16 unchanged sentences
Business Insurance
−Removed: Persona l Insurance
+Added: Personal Insurance
Property & Casualty Other Operations
−Removed: Employe e Benefits
+Added: Employee Benefits
Hartford Funds
49 unchanged sentences
Reconciliation of Net Income to Core Earnings
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
Net income $ 995 $ 738 $ 1,625 $ 1,491
2 unchanged sentences
Adjustments to reconcile net income available to common stockholders to core earnings:
−Removed: Net realized losses (gains) excluded from core earnings, before tax 47 (30)
+Added: Net realized losses excluded from core earnings, before tax 10 58 57 28
Restructuring and other costs, before tax — — — 1
3 unchanged sentences
Core earnings $ 981 $ 750 $ 1,620 $ 1,459
−Removed: [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.
+Added: [1] The Company recorded amortization of the deferred gain related to the Navigators adverse development cover ("Navigators ADC") of $24 and $56 for the three and six months ended June 30, 2025 and $37 and $61 for the three and six months ended June 30, 2024, 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.
15 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 Business Insurance and Personal Insurance is the ratio of underwriting expenses less fee income, to earned premiums.
−Removed: Underwriting expenses include the
−Removed: 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.
+Added: Expense Ratio- For Business Insurance and Personal Insurance is the ratio of underwriting expenses less fee income,
+Added: to earned premiums.
+Added: Underwriting expenses include the 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.
7 unchanged sentences
Loss and Loss Adjustment Expense Ratio- A measure of the cost of claims incurred in the calendar year divided by earned premium and includes losses and loss adjustment expenses incurred for both the current and prior accident years.
−Removed: Among other factors, the loss and loss adjustment expense ratio needed for the Company to achieve its targeted return on equity (" ROE ") fluctuates from year to year based on changes in the expected investment yield over the claim settlement period, the timing of expected claim settlements and the targeted returns set by management based on the competitive environment.
+Added: Among other factors, the loss and loss adjustment expense ratio needed for the Company to achieve its targeted return on equity (" ROE ") fluctuates from year to year based on changes in the expected investment yield over the claim settlement period, the timing of expected claim
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: settlements and the targeted returns set by management based on the competitive environment.
The loss and loss adjustment expense ratio is affected by claim frequency and claim severity, particularly for shorter-tail property lines of business, where the emergence of claim frequency and severity is credible and likely indicative of ultimate losses.
75 unchanged sentences
Reconciliation of Net Income to Underwriting Gain (Loss)
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
Business Insurance
2 unchanged sentences
Net investment income (449) (402) (886) (793)
−Removed: Net realized losses (gains) 24 (12)
−Removed: Other expense 1 2
+Added: Net realized losses 20 50 44 38
+Added: Other (income) expense 1 1 2 3
Income tax expense 176 130 298 259
1 unchanged sentence
Personal Insurance
−Removed: Net income $ 5 $ 34
+Added: Net income (loss) $ 91 $ (11) $ 96 $ 23
Adjustments to reconcile net income (loss) to underwriting loss:
Net investment income (58) (50) (115) (100)
−Removed: Net realized losses (gains) 2 (1)
+Added: Net realized losses 4 8 6 7
Net servicing and other income (5) (6) (10) (10)
−Removed: Income tax expense — 8
−Removed: Underwriting loss $ (55) $ (13)
+Added: Income tax expense (benefit) 23 (4) 23 4
+Added: Underwriting gain (loss) $ 55 $ (63) $ — $ (76)
P&C Other Operations
2 unchanged sentences
Net investment income (19) (19) (37) (37)
+Added: Net realized losses 2 3 2 3
Income tax expense 2 3 5 4
6 unchanged sentences
These premiums together with net investment income earned are used to pay the contractual obligations under these insurance contracts.
−Removed: Two major factors, new sales and persistency, impact premium growth.
+Added: Two major factors, sales and persistency, impact premium growth.
Sales can increase or decrease in a given year based on a number of factors, including but not limited to, customer demand for the Company’s product offerings, pricing competition, distribution channels and the Company’s reputation and ratings.
40 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: First Quarter Financial Highlights
+Added: Second Quarter Financial Highlights
Net Income Available to Common Stockholders Net Income Available to Common Stockholders per Diluted Share Book Value per Diluted Share
−Removed: Þ Decreased $123 or 16% Þ Decreased $0.32 or 13% Ý Increased $1.98 or 4%
−Removed: - Higher catastrophe losses in P&C - Decrease in net income available to common stockholders + Net income in excess of common stockholder dividends
−Removed: - 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
−Removed: - Higher long-term disability and supplemental health loss ratios - Dilutive effect of share repurchases
−Removed: + The effect of higher earned premiums in P&C and Employee Benefits
−Removed: + Lower underlying loss and LAE ratio in Personal Insurance
−Removed: + Greater favorable P&C prior accident year reserve development
+Added: Ý Increased $257 or 35% Ý Increased $1 or 41% Ý Increased $4.93 or 9%
+Added: + The effect of higher earned premiums in P&C + Increase in net income available to common stockholders + Net income in excess of common stockholder dividends
+Added: + Greater favorable P&C prior accident year reserve development + 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: + Lower underlying loss and LAE ratio in Personal Insurance - Dilutive effect of share repurchases
+Added: + Lower CAY catastrophe losses
+ Higher net investment income
−Removed: + Lower group life loss ratio
−Removed: + Lower paid family and medical leave products loss ratio
+Added: + Lower net realized losses
+Added: - Higher underlying loss and LAE ratio in Business Insurance
Investment Yield, After Tax Property & Casualty Combined Ratio Employee Benefits Net Income Margin
−Removed: 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, partially offset by a lower yield on variable-rate securities.
−Removed: + Higher catastrophe losses in P&C
−Removed: + Lower group life loss ratio
−Removed: + A slightly higher P&C expense ratio primarily due to higher Personal Insurance marketing expense + Lower paid family and medical leave products loss ratio
−Removed: + 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
−Removed: - Greater favorable P&C prior accident year reserve development - A change to net realized losses from net realized gains
+Added: Ý Increased 20 bps Þ Improved 5.0 points Þ Decreased 1.2 points
+Added: + A higher yield on fixed maturity securities due to reinvesting at higher interest rates, partially offset by a lower yield on variable-rate securities.
+Added: + Greater favorable P&C prior accident year reserve development - Higher expense ratio, including higher technology and staffing costs
+Added: + Lower underlying loss and LAE ratio in Personal Insurance - Higher short-term and long-term disability loss ratios
+Added: + Lower catastrophe losses in P&C
+Added: + Higher net investment income
+Added: - Higher underlying loss and LAE ratio in Business Insurance + Lower group life loss ratio
Index to MD&A
4 unchanged sentences
Consolidated Results of Operations
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Earned premiums $ 5,961 $ 5,578 7 % $ 11,796 $ 11,024 7 %
1 unchanged sentence
Net investment income 664 602 10 % 1,320 1,195 10 %
−Removed: Net realized gains (losses) (49) 28 NM
+Added: Net realized losses (10) (59) 83 % (59) (31) (90 %)
Other revenues 30 26 15 % 52 45 16 %
13 unchanged sentences
Net income available to common stockholders $ 990 $ 733 35 % $ 1,615 $ 1,481 9 %
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Net income available to common stockholders decreased by $123, primarily driven by:
−Removed: • 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;
−Removed: • A $77, before tax, change to net realized losses in the 2025 period compared to net realized gains in the 2024 period.
−Removed: These decreases were partially offset by:
−Removed: • 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;
−Removed: • 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.
+Added: Three months ended June 30, 2025 compared to the three months ended June 30, 2024
+Added: Net income available to common stockholders increased by $257, primarily driven by:
+Added: • An increase in P&C underwriting gain of $243, before tax, driven by the effect of earned premium growth, a higher level of net favorable prior accident year reserve development, a lower underlying loss and LAE ratio in Personal Insurance and lower CAY catastrophe losses, partially offset by a higher underlying loss and LAE ratio in Business Insurance;
+Added: • Higher net investment income of $62, before tax, primarily driven by the impact of higher invested assets and reinvesting at higher interest rates, partially offset by a lower yield on variable-rate securities;
+Added: • Lower net realized losses of $49, before tax.
+Added: These increases were partially offset by:
+Added: • In Employee Benefits, the impact of a higher expense ratio, including higher technology costs and staffing costs, and a higher loss ratio on long-term and short-term disability, partially offset by a lower group life loss ratio.
For a discussion of the Company's operating results by segment, see MD&A - Reportable Segment And Corporate Operating Summaries.
4 unchanged sentences
Earned premiums increased by $383 or 7%, primarily due to:
−Removed: • An increase in P&C reflecting a 9% increase in Business Insurance and a 11% increase in Personal Insurance.
+Added: • An increase in P&C reflecting a 10% increase in both Business Insurance and Personal Insurance.
– 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.
– For Personal Insurance, earned premium increased primarily due to the effect of earned pricing increases, partially offset by non-renewals.
−Removed: • 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: • Employee Benefits earned premium was essentially flat, as an increase in exposure on existing accounts was offset by lower fully insured ongoing sales.
Fee income increased primarily due to a $3 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: [1] Limited partnerships and other alternative investments of $16 and $39 for the three months ended March 31, 2024 and 2025 respectively.
−Removed: 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.
−Removed: 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:
−Removed: • Valuation declines on equity securities in the 2025 period compared to improvements in the 2024 period;
−Removed: • Losses on transactional foreign currency revaluation in the 2025 period compared to gains in the 2024 period.
+Added: [1] Limited partnerships and other alternative investments of $16 and $13 for the three months ended June 30, 2024 and 2025 respectively.
+Added: Net investment income increased primarily due to the impact of higher invested assets and reinvesting at higher interest rates, partially offset by a lower yield on variable-rate securities.
+Added: Net realized losses improved primarily due to fewer net losses on sales of fixed maturities.
+Added: Also included were valuation improvements on equity securities, partially offset by valuation declines on equity derivatives, due to higher equity market levels.
For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.
7 unchanged sentences
– An increase in P&C CAY loss and LAE before catastrophes of $190, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower underlying loss and LAE ratio in Personal Insurance.
−Removed: – An increase in CAY catastrophe losses of $306, before tax.
−Removed: 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.
−Removed: 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:
– A favorable change of $72, before tax, in P&C net prior accident year reserve development, with development in the 2025 period of $187, compared to $115 in the prior year period.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Losses and LAE Incurred for Employee Benefits
+Added: Favorable prior year reserve development in the 2025 period was primarily driven by decreases in reserves related to workers' compensation, catastrophes, bond, commercial property, 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, catastrophes, bond, Personal Insurance automobile liability, and homeowners, partially offset by increases in reserves for general liability, assumed reinsurance, and Business Insurance automobile liability.
+Added: Also included within net prior accident year reserve development for the three months ended June 30, 2025 and 2024 was a benefit of $24 and $37, respectively, related to amortization of the Navigators ADC deferred gain.
For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements;
−Removed: • 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: – A decrease in CAY catastrophe losses of $68, before tax.
+Added: Catastrophe losses in 2025 and 2024 included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions.
+Added: Losses and LAE Incurred for Employee Benefits
+Added: • A slight increase in Employee Benefits of $3, before tax, primarily driven by a higher loss ratio on short-term and long-term disability, largely offset by a lower group life loss ratio.
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:
+Added: • Higher technology costs, including increased investment;
• Higher staffing costs, largely in response to increased business volume;
−Removed: • Higher direct marketing costs in Personal Insurance;
• An increase in doubtful accounts expense partly due to higher business volume;
−Removed: • Higher commissions due to increased business volume and a slightly higher commission ratio due to mix of business.
−Removed: Income tax expense decreased primarily due to a decrease in income before tax.
+Added: • Higher commissions and taxes, licenses and fees due to increased business volume in P&C and a slightly higher commission ratio in Employee Benefits due to mix of business.
+Added: Income tax expense increased primarily due to an increase 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
+Added: June 30, 2025 compared to the six months ended June 30, 2024
+Added: Net income available to common stockholders increased by $134 primarily driven by:
+Added: • Higher net investment income of $125, 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: • A higher P&C underwriting gain of $94, before tax, driven by a lower underlying loss and LAE ratio in Personal Insurance, a higher level of favorable prior accident year reserve development, and the effect of earned premium growth, partially offset by higher CAY catastrophe losses, and a higher underlying loss and LAE ratio in Business Insurance;
+Added: • In Employee Benefits, the impact of a lower group life loss ratio, slightly higher fully insured ongoing premiums, and a lower loss ratio on paid family and medical leave products, was largely offset by the impact of a higher expense ratio, a higher long-term disability ratio, and a higher loss ratio on supplemental health products.
+Added: These increases were partially offset by:
+Added: • Greater net realized losses of $28, before tax
+Added: For a discussion of the Company's operating results by segment, see MD&A - Reportable Segment And Corporate Operating Summaries.
+Added: Earned Premiums
+Added: Earned premiums increased by $772, or 7%, primarily due to:
+Added: • An increase in P&C reflecting a 9% increase in Business Insurance and a 10% 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 1%, including an increase in exposure on existing accounts, fully insured ongoing sales, and persistency in excess of 90%.
+Added: Fee income increased, primarily due to a $13 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.
+Added: Net Investment Income
+Added: [1] Limited partnerships and other alternative investments of $32 and $52 for the six months ended June 30, 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: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: Net realized losses increased primarily due to:
+Added: • Lower appreciation in value of equity securities in the current year compared to the prior year;
+Added: • Losses on transactional foreign currency revaluation in the 2025 period compared to gains in the 2024 period;
+Added: • Depreciation in value of fixed maturities, at fair value using the fair value option (“FVO securities”) in the 2025 period compared to appreciation in the 2024 period due to changes in credit spreads.
+Added: These increases were partially offset by fewer net losses on sales of fixed maturities.
+Added: For further discussion of investment results, see MD&A - Investment Results, Net Realized Gains and MD&A - Investment Results, Net Investment Income.
+Added: Benefits, Losses and Expenses
+Added: Losses and LAE Incurred for P&C
+Added: Benefits, losses and loss adjustment expenses increased $440, due to:
+Added: • An increase in Property & Casualty of $444, which was attributable to:
+Added: – An increase in P&C CAY loss and LAE before catastrophes of $344, before tax, primarily due to the effect of higher earned premiums, partially offset by a lower underlying loss and LAE ratio in Personal Insurance;
+Added: – An increase in CAY catastrophe losses of $238, before tax.
+Added: Catastrophe losses in the 2025 period included $313, net of reinsurance, from the January 2025 California Wildfire Event, as well as losses from tornado, wind and hail events mainly in the South and Midwest regions.
+Added: Catastrophe losses in the 2024 period included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions, and, to a lesser extent, from winter storms, mainly in the Northeast, Pacific and South regions.
+Added: Losses and LAE Incurred for Employee Benefits
+Added: Partially offset by:
+Added: – A favorable change of $138, before tax, in P&C net prior accident year reserve development, with favorable development in the 2025 period of $309, compared to $171 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, catastrophes, homeowners, commercial property, bond, 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, catastrophes, bond, Personal Insurance automobile liability, and homeowners, partially offset by increases in reserves for general liability, assumed reinsurance, and Business Insurance automobile liability.
+Added: Also included within net prior accident year reserve development for the six months ended June 30, 2025 and 2024 was a benefit of $56 and $61, respectively, related to amortization of the Navigators ADC deferred gain.For further discussion, see Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.
+Added: • A slight decrease in Employee Benefits of $2, before tax, primarily driven by lower group life mortality, and a lower loss ratio on paid family and medical leave products, largely
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: offset by 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.
+Added: Insurance operating costs and other expenses increased due to:
+Added: • Higher staffing costs, largely in response to increased business volume;
+Added: • Higher technology costs, including increased investment;
+Added: • An increase in doubtful accounts expense partly due to higher business volume;
+Added: • Higher direct marketing costs in Personal Insurance;
+Added: • Higher commissions due to increased business volume and a slightly higher commission ratio in Employee Benefits due to mix of business.
+Added: Income tax expense increased primarily due to an increase in income before tax.
+Added: 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: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Amount Percent Amount Percent
Fixed maturities, AFS, at fair value $ 44,558 73.2 % $ 42,567 71.9 %
−Removed: Fixed maturities, at fair value using the fair value option ("FVO Securities") 280 0.5 % 308 0.5 %
+Added: FVO securities 181 0.3 % 308 0.5 %
Equity securities, at fair value 529 0.9 % 603 1.0 %
6 unchanged sentences
[1] Primarily consists of equity fund investments, overseas deposits, consolidated investment funds, and derivative instruments which are carried at fair value.
−Removed: March 31, 2025 compared to December 31, 2024
+Added: June 30, 2025 compared to December 31, 2024
Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value, partially offset by a decrease in short-term investments.
−Removed: 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: Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds and high-quality ABS, partially offset by net reductions to tax-exempt municipal bonds.
+Added: The increase was also due to higher valuations as a result of lower interest rates.
Short-term investments decreased primarily due to reallocation into fixed maturities, AFS.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Net Investment Income
−Removed: Three Months Ended March 31,
−Removed: (Before tax) Amount Yield [1] Amount Yield [1]
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
+Added: (Before tax) Amount Yield [1] Amount Yield [1] Amount Yield [1] Amount Yield [1]
Fixed maturities [2] $ 584 4.7 % $ 537 4.6 % $ 1,158 4.7 % $ 1,063 4.5 %
10 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.
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−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, partially offset by a lower yield on variable-rate securities.
−Removed: Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S.
−Removed: 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.
−Removed: Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S.
−Removed: 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.
+Added: Three and six months ended June 30, 2025 compared to three and six months ended June 30, 2024
+Added: Total net investment income increased primarily due to the impact of higher invested assets and reinvesting at higher interest rates, partially offset by a lower yield on variable-rate securities.
+Added: For the six month period, the increase also reflects greater income from limited partnerships and other alternative investments.
+Added: Annualized net investment income yield, excluding limited partnerships and other alternative investments, increased primarily due to the impact of reinvesting at higher rates, partially offset by a lower yield on variable-rate securities.
+Added: Average reinvestment rates, of fixed maturities and mortgage loans, excluding U.S.
+Added: Treasury securities, for the three and six months ended June 30, 2025, were 5.9% and 5.7%, respectively, which were above the average yield of sales and maturities of 4.6% and 4.7%, respectively.
+Added: Average reinvestment rates, of fixed maturities and mortgage loans, excluding U.S.
+Added: Treasury securities, for the three and six months ended June 30, 2024, were 6.4% and 6.2%, respectively, which were above the average yield of sales and maturities of 4.9% and 4.9%, respectively.
+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.
+Added: The estimated impact on annualized net investment income yield is subject to variability including the impact of evolving market conditions.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: 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.
−Removed: 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 March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
(Before tax) 2025 2024 2025 2024
5 unchanged sentences
Other, net [4] (20) (3) (48) (6)
−Removed: Net realized gains (losses) $ (49) $ 28
−Removed: [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: Net realized losses $ (10) $ (59) $ (59) $ (31)
+Added: [1] The change in net unrealized gains on equity securities still held as of June 30, 2025, and included in net realized gains were $34 and $21 for the three and six months ended June 30, 2025, respectively.
+Added: The change in net unrealized gains on equity securities still held as of June 30, 2024, and included in net realized gains were $15 and $44 for the three and six months ended June 30, 2024, respectively.
[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.
[3] See ACL on Mortgage Loans within the Enterprise Risk Management — Investment Portfolio Risk section of this MD&A.
−Removed: [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.
−Removed: Three months ended March 31, 2025
+Added: [4] For the three and six months ended June 30, 2025, includes losses from transactional foreign currency revaluation of $8 and $18, respectively, and losses on non-qualifying derivatives of $11 and $11, respectively.
+Added: For the three and six months ended June 30, 2024, includes gains from transactional foreign currency revaluation of $4 and $6, respectively, and losses on non-qualifying derivatives of $6 and $8, respectively.
+Added: Three and six months ended June 30, 2025
Gross gains and losses on sales were primarily due to sales of tax-exempt municipals and corporate securities.
−Removed: Equity securities net losses were primarily driven by a decrease in value due to lower equity market levels.
−Removed: Other, net includes losses of $10 on transactional foreign currency revaluation and $7 related to a mortgage loan modification.
−Removed: Three months ended March 31, 2024
−Removed: 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 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.
−Removed: 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.
+Added: Other, net losses for the three and six month periods ended June 30, 2025, primarily included losses of $8 and $18, respectively, on transactional foreign currency revaluation, losses of $13 and $17, respectively, on FVO securities due to a decrease in value, and losses of $10 and $9, respectively, on equity derivatives due to higher equity market levels.
+Added: Three and six months ended June 30, 2024
+Added: Gross gains and losses on sales were primarily due to sales of U.S.
+Added: Treasuries, corporate securities, and tax-exempt municipals to fund purchases of higher-yielding investments.
+Added: Equity securities net gains were primarily driven by an increase in value due to higher equity market levels.
+Added: Other, net losses for the three and six month periods ended June 30, 2024, primarily included losses of $6 and $3, respectively, on interest rate derivatives driven by changes in interest rates, and gains of $4 and $6, respectively, on transactional foreign currency revaluation.
+Added: Also included for the six-month period ended June 30, 2024, were losses of $5 on equity derivatives due to higher equity market levels.
Index to MD&A
16 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 March 31, 2025.
+Added: The following discussion updates certain of the Company’s critical accounting estimates as of June 30, 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 March 31, 2025
+Added: P&C Loss and Loss Adjustment Expense Reserves, Net of Reinsurance, by Segment as of June 30, 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 Three Months Ended March 31, 2025
+Added: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Six Months Ended June 30, 2025
Business Insurance
21 unchanged sentences
Current Accident Year Catastrophe Losses, Net of Reinsurance
−Removed: Three Months Ended March 31, 2025
+Added: Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Business Insurance Personal
+Added: Insurance Total Business Insurance Personal
Insurance Total [1]
−Removed: Wildfires [1] $ 153 $ 118 $ 271
Wind and hail $ 101 $ 101 $ 202 $ 145 $ 162 $ 307
+Added: Wildfires [1] (8) (4) (12) 145 114 259
Winter storms (2) 1 (1) 15 9 24
2 unchanged sentences
Total catastrophe losses $ 114 $ 98 $ 212 $ 394 $ 285 $ 679
−Removed: [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: [1] The three months ended June 30, 2025, included a favorable change in losses of ($12), net of reinsurance, from the January 2025 California Wildfire Event.
+Added: For the six months ended June 30, 2025, catastrophe losses from the January 2025 California Wildfire Event were $313, net of reinsurance, and included losses of $54 in the global assumed reinsurance business.
[2] Catastrophe losses incurred on global assumed reinsurance business are not covered under the Company's per occurrence and aggregate property catastrophe treaties.
4 unchanged sentences
Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Three Months Ended March 31, 2025
+Added: Three Months Ended June 30, 2025
Business Insurance Personal
7 unchanged sentences
Professional liability (11) — — (11)
+Added: Bond (22) — — (22)
Assumed reinsurance — — — —
6 unchanged sentences
Prior accident year development before change in deferred gain
+Added: (122) (41) — (163)
Change in deferred gain on retroactive reinsurance included in other liabilities [2] (24) — — (24)
Total prior accident year development
−Removed: [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.
−Removed: [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.
−Removed: 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.
+Added: $ (146) $ (41) $ — $ (187)
+Added: [1] Other reserve re-estimates, net for the three months ended June 30, 2025 includes a favorable change of $(8) in personal automobile physical damage reserves.
+Added: [2] The $24 change in deferred gain on retroactive reinsurance for the three months ended June 30, 2025 is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
+Added: Unfavorable (Favorable) Prior Accident Year Development for the
+Added: Six Months Ended June 30, 2025
+Added: Business Insurance Personal
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty Insurance
+Added: Workers’ compensation $ (126) $ — $ — $ (126)
+Added: Workers’ compensation discount accretion 23 — — 23
+Added: General liability — — — —
+Added: Marine — — — —
+Added: Package business — — — —
+Added: Commercial property (23) — — (23)
+Added: Professional liability (11) — — (11)
+Added: Bond (22) — — (22)
+Added: Assumed reinsurance — — — —
+Added: Automobile liability — (22) — (22)
+Added: Homeowners — (31) — (31)
+Added: Net A&E reserves — — — —
+Added: Catastrophes (28) (11) — (39)
+Added: Uncollectible reinsurance — — — —
+Added: Other reserve re-estimates, net [1] 14 (16) — (2)
+Added: Prior accident year development before change in deferred gain (173) (80) — (253)
+Added: Change in deferred gain on retroactive reinsurance included in other liabilities [2] (56) — — (56)
+Added: Total prior accident year development $ (229) $ (80) $ — $ (309)
+Added: [1] Other reserve re-estimates, net for the six months ended June 30, 2025 includes a favorable change of $(20) in personal automobile physical damage reserves.
+Added: [2] The $56 change in deferred gain on retroactive reinsurance for the six months ended June 30, 2025 is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
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 Three Months Ended March 31, 2024
+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.
+Added: Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Six Months Ended June 30, 2024
Business Insurance Personal
21 unchanged sentences
Current Accident Year Catastrophe Losses, Net of Reinsurance
−Removed: Three Months Ended March 31, 2024
+Added: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024
Business Insurance Personal
+Added: Insurance Total Business Insurance Personal
Insurance Total
1 unchanged sentence
Winter storms 3 — 3 55 14 69
+Added: Wildfires 1 10 11 1 10 11
+Added: Other international 4 — 4 4 — 4
Catastrophes before assumed reinsurance 138 125 263 232 177 409
7 unchanged sentences
Unfavorable (Favorable) Prior Accident Year Development for the
−Removed: Three Months Ended March 31, 2024
+Added: Three Months Ended June 30, 2024
Business Insurance Personal
7 unchanged sentences
Professional liability (2) — — (2)
+Added: Bond (22) — — (22)
Assumed reinsurance 15 — — 15
8 unchanged sentences
Total prior accident year development
−Removed: [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.
−Removed: 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.
+Added: $ (81) $ (34) $ — $ (115)
+Added: [1] Other reserve re-estimates, net for the three months ended June 30, 2024 includes a favorable change of $(7) in personal automobile physical damage reserves.
+Added: [2] The $37 change in deferred gain on retroactive reinsurance for the three months ended June 30, 2024, is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
+Added: Unfavorable (Favorable) Prior Accident Year Development for the
+Added: Six Months Ended June 30, 2024
+Added: Business Insurance Personal
+Added: Insurance Property & Casualty Other Operations Total Property & Casualty Insurance
+Added: Workers’ compensation $ (119) $ — $ — $ (119)
+Added: Workers’ compensation discount accretion 23 — — 23
+Added: General liability 49 — — 49
+Added: Marine (1) — — (1)
+Added: Package business (1) — — (1)
+Added: Commercial property (5) — — (5)
+Added: Professional liability (7) — — (7)
+Added: Bond (22) — — (22)
+Added: Assumed reinsurance 24 — — 24
+Added: Automobile liability 10 (13) — (3)
+Added: Homeowners — (10) — (10)
+Added: Net A&E reserves — — — —
+Added: Catastrophes (33) (5) — (38)
+Added: Uncollectible reinsurance (7) — 7 —
+Added: Other reserve re-estimates, net [1] 13 (13) — —
+Added: Prior accident year development before change in deferred gain (76) (41) 7 (110)
+Added: Change in deferred gain on retroactive reinsurance included in other liabilities [1] (61) — — (61)
+Added: Total prior accident year development $ (137) $ (41) $ 7 $ (171)
+Added: [1] Other reserve re-estimates, net for the six months ended June 30, 2024 includes a favorable change of $(14) in personal automobile physical damage reserves.
+Added: [2] The $61 change in deferred gain on retroactive reinsurance for the six months ended June 30, 2024 is related to amortization of the Navigators ADC deferred gain under retroactive reinsurance accounting.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
+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.
Reportable Segment And Corporate Operating Summaries
1 unchanged sentence
Underwriting Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Written premiums $ 3,816 $ 3,540 8 % $ 7,502 $ 6,902 9 %
13 unchanged sentences
Net investment income [2] 449 402 12 % 886 793 12 %
−Removed: Net realized gains (losses) [2] (24) 12 NM
−Removed: Other expense [3] (1) (2) 50 %
+Added: Net realized losses [2] (20) (50) 60 % (44) (38) (16) %
+Added: Other income (expense) [3] (1) (1) — % (2) (3) 33 %
Income before income taxes 872 670 30 % 1,471 1,372 7 %
9 unchanged sentences
Premium Measures
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
Small Business:
4 unchanged sentences
Policies in-force as of end of period (in thousands) 1,615 1,537
−Removed: Middle and Large Business [1]:
+Added: Middle Market [1]:
Net new business premium $ 190 $ 187 $ 378 $ 361
10 unchanged sentences
Underwriting Ratios
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Loss and loss adjustment expense ratio 56.1 58.4 (2.3) 59.4 58.4 1.0
16 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net income for the three and six months ended June 30, 2025 increased primarily due to a higher underwriting gain, higher net investment income, and for the three month period, lower net realized losses.
For further discussion of investment results, see MD&A - Investment Results.
Underwriting Gain
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: Expense ratio improved modestly as the impact of higher earned premium was partially offset by a slightly higher commission ratio due to business mix.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Underwriting gain for the three and six months ended June 30, 2025 increased due to the effect of earned premium growth, higher favorable prior accident year development, and for the three month period, lower CAY catastrophe losses.
+Added: These favorable impacts were partially offset by a higher underlying loss and LAE ratio, and for the six month period, higher CAY catastrophe losses.
+Added: Expense ratio for the three and six months ended June 30, 2025 improved modestly as the impact of higher earned premium was partially offset by increased technology costs, including increased investment .
Index to MD&A
2 unchanged sentences
Earned Premiums
−Removed: [1] Other earned premiums of $15 and $16 for the three months ended March 31, 2024, and 2025, respectively.
+Added: [1] Other earned premiums of $14 and $16 for the three months ended June 30, 2024, and 2025, respectively and $29 and $32, for the six months ended June 30, 2024 and 2025, respectively.
Written Premiums
−Removed: [1] Other written premiums of $14 and $16 for the three months ended March 31, 2024, and 2025, respectively.
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Earned premiums increased due to written premium increases over the prior twelve months.
−Removed: Written premiums increased driven by growth across small business, middle & large business and global specialty.
−Removed: • Small business written premium increased driven by double-digit new business growth and renewal written price increases in almost all lines.
+Added: [1] Other written premiums of $14 and $16 for the three months ended June 30, 2024, and 2025, respectively and $28 and $32, for the six months ended June 30, 2024 and 2025, respectively.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Earned premiums for the three and six months ended June 30, 2025 increased due to written premium increases over the prior twelve months.
+Added: Written premiums for the three and six months ended June 30, 2025 increased driven by growth across small business, middle & large business and global specialty.
+Added: • Small business written premium increased driven by renewal written price increases in almost all lines, as well as mid single-digit and high single-digit new business growth for the three and six month periods, respectively.
Written premium grew in nearly all lines of business, including package business, excess and surplus and automobile.
−Removed: • Middle & large business written premium increased driven by high single-digit new business growth and renewal written price increases in all lines.
−Removed: Written premium grew in nearly all lines across industry verticals, specialty markets, 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 U.S.
+Added: • Middle & large business written premium increased driven by renewal written price increases in almost all lines and, for the six month period, mid single-digit new business growth.
+Added: Written premium rose across most industry verticals and the large and complex lines.
+Added: • Global specialty written premium increased driven by written price increases across most lines as well as an increase in gross new business, primarily in U.S.
excess casualty insurance lines.
−Removed: Written premiums also grew in global reinsurance, primarily in property, credit risk and casualty.
−Removed: Renewal written price increases were recognized in most lines.
−Removed: • 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: Written premiums also grew in global reinsurance, primarily in property, casualty and credit risk.
+Added: Renewal written price increases were recognized in most lines for both the three and six months ended June 30, 2025.
+Added: • In small business, renewal written price increases were lower than prior year levels overall, with mid single-digit to low double-digit price increases across most lines.
Workers' compensation pricing was slightly negative.
−Removed: • 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.
−Removed: Liability pricing has accelerated and property pricing has moderated from 2024 levels.
−Removed: Workers’ compensation continued to be modestly positive.
−Removed: • 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.
+Added: • In middle market, renewal written price increases were lower than prior year levels overall, with mid single-digit to low double-digit price increases in most lines.
+Added: Workers' compensation pricing turned slightly negative.
+Added: • In global specialty, renewal written price increases were lower than prior year levels with mid single-digit price increases overall.
Index to MD&A
2 unchanged sentences
Underlying Loss and Loss Adjustment Expense Ratio
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Underlying Loss and Loss Adjustment Expense Ratio for the three and six months ended June 30, 2025 increased due to a higher general liability loss ratio, reflecting the increased severity trends observed beginning in the second half of 2024, and workers' compensation margin compression.
Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: 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.
−Removed: Prior accident year development was net favorable for the three months ended March 31, 2025 and primarily included reserve decreases for workers' compensation.
−Removed: Also included is a benefit of $32 related to amortization of the Navigators ADC deferred gain.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Current accident year catastrophe losses decreased for the three month period and increased for the six month period.
+Added: CAY catastrophe losses for the three months ended June 30, 2025 included losses from tornado, wind and hail events across several regions, but concentrated in the Midwest and South regions.
+Added: CAY catastrophe losses for the six months ended June 30, 2025 included a loss of $199, net of reinsurance, from the January 2025 California Wildfire Event, as well as losses from tornado, wind and hail events primarily in the Midwest and South regions.
+Added: Current accident year catastrophe losses for the three and six months ended June 30, 2024 included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions, and for the six month period, winter storms primarily in the Northeast, Pacific and South regions.
+Added: Prior accident year development was net favorable for the three and six months ended June 30, 2025, and primarily included reserve decreases for workers' compensation, catastrophes, commercial property and bond.
+Added: Also included are benefits of $24 and $56 related to amortization of the Navigators ADC deferred gain for the three and six month periods, 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.
−Removed: 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.
−Removed: Also included is a benefit of $24 related to amortization of the Navigators ADC deferred gain.
+Added: Prior accident year development was net favorable for the three and six months ended June 30, 2024 and included reserve decreases for workers' compensation, catastrophes and bond, partially offset by reserve increases for general liability, assumed reinsurance and automobile liability.
+Added: Also included are benefits of $37 and $61 related to amortization of the Navigators ADC deferred gain for the three and six month periods, respectively.
Index to MD&A
3 unchanged sentences
Underwriting Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Written premiums $ 980 $ 913 7 % $ 1,893 $ 1,757 8 %
4 unchanged sentences
Current accident year before catastrophes 585 597 (2 %) 1,148 1,172 (2) %
−Removed: Current accident year catastrophes [1] 187 52 NM
−Removed: Prior accident year development [1] (39) (7) NM
+Added: Current accident year catastrophes [1] 98 125 (22 %) 285 177 61 %
+Added: Prior accident year development [1] (41) (34) (21 %) (80) (41) (95) %
Total losses and loss adjustment expenses 642 688 (7 %) 1,353 1,308 3 %
2 unchanged sentences
Amortization of other intangible assets — — — % 1 1 — %
−Removed: Underwriting loss (55) (13) NM
+Added: Underwriting gain (loss) 55 (63) 187 % — (76) 100 %
Net investment income [2] 58 50 16 % 115 100 15 %
−Removed: Net realized gains (losses) [2] (2) 1 NM
+Added: Net realized losses [2] (4) (8) 50 % (6) (7) 14 %
Net servicing and other income (expense) [3] 5 6 (17 %) 10 10 — %
−Removed: Income before income taxes 5 42 (88) %
−Removed: Income tax expense [4] — 8 (100) %
−Removed: Net income $ 5 $ 34 (85) %
+Added: Income (loss) before income taxes 114 (15) NM 119 27 NM
+Added: Income tax expense (benefit) [4] 23 (4) NM 23 4 NM
+Added: Net income (loss) $ 91 $ (11) NM $ 96 $ 23 NM
[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 $20 and $19 for the three months ended March 31, 2025 and 2024, respectively.
−Removed: Includes servicing expenses of $16 and $15 for the three months ended March 31, 2025 and 2024, respectively.
+Added: [3] Includes servicing revenues of $24 and $25 for the three months ended June 30, 2025 and 2024, respectively, and $44 and $44 for the six months ended June 30, 2025 and 2024, respectively.
+Added: Includes servicing expenses of $19 and $18 for the three months ended June 30, 2025 and 2024, respectively, and $35 and $33 for the six months ended June 30, 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 March 31,
−Removed: Written Premiums 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: Written Premiums 2025 2024 Change 2025 2024 Change
Automobile $ 633 $ 617 3 % $ 1,260 $ 1,217 4 %
9 unchanged sentences
Premium Measures
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
Premium Measures 2025 2024 2025 2024
15 unchanged sentences
Underwriting Ratios
−Removed: Three Months Ended March 31,
−Removed: Underwriting Ratios 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: Underwriting Ratios 2025 2024 Change 2025 2024 Change
Loss and loss adjustment expense ratio 69.0 81.0 (12.0) 73.9 78.7 (4.8)
16 unchanged sentences
Product Combined Ratios
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Combined ratio 94.0 105.4 (11.4) 93.8 104.7 (10.9)
8 unchanged sentences
Underlying combined ratio 72.7 77.8 (5.1) 73.9 77.4 (3.5)
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Net Income decreased, largely driven by lower underwriting results.
−Removed: Underwriting loss
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: Expense ratio increased primarily due to higher direct marketing costs and, to a lesser extent, a higher commission ratio due to business mix .
+Added: Net income (loss)
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net income of $91 for the three months ended June 30, 2025 improved from a loss in the prior year period, and increased for the six months ended June 30, 2025, largely driven by improved underwriting results and, to a lesser extent, from an increase in net investment income.
+Added: Underwriting gain (loss)
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Underwriting gain for the three and six months ended June 30, 2025 changed from an underwriting loss primarily due to the effect of an increase in earned premium due to renewal price increases and greater favorable prior accident year development.
+Added: Current accident year catastrophe losses were lower for the three month period and higher for the six month period.
+Added: Expense ratio for the three months ended June 30, 2025 decreased primarily due to the effect of an increase in earned premium due to renewal written price increases, partially offset by a higher commission ratio due to business mix.
+Added: The expense ratio for the six months ended June 30, 2025 increased slightly due to a higher commission ratio due to business mix, partially offset by the effect of an increase in earned premium due to renewal written price increases.
Index to MD&A
3 unchanged sentences
Written Premiums
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Earned premiums increased in 2025 due to higher written premium over the prior twelve months in both automobile and homeowners.
−Removed: 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.
−Removed: Renewal written pricing increases moderated for both automobile and homeowners in 2025, primarily in response to moderating loss cost trends.
−Removed: Effective Policy count retention was stable both for automobile and homeowners in 2025, in response to moderating renewal written pricing increases.
−Removed: 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: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Earned premiums increased in both the three and six months ended June 30, 2025 due to higher written premium over the prior twelve months in both automobile and homeowners.
+Added: Written premiums increased in both the three and six months ended June 30, 2025 driven by the effect of written pricing increases and by an increase in new business premium in homeowners in both the three month and six month periods.
+Added: Renewal written pricing moderated for both automobile and homeowners in both the three and six months ended June 30, 2025, primarily in response to moderating loss cost trends.
+Added: Effective Policy count retention was relatively stable both for automobile and homeowners in both the three and six months ended June 30, 2025, in response to moderating renewal written pricing increases.
+Added: Policies in-force as of June 30, 2025 compared to June 30, 2024 declined for automobile and increased for homeowners, reflecting the level of new business in relation to non-renewed policies.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Underlying Loss and Loss Adjustment Expense Ratio
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Underlying loss and LAE ratio decreased in both automobile and homeowners in 2025.
−Removed: 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 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 underlying loss and LAE ratio was primarily due to the impact of earned pricing increases, partially offset by higher claim severities.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Underlying loss and LAE ratio decreased in both automobile and homeowners in both the three and six months ended June 30, 2025.
+Added: The decrease in automobile was primarily due to the impact of earned pricing increases, partially offset by higher loss costs.
+Added: The higher loss costs in automobile were driven by higher physical damage and liability claim severities, partially offset by lower physical damage claim frequency.
+Added: The automobile claim severity trend has moderated from the prior year.
+Added: The automobile liability severity trend continues to recognize the inflationary effects and higher attorney representation rates on bodily injury claims.
+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, while the rate of change in severity declined from a year ago.
Contributing to the higher homeowners severity was the effect of higher rebuilding costs.
+Added: Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Current accident year catastrophe losses decreased in the three month period and increased in the six month period.
+Added: CAY catastrophe losses for the three months ended June 30, 2025 included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions.
+Added: CAY catastrophe losses for the six months ended June 30, 2025 included a loss of $114, net of reinsurance, from the January 2025 California Wildfire Event, as well as losses from tornado, wind and hail events primarily in the South and Midwest regions.
+Added: CAY catastrophe losses for 2024 included 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 both the three and six months ended June 30, 2025, primarily driven by lower estimated severity on homeowners, automobile physical damage, automobile liability, and catastrophes.
+Added: Prior accident year development was favorable for the three and six months ended June 30, 2024, primarily driven by lower estimated severity on automobile physical damage, automobile liability, and homeowners.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Current accident year catastrophe losses increased for the three months ended March 31, 2025, compared to the prior year.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Prior accident year development was favorable for the three months ended March 31, 2024, primarily driven by improved severity on automobile physical damage.
Property & Casualty Other Operations - Results of Operations
Underwriting Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Losses and loss adjustment expenses
4 unchanged sentences
Net investment income [2] 19 19 — % 37 37 — %
+Added: Net realized losses [2] (2) (3) 33 % (2) (3) 33 %
Income before income taxes 15 14 7 % 31 23 35 %
−Removed: Income tax expense [3] 3 1 NM
+Added: Income tax expense [3] 2 3 (33 %) 5 4 25 %
Net income $ 13 $ 11 18 % $ 26 $ 19 37 %
2 unchanged sentences
[3] For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: Net income increased due to a lower underwriting loss.
−Removed: Underwriting loss decreased due to unfavorable prior accident year reserve development in the 2024 period.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net income increased slightly in the three months ended June 30, 2025, due to a decrease in net realized losses.
+Added: Net income increased in the six months ended June 30, 2025, primarily due to a lower underwriting loss.
+Added: Underwriting loss remained unchanged for the three months ended June 30, 2025, and decreased for the six months ended June 30, 2025 due to unfavorable prior accident year reserve development in the 2024 period.
Index to MD&A
3 unchanged sentences
Operating Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Premiums and other considerations $ 1,663 $ 1,665 — % $ 3,331 $ 3,304 1 %
Net investment income [1] 118 112 5 % 244 226 8 %
−Removed: Net realized gains (losses) [1] (4) 1 NM
+Added: Net realized losses [1] (16) (9) (78 %) (20) (8) (150) %
Total revenues 1,765 1,768 — % 3,555 3,522 1 %
10 unchanged sentences
Premiums and Other Considerations
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Fully insured – ongoing premiums $ 1,602 $ 1,607 — % $ 3,214 $ 3,192 1 %
−Removed: Buyout premiums — — — %
+Added: Buyout premiums 4 1 NM 4 1 NM
Fee income 57 57 — % 113 111 2 %
2 unchanged sentences
Ratios, Excluding Buyouts
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Group disability loss ratio 68.5 % 67.1 % 1.4 68.8 % 68.6 % 0.2
2 unchanged sentences
Expense ratio 25.7 % 24.4 % 1.3 25.5 % 24.9 % 0.6
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Net income margin 8.5 % 9.7 % (1.2) 8.0 % 7.9 % 0.1
Adjustments to reconcile net income margin to core earnings margin:
−Removed: Net realized gains (losses), before tax 0.3 % (0.1 %) 0.4
+Added: Net realized losses, before tax 0.8 % 0.4 % 0.4 0.5 % 0.3 % 0.2
Income tax benefit (0.1 %) (0.1 %) — (0.1 %) (0.1 %) —
3 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: Insurance operating costs and other expenses were higher prim arily due to the effect of an increase in fully insured ongoing premium.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net income decreased for the three months ended June 30, 2025 primarily due to an increase in the expense ratio as well as a higher group disability loss ratio, partially offset by a lower group life loss ratio.
+Added: For the six months ended June 30, 2025, net income increased primarily due to a lower group life loss ratio, higher fully insured ongoing premiums, and higher net investment income, partially offset by an increase in the expense ratio.
+Added: Insurance operating costs and other expenses were higher for both the three and six month periods due to higher technology costs, including increased investment, as well as higher commissions and staffing costs.
Fully Insured Ongoing Premiums
−Removed: [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.
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: 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.
+Added: [1] Other of $107 and $120 for the three months ended June 30, 2024 and 2025 respectively, and $211 and $238 for the six months ended June 30, 2024 and 2025, respectively which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Fully insured ongoing premiums remained flat for the three months ended June 30, 2025, as an increase in exposure on existing accounts was offset by lower sales during the past year.
+Added: For the six-month period, premiums increased over prior year and included an increase in exposure on existing accounts and persistency in excess of 90%, though slightly below the prior year.
+Added: Fully insured ongoing sales increased for the three months ended June 30, 2025 driven by higher group disability sales.
+Added: For the six-month period, sales decreased compared to prior year driven by lower sales of 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 months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
−Removed: The group life loss ratio decreased 2.7 points driven by a lower level of mortality.
−Removed: 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.
−Removed: 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.
−Removed: Expense ratio is flat compared to prior year with expenses increasing due to the effect of an increase in fully insured premium.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Loss ratio remained relatively flat for the three months ended June 30, 2025 compa red to the prior year period.
+Added: The group life loss ratio decreased 0.6 points due to lower mortality primarily driven by the accidental death product.
+Added: The group disability loss ratio increased 1.4 points driven by higher short-term disability claim incidence as well as a slight increase in long-term disability incidence, partially offset by strong claim recoveries.
+Added: The loss ratio improved 0.6 points in the six months ended June 30, 2025 compa red to the prior year period reflecting a lower group life loss ratio.
+Added: The group life loss ratio decreased 1.6 points driven by a lower level of mortality within both our term and accidental life products.
+Added: Group disability loss ratio remained relatively flat compared to prior year driven by paid family and medical leave pricing actions offset by a slight increase in long-term disability incidence.
+Added: Expense ratio increased for the three and six months ended June 30, 2025 primarily due to higher technology costs, including increased investment, as well as the impact of higher staffing costs.
Hartford Funds - Results of Operations
Operating Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Fee income and other revenue $ 256 $ 253 1 % $ 516 $ 503 3 %
Net investment income 6 5 20 % 10 9 11 %
−Removed: Net realized gains — 5 (100) %
+Added: Net realized gains 9 3 NM 9 8 13 %
Total revenues 271 261 4 % 535 520 3 %
15 unchanged sentences
Hartford Funds Segment AUM
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Mutual Fund and ETF AUM - beginning of period $ 127,219 $ 123,559 3 % $ 128,054 $ 119,316 7 %
3 unchanged sentences
Net flows - Mutual Fund and ETF (1,515) (1,085) (40 %) (2,947) (3,596) 18 %
−Removed: Change in market value and other 597 6,754 (91) %
+Added: Change in market value and other 8,586 1,212 NM 9,183 7,966 15 %
Mutual Fund and ETF AUM - end of period 134,290 123,686 9 % 134,290 123,686 9 %
2 unchanged sentences
Mutual Fund and ETF AUM by Asset Class
−Removed: As of March 31,
+Added: As of June 30,
2025 2024 Change
6 unchanged sentences
[1]Includes balanced, allocation and alternative investment products.
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net income increased for the three and six months ended June 30, 2025, primarily due to an increase in fee income net of operating costs and other expenses driven by higher daily average AUM and an increase in net realized gains.
Hartford Funds AUM
−Removed: March 31, 2025 compared to March 31, 2024
−Removed: Hartford Funds AUM increased primarily due to an increase in equity market values, partially offset by net outflows over the preceding twelve month periods.
−Removed: 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.
+Added: June 30, 2025 compared to June 30, 2024
+Added: Hartford Funds AUM increased primarily due to an increase in equity market levels, partially offset by net outflows over the preceding twelve month periods.
+Added: Net outflows were $1.5 billion and $2.9 billion, respectively, for the three and six months ended June 30, 2025 compared to net outflows of $1.1 billion and $3.6 billion, respectively for the three and six months ended June 30, 2024.
Index to MD&A
3 unchanged sentences
Operating Summary
−Removed: Three Months Ended March 31,
−Removed: 2025 2024 Change
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 Change 2025 2024 Change
Fee income [1] $ 10 $ 10 — % $ 21 $ 20 5 %
−Removed: Other revenue 1 — NM
+Added: Other revenue 5 1 NM 6 1 NM
Net investment income [2] 14 14 — % 28 30 (7) %
−Removed: Net realized gains (losses) [2] (19) 9 NM
−Removed: Total revenues (losses) 7 35 (80) %
+Added: Net realized gains [2] 23 8 188 % 4 17 (76) %
+Added: Total revenues 52 33 58 % 59 68 (13) %
Benefits, losses and loss adjustment expenses [3] — 2 (100 %) 2 4 (50) %
8 unchanged sentences
Net loss available to common stockholders $ (14) $ (22) 36 % $ (60) $ (42) (43) %
−Removed: [1]Includes investment management fees and expenses related to managing third-party business.
+Added: [1]Includes investment management fees and expenses related to managing third-party assets.
[2] For discussion of consolidated investment results, see MD&A - Investment Results.
3 unchanged sentences
Net loss available to common stockholders
−Removed: Three months ended March 31, 2025 compared to the three months ended March 31, 2024
−Removed: 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.
+Added: Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024
+Added: Net loss available to common stockholders decreased for the three months ended June 30, 2025, primarily due to an increase in net realized gains.
+Added: Net loss available to common stockholders increased for the six months ended June 30, 2025, due to lower net realized gains and a lower tax benefit related to the vesting of stock-based compensation awards in the six month period.
Index to MD&A
52 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: Primary Catastrophe Treaty Reinsurance Coverages as of March 31, 2025 [1]
+Added: Primary Catastrophe Treaty Reinsurance Coverages as of June 30, 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, and will renew for the annual period starting June 1, 2025.
+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, 2025.
Retention and coverage varies by writing company.
−Removed: 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: For the 2025 - 2026 period, the writing company with the largest coverage under FHCF is Hartford Insurance Company of the Midwest, with coverage of $37 in per event losses in excess of a $23 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).
23 unchanged sentences
respectively, there is no remaining limit available under either agreement as of December 31, 2024.
−Removed: 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.
−Removed: 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.
+Added: During the six months ended June 30, 2025 and 2024, the Company collected recoveries from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., under the Navigators ADC and as a result amortized $56 and $61 of the deferred gain within benefits, losses and loss adjustment expenses in the Condensed Consolidated Statements of Operations.
+Added: As of June 30, 2025 and December 31, 2024, the deferred gain on the Navigators ADC was $8 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.
57 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 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.
+Added: As of June 30, 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.
48 unchanged sentences
In addition, investments in limited partnerships and other alternative investments generally have a level of correlation to domestic equity market levels and can expose the Company to losses in earnings if valuations decline;
−Removed: however, earnings impacts are recognized on a lag as results from private equity investments and other funds are generally reported on a three-month delay.
+Added: however, earnings impacts are recognized on a lag as results from private equity investments and other funds are generally reported on a
+Added: three-month delay.
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.
1 unchanged sentence
and other equity markets.
−Removed: Generally, declines in equity markets will reduce the
−Removed: value of average daily AUM and the amount of fee income generated from those assets.
+Added: Generally, declines in equity markets will reduce the 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.
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Investment Portfolio Risk
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
−Removed: from a rating agency, then an internally developed rating is used.
+Added: If no rating is available 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.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Fixed Maturities, AFS by Type
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 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
21 unchanged sentences
Tax-exempt 3,409 — 40 (280) 3,169 7.1 % 4,190 — 71 (221) 4,040 9.5 %
+Added: Residential Mortgage-Backed Securities ("RMBS")
Agency 3,078 — 16 (179) 2,915 6.6 % 3,002 — 7 (225) 2,784 6.5 %
5 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, 2024, primarily due to net additions of corporate
−Removed: bonds, high-quality ABS and RMBS, partially offset by net reductions to tax-exempt municipal bonds.
+Added: The fair value of fixed maturities, AFS increased as compared to December 31, 2024, primarily due to net additions of corporate bonds and high-quality ABS, partially offset by net reductions to
+Added: tax-exempt municipal bonds.
+Added: The increase was also due to higher valuations as a result of lower interest rates.
Index to MD&A
2 unchanged sentences
Fixed Maturities, AFS by Credit Quality
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value
9 unchanged sentences
Commercial & Residential Real Estate
−Removed: Exposure to CMBS & RMBS Bonds by Credit Quality as of March 31, 2025
+Added: Exposure to CMBS & RMBS Bonds by Credit Quality as of June 30, 2025
AAA AA A BBB BB and Below Total
29 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 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.
+Added: As of June 30, 2025, mortgage loans had an amortized cost of $6.5 billion and carrying value of $6.5 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 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.
+Added: The Company funded $485 of commercial mortgage loans, primarily industrial and multifamily properties, with a weighted average loan-to-value (“ LTV ”) ratio of 57% and a weighted average yield of 6.6% during the six months ended June 30, 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 March 31, 2025, or December 31, 2024.
+Added: There were no mortgage loans held for sale as of June 30, 2025, or December 31, 2024.
Municipal Bonds
Available-For-Sale Investments in Municipal Bonds
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Amortized Cost Fair Value Weighted Average Credit Quality Amortized Cost Fair Value Weighted Average Credit Quality
6 unchanged sentences
Water & Sewer 296 269 AA 308 289 AA
−Removed: Power 210 200 A+ 281 272 A
Housing 185 175 AA 195 185 AA
+Added: Power 174 160 A+ 281 272 A
Sales Tax 166 159 AA 183 183 AA
−Removed: Other 437 406 AA- 461 434 AA-
+Added: Other 414 382 A+ 461 434 AA-
Total Revenue 3,998 3,692 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 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.
+Added: As of June 30, 2025, the largest issuer concentrations were the State of California, the State of Illinois, and CommonSpirit Health, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds.
+Added: As of December 31, 2024, the largest issuer concentrations were the State of Illinois, the State of California, 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.
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
−Removed: 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 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.
4 unchanged sentences
Limited Partnerships and Other Alternative Investments - Net Investment Income
−Removed: Three Months Ended March 31,
−Removed: Amount Yield [1] Amount Yield [1]
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
+Added: Amount Yield [1] Amount Yield [1] Amount Yield [1] Amount Yield [1]
Real estate joint ventures and funds $ (14) (3.1 %) $ (34) (7.2 %) $ (22) (2.4 %) $ (66) (6.7 %)
6 unchanged sentences
Investments in Limited Partnerships and Other Alternative Investments
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Amount Percent Amount Percent
6 unchanged sentences
Fixed Maturities, AFS — Unrealized Loss Aging
−Removed: 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.
−Removed: 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.
+Added: The total gross unrealized losses were $1.8 billion as of June 30, 2025, and have decreased $453 since December 31, 2024, primarily due to lower interest rates.
+Added: As of June 30, 2025, $1.3 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%.
6 unchanged sentences
Unrealized Loss Aging for Fixed Maturities, AFS Securities
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Consecutive Months Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
9 unchanged sentences
Unrealized Loss Aging for Fixed Maturities, AFS Continuously Depressed Over 20%
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Consecutive Months Items Amortized Cost ACL Unrealized Loss Fair Value Items Amortized Cost ACL Unrealized Loss Fair Value
6 unchanged sentences
Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments
−Removed: Three months ended March 31, 2025
−Removed: 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.
−Removed: There were no unrealized losses on securities with an ACL recognized in other comprehensive income ("OCI").
+Added: Three and six months ended June 30, 2025
+Added: For the three months ended June 30, 2025, the Company recorded no credit losses.
+Added: For the six months ended June 30, 2025, 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: For the three and six months ended June 30, 2025, 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 months ended March 31, 2024
−Removed: The Company recorded net credit losses of $1 primarily attributable to one below investment grade corporate issuer.
−Removed: There were no unrealized losses on securities with an ACL recognized in OCI.
+Added: Three and six months ended June 30, 2024
+Added: For the three and six months ended June 30, 2024, the Company recorded net credit losses of $1 and $2, respectively.
+Added: Net credit losses were primarily attributable to increases in the ACL of $1 in both periods on CMBS, in addition for the six month period, net credit losses of $1 primarily attributable to one below investment grade corporate issuer.
+Added: Unrealized losses on securities with an ACL recognized in OCI were less than $1.
There were no intent-to-sell impairments.
ACL on Mortgage Loans
−Removed: Three months ended March 31, 2025
+Added: Three and six months ended June 30, 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.
2 unchanged sentences
There were no credit loss adjustments on mortgage loans.
−Removed: Three months ended March 31, 2024
−Removed: The Company recorded a release in the ACL on mortgage loans of $3.
+Added: Three and six months ended June 30, 2024
+Added: For the three months ended June 30, 2024, the ACL on mortgage loans was unadjusted.
+Added: For the six months ended June 30, 2024, the Company recorded a release in the ACL on mortgage loans of $3.
The release reflected improved economic scenario forecasts and property specific reductions, partially offset by net additions of new loans.
5 unchanged sentences
Summary of Capital Resources and Liquidity
−Removed: Capital available to the HIG Holding Company as of March 31, 2025:
+Added: Capital available to the HIG Holding Company as of June 30, 2025:
• 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 March 31, 2025, there were no borrowings outstanding;
+Added: As of June 30, 2025, there were no borrowings outstanding;
• 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.
−Removed: 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.
−Removed: Dividends and other sources of capital for the three months ended March 31, 2025:
+Added: As of June 30, 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 six months ended June 30, 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 - HIG Holding Company received $288 of net dividends from the Company's property and casualty insurance subsidiaries through March 31, 2025;
−Removed: • Employee Benefits - HIG Holding Company received $229 in dividends from Hartford Life and Accident Insurance Company (" HLA ") through March 31, 2025;
−Removed: • Hartford Funds - HIG Holding Company received $41 in dividends from Hartford Funds through March 31, 2025;
−Removed: Expected liquidity requirements for the next twelve months as of March 31, 2025:
+Added: • P&C - HIG Holding Company received $729 of net dividends from the Company's property and casualty insurance subsidiaries through June 30, 2025;
+Added: • Employee Benefits - HIG Holding Company received $442 in dividends from Hartford Life and Accident Insurance Company (" HLA ") through June 30, 2025;
+Added: • Hartford Funds - HIG Holding Company received $75 in dividends from Hartford Funds through June 30, 2025;
+Added: Expected liquidity requirements for the next twelve months as of June 30, 2025:
• $194 of interest on debt.
2 unchanged sentences
• $590 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 March 31, 2025:
+Added: Expected liquidity requirements for beyond the next twelve months as of June 30, 2025:
• Interest on and repayments of debt.
2 unchanged sentences
Equity repurchase program:
−Removed: 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.
−Removed: As of March 31, 2025, the Company has $2.75 billion remaining for equity repurchases under the current share repurchase program.
−Removed: During the period April 1, 2025 through April 23, 2025, the Company repurchased 1.1 million common shares for $124.
+Added: During the six months ended June 30, 2025, the Company repurchased 6.8 million common shares for $800 under the $3.3 billion share repurchase authorized by the Board of Directors, effective through December 31, 2026.
+Added: As of June 30, 2025, the Company has $2.35 billion remaining for equity repurchases under the current share repurchase program.
+Added: During the period July 1, 2025 through July 25, 2025, the Company repurchased 1.2 million common shares for $146.
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 Insurance Group, Inc.
−Removed: ("HIG Holding Company")
+Added: The HIG Holding Company
The liquidity requirements of the HIG Holding Company will primarily be met by HIG Holding Company's fixed maturities;
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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
+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 facility with the FHLBB.
+Added: The Company could also choose to
Index to MD&A
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Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: facility with the FHLBB.
−Removed: 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 January 1, 2025:
+Added: 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.
+Added: The Hartford's Board of Directors declared the following quarterly dividends since April 1, 2025:
Common Stock Dividends
Declared Record Payable Amount per share
−Removed: February 19, 2025 March 3, 2025 April 2, 2025 $ 0.520
+Added: May 21, 2025 June 2, 2025 July 2, 2025 $ 0.520
+Added: July 23, 2025 September 2, 2025 October 2, 2025 $ 0.520
Preferred Stock Dividends
Declared Record Payable Amount per share
−Removed: February 19, 2025 May 1, 2025 May 15, 2025 $ 375.00
+Added: May 21, 2025 August 1, 2025 August 15, 2025 $ 375.00
+Added: July 23, 2025 November 3, 2025 November 17, 2025 $ 375.00
There are no current restrictions on the HIG Holding Company's ability to pay dividends to its stockholders.
4 unchanged sentences
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.
−Removed: 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.
+Added: Through the first six months of 2025, HIG Holding Company received $1.2 billion of net dividends from its subsidiaries, including $442 from HLA, $75 from Hartford Funds and $729 from its P&C subsidiaries, excluding $25 of P&C dividends that were subsequently contributed to P&C subsidiaries and $25 of P&C dividends related to interest payments on an intercompany note owed by Hartford Holdings, Inc.
("HHI") to Hartford Fire Insurance Company.
8 unchanged sentences
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 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.
+Added: As of June 30, 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.
2 unchanged sentences
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.
−Removed: 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: As of June 30, 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
6 unchanged sentences
would be presented in other liabilities consistent with other collateralized financing transactions.
−Removed: As of March 31, 2025, there were no advances outstanding.
+Added: As of June 30, 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 ($102 as of March 31, 2025) commitment.
−Removed: 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.
+Added: The amended and restated Lloyd's Facility has two tranches with one tranche extending a $74 commitment and the other tranche extending a £74 million ($101 as of June 30, 2025) commitment.
+Added: As of June 30, 2025, letters of credit with an aggregate face amount of $74 and £74 million, or $101, were outstanding under the Lloyd's Facility.
Among other covenants, the Lloyd's Facility contains financial covenants regarding The Hartford's consolidated net worth and financial leverage.
−Removed: As of March 31, 2025, The Hartford was in compliance with all financial covenants of the facility.
+Added: As of June 30, 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.
11 unchanged sentences
For further information, refer to Note 13 - Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.
−Removed: 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.
+Added: As of June 30, 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.
8 unchanged sentences
Property & Casualty Operations
−Removed: As of March 31, 2025
+Added: As of June 30, 2025
Fixed maturities $ 36,562
4 unchanged sentences
Employee Benefits Operations
−Removed: As of March 31, 2025
+Added: As of June 30, 2025
Fixed maturities $ 7,990
7 unchanged sentences
Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: 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.
+Added: Property & Casualty reserves for unpaid losses and loss adjustment expenses as of June 30, 2025 were $37.4 billion and net of reinsurance and other recoverables were $30.7 billion.
Reserves for Property & Casualty unpaid losses and loss adjustment expenses include case reserves and incurred but not reported (" IBNR" ) reserves.
5 unchanged sentences
In particular, there is significant uncertainty over the claim payment patterns of asbestos and environmental claims.
−Removed: Employee Benefits reserves as of March 31, 2025 were $8.9 billion and net of reinsurance were $8.6 billion.
+Added: Employee Benefits reserves as of June 30, 2025 were $8.8 billion and net of reinsurance were $8.5 billion.
Group life and disability obligations are estimated using assumptions based on the Company’s historical experience, modified for recent observed trends.
1 unchanged sentence
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 payments by reserve line, net of reinsurance, see Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses
−Removed: of Notes to Consolidated Financial Statements included in the Company's 2024 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 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 reserves as of March 31, 2025 were $367 and net of reinsurance were $147.
+Added: Corporate reserves as of June 30, 2025 were $362 and net of reinsurance were $145.
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 assets under management with uses primarily for payments to subadvisors and other general operating expenses.
−Removed: As of March 31, 2025, Hartford Funds cash and short-term investments were $315.
+Added: 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.
+Added: As of June 30, 2025, Hartford Funds cash and short-term investments were $330.
Purchase and Other Obligations
4 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.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Capitalization
Capital Structure
−Removed: March 31, 2025 December 31, 2024 Change
+Added: June 30, 2025 December 31, 2024 Change
Long-term debt $ 4,369 $ 4,366 — %
7 unchanged sentences
Debt to capitalization 20 % 21 %
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: 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.
+Added: Total capitalization increased $1,074 as of June 30, 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: Three Months Ended March 31,
+Added: Six Months Ended June 30,
Net cash provided by operating activities $ 2,276 $ 2,357
2 unchanged sentences
Cash and restricted cash– end of period $ 219 $ 210
−Removed: 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.
−Removed: 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 provided by operating activities decreased in 2025 as compared to the prior year period primarily driven by an increase in P&C loss and loss adjustment expenses paid, higher operating expenses, including increased commissions and staffing costs, an increase in taxes paid, 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 due to lower cash generated from operating activities and more cash used in financing activities.
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.
−Removed: Operating cash flows for the three months ended March 31, 2025 has been adequate to meet liquidity requirements.
+Added: Operating cash flows for the six months ended June 30, 2025 has been adequate to meet liquidity requirements.
Equity Markets
For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk section in this MD&A and the Financial Risk on Statutory Capital section of the MD&A in the Company's 2024 Form 10-K Annual Report.
+Added: Index to MD&A
+Added: Part I - Item 2.
+Added: Management's Discussion and Analysis of Financial Condition and Results of Operations
Ratings are an important factor in establishing a competitive position in the insurance marketplace and impact the Company's ability to access financing and its cost of borrowing.
6 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
−Removed: 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 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.
+Added: On July 3, 2025, A.M.
+Added: Best upgraded the senior debt rating of the Company to "a" from "a-".
+Added: The upgrade of the debt rating was based on the Company's balance sheet strength, operating performance, favorable business profile and enterprise risk management.
+Added: Best also affirmed the insurance financial strength ratings for the Company.
Insurance Financial Strength Ratings as of
−Removed: April 23, 2025
+Added: July 25, 2025
Best Standard & Poor’s Moody’s
5 unchanged sentences
Senior debt a BBB+ Baa1
−Removed: Index to MD&A
−Removed: Part I - Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations
Statutory Capital
8 unchanged sentences
statutory capital 392 (148) 244
−Removed: U.S statutory capital at March 31, 2025
+Added: U.S statutory capital at June 30, 2025
$ 13,686 $ 2,560 $ 16,246
6 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: 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 2024 Form 10-K Annual Report.
+Added: On March 27, 2025, the Securities and Exchange Commission voted to end its defense of its climate disclosure rules, originally finalized in March of 2024, which would have required companies to report on their climate-related risks and greenhouse gas emissions in much greater detail than previously required.
+Added: This development relieves companies of certain additional climate-related disclosure obligations which would have come into effect under the new rules.
+Added: Additional future impacts could include shifts in regulatory approaches and increased uncertainty for businesses regarding climate-related disclosures.
+Added: State-level efforts to require additional climate-related disclosure, notably in California, remain ongoing but face legal challenges similar to those faced by the SEC climate rules.
+Added: H.R.1, known as the “One Big Beautiful Bill Act” was signed into law on July 4, 2025.
+Added: This comprehensive budget reconciliation package consolidates a wide array of public policy priorities, reshaping federal policy across numerous sectors of the American economy, including taxation, healthcare, social safety nets, immigration and education.
+Added: The changes in H.R.1 are not expected to have a material impact on the Company's results of operations.
Index to MD&A
1 unchanged sentence
Management's Discussion and Analysis of Financial Condition and Results of Operations
+Added: Impact of New Accounting Standards
+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.
Asbestos and Environmental
54 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.