HARTFORD INSURANCE GROUP, INC.

Employee Benefits - Results of Operations

[1]For discussion of consolidated investment results, see MD&A - Investment Results.

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

Net income decreased for the three months ended June 30, 2025 primarily due to an increase in the expense ratio as well as a higher group disability loss ratio, partially offset by a lower group life loss ratio. For the six months ended June 30, 2025, net income increased primarily due to a lower group life loss ratio, higher fully insured ongoing premiums, and higher net investment income, partially offset by an increase in the expense ratio.

Insurance operating costs and other expenses were higher for both the three and six month periodsdue to higher technology costs, including increased investment, as well as higher commissions and staffing costs.

Fully Insured Ongoing Premiums

[1]Other of $107 and $120 for the three months ended June 30, 2024 and 2025 respectively, and $211 and $238 for the six months ended June 30, 2024 and 2025, respectively which includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.

Fully insured ongoing premiums remained flat for the three months ended June 30, 2025, as an increase in exposure on existing accounts was offset by lower sales during the past year. For the six-month period, premiums increased over prior year and included an increase in exposure on existing accounts and persistency in excess of 90%, though slightly below the prior year.

Fully insured ongoing sales increased for the three months ended June 30, 2025 driven by higher group disability sales. For the six-month period, sales decreased compared to prior year driven by lower sales of the paid family and medical leave product and fewer large case sales.

Ratios

Loss ratio remained relatively flat for the three months ended June 30, 2025 compared to the prior year period. The group life loss ratio decreased 0.6 points due to lower mortality primarily driven by the accidental death product. The group disability loss ratio increased 1.4 points driven by higher short-term disability claim incidence as well as a slight increase in long-term disability incidence, partially offset by strong claim recoveries.

The loss ratio improved 0.6 points in the six months ended June 30, 2025 compared to the prior year period reflecting a lower group life loss ratio. The group life loss ratio decreased 1.6 points driven by a lower level of mortality within both our term and accidental life products. Group disability loss ratio remained relatively flat compared to prior year driven by paid family and medical leave pricing actions offset by a slight increase in long-term disability incidence.

Expense ratio increased for the three and six months ended June 30, 2025 primarily due to higher technology costs, including increased investment, as well as the impact of higher staffing costs.