative investments ( 177 ) ( 156 )

Net proceeds from (payments for) derivatives 48 ( 133 )

Net proceeds from derivatives 12 —

Net additions of property and equipment ( 38 ) ( 50 )

5 unchanged sentences

Withdrawals and other deductions from investment and universal life-type contracts ( 26 ) ( 43 )

Net issuance (return) of shares under incentive and stock compensation plans 16 ( 25 )

Net return of shares under incentive and stock compensation plans ( 54 ) ( 27 )

Treasury stock acquired ( 400 ) ( 350 )

11 unchanged sentences

Note 1 - Basis of Presentation and Significant Accounting Policies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements

2 unchanged sentences

Basis of Presentation

The Hartford Financial Services Group, Inc.

is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group benefits insurance and services, and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States as well as in the United Kingdom and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”).

The Hartford Insurance Group, Inc.

is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, employee group benefits insurance and services, and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States as well as in the United Kingdom and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”).

The Condens ed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

5 unchanged sentences

Consolidation

The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest.

The Condensed Consolidated Financial Statements include the accounts of The Hartford Insurance Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest.

Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method.

8 unchanged sentences

and contingencies relating to corporate litigation and regulatory matters.

Note 2 - Earnings Per Common Share

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Earnings Per Common Share

Computation of Basic and Diluted Earnings per Common Share

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions, except for per share data) 2025 2024

8 unchanged sentences

Diluted $ 2.15 $ 2.47

Note 3 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Segment Information

The Company currently conducts business principally in five reportable segments including Commercial Lines, Personal Lines, Property & Casualty ("P&C") Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.

Net Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Commercial Lines $ 528 $ 519 $ 1,641 $ 1,398

Personal Lines 31 ( 12 ) 54 ( 73 )

Property & Casualty Other Operations 10 9 29 24

Group Benefits 156 146 435 359

Hartford Funds 54 41 143 127

Corporate ( 12 ) ( 52 ) ( 44 ) ( 102 )

Net income 767 651 2,258 1,733

Preferred stock dividends 6 6 16 16

Net income available to common stockholders $ 761 $ 645 $ 2,242 $ 1,717

The Company currently conducts business principally in five reportable segments including Business Insurance, Personal Insurance, Property & Casualty ("P&C") Other Operations, Employee Benefits and Hartford Funds, as well as a Corporate category.

Note 3 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Earned premiums and fee income:

Commercial Lines

Segment Revenues

Three Months Ended March 31,

Business Insurance

Workers’ compensation $ 918 $ 917

Liability 575 522 1,641 1,510

Marine 71 67 205 192

General liability 584 526

Package business 619 549

Property 325 250 921 722

Commercial property 339 290

Professional liability 206 203

Bond 82 82 240 239

Assumed reinsurance 220 181

Automobile 278 234 787 679

Total Commercial Lines 3,260 2,962 9,451 8,634

Personal Lines

Automobile 621 546 1,791 1,589

Commercial automobile 295 248

Business Insurance earned premium and fee income 3,335 3,059

Net investment income 437 391

Net realized gains (losses) ( 24 ) 12

Other revenue [1] 1 —

Total Business Insurance 3,749 3,462

Personal Insurance

Personal automobile 624 572

Homeowners 283 249

Total Personal Lines [1] 893 791 2,571 2,305

Group Benefits

Personal Insurance earned premium and fee income [2] 907 821

Net investment income 57 50

Net realized gains (losses) ( 2 ) 1

Other revenue 20 19

Total Personal Insurance 982 891

P&C Other Operations

Net investment income 18 18

Total P&C Other Operations 18 18

Employee Benefits

Group disability 900 890

1 unchanged sentence

Other 118 104

Total Group Benefits 1,655 1,629 4,959 4,868

Employee Benefits premium and other considerations 1,668 1,639

Net investment income 126 114

Net realized gains (losses) ( 4 ) 1

Total Employee Benefits 1,790 1,754

Hartford Funds

1 unchanged sentence

Third-party life and annuity separate accounts [3] 18 19

Hartford Funds fee income 260 250

Net investment income 4 4

Net realized gains — 5

Total Hartford Funds 264 259

Total earned premiums and fee income 6,081 5,640 17,777 16,570

Total segment revenues $ 6,803 $ 6,384

[1] Other revenues for Business Insurance includes revenues from equity method investments that are not considered revenues from contracts with customers in the table below.

[2] For the three months ended March 31, 2025 and 2024, AARP members accounted for earned premiums of $ 822 and $ 758 , respectively.

[3] Represents revenues earned for investment advisory services on third party life and annuity separate account assets under management ("AUM") by the Company's Hartford Funds segment.

Note 3 - Segment Information

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Significant Segment Expenses

Three Months Ended March 31,

Business Insurance

Current accident year losses and loss adjustment expenses ("LAE") before catastrophes $ 1,891 $ 1,725

Current accident year catastrophe losses and LAE 280 109

Prior accident year development of losses and LAE ( 83 ) ( 56 )

Amortization of DAC 531 476

Insurance operating costs 512 487

Amortization of other intangible assets 7 7

Dividends to policyholders 10 10

Total Business Insurance 3,148 2,758

Personal Insurance

Current accident year losses and LAE before catastrophes 563 575

Current accident year catastrophe losses and LAE 187 52

Prior accident year development of losses and LAE ( 39 ) ( 7 )

Amortization of DAC 68 60

Insurance operating costs 182 153

Amortization of other intangible assets 1 1

Total Personal Insurance 962 834

P&C Other Operations

Prior accident year development of losses and LAE — 7

Insurance operating costs 2 2

Total P&C Other Operations 2 9

Employee Benefits

Group disability losses 621 624

Group life losses 519 533

Group losses - other 59 47

Amortization of DAC 8 9

Insurance operating costs and other expenses 406 397

Amortization of other intangible assets 10 10

Total Employee Benefits 1,623 1,620

Hartford Funds

Sub-advisory expense 73 69

Employee compensation and benefits 39 35

Distribution and service 73 73

General, administrative and other 24 26

Total Hartford Funds 209 203

Total significant segment expenses 5,944 5,424

Note 3 - Segment Information

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Segment/Category Summary For the Three Months Ended March 31, 2025

Reportable Segments

Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated

Earned premium and fee income from external customers $ 3,335 $ 907 $ — $ 1,668 $ 260 $ 6,170 $ 11 $ 6,181

Net investment income 437 57 18 126 4 642 14 656

Net realized losses ( 24 ) ( 2 ) — ( 4 ) — ( 30 ) ( 19 ) ( 49 )

Other revenues 24 21 69 66

Other revenue [1] 1 20 — — — 21 1 22

Total Revenues 3,749 982 18 1,790 264 6,803 7 6,810

$ 6,751 $ 6,168 $ 19,656 $ 18,127

[1] For the three months ended September 30, 2024 and 2023, AARP members accounted for earned premiums of $ 817 and $ 731 , respectively.

For the nine months ended September 30, 2024 and 2023, AARP members accounted for earned premiums of $ 2.36 billion and $ 2.13 billion, respectively.

Significant segment expenses 3,148 962 2 1,623 209 5,944 5,944

Other segment expenses [2] 2 15 — — — 17 17

Corporate expenses 66 66

Income tax expense (benefit) 122 — 3 34 12 171 ( 18 ) 153

Net income (loss) $ 477 $ 5 $ 13 $ 133 $ 43 $ 671 $ ( 41 ) $ 630

Other segment disclosures:

Amortization of DAC $ 531 $ 68 $ — $ 8 $ — $ 607 $ — $ 607

Amortization of other intangibles $ 7 $ 1 $ — $ 10 $ — $ 18 $ — $ 18

Segment/Category Summary For the Three Months Ended March 31, 2024

Reportable Segments

Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated

Earned premium and fee income from external customers $ 3,059 $ 821 $ — $ 1,639 $ 250 $ 5,769 $ 10 $ 5,779

Net investment income 391 50 18 114 4 577 16 593

Net realized gains 12 1 — 1 5 19 9 28

Other revenue [1] — 19 — — — 19 — 19

Total Revenues 3,462 891 18 1,754 259 6,384 35 6,419

Significant segment expenses 2,758 834 9 1,620 203 5,424 5,424

Other segment expenses [2] 2 15 — — — 17 17

Corporate expenses 67 67

Income tax expense (benefit) 129 8 1 26 11 175 ( 17 ) 158

Net income (loss) $ 573 $ 34 $ 8 $ 108 $ 45 $ 768 $ ( 15 ) $ 753

Other segment disclosures:

Amortization of DAC $ 476 $ 60 $ — $ 9 $ — $ 545 $ — $ 545

Amortization of other intangibles $ 7 $ 1 $ — $ 10 $ — $ 18 $ — $ 18

[1] Other revenues for Business Insurance and Corporate includes revenues from equity method investments that are not considered revenues from contracts with customers in the table below.

[2] Other segment expenses primarily consists of integration costs associated with the 2019 acquisition of Navigators Group for Business Insurance and servicing expenses for Personal Insurance

Note 3 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

March 31, 2025 December 31, 2024

Business Insurance $ 54,557 $ 53,296

Personal Insurance 6,221 6,034

Property & Casualty Other Operations 4,295 4,312

Employee Benefits 13,384 13,502

Hartford Funds 778 761

Total Reportable Segments 79,235 77,905

Corporate 3,072 3,012

Total assets $ 82,307 $ 80,917

Non-Insurance Revenue from Contracts with Customers

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Revenue Line Item 2025 2024

Commercial Lines

Business Insurance

Installment billing fees Fee income $ 11 $ 11

Personal Lines

Personal Insurance

Installment billing fees Fee income 8 8

Insurance servicing revenues Other revenues 20 19

Group Benefits

Employee Benefits

Administrative services Fee income 56 54

2 unchanged sentences

Investment management and other fees Fee income 11 10

Other Other revenues — — — 1

Total non-insurance revenues with customers $ 366 $ 352

4 unchanged sentences

The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 1 Fair values based on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

5 unchanged sentences

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of September 30, 2024

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of March 31, 2025

Total Quoted Prices in

22 unchanged sentences

Credit derivatives 23 — 23 —

Interest rate derivatives 1 — 1 —

Foreign exchange derivatives 13 — 13 —

Total derivative assets [2] 36 — 36 —

4 unchanged sentences

Credit derivatives $ ( 23 ) $ — $ ( 23 ) $ —

Equity derivatives 5 — — 5

Foreign exchange derivatives 20 — 20 —

3 unchanged sentences

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

3 unchanged sentences

for Identical

(Level 1) Significant

(Level 2) Significant

Assets accounted for at fair value on a recurring basis

13 unchanged sentences

Credit derivatives 30 — 30 —

Equity derivatives 4 — 4 —

Foreign exchange derivatives 23 — 23 —

6 unchanged sentences

Foreign exchange derivatives 18 — 18 —

Interest rate derivatives ( 6 ) — ( 6 ) —

Total derivative liabilities [3] ( 12 ) — ( 12 ) —

4 unchanged sentences

[3] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

The Company has overseas deposits included in other investments of $ 60 and $ 75 as of September 30, 2024 and December 31, 2023, respectively, which are measured at fair value using the net asset value as a practical expedient.

The Company has overseas deposits included in other investments of $ 70 and $ 61 as of March 31, 2025 and December 31, 2024, respectively, which are measured at fair value using the net asset value as a practical expedient.

Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives

8 unchanged sentences

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

29 unchanged sentences

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives

Primary Observable Inputs

Primary Observable Inputs Level 3

Primary Unobservable Inputs

20 unchanged sentences

Other inputs for investment grade privately placed securities that utilize internal matrix pricing:

• Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature

• Independent broker quotes

• Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes

• Credit spreads beyond observable curve

15 unchanged sentences

• Issuer spreads and credit default swap curves

• Material event notices and new issue money market rates

• Independent broker quotes

• Material event notices and new issue money market rates • Independent broker quotes

• For privately traded investments, credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature

1 unchanged sentence

• Swap yield curve

• Credit default swap curves

• Not applicable

• Credit default swap curves • Not applicable

Foreign exchange derivatives

1 unchanged sentence

• Currency spot and forward rates

• Cross currency basis curves

• Not applicable

• Cross currency basis curves • Not applicable

Interest rate derivatives

1 unchanged sentence

Equity derivatives

• Equity index levels • Equity volatility

• Equity index levels • Not applicable

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

4 unchanged sentences

Input on Fair Value [2]

As of September 30, 2024

As of March 31, 2025

ABS [3] $ 48 Discounted cash flows Spread 481 bps 808 bps 503 bps Decrease

CLOs [3] $ 98 Discounted cash flows Spread 458 bps 1,023 bps 788 bps Decrease

7 unchanged sentences

As of December 31, 2024

CLOs [3] $ 98 Discounted cash flows Spread 268 bps 270 bps 269 bps Decrease

CMBS [3] $ 166 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 200 bps 1,221 bps 418 bps Decrease

12 unchanged sentences

[6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads .

As of September 30, 2024 and December 31, 2023, the fair values of the Company's level 3 derivatives were $ 5 and less than $ 1 , respectively.

As of March 31, 2025 and December 31, 2024, the fair values of the Company's level 3 derivatives were less than $ 1 for both periods.

The table above excludes certain securities for which fair values are predominately based on independent broker quotes.

2 unchanged sentences

Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease.

As of September 30, 2024, no significant adjustments were made by the Company to broker prices received.

As of March 31, 2025, no significant adjustments were made by the Company to broker prices received.

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

2 unchanged sentences

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the

Three Months Ended September 30, 2024

Total realized/unrealized gains (losses)

Fair value as of June 30, 2024 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of September 30, 2024

Fixed maturities, AFS

ABS $ 8 $ — $ — $ 40 $ — $ — $ — $ — $ 48

CLOs 500 — — 215 ( 6 ) — — ( 460 ) 249

CMBS 190 ( 2 ) 3 — ( 3 ) ( 10 ) 28 — 206

Corporate 2,061 — 61 246 ( 107 ) ( 13 ) 9 — 2,257

RMBS 40 — — 33 ( 4 ) — — ( 14 ) 55

Total fixed maturities, AFS 2,799 ( 2 ) 64 534 ( 120 ) ( 23 ) 37 ( 474 ) 2,815

FVO securities 160 ( 5 ) — — ( 3 ) — — — 152

Equity securities, at fair value 58 4 — 19 ( 1 ) ( 3 ) — — 77

Short-term investments 25 — — 3 ( 19 ) — — — 9

Total Assets $ 3,042 $ ( 3 ) $ 64 $ 556 $ ( 143 ) $ ( 26 ) $ 37 $ ( 474 ) $ 3,053

Derivatives, net [4]

Equity $ — $ — $ — $ 5 $ — $ — $ — $ — $ 5

Total Derivatives, net [4] — — — 5 — — — — 5

Total Liabilities $ — $ — $ — $ 5 $ — $ — $ — $ — $ 5

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the

Nine Months Ended September 30, 2024

Total realized/unrealized gains (losses)

Fair value as of January 1, 2024 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of September 30, 2024

Fixed maturities, AFS

ABS $ — $ — $ — $ 56 $ — $ — $ — $ ( 8 ) $ 48

CLOs 113 — — 805 ( 32 ) — — ( 637 ) 249

CMBS 227 ( 4 ) 15 — ( 8 ) ( 58 ) 34 — 206

Corporate 1,861 — 28 558 ( 183 ) ( 16 ) 9 — 2,257

RMBS 36 — — 85 ( 14 ) — — ( 52 ) 55

Total fixed maturities, AFS 2,237 ( 4 ) 43 1,504 ( 237 ) ( 74 ) 43 ( 697 ) 2,815

FVO securities 167 ( 4 ) — — ( 11 ) — — — 152

Equity securities, at fair value 58 4 — 19 ( 1 ) ( 3 ) — — 77

Short-term investments 25 — — 4 ( 20 ) — — — 9

Total Assets $ 2,487 $ ( 4 ) $ 43 $ 1,527 $ ( 269 ) $ ( 77 ) $ 43 $ ( 697 ) $ 3,053

Derivatives, net [4]

Equity $ — $ — $ — $ 5 $ — $ — $ — $ — $ 5

Total Derivatives, net [4] — — — 5 — — — — 5

Total Liabilities $ — $ — $ — $ 5 $ — $ — $ — $ — $ 5

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the

Three Months Ended September 30, 2023

Three Months Ended March 31, 2025

Total realized/unrealized gains (losses)

Fair value as of June 30, 2023 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of September 30, 2023

Fair value as of January 1, 2025 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of March 31, 2025

Fixed maturities, AFS

10 unchanged sentences

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Total realized/unrealized gains (losses)

Fair value as of January 1, 2023 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of September 30, 2023

Fair value as of January 1, 2024 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of March 31, 2024

Fixed maturities, AFS

13 unchanged sentences

[3] Transfers into and/or (out of) Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities.

Note 4 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

1 unchanged sentence

Level 3 Still Held at End of Period

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

2025 2024 2025 2024

Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3]

Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3]

Fixed maturities, AFS

CLOs $ — $ — $ — $ — $ — $ — $ — $ 1

ABS $ — $ — $ 1 $ —

CMBS — — 3 10

2 unchanged sentences

FVO securities ( 4 ) 3 — —

Equity securities, at fair value 3 — — — 3 ( 1 ) — —

Total Assets $ ( 1 ) $ 3 $ 17 $ ( 5 )

6 unchanged sentences

These instruments are included within FVO securities on the Condensed Consolidated Balance Sheets and changes in the fair value of these investments are reported in net realized gains and losses.

As of September 30, 2024 and December 31, 2023, the fair value of assets using the fair value option was $ 263 and $ 327 ,

respectively, of which $ 152 and $ 167 , respectively, were residual interests of securitizations.

For the three and nine months ended September 30, 2024, net realized losses related to the change in fair value of assets using the fair value option were $ 5 and $ 2 , respectively.

For the three and nine months ended September 30, 2023, net realized gains related to the change in fair value of assets using the fair value option were $ 16 and $ 5 , respectively.

As of March 31, 2025 and December 31, 2024, the fair value of assets using the fair value option was $ 280 and $ 308 , respectively, of which $ 195 and $ 197 , respectively, were residual interests of securitizations.

For the three months ended March 31, 2025 and 2024, net realized gains (losses) related to the change in fair value of assets using the fair value option were $( 4 ) and $ 4 , respectively.

Financial Instruments Not Carried at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Fair Value Hierarchy Level Carrying Amount [1] Fair Value Fair Value Hierarchy Level Carrying Amount [1] Fair Value

3 unchanged sentences

Junior subordinated debentures [2] Level 2 $ 499 $ 461 Level 2 $ 499 $ 460

[1] As of September 30, 2024 and December 31, 2023, the carrying amount of mortgage loans is net of ACL of $ 44 and $ 51 , respectively.

[1] As of March 31, 2025 and December 31, 2024, the carrying amount of mortgage loans is net of ACL of $ 43 and $ 44 , respectively.

[2] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for any current maturities, which are included in short-term debt when applicable.

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Net Realized Gains (Losses)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Before tax) 2025 2024

Gross gains on sales of fixed maturities

$ 12 $ 6 $ 23 $ 26

Gross losses on sales of fixed maturities

7 unchanged sentences

Other, net [2] ( 28 ) ( 3 )

Net realized (losses) $ ( 13 ) $ ( 90 ) $ ( 44 ) $ ( 161 )

[1] The change in net unrealized gains (losses) on equity securities still held as of September 30, 2024 and included in net realized gains (losses) were $ 27 and $ 71 for the three and nine months ended September 30, 2024, respectively.

The change in net unrealized gains (losses) on equity securities still held as of September 30, 2023 and included in net realized gains (losses) were $( 14 ) and $( 5 ) for the three and nine months ended September 30, 2023, respectively.

[2] For the three and nine months ended September 30, 2024 includes gains (losses) from transactional foreign currency revaluation of $( 11 ) and $( 5 ), respectively, and gains (losses) on non-qualifying derivatives of $ 23 and $ 15 , respectively.

For the three and nine months ended September 30, 2023 includes gains (losses) from transactional foreign currency revaluation of $ 13 and $( 3 ), respectively, and gains (losses) on non-qualifying derivatives of $( 74 ) and $( 108 ), respectively.

Proceeds from the sales of fixed maturities, AFS totaled $ 1.5 billion and $ 4.2 billion for the three and nine months ended September 30, 2024, respectively, and $ 0.8 billion and $ 2.8 billion for the three and nine months ended September 30, 2023.

Non-cash investing activities for both the three and nine months ended September 30, 2024, included $ 18 related to the exchange of short-term investments for equity securities.

There were no non-cash investing activities for both the three and nine months ended September 30, 2023.

Net realized gains (losses) $ ( 49 ) $ 28

[1] The change in net unrealized gains (losses) on equity securities still held as of the end of the period and included in net realized gains (losses) were $( 11 ) and $ 36 for the three months ended March 31, 2025, and 2024, respectively.

[2] The three months ended March 31, 2025, and 2024 includes gains (losses) from transactional foreign currency revaluation of $( 10 ) and $ 2 , respectively, and gains (losses) on non-qualifying derivatives of $ 0 and $( 2 ), respectively.

Proceeds from the sales of fixed maturities, AFS totaled $ 1.0 billion and $ 0.4 billion for the three months ended March 31, 2025 and 2024, respectively.

There were no non-cash investing activities for both the three months ended March 31, 2025 and 2024.

Accrued Investment Income on Fixed Maturities, AFS and Mortgage Loans

As of September 30, 2024 and December 31, 2023, the Company reported accrued investment income related to fixed maturities, AFS of $ 412 and $ 371 , respectively, and accrued investment income related to mortgage loans of $ 23 and $ 20 , respectively.

As of March 31, 2025 and December 31, 2024, the Company reported accrued investment income related to fixed maturities, AFS of $ 426 and $ 412 , respectively, and accrued investment income related to mortgage loans of $ 23 and $ 22 , respectively.

These amounts are not included in the carrying value of the fixed maturities or mortgage loans.

13 unchanged sentences

The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance.

The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales.

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

incorporates information received from third-party sources along with certain internal assumptions regarding the future performance.

issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value (" LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines.

year, prepayment speeds, and property value declines.

These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value.

ACL on Fixed Maturities, AFS by Type

Three Months Ended September 30,

(Before tax) Corporate CMBS Total Corporate CMBS Total

Balance as of beginning of period $ 6 $ 13 $ 19 $ 6 $ 12 $ 18

Credit losses on fixed maturities where an allowance was not previously recorded — — — 3 — 3

Reduction due to sales ( 3 ) — ( 3 ) ( 3 ) — ( 3 )

Net increases (decreases) on fixed maturities where an allowance was previously recorded — — — 2 — 2

Balance as of end of period $ 3 $ 13 $ 16 $ 8 $ 12 $ 20

ACL on Fixed Maturities, AFS by Type

Nine Months Ended September 30,

Three Months Ended March 31,

(Before tax) Corporate CMBS Total Corporate CMBS Total

Balance as of beginning of period $ 3 $ 13 $ 16 $ 9 $ 12 $ 21

Credit losses on fixed maturities where an allowance was not previously recorded — 1 1 9 — 9

Reduction due to sales ( 3 ) — ( 3 ) ( 5 ) — ( 5 )

Net increases (decreases) on fixed maturities where an allowance was previously recorded ( 3 ) 1 ( 2 ) 1 — 1

1 unchanged sentence

Balance as of end of period $ — $ 14 $ 14 $ 6 $ 12 $ 18

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fixed Maturities, AFS

Fixed Maturities, AFS, by Type

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Cost ACL Gross

11 unchanged sentences

Fixed Maturities, AFS, by Contractual Maturity Year

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Amortized Cost Fair Value Amortized Cost Fair Value

9 unchanged sentences

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where

applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk.

The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of September 30, 2024 or December 31, 2023 other than U.S.

government securities and certain U.S.

government agencies.

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk.

The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of March 31, 2025 or

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

December 31, 2024 other than U.S.

government securities and certain U.S.

government agencies.

Unrealized Losses on Fixed Maturities, AFS

Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of September 30, 2024

Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of March 31, 2025

Less Than 12 Months 12 Months or More Total

23 unchanged sentences

Total fixed maturities, AFS in an unrealized loss position $ 10,408 $ ( 243 ) $ 16,941 $ ( 1,984 ) $ 27,349 $ ( 2,227 )

As of September 30, 2024, fixed maturities, AFS in an unrealized loss position consisted of 3,100 instruments and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date.

As of September 30, 2024, 96 % of these fixed maturities were depressed less than 20% of cost or amortized cost.

The decrease in unrealized losses during the nine months ended September 30, 2024, was primarily attributable to lower interest rates and tighter credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, RMBS, municipal bonds, and CMBS, which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates.

As of March 31, 2025, fixed maturities, AFS in an unrealized loss position consisted of 3,648 instruments and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date.

As of March 31, 2025, 95 % of these fixed maturities were depressed less than 20% of cost or amortized cost.

The decrease in unrealized losses during the three months ended March 31, 2025, was primarily attributable to lower interest rates, partially offset by wider credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, municipal bonds, and RMBS, which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates.

The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion.

7 unchanged sentences

The economic scenarios are projected over 10 years.

The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period.

Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used

The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

to estimate the value of a future operating income stream.

historical long-term assumptions over the remaining period.

Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream.

The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period.

8 unchanged sentences

During the period in which all or a portion of the mortgage loan is determined to be uncollectible, the ACL is written off against the amortized cost.

There were no mortgage loans held-for-sale as of September 30, 2024 or December 31, 2023.

For both the three and nine months ended September 30, 2024, one office property mortgage loan with an amortized cost of $ 9 was granted a term extension of three years at the original rate which is a below-market rate with a borrower experiencing

financial difficulties.

The modified loan represents less than 1 % of the portfolio and is current and performing in conjunction with the modified terms.

For the three and nine months ended September 30, 2023, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract or with borrowers experiencing financial difficulties.

There were no mortgage loans held-for-sale as of March 31, 2025 or December 31, 2024.

In addition, for the three months ended March 31, 2025 and 2024, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract or with borrowers experiencing financial difficulties.

The one mortgage loan extension that was granted over the past twelve months to a borrower that was experiencing financial difficulties is current and performing in conjunction with the modified terms.

ACL on Mortgage Loans

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

ACL as of beginning of period $ 44 $ 51

1 unchanged sentence

Current period gross write-offs ( 1 ) —

ACL as of September 30,

$ 44 $ 46 $ 44 $ 46

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 55 % as of September 30, 2024, while the weighted-average LTV ratio at origination of these loans was 59 %.

ACL as of March 31,

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 56 % as of March 31, 2025, while the weighted-average LTV ratio at origination of these loans was 59 %.

LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually.

1 unchanged sentence

DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.

Mortgage Loans LTV & DSCR by Origination Year as of September 30, 2024

Mortgage Loans LTV & DSCR by Origination Year as of March 31, 2025

2025 2024 2023 2022 2021 2020 & Prior Total

Loan-to-value Amortized Cost Avg.

Amortized Cost Avg.

DSCR Amortized Cost Avg.

2 unchanged sentences

DSCR Amortized Cost Avg.

DSCR Amortized Cost [1]

DSCR Amortized Cost Avg.

DSCR Amortized Cost [1] Avg.

Greater than 80% $ — — x $ 26 0.58 x $ — — x $ 16 1.07 x $ 37 1.00 x $ 109 1.67 x $ 188 1.33 x

1 unchanged sentence

Less than 65% 75 2.75 x 390 1.61 x 503 1.42 x 687 2.86 x 1,110 2.93 x 2,235 2.69 x 5,000 2.56 x

Total mortgage loans

$ 361 1.51 x $ 491 1.41 x $ 958 2.59 x $ 1,568 2.78 x $ 619 3.03 x $ 2,462 2.61 x $ 6,459 2.53 x

Total mortgage loans $ 75 2.75 x $ 504 1.50 x $ 510 1.41 x $ 860 2.68 x $ 1,568 2.78 x $ 2,882 2.59 x $ 6,399 2.47 x

[1] Amortized cost of mortgage loans excludes ACL of $ 43 .

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

11 unchanged sentences

Less than 65% 357 1.62 x 489 1.39 x 696 2.85 x 1,108 2.93 x 518 2.67 x 1,824 2.71 x 4,992 2.57 x

Total mortgage loans

$ 400 1.47 x $ 929 2.60 x $ 1,600 2.78 x $ 622 3.00 x $ 777 2.76 x $ 1,810 2.47 x $ 6,138 2.60 x

Total mortgage loans $ 471 1.52 x $ 496 1.39 x $ 916 2.61 x $ 1,566 2.79 x $ 618 2.82 x $ 2,373 2.53 x $ 6,440 2.47 x

[1] Amortized cost of mortgage loans excludes ACL of $ 44 .

Mortgage Loans by Region

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Amortized Cost Percent of Total Amortized Cost Percent of Total

13 unchanged sentences

Mortgage Loans by Property Type

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Amortized Cost Percent of Total Amortized Cost Percent of Total

10 unchanged sentences

Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period.

As of September 30, 2024 and December 31, 2023, the Company held no mortgage loans considered past due.

As of March 31, 2025 and December 31, 2024, the Company held no mortgage loans considered past due.

Mortgage Servicing

The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed.

As of September 30, 2024, under this program, the Company serviced mortgage loans with a total outstanding principal of $ 9.9 billion, of which $ 4.7 billion was serviced on behalf of third parties and $ 5.2 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets.

As of December 31, 2023, the Company serviced mortgage loans with a total outstanding principal balance of $ 9.4 billion, of which $ 4.4 billion was serviced on behalf of third parties and $ 5.0 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets.

Servicing rights are carried at the lower of cost or fair value and were $ 0 as of September 30, 2024 and December 31, 2023, because servicing fees were market-level

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

fees at origination and remain adequate to compensate the Company for servicing the loans.

As of both March 31, 2025 and December 31, 2024, under this program, the Company serviced mortgage loans with a total outstanding principal of $ 10.0 billion, of which $ 4.8 billion was serviced on behalf of third parties and $ 5.2 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets.

Servicing rights are carried at the lower of cost or fair value and were $ 0 as of March 31, 2025 and December 31, 2024, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

4 unchanged sentences

Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements.

Note 5 - Investments

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Consolidated VIEs

As of September 30, 2024 and December 31, 2023, the Company did no t hold any securities for which it is the primary beneficiary.

As of March 31, 2025 and December 31, 2024, the Company did no t hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

1 unchanged sentence

For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments.

The Company’s maximum exposure to loss as of September 30, 2024 and December 31, 2023 was limited to the total carrying value of $ 3.2 billion and $ 3.0 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets that are primarily recorded using the equity method of accounting.

As of September 30, 2024 and December 31, 2023, the Company has outstanding commitments totaling $ 2.0 billion and $ 1.7 billion, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

The Company’s maximum exposure to loss as of March 31, 2025 and December 31, 2024 was limited to the total carrying value of $ 3.4 billion and $ 3.2 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets that are primarily recorded using the equity method of accounting.

As of March 31, 2025 and December 31, 2024, the Company has outstanding commitments totaling $ 1.9 billion and $ 2.0 billion, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

These investments are generally of a passive nature in that the Company does not take an active role in management.

1 unchanged sentence

Furthermore, the Company makes investments in entities that sponsor affordable housing projects.

Similarly, for these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the

The Company applies the proportional amortization method to subsequently measure its investments in such qualified affordable housing projects, where costs are amortized over the period in which the investor expects to receive tax credits and the resulting amortization is recognized as a component of income tax expense on the Company's Condensed Consolidated Statements of Operations.

For the three and nine months ended September 30, 2024, the Company recognized amortization of $ 1 and $ 3 , respectively, and related tax benefits of $ 3 and $ 8 , respectively.

For the three and nine months ended September 30, 2023, the Company recognized amortization of $ 0 and less than $ 1 , respectively, and related tax benefits of less than $ 1 for both periods.

For the three months ended March 31, 2025 and 2024, the Company recognized amortization of $ 4 and $ 1 , respectively, and related tax benefits of $ 6 and $ 2 , respectively.

The income tax credits and other income tax benefits are recognized in operating activities in the Condensed Consolidated Statement of Cash Flows.

The carrying value of these investments, which are reported in other assets on the Company’s Condensed Consolidated Balance Sheets was $ 38 and $ 20 as of September 30, 2024, and December 31, 2023, respectively.

As of September 30, 2024 and December 31, 2023, the Company has outstanding commitments related to affordable housing projects of $ 240 and $ 180 , respectively, that are contingent on various conditions precedent to funding.

The carrying value of these investments, which are reported in other assets on the Company’s Condensed Consolidated Balance Sheets was $ 65 and $ 51 as of March 31, 2025, and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, the Company has outstanding commitments related to affordable housing projects of $ 249 and $ 267 , respectively, that are contingent on various conditions precedent to funding.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager.

These investments are included in ABS, CLOs, CMBS, and RMBS and are reported in fixed maturities, AFS, and FVO securities on the Company's Condensed Consolidated Balance Sheets.

The Company has not provided financial or other support with respect to these investments other than its original investment.

The Company has not provided financial or other support with respect to these investments

other than its original investment.

For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits.

The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities.

The maturity of these transactions is generally within one year.

The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received.

The Company accounts for reverse repurchase agreements as collateralized financing.

As of September 30, 2024 and December 31, 2023, the Company reported $ 6 and $ 10 , respectively, within short-term investments on the Condensed Consolidated Balance Sheets representing a

Note 5 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of September 30, 2024 and December 31, 2023, the Company pledged collateral of $ 7 and $ 7 , respectively, of U.S.

Collateral Transactions and Restricted Investments

Collateral Transactions

As of both March 31, 2025 and December 31, 2024, the Company pledged collateral of $ 1 , of U.S.

government securities or cash primarily related to certain bank loan participations committed through a limited partnership agreement.

2 unchanged sentences

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business.

In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's

to support underwriting activities in those countries.

Lloyd's is an insurance market-place operating worldwide.

2 unchanged sentences

The following table presents the components of the Company’s exposure to other restricted investments.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Fair Value Fair Value

2 unchanged sentences

Short-term investments in trust for benefit of Lloyd's Syndicate policyholders 37 25

Fixed maturities in Lloyd's trust account 47 154

Other investments 70 61

Total Other Restricted Investments $ 3,669 $ 3,504

Note 6 - Derivatives

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions.

Derivative instruments are used to manage risk associated with interest rate, equity market, commodity market, credit spread, issuer default, price, and currency exchange rate or volatility.

Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate or volatility.

Replication transactions may be used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Strategies that Qualify for Hedge Accounting

5 unchanged sentences

The Company has also entered into interest rate swaps to convert the variable interest payments on the $ 500 junior subordinated debentures due 2067 to fixed interest payments.

For further information, see the Junior

Subordinated Debentures section within Note 14 - Debt of Notes to Consolidated Financial Statements, included in The Hartford's 2023 Form 10-K Annual Report.

For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to Consolidated Financial Statements, included in The Hartford's 2024 Form 10-K Annual Report.

Foreign currency swaps are used to convert foreign currency denominated cash flows related to certain investment receipts to U.S.

1 unchanged sentence

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, equity, and commodity risk of certain fixed maturities and equities.

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, and equity risk of certain fixed maturities and equities.

In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting.

1 unchanged sentence

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities.

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge

against default risk and credit-related changes in the value of fixed maturity securities.

Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions.

1 unchanged sentence

The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Note 6 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Interest Rate Swaps and Futures

The Company uses interest rate swaps and futures to manage interest rate duration between assets and liabilities.

The Company uses interest rate swaps and, to a lesser extent, futures to manage interest rate duration between assets and liabilities.

In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward.

As of September 30, 2024 and December 31, 2023, the notional amount of interest rate swaps in offsetting relationships was $ 344 and $ 6.6 billion, respectively.

Foreign Currency Swaps and Forwards

As of March 31, 2025 and December 31, 2024, the notional amount of interest rate swaps in offsetting relationships was $ 333 and $ 344 , respectively.

Foreign Currency Swaps

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S.

7 unchanged sentences

Notional amounts are not necessarily reflective of credit risk.

Note 6 - Derivatives

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Derivative Balance Sheet Presentation

Net Derivatives Asset

Liability Derivatives

Derivatives Liability Derivatives

Notional Amount Fair Value Fair Value Fair Value

Hedge Designation/ Derivative Type Sep 30, 2024 Dec.

31, 2023 Sep 30, 2024 Dec.

Hedge Designation/ Derivative Type Mar 31, 2025 Dec.

31, 2024 Mar 31, 2025 Dec.

Cash flow hedges

6 unchanged sentences

Foreign exchange contracts

Foreign currency swaps and forwards 648 645 — — — — — —

Foreign currency swaps 607 647 — — — — — —

Credit contracts

9 unchanged sentences

Total derivatives $ 6,757 $ 7,081 $ 31 $ 45 $ 67 $ 88 $ ( 36 ) $ ( 43 )

Note 6 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Offsetting of Derivative Assets/Liabilities

2 unchanged sentences

Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S.

Note 6 - Derivatives

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Offsetting Derivative Assets and Liabilities

2 unchanged sentences

Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount

As of September 30, 2024

As of March 31, 2025

Other investments $ 67 $ 66 $ 36 $ ( 35 ) $ — $ 1

8 unchanged sentences

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the

same period or periods during which the hedged transaction affects earnings.

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Gains (Losses) Recognized in OCI

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Interest rate swaps $ 10 $ ( 17 )

1 unchanged sentence

Total $ 4 $ —

Note 6 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Gains (Losses) Reclassified from AOCI into Income

Three months ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense

Three months ended March 31,

Net Investment Income Interest Expense Net Investment Income Interest Expense

Interest rate swaps $ ( 2 ) $ 3 $ ( 7 ) $ 4

2 unchanged sentences

Total amounts presented on the Condensed Consolidated Statement of Operations $ 656 $ 50 $ 593 $ 50

As of September 30, 2024, the before tax deferred net losses on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $ 35 .

Note 6 - Derivatives

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

As of March 31, 2025, the before tax deferred net losses on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $ 24 .

This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months.

At that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income or interest expense, as applicable, over the term of the hedged instrument cash flows.

During the three and nine months ended September 30, 2024 and 2023, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

During the three months ended March 31, 2025 and 2024, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

Non-qualifying Strategies

1 unchanged sentence

Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Interest rate contracts

Interest rate swaps and futures $ ( 1 ) $ 3

Credit contracts

Credit derivatives that purchase credit protection — ( 3 ) — ( 55 )

Equity contracts

8 unchanged sentences

A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity.

credit default swaps in which the Company assumes credit risk may reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers.

The credit default swaps in which the Company assumes credit risk may primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers.

Note 6 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

2 unchanged sentences

Obligation(s) [1]

As of September 30, 2024

Value Weighted

Maturity Type Average

Rating Offsetting

Amount [3] Offsetting

As of March 31, 2025

Basket credit default swaps [4]

18 unchanged sentences

[5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option.

For further discussion, see the Fair Value Option section in N ot e 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.

For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral.

As of September 30, 2024 and December 31, 2023, the Company ha s pl edged cash collateral associated with derivative instruments of $ 26 and $ 25 , respectively .

As of March 31, 2025 and December 31, 2024, the Company ha s pl edged cash collateral associated with derivative instruments of $ 23 and $ 31 , respectively .

In general, collateral receivable is recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet.

As of September 30, 2024 and December 31, 2023, the Company pledged securities collateral associated with derivative instruments with a fair value of $ 11 and $ 14 , respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets.

As of March 31, 2025 and December 31, 2024, the Company pledged securities collateral associated with derivative instruments with a fair value of $ 5 and $ 1 , respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets.

The counterparties generally have the right to sell or re-pledge these securities.

In addition, as of September 30, 2024 and December 31, 2023, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $ 10 and $ 16 , respectively, which is recorded in other investments or other assets on the Company's Condensed Consolidated Balance Sheets.

As of September 30, 2024 and December 31, 2023, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $ 96 and $ 112 , respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets.

As of September 30, 2024 and December 31, 2023, the Company accepted cash collateral associated with derivative instruments of $ 57 and $ 49 , respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet.

The Company also accepted securities collateral as of September 30, 2024 and December 31, 2023, with a fair value of $ 0 for both periods, which the Company has the right to repledge or sell.

As of September 30, 2024 and December 31, 2023, the Company had no repledged securities.

In addition, as of September 30, 2024 and December 31, 2023, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Condensed Consolidated Balance Sheets .

In addition, as of March 31, 2025 and December 31, 2024, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $ 12 and $ 10 , respectively, which is recorded in other investments or other assets on the Company's Condensed Consolidated Balance Sheets.

As of March 31, 2025 and December 31, 2024, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $ 107 and $ 103 , respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets.

As of March 31, 2025 and December 31, 2024, the Company accepted cash collateral associated with derivative instruments of $ 62 and $ 78 , respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet.

Also, as of March 31, 2025 and December 31, 2024, the Company did no t hold securities collateral.

Note 7 - Premiums Receivable and Agents' Balances

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

1 unchanged sentence

Premiums Receivable and Agents' Balances

As of September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business") $ 6,027 $ 5,624

5 unchanged sentences

Total Premiums Receivable and Agents' Balances, Net of ACL $ 6,386 $ 5,998

$ 6,151 $ 5,607

ACL on Premiums Receivable and Agents' Balances

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.

Premiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less.

For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate.

A portion of the Company's Commercial Lines business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business").

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.

A portion of the Company's Business Insurance business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business").

Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount.

14 unchanged sentences

Rollforward of ACL on Premiums Receivable and Agents' Balances for the Three Months Ended

September 30, 2024 September 30, 2023

March 31, 2025 March 31, 2024

Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total

4 unchanged sentences

Ending ACL $ 105 $ 21 $ 126 $ 91 $ 20 $ 111

Note 7 - Premiums Receivable and Agents' Balances

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Note 8 - Reinsurance

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Rollforward of ACL on Premiums Receivable and Agents' Balances for the Nine Months Ended

September 30, 2024 September 30, 2023

Beginning ACL

$ 89 $ 20 $ 109 $ 85 $ 24 $ 109

Current period provision 46 2 48 42 2 44

Current period write-offs ( 44 ) ( 1 ) ( 45 ) ( 41 ) ( 1 ) ( 42 )

Current period recoveries 5 — 5 6 — 6

$ 96 $ 21 $ 117 $ 92 $ 25 $ 117

The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure.

5 unchanged sentences

Reinsurance recoverables include

an estimate of the amount of gross losses and loss adjustment expense ("LAE") reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported (" IBNR ") unpaid losses.

an estimate of the amount of gross losses and LAE reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported (" IBNR ") unpaid losses.

The Company’s estimate of losses and LAE reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants.

The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how IBNR losses will ultimately be ceded under reinsurance agreements.

The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how IBNR unpaid losses will ultimately be ceded under reinsurance agreements.

Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses.

Reinsurance Recoverables by Credit Quality Indicator

As of September 30, 2024 As of December 31, 2023

Group Benefits

As of March 31, 2025 As of December 31, 2024

Employee Benefits

Corporate Total P&C

Group Benefits

Employee Benefits

Corporate Total

18 unchanged sentences

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days.

To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and

operational quality of each potential reinsurer.

To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer.

In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating.

Note 8 - Reinsurance

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets.

6 unchanged sentences

The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles.

Credit ratings are forward-

looking and consider a variety of economic outcomes.

The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.

Credit ratings are forward-looking and consider a variety of economic outcomes.

Note 8 - Reinsurance

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.

As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools.

Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool.

The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.

The mandatory pools generally are funded through policy assessments or

surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.

The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans.

3 unchanged sentences

As a result, there is limited history of losses from insurer defaults.

Allowance for Uncollectible Reinsurance for the Three and Nine Months Ended

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Allowance for Uncollectible Reinsurance for the Three Months Ended

Three Months Ended March 31,

P&C beginning allowance for uncollectible reinsurance $ 72 $ 100

1 unchanged sentence

P&C beginning ACL 24 43

Current period provision 1 1 3 4

Current period gross write-offs ( 1 ) — ( 1 ) —

Current period provision (release) ( 4 ) 1

P&C ending ACL 20 44

1 unchanged sentence

P&C ending allowance for uncollectible reinsurance 72 98

Group Benefits allowance for uncollectible reinsurance 1 1 1 1

Employee Benefits allowance for uncollectible reinsurance 1 1

Corporate allowance for uncollectible reinsurance 2 2

1 unchanged sentence

Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

2 unchanged sentences

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

For the nine months ended September 30,

For the three months ended March 31,

Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 36,404 $ 34,044

$ 34,044 $ 33,083

Reinsurance and other recoverables 6,753 6,696

Beginning liabilities for unpaid losses and loss adjustment expenses, net 29,651 27,348

27,348 26,618

Provision for unpaid losses and loss adjustment expenses

1 unchanged sentence

Prior accident year development [1] ( 122 ) ( 56 )

( 221 ) ( 82 )

Total provision for unpaid losses and loss adjustment expenses 2,799 2,405

3 unchanged sentences

Total payments ( 2,154 ) ( 1,940 )

( 5,930 ) ( 6,702 )

Foreign currency adjustment 13 ( 5 )

Ending liabilities for unpaid losses and loss adjustment expenses, net 30,341 27,832

29,092 26,988

Reinsurance and other recoverables 6,764 6,705

Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 37,105 $ 34,537

$ 35,695 $ 33,453

Prior accident year development for the nine months ended September 30, 2024 includes a $ 87 benefit for amortization of a deferred gain under retroactive reinsurance accounting related to the Navigators Adverse Development Cover (the "Navigator's ADC") as the Company began collection recoveries of the ceded losses from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc, during the period.

[1] Prior accident year development for the three months ended March 31, 2025 and 2024 included a $ 32 and $ 24 benefit for amortization of a deferred gain under retroactive reinsurance accounting, respectively, related to the Navigators Adverse Development Cover (the "Navigator's ADC").

For additional information regarding the ADC reinsurance agreement, refer to "Change in Deferred Gain on Retroactive Reinsurance" discussion below.

Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Unfavorable (Favorable) Prior Accident Year Development

For the nine months ended September 30,

For the three months ended March 31,

Workers’ compensation $ ( 65 ) $ ( 67 )

1 unchanged sentence

General liability — 17

Marine ( 1 ) ( 1 )

Package business — —

1 unchanged sentence

Professional liability — ( 5 )

Bond ( 22 ) 12

Assumed reinsurance — 9

Automobile liability - Commercial Lines 26 6

Automobile liability - Personal Lines ( 13 ) —

Commercial automobile liability — —

Personal automobile liability ( 12 ) —

Homeowners ( 18 ) —

6 unchanged sentences

Total prior accident year development $ ( 122 ) $ ( 56 )

[1] The $ 87 change in deferred gain on retroactive reinsurance for the nine months ended September 30, 2024, is related to amortization of the Navigators ADC deferred gain.

[1] The $ 32 and $ 24 change in deferred gain on retroactive reinsurance for the three months ended March 31, 2025 and 2024, respectively, is related to amortization of the Navigators ADC deferred gain.

For additional information regarding the ADC reinsurance agreement, refer to "Change in Deferred Gain on Retroactive Reinsurance" discussion below.

Re-estimates of prior accident year reserves for the nine months ended September 30, 2024

Workers’ compensation reserves were decreased within the 2016 to 2020 accident years primarily in small commercial, driven by lower than previously estimated claim severity.

In addition, the 2020 accident year includes a $ 48 reduction of COVID-19 related reserves driven by favorable claim count emergence.

General liability reserves were increased primarily in response to higher frequency of large losses in the 2016 to 2019 accident years as well as increases in more recent accident years, with the increase in reserves for the three months ended September 30, 2024, focused more toward the recent accident years.

In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years.

Lastly, reserves for extra contractual liability claims and other miscellaneous run-off lines were reduced in response to recent favorable loss activity.

Professional liability reserves decreased modestly due to favorable development on directors' and officers' ("D&O") claims driven by the 2020 to 2022 accident years, partially offset by deterioration in older accident years.

Bond reserves decreased due to favorable development on commercial and contract surety driven by accident years 2019 and prior.

Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America surety and Latin America P&C businesses related to the 2020 to 2023 accident years.

Automobile liability reserves - Commercial Lines increased primarily due to adverse loss development within accident years 2022 and 2023 driven by higher severity than estimated.

Automobile liability reserves - Personal Lines were decreased primarily in response to better than anticipated accident year 2023 claim severity for property damage liability.

Re-estimates of prior accident year reserves for the three months ended March 31, 2025

Workers’ compensation reserves were decreased within the 2016 to 2020 accident years primarily in small business, driven by lower than previously estimated claim severity.

Personal automobile liability reserves were decreased primarily within accident years 2020 to 2023 as a result of lower than expected severity.

Homeowners reserves were decreased primarily due to favorable severity impacting accident year 2024.

Catastrophes reserves were decreased primarily within Commercial Lines driven by a reduction in reserves in accident years 2021 to 2022 related to favorable emergence related to various hail events, as well as favorable development in accident year 2022 related to Hurricane Ian.

Other reserve re-estimates, net, included a decrease in reserves due to lower severity than expected on Personal Lines automobile physical damage for accident year 2023, offset by an increase in reserves related to unfavorable development from participation in involuntary market pools.

Re-estimates of prior accident year reserves for the nine months ended September 30, 2023

Workers’ compensation reserves were decreased within the 2014 to 2019 accident years primarily in small commercial, driven by lower than previously estimated claim severity.

In addition, the 2020 accident year reflects a $ 38 reduction of COVID-19 related reserves.

General liability reserves were increased driven by higher frequency and estimated cost to settle large individual claims for the 2016 to 2019 accident years, partially offset by a decrease in reserves for the 2020 accident year due to favorable experience.

In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years.

Also included was a decrease in reserves for extra contractual liability claims and other miscellaneous run-off lines.

Package business reserves decreased primarily due to lower than previously estimated property severity for accident year 2019 and 2021.

Package liability is flat overall with reserve increases related to higher severity across multiple accident years offset by improvement in accident year 2020 due to favorable claim count emergence.

Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial property reserves were flat primarily due to unfavorable development for accident year 2022 in middle & large commercial, offset by favorable development in global specialty.

Professional liability reserves decreased modestly due to favorable development on directors' and officers' claims for the 2019 to 2021 accident years partially offset by deterioration on errors and omissions claims primarily for the 2018 accident year.

Bond reserves were increased primarily due to unfavorable development for 2013 and prior accident years related to customs bonds.

Assumed reinsurance reserves were increased due to higher reserve estimates in the specialty casualty, Latin America casualty and surety business.

Automobile liability reserves - Commercial Lines increased primarily due to adverse loss development within accident years 2017 to 2019.

Automobile liability reserves - Personal Lines were flat as increases for accident year 2022 from higher estimated severity and increasing attorney representation rates were fully offset by decreases, primarily within accident years 2019 to 2021, due to lower estimated severity.

Catastrophes reserves were decreased primarily within Commercial Lines driven by a reduction in reserves in accident year 2022 for Hurricane Ian and accident year 2021 for Hurricane Ida.

Uncollectible reinsurance was increased primarily in Commercial Lines related to a captive reinsurer and, to a lesser extent, an increase in reserves for potential collection disputes and credit concerns.

Other reserve re-estimates, net, were increased primarily due to an increase in accident year 2022 Personal Lines automobile physical damage severity.

Change in Deferred Gain on Retroactive Reinsurance

The Company has in place an ADC reinsurance agreement that covers substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the “Navigators ADC”) up to an aggregate limit of $ 300 , for which the Company had previously ceded the available limit.

As of December 31, 2023, the Company had paid claims related to the Navigators ADC in excess of the $ 1.816 billion acquisition date reserves plus the $ 100 retention.

During the three and nine months ended September 30, 2024, the Company collected recoveries from NICO and as a result amortized $ 26 and $ 87 of the deferred gain within benefits, losses and loss adjustment expenses in the three and nine month periods, respectively.

As of September 30, 2024 and December 31, 2023, the deferred gain on the Navigators ADC was $ 122 and $ 209 , respectively, and is included in other liabilities on the Condensed Consolidated Balance Sheets.

Other reserve re-estimates, net, were decreased due to lower than expected severity on Personal Insurance automobile physical damage for accident year 2024, partially offset by unfavorable development from participation in involuntary market pools.

Re-estimates of prior accident year reserves for the three months ended March 31, 2024

Workers’ compensation reserves were decreased within the 2016 to 2020 accident years primarily in small business, driven by lower than previously estimated claim severity.

In addition, the 2020 accident year includes a $ 20 reduction of COVID-19 related reserves driven by favorable claim count emergence.

General liability reserves were increased within the 2016 to 2019 accident years driven by higher frequency of large losses on individual claims of excess and umbrella coverages within middle & large business and deterioration in global specialty primary construction business.

Marine reserves increased related to higher frequency of large losses on individual U.S.

cargo claims for the 2023 accident year.

Professional liability reserves decreased modestly due to favorable development on directors' and officers' ("D&O") claims driven by the 2020 accident year.

Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America surety business related to the 2021 to 2023 accident years.

Other reserve re-estimates, net, were decreased due to lower severity than expected on Personal Insurance automobile physical damage for accident year 2023, partially offset by unfavorable development from participation in involuntary market pools.

Settlement Agreement with Boy Scouts of America

5 unchanged sentences

Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Change in Deferred Gain on Retroactive Reinsurance

The Company has in place an ADC reinsurance agreement that covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the “Navigators ADC”) up to an aggregate limit of $ 300 , for which the Company had previously ceded the available limit.

During the three months ended March 31, 2025 and 2024, the Company collected recoveries from National

Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., and as a result amortized $ 32 and $ 24 of the deferred gain within benefits, losses and loss adjustment expenses, respectively.

As of March 31, 2025 and December 31, 2024, the deferred gain on the Navigators ADC was $ 32 and $ 64 , respectively, and is included in other liabilities on the Condensed Consolidated Balance Sheets.

Group Life, Disability and Accident Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

For the nine months ended September 30,

For the three months ended March 31,

Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,206 $ 8,274

13 unchanged sentences

[1] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[2] Includes unallocated loss adjustment expenses ("ULAE") of $ 130 and $ 136 for the nine months ended September 30, 2024 and 2023, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations .

Re-estimates of prior incurral years reserves for the nine months ended September 30, 2024

Group disability - Prior period reserve estimates decreased by approximately $ 394 largely driven by long-term disability claim incidence lower than prior assumptions and favorable recoveries on prior incurral year claims, as well as a favorable change in the recovery rate assumption.

[2] Includes unallocated loss adjustment expenses ("ULAE") of $ 44 and $ 45 for the three months ended March 31, 2025 and 2024, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations .

Re-estimates of prior incurral years reserves for the three months ended March 31, 2025

Group disability - Prior period reserve estimates decreased by approximately $ 156 largely driven by strong long-term disability claim recoveries.

Group life and accident (including group life premium waiver) - Prior period reserve estimates decreased by approximately $ 39 largely driven by favorable mortality emergence and continued low incidence in group life premium waiver.

Re-estimates of prior incurral years reserves for the nine months ended September 30, 2023

Re-estimates of prior incurral years reserves for the three months ended March 31, 2024

Group disability- Prior period reserve estimates decreased by approximately $ 149 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $ 25 largely driven by continued low incidence in group life premium waiver.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $ 37 largely driven by favorable mortality emergence and continued low incidence in group life premium waiver.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $ 3 driven by lower than previously expected claim incidence.

Note 10 - Reserve for Future Policy Benefits

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

1 unchanged sentence

Rollforward of Reserve for Future Policy Benefits

For the nine months ended September 30,

For the three months ended March 31,

Payout Annuities Life Conversions Paid-up Life Payout Annuities Life Conversions Paid-up Life

17 unchanged sentences

Net Reserve for Future Policy Benefits

As of September 30,

As of March 31,

Payout Annuities $ 129 $ 135

4 unchanged sentences

Undiscounted Expected Future Gross Premiums and Benefit Payments

As of September 30,

As of March 31,

Payout Annuities [1]

7 unchanged sentences

Note 10 - Reserve for Future Policy Benefits

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Weighted-Average Interest Rates

As of September 30,

As of March 31,

Payout Annuities

6 unchanged sentences

Current discount rate 5.1 % 5.2 %

The Company completed a review of cash flow assumptions in the third quarter 2024 and 2023, resulting in immaterial changes to the reserve for future policy benefits.

For payout annuities, the net effect of updating cash flow assumptions was offset by a corresponding impact to the deferred profit liability.

Gross premiums and interest accretion recognized on long-duration insurance policies for the nine months ended September 30, 2024 and 2023 were immaterial.

Gross premiums and interest accretion recognized on long-duration insurance policies for the three months ended March 31, 2025 and 2024 were immaterial.

Other Policyholder Funds and Benefits Payable

Other policyholder funds and benefits payable of $ 613 and $ 645 as of September 30, 2024 and 2023 respectively, included universal life long-duration contacts of $ 209 and $ 226 as well as policyholder balances related to short-duration contracts of $ 404

Other policyholder funds and benefits payable of $ 611 and $ 633 as of March 31, 2025 and 2024 respectively, included universal life long-duration contacts of $ 202 and $ 218 as well as policyholder balances related to short-duration contracts of $ 409

The universal life long-duration contacts presented in the table below were economically ceded to Prudential as part of the sale of the Company's former individual life business, which closed in 2013.

Universal Life Long Duration Contracts Rollforward

For the nine months ended September 30,

For the three months ended March 31,

Balance, beginning of the period $ 206 $ 223

9 unchanged sentences

[1] Net amount at risk is defined as the current death benefit in excess of the current account value as of the balance sheet date.

As of September 30, 2024 and 2023, universal life contracts of $ 208 and $ 225 , respectively, had crediting rates at their guaranteed minimums ranging from 4 %- 5 % .

As of March 31, 2025 and 2024, universal life contracts of $ 201 and $ 217 , respectively, had crediting rates at their guaranteed minimums ranging from 4 %- 5 % .

Note 12 - Income Taxes

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

1 unchanged sentence

Income Tax Rate Reconciliation

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Tax provision at U.S.

federal statutory rate $ 165 $ 191

Nontaxable investment income ( 9 ) ( 12 ) ( 31 ) ( 32 )

Other ( 6 ) 3 ( 35 ) ( 12 )

Nontaxable net investment income ( 5 ) ( 11 )

Decrease in deferred tax valuation allowance — ( 12 )

Stock-based compensation, net ( 12 ) ( 16 )

Provision for income taxes $ 153 $ 158

1 unchanged sentence

Rollforward of Unrecognized Tax Benefits

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Balance, beginning of period $ 24 $ 26

Gross increases - tax positions in current period — 1

Gross decreases - tax positions in current period ( 1 ) — ( 1 ) —

Lapse of statute of limitations ( 4 ) — ( 4 ) ( 1 )

Balance, end of period $ 24 $ 27

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release.

The Company believes it is reasonably possible approximately $ 14 of its currently unrecognized tax benefits may be recognized by the end of 2025 as a result of a lapse of the applicable statute of limitations.

Other Tax Matters

Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction, and as part of this assessment, the Company reduced the valuation allowance related to the deferred tax asset for foreign net operating losses from $ 12 as of December 31, 2023 to $ 0 as of September 30, 2024.

In making the assessment, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies which management views as prudent and feasible.

The federal income tax audits for the Company have been completed through 2013.

The acquired Navigators Group is currently under IRS audit for the pre-acquisition 2019 tax period.

The statute of limitations is closed through the 2020 tax year with the exception of net operating loss carryforwards utilized in open tax years and the Navigators pre-acquisition 2019 tax period.

The federal statute of limitations for the Company is closed through the 2020 tax year with the exception of net operating loss carryforwards utilized in open tax years and the Navigators pre-acquisition 2019 tax period.

Management believes that adequate provision has been made in the Company's Condensed Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

Shelf Registrations

On September 23, 2024, the Company filed with the Securities and Exchange Commission an automatic shelf registration statement (Registration No.

333-282288) for the potential offering and sale of debt and equity securities.

The registration statement allows for the following types of securities to be offered:

debt securities, junior subordinated debt securities, guarantees, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units.

Because The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement became effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three-year life of the registration statement.

Lloyd's Letter of Credit Facility

On October 21, 2024, The Hartford amended and restated its committed credit facility with a syndicate of lenders (the “Lloyd’s Facility”).

The purpose of this facility is to issue letters of credit that may be treated as Funds at Lloyd's to support underwriting capacity provided by the Hartford Corporate Underwriters Limited to the Lloyd’s syndicate 1221 for the 2025 and 2026 underwriting years of account (and prior open years).

The amended and restated Lloyd’s Facility has two tranches, with one tranche extending a $ 74 commitment and the other tranche extending a £ 79 million ($ 106 as of September 30, 2024).

The term of the facility is two years.

As of September 30, 2024, letters of credit with an aggregate face amount of $ 74 and £ 73 million, or $ 98 , were outstanding under the Lloyd's Facility.

As of December 31, 2023, letters of credit with an aggregate face amount of $ 74 and £ 79 million, or $ 101 , were outstanding under the Lloyd's Facility.

Among other covenants, the Lloyd's Facility contains financial covenants regarding The Hartford’s consolidated net worth and financial leverage.

As of September 30, 2024 and December 31, 2023, The Hartford was in compliance with all financial covenants of the facility.

Note 14 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commitments and Contingencies

4 unchanged sentences

The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves.

Subject to the uncertainties related to sexual molestation and sexual abuse claims, including those discussed in Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of this Form 10-Q and in Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses, of the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the following discussion under the caption “COVID-19 Pandemic Business Income Insurance Litigation” and under the caption “Run-off Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

Subject to the uncertainties related to sexual molestation and sexual abuse claims, including those discussed in Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of this Form 10-Q and in Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses, of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in the following discussion under the caption “Run-off Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts.

4 unchanged sentences

Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

COVID-19 Pandemic Business Income Insurance Litigation

Like many others in the property and casualty insurance industry, beginning in April 2020, various direct and indirect subsidiaries of the Company (collectively the "Hartford Writing Companies”), and in some instances the Company itself, were named as defendants in lawsuits seeking insurance coverage

under commercial insurance policies issued by the Hartford Writing Companies for alleged losses resulting from the shutdown or suspension of their businesses due to the spread of COVID-19.

More than 300 such lawsuits were filed, including numerous lawsuits purportedly filed on behalf of broad nationwide or statewide classes of policyholders.

Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts, interest, and attorneys' fees.

Many of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages.

Some of the lawsuits also allege that the Hartford Writing Companies engaged in unfair business practices by collecting or retaining excess premium.

The Company and its subsidiaries deny the allegations and maintain that based on the terms of the applicable insurance policies, they have no coverage obligations with respect to these suits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic.

Specifically, the policies generally require direct physical loss or damage to insured property and/or contain exclusions for any loss caused directly or indirectly by the presence, growth, proliferation, spread or activity of a virus, subject to a narrow set of exceptions not applicable in connection with this pandemic, and which often contain a pollution and contamination exclusion that, among other things, expressly excludes from coverage any loss caused by material that threatens human health or welfare.

The Company has obtained numerous dismissals in its favor and affirmances on appeal and continues to vigorously defend the remaining suits in the trial and appellate courts.

Nevertheless, given the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits still present uncertainties and contingencies that are not yet fully known, including whether additional claims or lawsuits could be filed, the extent to which any state or nationwide classes will be certified, and the size and scope of any such classes.

In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, almost none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss to allow management to reasonably estimate the possible loss or range of loss, if any.

Thus, despite the high percentage of favorable outcomes to date in both the trial and appellate courts, given the lack of certainty around the remaining lawsuits, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate, could have a material adverse effect on the Company’s consolidated operating results or liquidity.

Note 13 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

4 unchanged sentences

The vast majority of the Company's exposure to A&E relates to accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E").

In addition, since 1986, the Company has written A&E exposures under general liability policies and pollution liability under homeowners policies, which are reported in the Commercial Lines and Personal Lines segments, respectively.

In addition, since 1986, the Company has written A&E exposures under general liability policies and pollution liability under homeowners policies, which are reported in the Business Insurance and Personal Insurance segments, respectively.

Prior to 1986, the Company wrote several different categories of insurance contracts that may cover A&E claims.

10 unchanged sentences

Management believes these issues are not likely to be resolved in the near future.

In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages against insureds, emerging risks such as per-and polyfluoroalkyl substances ("PFAS"), the risks inherent in major litigation, inconsistent and emerging legal doctrines concerning the existence and scope of coverage for

In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages against insureds, emerging risks from products and substances alleged to cause damage, such as per-and polyfluoroalkyl substances ("PFAS"), the risks inherent in major litigation, inconsistent and emerging legal doctrines concerning the existence and scope of coverage for

environmental claims, and the scope and level of complexity of the remediation required by regulators.

6 unchanged sentences

The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity.

While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses.

The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results or liquidity.

For its Run-off A&E claims, as of September 30, 2024, the Company reported $ 133 of net A&E reserves, including the benefit of losses ceded to an A&E ADC with NICO (collectively the "A&E ADC").

For its Run-off A&E claims, as of March 31, 2025, the Company reported $ 181 of net A&E reserves, including the benefit of losses ceded to the A&E ADC with NICO.

In addition, the Company has recorded a $ 850 deferred gain within other liabilities for losses economically ceded to NICO but for which the benefit is not recognized in earnings until later periods.

1 unchanged sentence

The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results or liquidity.

The Company’s A&E ADC reinsurance agreement reinsures substantially all A&E reserve development for 2016 and prior accident years, including Run-off A&E and A&E reserves included in Commercial Lines and Personal Lines.

The A&E ADC has a coverage limit of $ 1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $ 1.7 billion.

As of September 30, 2024 , the Company has incurred $ 1,438 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty, leaving $ 62 of coverage available for future adverse net reserve development, if any.

Cumulative adverse

As of March 31, 2025 , the Company has incurred $ 1.5 billion in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty, leaving no remaining coverage available for future adverse net reserve development, if any.

Cumulative adverse development of A&E claims for accident years 2016 and prior in excess of the treaty limit are absorbed as a charge to earnings by the Company.

The effect of future charges could be material to the Company’s consolidated operating results or liquidity.

For more information on the A&E ADC, refer to Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements included in the Company's 2024 Form 10-K Annual Report.

Note 13 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

development of A&E claims for accident years 2016 and prior could ultimately exceed the $ 1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company.

In these scenarios, the effect of these charges could be material to the Company’s consolidated operating results or liquidity.

For more information on the A&E ADC, refer to Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements included in the Company's 2023 Form 10-K Annual Report.

Derivative Commitments

2 unchanged sentences

The settlement amount is determined by netting the derivative positions transacted under each agreement.

If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of September 30, 2024 was $ 52 for which the legal entities have posted collateral of $ 36 in the normal course of business.

Based on derivative contractual terms as of September 30, 2024, a downgrade of the current financial strength ratings by either Moody's or S&P would no t require additional assets to be posted as collateral.

If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by

increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of March 31, 2025 was $ 33 for which the legal entities have posted collateral of $ 28 in the normal course of business.

Based on derivative contractual terms as of March 31, 2025, a downgrade of the current financial strength ratings by either Moody's or S&P would no t require additional assets to be posted as collateral.

This requirement could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated.

3 unchanged sentences

Equity Repurchase Program

During the nine months ended September 30, 2024 and 2023, the Company repurchased $ 1.1 billion ( 11.0 million shares) and $ 1.05 billion ( 14.6 million shares), respectively, of common stock under the $ 3.0 billion share repurchase authorization that is effective until December 31, 2024 as authorized by the Board of Directors.

In addition to this authorization, in July 2024, the Board of Directors approved a share repurchase authorization for up to $ 3.3 billion effective from August 1, 2024 to December 31, 2026.

As of September 30, 2024, the Company has $ 3.5 billion remaining for equity repurchases under both these

current share repurchase programs.

During the period October 1, 2024 through October 23, 2024, the Company repurchased $ 115 ( 1.0 million common shares) under these repurchase programs.

The timing of any repurchases is dependent on several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations .

During the three months ended March 31, 2025 and 2024, the Company repurchased $ 400 ( 3.5 million shares) and $ 350 ( 3.8 million shares), respectively, of common stock under Board authorized share repurchase programs covering the applicable periods.

As of March 31, 2025, the Company has $ 2.75 billion remaining for equity repurchases under the current $ 3.3 billion share repurchase program, which is effective until December 31, 2026.

During the period April 1, 2025 through April 23, 2025,

the Company repurchased $ 124 ( 1.1 million common shares) under this repurchase program.

The timing of any repurchases of shares is dependent on several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations .

Changes In and Reclassifications From Accumulated Other Comprehensive Income (Loss)

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2024

Changes in AOCI, Net of Tax for the Three Months Ended March 31, 2025

Net Unrealized Gain (Loss) on Fixed Maturities, AFS Unrealized Losses on Fixed Maturities, AFS with ACL Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Liability for Future Policy Benefits Adjustments Pension and Other Postretirement Plan Adjustments AOCI,

7 unchanged sentences

Note 15 - Accumulated Other Comprehensive Income (Loss)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2024

Beginning balance $ ( 1,482 ) $ ( 8 ) $ 21 $ 37 $ 25 $ ( 1,442 ) $ ( 2,849 )

OCI before reclassifications 900 3 13 5 ( 8 ) — 913

Amounts reclassified from AOCI 127 1 2 — — 25 155

OCI, before tax 1,027 4 15 5 ( 8 ) 25 1,068

Income tax benefit (expense) ( 216 ) ( 1 ) ( 3 ) ( 1 ) 2 ( 5 ) ( 224 )

OCI, net of tax 811 3 12 4 ( 6 ) 20 844

Ending balance $ ( 671 ) $ ( 5 ) $ 33 $ 41 $ 19 $ ( 1,422 ) $ ( 2,005 )

Reclassifications from AOCI

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Affected Line Item in the Condensed Consolidated Statement of Operations

Three Months Ended March 31, 2025 Affected Line Item in the Condensed Consolidated Statement of Operations

Net Unrealized Gain (Loss) on Fixed Maturities, AFS

3 unchanged sentences

$ ( 8 ) Net income

Unrealized Losses on Fixed Maturities, AFS with ACL

Fixed Maturities, AFS $ ( 1 ) $ ( 1 ) Net realized gains (losses)

( 1 ) ( 1 ) Total before tax

— — Income tax expense

$ ( 1 ) $ ( 1 ) Net income

Net Gain (Loss) on Cash Flow Hedging Instruments

12 unchanged sentences

Total amounts reclassified from AOCI $ ( 11 ) Net income

Note 16 - Accumulated Other Comprehensive Income (Loss)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2023

Beginning balance $ ( 2,277 ) $ ( 10 ) $ 31 $ 36 $ 32 $ ( 1,336 ) $ ( 3,524 )

OCI before reclassifications ( 876 ) ( 1 ) ( 5 ) ( 1 ) 19 1 ( 863 )

Amounts reclassified from AOCI 26 2 ( 1 ) — — 7 34

OCI, before tax ( 850 ) 1 ( 6 ) ( 1 ) 19 8 ( 829 )

Income tax benefit (expense) 179 — 2 — ( 4 ) ( 2 ) 175

OCI, net of tax ( 671 ) 1 ( 4 ) ( 1 ) 15 6 ( 654 )

Ending balance $ ( 2,948 ) $ ( 9 ) $ 27 $ 35 $ 47 $ ( 1,330 ) $ ( 4,178 )

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2023

Changes in AOCI, Net of Tax for the Three Months Ended March 31, 2024

7 unchanged sentences

Note 15 - Accumulated Other Comprehensive Income (Loss)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

The Hartford Insurance Group, Inc.

Notes To Condensed Consolidated Financial Statements (continued)

Reclassifications from AOCI

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Affected Line Item in the Condensed Consolidated Statement of Operations

Three Months Ended March 31, 2024 Affected Line Item in the Condensed Consolidated Statement of Operations

Net Unrealized Gain (Loss) on Fixed Maturities, AFS

Fixed Maturities, AFS $ ( 26 ) $ ( 74 ) Net realized gains (losses)

( 26 ) ( 74 ) Total before tax

( 5 ) ( 16 ) Income tax expense

$ ( 21 ) $ ( 58 ) Net income

Unrealized Losses on Fixed Maturities, AFS with ACL

Fixed Maturities, AFS $ ( 2 ) $ ( 4 ) Net realized gains (losses)

Fixed Maturities, AFS $ ( 7 ) Net realized gains

( 7 ) Total before tax

18 unchanged sentences

Net periodic cost (benefit) is recognized in insurance operating costs and other expenses in the Condensed Consolidated Statement of Operations.

Based on the funded status of the U.S.

qualified defined benefit pension plan, the Company does not anticipate contributing to the plan in 2024.

The Company has not determined whether, and to what extent, contributions may be made to the U.S.

qualified defined benefit pension plan in 2025.

The Company will monitor the funded status of the U.S.

qualified defined benefit pension plan during 2025 to make this determination.

Net Periodic Cost (Benefit)

Pension Benefits Other Postretirement Benefits

Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31, Three Months Ended March 31,

2025 2024 2025 2024

5 unchanged sentences

Net periodic cost (benefit) $ ( 8 ) $ ( 5 ) $ 1 $ 1

Note 18 - Restructuring and Other Costs

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

RESTRUCTURING AND OTHER COSTS

In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next.

Hartford Next reduced annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities.

The activities were substantially completed as of December 31, 2023.

Termination benefits related to workforce reductions and professional fees are included within restructuring and other costs in the Condensed Consolidated Statement of Operations.

Subsequent to September 30, 2024, the Company expects to incur additional costs including amortization of right of use assets and other lease exit costs, other IT costs to retire applications and other expenses.

Total restructuring and other costs are expected to be approximately $ 127 , before tax, and will be recognized in the Corporate category and not allocated to the reportable segments.

Restructuring and Other Costs, Before Tax

Incurred in the Three Months Ended September 30, Incurred in the Nine Months Ended September 30, Cumulative Incurred Through September 30, 2024 Total Amount Expected to be Incurred

2024 2023 2024 2023

Severance benefits $ — $ ( 2 ) $ — $ ( 5 ) $ 35 $ 35

IT costs — 2 — 4 25 25

Professional fees and other expenses 1 1 2 5 67 67

Total restructuring and other costs, before tax $ 1 $ 1 $ 2 $ 4 $ 127 $ 127

Index to MD&A

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements