Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1357

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 2
Chunk 1357
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 income margin7.9 %7.7 %5.1 %0.22.6Adjustments to reconcile net income margin to core earnings margin:Net realized losses, before tax0.4 %0.4 %1.8 %0.0(1.4)Integration and other non-recurring M&A costs, before tax— %0.1 %0.1 %(0.1)0.0Income tax expense(0.1 %)(0.1 %)(0.5 %)0.00.4Core earnings margin8.2 %8.1 %6.5 %0.11.6

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|Table of ContentsIndex to MD&APart II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Net Income  Year ended December 31, 2024 compared to the year ended December 31, 2023Net income increased primarily due to a lower group life loss ratio, higher fully insured ongoing premiums and lower realized losses, partially offset by a higher expense ratio and a higher loss ratio on group disability and supplemental health products. Insurance operating costs and other expenses were higher primarily due to the effect of an increase in fully insured ongoing premium, higher staffing costs, including higher incentive compensation and benefits costs, higher commissions and increased technology investments.Fully Insured Ongoing Premiums Year ended December 31, 2024 compared to the year ended December 31, 2023 Fully insured ongoing premiums increased over prior year and included an increase in exposure on existing accounts, new business sales, and persistency in excess of 90%, though slightly below the prior year.Fully insured ongoing sales decreased compared to prior year driven by lower group life and group disability sales.RatiosYear ended December 31, 2024 compared to the year ended December 31, 2023 Loss ratio improved 1.0 points in 2024 compared to the prior year period, driven by a lower group life loss ratio, partially offset by increased loss ratios in disability and supplemental health products. The group life loss ratio decreased 4.8 points driven by a lower level of mortality. The group disability loss ratio increased 0.9 points driven by higher loss ratio on paid family and medical leave products, partially offset by favorable long-term disability claim recoveries and changes in the long-term disability recovery rate assumption of 0.5 points. Expense ratio increased primarily due to the impact of