Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 276

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 276
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OLIDATED FINANCIAL STATEMENTS (continued)

Performance share awards that are not dependent on market conditions are valued equal to the closing stock price on the New York Stock Exchange for the Company’s common stock on the date of grant. Stock compensation expense for these performance share awards without market conditions is based on a current estimate of the number of awards expected to vest based on the performance level achieved and, therefore, may change during the performance period as new estimates of performance are available.Other performance share awards or portions thereof have a market condition based upon the Company's total stockholder return relative to a pre-determined group of peer companies as of December 31 at the end of the three year performance period. Stock compensation expense for these performance share awards is based on the number of awards expected to vest as estimated at the grant date and, therefore, does not change for changes in estimated performance. The Company uses a risk neutral Monte-Carlo Plan Valuation Model that incorporates time to maturity, implied volatilities of the Company and the peer companies, and correlations between the Company and the peer companies and interest rates. Assumptions for Total Stockholder Return Performance Shares For the years ended December 31, 202420232022Volatility of common stock21.7%33.0%35.9%Average volatility of peer companies20.0 %-33.0%26.0 %-41.0%27.0 %-46.0%Average correlation coefficient of peer companies42.0%52.0%68.0%Risk-free spot rate4.4%4.4%1.8%Term3.0 years3.0 years3.0 yearsTotal Share AwardsNon-vested Share Award Activity Under the Stock Incentive PlanRestricted Stock UnitsPerformance SharesNumber of Shares(in thousands)Weighted-AverageGrant-DateFair ValueNumber of Shares(in thousands)Weighted-AverageGrant dateFair ValueNon-vested sharesFor the year ended December 31, 2024Non-vested at beginning of year3,259 $65.44 583 $77.97 Granted837 $96.34 338 $103.08 Performance based adjustment, net252 $71.00 Vested(1,281)$53.09 (567)$71.30 Forfeited(137)$77.97 (12)$88.19 Non-vested at end of year2,678 $80.36 594