15 unchanged sentences
Critical Accounting Estimates
−Removed: Commercial Lines
−Removed: Personal Lines
+Added: Business Insurance
+Added: Persona l Insurance
Property & Casualty Other Operations
−Removed: Group Benefits
+Added: Employe e Benefits
Hartford Funds
49 unchanged sentences
Reconciliation of Net Income to Core Earnings
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31,
Net income $ 630 $ 753
2 unchanged sentences
Adjustments to reconcile net income available to common stockholders to core earnings:
−Removed: Net realized losses excluded from core earnings, before tax 12 76 40 136
+Added: Net realized losses (gains) excluded from core earnings, before tax 47 (30)
Restructuring and other costs, before tax — 1
3 unchanged sentences
Core earnings $ 639 $ 709
−Removed: [1] During 2024, the Company collected recoveries from National Indemnity Company ("NICO”), a subsidiary of Berkshire Hathaway Inc.
−Removed: related to the Navigators adverse development cover ("Navigators ADC") 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.
+Added: [1] For the three months ended March 31, 2025 and 2024,the Company recorded amortization of the deferred gain related to the Navigators adverse development cover ("Navigators ADC") of $32 and$24, respectively.
For additional information regarding the ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
[2] Primarily represents the federal income tax expense (benefit) related to before tax items not included in core earnings.
−Removed: Core Earnings Margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance.
+Added: Core Earnings Margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Employee Benefits segment's operating performance.
Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses).
1 unchanged sentence
GAAP measure.
−Removed: The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings.
−Removed: Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits.
+Added: The Company believes that core earnings margin provides investors with a valuable measure of the performance of Employee Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings.
+Added: Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Employee Benefits.
Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance.
−Removed: A reconciliation of net income margin to core earnings margin is set forth in the Results of Operations section within MD&A - Group Benefits.
+Added: A reconciliation of net income margin to core earnings margin is set forth in the Results of Operations section within MD&A - Employee Benefits.
Current Accident Year Catastrophe Ratio- A component of the loss and loss adjustment expense ratio, represents the ratio of catastrophe losses incurred in the current accident year ("CAY") (net of reinsurance) to earned premiums.
5 unchanged sentences
The current accident year catastrophe ratio includes the effect of catastrophe losses, but does not include the effect of reinstatement premiums.
−Removed: Expense Ratio- For Commercial Lines and Personal Lines is the ratio of underwriting expenses less fee income, to earned premiums.
−Removed: Underwriting expenses include the amortization of
−Removed: deferred policy acquisition costs ("DAC") and insurance operating costs and other expenses, including certain centralized services costs and bad debt expense.
+Added: Expense Ratio- For Business Insurance and Personal Insurance is the ratio of underwriting expenses less fee income, to earned premiums.
+Added: Underwriting expenses include the
+Added: amortization of deferred policy acquisition costs ("DAC"), amortization of other intangible assets and insurance operating costs and other expenses, including certain centralized services costs and bad debt expense.
DAC includes commissions, taxes, licenses and fees and other incremental direct underwriting expenses and are amortized over the policy term.
−Removed: The expense ratio for Group Benefits is expressed as the ratio of insurance operating costs and other expenses including amortization of intangibles and amortization of DAC, to premiums and other considerations, excluding buyout premiums.
−Removed: The expense ratio for Commercial Lines, Personal Lines and Group Benefits does not include integration and other transaction costs associated with an acquired business.
+Added: The expense ratio for Employee Benefits is expressed as the ratio of insurance operating costs and other expenses including amortization of intangibles and amortization of DAC, to premiums and other considerations, excluding buyout premiums.
+Added: The expense ratio for Business Insurance, Personal Insurance and Employee Benefits does not include integration and other transaction costs associated with an acquired business.
Fee Income- Is largely driven from amounts earned as a result of contractually defined percentages of AUM in our Hartford Funds business.
12 unchanged sentences
As one of the factors used to determine pricing, the Company’s practice is to first make an overall assumption about claim frequency and severity for a given line of business and then, as part of the rate-making process, adjust the assumption as appropriate for the particular state, product or coverage.
−Removed: Current Accident Year Loss and Loss Adjustment Expense Ratio Before Catastrophes- A measure of the cost of non-catastrophe loss and loss adjustment expenses incurred in the current accident year divided by earned premiums.
−Removed: Management believes that the current accident year loss and loss adjustment expense ratio before catastrophes is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development ("PYD").
−Removed: Loss Ratio, excluding Buyouts- Utilized for the Group Benefits segment and is expressed as a ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums.
−Removed: Since Group Benefits occasionally buys a block of claims for a stated premium amount, the Company excludes this buyout from the loss ratio used for evaluating the profitability of the business as buyouts may distort the loss ratio.
+Added: Underlying Loss and Loss Adjustment Expense Ratio- This non-GAAP financial measure is the cost of non-catastrophe loss and loss adjustment expenses incurred in the current accident year divided by earned premiums.
+Added: The loss and loss adjustment expense ratio is the most directly comparable U.S GAAP measure.
+Added: Management believes that the underlying loss and loss adjustment expense ratio is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development ("PYD").
+Added: A reconciliation of the loss and loss adjustment expense ratio to the underlying loss and loss adjustment expense ratio is set forth in the Reportable Segment and Corporate Operating Summaries section within MD&A.
+Added: Loss Ratio, excluding Buyouts- Utilized for the Employee Benefits segment and is expressed as a ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums.
+Added: Since Employee Benefits occasionally buys a block of claims for a stated premium amount, the Company excludes this buyout from the loss ratio used for evaluating the profitability of the business as buyouts may distort the loss ratio.
Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.
+Added: Net investment income excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income on a consolidated level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments.
+Added: The Company believes that net investment income excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments.
+Added: Net investment income is the most directly comparable U.S.
+Added: GAAP measure.
+Added: A reconciliation of net investment income to net investment income excluding limited partnerships and other alternative investments - is set forth in the Investment Results section within MD&A.
Mutual Fund and Exchange-Traded Fund Assets- Are owned by the shareowners of those products and not by the Company and, therefore, are not reflected in the Company’s Condensed Consolidated Financial Statements, except in instances where the Company seeds new investment products.
3 unchanged sentences
Net new business premium plus renewal written premium equals total written premium.
−Removed: Policy Count Retention- Represents the number of renewal policies issued during the current year period divided by the new and renewal policies issued in the prior period.
−Removed: Policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or because of a decision to reduce
−Removed: premium writings in certain classes of business or states.
+Added: Policy Count Retention- For small business, represents the number of renewal policies issued during the current year period divided by the new and renewal policies issued in the prior period.
+Added: Policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or because of a decision to reduce premium writings in certain classes of business or states.
Policy count retention is also affected by advertising and rate actions taken by us and competitors.
−Removed: Effective Policy Count Retention- Represents the number of policies expected to renew in the current year period, based on contract effective dates, divided by the new and renewal policies effective in the prior period.
+Added: Effective Policy Count Retention- For Personal Insurance, represents the number of policies expected to renew in the current year period, based on contract effective dates, divided by the new and renewal policies effective in the prior period.
Effective policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or because of a decision to reduce premium writings in certain classes of business or states.
2 unchanged sentences
Policies in-force- Represents the number of policies with coverage in effect as of the end of the period.
−Removed: The number of policies in force is a growth measure used for Personal Lines as well as small commercial within Commercial Lines and is affected by both new business growth and policy count retention.
+Added: The number of policies in-force is a growth measure used for Personal Insurance, small business, and middle market lines within middle & large business and is affected by both new business growth and retention.
Policyholder Dividend Ratio- The ratio of policyholder dividends to earned premium.
−Removed: Premium Retention- For middle & large commercial, represents the ratio of prior period premiums that were successfully renewed divided by premiums associated with policies available for renewal in the current period.
+Added: Premium Retention- For middle & large business, represents the ratio of prior period premiums that were successfully renewed divided by premiums associated with policies available for renewal in the current period.
Premium retention excludes premium amounts from annual audits, renewal written price increases and changes in exposure, including amount of insurance.
−Removed: Premium retention statistics are subject to change from period to period based on a number of factors, including the effect of subsequent cancellations and non-renewals .
−Removed: Prior Accident Year Loss and Loss Adjustment Expense Ratio- Represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
−Removed: Reinstatement Premiums- Represents additional ceded premium paid for the reinstatement of the amount of reinsurance coverage that was reduced as a result of the Company ceding losses to reinsurers.
−Removed: Renewal Earned Price Increase (Decrease)- Written premiums are earned over the policy term, which is six months for certain Personal Lines automobile business and twelve months for substantially all of the remainder of the Company’s Property and Casualty ("P&C") business.
−Removed: Since the Company earns premiums over the six to twelve month term of the policies, renewal earned price increases (decreases) lag renewal written price increases (decreases) by six to twelve months.
+Added: Premium retention statistics are subject to change from period to period based on a number of
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Renewal Written Price Increase (Decrease)- For Commercial Lines, represents the combined effect of rate changes and individual risk pricing decisions per unit of exposure on policies that renewed and includes amount of insurance.
−Removed: For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure.
−Removed: For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.
+Added: factors, including the effect of subsequent cancellations and non-renewals .
+Added: Prior Accident Year Loss and Loss Adjustment Expense Ratio- Represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
+Added: Reinstatement Premiums- Represents additional ceded premium paid for the reinstatement of the amount of reinsurance coverage that was reduced as a result of the Company ceding losses to reinsurers.
+Added: Renewal Earned Price Increase (Decrease)- Written premiums are earned over the policy term, which is six months for certain personal automobile business and twelve months for substantially all of the remainder of the Company’s Property and Casualty ("P&C") business.
+Added: Since the Company earns premiums over the six to twelve month term of the policies, renewal earned price increases (decreases) lag renewal written price increases (decreases) by six to twelve months.
+Added: Renewal Written Price Increase (Decrease)- For Business Insurance, represents the combined effect of rate changes, and individual risk pricing decisions per unit of exposure on policies that renewed and includes amount of insurance.
+Added: For Personal Insurance, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure.
+Added: For Personal Insurance, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.
The rate component represents the change in rate impacting renewal policies as previously filed with and approved by state regulators during the period.
10 unchanged sentences
The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of the Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings.
−Removed: ROA, core earnings, should
−Removed: not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business.
+Added: ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business.
Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance.
1 unchanged sentence
Underlying Combined Ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business.
−Removed: Combined ratio is the most directly comparable GAAP measure.
+Added: Combined ratio is the most directly comparable U.S.
+Added: GAAP measure.
The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development.
The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance.
−Removed: A reconciliation of combined ratio to underlying combined ratio is set forth in the Results of Operations section within MD&A - Commercial Lines and Personal Lines.
−Removed: Underwriting Gain (Loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss.
−Removed: Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses.
−Removed: Net income (loss) is the most directly comparable GAAP measure.
+Added: A reconciliation of combined ratio to underlying combined ratio is set forth in the Results of Operations section within MD&A - Business Insurance and Personal Insurance.
+Added: Underwriting Gain (Loss)- This non-GAAP financial measure is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses.
+Added: Net income (loss) is the most directly comparable U.S.
+Added: GAAP measure.
+Added: The Hartford's management evaluates profitability of the Business and Personal Insurance segments primarily on the basis of underwriting gain or loss.
Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing.
5 unchanged sentences
Reconciliation of Net Income to Underwriting Gain (Loss)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: Commercial Lines
+Added: Three Months Ended March 31,
+Added: Business Insurance
Net income $ 477 $ 573
1 unchanged sentence
Net investment income (437) (391)
−Removed: Net realized losses 32 38 70 108
+Added: Net realized losses (gains) 24 (12)
Other expense 1 2
1 unchanged sentence
Underwriting gain $ 187 $ 301
−Removed: Personal Lines
−Removed: Net income (loss) $ 31 $ (12) $ 54 $ (73)
+Added: Personal Insurance
+Added: Net income $ 5 $ 34
Adjustments to reconcile net income (loss) to underwriting loss:
Net investment income (57) (50)
−Removed: Net realized losses 2 5 9 11
+Added: Net realized losses (gains) 2 (1)
Net servicing and other income (5) (4)
−Removed: Income tax expense (benefit) 8 (5) 12 (23)
+Added: Income tax expense — 8
Underwriting loss $ (55) $ (13)
3 unchanged sentences
Net investment income (18) (18)
−Removed: Net realized losses — 2 3 6
−Removed: Other expense 4 — 4 —
Income tax expense 3 1
4 unchanged sentences
Written and earned premium are recorded net of ceded reinsurance premium.
−Removed: Traditional life and disability insurance type products, such as those sold by Group Benefits, collect premiums from policyholders in exchange for financial protection for the policyholder from a specified insurable loss, such as death or disability.
+Added: Traditional life and disability insurance type products, such as those sold by Employee Benefits, collect premiums from policyholders in exchange for financial protection for the policyholder from a specified insurable loss, such as death or disability.
These premiums together with net investment income earned are used to pay the contractual obligations under these insurance contracts.
6 unchanged sentences
The Hartford's Operations
−Removed: The Hartford conducts business principally in five reportable segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.
−Removed: The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill and other expenses not allocated to the reportable segments.
+Added: The Hartford conducts business principally in five reportable segments including Business Insurance, Personal Insurance, Property & Casualty Other Operations, Employee Benefits and Hartford Funds, as well as a Corporate category.
+Added: The Company includes in the Corporate category capital raising activities (including equity financing, debt financing and related interest expense), purchase accounting adjustments related to goodwill, reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, transaction expenses incurred in connection with an acquisition, certain M&A costs, and other expenses not allocated to the reportable segments.
Corporate also includes investment management fees and expenses related to managing third-party assets.
6 unchanged sentences
Premiums charged for insurance coverage are earned principally on a pro rata basis over the terms of the related policies in-force.
−Removed: The profitability of the Company's property and casualty insurance businesses over time is greatly influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance, the size of its in force block, making reliable estimates of actual mortality and morbidity, and its ability to manage its expense ratio which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses.
+Added: The profitability of the Company's property and casualty insurance businesses over time is greatly influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance, the size of its in force block, making reliable estimates of actual mortality and morbidity, and its ability to manage its expense ratio which it accomplishes through economies of scale and its management of acquisition costs and other insurance operating costs.
Pricing adequacy depends on a number of factors, including the ability to obtain regulatory approval for rate changes, proper evaluation of underwriting risks, the ability to project future loss cost frequency and severity based on historical loss experience adjusted for known trends, the Company’s response to rate actions taken by competitors, its expense levels and expectations about regulatory and legal developments.
−Removed: The Company seeks to price its insurance policies such that insurance premiums and future net investment income earned on premiums received will cover underwriting expenses and the ultimate cost of paying claims reported on the policies and provide for a profit margin.
+Added: The Company seeks to price its insurance policies such that insurance premiums and future net investment income earned on premiums received will cover insurance operating costs and the ultimate cost of paying claims reported on the policies and provide for a profit margin.
For many of its insurance products, the Company is required to obtain approval for its premium rates from state insurance departments and the Lloyd's Syndicate's ability to write business is subject to Lloyd's approval for its premium capacity each year.
−Removed: Most of Personal Lines written premium is associated with our exclusive licensing agreement with AARP, which is effective through December 31, 2032.
+Added: Most of Personal Insurance written premium is associated with our exclusive licensing agreement with AARP, which is effective through December 31, 2032.
This agreement provides an important competitive advantage given the size of the 50 plus population and the strength of the AARP brand.
−Removed: Similar to property and casualty, profitability of the group benefits business depends, in large part, on the ability to evaluate and price risks appropriately and make reliable estimates of mortality, morbidity, disability and longevity.
−Removed: To manage the pricing risk, Group Benefits generally offers term insurance policies, allowing for the adjustment of rates or policy
−Removed: terms in order to minimize the adverse effect of market trends, loss costs, declining interest rates and other factors.
−Removed: However, as policies are typically sold with rate guarantees an average of three years, pricing for the Company’s products could prove to be inadequate if loss and expense trends emerge adversely during the rate guarantee period or if investment returns are lower than expected at the time the products were sold.
+Added: Similar to property and casualty, profitability of the Employee Benefits business depends, in large part, on the ability to evaluate and price risks appropriately and make reliable estimates of mortality, morbidity, disability and longevity.
+Added: To manage the pricing risk, Employee Benefits generally offers term insurance policies, allowing for the adjustment of rates or policy terms in order to minimize the adverse effect of market trends, loss costs, declining interest rates and other factors.
+Added: However, as policies are typically sold with rate guarantees an
+Added: average of three years, pricing for the Company’s products could prove to be inadequate if loss and expense trends emerge adversely during the rate guarantee period or if investment returns are lower than expected at the time the products were sold.
For some of its products, the Company is required to obtain approval for its premium rates from state insurance departments.
−Removed: New and renewal business for group benefits business, particularly for long-term disability (" LTD") , are priced using an assumption about expected investment yields over time.
−Removed: While the Company employs asset-liability duration matching strategies to mitigate risk and may use interest-rate sensitive derivatives to hedge its exposure in the Group Benefits investment portfolio, cash flow patterns related to the payment of benefits and claims are uncertain and actual investment yields could differ significantly from expected investment yields, affecting profitability of the business.
−Removed: In addition to appropriately evaluating and pricing risks, the profitability of the Group Benefits business depends on other factors, including the Company’s response to pricing decisions and other actions taken by competitors, its ability to offer voluntary products and self-service capabilities, the persistency of its sold business and its ability to manage its expenses which it seeks to achieve through economies of scale and operating efficiencies.
+Added: New and renewal business for employee benefits business, particularly for long-term disability (" LTD") , are priced using an assumption about expected investment yields over time.
+Added: While the Company employs asset-liability duration matching strategies to mitigate risk and may use interest-rate sensitive derivatives to hedge its exposure in the Employee Benefits investment portfolio, cash flow patterns related to the payment of benefits and claims are uncertain and actual investment yields could differ significantly from expected investment yields, affecting profitability of the business.
+Added: In addition to appropriately evaluating and pricing risks, the profitability of the Employee Benefits business depends on other factors, including the Company’s response to pricing decisions and other actions taken by competitors, its ability to offer voluntary products and self-service capabilities, the persistency of its sold business and its ability to manage its expenses which it seeks to achieve through economies of scale and operating efficiencies.
The financial results of the Company’s mutual fund and ETF businesses depend largely on the amount of AUM and the level of fees charged based, in part, on asset share class and fund type.
4 unchanged sentences
Due to the need to maintain sufficient liquidity to satisfy claim obligations, the majority of the Company’s invested assets have been held in available-for-sale ("AFS") securities, including, among other asset classes, corporate bonds, municipal bonds, government debt, short-term debt, mortgage-backed securities, asset-backed securities ("ABS") and collateralized loan obligations ("CLOs").
−Removed: The Company also invests in commercial mortgage loans as well as limited partnerships and alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns.
+Added: The Company also invests in commercial mortgage loans as well as limited partnerships and other alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns.
The primary investment objective for the Company is to maximize economic value, consistent with acceptable risk parameters, including the management of credit risk and interest rate sensitivity of invested assets, while generating sufficient net of tax income to meet policyholder and corporate obligations.
3 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: THIRD QUARTER FINANCIAL HIGHLIGHTS
+Added: First Quarter Financial Highlights
Net Income Available to Common Stockholders Net Income Available to Common Stockholders per Diluted Share Book Value per Diluted Share
−Removed: Ý Increased $116 or 18% Ý Increased $0.47 or 22% Ý Increased $6.96 or 14%
−Removed: + The effect of higher earned premiums in P&C and Group Benefits
−Removed: + Increase in net income available to common stockholders + Net income in excess of common stockholder dividends
−Removed: + Lower net realized losses + Reduction in outstanding shares due to share repurchases + Impact of a decrease in net unrealized losses on AFS securities in AOCI
+Added: Þ Decreased $123 or 16% Þ Decreased $0.32 or 13% Ý Increased $1.98 or 4%
+Added: - Higher catastrophe losses in P&C - Decrease in net income available to common stockholders + Net income in excess of common stockholder dividends
+Added: - A change to net realized losses from net realized gains + Reduction in outstanding shares due to share repurchases + An increase in AOCI, primarily driven by a decrease in net unrealized losses on AFS securities
+Added: - Higher long-term disability and supplemental health loss ratios - Dilutive effect of share repurchases
+Added: + The effect of higher earned premiums in P&C and Employee Benefits
+Added: + Lower underlying loss and LAE ratio in Personal Insurance
+Added: + Greater favorable P&C prior accident year reserve development
+ Higher Net Investment Income
−Removed: + Lower CAY loss and LAE ratio before catastrophes in P&C
−Removed: - Dilutive effect of share repurchases
−Removed: - Higher catastrophe losses in P&C
−Removed: - Higher expense ratio in P&C and GB
−Removed: Investment Yield, After Tax Property & Casualty Combined Ratio Group Benefits Net Income Margin
+Added: + Lower group life loss ratio
+Added: + Lower paid family and medical leave products loss ratio
+Added: Investment Yield, After Tax Property & Casualty Combined Ratio Employee Benefits Net Income Margin
Ý Increased 10 bps Ý Deteriorated 4.1 points Ý Increased 1.2 points
−Removed: + A higher yield on fixed maturity securities due to reinvesting at higher rates + Higher catastrophe losses
−Removed: + Lower net realized losses
−Removed: + Higher CAY loss and LAE ratio before catastrophes in Commercial Lines
−Removed: + Improved group life loss ratio
−Removed: - Lower returns on limited partnerships and other alternative investments - Higher expense ratio
−Removed: - Lower CAY loss and LAE ratio before catastrophes in Personal Lines
−Removed: - Higher loss ratio on supplemental health and group disability products
+Added: + A higher yield on fixed maturity securities due to reinvesting at higher rates, partially offset by a lower yield on variable-rate securities.
+Added: + Higher catastrophe losses in P&C
+Added: + Lower group life loss ratio
+Added: + A slightly higher P&C expense ratio primarily due to higher Personal Insurance marketing expense + Lower paid family and medical leave products loss ratio
+Added: + Higher returns on limited partnerships and other alternative investments - Lower underlying loss and LAE ratio in Personal Insurance - Higher long-term disability and supplemental health loss ratios
+Added: - Greater favorable P&C prior accident year reserve development - A change to net realized losses from net realized gains
Index to MD&A
4 unchanged sentences
Consolidated Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Earned premiums $ 5,835 $ 5,446 7 %
1 unchanged sentence
Net investment income 656 593 11 %
−Removed: Net realized losses (13) (90) 86 % (44) (161) 73 %
+Added: Net realized gains (losses) (49) 28 NM
Other revenues 22 19 16 %
7 unchanged sentences
Total benefits, losses and expenses 6,027 5,508 9 %
−Removed: Income, before tax 952 813 17 % 2,775 2,138 30 %
+Added: Income before income taxes
+Added: 783 911 (14 %)
Income tax expense 153 158 (3) %
2 unchanged sentences
Net income available to common stockholders $ 625 $ 748 (16) %
−Removed: Three months ended September 30, 2024 compared to the three months ended September 30, 2023
−Removed: Net income available to common stockholders increased by $116, primarily driven by:
−Removed: • Lower net realized losses of $77, before tax;
−Removed: • Higher net investment income of $62, before tax, primarily driven by a higher yield on fixed maturities and a higher level of invested assets, partially offset by lower income from limited partnerships and other alternative investments and;
−Removed: • A slight increase in the P&C underwriting gain of $5, before tax, driven by the effect of earned premium growth, a lower CAY loss and LAE ratio before catastrophes in Personal Lines and a higher level of favorable prior accident year reserve development, partially offset by higher CAY catastrophe losses, a higher CAY loss and LAE ratio before catastrophes in Commercial Lines, and a higher expense ratio.
−Removed: These increases were partially offset by:
−Removed: • In Group Benefits, a higher expense ratio, a higher loss ratio on supplemental health products, and a higher group disability loss ratio, partially offset by a lower group life loss ratio and the effect of higher fully insured ongoing premiums.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net income available to common stockholders decreased by $123, primarily driven by:
+Added: • A lower P&C underwriting gain of $130, before tax, driven by higher CAY catastrophe losses, partially offset by the effect of earned premium growth, a lower underlying loss and LAE ratio in Personal Insurance and a higher level of favorable prior accident year reserve development;
+Added: • A $77, before tax, change to net realized losses in the 2025 period compared to net realized gains in the 2024 period.
+Added: These decreases were partially offset by:
+Added: • Higher net investment income of $63, before tax, primarily driven by a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments, partially offset by a lower yield on variable-rate securities;
+Added: • In Employee Benefits, a lower group life loss ratio, the effect of higher fully insured ongoing premiums, and a lower loss ratio on paid family and medical leave products, partially offset by a higher long-term disability ratio and a higher loss ratio on supplemental health products.
For a discussion of the Company's operating results by segment, see MD&A - Reportable Segment And Corporate Operating Summaries.
3 unchanged sentences
Earned Premiums
−Removed: Earned premiums increased by $424 primarily due to:
−Removed: • An increase in P&C reflecting a 10% increase in Commercial Lines and a 13% increase in Personal Lines.
−Removed: – Contributing to the increase in Commercial Lines was the effect of an increase in new business across most lines of business, earned pricing increases, and higher insured exposures, principally in workers’ compensation and property lines.
−Removed: – For Personal Lines, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
−Removed: • An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.
−Removed: Fee income increased primarily driven by higher daily average assets within Hartford Funds resulting from an increase in equity market levels, partially offset by net outflows over the preceding twelve months.
+Added: Earned premiums increased by $389 or 7%, primarily due to:
+Added: • An increase in P&C reflecting a 9% increase in Business Insurance and a 11% increase in Personal Insurance.
+Added: – Contributing to the increase in Business Insurance was the effect of an increase in new business across most lines of business and earned pricing increases.
+Added: – For Personal Insurance, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
+Added: • An increase in Employee Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%.
+Added: Fee income increased primarily due to a $10 increase in Hartford Funds driven by higher daily average assets resulting from an increase in equity market levels, partially offset by net outflows over the preceding twelve month period.
Net Investment Income
−Removed: Net investment income increased primarily due to the impact of reinvesting at higher interest rates and a higher level of invested assets, partially offset by a lower level of income on limited partnerships and other alternative investments.
−Removed: Net realized losses improved primarily due to:
−Removed: • Gains on interest rate derivatives in the 2024 period compared to losses in the 2023 period due to lower interest rates;
−Removed: • Valuation improvements on equity securities in the 2024 period compared to declines in the 2023 period.
−Removed: These increases were partially offset by:
−Removed: • Higher net losses on sales of fixed maturities;
+Added: [1] Limited partnerships and other alternative investments of $16 and $39 for the three months ended March 31, 2024 and 2025 respectively.
+Added: Net investment income increased primarily due to the impact of a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments, partially offset by a lower yield on variable-rate securities.
+Added: Net realized gains (losses) changed to a net realized loss in the 2025 period compared to a net realized gain in the 2024 period, primarily due to:
+Added: • Valuation declines on equity securities in the 2025 period compared to improvements in the 2024 period;
• Losses on transactional foreign currency revaluation in the 2025 period compared to gains in the 2024 period.
7 unchanged sentences
• An increase in Property & Casualty of $394 which was attributable to:
−Removed: – An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $209, before tax, primarily due to the effect of higher earned premiums and a slightly higher CAY loss and LAE ratio before catastrophes in Commercial Lines, partially offset by a lower CAY loss and LAE ratio before catastrophes in Personal Lines.
+Added: – An increase in P&C CAY loss and LAE before catastrophes of $154, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower underlying loss and LAE ratio in Personal Insurance;
– An increase in CAY catastrophe losses of $306, before tax.
−Removed: Catastrophe losses in the 2024 period included losses from hurricanes, including a loss of $104 from Hurricane Helene, and tropical storms primarily in the Southeast and South regions, and to a lesser extent, tornado, wind and hail events primarily in the Midwest, Northeast and Mountain West regions.
−Removed: Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States and, to a lesser extent, losses from hurricanes and tropical storms in the Southeast and West Coast.
+Added: Catastrophe losses in the 2025 period included $325, net of reinsurance, related to the January 2025 California Wildfire Event, as well as losses from tornado, wind and hail events mainly in the Midwest and South regions.
+Added: Catastrophe losses in the 2024 period included losses from tornado, wind and hail mainly in the Midwest, South and Mid-Atlantic regions, as well as winter storms, primarily in the Northeast, Pacific and South regions.
Partially offset by:
−Removed: – Net favorable prior accident year reserve development of $50, before tax, in P&C compared to $43 in the prior year period.
−Removed: Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation and Personal Lines automobile physical damage, partially offset by increases in reserves for general liability and Commercial Lines automobile liability.
−Removed: The 2024 period also included a benefit of $26 related to amortization of the Navigators ADC deferred gain.
−Removed: Prior accident year reserve development in the 2023 period was a net favorable $43, before tax, primarily driven by decreases in reserves related to workers’
−Removed: Losses and LAE Incurred for Group Benefits
−Removed: compensation and package business, partly offset by an increase in reserves for general liability.
+Added: – A favorable change of $66, before tax, in P&C net prior accident year reserve development, with development in the 2025 period of $122, compared to $56 in the prior year period.
+Added: Favorable prior year reserve development in the 2025 period was primarily driven by decreases in reserves related to workers' compensation, homeowners, and Personal Insurance automobile liability and physical damage.
+Added: Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation and Personal Insurance automobile physical damage, partially offset by increases in reserves for general liability, assumed reinsurance, and marine.
+Added: Also included within net prior accident year reserve development for three months ended March 31, 2025 and 2024 was a benefit of $32 and $24, respectively, related to amortization of the Navigators ADC deferred gain.
+Added: Losses and LAE Incurred for Employee Benefits
For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
−Removed: • A slight increase in Group Benefits of $15, before tax, primarily driven by the effect of higher earned premiums, a higher loss ratio on supplemental health products, and a higher loss ratio on paid family and medical leave products, partially offset by lower group life mortality and a favorable change in the long-term disability recovery rate assumption.
−Removed: Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.
+Added: • A slight decrease in Employee Benefits of $5, before tax, primarily driven by lower group life mortality, and a lower loss ratio on paid family and medical leave products, largely offset by the effect of higher earned premiums, a higher loss ratio on long-term disability and supplemental health products.
+Added: Amortization of deferred policy acquisition costs increased from the prior year period primarily driven by Business Insurance, reflecting an increase in earned premiums across all lines of business.
Insurance operating costs and other expenses increased due to:
−Removed: • Increased expense from higher staffing costs, including higher incentive compensation and benefits costs, partly in response to increased business volume;
−Removed: • Higher direct marketing costs in Personal Lines.
−Removed: Income tax expense increased primarily due to an increase in income before tax.
+Added: • Higher staffing costs, largely in response to increased business volume;
+Added: • Higher direct marketing costs in Personal Insurance;
+Added: • An increase in doubtful accounts expense partly due to higher business volume;
+Added: • Higher commissions due to increased business volume and a slightly higher commission ratio due to mix of business.
+Added: Income tax expense decreased primarily due to a decrease in income before tax.
For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
2 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
−Removed: Net income available to common stockholders increased by $525 primarily driven by:
−Removed: • An increase in P&C underwriting gain of $250, before tax, driven by the effect of earned premium growth, a higher level of favorable prior accident year reserve development, and lower CAY loss and LAE ratio before catastrophes in Personal Lines, partially offset by higher CAY catastrophe losses;
−Removed: • Higher net investment income of $202, befo re tax, primarily driven by a higher yield on fixed maturities and a higher level of invested assets, partially offset by lower income from limited partnerships and other alternative investments;
−Removed: • Lower net realized losses of $117, before tax;
−Removed: • In Group Benefits, a lower group life loss ratio and the effect of higher fully insured ongoing premiums, partially offset by a higher expense ratio, a higher loss ratio on supplemental health products, and a higher group disability loss ratio.
−Removed: For a discussion of the Company's operating results by segment, see MD&A - Reportable Segment and Corporate Operating Summaries.
−Removed: Earned Premiums
−Removed: Earned premiums increased by $1,165, or 7%, primarily due to:
−Removed: • An increase in P&C reflecting a 9% increase in Commercial Lines and a 12% increase in Personal Lines.
−Removed: – Contributing to the increase in Commercial Lines was the effect of an increase in new business across most lines of business, earned pricing increases, and higher insured exposures, principally in workers’ compensation and property lines.
−Removed: – For Personal Lines, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
−Removed: Net Investment Income
−Removed: • An increase in Group Benefits earned premium of 2%, including an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.
−Removed: Fee income increased, primarily due to a $33 increase in Hartford Funds driven by higher daily average assets resulting from an increase in equity market levels, partially offset by net outflows over the preceding twelve months.
−Removed: Net investment income increased primarily due to the impact of reinvesting at higher interest rates, a higher level of invested asset s, and, to a lesser extent, a higher yield on variable-rate securities, partially offset by a lower level of income on limited partnerships and other alternative investments.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Net realized losses improved primarily due to:
−Removed: • Gains on interest rate derivatives in the 2024 period compared to losses in the 2023 period due to lower interest rates;
−Removed: • No losses on credit derivatives in the 2024 period compared to losses in the 2023 period;
−Removed: • Valuation improvements on equity securities in the 2024 period compared to valuation declines and sales in the 2023 period.
−Removed: These increases were partially offset by:
−Removed: • Higher net losses on sales of fixed maturities.
−Removed: For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.
−Removed: BENEFITS, LOSSES AND EXPENSES
−Removed: Losses and LAE Incurred for P&C
−Removed: Benefits, losses and loss adjustment expenses increased $490, due to:
−Removed: • An increase in Property & Casualty of $509, which was attributable to:
−Removed: – An increase in P&C CAY loss and loss adjustment expenses before catastrophes of $555, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower CAY loss and LAE ratio in Personal Lines;
−Removed: – An increase in CAY catastrophe losses of $93, before tax.
−Removed: Catastrophe losses in the 2024 period included losses from tornado, wind and hail events across several regions of the United States, as well as losses from hurricanes and tropical storms mainly in the Southeast and South regions, and, to a lesser extent, from winter storms, mainly in the Pacific, Northeast, and South regions.
−Removed: Catastrophe losses in the 2023 period included losses from tornado, wind and hail events across several regions of the United States, and losses from winter storms along the East and West Coasts.
−Removed: Losses and LAE Incurred for Group Benefits
−Removed: Partially offset by:
−Removed: – Net favorable prior accident year reserve development of $221, before tax, in P&C compared to net favorable prior accident year reserve development in the 2023 period of $82.
−Removed: Favorable prior year reserve development in the 2024 period was primarily driven by decreases in reserves related to workers' compensation, catastrophes, bond, Personal Lines automobile physical damage, homeowners, and Personal Lines automobile liability, partially offset by increases in reserves for general liability, Commercial Lines automobile liability, and assumed reinsurance.
−Removed: The 2024 period also included a benefit of $87 related to amortization of the Navigators ADC deferred gain.
−Removed: Prior accident year reserve development in the 2023 period was a net favorable $82, before tax, primarily driven by decreases in reserves related to workers' compensation and catastrophes, offset by increases in reserves for general liability, Personal Lines automobile physical damage, assumed reinsurance and bond.
−Removed: For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Partially offset by:
−Removed: • A decrease in Group Benefits of $19, before tax, primarily driven by lower group life mortality, favorable long-term disability claim recoveries and incidence, and a favorable change in the long-term disability recovery rate assumption, partially offset by the effect of higher earned premiums and a higher loss ratio on paid family and medical leave products.
−Removed: Amortization of deferred policy acquisition costs increased from the prior year period driven by Commercial Lines, reflecting an increase in earned premiums across all commercial lines of business.
−Removed: Insurance operating costs and other expenses increased due to:
−Removed: • Increased expense from higher staffing costs, including higher incentive compensation and benefits costs, and commissions in Group Benefits, partly in response to increased business volume;
−Removed: • Higher direct marketing costs in Personal Lines.
−Removed: Income tax expense increased primarily due to an increase in income before tax.
−Removed: For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
Investment Results
Composition of Invested Assets
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Amount Percent Amount Percent
9 unchanged sentences
[1] Primarily consists of equity fund investments, overseas deposits, consolidated investment funds, and derivative instruments which are carried at fair value.
−Removed: September 30, 2024 compared to December 31, 2023
−Removed: Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value.
−Removed: Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds, high-quality residential mortgage-backed securities ("RMBS") and CLOs, partially offset by net reductions to U.S.
−Removed: treasuries, tax-exempt municipal bonds, and commercial mortgage-backed securities ("CMBS").
−Removed: The increase was also due to higher valuations as a result of lower interest rates and tighter credit spreads.
+Added: March 31, 2025 compared to December 31, 2024
+Added: Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value, partially offset by a decrease in short-term investments.
+Added: Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds, high-quality ABS and residential mortgage-backed securities ("RMBS"), partially offset by net reductions to tax-exempt municipal bonds.
+Added: Short-term investments decreased primarily due to reallocation into fixed maturities, AFS.
Net Investment Income
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: (Before tax) Amount Yield [1] Amount Yield [1] Amount Yield [1] Amount Yield [1]
+Added: Three Months Ended March 31,
+Added: (Before tax) Amount Yield [1] Amount Yield [1]
Fixed maturities [2] $ 574 4.7 % $ 526 4.5 %
5 unchanged sentences
Total net investment income 656 4.3 % 593 4.1 %
+Added: Adjustment for net investment income from limited partnerships and other alternative investments (39) 0.1 % (16) 0.2 %
Total net investment income excluding limited partnerships and other alternative investments $ 617 4.4 % $ 577 4.3 %
2 unchanged sentences
[3] Primarily includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Total net investment income increased primarily due to the impact of a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments, partially offset by a lower yield on variable-rate securities.
+Added: Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates, partially offset by a lower yield on variable-rate securities.
+Added: Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S.
+Added: Treasury securities, for the three months ended March 31, 2025 was 5.6%, which was above the average yield of sales and maturities of 4.9% for the same period.
+Added: Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S.
+Added: Treasury securities, for the three months ended March 31, 2024 was 6.1%, which was above the average yield of sales and maturities of 5.0% for the same period.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Total net investment income increased primarily due to the impact of reinvesting at higher interest rates and a higher level of invested assets, partially offset by a lower level of income on limited partnerships and other alternative investments.
−Removed: Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates.
−Removed: Average reinvestment rates, on fixed maturities and mortgage loans, excluding certain U.S.
−Removed: Treasury securities, for
−Removed: the three and nine months ended September 30, 2024, were 5.5% and 6.0%, respectively, which were above the average yield of sales and maturities of 4.4% and 4.7%, respectively.
−Removed: Average reinvestment rates for the three and nine months ended September 30, 2023, were 6.0% and 5.7%, respectively, which were above the average yield of sales and maturities of 4.5% and 4.2%, respectively.
−Removed: For the 2024 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be above the portfolio yield earned in 2023 due to the higher rate environment.
+Added: For the 2025 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be relatively consistent with the portfolio yield earned in 2024.
The estimated impact on annualized net investment income yield is subject to variability including the impact of evolving market conditions.
Net Realized Gains (Losses)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(Before tax) 2025 2024
5 unchanged sentences
Other, net [4] (28) (3)
−Removed: Net realized losses $ (13) $ (90) $ (44) $ (161)
−Removed: [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.
−Removed: 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.
−Removed: [2] See Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments within the Investment Portfolio Risks and Risk Management section of the MD&A.
−Removed: [3] See ACL on Mortgage Loans within the Investment Portfolio Risks and Risk Management section of the MD&A.
−Removed: [4] 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.
−Removed: 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.
−Removed: Three and nine months ended September 30, 2024
−Removed: Gross gains and losses on sales were primarily due to sales of U.S.
−Removed: treasuries, corporate securities, and tax-exempt municipals to fund purchases of higher-yielding investments.
+Added: Net realized gains (losses) $ (49) $ 28
+Added: [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.
+Added: [2] See Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments within the Enterprise Risk Management — Investment Portfolio Risk section of this MD&A.
+Added: [3] See ACL on Mortgage Loans within the Enterprise Risk Management — Investment Portfolio Risk section of this MD&A.
+Added: [4]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.
+Added: Three months ended March 31, 2025
+Added: Gross gains and losses on sales were primarily due to sales of tax-exempt municipals and corporate securities.
+Added: Equity securities net losses were primarily driven by a decrease in value due to lower equity market levels.
+Added: Other, net includes losses of $10 on transactional foreign currency revaluation and $7 related to a mortgage loan modification.
+Added: Three months ended March 31, 2024
+Added: Gross gains and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals.
Equity securities net gains were primarily driven by an increase in value due to higher equity market levels.
−Removed: Other, net gains for the three and nine month periods ended September 30, 2024 primarily included gains of $12 and $9, respectively, on interest rate derivatives driven by changes in interest rates, gains of $11 and $6 on equity derivatives driven by changes in equity market levels, and losses of $11 and $5, respectively, on transactional foreign currency revaluation.
−Removed: Three and nine months ended September 30, 2023
−Removed: Gross gains and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals, in addition to sales of U.S.
−Removed: treasuries for duration and/or liquidity management.
−Removed: Equity securities net losses for the three month period ended September 30, 2023 were primarily driven by a decline in value due to lower equity market levels.
−Removed: Equity securities net gains for the nine month period ended September 30, 2023 were primarily driven by an increase in value due to higher equity market levels.
−Removed: Other, net losses for the three and nine month periods ended September 30, 2023 primarily included losses of $71 and $53, respectively, on interest rate derivatives driven by an increase in interest rates and losses of $3 and $55, on credit derivatives primarily due to changes in valuations.
−Removed: Also included for the three month period ended September 30, 2023 were gains of $16 on FVO securities due to changes in credit spreads and gains of $13 on transactional foreign currency revaluation.
+Added: Other, net losses include losses of $5 on equity derivatives due to higher equity market levels and $1 on impairments of limited partnerships and other alternative investments.
+Added: Also included are gains of $4 on FVO securities due to appreciation in value and $3 on interest rate derivatives driven by changes in interest rates.
Index to MD&A
7 unchanged sentences
• property and casualty insurance product reserves, net of reinsurance;
−Removed: • group benefit LTD reserves, net of reinsurance;
+Added: • group LTD reserves, net of reinsurance;
• evaluation of goodwill for impairment;
6 unchanged sentences
In addition, - Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2024 Form 10-K Annual Report should be read in conjunction with this section to assist with obtaining an understanding of the underlying accounting policies related to these estimates.
−Removed: The following discussion updates certain of the Company’s critical accounting estimates as of September 30, 2024.
+Added: The following discussion updates certain of the Company’s critical accounting estimates as of March 31, 2025.
Property & Casualty Insurance Product Reserves, Net of Reinsurance
−Removed: P&C Loss and Loss Adjustment Expense Reserves, Net of Reinsurance, by Segment as of September 30, 2024
+Added: P&C Loss and Loss Adjustment Expense Reserves, Net of Reinsurance, by Segment as of March 31, 2025
Based on the results of the quarterly reserve review process, the Company determines the appropriate reserve adjustments, if any, to record.
10 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Nine Months Ended September 30, 2024
−Removed: Commercial Lines Personal
−Removed: Property & Casualty Other Operations
−Removed: Total Property & Casualty
+Added: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Three Months Ended March 31, 2025
+Added: Business Insurance
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty
Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 31,380 $ 2,240 $ 2,784 $ 36,404
−Removed: $ 29,181 $ 2,068 $ 2,795 $ 34,044
Reinsurance and other recoverables 4,637 20 2,096 6,753
Beginning liabilities for unpaid losses and loss adjustment expenses, net 26,743 2,220 688 29,651
−Removed: 24,582 2,040 726 27,348
Provision for unpaid losses and loss adjustment expenses
2 unchanged sentences
Prior accident year development (83) (39) — (122)
−Removed: (173) (55) 7 (221)
Total provision for unpaid losses and loss adjustment expenses 2,088 711 — 2,799
−Removed: 5,583 1,988 7 7,578
Change in deferred gain on retroactive reinsurance included in other liabilities 32 — — 32
2 unchanged sentences
Ending liabilities for unpaid losses and loss adjustment expenses, net 27,410 2,297 634 30,341
−Removed: 26,223 2,268 601 29,092
Reinsurance and other recoverables 4,647 50 2,067 6,764
Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 32,057 $ 2,347 $ 2,701 $ 37,105
−Removed: $ 30,785 $ 2,295 $ 2,615 $ 35,695
Earned premiums and fee income $ 3,335 $ 907
−Removed: Loss and loss expense paid ratio [2]
−Removed: Loss and loss expense incurred ratio 59.3 78.1
+Added: Loss and loss adjustment expense paid ratio [1] 44.0 69.9
+Added: Loss and loss adjustment expense ratio 62.8 79.1
Prior accident year development (pts) [2] (2.5) (4.3)
−Removed: [1] 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 ADC as the Company began collecting recoveries of the ceded losses from NICO during the period.
−Removed: For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
−Removed: [2] The “loss and loss expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums and fee income.
+Added: [1] The “loss and loss adjustment expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums and fee income.
[2] “Prior accident year development (pts)” represents the ratio of prior accident year development to earned premiums.
Current Accident Year Catastrophe Losses, Net of Reinsurance
−Removed: Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024
−Removed: Lines Personal
−Removed: Lines Total [1] Commercial
−Removed: Lines Personal
+Added: Three Months Ended March 31, 2025
+Added: Business Insurance Personal
+Added: Insurance Total [1]
+Added: Wildfires [1] $ 153 $ 118 $ 271
Wind and hail 44 61 105
Winter storms 17 8 25
−Removed: Hurricanes and tropical storms [1] 100 61 161 100 61 161
−Removed: Wildfires — — — 1 10 11
−Removed: Other international (3) — (3) 1 — 1
Catastrophes before assumed reinsurance 214 187 401
1 unchanged sentence
Total catastrophe losses $ 280 $ 187 $ 467
−Removed: [1] For the three and nine months ended September 30, 2024, included losses from Hurricane Helene of $104, net of reinsurance, with $8 of the losses in the global assumed reinsurance business.
−Removed: [2] Catastrophe losses incurred on global assumed reinsurance business are not covered under the Company's aggregate property catastrophe treaty.
+Added: [1] Catastrophe losses from the January 2025 California Wildfire Event were $325, net of reinsurance, and included losses of $54 in the global assumed reinsurance business.
+Added: [2] Catastrophe losses incurred on global assumed reinsurance business are not covered under the Company's per occurrence and aggregate property catastrophe treaties.
For further information on the treaty, refer to Enterprise Risk Management — Insurance Risk section of this MD&A.
−Removed: Hurricane Milton made landfall in Florida on October 9, 2024, and taking into consideration the reported claim volume to date, the Company’s preliminary loss estimate for the fourth quarter of 2024 is a range of $65 to $110, net of reinsurance and before tax.
Index to MD&A
2 unchanged sentences
Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Three Months Ended September 30, 2024
−Removed: Commercial Lines Personal
−Removed: Lines Property & Casualty Other Operations Total Property & Casualty Insurance
+Added: Three Months Ended March 31, 2025
+Added: Business Insurance Personal
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty Insurance
Workers’ compensation $ (65) $ — $ — $ (65)
13 unchanged sentences
Prior accident year development before change in deferred gain (51) (39) — (90)
−Removed: (10) (14) — (24)
Change in deferred gain on retroactive reinsurance included in other liabilities [2] (32) — — (32)
Total prior accident year development $ (83) $ (39) $ — $ (122)
−Removed: $ (36) $ (14) $ — $ (50)
−Removed: [1] Other reserve re-estimates, net for the three months ended September 30, 2024 includes a $10 decrease in personal lines automobile physical damage reserves.
−Removed: [2] The $26 change in deferred gain on retroactive reinsurance for the three months ended September 30, 2024, is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
−Removed: For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Nine Months Ended September 30, 2024
−Removed: Commercial Lines Personal
−Removed: Lines Property & Casualty Other Operations Total Property & Casualty Insurance
−Removed: Workers’ compensation $ (188) $ — $ — $ (188)
−Removed: Workers’ compensation discount accretion 34 — — 34
−Removed: General liability 81 — — 81
−Removed: Marine (1) — — (1)
−Removed: Package business (6) — — (6)
−Removed: Commercial property (7) — — (7)
−Removed: Professional liability (7) — — (7)
−Removed: Bond (22) — — (22)
−Removed: Assumed reinsurance 24 — — 24
−Removed: Automobile liability 26 (13) — 13
−Removed: Homeowners — (15) — (15)
−Removed: Net A&E reserves — — — —
−Removed: Catastrophes (33) (5) — (38)
−Removed: Uncollectible reinsurance (7) — 7 —
−Removed: Other reserve re-estimates, net [1] 20 (22) — (2)
−Removed: Prior accident year development before change in deferred gain (86) (55) 7 (134)
−Removed: Change in deferred gain on retroactive reinsurance included in other liabilities [2] (87) — — (87)
−Removed: Total prior accident year development $ (173) $ (55) $ 7 $ (221)
−Removed: [1] Other reserve re-estimates, net for the nine months ended September 30, 2024 includes a $24 decrease in personal lines automobile physical damage reserves.
−Removed: [2] 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 under retroactive reinsurance accounting.
−Removed: For additional information regarding the Navigators ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
+Added: [1] Other reserve re-estimates, net for the three months ended March 31, 2025 includes a favorable change of $(12) in personal automobile physical damage reserves.
+Added: [2] The $32 change in deferred gain on retroactive reinsurance for the three months ended March 31, 2025 is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
+Added: For discussion of the factors contributing to unfavorable (favorable) prior accident year reserve development for 2025, please refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Nine Months Ended September 30, 2023
−Removed: Lines Personal
−Removed: Property & Casualty Other Operations Total Property & Casualty Insurance
+Added: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Three Months Ended March 31, 2024
+Added: Business Insurance Personal
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty Insurance
Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 29,181 $ 2,068 $ 2,795 $ 34,044
6 unchanged sentences
Total provision for unpaid losses and loss adjustment expenses 1,778 620 7 2,405
+Added: Change in deferred gain on retroactive reinsurance included in other liabilities 24 — — 24
Payments (1,312) (584) (44) (1,940)
4 unchanged sentences
Earned premiums and fee income $ 3,059 $ 821
−Removed: Loss and loss expense paid ratio [1] 55.4 76.4
−Removed: Loss and loss expense incurred ratio 59.7 84.2
+Added: Loss and loss adjustment expense paid ratio [1] 42.9 71.1
+Added: Loss and loss adjustment expense ratio 58.3 76.3
Prior accident year development (pts) [2] (1.8) (0.9)
−Removed: [1] The “loss and loss expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums and fee income.
+Added: [1] The “loss and loss adjustment expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums and fee income.
[2] “Prior accident year development (pts)” represents the ratio of prior accident year development to earned premiums.
Current Accident Year Catastrophe Losses, Net of Reinsurance
−Removed: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
−Removed: Lines Total Commercial
+Added: Three Months Ended March 31, 2024
+Added: Business Insurance Personal
+Added: Insurance Total
Wind and hail $ 42 $ 38 $ 80
Winter storms 52 14 66
−Removed: Hurricanes and tropical storms 13 7 20 13 7 20
−Removed: Wildfires 4 8 12 4 8 12
−Removed: Other international 2 — 2 2 — 2
Catastrophes before assumed reinsurance 94 52 146
7 unchanged sentences
Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Three Months Ended September 30, 2023
−Removed: Commercial Lines Personal
−Removed: Property & Casualty Other Operations Total Property & Casualty Insurance
−Removed: Workers’ compensation $ (61) $ — $ — $ (61)
−Removed: Workers’ compensation discount accretion 10 — — 10
−Removed: General liability 11 — — 11
−Removed: Marine — — — —
−Removed: Package business (10) — — (10)
−Removed: Commercial property 2 — — 2
−Removed: Professional liability — — — —
−Removed: Assumed reinsurance 2 — — 2
−Removed: Automobile liability — — — —
−Removed: Homeowners — — — —
−Removed: Net A&E reserves — — — —
−Removed: Catastrophes — — — —
−Removed: Uncollectible reinsurance (2) 1 2 1
−Removed: Other reserve re-estimates, net 2 — — 2
−Removed: Total prior accident year development
−Removed: $ (46) $ 1 $ 2 $ (43)
−Removed: Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Nine Months Ended September 30, 2023
−Removed: Commercial Lines Personal
−Removed: Property & Casualty Other Operations Total Property & Casualty Insurance
+Added: Three Months Ended March 31, 2024
+Added: Business Insurance Personal
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty Insurance
Workers’ compensation $ (67) $ — $ — $ (67)
5 unchanged sentences
Professional liability (5) — — (5)
−Removed: Bond 12 — — 12
Assumed reinsurance 9 — — 9
5 unchanged sentences
Other reserve re-estimates, net 5 (7) — (2)
+Added: Prior accident year development before change in deferred gain $ (32) $ (7) $ 7 $ (32)
+Added: Change in deferred gain on retroactive reinsurance included in other liabilities [1] (24) — — (24)
Total prior accident year development $ (56) $ (7) $ 7 $ (56)
−Removed: [1] Other reserve re-estimates, net for the nine months ended September 30, 2023 includes a $22 increase in personal automobile physical damage reserves.
−Removed: For discussion of the factors contributing to unfavorable (favorable) prior accident year reserve development for both the 2024 and 2023 periods, please refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
+Added: [1] The $24 change in deferred gain on retroactive reinsurance for the three months ended March 31, 2024, related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
+Added: For discussion of the factors contributing to unfavorable (favorable) prior accident year reserve development for 2024, please refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
Index to MD&A
2 unchanged sentences
Reportable Segment And Corporate Operating Summaries
−Removed: | COMMERCIAL LINES - RESULTS OF OPERATIONS
+Added: Business Insurance - Results of Operations
Underwriting Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Written premiums $ 3,686 $ 3,362 10 %
7 unchanged sentences
Total losses and loss adjustment expenses 2,088 1,778 17 %
−Removed: Amortization of deferred policy acquisition costs 512 451 14 % 1,477 1,311 13 %
−Removed: Underwriting expenses 497 460 8 % 1,468 1,385 6 %
+Added: Amortization of DAC 531 476 12 %
+Added: Insurance operating costs 512 487 5 %
Amortization of other intangible assets 7 7 — %
2 unchanged sentences
Net investment income [2] 437 391 12 %
−Removed: Net realized losses [2] (32) (38) 16 % (70) (108) 35 %
−Removed: Other income (expense) [3] (1) 2 (150 %) (4) 2 NM
+Added: Net realized gains (losses) [2] (24) 12 NM
+Added: Other expense [3] (1) (2) 50 %
Income before income taxes 599 702 (15) %
9 unchanged sentences
Premium Measures
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: Small Commercial:
+Added: Three Months Ended March 31,
+Added: Small Business:
Net new business premium $ 298 $ 268
3 unchanged sentences
Policies in-force as of end of period (in thousands) 1,591 1,512
−Removed: Middle Market [1]:
+Added: Middle and Large Business [1]:
Net new business premium $ 188 $ 174
10 unchanged sentences
Underwriting Ratios
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Loss and loss adjustment expense ratio 62.8 58.3 4.5
−Removed: Current accident year before catastrophes 57.3 56.6 0.7 56.7 56.6 0.1
−Removed: Current accident year catastrophes 4.8 3.9 0.9 4.4 4.4 —
−Removed: Prior accident year development (1.1) (1.6) 0.5 (1.8) (1.2) (0.6)
−Removed: Total loss and loss adjustment expense ratio 61.0 58.9 2.1 59.3 59.7 (0.4)
Expense ratio 31.3 31.5 (0.2)
1 unchanged sentence
Combined ratio 94.4 90.1 4.3
−Removed: Impact of current accident year catastrophes and prior year development (3.7) (2.3) (1.4) (2.6) (3.2) 0.6
+Added: Adjustments to reconcile combined ratio to underlying combined ratio:
+Added: Current accident year catastrophes and prior accident year development (5.9) (1.8) (4.1)
Underlying combined ratio 88.4 88.4 —
+Added: Underlying loss and loss adjustment expense ratio 56.9 56.6 0.3
+Added: Current accident year catastrophes 8.4 3.6 4.8
+Added: Prior accident year development (2.5) (1.8) (0.7)
+Added: Total loss and loss adjustment expense ratio 62.8 58.3 4.5
+Added: Loss and loss adjustment expense ratio 62.8 58.3 4.5
+Added: Adjustments to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:
+Added: Current accident year catastrophes and prior accident year development (5.9) (1.8) (4.1)
+Added: Underlying loss and loss adjustment expense ratio 56.9 56.6 0.3
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net income for the three months ended September 30, 2024 increased primarily due to higher net investment income and lower net realized losses, partially offset by a lower underwriting gain.
−Removed: Net income for the nine month period increased primarily due to a higher underwriting gain, higher net investment income and lower net realized losses.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net income decreased primarily due to a lower underwriting gain and a change to net realized losses in the 2025 period from net realized gains in the 2024 period, partially offset by higher net investment income.
For further discussion of investment results, see MD&A - Investment Results.
Underwriting Gain
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Underwriting gain for the three months ended September 30, 2024 decreased due to higher CAY catastrophe losses, a higher CAY loss and LAE ratio before catastrophes and less favorable prior accident year development, including $26 of a benefit for amortization of a deferred gain on the Navigators ADC in the current year period, partially offset by the effect of earned premium growth.
−Removed: Underwriting gain for the nine month period increased due to the effect of earned premium growth and higher favorable prior accident year development, including $87 of a benefit for amortization of a deferred gain on the Navigators ADC in the current year period, partially offset by higher CAY catastrophe losses.
−Removed: Expense ratio for the three months ended September 30, 2024 increased driven by higher staffing costs, including higher incentive compensation and benefits costs, partially offset by the impact of higher earned premium.
−Removed: Expense ratio for the nine month period was flat as the impact of higher earned premium was offset by higher staffing costs, including higher incentive compensation and benefits costs.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Underwriting gain declined due to higher CAY catastrophe losses, partially offset by the effect of earned premium growth and slightly higher favorable prior accident year development, including $8 of a greater benefit for amortization of the deferred gain on the Navigators ADC.
+Added: Expense ratio improved modestly as the impact of higher earned premium was partially offset by a slightly higher commission ratio due to business mix.
Index to MD&A
2 unchanged sentences
Earned Premiums
−Removed: [1] Other earned premiums of $14 and $14, for the three months ended September 30, 2023, and 2024, respectively and $40 and $43 , for the nine months ended September 30, 2023, and 2024, respectively.
+Added: [1] Other earned premiums of $15 and $16 for the three months ended March 31, 2024, and 2025, respectively.
Written Premiums
−Removed: [1] Other written premiums of $14 and $14 for the three months ended September 30, 2023, and 2024, respectively and $40 and $42 for the nine months ended September 30, 2023 and 2024, respectively.
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Earned premiums for the three and nine months ended September 30, 2024 increased due to written premium increases over the prior twelve months, including the effect of higher insured exposures, principally in workers’ compensation and property lines.
−Removed: Written premiums for the three and nine months ended September 30, 2024 increased driven by growth across small commercial, middle & large commercial and global specialty.
−Removed: • Small commercial written premium increased driven by double-digit new business growth, renewal written price increases in all lines and higher insured exposures.
+Added: [1] Other written premiums of $14 and $16 for the three months ended March 31, 2024, and 2025, respectively.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Earned premiums increased due to written premium increases over the prior twelve months.
+Added: Written premiums increased driven by growth across small business, middle & large business and global specialty.
+Added: • Small business written premium increased driven by double-digit new business growth and renewal written price increases in almost all lines.
Written premium grew in nearly all lines of business, including package business, excess and surplus and automobile.
−Removed: • Middle & large commercial written premium increased driven by double-digit new business growth, renewal written price increases in all lines and higher insured exposures.
−Removed: Written premium grew in nearly all lines across industry verticals, specialty markets, general industries and large property.
−Removed: • Global specialty written premium increased driven by written price increases across almost all lines as well as an increase in gross new business, primarily in casualty lines.
−Removed: Written premiums grew across most U.S.
−Removed: lines, global reinsurance and international lines.
−Removed: Renewal written price increases were recognized in nearly all lines in both the three and nine month periods, with price increases across most lines other than directors and officers ("D&O").
−Removed: • In small commercial, renewal written price increases were higher in 2024, with accelerating year to date double-digit price increases in package business and automobile and moderating double-digit price increases in excess and surplus lines.
−Removed: Workers' compensation pricing year to date was slightly positive and consistent with 2023.
−Removed: • In middle market, renewal written price increases were generally flat to 2023, with year to date high single-digit to low double-digit price increases in most lines other than workers’ compensation, which was slightly positive.
−Removed: Property pricing has moderated from elevated levels in 2023 while automobile pricing has accelerated.
−Removed: • In global specialty, U.S.
−Removed: price increases were higher than prior year levels and we achieved mid single-digit renewal written price increases overall, with high single to low double-digit increases in marine, casualty and auto lines.
−Removed: D&O pricing continues to be negative, but to a lesser extent than the prior year.
+Added: • Middle & large business written premium increased driven by high single-digit new business growth and renewal written price increases in all lines.
+Added: Written premium grew in nearly all lines across industry verticals, specialty markets, and large property.
+Added: • Global specialty written premium increased driven by written price increases across almost all lines as well as an increase in gross new business, primarily in U.S.
+Added: excess casualty insurance lines.
+Added: Written premiums also grew in global reinsurance, primarily in property, credit risk and casualty.
+Added: Renewal written price increases were recognized in most lines.
+Added: • In small business, renewal written price increases were higher than the prior year, with low double-digit price increases in package business and automobile and moderating high single-digit price increases in excess and surplus lines.
+Added: Workers' compensation pricing was slightly negative.
+Added: • In middle market, renewal written price increases were consistent with prior year levels overall, with mid single-digit to low double-digit price increases in most lines.
+Added: Liability pricing has accelerated and property pricing has moderated from 2024 levels.
+Added: Workers’ compensation continued to be modestly positive.
+Added: • In global specialty, price increases were slightly higher than prior year levels with mid single-digit renewal written price increases overall, including high single to mid-teen increases in casualty and auto lines.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Current Accident Year Loss and LAE Ratio before Catastrophes
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Current accident year loss and LAE ratio before catastrophes for the three and nine months ended September 30, 2024 deteriorated primarily due to a higher general liability loss ratio, partially offset by lower net non-catastrophe property losses.
+Added: Underlying Loss and Loss Adjustment Expense Ratio
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Underlying Loss and Loss Adjustment Expense Ratio increased slightly due to a higher general liability loss ratio, reflecting the increased severity trends observed primarily during the second half of 2024, partially offset by lower net non-catastrophe property losses.
Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Current accident year catastrophe losses for the three months ended September 30, 2024 included losses from hurricanes, including a loss of $55 from Hurricane Helene, and tropical storms primarily in the Southeast and South regions and, to a lesser extent, tornado, wind and hail events primarily in the Midwest and Northeast regions.
−Removed: Current accident year catastrophe losses for the nine month period included losses from tornado, wind and hail events across several regions of the United States, hurricanes and tropical storms primarily in the Southeast and South regions and, to a lesser extent, winter storms mainly in the Pacific, Northeast and South regions.
−Removed: Current accident year catastrophe losses for the three months ended September 30, 2023 included losses from tornado, wind and hail events across several regions of the United States, and to a lesser extent, losses from hurricanes and tropical storms.
−Removed: Current accident year catastrophe losses for the nine months ended September 30, 2023 included losses from tornado, wind and hail events across several regions of the United States, and losses from winter storms along the East and West coasts.
−Removed: Prior accident year development was net favorable for the three and nine months ended September 30, 2024 and included reserve decreases for workers' compensation and, for the nine month period, catastrophes and bond, partially offset by reserve increases for general liability, automobile liability and, for the nine month period, assumed reinsurance.
−Removed: Also included are benefits of $26 and $87 related to amortization of the Navigators ADC deferred gain for the three and nine month periods, respectively.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Current accident year catastrophe losses for the three months ended March 31, 2025 included a loss of $207 from the January 2025 California Wildfire Event, as well as tornado, wind and hail events primarily in the South and Midwest regions.
+Added: Current accident year catastrophe losses for the three months ended March 31, 2024 included losses from winter storms, mainly in the Northeast, Pacific and South regions, as well as tornado, wind and hail events in the Midwest, South and mid-Atlantic regions.
+Added: Prior accident year development was net favorable for the three months ended March 31, 2025 and primarily included reserve decreases for workers' compensation.
+Added: Also included is a benefit of $32 related to amortization of the Navigators ADC deferred gain.
For additional information regarding the ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
−Removed: Prior accident year development was net favorable for the three and nine months ended September 30, 2023 and included reserve decreases for workers' compensation and package business, partially offset by reserve increases for general liability and assumed reinsurance.
−Removed: In addition, the nine month period included a reserve decrease for catastrophes.
+Added: Prior accident year development was net favorable for the three months ended March 31, 2024 and included reserve decreases for workers' compensation and uncollectible reinsurance, partially offset by reserve increases for general liability, assumed reinsurance and marine.
+Added: Also included is a benefit of $24 related to amortization of the Navigators ADC deferred gain.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: | PERSONAL LINES - RESULTS OF OPERATIONS
+Added: Personal Insurance - Results of Operations
Underwriting Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Written premiums $ 913 $ 844 8 %
4 unchanged sentences
Current accident year before catastrophes 563 575 (2) %
−Removed: Current accident year catastrophes [1] 92 69 33 % 269 219 23 %
−Removed: Prior accident year development [1] (14) 1 NM (55) 18 NM
+Added: Current accident year catastrophes [1] 187 52 NM
+Added: Prior accident year development [1] (39) (7) NM
Total losses and loss adjustment expenses 711 620 15 %
Amortization of DAC 68 60 13 %
−Removed: Underwriting expenses 169 138 22 % 491 428 15 %
+Added: Insurance operating costs 182 153 19 %
Amortization of other intangible assets 1 1 — %
−Removed: Underwriting loss (22) (62) 65 % (98) (220) 55 %
+Added: Underwriting loss (55) (13) NM
Net investment income [2] 57 50 14 %
−Removed: Net realized losses [2] (2) (5) 60 % (9) (11) 18 %
+Added: Net realized gains (losses) [2] (2) 1 NM
Net servicing and other income (expense) [3] 5 4 25 %
−Removed: Income (loss) before income taxes 39 (17) NM 66 (96) NM
−Removed: Income tax expense (benefit) [4] 8 (5) NM 12 (23) NM
−Removed: Net income (loss) $ 31 $ (12) NM $ 54 $ (73) NM
+Added: Income before income taxes 5 42 (88) %
+Added: Income tax expense [4] — 8 (100) %
+Added: Net income $ 5 $ 34 (85) %
[1] For additional information on current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance and Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
[2] For discussion of consolidated investment results, see MD&A - Investment Results.
−Removed: [3] Includes servicing revenues of $22 and $21 for the three months ended September 30, 2024 and 2023, respectively, and $66 and $64 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: Includes servicing expenses of $18 and $17 for the three months ended September 30, 2024 and 2023, respectively, and $51 and $47 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: [3] Includes servicing revenues of $20 and $19 for the three months ended March 31, 2025 and 2024, respectively.
+Added: Includes servicing expenses of $16 and $15 for the three months ended March 31, 2025 and 2024, respectively.
[4]For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
Written and Earned Premiums
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: Written Premiums 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: Written Premiums 2025 2024 Change
Automobile $ 627 $ 600 5 %
9 unchanged sentences
Premium Measures
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Premium Measures 2025 2024
5 unchanged sentences
Homeowners 62 34
−Removed: Policy count retention
−Removed: Automobile 81 % 85 % 83 % 85 %
−Removed: Homeowners 83 % 84 % 84 % 84 %
Effective Policy Count Retention
8 unchanged sentences
Underwriting Ratios
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: Underwriting Ratios 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: Underwriting Ratios 2025 2024 Change
Loss and loss adjustment expense ratio 79.1 76.3 2.8
−Removed: Current accident year before catastrophes 68.0 74.7 (6.7) 69.7 73.8 (4.1)
−Removed: Current accident year catastrophes 10.4 8.8 1.6 10.6 9.6 1.0
−Removed: Prior year development (1.6) 0.1 (1.7) (2.2) 0.8 (3.0)
−Removed: Total loss and loss adjustment expense ratio 76.8 83.7 (6.9) 78.1 84.2 (6.1)
Expense Ratio 27.0 25.3 1.7
Combined Ratio 106.1 101.6 4.5
−Removed: Impact of current accident year catastrophes and prior year development (8.8) (8.9) 0.1 (8.4) (10.4) 2.0
+Added: Adjustment to reconcile combined ratio to underlying combined ratio:
+Added: Current accident year catastrophes and prior year development (16.5) (5.5) (11.0)
Underlying combined ratio 89.7 96.1 (6.4)
+Added: Underlying loss and loss adjustment expense ratio 62.6 70.7 (8.1)
+Added: Current accident year catastrophes 20.8 6.4 14.4
+Added: Prior accident year development (4.3) (0.9) (3.4)
+Added: Total loss and loss adjustment expense ratio 79.1 76.3 2.8
+Added: Loss and loss adjustment expense ratio 79.1 76.3 2.8
+Added: Adjustment to reconcile loss and loss adjustment expense ratio to underlying loss and loss adjustment expense ratio:
+Added: Current accident year catastrophes and prior year development (16.5) (5.5) (11.0)
+Added: Underlying loss and loss adjustment expense ratio 62.6 70.7 (8.1)
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Product Combined Ratios
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Combined ratio 93.5 103.9 (10.4)
+Added: Adjustment to reconcile combined ratio to underlying combined ratio:
+Added: Current accident year catastrophes (1.2) (1.0) (0.2)
+Added: Prior accident year development 3.8 1.6 2.2
Underlying combined ratio 96.1 104.4 (8.3)
Combined ratio 133.2 96.2 37.0
+Added: Adjustment to reconcile combined ratio to underlying combined ratio:
+Added: Current accident year catastrophes (63.7) (18.7) (45.0)
+Added: Prior accident year development 5.6 (0.5) 6.1
Underlying combined ratio 75.1 77.0 (1.9)
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Net Income (Loss)
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net Income changed to a net gain for both the three and nine months ended September 30, 2024 compared to a net loss for the prior year periods, largely driven by improved underwriting results and an increase in net investment income.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net Income decreased, largely driven by lower underwriting results.
Underwriting loss
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Underwriting loss decreased for the three and nine months ended September 30, 2024 driven by a decrease in the CAY loss and LAE ratio before catastrophes, the effect of an increase in earned premium due to renewal written price increases, and a change from unfavorable to favorable prior accident year development, partially offset by an increase in current accident year catastrophe losses, and an increase in underwriting expenses.
−Removed: Expense ratio increased in the three month period primarily due to an increase in direct marketing costs, higher commissions, and higher incentive compensation and benefits costs, partially offset by the impact of higher earned premium driven by earned pricing increases.
−Removed: For the nine month period, the increase was primarily due to higher commissions, higher direct marketing costs, and higher incentive compensation and benefits costs, partially offset by the impact of higher earned premium.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Underwriting loss increased primarily due to an increase in current accident year catastrophe losses and an increase in insurance operating costs, partially offset by an improved underlying loss and LAE ratio, the effect of an increase in earned premium due to renewal written price increases, and greater favorable prior accident year development.
+Added: Expense ratio increased primarily due to higher direct marketing costs and, to a lesser extent, a higher commission ratio due to business mix .
Index to MD&A
3 unchanged sentences
Written Premiums
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Earned premiums increased in both the three and nine month periods due to higher written premium over the prior twelve months in both automobile and homeowners.
−Removed: Written premiums increased in both the three and nine month periods driven by the effect of written pricing increases and by an increase in new premium in both automobile and homeowners.
−Removed: Renewal written pricing increases were higher for both automobile and homeowners in the three and nine month periods, primarily in response to recent elevated loss cost trends as well as higher insured values in homeowners.
−Removed: Policy count retention decreased both for automobile and for homeowners in the three month period, and decreased for automobile and was stable for homeowners in the nine month period, in response to renewal written pricing increases.
−Removed: Effective Policy count retention decreased for automobile and was stable for homeowners in the three month period, and decreased both for automobile and homeowners in the nine month period, in response to renewal written pricing increases.
−Removed: Policies in-force as of September 30, 2024 declined since September 30, 2023 for both automobile and homeowners, reflecting the level of new business in relation to non-renewed policies.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Current Accident Year Loss and LAE Ratio before Catastrophes
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Current accident year Loss and LAE ratio before catastrophes decreased in automobile and homeowners for both the three and nine month periods.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Earned premiums increased in 2025 due to higher written premium over the prior twelve months in both automobile and homeowners.
+Added: Written premiums increased in 2025 driven by the effect of written pricing increases and by an increase in new business premium in both automobile and homeowners.
+Added: Renewal written pricing increases moderated for both automobile and homeowners in 2025, primarily in response to moderating loss cost trends.
+Added: Effective Policy count retention was stable both for automobile and homeowners in 2025, in response to moderating renewal written pricing increases.
+Added: Policies in-force as of March 31, 2025 compared to March 31, 2024 declined for automobile and increased for homeowners, reflecting the level of new business in relation to non-renewed policies.
+Added: Underlying Loss and Loss Adjustment Expense Ratio
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Underlying loss and LAE ratio decreased in both automobile and homeowners in 2025.
The decrease in automobile was primarily due to the impact of earned pricing increases as well as lower physical damage claim frequency, partially offset by higher automobile claim severities.
−Removed: The automobile physical damage claim severity trend has moderated from the prior year.
The automobile liability severity increases continue to recognize the inflationary effects and higher attorney representation rates on bodily injury claims.
−Removed: For homeowners, the decrease in the CAY loss and LAE ratio before catastrophes was primarily due to the impact of earned pricing increases and lower claim frequency, partially offset by higher claim severities.
+Added: For homeowners, the decrease in the underlying loss and LAE ratio was primarily due to the impact of earned pricing increases, partially offset by higher claim severities.
Contributing to the higher homeowners severity was the effect of higher rebuilding costs.
−Removed: Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Current accident year catastrophe losses increased for both the three and nine months ended September 30, 2024, compared to the prior year.
−Removed: CAY catastrophe losses for the three months ended September 30, 2024 included losses from hurricanes and tropical storms, primarily in the Southeast region, including a loss of $49 for Hurricane Helene, and to a lesser extent, tornado, wind and hail events, mainly in the Midwest, Mountain West and Northeast regions.
−Removed: CAY catastrophe losses for the nine months ended September 30, 2024 included losses from tornado, wind and hail events in several regions of the United States, and to a lesser extent, from hurricanes and tropical storms primarily in the Southeast region.
−Removed: CAY catastrophe losses for the three months ended September 30, 2023 included tornado, wind and hail events across several regions of the United States, and to a lesser extent, wildfire events and hurricanes and tropical storms.
−Removed: The nine month period also included losses from winter storms primarily on the East and West coasts.
−Removed: Prior accident year development was favorable for the three and nine months ended September 30, 2024, primarily driven by lower estimated severity on automobile physical damage and homeowners, and for the nine month period, automobile liability.
−Removed: Prior accident year development was an unfavorable $1 in the three months ended September 30, 2023.
−Removed: Net unfavorable prior accident year development in the nine months ended September 30, 2023 was primarily driven by automobile physical damage.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: | PROPERTY & CASUALTY OTHER OPERATIONS -
−Removed: RESULTS OF OPERATIONS
+Added: Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Current accident year catastrophe losses increased for the three months ended March 31, 2025, compared to the prior year.
+Added: CAY catastrophe losses for the three months ended March 31, 2025 included a loss of $118 from the January 2025 California Wildfire Event, as well as tornado, wind and hail events primarily in the Midwest and South regions.
+Added: CAY catastrophe losses for the three months ended March 31, 2024 included from tornado, wind and hail events mainly in the Midwest and South regions, as well as winter storms in the Pacific and South Regions.
+Added: Prior accident year development was favorable for the three months ended March 31, 2025, primarily driven by lower estimated severity on homeowners, automobile physical damage, and automobile liability.
+Added: Prior accident year development was favorable for the three months ended March 31, 2024, primarily driven by improved severity on automobile physical damage.
+Added: Property & Casualty Other Operations - Results of Operations
Underwriting Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Losses and loss adjustment expenses
1 unchanged sentence
Total losses and loss adjustment expenses — 7 (100) %
−Removed: Underwriting expenses 3 3 — % 7 8 (13) %
+Added: Insurance operating costs 2 2 — %
Underwriting loss (2) (9) 78 %
Net investment income [2] 18 18 — %
−Removed: Net realized gains (losses) [2] — (2) 100 % (3) (6) 50 %
−Removed: Other expenses (4) — NM (4) — NM
Income before income taxes 16 9 78 %
−Removed: Income tax expense [3] 1 2 (50 %) 5 6 (17) %
+Added: Income tax expense [3] 3 1 NM
Net income $ 13 $ 8 63 %
2 unchanged sentences
[3] For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net income increased in the three months ended September 30, 2024 , primarily due to a lower underwriting loss and no net realized gains or losses in the 2024 period compared to net realized losses in the 2023 period.
−Removed: Net income increased in the nine months ended September 30, 2024 , primarily due to higher net investment income and lower net realized losses.
−Removed: The increases to net income in both periods were partially offset by an increase in other expense relating to a one-time contract settlement charge on a claims servicing arrangement.
−Removed: Underwriting loss decreased in the three months ended September 30, 2024 , primarily due to unfavorable prior accident year reserve development in the 2023 period.
−Removed: Underwriting loss decreased slightly in the nine months ended September 30, 2024 due to a decrease in underwriting expenses.
−Removed: Asbestos and environmental reserve comprehensive annual reviews will occur in the fourth quarter of 2024.
−Removed: For information on A&E reserves, see MD&A - Critical Accounting Estimates, Asbestos and Environmental Reserves included in the Company's 2023 Form 10-K Annual Report.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net income increased due to a lower underwriting loss.
+Added: Underwriting loss decreased due to unfavorable prior accident year reserve development in the 2024 period.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: | GROUP BENEFITS - RESULTS OF OPERATIONS
+Added: Employee Benefits - Results of Operations
Operating Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Premiums and other considerations $ 1,668 $ 1,639 2 %
Net investment income [1] 126 114 11 %
−Removed: Net realized gains (losses) [1] — (31) 100 % (8) (45) 82 %
+Added: Net realized gains (losses) [1] (4) 1 NM
Total revenues 1,790 1,754 2 %
10 unchanged sentences
Premiums and Other Considerations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Fully insured – ongoing premiums $ 1,612 $ 1,585 2 %
4 unchanged sentences
Ratios, Excluding Buyouts
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Group disability loss ratio 69.0 % 70.1 % (1.1)
1 unchanged sentence
Total loss ratio 71.9 % 73.5 % (1.6)
−Removed: 70.2 % 70.2 % — 70.8 % 72.5 % (1.7)
Expense ratio 25.4 % 25.4 % —
−Removed: [1] Integration and transaction costs related to the acquisition of Aetna's U.S.
−Removed: group life and disability business are not included in the expense ratio.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Net income margin 7.4 % 6.2 % 1.2
1 unchanged sentence
Net realized gains (losses), before tax 0.3 % (0.1 %) 0.4
−Removed: Integration and other non-recurring M&A costs, before tax — % 0.1 % (0.1) — % 0.1 % (0.1)
Income tax benefit (0.1 %) — % (0.1)
3 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net income increased in the three and nine months ended September 30, 2024 , primarily due to a lower group life loss ratio and higher fully insured ongoing premiums, partially offset by a higher expense ratio , a higher loss ratio on supplemental health products, and a higher group disability loss ratio.
−Removed: In addition, the three months ended September 30, 2024, benefitted from no net realized gain or loss in the 2024 period compared to net realized losses in the 2023 period, while the nine month period benefitted from lower net realized losses in the 2024 period compared to the 2023 period.
−Removed: Insurance operating costs and other expenses were higher for both the three and nine month periods, prim arily due to the effect of higher fully insured ongoing premium, including higher staffing costs and commissions, as well as higher incentive compensation and benefits costs.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net income increased in the three months ended March 31, 2025 primarily due to a lower group life and group disability loss ratio, higher fully insured ongoing premiums and higher net investment income, partially offset by a higher loss ratio on supplemental health products.
+Added: Insurance operating costs and other expenses were higher prim arily due to the effect of an increase in fully insured ongoing premium.
Fully Insured Ongoing Premiums
−Removed: [1] Other of $102 and $107 for the three months ended September 30, 2023 and 2024 respectively, and $304 and $318 for the nine months ended September 30, 2023 and 2024, respectively which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Fully insured ongoing premiums increased in both the three and nine month periods over prior year and included an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year periods.
−Removed: Fully insured ongoing sales decreased in both the three and nine months periods compared to prior year driven by lower group life and group disability sales.
+Added: [1] Other of $104 and $118 for the three months ended March 31, 2024 and 2025 respectively, which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Fully insured ongoing premiums increased over prior year and included an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year.
+Added: Fully insured ongoing sales decreased compared to prior year driven by lower sales for the paid family and medical leave product and fewer large case sales.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Loss ratio was flat in the three months ended September 30, 2024 compa red to the prior year period driven by a lower group life loss ratio offset by a higher disability loss ratio, as well as a higher loss ratio on supplemental health products.
−Removed: The group life loss ratio decreased 2.7 points driven by lower mortality.
−Removed: The group disability loss ratio increased 0.6 points driven by a higher loss ratio on paid family and medical leave products, partially offset by a favorable change in the long-term disability recovery rate assumption of 2.2 points.
−Removed: Total loss ratio improved 1.7 points in the nine months ended September 30, 2024 compared to the prior year period, primarily reflecting a lower group life loss ratio.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Loss ratio improved 1.6 points in the three months ended March 31, 2025 compa red to the prior year period driven by a lower group life and group disability loss ratio, partially offset by a higher loss ratio on supplemental health products.
The group life loss ratio decreased 2.7 points driven by a lower level of mortality.
−Removed: The group disability loss ratio was essentially flat driven by favorable long-term disability claim recoveries, incidence, and changes in the long-term disability recovery rate assumption of 0.7 points, offset by higher loss ratio on paid family and medical leave products.
−Removed: Expense ratio increased for the three and nine month periods primarily due to the impact of higher staffing costs, including higher incentive compensation and benefits costs, and increased investments in technology.
+Added: The group disability loss ratio decreased 1.1 points driven by a lower loss ratio on paid family and medical leave products, partially offset by a higher long-term disability loss ratio driven by higher incidence, although favorable to long-term historical averages.
+Added: Improvement in the paid family and medical leave loss ratio in 2025 reflects pricing actions to address benefit utilization trends as well as a decrease in recent claim emergence.
+Added: Expense ratio is flat compared to prior year with expenses increasing due to the effect of an increase in fully insured premium.
Hartford Funds - Results of Operations
Operating Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Fee income and other revenue $ 260 $ 250 4 %
Net investment income 4 4 — %
−Removed: Net realized gains (losses) 7 (4) NM 15 2 NM
+Added: Net realized gains — 5 (100) %
Total revenues 264 259 2 %
6 unchanged sentences
Adjustment to reconcile ROA to ROA, core earnings:
−Removed: Effect of net realized gains (losses) excluded from core earnings, before tax (2.1) 1.3 NM (1.5) (0.2) NM
−Removed: Effect of income tax expense — — — % 0.3 0.1 NM
+Added: Effect of net realized gains excluded from core earnings, before tax — (1.5) 100 %
+Added: Effect of income tax expense 0.3 0.3 — %
ROA, core earnings [2] 12.4 12.5 (1) %
5 unchanged sentences
Hartford Funds Segment AUM
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Mutual Fund and ETF AUM - beginning of period $ 128,054 $ 119,316 7 %
1 unchanged sentence
Redemptions - Mutual Fund (9,309) (7,939) (17) %
−Removed: Net flows - ETF 256 222 15 % 150 499 (70) %
+Added: Net flows - ETF 146 (209) NM
Net flows - Mutual Fund and ETF (1,432) (2,511) 43 %
−Removed: Change in market value and other 7,105 (4,296) NM 15,071 3,774 NM
+Added: Change in market value and other 597 6,754 (91) %
Mutual Fund and ETF AUM - end of period 127,219 123,559 3 %
1 unchanged sentence
Hartford Funds AUM - end of period $ 138,098 $ 135,642 2 %
−Removed: $ 142,439 $ 123,193 16 % $ 142,439 $ 123,193 16 %
Mutual Fund and ETF AUM by Asset Class
−Removed: As of September 30,
+Added: As of March 31,
2025 2024 Change
6 unchanged sentences
[1]Includes balanced, allocation and alternative investment products.
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net income increased for the three months ended September 30, 2024, primarily due to a change from net realized losses to net realized gains and an increase in fee income net of operating costs and other expenses driven by higher daily average AUM.
−Removed: Net income increased for the nine months ended September 30, 2024, primarily due to an increase in net realized gains, an increase in fee income net of operating costs and other expenses driven by higher daily average AUM, and higher net investment income.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net income decreased for the three months ended March 31, 2025, primarily due to net realized gains in the 2024 period partially offset by an increase in fee income net of operating costs and other expenses driven by higher daily average AUM.
Hartford Funds AUM
−Removed: September 30, 2024 compared to September 30, 2023
−Removed: Hartford Funds AUM increased primarily due to an increase in market values, partly offset by net outflows over the previous twelve months.
−Removed: Net outflows were $0.4 billion and $4.0 billion, respectively, for the three and nine months ended September 30, 2024 compared to net outflows of $1.6 billion and $4.1 billion, respectively, for the three and nine months ended September 30, 2023.
+Added: March 31, 2025 compared to March 31, 2024
+Added: Hartford Funds AUM increased primarily due to an increase in equity market values, partially offset by net outflows over the preceding twelve month periods.
+Added: Net outflows were $1.4 billion for the three months ended March 31, 2025 compared to net outflows of $2.5 billion, for the three months ended March 31, 2024.
Index to MD&A
3 unchanged sentences
Operating Summary
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 Change
Fee income [1] $ 11 $ 10 10 %
−Removed: Other revenue 1 1 — % 2 2 — %
+Added: Other revenue 1 — NM
Net investment income [2] 14 16 (13) %
−Removed: Net realized gains (losses) [2] 14 (10) NM 31 7 NM
−Removed: Total revenues (losses) 42 13 NM 110 69 59 %
+Added: Net realized gains (losses) [2] (19) 9 NM
+Added: Total revenues (losses) 7 35 (80) %
Benefits, losses and loss adjustment expenses [3] 2 2 — %
14 unchanged sentences
Net loss available to common stockholders
−Removed: Three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023
−Removed: Net loss available to common stockholders for the three and nine months ended September 30, 2024, decreased primarily due to a change from net realized losses to net realized gains in the three month period and an increase in net realized gains in the nine month period, a $14, before tax, capital-based state tax expense covering several years in the 2023 periods, and higher net investment income.
+Added: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
+Added: Net loss available to common stockholders for the three months ended March 31, 2025, decreased primarily due to a change from net realized gains to net realized losses as well as a lower tax benefit related to the vesting of stock-based compensation awards during the quarter.
Index to MD&A
14 unchanged sentences
Insurance Risk
−Removed: Insurance risk is the risk of losses of both a catastrophic and non-catastrophic nature on the P&C and Group Benefits products the Company has sold.
+Added: Insurance risk is the risk of losses of both a catastrophic and non-catastrophic nature on the P&C and Employee Benefits products the Company has sold.
Catastrophe insurance risk is the exposure arising from both natural catastrophes (e.g., weather, earthquakes, wildfires, pandemics) and man-made catastrophes (e.g., terrorism, cyber-attacks) that create a concentration or aggregation of loss across the Company's insurance or asset portfolios.
1 unchanged sentence
• Property- Risk of loss to personal or commercial property from automobile related accidents, weather, explosions, smoke, shaking, fire, theft, vandalism, inadequate installation, faulty equipment, collisions and falling objects, and/or machinery mechanical breakdown resulting in physical damage, losses from PV&T and other covered perils.
−Removed: • Liability- Risk of loss from automobile related accidents, uninsured and underinsured drivers, lawsuits from accidents, defective products, breach of warranty, negligent acts by professional practitioners, environmental claims, latent exposures, fraud, coercion, forgery, failure to fulfill obligations per contract surety, liability from errors and omissions, losses from CPRI coverages, losses from
−Removed: derivative lawsuits, and other securities actions and covered perils.
+Added: • Liability- Risk of loss from automobile related accidents, uninsured and under-insured drivers, lawsuits from accidents, defective products, breach of warranty, negligent acts by professional practitioners, environmental claims, latent exposures, fraud, coercion, forgery, failure to fulfill obligations per contract surety, liability from errors and omissions, losses from CPRI coverages, losses from derivative lawsuits, and other securities actions and covered perils.
• Mortality- Risk of loss from unexpected trends in insured deaths impacting timing of payouts from group life insurance, personal or commercial automobile related accidents, and death of employees or executives during the course of employment, while on disability, or while collecting workers compensation benefits.
4 unchanged sentences
Catastrophe risk primarily arises in the property, automobile, workers' compensation, casualty, group life, and group disability lines of business but could also arise from other coverages such as losses under PV&T and CPRI policies.
−Removed: Not all insurance losses arising from catastrophe risk are categorized as catastrophe losses within the segment operating results.
−Removed: For example, losses arising from the COVID-19 pandemic were not categorized as catastrophe losses within either the P&C or Group Benefits segments as the pandemic was not identified as a catastrophe event by the Property Claim Service in the U.S.
−Removed: See the term Current Accident Year Catastrophe Ratio within the Key Performance Measures section of MD&A for an explanation of how the Company defines catastrophe losses in its financial reporting.
+Added: See the term Current Accident Year Catastrophe Ratio within the Key Performance Measures and Ratios section of MD&A for an explanation of how the Company defines catastrophe losses in its financial reporting.
Impact Non-catastrophe insurance risk can arise from unexpected loss experience, underpriced business and/or underestimation of loss reserves and can have significant effects on the Company’s earnings.
3 unchanged sentences
The Company uses both internal and third-party models to estimate the potential loss resulting from various catastrophe events and the potential financial impact those events would have on the Company's financial position and results of operations across its businesses.
+Added: The Hartford closely monitors scientific literature on climate change to help identify climate change risks impacting our business.
+Added: We use data from the scientific community and other outside experts including partnerships with third-party catastrophe modeling firms to inform our risk management activities and stay abreast of potential implications of climate-related impacts that we incorporate into our risk assessment.
+Added: We regularly study these climate change implications and incorporate these risks into our catastrophe risk assessment
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: The Hartford closely monitors scientific literature on climate change to help identify climate change risks impacting our business.
−Removed: We use data from the scientific community and other outside experts including partnerships with third-party catastrophe modeling firms to inform our risk management activities and stay abreast of potential implications of climate-related impacts that we incorporate into our risk assessment.
−Removed: We regularly study these climate change implications and incorporate these risks into our catastrophe risk assessment and management strategy through product pricing, underwriting and management of aggregate risk to manage implications of severe weather and climate change in our insurance portfolio.
+Added: and management strategy through product pricing, underwriting and management of aggregate risk to manage implications of severe weather and climate change in our insurance portfolio.
In addition, certain insurance products offered by The Hartford provide coverage for losses incurred due to cyber events and the Company has assessed and modeled how those products would respond to different events in order to manage its aggregate exposure to losses incurred under the insurance policies we sell.
12 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Primary Catastrophe Treaty Reinsurance Coverages as of September 30, 2024 [1]
+Added: Primary Catastrophe Treaty Reinsurance Coverages as of March 31, 2025 [1]
Portion of losses reinsured Portion of losses retained by The Hartford
14 unchanged sentences
[1] These agreements do not cover the assumed reinsurance business which purchases its own retrocessional coverage.
−Removed: [2] In addition to the Per Occurrence Property Catastrophe Treaty, for Florida homeowners wind events, The Hartford has purchased the mandatory FHCF reinsurance for the annual period starting June 1, 2024.
+Added: [2] In addition to the Per Occurrence Property Catastrophe Treaty, for Florida homeowners wind events, The Hartford has purchased the mandatory FHCF reinsurance for the annual period starting June 1, 2024, and will renew for the annual period starting June 1, 2025.
Retention and coverage varies by writing company.
−Removed: For the 2024 - 2025 period, the writing company with the largest coverage under FHCF is Hartford Insurance Company of the Midwest, with coverage of $35 in per event losses in excess of a $19 retention (estimates are based on best available information at this time and are periodically updated as information is made available by Florida).
+Added: The writing company with the largest coverage under FHCF is Hartford Insurance Company of the Midwest, with coverage of $35 in per event losses in excess of a $19 retention (estimates are based on best available information at this time and are periodically updated as information is made available by Florida).
[3] Named hurricanes and tropical storms are defined as any storm or storm system declared to be a hurricane or tropical storm by the US National Hurricane Center, US Weather Prediction Center, or their successor organizations (being divisions of the US National Weather Service).
16 unchanged sentences
Reinsurance for A&E and Navigators Group Reserve Development - The Company has two adverse development covers ("ADC") reinsurance agreements in place, both of which are accounted for as retroactive reinsurance.
−Removed: One agreement covers substantially all A&E reserve development for 2016 and prior accident years (the “A&E ADC”) up to an aggregate limit of $1.5 billion and the other 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
+Added: One agreement covered substantially all A&E reserve development for 2016 and prior accident years (the “A&E ADC”) up to an aggregate limit of $1.5 billion and the other 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.
+Added: As the Company has
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: had previously ceded the available limit.
−Removed: 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.
−Removed: During the nine months ended September 30, 2024, the Company collected recoveries from NICO and as a result amortized $87 of the $209 deferred gain within benefits, losses and loss adjustment expenses in the Condensed Consolidated Statements of Operations.
−Removed: 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.
+Added: ceded all of the $300 and $1.5 billion available limits under the Navigators ADC and the A&E ADC;
+Added: respectively, there is no remaining limit available under either agreement as of December 31, 2024.
+Added: During the three months ended March 31, 2025, the Company collected recoveries from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., under the Navigators ADC and as a result amortized $32 of the deferred gain within benefits, losses and loss adjustment expenses in the Condensed Consolidated Statements of Operations.
+Added: 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.
For more information on the A&E ADC and the Navigators ADC, see Note 1 - Basis of Presentation and Significant Accounting Policies and Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements, included in The Hartford's 2024 Form 10-K Annual Report.
8 unchanged sentences
Derivatives may be used to achieve the following Company-approved objectives:
−Removed: (1) hedging risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility;
+Added: (1) hedging risk arising from interest rate, equity market, credit spread and issuer default, price or currency exchange rate risk or volatility;
(2) managing liquidity;
11 unchanged sentences
The Company also monitors internal and external conditions, and identifies material risk changes and emerging risks that may impact operating cash flows or liquid assets.
−Removed: The liquidity requirements of The Hartford Financial Services Group, Inc.
−Removed: ("HFSG Holding Company") have been and will continue to be met by the HFSG Holding Company's fixed maturities, short-term investments and cash, and dividends from its subsidiaries, principally from its insurance operations, as well as the issuance of common stock, debt or other capital securities and borrowings from its credit facilities, as needed.
−Removed: The Company maintains multiple sources of contingent liquidity including a revolving credit facility, an intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates, and access to collateralized advances from the Federal Home Loan Bank of Boston (" FHLBB ") for certain affiliates.
+Added: The liquidity requirements of The Hartford Insurance Group, Inc.
+Added: ("HIG Holding Company") have been and will continue to be met by the HIG Holding Company's fixed maturities, short-term investments and cash, and dividends from its subsidiaries, principally from its insurance operations, as well as the issuance of common stock, debt or other capital securities and borrowings from its credit facilities, as needed.
+Added: The Company maintains multiple sources of contingent liquidity including a revolving credit facility, an intercompany liquidity agreement that allows for short-term advances of funds among the HIG Holding Company and certain affiliates, and access to collateralized advances from the Federal Home Loan Bank of Boston ("FHLBB") for certain affiliates.
The Company's CFO has primary responsibility for liquidity risk.
5 unchanged sentences
and the risk of a change in value due to changes in credit spreads.
−Removed: Sources of Credit Risk The majority of the Company’s credit risk is concentrated in its investment holdings and use of derivatives, but it is also present in the Company’s ceded reinsurance activities and various insurance products.
+Added: Sources of Credit Risk The majority of the Company’s credit risk is concentrated in its investment holdings and use of derivatives, but it is also present in the Company’s ceded reinsurance activities, bond insurance, and certain aspects of Business Insurance products.
Impact A decline in creditworthiness is typically reflected as an increase in an investment’s credit spread and an associated decline in the investment's fair value, potentially resulting in recording an ACL and an increased probability of a realized loss upon sale.
2 unchanged sentences
Management The objective of the Company’s enterprise credit risk management strategy is to identify, quantify and manage credit risk in aggregate and to limit potential losses in accordance with the Company's credit risk management policy.
−Removed: The Company manages its credit risk by managing aggregations of risk, holding a diversified mix of issuers and counterparties across its investment, reinsurance and insurance
+Added: The Company manages its credit risk by managing aggregations of risk, holding a diversified mix of issuers and
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: portfolios and limiting exposure to any specific reinsurer or counterparty.
+Added: counterparties across its investment, reinsurance and insurance portfolios and limiting exposure to any specific reinsurer or counterparty.
Potential credit losses can be mitigated through diversification (e.g., geographic regions, asset types, industry sectors), hedging and the use of collateral to reduce net credit exposure.
13 unchanged sentences
Exposures are tracked on a current and potential basis and aggregated by ultimate parent of the counterparty across investments, reinsurance receivables, insurance products with credit risk, and derivatives.
−Removed: As of September 30, 2024, the Company had no investment exposure to any credit concentration risk of a single issuer or counterparty greater than 10% of the Company’s stockholders' equity, other than the U.S.
+Added: As of March 31, 2025, the Company had no investment exposure to any credit concentration risk of a single issuer or counterparty greater than 10% of the Company’s stockholders' equity, other than the U.S.
government and certain U.S.
16 unchanged sentences
Credit Risk Reduced Through Credit Derivatives
−Removed: The Company uses credit derivatives to purchase credit protection with respect to a single entity or referenced index.
+Added: The Company may enter into credit derivatives to purchase credit protection with respect to a single entity or referenced index.
The Company purchases credit protection through credit default swaps to economically hedge and manage credit risk of certain fixed maturity investments across multiple sectors of the investment portfolio.
5 unchanged sentences
Credit Risk of Business Operations
−Removed: The Company is subject to credit risk related to the Company's Commercial Lines business that is written with large deductible policies or retrospectively-rated plans (referred to as "loss sensitive business").
−Removed: The Company’s results of operations could be adversely affected if a significant portion of such contract holders failed to reimburse the Company for the deductible amount or the retrospectively rated policyholders failed to pay additional premiums owed.
−Removed: While the Company attempts to manage the risks discussed above through underwriting, credit analysis, collateral requirements, provision for bad debt, and other oversight mechanisms, the Company’s efforts may not be successful.
−Removed: Interest Rate Risk
−Removed: Interest rate risk is the risk of financial loss due to adverse changes in the value of assets and liabilities arising from movements in interest rates.
−Removed: Interest rate risk encompasses
+Added: A portion of the Company's Business Insurance business is written with large deductibles or under retrospectively-rated plans.
+Added: 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.
+Added: As such, the Company is subject to credit risk until reimbursement is made.
+Added: Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred.
+Added: Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company.
+Added: The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies.
+Added: The Company manages these credit risks through credit analysis, collateral requirements, and oversight.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: exposures with respect to changes in the level of interest rates, the shape of the term structure of rates and the volatility of interest rates.
+Added: Interest Rate Risk
+Added: Interest rate risk is the risk of financial loss due to adverse changes in the value of assets and liabilities arising from movements in interest rates.
+Added: Interest rate risk encompasses exposures with respect to changes in the level of interest rates, the shape of the term structure of rates and the volatility of interest rates.
Interest rate risk does not include exposure to changes in credit spreads.
11 unchanged sentences
For assets supporting pension and other postretirement benefit plans, the Company may be required to make additional plan contributions if equity investments in the plan portfolios decline in value.
−Removed: Hartford Funds earnings are
−Removed: also significantly influenced by the U.S.
+Added: Hartford Funds earnings are also significantly influenced by the U.S.
and other equity markets.
−Removed: Generally, declines in equity markets will reduce the value of average daily AUM and the amount of fee income generated from those assets.
+Added: Generally, declines in equity markets will reduce the
+Added: value of average daily AUM and the amount of fee income generated from those assets.
Increases in equity markets will generally have the inverse impact.
14 unchanged sentences
dollar denominated investments will most commonly be reduced through the sale of the assets or through hedges using foreign currency swaps and forwards.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Investment Portfolio Risk
−Removed: The following table presents the Company’s fixed maturities, AFS, by credit quality.
The credit ratings referenced throughout this section are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch.
−Removed: If no rating is available from a rating agency, then an internally developed rating is used.
+Added: If no rating is available
+Added: from a rating agency, then an internally developed rating is used.
Accrued investment income related to fixed maturities is not included in the amortized cost or fair value of the fixed maturities.
For further information refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Fixed Maturities, AFS by Credit Quality
−Removed: September 30, 2024 December 31, 2023
−Removed: Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value
−Removed: United States Government/Government agencies $ 5,064 $ 4,815 11.2 % $ 5,174 $ 4,776 12.0 %
−Removed: AAA 7,225 7,127 16.7 % 7,277 7,055 17.7 %
−Removed: AA 7,842 7,713 18.0 % 7,527 7,270 18.3 %
−Removed: A 11,180 10,994 25.7 % 10,253 9,828 24.7 %
−Removed: BBB 9,877 9,677 22.6 % 9,710 9,198 23.1 %
−Removed: BB & below 2,476 2,467 5.8 % 1,785 1,691 4.2 %
−Removed: Total fixed maturities, AFS $ 43,664 $ 42,793 100.0 % $ 41,726 $ 39,818 100.0 %
−Removed: The fair value of fixed maturities, AFS increased as compared to December 31, 2023, primarily due to net additions of corporate bonds, high-quality RMBS and CLOs, partially offset by net reductions to U.S.
−Removed: treasuries, tax-exempt municipal bonds, and CMBS.
−Removed: The increase was also due to higher valuations as a result of lower interest rates and tighter credit spreads.
−Removed: FVO securities are not included in the preceding table.
−Removed: For further discussion on FVO securities, see Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Fixed Maturities, AFS by Type
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value Percent of Total Fair Value Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value Percent of Total Fair Value
2 unchanged sentences
CLOs 3,392 — 6 (2) 3,396 7.7 % 3,237 — 13 — 3,250 7.6 %
+Added: Commercial Mortgage-Backed Securities ("CMBS")
Agency [1] 1,279 (14) 21 (104) 1,182 2.7 % 1,284 (13) 16 (128) 1,159 2.7 %
10 unchanged sentences
Utilities 2,561 — 19 (150) 2,430 5.5 % 2,464 (3) 11 (167) 2,305 5.4 %
−Removed: Other 370 — 2 (18) 354 0.8 % 408 — 1 (38) 371 0.9 %
+Added: Real estate investment trusts ("REITs") 352 — 1 (15) 338 0.8 % 354 — — (21) 333 0.8 %
Foreign govt./govt.
10 unchanged sentences
[1] Includes securities with pools of loans issued by the Small Business Administration which are backed by the full faith and credit of the U.S.
−Removed: The fair value of fixed maturities, AFS increased as compared to December 31, 2023, primarily due to net additions of corporate bonds, high-quality RMBS and CLOs, partially offset by net reductions to U.S.
−Removed: treasuries, tax-exempt municipal bonds, and CMBS.
−Removed: The increase was also due to higher valuations as a result of lower interest rates and tighter credit spreads.
−Removed: Commercial & Residential Real Estate
−Removed: The following tables present the Company’s exposure to CMBS and RMBS by credit quality included in the preceding Fixed Maturities, AFS by Type table.
+Added: The fair value of fixed maturities, AFS increased as compared to December 31, 2024, primarily due to net additions of corporate
+Added: bonds, high-quality ABS and RMBS, partially offset by net reductions to tax-exempt municipal bonds.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Exposure to CMBS & RMBS Bonds as of September 30, 2024
+Added: Fixed Maturities, AFS by Credit Quality
+Added: March 31, 2025 December 31, 2024
+Added: Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value
+Added: United States Government/Government agencies $ 5,502 $ 5,126 11.6 % $ 5,424 $ 4,937 11.6 %
+Added: AAA 7,721 7,573 17.2 % 7,340 7,166 16.8 %
+Added: AA 7,682 7,423 16.8 % 7,762 7,484 17.6 %
+Added: A 12,021 11,639 26.3 % 11,422 10,933 25.7 %
+Added: BBB 10,509 10,125 22.9 % 10,227 9,722 22.8 %
+Added: BB & below 2,355 2,318 5.2 % 2,363 2,325 5.5 %
+Added: Total fixed maturities, AFS [1] $ 45,790 $ 44,204 100.0 % $ 44,538 $ 42,567 100.0 %
+Added: [1] Excludes FVO securities.
+Added: For further discussion on FVO securities, see Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.
+Added: Commercial & Residential Real Estate
+Added: Exposure to CMBS & RMBS Bonds by Credit Quality as of March 31, 2025
AAA AA A BBB BB and Below Total
9 unchanged sentences
Total CMBS & RMBS $ 2,317 $ 2,207 $ 5,588 $ 5,262 $ 477 $ 450 $ 253 $ 245 $ 166 $ 148 $ 8,801 $ 8,312
−Removed: Exposure to CMBS & RMBS Bonds as of December 31, 2023
+Added: Exposure to CMBS & RMBS Bonds by Credit Quality as of December 31, 2024
AAA AA A BBB BB and Below Total
10 unchanged sentences
[1] Includes securities with pools of loans issued by the Small Business Administration which are backed by the full faith and credit of the U.S.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
The Company also has exposure to commercial mortgage loans.
2 unchanged sentences
A loan participation interest represents a pro-rata share in interest and principal payments generated by the participated loan, and the relationship between the Company as loan originator, lead participant and servicer and the third party as a participant are governed by a participation agreement.
−Removed: As of September 30, 2024, mortgage loans had an amortized cost of $6.5 billion and carrying value of $6.4 billion, with an ACL of $44.
+Added: As of March 31, 2025, mortgage loans had an amortized cost of $6.4 billion and carrying value of $6.4 billion, with an ACL of $43.
As of December 31, 2024, mortgage loans had an amortized cost of $6.4 billion and carrying value of $6.4 billion, with an ACL of $44.
−Removed: The release in the allowance reflects write-
−Removed: offs, improved economic scenario forecasts and property specific reductions, partially offset by net additions of new loans.
−Removed: The Company funded $462 of commercial mortgage loans, primarily industrial properties, with a weighted average loan-to-value (“ LTV ”) ratio of 58% and a weighted average yield of 7.2% during the nine months ended September 30, 2024.
+Added: The Company funded $94 of commercial mortgage loans, primarily industrial and multifamily properties, with a weighted average loan-to-value (“ LTV ”) ratio of 54% and a weighted average yield of 7.0% during the three months ended March 31, 2025.
The Company continues to originate commercial mortgage loans on institutional-quality properties with strong LTV ratios.
−Removed: There were no mortgage loans held for sale as of September 30, 2024, or December 31, 2023.
+Added: There were no mortgage loans held for sale as of March 31, 2025, or December 31, 2024.
Municipal Bonds
−Removed: The following table presents the Company's exposure to municipal bonds by type and weighted average credit quality included in the preceding Securities by Type table.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Available-For-Sale Investments in Municipal Bonds
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Amortized Cost Fair Value Weighted Average Credit Quality Amortized Cost Fair Value Weighted Average Credit Quality
7 unchanged sentences
Power 210 200 A+ 281 272 A
−Removed: Sales Tax 199 204 AA 231 237 AA
Housing 187 177 AA 195 185 AA
−Removed: Other 514 498 AA- 611 588 A+
+Added: Sales Tax 177 173 AA 183 183 AA
+Added: Other 437 406 AA- 461 434 AA-
Total Revenue 4,251 3,967 AA- 4,455 4,209 AA-
5 unchanged sentences
Lease payments may be subject to annual appropriation by the municipality, or the municipality may be obligated to appropriate general tax revenues to make lease payments.
−Removed: As of September 30, 2024, the largest issuer concentrations were the State of Illinois, the New York City Transitional Finance Authority, and CommonSpirit Health, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds.
−Removed: As of December 31, 2023, the largest issuer concentrations were the New York City Transitional Finance Authority, the State of Illinois, and the Metropolitan Transportation Authority, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds.
+Added: As of both March 31, 2025, and December 31, 2024, the largest issuer concentrations were the Metropolitan Transportation Authority, the State of Illinois, and the State of California, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds.
In total, municipal bonds make up 8% of the fair value of the Company's investment portfolio.
Limited Partnerships and Other Alternative Investments
−Removed: The following table presents the Company’s investments in limited partnerships and other alternative investments which include real estate joint ventures, real estate funds, private equity funds, other funds, and other alternative investments.
+Added: The following table presents the Company’s investments in limited partnerships and other alternative investments which
+Added: include real estate joint ventures, real estate funds, private equity funds, other funds, and other alternative investments.
Private equity funds primarily consist of investments in funds whose assets typically consist of a diversified pool of investments in small to mid-sized non-public businesses with high growth potential and strong owner sponsorship, as well as limited exposure to public markets.
Income or losses on investments in limited partnerships and other alternative investments are recognized on a lag as results from private equity investments and other funds are generally reported on a three-month delay.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Limited Partnerships and Other Alternative Investments - Net Investment Income
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: Amount Yield [1] Amount Yield [1] Amount Yield [1] Amount Yield [1]
+Added: Three Months Ended March 31,
+Added: Amount Yield [1] Amount Yield [1]
Real estate joint ventures and funds $ (8) (1.7 %) $ (32) (6.4 %)
5 unchanged sentences
[2]Consists of an insurer-owned life insurance policy which is primarily invested in private equity funds and fixed income.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Investments in Limited Partnerships and Other Alternative Investments
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Amount Percent Amount Percent
3 unchanged sentences
Other alternative investments [1] 555 10.8 % 556 11.0 %
−Removed: $ 5,019 100.0 % $ 4,785 100.0 %
+Added: Total $ 5,149 100.0 % $ 5,042 100.0 %
[1]Consists of an insurer-owned life insurance policy which is primarily invested in private equity funds and fixed income.
Fixed Maturities, AFS — Unrealized Loss Aging
−Removed: The total gross unrealized losses were $1.5 billion as of September 30, 2024, and have decreased $0.8 billion from December 31, 2023, primarily due to lower interest rates and tighter credit spreads.
−Removed: As of September 30, 2024, $1.3 billion of the gross unrealized losses were associated with fixed maturities, AFS depressed less than 20% of amortized cost.
+Added: The total gross unrealized losses were $1.9 billion as of March 31, 2025 and have decreased $304 since December 31, 2024, primarily due to lower interest rates, partially offset by wider credit spreads.
+Added: As of March 31, 2025, $1.5 billion of the gross unrealized losses were associated with fixed maturities, AFS depressed less than 20% of amortized cost.
The remaining $0.4 billion of gross unrealized losses were associated with fixed maturities, AFS depressed greater than 20%.
The fixed maturities, AFS depressed more than 20% primarily related to corporate fixed maturities, municipal bonds, and U.S.
−Removed: treasuries, that are mainly depressed because current interest rates are higher and/or market spreads are wider than at the respective purchase dates.
+Added: Treasuries, that are mainly depressed because current interest rates are higher than at the respective purchase dates.
As part of the Company’s ongoing investment monitoring process, the Company has reviewed its fixed maturities, AFS in an unrealized loss position and concluded that these fixed maturities are temporarily depressed and are expected to recover in value as the investments approach maturity or as market spreads tighten.
3 unchanged sentences
Unrealized Loss Aging for Fixed Maturities, AFS Securities
−Removed: September 30, 2024 December 31, 2023
−Removed: Consecutive Months
−Removed: Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
+Added: March 31, 2025 December 31, 2024
+Added: Consecutive Months Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
Three months or less 442 $ 4,307 $ — $ (37) $ 4,270 1,044 $ 9,577 $ — $ (186) $ 9,391
4 unchanged sentences
Total 3,648 $ 27,526 $ (14) $ (1,923) $ 25,589 3,933 $ 29,589 $ (13) $ (2,227) $ 27,349
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Unrealized Loss Aging for Fixed Maturities, AFS Continuously Depressed Over 20%
−Removed: September 30, 2024 December 31, 2023
−Removed: Consecutive Months
−Removed: Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
+Added: March 31, 2025 December 31, 2024
+Added: Consecutive Months Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
Three months or less 42 $ 268 $ — $ (57) $ 211 132 $ 1,003 $ (3) $ (224) $ 776
4 unchanged sentences
Total 192 $ 1,492 $ (2) $ (405) $ 1,085 236 $ 1,885 $ (5) $ (502) $ 1,378
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments
−Removed: Three and nine months ended September 30, 2024
−Removed: For the three and nine months ended September 30, 2024, the Company recorded net credit losses of $0 and $2, respectively.
−Removed: Net credit losses were primarily attributable to increases in the ACL of $1 on CMBS and $1 on a below investment grade corporate issuer.
−Removed: For the three and nine months ended September 30, 2024, unrealized losses on securities with an ACL recognized in other comprehensive income ("OCI") were $0 and less than $1, respectively.
+Added: Three months ended March 31, 2025
+Added: The Company recorded a net credit loss reversal of $2, primarily attributable to a decrease in the ACL of $3 on one below investment grade corporate issuer, partially offset by a credit loss of $1 related to a CMBS.
+Added: There were no unrealized losses on securities with an ACL recognized in other comprehensive income ("OCI").
For further information, refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.
2 unchanged sentences
Future intent-to-sell impairments or credit losses may develop as the result of changes in our intent to sell specific securities that are in an unrealized loss position or if modeling assumptions, such as macroeconomic factors or security specific developments, change unfavorably from our current modeling assumptions, resulting in lower cash flow expectations.
−Removed: Three and nine months ended September 30, 2023
−Removed: For the three and nine months ended September 30, 2023, the Company recorded net credit losses of $5 and $13, respectively.
−Removed: The net credit losses were primarily attributable to increases in the ACL of $5 and $11, respectively, related to three below investment grade corporate issuers.
−Removed: For the three and nine months ended September 30, 2023, unrealized losses on securities with an ACL recognized in OCI were $0 and $4, respectively.
+Added: Three months ended March 31, 2024
+Added: The Company recorded net credit losses of $1 primarily attributable to one below investment grade corporate issuer.
+Added: There were no unrealized losses on securities with an ACL recognized in OCI.
There were no intent-to-sell impairments.
ACL on Mortgage Loans
−Removed: Three and nine months ended September 30, 2024
+Added: Three months ended March 31, 2025
The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses.
1 unchanged sentence
For further information, refer to Note 5 - Investments of Notes to Condensed Consolidated Financial Statements.
−Removed: For the three months ended September 30, 2024, there were no credit loss adjustments on mortgage loans.
−Removed: For the nine months ended September 30, 2024, the Company recorded a credit loss reversal of $3 primarily attributable to improved economic scenario forecasts and property specific improvements, partially offset by net additions of new loans.
−Removed: Three and nine months ended September 30, 2023
−Removed: For the three and nine months ended September 30, 2023, the Company recorded an increase in the ACL on mortgage loans of $5 and $10, respectively.
−Removed: The increase in the allowance is primarily attributable to lower property valuations and overall weaker real estate fundamentals.
+Added: There were no credit loss adjustments on mortgage loans.
+Added: Three months ended March 31, 2024
+Added: The Company recorded a release in the ACL on mortgage loans of $3.
+Added: The release reflected improved economic scenario forecasts and property specific reductions, partially offset by net additions of new loans.
Index to MD&A
4 unchanged sentences
Summary of Capital Resources and Liquidity
−Removed: Capital available to the holding company as of September 30, 2024:
−Removed: • Approximately $1.2 billion in fixed maturities, short-term investments, investment sales receivable and cash at the HFSG Holding Company;
+Added: Capital available to the HIG Holding Company as of March 31, 2025:
+Added: • Approximately $1.3 billion in fixed maturities, short-term investments, investment sales receivable and cash at the HIG Holding Company;
• A senior unsecured revolving credit facility that provides for borrowing capacity up to $750 of unsecured credit through October 27, 2026.
−Removed: As of September 30, 2024, there were no borrowings outstanding;
−Removed: • An intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes.
−Removed: As of September 30, 2024, $1.9 billion was available, $105 was outstanding between certain affiliates and there were no amounts outstanding at the HFSG holding company.
−Removed: Dividends and other sources of capital for the nine months ended September 30, 2024:
+Added: As of March 31, 2025, there were no borrowings outstanding;
+Added: • An intercompany liquidity agreement that allows for short-term advances of funds among the HIG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes.
+Added: As of March 31, 2025, $1.85 billion was available, $150 was outstanding between certain affiliates and there were no amounts outstanding at the HIG Holding company.
+Added: Dividends and other sources of capital for the three months ended March 31, 2025:
The future payment of dividends from our subsidiaries is dependent on several factors including the business results, capital position and liquidity of our subsidiaries.
−Removed: • P&C - HFSG Holding Company received $967 of net dividends from the Company's property and casualty insurance subsidiaries through September 30, 2024;
−Removed: • Group Benefits - HFSG Holding Company received $533 in dividends from Hartford Life and Accident Insurance Company (" HLA ") through September 30, 2024;
−Removed: • Hartford Funds - HFSG Holding Company received $98 in dividends from Hartford Funds through September 30, 2024;
−Removed: • Other - HFSG Holding Company received $28 in dividends from other non-insurance subsidiaries through September 30, 2024.
−Removed: Expected liquidity requirements for the next twelve months as of September 30, 2024:
+Added: • P&C - HIG Holding Company received $288 of net dividends from the Company's property and casualty insurance subsidiaries through March 31, 2025;
+Added: • Employee Benefits - HIG Holding Company received $229 in dividends from Hartford Life and Accident Insurance Company (" HLA ") through March 31, 2025;
+Added: • Hartford Funds - HIG Holding Company received $41 in dividends from Hartford Funds through March 31, 2025;
+Added: Expected liquidity requirements for the next twelve months as of March 31, 2025:
• $194 of interest on debt.
2 unchanged sentences
• $595 of common stockholders' dividends, subject to the discretion of the Board of Directors and before share repurchases.
−Removed: Expected liquidity requirements for beyond the next twelve months as of September 30, 2024:
+Added: Expected liquidity requirements for beyond the next twelve months as of March 31, 2025:
• Interest on and repayments of debt.
2 unchanged sentences
Equity repurchase program:
−Removed: During the nine months ended September 30, 2024, the Company repurchased 11.0 million common shares for $1.1 billion under the $3.0 billion share repurchase authorization that is effective until December 31, 2024 as authorized by the Board of Directors.
−Removed: 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.
−Removed: While the Company anticipates using a portion of the new authorization over the remainder of 2024, it expects to use the vast majority of the new authorization in 2025 and 2026.
−Removed: As of September 30, 2024, the Company has $3.5 billion remaining for equity repurchases under both these share repurchase programs.
−Removed: During the period October 1, 2024 through October 23, 2024, the Company repurchased 1.0 million common shares for $115.
−Removed: 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.
+Added: During the three months ended March 31, 2025, the Company repurchased 3.5 million common shares for $400 under the $3.3 billion share repurchase authorized by the Board of Directors, effective through December 31, 2026.
+Added: As of March 31, 2025, the Company has $2.75 billion remaining for equity repurchases under the current share repurchase program.
+Added: During the period April 1, 2025 through April 23, 2025, the Company repurchased 1.1 million common shares for $124.
+Added: 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.
Liquidity Requirements and Sources of Capital
−Removed: The Hartford Financial Services Group, Inc.
−Removed: (" HFSG Holding Company")
−Removed: The liquidity requirements of HFSG Holding Company will primarily be met by HFSG Holding Company's fixed maturities, short-term investments and cash, and dividends from its subsidiaries, principally its insurance operations .
−Removed: The Company maintains sufficient liquidity and has a variety of contingent
+Added: The Hartford Insurance Group, Inc.
+Added: ("HIG Holding Company")
+Added: The liquidity requirements of the HIG Holding Company will primarily be met by HIG Holding Company's fixed maturities;
+Added: short-term investments and cash;
+Added: and dividends from its subsidiaries, principally its insurance operations .
+Added: The Company maintains sufficient liquidity and has a variety of contingent liquidity resources to manage liquidity across a range of economic scenarios.
+Added: The HIG Holding Company expects to continue to receive dividends from its operating subsidiaries in the future and manages capital in its operating subsidiaries to be sufficient under significant economic stress scenarios.
+Added: Dividends from subsidiaries and other sources of funds at the holding company may be used to repurchase shares under the authorized share repurchase program at the discretion of management.
+Added: Under significant economic stress scenarios, the Company has the ability to meet short-term cash requirements, if needed, by borrowing under its revolving credit facility or by having its insurance subsidiaries take collateralized advances under a
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: liquidity resources to manage liquidity across a range of economic scenarios.
−Removed: The HFSG Holding Company expects to continue to receive dividends from its operating subsidiaries in the future and manages capital in its operating subsidiaries to be sufficient under significant economic stress scenarios.
−Removed: Dividends from subsidiaries and other sources of funds at the holding company may be used to repurchase shares under the authorized share repurchase program at the discretion of management.
−Removed: Under significant economic stress scenarios, the Company has the ability to meet short-term cash requirements, if needed, by borrowing under its revolving credit facility or by having its insurance subsidiaries take collateralized advances under a facility with the FHLBB.
+Added: facility with the FHLBB.
The Company could also choose to have its insurance subsidiaries sell certain highly liquid, high quality fixed maturities or the Company could issue debt in the public markets under its shelf registration.
−Removed: The Hartford's Board of Directors declared the following quarterly dividends since July 1, 2024:
+Added: The Hartford's Board of Directors declared the following quarterly dividends since January 1, 2025:
Common Stock Dividends
Declared Record Payable Amount per share
−Removed: July 17, 2024 September 3, 2024 October 2, 2024 $ 0.470
−Removed: October 24, 2024 December 2, 2024 January 3, 2025 $ 0.520
+Added: February 19, 2025 March 3, 2025 April 2, 2025 $ 0.520
Preferred Stock Dividends
Declared Record Payable Amount per share
−Removed: July 17, 2024 November 1, 2024 November 15, 2024 $ 375.00
−Removed: There are no current restrictions on the HFSG Holding Company's ability to pay dividends to its stockholders.
−Removed: For a discussion of restrictions on dividends to the HFSG Holding Company from its insurance subsidiaries, see the following "Dividends from Subsidiaries" discussion.
−Removed: For a discussion of potential restrictions on the HFSG Holding Company's ability to pay dividends, see the risk factor "Our ability to declare and pay dividends is subject to limitations" in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
+Added: February 19, 2025 May 1, 2025 May 15, 2025 $ 375.00
+Added: There are no current restrictions on the HIG Holding Company's ability to pay dividends to its stockholders.
+Added: For a discussion of restrictions on dividends to the HIG Holding Company from its insurance subsidiaries, see the following "Dividends from Subsidiaries" discussion.
+Added: For a discussion of potential restrictions on the HIG Holding Company's ability to pay dividends, see the risk factor "Our ability to declare and pay dividends is subject to limitations" in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Dividends From Subsidiaries
−Removed: Dividends to HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation.
−Removed: For a discussion of restrictions on dividends to HFSG Holding Company from its insurance subsidiaries see Part II, Item 7, MD&A – Capital Resources and Liquidity - Dividends from Subsidiaries in The Hartford’s 2023 Form 10-K Annual Report.
−Removed: Through the first nine months of 2024, HFSG Holding Company received $1.6 billion of net dividends from its subsidiaries, including $533 from HLA, $98 from Hartford Funds, $28 from other non-insurance subsidiaries and $967 from its P&C
−Removed: subsidiaries, excluding $50 of P&C dividends that were subsequently contributed to P&C subsidiaries and $37 of P&C dividends related to interest payments on an intercompany note owed by Hartford Holdings, Inc.
+Added: Dividends to HIG Holding Company from its insurance subsidiaries are restricted by insurance regulation.
+Added: For a discussion of restrictions on dividends to HIG Holding Company from its insurance subsidiaries see Part II, Item 7, MD&A – Capital Resources and Liquidity - Dividends from Subsidiaries in The Hartford’s 2024 Form 10-K Annual Report.
+Added: Through the first three months of 2025, HIG Holding Company received $558 of net dividends from its subsidiaries, including $229 from HLA, $41 from Hartford Funds and $288 from its P&C subsidiaries, excluding $25 of P&C dividends that were subsequently contributed to P&C subsidiaries and $12 of P&C dividends related to interest payments on an intercompany note owed by Hartford Holdings, Inc.
("HHI") to Hartford Fire Insurance Company.
−Removed: | OTHER SOURCES OF CAPITAL FOR THE HFSG HOLDING COMPANY
+Added: Other Sources of Capital for the HIG Holding Company
The Hartford endeavors to maintain a capital structure that provides financial and operational flexibility to its insurance subsidiaries, ratings that support its competitive position in the financial services marketplace (see the "Ratings" section below for further discussion), and stockholder returns.
3 unchanged sentences
The Hartford filed an automatic shelf registration statement with the Securities and Exchange Commission on September 23, 2024 that permits it to offer and sell debt and equity securities during the three-year life of the registration statement.
−Removed: For further information regarding shelf registrations, see Note 13 - Debt of Notes to Condensed Consolidated Financial Statements.
+Added: For further information regarding shelf registrations, see Note 13 - Debt of Notes to Consolidated Financial Statements included in the Company's 2024 Form 10-K Annual Report.
Revolving Credit Facility
The Hartford has a senior unsecured revolving credit facility (the "Credit Facility") that provides up to $750 of unsecured credit through October 27, 2026.
−Removed: As of September 30, 2024, no borrowings were outstanding and no letters of credit were issued under the Credit Facility and The Hartford was in compliance with all financial covenants.
+Added: As of March 31, 2025, no borrowings were outstanding and no letters of credit were issued under the Credit Facility and The Hartford was in compliance with all financial covenants.
For further information regarding the Credit Facility, see Note 13 - Debt of Notes to Consolidated Financial Statements included in the Company’s 2024 Form 10-K Annual Report.
Intercompany Liquidity Agreements
−Removed: The Company has $2.0 billion available under an intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes.
−Removed: The Connecticut Department of Insurance ("CTDOI") granted approval for certain affiliated insurance companies that are parties to the agreement to treat receivables from a parent, including the HFSG Holding Company, as admitted assets for statutory accounting purposes.
−Removed: As of September 30, 2024, $1.9 billion was available, $105 was outstanding between certain affiliates, and there were no amounts outstanding at the HFSG Holding Company.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: The Company has $2.0 billion available under an intercompany liquidity agreement that allows for short-term advances of funds among the HIG Holding Company and certain affiliates of up to $2.0 billion for liquidity and other general corporate purposes.
+Added: The Connecticut Department of Insurance ("CTDOI") granted approval for certain affiliated insurance companies that are parties to the agreement to treat receivables from a parent, including the HIG Holding Company, as admitted assets for statutory accounting purposes.
+Added: As of March 31, 2025, $1.85 billion was available, $150 was outstanding between certain affiliates, and there were no amounts outstanding at the HIG Holding Company.
Collateralized Advances with Federal Home Loan Bank of Boston
1 unchanged sentence
Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates.
−Removed: Advances may be used to support general corporate purposes, which would be presented as short- or long-term debt, or to earn incremental investment income, which would be presented in other liabilities consistent with other collateralized financing transactions.
−Removed: As of September 30, 2024, there were no advances outstanding.
+Added: Advances may be used to support general corporate purposes, which would be presented as short- or long-term debt, or to earn incremental investment income, which
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: would be presented in other liabilities consistent with other collateralized financing transactions.
+Added: As of March 31, 2025, there were no advances outstanding.
For further information regarding collateralized advances with FHLBB, see Note 13 - Debt of Notes to Consolidated Financial Statements included in the Company’s 2024 Form 10-K Annual Report.
2 unchanged sentences
On October 21, 2024, The Hartford amended and restated its Lloyd’s Facility agreement.
−Removed: 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) commitment.
−Removed: 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.
+Added: 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 ($102 as of March 31, 2025) commitment.
+Added: As of March 31, 2025, letters of credit with an aggregate face amount of $74 and £79 million, or $102, 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.
−Removed: As of September 30, 2024, The Hartford was in compliance with all financial covenants of the facility.
+Added: As of March 31, 2025, The Hartford was in compliance with all financial covenants of the facility.
For further information regarding the Lloyd's Facility, see Note 13 - Debt of Notes to Consolidated Financial Statements included in the Company’s 2024 Form 10-K Annual Report.
2 unchanged sentences
qualified defined benefit pension plan and the funding requirements for all pension plans are expected to be immaterial.
−Removed: Based on the funded status of the U.S.
−Removed: qualified defined benefit pension plan, the Company does not anticipate contributing to the plan in 2024.
+Added: The Company has not determined whether, and to what extent, contributions may be made to the U.S.
+Added: qualified defined benefit pension plan in 2025.
+Added: The Company will monitor the funded status of the U.S.
+Added: qualified defined benefit pension plan during 2025 to make this determination.
For further discussion of pension and other postretirement benefit obligations, see Note 16 - Employee Benefit Plans of Notes to Condensed Consolidated Financial Statements.
1 unchanged sentence
Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical rating agencies, of the individual legal entity that entered into the derivative agreement.
−Removed: If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could terminate agreements and demand immediate settlement of the outstanding net derivative positions transacted under each
+Added: If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could terminate agreements and demand immediate settlement of the outstanding net derivative positions transacted under each agreement.
For further information, refer to Note 13 - Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.
−Removed: As of September 30, 2024, no derivative positions would be subject to immediate termination in the event of a downgrade of one level below the current financial strength ratings.
+Added: As of March 31, 2025, no derivative positions would be subject to immediate termination in the event of a downgrade of one level below the current financial strength ratings.
This could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated.
2 unchanged sentences
The principal sources of operating funds are premiums, fees earned from insurance and administrative service agreements and investment income, while investing cash flows primarily originate from maturities and sales of invested assets.
−Removed: The Company’s insurance operations consist of property and casualty insurance products (collectively referred to as “Property & Casualty Operations”) and Group Benefits products.
+Added: The Company’s insurance operations consist of property and casualty insurance products (collectively referred to as “Property & Casualty Operations”) and Employee Benefits products.
The Company's insurance operations hold fixed maturity securities, including a significant short-term investment position (securities with maturities of one year or less at the time of purchase), to meet liquidity needs.
3 unchanged sentences
Property & Casualty Operations
−Removed: As of September 30, 2024
+Added: As of March 31, 2025
Fixed maturities $ 36,173
3 unchanged sentences
Property & Casualty operations invested assets also include $145 in equity securities, $4.7 billion in mortgage loans and $4.1 billion in limited partnerships and other alternative investments.
−Removed: Group Benefits
−Removed: As of September 30, 2024
+Added: Employee Benefits Operations
+Added: As of March 31, 2025
Fixed maturities $ 8,125
2 unchanged sentences
Total $ 8,287
+Added: Employee Benefits operations invested assets also include $30 in equity securities, $1.6 billion in mortgage loans and $1.1 billion in limited partnerships and other alternative investments.
+Added: The primary uses of funds are to pay claims, claim adjustment expenses, commissions and other underwriting and insurance operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HIG Holding Company.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Group Benefits invested assets also include $49 in equity securities, $1.7 billion in mortgage loans and $1.1 billion in limited partnerships and other alternative investments.
−Removed: The primary uses of funds are to pay claims, claim adjustment expenses, commissions and other underwriting and insurance operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HFSG Holding Company.
−Removed: Property & Casualty reserves for unpaid losses and loss adjustment expenses as of September 30, 2024 were $35.7 billion and net of reinsurance were $29.2 billion.
+Added: Property & Casualty reserves for unpaid losses and loss adjustment expenses as of March 31, 2025 were $37.1 billion and net of reinsurance and other recoverables were $30.3 billion.
Reserves for Property & Casualty unpaid losses and loss adjustment expenses include case reserves and incurred but not reported (" IBNR" ) reserves.
4 unchanged sentences
The timing of future payments for the next twelve months and for beyond twelve months could vary materially from historical payment patterns due to, among other things, changes in claim reporting and payment patterns and large unanticipated settlements.
−Removed: In particular, there is significant uncertainty over the claim payment patterns of A&E claims.
−Removed: Group Benefits reserves as of September 30, 2024 were $8.9 billion and net of reinsurance were $8.6 billion.
+Added: In particular, there is significant uncertainty over the claim payment patterns of asbestos and environmental claims.
+Added: Employee Benefits reserves as of March 31, 2025 were $8.9 billion and net of reinsurance were $8.6 billion.
Group life and disability obligations are estimated using assumptions based on the Company’s historical experience, modified for recent observed trends.
−Removed: For a discussion of The Hartford’s judgment in estimating reserves for Group Benefits see Part II, Item 7, MD&A - Critical Accounting Estimates, Group Benefit Reserves, Net of Reinsurance, in the Company’s 2023 Form 10-K Annual Report.
+Added: For a discussion of The Hartford’s judgment in estimating LTD reserves for Employee Benefits see Part II, Item 7, MD&A - Critical Accounting Estimates, Employee Benefit LTD Reserves, Net of Reinsurance, in the Company’s 2024 Form 10-K Annual Report.
For additional information about future policy benefits and other policyholder funds and benefits payable, see Note 10 - Reserve for Future Policy Benefits and Note 11 - Other Policyholder Funds and Benefits Payable of Notes to Condensed Consolidated Financial Statements.
−Removed: For historical
−Removed: payments by reserve line, net of reinsurance, see 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.
+Added: For historical payments by reserve line, net of reinsurance, see Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses
+Added: of Notes to Consolidated Financial Statements included in the Company's 2024 Form 10-K Annual Report.
Due to the significance of the assumptions used, payments for the next twelve months and beyond twelve months could materially differ from historical patterns.
−Removed: Corporate includes reserves as of September 30, 2024 were $382 and net of reinsurance were $156.
+Added: Corporate reserves as of March 31, 2025 were $367 and net of reinsurance were $147.
These reserves related to retained run-off liabilities of its former life and annuity business.
1 unchanged sentence
Hartford Funds
−Removed: Hartford Funds' principal sources of operating funds are fees earned from basis points on AUM with uses primarily for payments to subadvisors and other general operating expenses.
−Removed: As of September 30, 2024, Hartford Funds cash and short-term investments were $281.
+Added: Hartford Funds' principal sources of operating funds are fees earned from basis points on assets under management with uses primarily for payments to subadvisors and other general operating expenses.
+Added: As of March 31, 2025, Hartford Funds cash and short-term investments were $315.
Purchase and Other Obligations
−Removed: The Hartford’s unfunded commitments to purchase investments in limited partnerships and other alternative investments, private placements, and mortgage loans are disclosed in Note 15 - Commitments and Contingencies of Notes to Consolidated Financial Statements in The Hartford's 2023 Form 10-K Annual Report.
+Added: The Hartford’s unfunded commitments to purchase investments in limited partnerships and other alternative investments, mortgage loans, private debt and equity securities, as well as tax credits are disclosed in Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements in The Hartford's 2024 Form 10-K Annual Report.
It is anticipated that these unfunded commitments will be funded through the Company’s normal operating and investing activities.
2 unchanged sentences
It is anticipated that these purchase commitments and operating lease obligations will be funded through the Company’s normal operating and investing activities.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Capitalization
Capital Structure
−Removed: September 30, 2024 December 31, 2023 Change
+Added: March 31, 2025 December 31, 2024 Change
Long-term debt $ 4,368 $ 4,366 — %
−Removed: 4,365 4,362 — %
+Added: Total debt 4,368 4,366 — %
Common stockholders' equity excluding AOCI, net of tax 19,090 18,999 — %
2 unchanged sentences
Total stockholders’ equity $ 16,844 $ 16,447 2 %
−Removed: 17,008 15,327 11 %
Total capitalization $ 21,212 $ 20,813 2 %
−Removed: $ 21,373 $ 19,689 9 %
Debt to stockholders’ equity 26 % 27 %
Debt to capitalization 21 % 21 %
−Removed: Total capitalization increased $1,684 as of September 30, 2024 compared to December 31, 2023 primarily due to net income in excess of common stockholder dividends in the period, and a decrease in net unrealized losses on fixed maturities, AFS partially offset by share repurchases.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: Total capitalization increased $399 as of March 31, 2025 compared to December 31, 2024 primarily due to net income in excess of common stockholder dividends in the period, and a decrease in net unrealized losses on fixed maturities, AFS partially offset by share repurchases.
For additional information on AOCI, net of tax, including net unrealized gain (losses) from securities, see Note 15 - Changes
1 unchanged sentence
For additional information on debt, see Note 13 - Debt of Notes to Consolidated Financial Statement in The Hartford's 2024 Form 10-K Annual Report.
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Net cash provided by operating activities $ 985 $ 1,097
2 unchanged sentences
Cash and restricted cash– end of period $ 216 $ 322
−Removed: Cash provided by operating activities increased in 2024 as compared to the prior year period primarily driven by an increase in P&C and Group Benefits premiums received, a decrease in P&C loss and loss adjustment expenses paid due to the $787 payment to the Boy Scouts of America in the prior year, partially offset by higher operating expenses, including increased commissions and staffing costs, an increase in Group Benefits loss and loss adjustment expenses paid, and taxes paid.
−Removed: Cash used for investing activities increased in 2024 as compared to the prior year driven by a decrease in net proceeds from equity securities at fair value, a decrease in net proceeds from short term investments, and an increase in net payments for mortgage loans, partially offset by a change from net payments for to net proceeds from derivatives and a decrease in net payments for partnerships.
−Removed: Cash used for financing activities increased in 2024 as compared to the prior year period driven by an increase in treasury stock acquired, an increase in dividends paid on common stock, and an increase in net outflows on investment and universal life type contracts, partially offset by a decrease in net issuance of shares under incentive and stock compensation plans.
−Removed: Operating cash flows for the nine months ended September 30, 2024 has been adequate to meet liquidity requirements.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: Cash provided by operating activities decreased in 2025 as compared to the prior year period primarily driven by an increase in P&C and Employee Benefits loss and loss adjustment expenses paid, higher operating expenses, including increased commissions and staffing costs, and a decrease in partnership cash income, partially offset by an increase in P&C and Employee Benefits premiums received.
+Added: Cash used for investing activities decreased in 2025 as compared to the prior year driven by a decrease in net payments for fixed maturities and a change from net payments for to net proceeds from mortgage loans, partially offset by a decrease in net proceeds for equity securities at fair value and short-term investments.
+Added: Cash used for financing activities increased in 2025 as compared to the prior year period driven by an increase in treasury stock acquired, an increase in the net return of shares under incentive and stock compensation plans, and an increase in dividends paid on common stock.
+Added: Operating cash flows for the three months ended March 31, 2025 has been adequate to meet liquidity requirements.
Equity Markets
8 unchanged sentences
insurance subsidiaries as well as the level of GAAP capital held by the Company in determining the Company's financial strength and credit ratings.
−Removed: Rating agencies may implement changes to their capital formulas that have the effect of increasing the amount of capital we must hold in order to maintain our current ratings.
+Added: Rating agencies may implement changes to their capital formulas that have the effect of increasing the amount of capital
+Added: we must hold in order to maintain our current ratings.
See Risk Factors disclosed in Item 1A of Part I of the Company's 2024 Form 10-K Annual Report.
Insurance Financial Strength Ratings as of
−Removed: October 23, 2024
+Added: April 23, 2025
Best Standard & Poor’s Moody’s
3 unchanged sentences
Other Ratings:
−Removed: The Hartford Financial Services Group, Inc.:
+Added: The Hartford Insurance Group, Inc.:
Senior debt a- BBB+ Baa1
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Statutory Capital
Statutory Capital Rollforward for the Company's Insurance Subsidiaries
−Removed: Property and Casualty Insurance Subsidiaries [1] [2] Group Benefits Insurance Subsidiary Total
+Added: Property and Casualty Insurance Subsidiaries [1] [2] Employee Benefits Insurance Subsidiary Total
U.S statutory capital at January 1, 2025
5 unchanged sentences
statutory capital 124 (99) 25
−Removed: U.S statutory capital at September 30, 2024
+Added: U.S statutory capital at March 31, 2025
$ 13,418 $ 2,609 $ 16,027
1 unchanged sentence
[2] Excludes insurance operations in the U.K.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Contingencies
3 unchanged sentences
For a discussion regarding legislative and regulatory developments, see Part II, Item 7, MD&A - Capital Resources and Liquidity, Contingencies in the Company’s 2024 Form 10-K Annual Report.
−Removed: Additionally, the U.S.
−Removed: Securities and Exchange Commission (“SEC”) has issued final rules to enhance and standardize climate-related disclosures for investors.
−Removed: The SEC rules are being challenged in the courts, and on April 4, 2024 the SEC voluntarily stayed the rules pending judicial review.
−Removed: If they become operative in their current form, the rules will require extensive narrative and quantitative reporting on climate change and decarbonization in SEC filings and financial statements and pose potential compliance and regulatory risks to the Company, beginning in fiscal year 2025.
−Removed: The State of California has enacted laws that impose similarly extensive compliance burdens on the Company, entailing like compliance and regulatory risks.
−Removed: Other jurisdictions may follow suit.
−Removed: However, the California laws are facing legal challenges as well and the overall state of these types of climate related disclosure regimes, whether at the state or federal level, remains uncertain.
Impact of New Accounting Standards
−Removed: For a discussion of accounting standards, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in The Hartford’s 2023 Form 10-K Annual Report and Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements of this Form 10-Q.
+Added: For a discussion of accounting standards, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in The Hartford’s 2024 Form 10-K Annual Report.
Index to MD&A
2 unchanged sentences
Asbestos and Environmental
−Removed: Hartford Holdings, Inc.
+Added: HIG The Hartford Insurance Group, Inc.
Asset-Backed Securities
11 unchanged sentences
Assets Under Management
−Removed: London Inter-Bank Offered Rate
−Removed: Boy Scouts of America
Long-Term Disability
5 unchanged sentences
National Association of Insurance Commissioners
−Removed: CME Chicago Mercantile Exchange NICO
+Added: CODM Chief Operating Decision Maker
National Indemnity Company, a subsidiary of Berkshire Hathaway Inc.
1 unchanged sentence
Credit and Political Risk Insurance
−Removed: Not Meaningful
+Added: NM Not Meaningful
Deferred Policy Acquisition Costs
−Removed: Net Operating Loss Carryforwards or Carrybacks
−Removed: Diversity, Equity and Inclusion
Other Comprehensive Income
21 unchanged sentences
TRIPRA Terrorism Risk Insurance Program Reauthorization Act
−Removed: Hartford Financial Services Group, Inc.
+Added: Hartford Holdings, Inc.
Unallocated Loss Adjustment Expenses
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.