HARTFORD INSURANCE GROUP, INC.

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 & 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 $88, $85, and $81 for 2025, 2024, and 2023, respectively and includes servicing expenses of $71, $66, and $60 for 2025, 2024, and 2023, respectively.

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

Written and Earned Premiums

Premium Measures

Underwriting Ratios

Product Combined Ratios

Net Income (Loss)

Net income increased, largely driven by improved underwriting results.

Underwriting Gain (Loss)

Underwriting gain increased, primarily due to the effect of an increase in earned premium due to renewal price increases and more favorable prior accident year development, partially offset by higher current accident year catastrophe losses.

Expense ratiowas flat due to the effect of an increase in earned premium due to renewal written price increases, offset by an increase in technology costs, higher staffing costs including incentive compensation, and higher marketing expenses, as well as a higher commission ratio due to business mix.

Written Premiums

Earned premiums increased in 2025 primarily due to higher written premium over the prior twelve months in homeowners and earned pricing increases in automobile.

Written premiums increased in 2025 driven by the effect of written pricing increases and by an increase in new business premium in homeowners.

Renewal written pricing moderated for both automobile and homeowners, primarily in response to moderating loss cost trends.

Effective policy count retentionwas relatively stable for both automobile and homeowners in 2025, in response to moderating renewal written pricing increases.

Policies in-force as of the end of 2025 declined since 2024 for automobile and increased slightly 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, partially offset by higher loss costs. The higher loss costs in automobile were driven by higher physical damage and liability claim severities, partially offset by lower physical damage claim frequency. The automobile claim severity trend has moderated from the prior year. The automobile liability severity trend continues to recognize 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 as well as 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 2025 compared to the prior year. CAY catastrophe losses for 2025 included losses from tornado, wind and hail events across several regions, but concentrated in the South and Midwest regions, and to a lesser extent, in the Mountain West region, as well as a loss of $111 from the January 2025 California Wildfire Event. 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.

Prior accident year development was favorable in 2025, primarily driven by lower estimated severity on automobile liability, homeowners, automobile physical damage, as well as decreases in reserves related to catastrophes. Prior accident year development was favorable for 2024, primarily driven by lower estimated severity on automobile physical damage, automobile liability, and homeowners, as well as decreases in reserves related to catastrophes.

In 2026, the Company expects written premium growth primarily from renewal written pricing increases in both automobile and homeowners. We expect 2026 annual written pricing increases in both automobile and homeowners to moderate compared to 2025 results, and remain in line with loss cost trends. Retention is expected to improve as written pricing moderates, while we expect the continued rollout of Prevail in the agency channel to generate growth in agency new business policies.