Company: HIG-PG
Filing Date: 2025-10-27
Form Type: 10-Q
Source: 0000874766-25-000107
Chunk: 266

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-10-27
Form: 10-Q
Item: Item 8
Chunk 266
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 broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.[5]Decrease for above market 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 September 30, 2025 and December 31, 2024, 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 September 30, 2025, 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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Table of ContentsNote 4 - Fair Value MeasurementsThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for theThree Months Ended September 30, 2025Total realized/unrealized gains (losses)Fair value as of June 30, 2025Included in net income [1]Included in OCI [2]Purchases SettlementsSalesTransfers into Level 3 [3]Transfers out of Level 3 [3]Fair value as of September 30, 2025AssetsFixed maturities, AFSABS$92 $— $— $13 $(12)$— $— $(10)$83 CLOs70 — — 119 (10)— — (15)164 CM