Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1786

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 3
Chunk 1786
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 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 business is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default and the amount of loss given a default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other credit enhancement, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss sensitive business considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 5 - Investments.Rollforward of ACL on Premiums Receivable and Agents' Balances for the Year EndedDecember 31, 2024December 31, 2023December 31, 2022Receivables Excluding Receivables for Loss Sensitive BusinessReceivables for Loss Sensitive BusinessTotalReceivables Excluding Receivables for Loss Sensitive BusinessReceivables for Loss Sensitive BusinessTotalReceivables Excluding Receivables for Loss Sensitive BusinessReceivables for Loss Sensitive BusinessTotalBeginning ACL$89 $20 $109 $85 $24 $109 $83 $22 $105 Current period provision (release)64 1 65 52 (2)50 48 3 51 Current period gross write-offs(62)(1)(63)(55)(2)(57)(56)(1)(57)Current period gross recoveries6 — 6 7 — 7 10 — 10 Ending ACL$97 $20 $117 $89 $20 $109 $85 $24 $109 

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