Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1111

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1C
Chunk 1111
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2023Net cash provided by operating activities increased in 2024 as compared to the prior year period primarily driven by an increase in P&C and Employee Benefits premiums received, a decrease in P&C loss and loss adjustment expenses paid due to the $787 payment to the Boy Scouts of America in the prior year, and cash recoveries from NICO under the Navigators ADC, partially offset by higher operating expenses, including increased commissions and staffing costs, an increase in Employee Benefits loss and loss adjustment expenses paid, and taxes paid.Cash used for investing activities increased in 2024 as compared to the prior year driven by an increase in net payments for fixed maturities available for sale, a decrease in net proceeds from equity securities at fair value, and an increase in net payments for mortgage loans, partially offset by a decrease in net payments for partnerships and a change from net payments for to net proceeds from derivatives.Cash used for financing activities increased in 2024 as compared to the prior year period primarily driven by an increase in treasury stock acquired, including excise tax paid, and an increase in dividends paid on common stock.Operating cash flows for the year ended December 31, 2024 have been adequate to meet liquidity requirements.

|EQUITY MARKETS

For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk on U.S. Statutory Capital and Liquidity Risk section in this MD&A.

|RATINGS

Ratings are an important factor in establishing a competitive position in the insurance marketplace and impact the Company's ability to access financing and its cost of borrowing. There can be no assurance that the Company’s ratings will continue for any given period of time, or that they will not be changed. In the event the Company’s ratings are downgraded, the Company’s competitive position, ability to access financing, and its cost of borrowing, may be adversely impacted. These ratings are not a recommendation to buy, sell or hold any of The Hartford’s securities and they may be revised or withdrawn at any time at the discretion of the rating organization. Each agency’s rating should be evaluated independently of any other agency’s rating. The system and the number of rating categories can vary across rating agencies.Among other factors, rating agencies consider the level of statutory capital and surplus of our U.S. insurance subsidiaries as well as the level of GAAP capital held by the Company in determining the Company's financial strength and credit ratings. Rating agencies may implement changes to their capital formulas that have the effect of increasing the