Company: HIG-PG
Filing Date: 2025-06-24
Form Type: 11-K
Source: 0000874766-25-000063
Chunk: 9

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-06-24
Form: 11-K
Chunk 9
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278 |     |                                                |  71,677 |
| RGA                       |     |        RGA00058 |     | AA / Aa2             |     |                                                |  73,358 |     |                                                |  81,193 |
| Prudential                |     |         GA62433 |     | AA / Aal             |     |                                                | 142,311 |     |                                                | 157,488 |
| Traditional GIC Contract: |     |                 |     |                      |     |                                                |         |     |                                                |         |
| New York Life             |     |         GA29021 |     | AA+ / Aaa            |     |                                                |  79,345 |     |                                                |  87,326 |
| Total                     |     |                 |     |                      |     | $                                              | 615,905 |     | $                                              | 678,636 |

The key difference between a synthetic guaranteed investment contract ("GIC") and a traditional GIC is that the Plan owns the underlying assets of the synthetic GIC. A synthetic GIC includes a wrapper contract, which is an agreement with the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan. Synthetic and traditional GICs are designed to accrue interest based on crediting rates established by the contract issuers.

The synthetic GICs held by the Plan include wrapper contracts that provide a guarantee that the crediting rate with respect to the applicable underlying assets will not fall below 0%. Cash flow volatility (for example, timing of benefit payments) as well as asset underperformance can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in the contract that adjusts renewal crediting rates to recognize the difference between the fair value and the book value of the underlying assets. Crediting rates are reviewed quarterly for resetting.

The Plan also holds a traditional GIC. The contract issuer is contractually obligated to repay the principal and interest at a specific interest rate that is guaranteed to the Plan. The crediting rate is based on a formula established by the contract issuer but may not be less than 0%. The crediting rate is reviewed on a quarterly basis for resetting. The contract can be terminated at any time at market value.

The Plan’s ability to receive amounts due in accordance with the traditional and the synthetic G