Company: HIG-PG
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000874766-25-000084
Chunk: 165

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-07-28
Form: 10-Q
Item: Item 1
Chunk 165
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 the growth in AUM since these funds generally earn fee income on a daily basis.The investment return, or yield, on invested assets is an important element of the Company’s earnings since insurance products are priced with the assumption that premiums received can be invested for a period of time before benefits, losses and loss adjustment expenses are paid. Due to the need to maintain sufficient liquidity to satisfy claim obligations, the majority of the Company’s invested assets have been held in available-for-sale ("AFS") securities, including, among other asset classes, corporate bonds, municipal bonds, government debt, short-term debt, mortgage-backed securities, asset-backed securities ("ABS") and collateralized loan obligations ("CLOs"). The Company also invests in commercial mortgage loans as well as limited partnerships and other alternative investments, which are private investments that are less liquid, but have the potential to generate higher returns. The primary investment objective for the Company is to maximize economic value, consistent with acceptable risk parameters, including the management of credit risk and interest rate sensitivity of invested assets, while generating sufficient net of tax income to meet policyholder and corporate obligations. Investment strategies are developed based on a variety of factors including business needs, regulatory requirements and tax considerations.

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

Second Quarter Financial Highlights 

Net Income Available to Common Stockholders Net Income Available to Common Stockholders per Diluted ShareBook Value per Diluted Share

ÝIncreased $257 or 35%ÝIncreased $1 or 41%ÝIncreased $4.93 or 9%+The effect of higher earned premiums in P&C+Increase in net income available to common stockholders+Net income in excess of common stockholder dividends+Greater favorable P&C prior accident year reserve development+Reduction in outstanding shares due to share repurchases+An increase in AOCI, primarily driven by a decrease in net unrealized losses on AFS securities+Lower underlying loss and LAE ratio in Personal Insurance-Dilutive effect of share repurchases+Lower CAY catastrophe losses+Higher net investment income+Lower net realized losses-Higher underlying loss and LAE ratio in Business Insurance

Investment Yield, After TaxProperty & Casualty Combined RatioEmployee Benefits Net Income Margin 

ÝIncreased 20 bpsÞImproved 5.0 pointsÞDecreased 1.2 points+A higher yield on fixed maturity securities due to reinvesting at higher interest rates, partially