Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1292

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 2
Chunk 1292
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 deferred gain from core earnings provides greater insight into the economics of the business.•Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before tax income, such as tax attributes like capital loss carryforwards. •Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding. Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company's business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company's performance. 

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|Table of ContentsIndex to MD&APart II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Reconciliation of Net Income to Core Earnings For the years ended December 31, 202420232022Net income$3,111 $2,504 $1,819 Preferred stock dividends21 21 21 Net income available to common stockholders3,090 2,483 1,798 Adjustments to reconcile net income available to common stockholders to core earnings:Net realized losses excluded from core earnings, before tax 56 152 626 Restructuring and other costs, before tax2 6 13 Loss on extinguishment of debt, before tax— — 9 Integration and other non-recurring M&A costs, before tax8 8 21 Change in deferred gain on retroactive reinsurance, before tax(83)194 229 Income tax expense (benefit) [1]3 (76)(200)Core earnings$3,076 $2,767