Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1163

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1C
Chunk 1163
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 rate coupons and increase for below market rate coupons.[6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.

As of December 31, 2024 and 2023, the fair values of the Company's level 3 derivatives were less than $1 for both periods.The table above excludes certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As of December 31, 2024, no significant adjustments were made by the Company to broker prices received. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable InputsThe Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability.

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|Index to Consolidated Financial Statements and SchedulesTable of ContentsNote 4 - Fair Value MeasurementsTHE HARTFORD INSURANCE GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2024Total realized/unrealized gains (losses)Fair value as of January 1, 2024Included in net income [1]Included in OCI [2]PurchasesSettlementsSalesTransfers into Level 3 [3]Transfers out of Level 3 [3]Fair value as of December 31, 2024AssetsFixed maturities, AFSABS$— $— $— $70 $— $— $— $(48)$22 CLOs113 — — 919 (64)— — (852)116 CMBS227 (6)18 — (10)(67)