Company: HIG-PG
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000874766-25-000084
Chunk: 259

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-07-28
Form: 10-Q
Item: Item 8
Chunk 259
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aseConstant prepayment rate [6]2%5%3%Decrease [5]Constant default rate [6]—%5%2%DecreaseLoss severity [6]35%50%44%DecreaseShort-term investments$116 Discounted cash flowsSpread156 bps269 bps220 bpsDecreaseAs of December 31, 2024CMBS [3]$166 Discounted cash flowsSpread (encompasses prepayment, default risk and loss severity)200 bps1,221 bps418 bpsDecreaseCorporate [4]$2,166 Discounted cash flowsSpread81 bps794 bps286 bpsDecreaseRMBS [3]$19 Discounted cash flowsSpread [6]100 bps372 bps181 bpsDecreaseConstant prepayment rate [6]1%6%4%Decrease [5]Constant default rate [6]1%4%2%DecreaseLoss severity [6]30%50%41%DecreaseShort-term investments$98 Discounted cash flowsSpread266 bps266 bps266 bpsDecrease[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