Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 262

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 262
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-K Annual Report.

45

Table of ContentsNote 13 - Commitments and ContingenciesThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

Derivative CommitmentsCertain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could, in certain instances, terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement.The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of March 31, 2025 was $33 for which the legal entities have posted collateral of $28 in the normal course of business. Based on derivative contractual terms as of March 31, 2025, a downgrade of the current financial strength ratings by either Moody's or S&P would not require additional assets to be posted as collateral. This requirement could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the additional collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.

14. Equity 

Equity Repurchase ProgramDuring the three months ended March 31, 2025 and 2024, the Company repurchased $400 (3.5 million shares) and $350 (3.8 million shares), respectively, of common stock under Board authorized share repurchase programs covering the applicable periods. As of March 31, 2025, the Company has $2.75 billion remaining for equity repurchases under the current $3.3 billion share repurchase program, which is effective until December 31, 2026. During the period April 1, 2025 through April 23, 2025, the Company repurchased $124 (1.1 million common shares) under this repurchase program.The timing of any repurchases of shares is dependent on several factors, including