HARTFORD INSURANCE GROUP INC

Personal Insurance - Results of Operations

[1]For additional information on current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance and Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Condensed Consolidated Financial Statements.

[3]Includes servicing revenues of $20 and $19 for the three months ended March 31, 2025 and 2024, respectively. Includes servicing expenses of $16 and $15 for the three months ended March 31, 2025 and 2024, respectively.

[4]For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Written and Earned Premiums

Premium Measures

Underwriting Ratios

Product Combined Ratios

Net income

Net Income decreased, largely driven by lower underwriting results.

Underwriting loss

Underwriting loss increased primarily due to an increase in current accident year catastrophe losses and an increase in insurance operating costs, partially offset by an improved underlying loss and LAE ratio, the effect of an increase in earned premium due to renewal written price increases, and greater favorable prior accident year development.

Expense ratio increased primarily due to higher direct marketing costs and, to a lesser extent, a higher commission ratiodue to business mix.

Written Premiums

Earned premiums increased in 2025 due to higher written premium over the prior twelve months in both automobile and homeowners.

Written premiums increased in 2025 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 moderated for both automobile and homeowners in 2025, primarily in response to moderating loss cost trends.

Effective Policy count retention was stable both for automobile and homeowners in 2025, in response to moderating renewal written pricing increases.

Policies in-force as of March 31, 2025 compared to March 31, 2024 declined for automobile and increased for homeowners, reflecting the level of new business in relation to non-renewed policies.

Underlying Loss and Loss Adjustment Expense Ratio

Underlying loss and LAE ratio decreased in both automobile and homeowners in 2025. 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 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, 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 for the three months ended March 31, 2025, compared to the prior year. CAY catastrophe losses for the three months ended March 31, 2025 included a loss of $118 from the January 2025 California Wildfire Event, as well as tornado, wind and hail events primarily in the Midwest and South regions. CAY catastrophe losses for the three months ended March 31, 2024 included from tornado, wind and hail events mainly in the Midwest and South regions, as well as winter storms in the Pacific and South Regions.

Prior accident year development was favorable for the three months ended March 31, 2025, primarily driven by lower estimated severity on homeowners, automobile physical damage, and automobile liability. Prior accident year development was favorable for the three months ended March 31, 2024, primarily driven by improved severity on automobile physical damage.