HARTFORD INSURANCE GROUP, INC. 10-Q

Item 1. Financial Statements Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of The Hartford Insurance Group, Inc. Hartford, Connecticut Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated balance sheet of The Hartford Insurance Group, Inc. and subsidiaries (the "Company") as of June 30, 2025, the related condensed consolidated statements of operations, comprehensive income (loss), and changes in stockholders' equity for the three-month and six-month periods ended June 30, 2025 and 2024 , and of cash flows for the six-month periods ended June 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Deloitte & Touche LLP Hartford, Connecticut July 28, 2025 6 Table of Contents The Hartford Insurance Group, Inc. Condensed Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, (in millions, except for per share data) 2025 2024 2025 2024 (Unaudited) Revenues Earned premiums $ 5,961 $ 5,578 $ 11,796 $ 11,024 Fee income 342 339 688 672 Net investment income 664 602 1,320 1,195 Net realized losses ( 10 ) ( 59 ) ( 59 ) ( 31 ) Other revenues 30 26 52 45 Total revenues 6,987 6,486 13,797 12,905 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 3,712 3,661 7,712 7,272 Amortization of deferred policy acquisition costs ("DAC") 625 561 1,232 1,106 Insurance operating costs and other expenses 1,337 1,285 2,689 2,568 Interest expense 50 50 100 100 Amortization of other intangible assets 17 17 35 35 Restructuring and other costs — — — 1 Total benefits, losses and expenses 5,741 5,574 11,768 11,082 Income before income taxes 1,246 912 2,029 1,823 Income tax expense 251 174 404 332 Net income 995 738 1,625 1,491 Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 990 $ 733 $ 1,615 $ 1,481 Net income available to common stockholders per common share Basic $ 3.49 $ 2.48 $ 5.66 $ 4.99 Diluted $ 3.44 $ 2.44 $ 5.58 $ 4.92 See Notes to Condensed Consolidated Financial Statements. 7 Table of Contents The Hartford Insurance Group, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2024 2025 2024 (Unaudited) Net income $ 995 $ 738 $ 1,625 $ 1,491 Other comprehensive income (loss) ("OCI"): Change in net unrealized gain (loss) on fixed maturities, available-for-sale ("AFS") 208 ( 90 ) 510 ( 250 ) Change in unrealized losses on fixed maturities with an allowance for credit losses ("ACL") 1 — 1 1 Change in net gain (loss) on cash flow hedging instruments ( 34 ) 9 ( 34 ) 9 Change in foreign currency translation adjustments 16 ( 1 ) 16 ( 2 ) Change in liability for future policy benefits adjustments ( 1 ) 5 ( 4 ) 10 Change in pension and other postretirement plan adjustments 6 6 13 13 OCI, net of tax 196 ( 71 ) 502 ( 219 ) Comprehensive income $ 1,191 $ 667 $ 2,127 $ 1,272 See Notes to Condensed Consolidated Financial Statements. 8 Table of Contents The Hartford Insurance Group, Inc. Condensed Consolidated Balance Sheets (in millions, except for share and per share data) June 30, 2025 December 31, 2024 (Unaudited) Assets Investments: Fixed maturities, AFS, at fair value (amortized cost of $ 45,880 and $ 44,538 , and ACL of $ 14 and $ 16 ) $ 44,558 $ 42,567 Fixed maturities, at fair value using the fair value option ("FVO Securities") 181 308 Equity securities, at fair value 529 603 Mortgage loans (net of ACL of $ 43 and $ 44 ) 6,463 6,396 Limited partnerships and other alternative investments 5,325 5,042 Other investments 198 226 Short-term investments 3,649 4,068 Total investments 60,903 59,210 Cash 166 183 Restricted cash 53 51 Accrued investment income 465 450 Premiums receivable and agents' balances (net of ACL of $ 135 and $ 117 ) 6,698 5,998 Reinsurance recoverables (net of allowance for uncollectible reinsurance of $ 75 and $ 75 ) 7,100 7,140 Deferred policy acquisition costs 1,362 1,239 Deferred income taxes, net 1,094 1,229 Goodwill 1,911 1,911 Property and equipment, net 906 888 Other intangible assets, net 602 637 Other assets 2,379 1,981 Total assets $ 83,639 $ 80,917 Liabilities Unpaid losses and loss adjustment expenses $ 45,482 $ 44,610 Reserve for future policy benefits 443 448 Other policyholder funds and benefits payable 612 614 Unearned premiums 10,337 9,408 Long-term debt 4,369 4,366 Other liabilities 4,878 5,024 Total liabilities 66,121 64,470 Commitments and Contingencies (Note 13) Stockholders’ Equity Preferred stock, $ 0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2025 and December 31, 2024, aggregate liquidation preference of $ 345 334 334 Common stock, $ 0.01 par value — 1,500,000,000 shares authorized, 326,960,228 shares issued at June 30, 2025 and December 31, 2024 3 3 Additional paid-in capital 527 578 Retained earnings 22,850 21,531 Treasury stock, at cost 44,685,067 and 39,404,003 shares ( 3,812 ) ( 3,113 ) Accumulated other comprehensive income (loss) ("AOCI"), net of tax ( 2,384 ) ( 2,886 ) Total stockholders’ equity 17,518 16,447 Total liabilities and stockholders’ equity $ 83,639 $ 80,917 See Notes to Condensed Consolidated Financial Statements. 9 Table of Contents The Hartford Insurance Group, Inc. Condensed Consolidated Statements of Changes in Stockholders' Equity Three Months Ended June 30, Six Months Ended June 30, (in millions, except for share and per share data) 2025 2024 2025 2024 (Unaudited) Preferred Stock $ 334 $ 334 $ 334 $ 334 Common Stock 3 3 3 3 Additional Paid-in Capital Additional Paid-in Capital, beginning of period 524 551 578 648 Issuance of shares under incentive and stock compensation plans and other ( 19 ) ( 15 ) ( 149 ) ( 176 ) Stock-based compensation plans expense 22 22 98 86 Additional Paid-in Capital, end of period 527 558 527 558 Retained Earnings Retained Earnings, beginning of period 22,007 19,614 21,531 19,007 Net income 995 738 1,625 1,491 Dividends declared on preferred stock ( 5 ) ( 5 ) ( 10 ) ( 10 ) Dividends declared on common stock ( 147 ) ( 138 ) ( 296 ) ( 279 ) Retained Earnings, end of period 22,850 20,209 22,850 20,209 Treasury Stock, at cost Treasury Stock, at cost, beginning of period ( 3,444 ) ( 2,037 ) ( 3,113 ) ( 1,816 ) Treasury stock acquired ( 404 ) ( 354 ) ( 808 ) ( 707 ) Issuance of shares under incentive and stock compensation plans from treasury stock and other 38 36 178 247 Net shares acquired related to employee incentive and stock compensation plans ( 2 ) ( 1 ) ( 69 ) ( 80 ) Treasury Stock, at cost, end of period ( 3,812 ) ( 2,356 ) ( 3,812 ) ( 2,356 ) Accumulated Other Comprehensive Income (Loss), net of tax Accumulated Other Comprehensive Income (Loss), net of tax, beginning of period ( 2,580 ) ( 2,997 ) ( 2,886 ) ( 2,849 ) Total other comprehensive income (loss) 196 ( 71 ) 502 ( 219 ) Accumulated Other Comprehensive Income (Loss), net of tax, end of period ( 2,384 ) ( 3,068 ) ( 2,384 ) ( 3,068 ) Total Stockholders’ Equity $ 17,518 $ 15,680 $ 17,518 $ 15,680 Preferred Shares Outstanding 13,800 13,800 13,800 13,800 Common Shares Outstanding (in thousands) Common Shares Outstanding, beginning of period 285,104 296,807 287,556 298,472 Treasury stock acquired ( 3,240 ) ( 3,500 ) ( 6,755 ) ( 7,347 ) Issuance of shares under incentive and stock compensation plans and other 429 700 2,084 3,704 Return of shares under incentive and stock compensation plans to treasury stock ( 18 ) ( 18 ) ( 610 ) ( 840 ) Common Shares Outstanding, at end of period 282,275 293,989 282,275 293,989 Cash dividends declared per common share $ 0.520 $ 0.470 $ 1.040 $ 0.940 Cash dividends declared per preferred share $ 375.00 $ 375.00 $ 750.00 $ 750.00 See Notes to Condensed Consolidated Financial Statements. 10 Table of Contents The Hartford Insurance Group, Inc. Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, (in millions) 2025 2024 Operating Activities (Unaudited) Net income $ 1,625 $ 1,491 Adjustments to reconcile net income to net cash provided by operating activities: Net realized losses 59 31 Amortization of deferred policy acquisition costs 1,232 1,106 Additions to deferred policy acquisition costs ( 1,355 ) ( 1,238 ) Depreciation and amortization 186 187 Other operating activities, net 169 198 Change in assets and liabilities: Decrease in reinsurance recoverables 32 37 Net change in accrued and deferred income taxes ( 181 ) ( 155 ) Increase in insurance liabilities 1,784 1,907 Net change in premiums receivable and agents' balances ( 752 ) ( 761 ) Net change in other assets and other liabilities ( 523 ) ( 446 ) Net cash provided by operating activities 2,276 2,357 Investing Activities Proceeds from the sale/maturity/prepayment of: Fixed maturities, AFS 4,755 5,151 Fixed maturities, at fair value using the fair value option 109 50 Equity securities, at fair value 125 304 Mortgage loans 733 411 Limited partnership and other alternative investments 115 101 Payments for the purchase of: Fixed maturities, AFS ( 6,090 ) ( 6,498 ) Fixed maturities, at fair value using the fair value option ( 8 ) — Equity securities, at fair value ( 16 ) ( 9 ) Mortgage loans ( 793 ) ( 669 ) Limited partnership and other alternative investments ( 445 ) ( 314 ) Net proceeds from (payments for) derivatives ( 22 ) 2 Net additions of property and equipment ( 78 ) ( 111 ) Net proceeds from short-term investments 524 258 Other investing activities, net ( 53 ) 1 Net cash used for investing activities ( 1,144 ) ( 1,323 ) Financing Activities Deposits and other additions to investment and universal life-type contracts 63 64 Withdrawals and other deductions from investment and universal life-type contracts ( 57 ) ( 73 ) Net (issuance) return of shares under incentive and stock compensation plans, including related excise tax benefit ( 33 ) ( 9 ) Treasury stock acquired, including related excise tax paid ( 815 ) ( 700 ) Dividends paid on preferred stock ( 10 ) ( 10 ) Dividends paid on common stock ( 299 ) ( 281 ) Net cash used for financing activities ( 1,151 ) ( 1,009 ) Foreign exchange rate effect on cash 4 ( 4 ) Net increase (decrease) in cash and restricted cash ( 15 ) 21 Cash and restricted cash – beginning of period 234 189 Cash and restricted cash– end of period $ 219 $ 210 Supplemental Disclosure of Cash Flow Information Income tax paid $ 524 $ 457 Interest paid $ 103 $ 106 See Notes to Condensed Consolidated Financial Statements. 11 Table of Contents Note 1 - Basis of Presentation and Significant Accounting Policies The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (Dollar amounts in millions, except for per share data, unless otherwise stated) (Unaudited) 1. Basis of Presentation and Significant Accounting Policies Basis of Presentation The Hartford Insurance Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, employee group benefits insurance and services, and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States as well as in the United Kingdom and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”). The Condens ed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2024 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. Consolidation The Condensed Consolidated Financial Statements include the accounts of The Hartford Insurance Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability ("LTD") insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; and contingencies relating to corporate litigation and regulatory matters. 12 Table of Contents Note 2 - Earnings Per Common Share The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 2. Earnings Per Common Share Computation of Basic and Diluted Earnings per Common Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except for per share data) 2025 2024 2025 2024 Earnings Net income $ 995 $ 738 $ 1,625 $ 1,491 Less: Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 990 $ 733 $ 1,615 $ 1,481 Shares Weighted average common shares outstanding, basic 283.7 295.5 285.1 296.8 Dilutive effect of stock-based awards under compensation plans 4.0 4.4 4.1 4.5 Weighted average common shares outstanding and dilutive potential common shares 287.7 299.9 289.2 301.3 Net income available to common stockholders per common share Basic $ 3.49 $ 2.48 $ 5.66 $ 4.99 Diluted $ 3.44 $ 2.44 $ 5.58 $ 4.92 3. Segment Information The Company currently conducts business principally in five reportable segments including Business Insurance, Personal Insurance, Property & Casualty ("P&C") Other Operations, Employee Benefits and Hartford Funds, as well as a Corporate category. 13 Table of Contents Note 3 - Segment Information The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Segment Revenues Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Business Insurance Workers’ compensation $ 917 $ 926 $ 1,835 $ 1,843 General liability 609 540 1,193 1,066 Marine 68 67 137 134 Package business 659 572 1,278 1,121 Commercial property 355 306 694 596 Professional liability 208 200 414 403 Bond 83 80 168 158 Assumed reinsurance 222 180 442 361 Commercial automobile 314 261 609 509 Business Insurance earned premium and fee income 3,435 3,132 6,770 6,191 Net investment income 449 402 886 793 Net realized losses ( 20 ) ( 50 ) ( 44 ) ( 38 ) Other revenue [1] 1 — 2 — Total Business Insurance 3,865 3,484 7,614 6,946 Personal Insurance Personal automobile 634 598 1,258 1,170 Homeowners 305 259 588 508 Personal Insurance earned premium and fee income [2] 939 857 1,846 1,678 Net investment income 58 50 115 100 Net realized losses ( 4 ) ( 8 ) ( 6 ) ( 7 ) Other revenue 24 25 44 44 Total Personal Insurance 1,017 924 1,999 1,815 P&C Other Operations Net investment income 19 19 37 37 Net realized losses ( 2 ) ( 3 ) ( 2 ) ( 3 ) Total P&C Other Operations 17 16 35 34 Employee Benefits Group disability 899 895 1,799 1,785 Group life 644 663 1,294 1,308 Other 120 107 238 211 Employee Benefits premium and other considerations 1,663 1,665 3,331 3,304 Net investment income 118 112 244 226 Net realized losses ( 16 ) ( 9 ) ( 20 ) ( 8 ) Total Employee Benefits 1,765 1,768 3,555 3,522 Hartford Funds Mutual fund and ETF 239 235 481 466 Third-party life and annuity separate accounts [3] 17 18 35 37 Hartford Funds fee income 256 253 516 503 Net investment income 6 5 10 9 Net realized gains 9 3 9 8 Total Hartford Funds 271 261 535 520 Total segment revenues $ 6,935 $ 6,453 $ 13,738 $ 12,837 [1] Other revenues for Business Insurance includes revenues from equity method investments that are not considered revenues from contracts with customers in the table below. [2] For the three months ended June 30, 2025 and 2024, AARP members accounted for earned premiums of $ 841 and $ 788 , respectively. For the six months ended June 30, 2025 and 2024, AARP members accounted for earned premiums of $ 1.66 billion and $ 1.55 billion, respectively. [3] Represents revenues earned for investment advisory services on third party life and annuity separate account assets under management ("AUM") by the Company's Hartford Funds segment. 14 Table of Contents Note 3 - Segment Information The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Significant Segment Expenses Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Business Insurance Current accident year losses and loss adjustment expenses ("LAE") before catastrophes $ 1,952 $ 1,750 $ 3,843 $ 3,475 Current accident year catastrophe losses and LAE 114 155 394 264 Prior accident year development of losses and LAE ( 146 ) ( 81 ) ( 229 ) ( 137 ) Amortization of DAC 546 489 1,077 965 Insurance operating costs 507 484 1,019 971 Amortization of other intangible assets 7 7 14 14 Dividends to policyholders 11 9 21 19 Total Business Insurance 2,991 2,813 6,139 5,571 Personal Insurance Current accident year losses and LAE before catastrophes 585 597 1,148 1,172 Current accident year catastrophe losses and LAE 98 125 285 177 Prior accident year development of losses and LAE ( 41 ) ( 34 ) ( 80 ) ( 41 ) Amortization of DAC 70 63 138 123 Insurance operating costs 172 169 354 322 Amortization of other intangible assets — — 1 1 Total Personal Insurance 884 920 1,846 1,754 P&C Other Operations Prior accident year development of losses and LAE — — — 7 Insurance operating costs 2 2 4 4 Total P&C Other Operations 2 2 4 11 Employee Benefits Group disability losses 617 601 1,238 1,225 Group life losses 478 497 997 1,030 Group losses - other 55 49 114 96 Amortization of DAC 9 9 17 18 Insurance operating costs and other expenses 407 387 813 784 Amortization of other intangible assets 10 10 20 20 Total Employee Benefits 1,576 1,553 3,199 3,173 Hartford Funds Sub-advisory expense 72 71 145 140 Employee compensation and benefits 31 32 70 67 Distribution and service 70 74 143 147 General, administrative and other 30 26 54 52 Total Hartford Funds 203 203 412 406 Total significant segment expenses $ 5,656 $ 5,491 $ 11,600 $ 10,915 15 Table of Contents Note 3 - Segment Information The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Segment/Category Summary For the Three Months Ended June 30, 2025 Reportable Segments Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated Earned premium and fee income from external customers $ 3,435 $ 939 $ — $ 1,663 $ 256 $ 6,293 $ 10 $ 6,303 Net investment income 449 58 19 118 6 650 14 664 Net realized gains (losses) ( 20 ) ( 4 ) ( 2 ) ( 16 ) 9 ( 33 ) 23 ( 10 ) Other revenue [1] 1 24 — — — 25 5 30 Total Revenues 3,865 1,017 17 1,765 271 6,935 52 6,987 Significant segment expenses 2,991 884 2 1,576 203 5,656 5,656 Other segment expenses [2] 2 19 — — — 21 21 Corporate expenses 64 64 Income tax expense (benefit) 176 23 2 39 14 254 ( 3 ) 251 Net income (loss) $ 696 $ 91 $ 13 $ 150 $ 54 $ 1,004 $ ( 9 ) $ 995 Other segment disclosures: Amortization of DAC $ 546 $ 70 $ — $ 9 $ — $ 625 $ — $ 625 Amortization of other intangibles $ 7 $ — $ — $ 10 $ — $ 17 $ — $ 17 Segment/Category Summary For the Six Months Ended June 30, 2025 Reportable Segments Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated Earned premium and fee income from external customers $ 6,770 $ 1,846 $ — $ 3,331 $ 516 $ 12,463 $ 21 $ 12,484 Net investment income 886 115 37 244 10 1,292 28 1,320 Net realized gains (losses) ( 44 ) ( 6 ) ( 2 ) ( 20 ) 9 ( 63 ) 4 ( 59 ) Other revenue [1] 2 44 — — — 46 6 52 Total Revenues 7,614 1,999 35 3,555 535 13,738 59 13,797 Significant segment expenses 6,139 1,846 4 3,199 412 11,600 11,600 Other segment expenses [2] 4 34 — — — 38 38 Corporate expenses 130 130 Income tax expense (benefit) 298 23 5 73 26 425 ( 21 ) 404 Net income (loss) $ 1,173 $ 96 $ 26 $ 283 $ 97 $ 1,675 $ ( 50 ) $ 1,625 Other segment disclosures: Amortization of DAC $ 1,077 $ 138 $ — $ 17 $ — $ 1,232 $ — $ 1,232 Amortization of other intangibles $ 14 $ 1 $ — $ 20 $ — $ 35 $ — $ 35 16 Table of Contents Note 3 - Segment Information The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Segment/Category Summary For the Three Months Ended June 30, 2024 Reportable Segments Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated Earned premium and fee income from external customers $ 3,132 $ 857 $ — $ 1,665 $ 253 $ 5,907 $ 10 $ 5,917 Net investment income 402 50 19 112 5 588 14 602 Net realized gains (losses) ( 50 ) ( 8 ) ( 3 ) ( 9 ) 3 ( 67 ) 8 ( 59 ) Other revenue [1] — 25 — — — 25 1 26 Total Revenues 3,484 924 16 1,768 261 6,453 33 6,486 Significant segment expenses 2,813 920 2 1,553 203 5,491 5,491 Other segment expenses [2] 1 19 — — — 20 20 Corporate expenses 63 63 Income tax expense (benefit) 130 ( 4 ) 3 44 14 187 ( 13 ) 174 Net income (loss) $ 540 $ ( 11 ) $ 11 $ 171 $ 44 $ 755 $ ( 17 ) $ 738 Other segment disclosures: Amortization of DAC $ 489 $ 63 $ — $ 9 $ — $ 561 $ — $ 561 Amortization of other intangibles $ 7 $ — $ — $ 10 $ — $ 17 $ — $ 17 Segment/Category Summary For the Six Months Ended June 30, 2024 Reportable Segments Business Insurance Personal Insurance P&C Other Operations Employee Benefits Hartford Funds Total Reportable Segments Corporate Consolidated Earned premium and fee income from external customers $ 6,191 $ 1,678 $ — $ 3,304 $ 503 $ 11,676 $ 20 $ 11,696 Net investment income 793 100 37 226 9 1,165 30 1,195 Net realized gains (losses) ( 38 ) ( 7 ) ( 3 ) ( 8 ) 8 ( 48 ) 17 ( 31 ) Other revenue [1] — 44 — — — 44 1 45 Total Revenues 6,946 1,815 34 3,522 520 12,837 68 12,905 Significant segment expenses 5,571 1,754 11 3,173 406 10,915 10,915 Other segment expenses [2] 3 34 — — — 37 37 Corporate expenses 130 130 Income tax expense (benefit) 259 4 4 70 25 362 ( 30 ) 332 Net income (loss) $ 1,113 $ 23 $ 19 $ 279 $ 89 $ 1,523 $ ( 32 ) $ 1,491 Other segment disclosures: Amortization of DAC $ 965 $ 123 $ — $ 18 $ — $ 1,106 $ — $ 1,106 Amortization of other intangibles $ 14 $ 1 $ — $ 20 $ — $ 35 $ — $ 35 [1] Other revenues for Business Insurance and Corporate includes revenues from equity method investments that are not considered revenues from contracts with customers in the table below. [2] Other segment expenses primarily consists of integration costs associated with the 2019 acquisition of Navigators Group for Business Insurance and servicing expenses for Personal Insurance 17 Table of Contents Note 3 - Segment Information The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Assets June 30, 2025 December 31, 2024 Business Insurance $ 55,682 $ 53,296 Personal Insurance 6,453 6,034 Property & Casualty Other Operations 4,237 4,312 Employee Benefits 13,289 13,502 Hartford Funds 755 761 Total Reportable Segments 80,416 77,905 Corporate 3,223 3,012 Total assets $ 83,639 $ 80,917 Non-Insurance Revenue from Contracts with Customers Three Months Ended June 30, Six Months Ended June 30, Revenue Line Item 2025 2024 2025 2024 Business Insurance Installment billing fees Fee income $ 11 $ 11 $ 22 $ 22 Personal Insurance Installment billing fees Fee income 8 8 16 16 Insurance servicing revenues Other revenues 24 25 44 44 Employee Benefits Administrative services Fee income 57 57 113 111 Hartford Funds Advisory, servicing and distribution fees Fee income 256 253 516 503 Corporate Investment management and other fees Fee income 10 10 21 20 Total non-insurance revenues with customers $ 366 $ 364 $ 732 $ 716 4. Fair Value Measurements The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. 18 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2025 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed securities ("ABS") $ 4,376 $ — $ 4,284 $ 92 Collateralized loan obligations ("CLOs") 3,393 — 3,323 70 Commercial mortgage-backed securities ("CMBS") 2,585 — 2,448 137 Corporate 22,525 — 19,791 2,734 Foreign government/government agencies 455 — 455 — Municipal 4,650 — 4,650 — Residential mortgage-backed securities ("RMBS") 5,513 — 5,501 12 U.S. Treasuries 1,061 115 946 — Total fixed maturities, AFS 44,558 115 41,398 3,045 FVO securities 181 — — 181 Equity securities, at fair value [1] 529 390 46 93 Derivative assets Credit derivatives 27 — 27 — Foreign exchange derivatives 3 — 3 — Equity derivatives 5 — 5 — Total derivative assets [2] 35 — 35 — Short-term investments 3,649 604 2,929 116 Total assets accounted for at fair value on a recurring basis $ 48,952 $ 1,109 $ 44,408 $ 3,435 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ ( 27 ) $ — $ ( 27 ) $ — Foreign exchange derivatives ( 15 ) — ( 15 ) — Interest rate derivatives ( 1 ) — ( 1 ) — Total derivative liabilities [3] ( 43 ) — ( 43 ) — Total liabilities accounted for at fair value on a recurring basis $ ( 43 ) $ — $ ( 43 ) $ — 19 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2024 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS ABS $ 3,937 $ — $ 3,915 $ 22 CLOs 3,250 — 3,134 116 CMBS 2,736 — 2,569 167 Corporate 20,636 — 18,355 2,281 Foreign government/government agencies 480 — 480 — Municipal 5,304 — 5,304 — RMBS 5,230 — 5,206 24 U.S. Treasuries 994 57 937 — Total fixed maturities, AFS 42,567 57 39,900 2,610 FVO securities 308 — 111 197 Equity securities, at fair value [1] 603 372 144 87 Derivative assets Credit derivatives 30 — 30 — Equity derivatives 4 — 4 — Foreign exchange derivatives 23 — 23 — Total derivative assets [2] 57 — 57 — Short-term investments 4,068 1,271 2,699 98 Total assets accounted for at fair value on a recurring basis $ 47,603 $ 1,700 $ 42,911 $ 2,992 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ ( 30 ) $ — $ ( 30 ) $ — Foreign exchange derivatives 18 — 18 — Total derivative liabilities [3] ( 12 ) — ( 12 ) — Total liabilities accounted for at fair value on a recurring basis $ ( 12 ) $ — $ ( 12 ) $ — [1] Level 3 includes investments that have contractual sales restrictions that require consent to sell and are in place for the duration that the securities are held by the Company. [2] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 3 to this table for derivative liabilities. [3] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. The Company has overseas deposits included in other investments of $ 71 and $ 61 as of June 30, 2025 and December 31, 2024, respectively, which are measured at fair value using the net asset value as a practical expedient. Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow 20 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s sector, financial strength, and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the significant inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market-based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and over-the-counter ("OTC") cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The process for determining the fair value of investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company. The purpose of the Valuation Committee is to provide oversight of the pricing policy, procedures, and controls, including approval of valuation methodologies and pricing sources. The Valuation Committee reviews market data trends, pricing statistics and trading statistics to ensure that prices are reasonable and consistent with our fair value framework. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. Controls include, but are not limited to, reviewing daily and monthly price changes, stale prices, and missing prices and comparing new trade prices to third-party pricing services, weekly price changes to published bond index prices, and daily OTC derivative market valuations to counterparty valuations. The Company has a dedicated pricing group that works with trading and investment professionals to challenge prices received by a third-party pricing source if the Company believes that the valuation received does not accurately reflect the fair value. New valuation models and changes to current models require approval by the Valuation Committee. In addition, the Company’s enterprise-wide Operational Risk Management function provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded derivative instruments. 21 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLOs, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S. Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates • Independent broker quotes • For privately traded investments, credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature Derivatives Credit derivatives • Swap yield curve • Credit default swap curves • Not applicable Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves • Not applicable Interest rate derivatives • Swap yield curve • Not applicable Equity derivatives • Equity index levels • Not applicable 22 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of June 30, 2025 ABS [3] $ 84 Discounted cash flows Spread 487 bps 752 bps 505 bps Decrease CLOs [3] $ 55 Discounted cash flows Spread 450 bps 1,009 bps 851 bps Decrease CMBS [3] $ 136 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 200 bps 1,897 bps 563 bps Decrease Corporate [4] $ 2,620 Discounted cash flows Spread 84 bps 737 bps 274 bps Decrease RMBS $ 12 Discounted cash flows Spread [6] 61 bps 573 bps 183 bps Decrease Constant prepayment rate [6] 2 % 5 % 3 % Decrease [5] Constant default rate [6] — % 5 % 2 % Decrease Loss severity [6] 35 % 50 % 44 % Decrease Short-term investments $ 116 Discounted cash flows Spread 156 bps 269 bps 220 bps Decrease As of December 31, 2024 CMBS [3] $ 166 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 200 bps 1,221 bps 418 bps Decrease Corporate [4] $ 2,166 Discounted cash flows Spread 81 bps 794 bps 286 bps Decrease RMBS [3] $ 19 Discounted cash flows Spread [6] 100 bps 372 bps 181 bps Decrease Constant prepayment rate [6] 1 % 6 % 4 % Decrease [5] Constant default rate [6] 1 % 4 % 2 % Decrease Loss severity [6] 30 % 50 % 41 % Decrease Short-term investments $ 98 Discounted cash flows Spread 266 bps 266 bps 266 bps Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4]Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5]Decrease for above market rate coupons and increase for below market rate coupons. [6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads . As of June 30, 2025 and December 31, 2024, the fair values of the Company's level 3 derivatives were less than $ 1 for both periods. The table above excludes certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As of June 30, 2025, no significant adjustments were made by the Company to broker prices received. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability. 23 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2025 Total realized/unrealized gains (losses) Fair value as of March 31, 2025 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2025 Assets Fixed maturities, AFS ABS $ 56 $ — $ — $ 39 $ ( 3 ) $ — $ — $ — $ 92 CLOs 233 — — 20 ( 18 ) — — ( 165 ) 70 CMBS 150 ( 1 ) 1 — ( 13 ) ( 8 ) 8 — 137 Corporate 2,401 2 47 460 ( 109 ) ( 67 ) — — 2,734 RMBS 39 — — — ( 3 ) — — ( 24 ) 12 Total fixed maturities, AFS 2,879 1 48 519 ( 146 ) ( 75 ) 8 ( 189 ) 3,045 FVO securities 195 ( 13 ) — 2 ( 3 ) — — — 181 Equity securities, at fair value 91 — — 2 — — — — 93 Short-term investments 59 — — 57 — — — — 116 Total Assets $ 3,224 $ ( 12 ) $ 48 $ 580 $ ( 149 ) $ ( 75 ) $ 8 $ ( 189 ) $ 3,435 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2025 Total realized/unrealized gains (losses) Fair value as of January 1, 2025 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2025 Assets Fixed maturities, AFS ABS $ 22 $ — $ 1 $ 73 $ ( 4 ) $ — $ — $ — $ 92 CLOs 116 — — 228 ( 19 ) — — ( 255 ) 70 CMBS 167 ( 1 ) 4 — ( 13 ) ( 10 ) 43 ( 53 ) 137 Corporate 2,281 3 62 624 ( 198 ) ( 76 ) 38 — 2,734 RMBS 24 — — 24 ( 7 ) — — ( 29 ) 12 Total fixed maturities, AFS 2,610 2 67 949 ( 241 ) ( 86 ) 81 ( 337 ) 3,045 FVO securities 197 ( 17 ) — 8 ( 7 ) — — — 181 Equity securities, at fair value 87 ( 1 ) — 10 ( 3 ) — — — 93 Short-term investments 98 — — 67 ( 49 ) — — — 116 Total Assets $ 2,992 $ ( 16 ) $ 67 $ 1,034 $ ( 300 ) $ ( 86 ) $ 81 $ ( 337 ) $ 3,435 24 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2024 Total realized/unrealized gains (losses) Fair value as of March 31, 2024 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2024 Assets Fixed maturities, AFS ABS $ 16 $ — $ — $ — $ — $ — $ — $ ( 8 ) $ 8 CLOs 184 — — 460 ( 14 ) — — ( 130 ) 500 CMBS 241 ( 2 ) 2 — ( 3 ) ( 48 ) — — 190 Corporate 1,923 — ( 18 ) 206 ( 49 ) ( 1 ) — — 2,061 RMBS 69 — — 14 ( 5 ) — — ( 38 ) 40 Total fixed maturities, AFS 2,433 ( 2 ) ( 16 ) 680 ( 71 ) ( 49 ) — ( 176 ) 2,799 FVO securities 167 ( 2 ) — — ( 5 ) — — — 160 Equity securities, at fair value 58 — — — — — — — 58 Short-term investments 26 — — — ( 1 ) — — — 25 Total Assets $ 2,684 $ ( 4 ) $ ( 16 ) $ 680 $ ( 77 ) $ ( 49 ) $ — $ ( 176 ) $ 3,042 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2024 Total realized/unrealized gains (losses) Fair value as of January 1, 2024 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2024 Assets Fixed maturities, AFS ABS $ — $ — $ — $ 16 $ — $ — $ — $ ( 8 ) $ 8 CLOs 113 — — 590 ( 26 ) — — ( 177 ) 500 CMBS 227 ( 2 ) 12 — ( 5 ) ( 48 ) 6 — 190 Corporate 1,861 — ( 33 ) 312 ( 76 ) ( 3 ) — — 2,061 RMBS 36 — — 52 ( 10 ) — — ( 38 ) 40 Total fixed maturities, AFS 2,237 ( 2 ) ( 21 ) 970 ( 117 ) ( 51 ) 6 ( 223 ) 2,799 FVO securities 167 1 — — ( 8 ) — — — 160 Equity securities, at fair value 58 — — — — — — — 58 Short-term investments 25 — — 1 ( 1 ) — — — 25 Total Assets $ 2,487 $ ( 1 ) $ ( 21 ) $ 971 $ ( 126 ) $ ( 51 ) $ 6 $ ( 223 ) $ 3,042 [1] Amounts in these columns are generally reported in net realized gains (losses) . All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers into and/or (out of) Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. 25 Table of Contents Note 4 - Fair Value Measurements The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 2025 2024 2025 2024 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Assets Fixed maturities, AFS ABS $ — $ — $ — $ — $ — $ — $ 1 $ — CMBS — — 1 1 — — 3 10 Corporate — — 45 ( 18 ) 3 — 58 ( 32 ) Total fixed maturities, AFS — — 46 ( 17 ) 3 — 62 ( 22 ) FVO securities ( 13 ) ( 2 ) — — ( 17 ) 1 — — Total Assets $ ( 13 ) $ ( 2 ) $ 46 $ ( 17 ) $ ( 14 ) $ 1 $ 62 $ ( 22 ) [1] All amounts in these rows are reported in net realized gains (losses) . All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gains (losses) on fixed maturities, AFS are reported in changes in net unrealized gain (loss) on fixed maturities in the Condensed Consolidated Statements of Comprehensive Income (Loss). Fair Value Option The Company has elected the fair value option for certain investments in residual interests of securitizations and other securities that contain embedded credit derivatives with underlying credit risk related to residential real estate in order to reflect changes in fair value in earnings. These instruments are included within FVO securities on the Condensed Consolidated Balance Sheets and changes in the fair value of these investments are reported in net realized gains and losses. As of June 30, 2025 and December 31, 2024, the fair value of assets using the fair value option was $ 181 and $ 308 , respectively, of which $ 181 and $ 197 , respectively, were residual interests of securitizations. For the three and six months ended June 30, 2025, net realized gains (losses) related to the change in fair value of assets using the fair value option were $( 13 ) and $( 17 ), respectively. For the three and six months ended June 30, 2024, net realized gains (losses) related to the change in fair value of assets using the fair value option were $( 1 ) and $ 3 , respectively. Financial Instruments Not Carried at Fair Value Financial Assets and Liabilities Not Carried at Fair Value June 30, 2025 December 31, 2024 Fair Value Hierarchy Level Carrying Amount [1] Fair Value Fair Value Hierarchy Level Carrying Amount [1] Fair Value Assets Mortgage loans Level 3 $ 6,463 $ 6,166 Level 3 $ 6,396 $ 5,901 Liabilities Other policyholder funds and benefits payable Level 3 $ 612 $ 612 Level 3 $ 614 $ 614 Senior notes [2] Level 2 $ 3,870 $ 3,445 Level 2 $ 3,867 $ 3,406 Junior subordinated debentures [2] Level 2 $ 499 $ 465 Level 2 $ 499 $ 460 [1] As of June 30, 2025 and December 31, 2024, the carrying amount of mortgage loans is net of ACL of $ 43 and $ 44 , respectively. [2] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for any current maturities, which are included in short-term debt when applicable. 26 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 5. Investments Net Realized Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2025 2024 2025 2024 Gross gains on sales of fixed maturities $ 19 $ 6 $ 32 $ 11 Gross losses on sales of fixed maturities ( 45 ) ( 75 ) ( 70 ) ( 86 ) Equity securities [1] Net realized gains (losses) on sales of equity securities 5 ( 3 ) 5 ( 15 ) Change in net unrealized gains (losses) of equity securities 31 17 20 64 Net realized and unrealized gains (losses) on equity securities 36 14 25 49 Net credit losses on fixed maturities, AFS — ( 1 ) 2 ( 2 ) Change in ACL on mortgage loans — — — 3 Other, net [2] ( 20 ) ( 3 ) ( 48 ) ( 6 ) Net realized losses $ ( 10 ) $ ( 59 ) $ ( 59 ) $ ( 31 ) [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. 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] 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. 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. Proceeds from the sales of fixed maturities, AFS totaled $ 1.7 billion and $ 2.7 billion for the three and six months ended June 30, 2025, respectively, and $ 2.3 billion and $ 2.7 billion for the three and six months ended June 30, 2024. There were no non-cash investing activities for both the three and six months ended June 30, 2025, and 2024. Accrued Investment Income on Fixed Maturities, AFS and Mortgage Loans As of June 30, 2025 and December 31, 2024, the Company reported accrued investment income related to fixed maturities, AFS of $ 428 and $ 412 , respectively, and accrued investment income related to mortgage loans of $ 23 and $ 22 , respectively. These amounts are not included in the carrying value of the fixed maturities or mortgage loans. Investment income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible. The Company does not include the current accrued investment income balance when estimating the ACL. The Company has a policy to write-off accrued investment income balances that are more than 90 days past due. Write-offs of accrued investment income are recorded as a credit loss component of net realized gains and losses. Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment. For fixed maturities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an ACL for the portion of the unrealized loss related to the credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible. Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security. 27 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales. For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value (" LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. ACL on Fixed Maturities, AFS by Type Three Months Ended June 30, 2025 2024 (Before tax) CMBS Total Corporate CMBS Total Balance as of beginning of period $ 14 $ 14 $ 6 $ 12 $ 18 Credit losses on fixed maturities where an allowance was not previously recorded — — — 1 1 Balance as of end of period $ 14 $ 14 $ 6 $ 13 $ 19 ACL on Fixed Maturities, AFS by Type Six Months Ended June 30, 2025 2024 (Before tax) Corporate CMBS Total Corporate CMBS Total Balance as of beginning of period $ 3 $ 13 $ 16 $ 9 $ 12 $ 21 Credit losses on fixed maturities where an allowance was not previously recorded — — — — 1 1 Net increases (decreases) on fixed maturities where an allowance was previously recorded ( 3 ) 1 ( 2 ) 1 — 1 Write-offs charged against the allowance — — — ( 4 ) — ( 4 ) Balance as of end of period $ — $ 14 $ 14 $ 6 $ 13 $ 19 28 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Fixed Maturities, AFS Fixed Maturities, AFS, by Type June 30, 2025 December 31, 2024 Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value ABS $ 4,355 $ — $ 44 $ ( 23 ) $ 4,376 $ 3,948 $ — $ 28 $ ( 39 ) $ 3,937 CLOs 3,386 — 8 ( 1 ) 3,393 3,237 — 13 — 3,250 CMBS 2,758 ( 14 ) 24 ( 183 ) 2,585 2,976 ( 13 ) 21 ( 248 ) 2,736 Corporate 22,962 — 289 ( 726 ) 22,525 21,555 ( 3 ) 117 ( 1,033 ) 20,636 Foreign govt./govt. agencies 448 — 12 ( 5 ) 455 500 — 3 ( 23 ) 480 Municipal 4,985 — 55 ( 390 ) 4,650 5,574 — 77 ( 347 ) 5,304 RMBS 5,793 — 29 ( 309 ) 5,513 5,610 — 13 ( 393 ) 5,230 U.S. Treasuries 1,193 — 5 ( 137 ) 1,061 1,138 — — ( 144 ) 994 Total fixed maturities, AFS $ 45,880 $ ( 14 ) $ 466 $ ( 1,774 ) $ 44,558 $ 44,538 $ ( 16 ) $ 272 $ ( 2,227 ) $ 42,567 Fixed Maturities, AFS, by Contractual Maturity Year June 30, 2025 December 31, 2024 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,475 $ 1,473 $ 1,308 $ 1,298 Over one year through five years 9,893 9,896 9,564 9,414 Over five years through ten years 8,167 8,065 7,687 7,334 Over ten years 10,053 9,257 10,208 9,368 Subtotal 29,588 28,691 28,767 27,414 Mortgage-backed and asset-backed securities 16,292 15,867 15,771 15,153 Total fixed maturities, AFS $ 45,880 $ 44,558 $ 44,538 $ 42,567 Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e., prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. Concentration of Credit Risk The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of June 30, 2025 or December 31, 2024 other than U.S. government securities and certain U.S. government agencies. 29 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Unrealized Losses on Fixed Maturities, AFS Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of June 30, 2025 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 548 $ ( 6 ) $ 248 $ ( 17 ) $ 796 $ ( 23 ) CLOs 555 ( 1 ) — — 555 ( 1 ) CMBS 107 ( 5 ) 2,065 ( 178 ) 2,172 ( 183 ) Corporate 3,289 ( 66 ) 7,372 ( 660 ) 10,661 ( 726 ) Foreign govt./govt. agencies 50 — 85 ( 5 ) 135 ( 5 ) Municipal 1,034 ( 35 ) 2,427 ( 355 ) 3,461 ( 390 ) RMBS 982 ( 14 ) 2,548 ( 295 ) 3,530 ( 309 ) U.S. Treasuries 229 ( 8 ) 577 ( 129 ) 806 ( 137 ) Total fixed maturities, AFS in an unrealized loss position $ 6,794 $ ( 135 ) $ 15,322 $ ( 1,639 ) $ 22,116 $ ( 1,774 ) Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2024 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 1,088 $ ( 14 ) $ 407 $ ( 25 ) $ 1,495 $ ( 39 ) CLOs 78 — — — 78 — CMBS 228 ( 4 ) 2,299 ( 244 ) 2,527 ( 248 ) Corporate 5,883 ( 138 ) 8,212 ( 895 ) 14,095 ( 1,033 ) Foreign govt./govt. agencies 165 ( 5 ) 178 ( 18 ) 343 ( 23 ) Municipal 1,263 ( 27 ) 2,712 ( 320 ) 3,975 ( 347 ) RMBS 1,297 ( 29 ) 2,672 ( 364 ) 3,969 ( 393 ) U.S. Treasuries 406 ( 26 ) 461 ( 118 ) 867 ( 144 ) Total fixed maturities, AFS in an unrealized loss position $ 10,408 $ ( 243 ) $ 16,941 $ ( 1,984 ) $ 27,349 $ ( 2,227 ) As of June 30, 2025, fixed maturities, AFS in an unrealized loss position consisted of 3,135 instruments and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date. As of June 30, 2025, 93 % of these fixed maturities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during the six months ended June 30, 2025, was primarily attributable to lower interest rates. Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, municipal bonds, and RMBS, which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows. Mortgage Loans ACL on Mortgage Loans 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. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects 30 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The Company's process also considers qualitative factors. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios. When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. During the period in which all or a portion of the mortgage loan is determined to be uncollectible, the ACL is written off against the amortized cost. There were no mortgage loans held-for-sale as of June 30, 2025 or December 31, 2024. In addition, for the three and six months ended June 30, 2025 and 2024, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract or with borrowers experiencing financial difficulties. The one mortgage loan extension that was granted over the past twelve months to a borrower that was experiencing financial difficulties is current and performing in conjunction with the modified terms. ACL on Mortgage Loans Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ACL as of beginning of period $ 43 $ 48 $ 44 $ 51 Current period provision (release) — — — ( 3 ) Current period gross write-offs — — ( 1 ) — ACL as of June 30, $ 43 $ 48 $ 43 $ 48 The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 56 % as of June 30, 2025, while the weighted-average LTV ratio at origination of these loans was 59 %. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties. Mortgage Loans LTV & DSCR by Origination Year as of June 30, 2025 2025 2024 2023 2022 2021 2020 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR Greater than 80% $ 30 1.83 x $ 26 0.78 x $ — — x $ 15 0.80 x $ 37 1.00 x $ 144 1.58 x $ 252 1.39 x 65% - 80% 56 1.52 x 49 0.90 x 7 1.09 x 156 1.96 x 388 2.43 x 365 2.21 x 1,021 2.15 x Less than 65% 342 2.00 x 479 1.55 x 513 1.39 x 682 2.91 x 1,141 2.98 x 2,076 2.66 x 5,233 2.49 x Total mortgage loans $ 428 1.92 x $ 554 1.45 x $ 520 1.39 x $ 853 2.70 x $ 1,566 2.80 x $ 2,585 2.54 x $ 6,506 2.39 x [1] Amortized cost of mortgage loans excludes ACL of $ 43 . Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2024 2024 2023 2022 2021 2020 2019 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR Greater than 80% $ 25 0.63 x $ — — x $ 16 1.05 x $ 37 1.03 x $ — — x $ 110 1.68 x $ 188 1.34 x 65% - 80% 89 1.42 x 7 1.35 x 204 1.89 x 421 2.55 x 100 3.60 x 439 2.01 x 1,260 2.26 x Less than 65% 357 1.62 x 489 1.39 x 696 2.85 x 1,108 2.93 x 518 2.67 x 1,824 2.71 x 4,992 2.57 x Total mortgage loans $ 471 1.52 x $ 496 1.39 x $ 916 2.61 x $ 1,566 2.79 x $ 618 2.82 x $ 2,373 2.53 x $ 6,440 2.47 x [1] Amortized cost of mortgage loans excludes ACL of $ 44 . 31 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Mortgage Loans by Region June 30, 2025 December 31, 2024 Amortized Cost Percent of Total Amortized Cost Percent of Total East North Central $ 337 5.2 % $ 362 5.6 % Middle Atlantic 275 4.2 % 259 4.0 % Mountain 840 12.9 % 764 11.9 % New England 353 5.4 % 356 5.5 % Pacific 1,374 21.1 % 1,400 21.8 % South Atlantic 1,830 28.1 % 1,821 28.3 % West North Central 144 2.2 % 97 1.5 % West South Central 685 10.6 % 588 9.1 % Other [1] 668 10.3 % 793 12.3 % Total mortgage loans 6,506 100.0 % 6,440 100.0 % ACL ( 43 ) ( 44 ) Total mortgage loans, net of ACL $ 6,463 $ 6,396 [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type June 30, 2025 December 31, 2024 Amortized Cost Percent of Total Amortized Cost Percent of Total Commercial Industrial $ 2,904 44.6 % $ 2,737 42.5 % Multifamily 2,152 33.1 % 2,161 33.5 % Office 404 6.2 % 507 7.9 % Retail [1] 968 14.9 % 957 14.9 % Single Family 78 1.2 % 78 1.2 % Total mortgage loans 6,506 100.0 % 6,440 100.0 % ACL ( 43 ) ( 44 ) Total mortgage loans, net of ACL $ 6,463 $ 6,396 [1]Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls. Past-Due Mortgage Loans Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of June 30, 2025 and December 31, 2024, the Company held no mortgage loans considered past due. Mortgage Servicing The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of June 30, 2025, under this program, the Company serviced mortgage loans with a total outstanding principal of $ 10.1 billion, of which $ 4.8 billion was serviced on behalf of third parties and $ 5.3 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. As of December 31, 2024, the Company serviced mortgage loans with a total outstanding principal balance of $ 10.0 billion, of which $ 4.8 billion was serviced on behalf of third parties and $ 5.2 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $ 0 as of June 30, 2025 and December 31, 2024, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities or, at times, as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements. Consolidated VIEs As of June 30, 2025 and December 31, 2024, the Company did no t hold any securities for which it is the primary beneficiary. Non-Consolidated VIEs The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of June 30, 2025 and December 31, 2024 was limited to the total carrying value of $ 3.6 billion and $ 3.2 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets that are primarily recorded using the equity method of accounting. As of June 30, 2025 and December 31, 2024, the Company has outstanding commitments totaling $ 2.1 billion and $ 2.0 billion, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. For further discussion of these investments, see Equity Method 32 Table of Contents Note 5 - Investments The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Investments within Note 5 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2024 Form 10-K Annual Report. Furthermore, the Company makes investments in entities that sponsor affordable housing projects. Similarly, for these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company applies the proportional amortization method to subsequently measure its investments in such qualified affordable housing projects, where costs are amortized over the period in which the investor expects to receive tax credits and the resulting amortization is recognized as a component of income tax expense on the Company's Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2025, the Company recognized amortization of $ 4 and $ 8 , respectively, and related tax benefits of $ 7 and $ 13 , respectively. For the three and six months ended June 30, 2024, the Company recognized amortization of $ 1 and $ 2 , respectively, and related tax benefits of $ 3 and $ 5 , respectively. The income tax credits and other income tax benefits are recognized in operating activities in the Condensed Consolidated Statement of Cash Flows. The carrying value of these investments, which are reported in other assets on the Company’s Condensed Consolidated Balance Sheets was $ 84 and $ 51 as of June 30, 2025, and December 31, 2024, respectively. As of June 30, 2025 and December 31, 2024, the Company has outstanding commitments related to affordable housing projects of $ 226 and $ 267 , respectively, that are contingent on various conditions precedent to funding. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS, and RMBS and are reported in fixed maturities, AFS, and FVO securities on the Company's Condensed Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Collateral Transactions and Restricted Investments Collateral Transactions As of both June 30, 2025 and December 31, 2024, the Company pledged collateral of $ 1 , of U.S. government securities or cash primarily related to certain bank loan participations committed through a limited partnership agreement. For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 6 - Derivatives of Notes to Condensed Consolidated Financial Statements. Other Restricted Investments The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Lloyd's is an insurance market-place operating worldwide. Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"). The following table presents the components of the Company’s exposure to other restricted investments. June 30, 2025 December 31, 2024 Fair Value Fair Value Securities on deposit with government agencies $ 2,504 $ 2,362 Fixed maturities in trust for benefit of Lloyd's Syndicate policyholders 1,090 1,056 Short-term investments in trust for benefit of Lloyd's Syndicate policyholders 36 25 Other investments 71 61 Total Other Restricted Investments $ 3,701 $ 3,504 33 Table of Contents Note 6 - Derivatives The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 6. Derivatives The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate or volatility. Replication transactions may be used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in 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. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on variable-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the $ 500 junior subordinated debentures due 2067 to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to Consolidated Financial Statements, included in The Hartford's 2024 Form 10-K Annual Report. Foreign currency swaps are used to convert foreign currency denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency, and equity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting. The non-qualifying strategies include: Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Interest Rate Swaps and Futures The Company uses interest rate swaps and, to a lesser extent, futures to manage interest rate duration between assets and liabilities. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of June 30, 2025 and December 31, 2024, the notional amount of interest rate swaps in offsetting relationships was $ 333 and $ 344 , respectively. Foreign Currency Swaps The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. Equity Index Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which payments or receipts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. 34 Table of Contents Note 6 - Derivatives The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Jun 30, 2025 Dec. 31, 2024 Jun 30, 2025 Dec. 31, 2024 Jun 30, 2025 Dec. 31, 2024 Jun 30, 2025 Dec. 31, 2024 Cash flow hedges Interest rate swaps $ 3,975 $ 4,225 $ 1 $ — $ 1 $ — $ — $ — Foreign currency swaps 590 646 ( 12 ) 41 21 52 ( 33 ) ( 11 ) Total cash flow hedges 4,565 4,871 ( 11 ) 41 22 52 ( 33 ) ( 11 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 333 344 ( 2 ) — — 1 ( 2 ) ( 1 ) Foreign exchange contracts Foreign currency swaps 590 647 — — — — — — Credit contracts Credit derivatives in offsetting positions 985 986 — — 28 31 ( 28 ) ( 31 ) Equity contracts Equity index options 943 233 5 4 5 4 — — Total non-qualifying strategies 2,851 2,210 3 4 33 36 ( 30 ) ( 32 ) Total cash flow hedges and non-qualifying strategies $ 7,416 $ 7,081 $ ( 8 ) $ 45 $ 55 $ 88 $ ( 63 ) $ ( 43 ) Balance Sheet Location Fixed maturities, AFS $ 590 $ 647 $ — $ — $ — $ — $ — $ — Other investments 1,640 3,011 35 57 43 66 ( 8 ) ( 9 ) Other liabilities 5,186 3,423 ( 43 ) ( 12 ) 12 22 ( 55 ) ( 34 ) Total derivatives $ 7,416 $ 7,081 $ ( 8 ) $ 45 $ 55 $ 88 $ ( 63 ) $ ( 43 ) Offsetting of Derivative Assets/Liabilities The following tables present the gross fair value amounts, the offsetting amounts, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Offsetting amounts include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP. 35 Table of Contents Note 6 - Derivatives The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of June 30, 2025 Other investments $ 55 $ 50 $ 35 $ ( 30 ) $ — $ 5 Other liabilities $ ( 63 ) $ ( 40 ) $ ( 43 ) $ 20 $ ( 21 ) $ ( 2 ) As of December 31, 2024 Other investments $ 88 $ 86 $ 57 $ ( 55 ) $ — $ 2 Other liabilities $ ( 43 ) $ ( 42 ) $ ( 12 ) $ 11 $ ( 1 ) $ — [1] Included in other investments in the Company's Condensed Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Gains (Losses) Recognized in OCI Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest rate swaps $ 3 $ ( 4 ) $ 13 $ ( 21 ) Foreign currency swaps ( 43 ) 15 ( 49 ) 32 Total $ ( 40 ) $ 11 $ ( 36 ) $ 11 Gains (Losses) Reclassified from AOCI into Income Three months ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Interest rate swaps $ ( 2 ) $ 3 $ ( 8 ) $ 5 $ ( 4 ) $ 6 $ ( 15 ) $ 9 Foreign currency swaps 2 — 3 — 5 — 6 — Total $ — $ 3 $ ( 5 ) $ 5 $ 1 $ 6 $ ( 9 ) $ 9 Total amounts presented on the Condensed Consolidated Statement of Operations $ 664 $ 50 $ 602 $ 50 $ 1,320 $ 100 $ 1,195 $ 100 36 Table of Contents Note 6 - Derivatives The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) As of June 30, 2025, the before tax deferred net losses on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $ 21 . This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. At that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income or interest expense, as applicable, over the term of the hedged instrument cash flows. During the three and six months ended June 30, 2025 and 2024, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. Non-qualifying Strategies For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses). Non-Qualifying Strategies Recognized within Net Realized Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest rate contracts Interest rate swaps and futures $ ( 1 ) $ ( 6 ) $ ( 2 ) $ ( 3 ) Equity contracts Equity index options ( 10 ) — ( 9 ) ( 5 ) Total [1] $ ( 11 ) $ ( 6 ) $ ( 11 ) $ ( 8 ) [1]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. Credit Risk Assumed through Credit Derivatives The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk may primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. 37 Table of Contents Note 6 - Derivatives The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of June 30, 2025 Basket credit default swaps [4] Investment grade risk exposure $ 100 $ 1 3 years CMBS Credit AAA $ 100 $ ( 1 ) Below investment grade risk exposure 392 27 3 years Corporate Credit B+ 392 ( 27 ) Below investment grade risk exposure 1 ( 1 ) Less than 1 year CMBS Credit CCC 1 1 Total [5] $ 493 $ 27 $ 493 $ ( 27 ) As of December 31, 2024 Basket credit default swaps [4] Investment grade risk exposure $ 100 $ — 4 years CMBS Credit AAA $ 100 $ — Below investment grade risk exposure 392 30 3 years Corporate Credit B+ 392 ( 30 ) Below investment grade risk exposure 1 ( 1 ) Less than 1 year CMBS Credit CCC 1 1 Total [5] $ 493 $ 29 $ 493 $ ( 29 ) [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. Derivative Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of June 30, 2025 and December 31, 2024, the Company ha s pl edged cash collateral associated with derivative instruments of $ 27 and $ 31 , respectively . In general, collateral receivable is recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of June 30, 2025 and December 31, 2024, the Company pledged securities collateral associated with derivative instruments with a fair value of $ 23 and $ 1 , respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities. In addition, as of June 30, 2025 and December 31, 2024, the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $ 12 and $ 10 , respectively, which is recorded in other investments or other assets on the Company's Condensed Consolidated Balance Sheets. As of June 30, 2025 and December 31, 2024, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $ 104 and $ 103 , respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets. As of June 30, 2025 and December 31, 2024, the Company accepted cash collateral associated with derivative instruments of $ 40 and $ 78 , respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. Also, as of June 30, 2025 and December 31, 2024, the Company did no t hold securities collateral. 38 Table of Contents Note 7 - Premiums Receivable and Agents' Balances The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 7. Premiums Receivable and Agents' Balances Premiums Receivable and Agents' Balances As of June 30, 2025 As of December 31, 2024 Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business") $ 6,347 $ 5,624 Receivables for loss sensitive business, by credit quality: AA 94 97 A 56 57 BBB 196 193 BB 91 94 Below BB 49 50 Total receivables for loss sensitive business 486 491 Total Premiums Receivable and Agents' Balances, Gross 6,833 6,115 ACL ( 135 ) ( 117 ) Total Premiums Receivable and Agents' Balances, Net of ACL $ 6,698 $ 5,998 ACL on Premiums Receivable and Agents' Balances Premiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. A portion of the Company's Business Insurance business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business"). Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight. The ACL for receivables for loss sensitive business is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default and the amount of loss given a default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other credit enhancement, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss sensitive business considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 5 - Investments Rollforward of ACL on Premiums Receivable and Agents' Balances for the Three Months Ended June 30, 2025 June 30, 2024 Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total Beginning ACL $ 105 $ 21 $ 126 $ 91 $ 20 $ 111 Current period provision 24 1 25 15 1 16 Current period write-offs ( 18 ) — ( 18 ) ( 12 ) — ( 12 ) Current period recoveries 2 — 2 1 — 1 Ending ACL $ 113 $ 22 $ 135 $ 95 $ 21 $ 116 39 Table of Contents Note 7 - Premiums Receivable and Agents' Balances The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Rollforward of ACL on Premiums Receivable and Agents' Balances for the Six Months Ended June 30, 2025 June 30, 2024 Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total Receivables Excluding Receivables for Loss Sensitive Business Receivables for Loss Sensitive Business Total Beginning ACL $ 97 $ 20 $ 117 $ 89 $ 20 $ 109 Current period provision 47 2 49 30 1 31 Current period write-offs ( 35 ) — ( 35 ) ( 27 ) — ( 27 ) Current period recoveries 4 — 4 3 — 3 Ending ACL $ 113 $ 22 $ 135 $ 95 $ 21 $ 116 8. Reinsurance The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. Reinsurance Recoverables Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and LAE reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported (" IBNR ") unpaid losses. The Company’s estimate of losses and LAE reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how IBNR unpaid losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses. Reinsurance Recoverables by Credit Quality Indicator As of June 30, 2025 As of December 31, 2024 P&C Employee Benefits Corporate Total P&C Employee Benefits Corporate Total A.M. Best Financial Strength Rating A++ $ 2,200 $ — $ — $ 2,200 $ 2,271 $ — $ — $ 2,271 A+ 2,257 283 217 2,757 2,169 281 224 2,674 A 755 1 — 756 829 1 — 830 A- 615 3 — 618 622 4 — 626 B++ 2 — 2 4 2 — 2 4 Below B++ 22 — — 22 22 — — 22 Total Rated by A.M. Best 5,851 287 219 6,357 5,915 286 226 6,427 Mandatory (Assigned) and Voluntary Risk Pools 204 — — 204 205 — — 205 Captives 425 — — 425 402 — — 402 Other not rated companies 183 6 — 189 176 5 — 181 Gross Reinsurance Recoverables 6,663 293 219 7,175 6,698 291 226 7,215 Allowance for uncollectible reinsurance ( 72 ) ( 1 ) ( 2 ) ( 75 ) ( 72 ) ( 1 ) ( 2 ) ( 75 ) Net Reinsurance Recoverables $ 6,591 $ 292 $ 217 $ 7,100 $ 6,626 $ 290 $ 224 $ 7,140 Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating. Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured 40 Table of Contents Note 8 - Reinsurance The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) trusts, funds held accounts and group wide offsets. As part of its reinsurance recoverable review, the Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers and the overall credit quality of the Company’s reinsurers. Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period. The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. The ACL is estimated as the amount of reinsurance recoverables exposed to loss multiplied by estimated factors for the probability of default and the amount of loss given a default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed on a quarterly basis and any significant changes are reflected in an updated estimate. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders. As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members. The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 5 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital (" RBC ") to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults. Allowance for Uncollectible Reinsurance for the Three and Six Months Ended Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 P&C beginning allowance for uncollectible reinsurance $ 72 $ 98 $ 72 $ 100 Beginning allowance for disputed amounts 52 54 48 57 P&C beginning ACL 20 44 24 43 Current period provision (release) 1 1 ( 3 ) 2 P&C ending ACL 21 45 21 45 Ending allowance for disputed amounts 51 54 51 54 P&C ending allowance for uncollectible reinsurance 72 99 72 99 Employee Benefits allowance for uncollectible reinsurance 1 1 1 1 Corporate allowance for uncollectible reinsurance 2 2 2 2 Total allowance for uncollectible reinsurance $ 75 $ 102 $ 75 $ 102 41 Table of Contents Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 9. Reserve for Unpaid Losses and Loss Adjustment Expenses Property & Casualty Insurance Product Reserves, Net of Reinsurance Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2025 2024 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 36,404 $ 34,044 Reinsurance and other recoverables 6,753 6,696 Beginning liabilities for unpaid losses and loss adjustment expenses, net 29,651 27,348 Provision for unpaid losses and loss adjustment expenses Current accident year 5,670 5,088 Prior accident year development [1] ( 309 ) ( 171 ) Total provision for unpaid losses and loss adjustment expenses 5,361 4,917 Change in deferred gain on retroactive reinsurance included in other liabilities [1] 56 61 Payments Current accident year ( 1,175 ) ( 987 ) Prior accident years ( 3,205 ) ( 2,849 ) Total payments ( 4,380 ) ( 3,836 ) Foreign currency adjustment 39 ( 9 ) Ending liabilities for unpaid losses and loss adjustment expenses, net 30,727 28,481 Reinsurance and other recoverables 6,631 6,656 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 37,358 $ 35,137 [1] Prior accident year development for the six months ended June 30, 2025 and 2024 included a $ 56 and $ 61 benefit for amortization of a deferred gain under retroactive reinsurance accounting, respectively, related to the Navigators Adverse Development Cover (the "Navigator's ADC"). For additional information regarding the ADC reinsurance agreement, refer to "Change in Deferred Gain on Retroactive Reinsurance" discussion below. 42 Table of Contents Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2025 2024 Workers’ compensation $ ( 126 ) $ ( 119 ) Workers’ compensation discount accretion 23 23 General liability — 49 Marine — ( 1 ) Package business — ( 1 ) Commercial property ( 23 ) ( 5 ) Professional liability ( 11 ) ( 7 ) Bond ( 22 ) ( 22 ) Assumed reinsurance — 24 Commercial automobile liability — 10 Personal automobile liability ( 22 ) ( 13 ) Homeowners ( 31 ) ( 10 ) Net asbestos and environmental ("A&E") reserves — — Catastrophes ( 39 ) ( 38 ) Uncollectible reinsurance — — Other reserve re-estimates, net ( 2 ) — Prior accident year development before change in deferred gain ( 253 ) ( 110 ) Change in deferred gain on retroactive reinsurance included in other liabilities [1] ( 56 ) ( 61 ) Total prior accident year development $ ( 309 ) $ ( 171 ) [1] The $ 56 and $ 61 change in deferred gain on retroactive reinsurance for the six months ended June 30, 2025 and 2024, respectively, is related to amortization of the Navigators ADC deferred gain. For additional information regarding the ADC reinsurance agreement, refer to "Change in Deferred Gain on Retroactive Reinsurance" discussion below. Re-estimates of prior accident year reserves for the six months ended June 30, 2025 Workers’ compensation reserves were decreased within the 2016 to 2021 accident years primarily in small business, driven by lower than previously estimated claim severity. Commercial property reserves were decreased primarily within accident years 2023 and 2024 as a result of lower than expected severity. Professional liability reserves were decreased due to favorable development on directors and officers ("D&O") claims driven by the 2020 to 2023 accident years, partially offset by deterioration in employment practices liability and errors and omissions ("E&O") claims across multiple accident years. Bond reserves decreased due primarily to favorable development on commercial and contract surety bonds driven by accident years 2019 to 2021. Personal automobile liability reserves were decreased primarily within accident years 2020 to 2023 as a result of lower than expected severity. Homeowners reserves were decreased primarily due to favorable severity impacting accident year 2024. Catastrophes reserves were decreased across Business Insurance and Personal Insurance primarily driven by a reduction in reserves in accident years 2021 to 2024, including favorable emergence related to various hail events. Other reserve re-estimates, net, were decreased due to lower than expected severity on Personal Insurance automobile physical damage for accident year 2024, partially offset by unfavorable development from participation in involuntary market pools. Re-estimates of prior accident year reserves for the six months ended June 30, 2024 Workers’ compensation reserves were decreased within the 2016 to 2020 accident years primarily in small business, driven by lower than previously estimated claim severity. In addition, the 2020 accident year includes a $ 20 reduction of COVID-19 related reserves driven by favorable claim count emergence. General liability reserves were increased primarily in response to higher frequency of large losses within certain lines in the 2016 to 2019 accident years, with some modest increases in the more recent accident years. In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years. Lastly, reserves for extra contractual liability claims and other miscellaneous run-off lines were reduced in response to recent favorable loss activity. Professional liability reserves decreased modestly due to favorable development on D&O claims driven by the 2020 to 2022 accident years, partially offset by deterioration in older accident years. Bond reserves decreased due to favorable development on commercial and contract surety driven by accident years 2019 and prior. Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America surety and Latin America P&C businesses related to the 2020 to 2023 accident years. Automobile liability reserves - Business Insurance increased primarily due to adverse loss development within accident year 2022 driven by higher severity than estimated. Automobile liability reserves - Personal Insurance were decreased primarily in response to better than anticipated accident year 2023 claim severity for property damage liability. Catastrophes reserves were decreased primarily within Business Insurance driven by a reduction in reserves in accident years 2021 to 2022 related to favorable emergence related to various hail events, as well as favorable development in accident year 2022 related to Hurricane Ian. Other reserve re-estimates, net, included a decrease in reserves due to lower severity than expected on Personal 43 Table of Contents Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Insurance automobile physical damage for accident year 2023, offset by an increase in reserves related to unfavorable development from participation in involuntary market pools. Settlement Agreement with Boy Scouts of America On February 14, 2022, the Company executed a final settlement agreement (the “Settlement”) with the Boy Scouts of America ("BSA"), the Local Councils, and the attorneys representing a majority of the alleged victims, pursuant to which The Hartford agreed to pay $ 787 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford writing companies in the 1970s and early 1980s. In exchange for its payment, the Company receives a complete release of its policies issued to BSA and the Local Councils, as well as an injunction against further abuse claims involving BSA. All conditions precedent to the Settlement have been satisfied, including approval by the bankruptcy court and the district court, and on April 20, 2023, The Hartford paid the Settlement amount of $ 787 . Certain objecting parties appealed the district court’s ruling. As to issues material to The Hartford’s settlement, the Third Circuit has dismissed those appeals as moot. The objecting parties' only remaining option is to petition by September 11, 2025, for U.S. Supreme Court review. If a petition is filed and the U.S. Supreme Court agrees to hear the case, the court approvals for the BSA’s plan of reorganization could be open to challenge, and it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s operating results. Change in Deferred Gain on Retroactive Reinsurance The Company has in place an ADC reinsurance agreement that covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the “Navigators ADC”) up to an aggregate limit of $ 300 , for which the Company had previously ceded the available limit. The Company has collected recoveries from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., and as a result amortized $ 24 and $ 56 of the deferred gain within benefits, losses and loss adjustment expenses during the three and six months ended June 30, 2025, respectively, and amortized $ 37 and $ 61 during the three and six months ended June 30, 2024, respectively. 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. Group Life, Disability and Accident Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2025 2024 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,206 $ 8,274 Reinsurance recoverables 282 254 Beginning liabilities for unpaid losses and loss adjustment expenses, net 7,924 8,020 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,692 2,662 Prior year's discount accretion 105 103 Prior incurral year development [1] ( 377 ) ( 339 ) Total provision for unpaid losses and loss adjustment expenses [2] 2,420 2,426 Payments Current incurral year ( 1,076 ) ( 1,071 ) Prior incurral years ( 1,430 ) ( 1,455 ) Total payments ( 2,506 ) ( 2,526 ) Ending liabilities for unpaid losses and loss adjustment expenses, net 7,838 7,920 Reinsurance recoverables 286 266 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,124 $ 8,186 [1] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [2] Includes unallocated loss adjustment expenses ("ULAE") of $ 88 and $ 92 for the six months ended June 30, 2025 and 2024, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations . 44 Table of Contents Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Re-estimates of prior incurral years reserves for the six months ended June 30, 2025 Group disability - Prior period reserve estimates decreased by approximately $ 307 driven by strong long-term disability claim recoveries, paid family medical leave incidence lower than prior assumptions, as well as a higher New York paid family leave risk adjustment benefit than expected. Group life and accident (including group life premium waiver) - Prior period reserve estimates decreased by approximately $ 69 driven by favorable mortality emergence in both group term life and group accidental death and dismemberment, and continued low incidence in group life premium waiver. Re-estimates of prior incurral years reserves for the six months ended June 30, 2024 Group disability- Prior period reserve estimates decreased by approximately $ 282 largely driven by group long-term disability claim incidence lower than prior assumptions and favorable recoveries on prior incurral year claims, as well as a higher New York paid family leave risk adjustment benefit than expected. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $ 56 largely driven by favorable mortality emergence and continued low incidence in group life premium waiver. 10. Reserve for Future Policy Benefits Rollforward of Reserve for Future Policy Benefits For the six months ended June 30, 2025 2024 Payout Annuities Life Conversions Paid-up Life Payout Annuities Life Conversions Paid-up Life Present Value of Expected Net Premiums Balance, beginning of the period $ 45 $ 49 Balance, ending of the period $ 43 $ 45 Present Value of Expected Future Policy Benefits Beginning balance at single-A rate $ 128 $ 106 $ 168 $ 137 $ 113 $ 185 Beginning adjustment for changes in single-A rate — ( 15 ) ( 33 ) 7 ( 11 ) ( 32 ) Beginning balance at original discount rate 128 121 201 130 124 217 Effect of changes in cash flow assumptions — — — — — — Effect of actual variances from expected experience ( 2 ) 3 ( 1 ) 1 2 — Adjusted beginning balance 126 124 200 131 126 217 Interest accrual and other 3 11 3 3 9 3 Benefit Payments ( 6 ) ( 16 ) ( 12 ) ( 6 ) ( 16 ) ( 12 ) Ending balance at original discount rate 123 119 191 128 119 208 Ending adjustment for changes in single-A rate 1 ( 15 ) ( 28 ) 1 ( 14 ) ( 36 ) Ending balance at single-A rate $ 124 $ 104 $ 163 $ 129 $ 105 $ 172 Net reserve for future policy benefits $ 124 $ 61 $ 163 $ 129 $ 60 $ 172 Weighted-average duration of the reserve for future policy benefits (years) 9.3 11.0 6.5 9.0 11.5 6.3 Net Reserve for Future Policy Benefits As of June 30, 2025 2024 Payout Annuities $ 124 $ 129 Life Conversions 61 60 Paid-up Life 163 172 Deferred Profit Liability 19 20 Other 76 83 Total $ 443 $ 464 45 Table of Contents Note 10 - Reserve for Future Policy Benefits The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Undiscounted Expected Future Gross Premiums and Benefit Payments As of June 30, 2025 2024 Payout Annuities [1] Expected future benefit payments $ 242 $ 252 Life Conversions Expected future gross premiums $ 102 $ 109 Expected future benefit payments $ 192 $ 199 Paid-up Life [1] Expected future benefit payments $ 249 $ 268 [1] Payout Annuities and Paid-up Life have no expected future gross premiums. Weighted-Average Interest Rates As of June 30, 2025 2024 Payout Annuities Interest accretion rate 5.6 % 5.6 % Current discount rate 5.4 % 5.5 % Life Conversions Interest accretion rate 4.3 % 4.2 % Current discount rate 5.6 % 5.5 % Paid-up Life Interest accretion rate 2.9 % 2.9 % Current discount rate 5.0 % 5.4 % Gross premiums and interest accretion recognized on long-duration insurance policies for the six months ended June 30, 2025 and 2024 were immaterial. 11. Other Policyholder Funds and Benefits Payable Other policyholder funds and benefits payable of $ 612 and $ 622 as of June 30, 2025 and 2024 respectively, included universal life long-duration contracts of $ 201 and $ 210 as well as policyholder balances related to short-duration contracts of $ 411 and $ 412 . The universal life long-duration contracts presented in the table below were economically ceded to Prudential as part of the sale of the Company's former individual life business, which closed in 2013. Universal Life Long Duration Contracts Rollforward For the six months ended June 30, 2025 2024 Balance, beginning of the period $ 206 $ 223 Premiums Received 6 6 Policy Charges ( 9 ) ( 13 ) Surrenders and Withdrawals ( 3 ) ( 4 ) Benefit Payments ( 3 ) ( 6 ) Interest Credited 4 4 Balance, end of the period $ 201 $ 210 Weighted-average crediting rate 4.3 % 4.2 % Net Amount at Risk [1] $ 791 $ 870 Cash Surrender Value $ 199 $ 209 [1] Net amount at risk is defined as the current death benefit in excess of the current account value as of the balance sheet date. As of June 30, 2025 and 2024, universal life contracts of $ 199 and $$ 209 , respectively, had crediting rates at their guaranteed minimums ranging from 4 %- 5 % . 46 Table of Contents Note 12 - Income Taxes The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 12. Income Taxes Income Tax Expense Income Tax Rate Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Tax provision at U.S. federal statutory rate $ 261 $ 192 $ 426 $ 383 Nontaxable net investment income ( 9 ) ( 11 ) ( 14 ) ( 22 ) Other ( 1 ) ( 7 ) ( 8 ) ( 29 ) Provision for income taxes $ 251 $ 174 $ 404 $ 332 Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Balance, beginning of period $ 24 $ 27 $ 24 $ 26 Gross increases - tax positions in current period 1 — 1 1 Balance, end of period $ 25 $ 27 $ 25 $ 27 The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The Company believes it is reasonably possible approximately $ 14 of its currently unrecognized tax benefits may be recognized by the end of 2025 as a result of a lapse of the applicable statute of limitations. Other Tax Matters H.R.1 , known as the “One Big Beautiful Bill Act” was signed into law on July 4, 2025. 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. The changes in H.R.1 are not expected to have a material impact on the Company's results of operations. The federal statute of limitations for the Company is closed through the 2020 tax year with the exception of net operating loss carryforwards utilized in open tax years and the Navigators pre-acquisition 2019 tax period. Management believes that adequate provision has been made in the Company's Condensed Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. 13. Commitments and Contingencies Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. Litigation The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties related to sexual molestation and sexual abuse claims, including those discussed in Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of this Form 10-Q and in Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses, of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in the following discussion under the caption “Run-off Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford. The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile and property. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. 47 Table of Contents Note 13 - Commitments and Contingencies The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Run-off Asbestos and Environmental Claims The Company continues to receive A&E claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs. The vast majority of the Company's exposure to A&E relates to accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E"). In addition, since 1986, the Company has written A&E exposures under general liability policies and pollution liability under homeowners policies, which are reported in the Business Insurance and Personal Insurance segments, respectively. Prior to 1986, the Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages. Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent and emerging legal doctrines with respect to the underlying claims and with respect to the Company's coverage obligations. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers, insolvencies of insureds and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future. In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages against insureds, emerging risks from products and substances alleged to cause damage, such as per-and polyfluoroalkyl substances ("PFAS"), the risks inherent in major litigation, inconsistent and emerging legal doctrines concerning the existence and scope of coverage for environmental claims, and the scope and level of complexity of the remediation required by regulators. The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves. It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims. Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity. For its Run-off A&E claims, as of June 30, 2025, the Company reported $ 141 of net A&E reserves, including the benefit of losses ceded to the A&E ADC with NICO. In addition, the Company has recorded a $ 850 deferred gain within other liabilities for losses economically ceded to NICO but for which the benefit is not recognized in earnings until later periods. While the Company believes that its current Run-off A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results or liquidity. The Company’s A&E ADC reinsurance agreement reinsures substantially all A&E reserve development for 2016 and prior accident years, including Run-off A&E and A&E reserves included in Business Insurance and Personal Insurance. The A&E ADC has a coverage limit of $ 1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $ 1.7 billion. As of June 30, 2025 , the Company has incurred $ 1.5 billion in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty, leaving no remaining coverage available for future adverse net reserve development, if any. Cumulative adverse development of A&E claims for accident years 2016 and prior in excess of the treaty limit are absorbed as a charge to earnings by the Company. The effect of future charges could be material to the Company’s consolidated operating results or liquidity. For more information on the A&E ADC, refer to Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements included in the Company's 2024 Form 10-K Annual Report. 48 Table of Contents Note 13 - Commitments and Contingencies The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Derivative Commitments Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could, in certain instances, terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of June 30, 2025 was $ 57 for which the legal entities have posted collateral of $ 50 in the normal course of business. Based on derivative contractual terms as of June 30, 2025, a downgrade of the current financial strength ratings by either Moody's or S&P would no t require additional assets to be posted as collateral. This requirement could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the additional collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities. 14. Equity Equity Repurchase Program During the six months ended June 30, 2025 and 2024, the Company repurchased $ 800 ( 6.8 million shares) and $ 700 ( 7.3 million shares), respectively, of common stock under Board authorized share repurchase programs covering the applicable periods. As of June 30, 2025, the Company has $ 2.35 billion remaining for equity repurchases under the current $ 3.3 billion share repurchase program, which is effective until December 31, 2026. During the period July 1, 2025 through July 25, 2025, the Company repurchased $ 146 ( 1.2 million common shares) under this repurchase program. The timing of any repurchases of shares is dependent on several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations . 15. Changes In and Reclassifications From Accumulated Other Comprehensive Income (Loss) Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2025 Changes in Net Unrealized Gain (Loss) on Fixed Maturities, AFS Unrealized Losses on Fixed Maturities, AFS with ACL Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Liability for Future Policy Benefits Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ ( 1,237 ) $ ( 6 ) $ 40 $ 29 $ 30 $ ( 1,436 ) $ ( 2,580 ) OCI before reclassifications 237 1 ( 40 ) 20 ( 1 ) ( 1 ) 216 Amounts reclassified from AOCI 26 — ( 3 ) — — 9 32 OCI, before tax 263 1 ( 43 ) 20 ( 1 ) 8 248 Income tax benefit (expense) ( 55 ) — 9 ( 4 ) — ( 2 ) ( 52 ) OCI, net of tax 208 1 ( 34 ) 16 ( 1 ) 6 196 Ending balance $ ( 1,029 ) $ ( 5 ) $ 6 $ 45 $ 29 $ ( 1,430 ) $ ( 2,384 ) 49 Table of Contents Note 15 - Accumulated Other Comprehensive Income (Loss) The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2025 Changes in Net Unrealized Gain (Loss) on Fixed Maturities, AFS Unrealized Losses on Fixed Maturities, AFS with ACL Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Liability for Future Policy Benefits Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ ( 1,539 ) $ ( 6 ) $ 40 $ 29 $ 33 $ ( 1,443 ) $ ( 2,886 ) OCI before reclassifications 610 1 ( 36 ) 20 ( 5 ) — 590 Amounts reclassified from AOCI 36 — ( 7 ) — — 16 45 OCI, before tax 646 1 ( 43 ) 20 ( 5 ) 16 635 Income tax benefit (expense) ( 136 ) — 9 ( 4 ) 1 ( 3 ) ( 133 ) OCI, net of tax 510 1 ( 34 ) 16 ( 4 ) 13 502 Ending balance $ ( 1,029 ) $ ( 5 ) $ 6 $ 45 $ 29 $ ( 1,430 ) $ ( 2,384 ) Reclassifications from AOCI Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain (Loss) on Fixed Maturities, AFS Fixed Maturities, AFS $ ( 26 ) $ ( 36 ) Net realized losses ( 26 ) ( 36 ) Total before tax ( 5 ) ( 8 ) Income tax expense $ ( 21 ) $ ( 28 ) Net income Net Gain (Loss) on Cash Flow Hedging Instruments Interest rate swaps $ ( 2 ) $ ( 4 ) Net investment income Interest rate swaps 3 6 Interest expense Foreign currency swaps 2 5 Net investment income 3 7 Total before tax — 1 Income tax expense $ 3 $ 6 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss ( 10 ) ( 19 ) Insurance operating costs and other expenses ( 9 ) ( 16 ) Total before tax ( 2 ) ( 3 ) Income tax expense $ ( 7 ) $ ( 13 ) Net income Total amounts reclassified from AOCI $ ( 25 ) $ ( 35 ) Net income Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2024 Changes in Net Unrealized Gain (Loss) on Fixed Maturities, AFS Unrealized Losses on Fixed Maturities, AFS with ACL Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Liability for Future Policy Benefits Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ ( 1,642 ) $ ( 7 ) $ 21 $ 36 $ 30 $ ( 1,435 ) $ ( 2,997 ) OCI before reclassifications ( 184 ) — 11 ( 1 ) 6 ( 1 ) ( 169 ) Amounts reclassified from AOCI 70 — — — — 9 79 OCI, before tax ( 114 ) — 11 ( 1 ) 6 8 ( 90 ) Income tax benefit (expense) 24 — ( 2 ) — ( 1 ) ( 2 ) 19 OCI, net of tax ( 90 ) — 9 ( 1 ) 5 6 ( 71 ) Ending balance $ ( 1,732 ) $ ( 7 ) $ 30 $ 35 $ 35 $ ( 1,429 ) $ ( 3,068 ) 50 Table of Contents Note 15 - Accumulated Other Comprehensive Income (Loss) The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2024 Changes in Net Unrealized Gain (Loss) on Fixed Maturities, AFS Unrealized Losses on Fixed Maturities, AFS with ACL Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Liability for Future Policy Benefits Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ ( 1,482 ) $ ( 8 ) $ 21 $ 37 $ 25 $ ( 1,442 ) $ ( 2,849 ) OCI before reclassifications ( 393 ) 1 11 ( 3 ) 13 1 ( 370 ) Amounts reclassified from AOCI 77 — — — — 16 93 OCI, before tax ( 316 ) 1 11 ( 3 ) 13 17 ( 277 ) Income tax benefit (expense) 66 — ( 2 ) 1 ( 3 ) ( 4 ) 58 OCI, net of tax ( 250 ) 1 9 ( 2 ) 10 13 ( 219 ) Ending balance $ ( 1,732 ) $ ( 7 ) $ 30 $ 35 $ 35 $ ( 1,429 ) $ ( 3,068 ) Reclassifications from AOCI Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain (Loss) on Fixed Maturities, AFS Fixed Maturities, AFS $ ( 70 ) $ ( 77 ) Net realized losses ( 70 ) ( 77 ) Total before tax ( 15 ) ( 16 ) Income tax expense $ ( 55 ) $ ( 61 ) Net income Net Gain (Loss) on Cash Flow Hedging Instruments Interest rate swaps $ ( 8 ) $ ( 15 ) Net investment income Interest rate swaps 5 9 Interest expense Foreign currency swaps 3 6 Net investment income — — Total before tax — — Income tax expense $ — $ — Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss ( 10 ) ( 19 ) Insurance operating costs and other expenses ( 9 ) ( 16 ) Total before tax ( 2 ) ( 3 ) Income tax expense $ ( 7 ) $ ( 13 ) Net income Total amounts reclassified from AOCI $ ( 62 ) $ ( 74 ) Net income 51 Table of Contents Note 16 - Employee Benefit Plans The Hartford Insurance Group, Inc. Notes To Condensed Consolidated Financial Statements (continued) 16. Employee Benefit Plans The Company’s employee benefit plans are described in Note 18 - Employee Benefit Plans of Notes to Consolidated Financial Statements included in The Hartford’s 2024 Form 10-K Annual Report. Net periodic cost (benefit) is recognized in insurance operating costs and other expenses in the Condensed Consolidated Statement of Operations. The Company has not determined whether, and to what extent, contributions may be made to the U.S. qualified defined benefit pension plan in 2025. The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2025 to make this determination. Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 2025 2024 2025 2024 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ — $ — $ — Interest cost 43 44 87 88 1 1 3 3 Expected return on plan assets ( 61 ) ( 58 ) ( 121 ) ( 115 ) — — — — Amortization of prior service credit — — — — ( 1 ) ( 1 ) ( 3 ) ( 3 ) Amortization of actuarial loss 9 9 17 17 1 1 2 2 Net periodic cost (benefit) $ ( 8 ) $ ( 4 ) $ ( 16 ) $ ( 9 ) $ 1 $ 1 $ 2 $ 2 52 Table of Contents Index to MD&A Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations