HARTFORD INSURANCE GROUP INC
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 21, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Investment Results
| Composition of Invested Assets | ||||
|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | |||
| Amount | Percent | Amount | Percent | |
| Fixed maturities, AFS, at fair value | $42,567 | 71.9% | $39,818 | 71.2% |
| Fixed maturities, at fair value using the fair value option ("FVO Securities") | 308 | 0.5% | 327 | 0.6% |
| Equity securities, at fair value | 603 | 1.0% | 864 | 1.5% |
| Mortgage loans (net of allowance for credit losses ("ACL") of $44 and $51) | 6,396 | 10.8% | 6,087 | 10.9% |
| Limited partnerships and other alternative investments | 5,042 | 8.5% | 4,785 | 8.6% |
| Other investments [1] | 226 | 0.4% | 191 | 0.3% |
| Short-term investments | 4,068 | 6.9% | 3,850 | 6.9% |
| Total investments | $59,210 | 100.0% | $55,922 | 100.0% |
[1]Primarily consists of equity fund investments, overseas deposits, consolidated investment funds, and derivative instruments which are carried at fair value.
December 31, 2024 compared to December 31, 2023
Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value.
Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds, high-quality residential mortgage-backed securities ("RMBS") and ABS, partially offset by net reductions to tax-exempt municipal bonds, U.S. Treasuries, and commercial mortgage-backed securities ("CMBS").
|
| Table of Contents | Index to MD&A |
|---|
| Net Investment Income | ||||||
|---|---|---|---|---|---|---|
| For the years ended December 31, | ||||||
| 2024 | 2023 | 2022 | ||||
| (Before tax) | Amount | Yield [1] | Amount | Yield [1] | Amount | Yield [1] |
| Fixed maturities [2] | $2,204 | 4.6% | $1,895 | 4.2% | $1,469 | 3.4% |
| Equity securities | 35 | 5.3% | 45 | 3.7% | 57 | 3.0% |
| Mortgage loans | 266 | 4.2% | 235 | 3.9% | 211 | 3.6% |
| Limited partnerships and other alternative investments | 148 | 3.0% | 212 | 4.8% | 515 | 14.4% |
| Other [3] | 14 | 9 | 5 | |||
| Investment expense | (99) | (91) | (80) | |||
| Total net investment income | 2,568 | 4.3% | 2,305 | 4.1% | 2,177 | 3.9% |
| Adjustment for net investment income from limited partnerships and other alternative investments | (148) | 0.1% | (212) | (0.1)% | (515) | (0.7)% |
| Total net investment income excluding limited partnerships and other alternative investments | $2,420 | 4.4% | $2,093 | 4.0% | $1,662 | 3.2% |
[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.
Total net investment income increased primarily due to a higher level of invested assets and the impact of higher reinvestment rates, partially offset by a lower level of income on limited partnerships and other alternative investments.
Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates.
Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the year-ended December 31, 2024 was 5.9%, which was above the average yield of sales and maturities of 5.0% for the same period. Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the year-ended December 31, 2023 was 5.8%, which was above the average yield of sales and maturities of 4.4% for the same period.
For the 2025 calendar year, we expect the annualized net investment income yield, excluding limited partnerships and other alternative investments, to be marginally higher than 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) | |||
|---|---|---|---|
| For the years ended December 31, | |||
| (Before tax) | 2024 | 2023 | 2022 |
| Gross gains on sales of fixed maturities | $31 | $30 | $57 |
| Gross losses on sales of fixed maturities | (198) | (149) | (315) |
| Equity securities [1] | 73 | 78 | (349) |
| Net credit losses on fixed maturities, AFS [2] | (2) | (14) | (18) |
| Change in ACL on mortgage loans [3] | 3 | (15) | (7) |
| Intent-to-sell impairments [2] | — | — | (6) |
| Other, net [4] | 32 | (118) | 11 |
| Net realized gains (losses) | $(61) | $(188) | $(627) |
[1]The change in net unrealized gains (losses) on equity securities still held as of the end of the period and included in net realized gains (losses) were $68, $17, and $(108) for the years ended December 31, 2024, 2023, and 2022, respectively.
[2]See Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments within the Investment Portfolio Risks and Risk Management section of the MD&A.
[3]See ACL on Mortgage Loans within the Investment Portfolio Risks and Risk Management section of the MD&A.
[4]Includes gains (losses) on non-qualifying derivatives for the years ended December 31, 2024, 2023, and 2022 of $13, $(108), and $46, respectively, and gains (losses) from transactional foreign currency revaluation of $20, $(15), and $28, respectively.
|
| Table of Contents | Index to MD&A |
|---|
Year ended December 31, 2024
Gross gains and losses on sales were primarily due to sales of U.S. treasuries, corporate securities, tax-exempt municipals, and CMBS largely to fund purchases of higher-yielding investments.
Equity securitiesnet gains were primarily driven by an increase in value due to higher equity market levels.
Other, netgains primarily included gains of $20 on transactional foreign currency revaluation and gains of $8 on interest rate derivatives driven by changes in interest rates.
Year ended December 31, 2023
Gross gains and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals, in addition to sales of U.S. treasuries which were used to manage duration and liquidity, and to fund purchases of higher yielding investments.
Equity securitiesnet gains were primarily driven by sales due to higher equity market levels.
Other, netlosses were primarily driven by losses of $105 on credit derivatives due to tighter credit spreads and losses of $15 on transactional foreign currency revaluation.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.