Company: HIG-PG
Filing Date: 2025-04-10
Form Type: DEF 14A
Source: 0000874766-25-000040
Chunk: 28

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-10
Form: DEF 14A
Chunk 28
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 management, and non-financial and strategic objectives. Informed by this qualitative review, the Compensation Committee may then adjust the formulaic funding up or down to arrive at an AIP funding level more commensurate with the Company’s performance.

| The Compensation Committee believes retaining the flexibility to adjust the formulaic AIP funding is aligned with shareholders' interests because it allows the Compensation Committee to arrive at a final AIP funding level that best rewards holistic company performance and mitigates the risk inherent in a strictly formulaic approach. Using a strict formula may have unintended consequences due to events or market conditions unanticipated when goals are set, or may overemphasize short-term performance at the expense of long-term shareholder returns or undervalue achievements that are not yet evident in our financial performance. These factors are particularly relevant in the P&C insurance industry, where the “cost of goods sold” (that is, the amount of insured losses) is not known at the time of sale and develops over time — in some cases over many years. Because of this industry dynamic, a substantial majority of our 2024 Corporate Peer Group (listed on page49) include discretion in their annual award design. |

| 40 |     | www.thehartford.com |

| COMPENSATION MATTERS |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     | 2024 Compensation Core Earnings* |
| 2024AIP Funding Level:When setting the operating plan, which forms the basis for the Compensation Core Earnings target, management and the Board anticipated strong premium growth in Property & Casualty and modest growth in Employee Benefits, significant improvement in personal auto loss ratios and modest improvement in the group life loss ratio, and higher net investment income; partially offset by rising group disability and voluntary loss ratios, increased underwriting and operating expenses, higher Business Insurance non-cat property losses, a slight deterioration in workers’ compensation, and higher current accident year catastrophes. |     |                                  |

* Denotes a non-GAAP financial measure. For definitions and reconciliations to the most directly comparable GAAP measure, see Appendix A .

The 2024 AIPCompensation Core Earnings target was set at $2.84 billion, which was above both the 2023 Compensation Core Earnings target of $2.56 billion, and actual 2023 compensation core earnings of $2.74 billion.

Actual Compensation Core Earnings for 2024 were $3.15 billion, which produced a formulaic AIP funding level of 143% of target ,