Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 251

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 251
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 to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss 

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Table of ContentsNote 8 - ReinsuranceThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 5 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital ("RBC") to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults.Allowance for Uncollectible Reinsurance for the Three Months EndedThree Months Ended March 31,20252024P&C beginning allowance for uncollectible reinsurance$72 $100 Beginning allowance for disputed amounts48 57 P&C beginning ACL24 43 Current period provision (release)(4)1 P&C ending ACL20 44 Ending allowance for disputed amounts52 54 P&C ending allowance for uncollectible reinsurance72 98 Employee Benefits allowance for uncollectible reinsurance1 1 Corporate allowance for uncollectible reinsurance2 2 Total allowance for uncollectible reinsurance$75 $101 

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Table of ContentsNote 9 - Reserve for Unpaid Losses and Loss Adjustment ExpensesThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

9. Reserve for Un