HARTFORD INSURANCE GROUP INC

Investment Results

[1]Primarily consists of equity fund investments, overseas deposits, consolidated investment funds, and derivative instruments which are carried at fair value.

March 31, 2025 compared to December 31, 2024

Total investments increased primarily due to an increase in fixed maturities, AFS, at fair value, partially offset by a decrease in short-term investments.

Fixed maturities, AFS, at fair value increased primarily due to net additions of corporate bonds, high-quality ABS and residential mortgage-backed securities ("RMBS"), partially offset by net reductions to tax-exempt municipal bonds.

Short-term investments decreased primarily due to reallocation into fixed maturities, AFS.

[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 the impact of a higher level of invested assets, reinvesting at higher interest rates, and greater income from limited partnerships and other alternative investments, partially offset by a lower yield on variable-rate securities.

Annualized net investment income yield, excluding limited partnerships and other alternative investments, was up primarily due to the impact of reinvesting at higher rates, partially offset by a lower yield on variable-rate securities.

Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the three months ended March 31, 2025 was 5.6%, which was above the average yield of sales and maturities of 4.9% for the same period. Average reinvestment rate, on fixed maturities and mortgage loans, excluding U.S. Treasury securities, for the three months ended March 31, 2024 was 6.1%, which was above the average yield of sales and maturities of 5.0% 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 relatively consistent with 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.

[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 $(11) and $36 for the three months ended March 31, 2025, and 2024, respectively.

[2]See Credit Losses on Fixed Maturities, AFS and Intent-to-Sell Impairments within the Enterprise Risk Management — Investment Portfolio Risk section of this MD&A.

[3]See ACL on Mortgage Loans within the Enterprise Risk Management — Investment Portfolio Risk section of this MD&A.

[4]The three months ended March 31, 2025, and 2024 includes gains (losses) from transactional foreign currency revaluation of $(10) and $2, respectively, and gains (losses) on non-qualifying derivatives of $0 and $(2), respectively.

Gross gains and losses on sales were primarily due to sales of tax-exempt municipals and corporate securities.

Equity securities net losses were primarily driven by a decrease in value due to lower equity market levels.

Other, netincludes losses of $10 on transactional foreign currency revaluation and $7 related to a mortgage loan modification.

Gross gains and losses on sales were primarily due to sales of corporate securities and tax-exempt municipals.

Equity securitiesnet gains were primarily driven by an increase in value due to higher equity market levels.

Other, netlosses include losses of $5 on equity derivatives due to higher equity market levels and $1 on impairments of limited partnerships and other alternative investments. Also included are gains of $4 on FVO securities due to appreciation in value and $3 on interest rate derivatives driven by changes in interest rates.