Company: HIG-PG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000874766-25-000023
Chunk: 1783

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 3
Chunk 1783
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 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 reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. 

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|Index to Consolidated Financial Statements and SchedulesTable of ContentsNote 6 - DerivativesTHE HARTFORD INSURANCE GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Credit Risk Assumed Derivatives by TypeUnderlying Referenced Credit Obligation(s) [1]Notional Amount [2]Fair ValueWeighted Average Years to MaturityTypeAverage Credit RatingOffsetting Notional Amount [3]Offsetting Fair Value [3]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)As of December 31, 2023Basket credit default swaps [4]Investment grade risk exposure$101 $(1)5 yearsCMBS CreditAAA$101 $1 Below investment grade risk exposure396 24 4 yearsCorporate CreditB+396 (24)Below investment grade risk exposure2 (1)Less than 1 yearCMBS CreditCCC-2 1 Total [5]$499 $22 $499 $(22)[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 by agreements and applicable law which include collateral posting requirements. There is