Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 245

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 245
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 DerivativesThe Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk may primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. 

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Table of ContentsNote 6 - DerivativesThe Hartford Insurance Group, Inc.Notes To Condensed Consolidated Financial Statements (continued)

Credit Risk Assumed Derivatives by TypeUnderlying Referenced CreditObligation(s) [1]NotionalAmount[2]FairValueWeightedAverageYears toMaturityTypeAverageCreditRatingOffsettingNotionalAmount [3]OffsettingFairValue [3]As of March 31, 2025Basket credit default swaps [4]Investment grade risk exposure$100 $— 3 yearsCMBS CreditAAA$100 $— Below investment grade risk exposure392 23 3 yearsCorporate CreditB+392 (23)Below investment grade risk exposure1 (1)Less than 1 yearCMBS CreditCCC1 1 Total [5]$493 $22 $493 $(22)As of December 31, 2024Basket credit default swaps [4]Investment grade risk exposure$100 $— 4 yearsCMBS CreditAAA$100 $— Below investment grade risk exposure392 30 3 yearsCorporate CreditB+392 (30)Below investment grade risk exposure1 (1)Less than 1 yearCMBS CreditCCC1 1 Total [5]$493 $29 $493 $(29)[1]The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.[2]Notional amount is equal to the maximum potential future loss amount. These derivatives are governed