Company: HIG-PG
Filing Date: 2025-10-27
Form Type: 10-Q
Source: 0000874766-25-000107
Chunk: 293

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-10-27
Form: 10-Q
Item: Item 8
Chunk 293
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 BalancesThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

7. Premiums Receivable and Agents' BalancesPremiums Receivable and Agents' Balances As of September 30, 2025As of December 31, 2024Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")$6,202 $5,624 Receivables for loss sensitive business, by credit quality:AA93 97 A58 57 BBB200 193 BB92 94 Below BB48 50 Total receivables for loss sensitive business491 491 Total Premiums Receivable and Agents' Balances, Gross6,693 6,115 ACL(138)(117)Total Premiums Receivable and Agents' Balances, Net of ACL$6,555 $5,998 ACL on Premiums Receivable and Agents' BalancesPremiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.A portion of the Company's Business Insurance business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business"). Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight.The ACL for receivables for loss sensitive