Company: HIG-PG
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000874766-25-000052
Chunk: 110

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 1
Chunk 110
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, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses).Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)Three Months Ended March 31,20252024Interest rate contractsInterest rate swaps and futures$(1)$3 Equity contractsEquity index options1 (5)Total [1]$— $(2)[1]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. Credit Risk Assumed through Credit 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