Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 249

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 249
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8. ReinsuranceThe 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 RecoverablesReinsurance 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 IndicatorAs of March 31, 2025As of December 31, 2024P&CEmployee Benefits CorporateTotalP&CEmployee Benefits CorporateTotalA.M. Best Financial Strength RatingA++$2,250 $— $— $2,250 $2,271 $— $— $2,271 A+2,188 286 220 2,694 2,169 281 224 2,674 A838 1 — 839 829 1 — 830 A-619 4 — 623 622 4 — 626 B++2 — 2 4 2 — 2 4 Below B++22 — — 22 22 — — 22 Total Rated by A.M. Best5,919 291 222 6,432 5,915 286 226 6,427 Mandatory (Assigned) and Voluntary Risk Pools208 — — 208 205 — —