Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 149

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 1
Chunk 149
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4.3 %

[1]Yields calculated using annualized net investment income divided by the monthly average invested assets at amortized cost, as applicable, excluding derivatives book value.

[2]Includes net investment income on short-term investments.

[3]Primarily includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

Three months ended March 31, 2025 compared to the three months ended March 31, 2024Total net investment income increased primarily due to the impact of a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments, partially offset by a lower yield on variable-rate securities.Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates, partially offset by a lower yield on variable-rate securities.Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the three months ended March 31, 2025 was 5.6%, which was above the average yield of sales and maturities of 4.9% for the same period. Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the three months ended March 31, 2024 was 6.1%, which was above the average yield of sales and maturities of 5.0% for the same period.

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Table of ContentsIndex to MD&A Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

For the 2025 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be relatively consistent with the portfolio yield earned in 2024. The estimated impact on annualized net investment income yield is subject to variability including the impact of evolving market conditions.

Net Realized Gains (Losses)Three Months Ended March 31,(Before tax)20252024Gross gains on sales of fixed maturities$13 $5 Gross losses on sales of fixed maturities(25)(11)Equity securities [1](11)35 Net credit losses on fixed maturities, AFS [2]2 (1)Change in ACL on mortgage loans [3]— 3 Other, net [4](