Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 254

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 254
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 decreased due to lower severity than expected on Personal Insurance automobile physical damage for accident year 2023, partially offset by unfavorable development from participation in involuntary market pools. Settlement Agreement with Boy Scouts of AmericaOn February 14, 2022, the Company executed a final settlement agreement (the “Settlement”) with the Boy Scouts of America ("BSA"), the Local Councils, and the attorneys representing a majority of the alleged victims, pursuant to which The Hartford agreed to pay $787 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford Writing Companies in the 1970s and early 1980s. In exchange for its payment, the Company receives a complete release of its policies issued to BSA and the Local Councils, as well as an injunction against further abuse claims involving BSA. All conditions precedent to the Settlement have been satisfied, including approval by the bankruptcy court and the district court, and on April 20, 2023, The Hartford paid the Settlement amount of $787. Certain objecting parties have appealed the district court’s ruling and that appeal is pending before the Third Circuit. If the court approvals for the BSA’s plan of reorganization are not affirmed on appeal, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s operating results.

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Table of ContentsNote 9 - Reserve for Unpaid Losses and Loss Adjustment ExpensesThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

Change in Deferred Gain on Retroactive ReinsuranceThe Company has in place an ADC reinsurance agreement that covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the “Navigators ADC”) up to an aggregate limit of $300, for which the Company had previously ceded the available limit. During the three months ended March 31, 2025 and 2024, the Company collected recoveries from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., and as a result amortized $32 and $24 of the deferred gain within benefits, losses and loss adjustment expenses, respectively. As of March 31, 2025 and December 31, 2024, the deferred gain on the Navigators ADC was $32 and $64, respectively, and is included in other liabilities on the Condensed Consolidated Balance Sheets.

Group Life, Disability and Accident Products

Rollforward of Liabilities for Un