HARTFORD INSURANCE GROUP INC

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| PERSONAL INSURANCE - RESULTS OF OPERATIONS

[1]For discussion of current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property and Casualty Insurance Product Reserves, Net of Reinsurance and Note 10 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements.

[3]Includes servicing revenues of $85, $81, and $73 for 2024, 2023, and 2022, respectively and includes servicing expenses of $66, $60, and $55 for 2024, 2023, and 2022, respectively.

[4]For discussion of income taxes, see Note 16 - Income Taxes of Notes to Consolidated Financial Statements.

Written and Earned Premiums

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Premium Measures

Underwriting Ratios

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Product Combined Ratios

Net Income (Loss)

Net income changed to a net gain compared to a net loss for the prior year, largely driven by improved underwriting results and an increase in net investment income.

Underwriting Gain (Loss)

Underwriting gain changed to a net gain compared to a net loss for the prior year, driven by a decrease in the underlying loss and LAE ratio, the effect of an increase in earned premium due to renewal written price increases, and a change from unfavorable to favorable prior accident year development, partially offset by an increase in current accident year catastrophe losses, and an increase in insurance operating costs.

Expense ratio increased primarily due to higher direct marketing costs, higher incentive compensation and benefits costs, and higher commissions, partially offset by the impact of higher earned premium.

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Written Premiums

Earned premiums increased in 2024 due to higher written premium over the prior twelve months in both automobile and homeowners.

Written premiums increased in 2024 driven by the effect of written pricing increases and by an increase in new business premium in both automobile and homeowners.

Renewal written pricing increases were higher for both automobile and homeowners in 2024 primarily in response to recent elevated loss cost trends as well as higher insured values in homeowners.

Policy count retention decreased for automobile and was stable for homeowners in 2024, in response to renewal written pricing increases.

Effective policy count retention decreased both for automobile and homeowners in 2024, in response to renewal written pricing increases.

Policies in-force as of the end of 2024 declined since 2023 for automobile and increased for homeowners, reflecting the level of new business in relation to non-renewed policies.

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Underlying Loss and Loss Adjustment Expense Ratio

Underlying loss and LAE ratio decreased in both automobile and homeowners in 2024. The decrease in automobile was primarily due to the impact of earned pricing increases as well as lower physical damage claim frequency, partially offset by higher automobile claim severities. The auto physical damage claim severity trend has moderated from the prior year. The automobile liability severity increases continue to recognize the inflationary effects and higher attorney representation rates on bodily injury claims. For homeowners, the decrease in the underlying loss and LAE ratio was primarily due to the impact of earned pricing increases and lower claim frequency, partially offset by higher claim severities. Contributing to the higher homeowners severity was the effect of higher rebuilding costs.

Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Current accident year catastrophe losses increased in 2024 compared to the prior year. Current accident year catastrophe losses for 2024 included losses from tornado, wind and hail events in several regions of the United States, and to a lesser extent, from hurricanes and tropical storms primarily in the Southeast region. Current accident year catastrophe losses for 2023 included tornado, wind and hail events across several regions of the United States, losses from winter storms primarily on the East and West coasts, and to a lesser extent, wildfire events and hurricanes and tropical storms.

Prior accident year development was favorable in 2024, primarily driven by lower estimated severity on automobile physical damage, automobile liability, and homeowners, as well as decreases in reserves related to catastrophes. Prior accident year development was unfavorable for 2023, primarily driven by automobile physical damage, partially offset by decreases in reserves related to homeowners and catastrophes.

In 2025, the Company expects written premium growth primarily from strong renewal written pricing increases in both automobile and homeowners, as well an increase in new business premium. We expect 2025 annual written pricing increases in both automobile and homeowners to moderate compared to 2024 results. Retention is expected to improve as written pricing moderates, while growth in new business will be driven by increased marketing spend. Loss ratios are expected to continue to improve in automobile.