Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1302

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 2
Chunk 1302
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 return realized in the equity and bond markets. Net flows are comprised of new sales less redemptions by mutual fund and ETF shareowners. Financial results are highly correlated to the growth in AUM since these funds generally earn fee income on a daily basis.The investment return, or yield, on invested assets is an important element of the Company’s earnings since insurance products are priced with the assumption that premiums received can be invested for a period of time before benefits, losses and loss adjustment expenses are paid. Due to the need to maintain sufficient liquidity to satisfy claim obligations, the majority of the Company’s invested assets have been held in available-for-sale ("AFS") securities, including, among other asset classes, corporate bonds, municipal bonds, government debt, short-term debt, mortgage-backed securities, asset-backed securities ("ABS") and collateralized loan obligations ("CLOs"). The Company also invests in commercial mortgage loans as well as limited partnerships and other alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns. The primary investment objective for the Company is to maximize economic value, consistent with acceptable risk parameters, including the management of credit risk and interest rate sensitivity of invested assets, while generating sufficient net of tax income to meet policyholder and corporate obligations. Investment strategies are developed based on a variety of factors including business needs, regulatory requirements and tax considerations.

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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

2024 FINANCIAL HIGHLIGHTS

Net Income Available to Common StockholdersNet Income Available to Common Stockholders per Diluted ShareBook Value per Diluted Share

ÝIncreased $607 or 24%ÝIncreased $2.38 or 30%ÝIncreased $5.66 or 11%+The effect of higher earned premiums in P&C and Employee Benefits+Increase in net income available to common stockholders+Net income in excess of common stockholder dividends+Higher net investment income+Reduction in outstanding shares due to share repurchases-Dilutive effect of share repurchases+Lower underlying loss and LAE ratio in Personal Insurance+Favorable P&C prior accident year reserve development in the 2024 period+Lower net realized losses+Lower group life loss ratio-Higher catastrophe losses in P&C-Higher expense ratio in P&C and Employee Benefits-Higher group disability and supplemental health loss ratios

Investment Yield, After TaxProperty & Casualty Combined RatioEmployee