Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 3

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 2
Chunk 3
---
 common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. 

50

Table of ContentsIndex to MD&A Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Reconciliation of Net Income to Core Earnings Three Months Ended March 31, 20252024Net income$630 $753 Preferred stock dividends5 5 Net income available to common stockholders625 748 Adjustments to reconcile net income available to common stockholders to core earnings:Net realized losses (gains) excluded from core earnings, before tax 47 (30)Restructuring and other costs, before tax— 1 Integration and other non-recurring M&A costs, before tax2 2 Change in deferred gain on retroactive reinsurance, before tax [1](32)(24)Income tax expense (benefit) [2](3)12 Core earnings$639 $709 

[1]For the three months ended March 31, 2025 and 2024,the Company recorded amortization of the deferred gain related to the Navigators adverse development cover ("Navigators ADC") of $32 and$24, respectively. For additional information regarding the ADC reinsurance agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

[2]Primarily represents the federal income tax expense (benefit) related to before tax items not included in core earnings.

Core Earnings Margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Employee Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Employee Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Employee