HARTFORD INSURANCE GROUP, INC.HIG
HARTFORD INSURANCE GROUP, INC. Debt Disclosure
13. Debt
The Company’s long-term debt securities are issued by Hartford Insurance Group, Inc. ("HIG Holding Company"), are unsecured obligations of HIG Holding Company, and rank on a parity with all other unsecured and unsubordinated indebtedness of HIG Holding Company.
Debt is carried net of discount and issuance cost.
Long-term Debt by Issuance
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revolving Credit Facilities | $ | — | $ | — | ||||
| Senior Notes and Debentures | ||||||||
2.8% Notes, due 2029 | 600 | 600 | ||||||
5.95% Notes, due 2036 | 300 | 300 | ||||||
6.625% Notes, due 2040 | 295 | 295 | ||||||
6.1% Notes, due 2041 | 409 | 409 | ||||||
6.625% Notes, due 2042 | 178 | 178 | ||||||
4.3% Notes, due 2043 | 300 | 300 | ||||||
4.4% Notes, due 2048 | 500 | 500 | ||||||
3.6% Notes, due 2049 | 800 | 800 | ||||||
2.9% Notes, due 2051 | 600 | 600 | ||||||
| Junior Subordinated Debentures | ||||||||
3-Month term SOFR + 0.26161% + 2.125% Notes, due 2067 [1] | 500 | 500 | ||||||
| Total Notes and Debentures | 4,482 | 4,482 | ||||||
| Unamortized discount and debt issuance cost [2] | (111) | (116) | ||||||
| Total Debt | 4,371 | 4,366 | ||||||
| Less: Current maturities | — | — | ||||||
| Long-Term Debt | $ | 4,371 | $ | 4,366 | ||||
[1]The Company has an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments based on 3-month term Secured Overnight Financing Rate (“SOFR”) plus a spread adjustment of 0.26161% plus 2.125% for this debenture.
[2]This amount includes unamortized discount of $66 and $68 as of December 31, 2025 and 2024, respectively, on the 6.1% Notes, due 2041.
The effective interest rate on the 6.1% senior notes due 2041 is 7.9%. The effective interest rate on the remaining notes does not differ materially from the stated rate.
Shelf Registrations
On September 23, 2024, the Company filed with the Securities and Exchange Commission ("SEC") an automatic shelf registration statement (Registration No. 333-282288) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be offered: debt securities, junior subordinated debt securities, guarantees, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units. Because The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement became effective
immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three-year life of the registration statement.
Junior Subordinated Debentures
As of December 31, 2025 and 2024, the Company has outstanding $500 of callable junior subordinated debentures with a final maturity on February 12, 2067. Interest is payable quarterly in arrears at a variable rate that resets quarterly.
The $500 junior subordinated debentures due 2067 are unsecured, subordinated and junior in right of payment and upon liquidation to all of the Company’s existing and future senior indebtedness. In addition, the debentures are effectively subordinated to all of the Company’s subsidiaries’ existing and future indebtedness and other liabilities, including obligations to policyholders. The debentures do not limit the Company’s or the Company’s subsidiaries’ ability to incur additional debt, including debt that ranks senior in right of payment and upon liquidation to the debentures.
The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions.
The Company may elect to redeem the $500 junior subordinated debentures due 2067 in whole or in part for the principal amount being redeemed plus accrued and unpaid interest to the date of redemption.
In connection with the offering of this debenture, the Company entered into a Replacement Capital Covenant ("RCC") for the benefit of holders of one or more designated series of the Company's indebtedness, initially the Company's 4.3% notes due 2043. Under the terms of the RCC, if the Company redeems the debenture any time prior to February 12, 2047 (or such earlier date on which the RCC terminates by its terms) it can only do so with the proceeds from the sale of certain qualifying replacement securities.
Long-Term Debt
Long-term Debt Maturities (at par value) as of December 31, 2025
| 2026 - Current maturities | $ | — | |||
| 2027 | $ | — | |||
| 2028 | $ | — | |||
| 2029 | $ | 600 | |||
| 2030 | $ | — | |||
| Thereafter | $ | 3,882 | |||
Revolving Credit Facility
The Hartford has a $750 senior unsecured revolving credit facility, including $100 available to support letters of credit (the "Credit Facility"). On September 24, 2025, The Hartford amended and restated the Credit Facility, which, among other changes, extends the term of the facility through September 24, 2030. Under the Credit Facility:
•Revolving loans may be in multiple currencies.
•U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate plus a basis point spread based on The Hartford's credit rating and will mature no later than September 24, 2030.
•Letters of credit bear a fee based on The Hartford's credit rating and expire no later than September 24, 2031.
The Credit Facility requires the Company to maintain a minimum consolidated net worth financial covenant to $12.7 billion, excluding AOCI, limits the ratio of senior debt to capitalization, excluding AOCI, at 35% and includes other customary covenants. The Credit Facility is for general corporate purposes.
As of December 31, 2025 and 2024, no borrowings were outstanding, no letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants.
Lloyd's Letter of Credit Facility
The Hartford has a committed credit facility agreement with a syndicate of lenders (the"Lloyd's Facility"). On October 21, 2024, The Hartford amended and restated the Lloyd's Facility. The purpose of this facility is to issue letters of credit that may be treated as Funds at Lloyd's ("FAL") to support underwriting capacity provided by The Hartford Corporate Underwriters Limited to the Lloyd's syndicate 1221 for the 2025 and 2026 underwriting years of account (and prior open years). The amended and restated Lloyd's Facility has two tranches, with one tranche extending a $74 commitment and the other tranche extending a £74 million ($100 as December 31, 2025). The term of the facility is two years. As of December 31, 2025, letters of credit with an aggregate face amount of $74 and £74 million, or $100, were outstanding under the Lloyd's Facility. As of December 31, 2024, letters of credit with an aggregate face amount of $74 and £79 million, or $99, were outstanding under the Lloyd's Facility.
Among other covenants, the Lloyd's Facility contains financial covenants regarding The Hartford’s consolidated net worth and financial leverage. As of December 31, 2025, The Hartford was in compliance with all financial covenants of the facility.
Collateralized Advances with Federal Home Loan Bank of Boston
The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company ("HLA"), are members of the Federal Home Loan Bank of Boston ("FHLBB"). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. The amount of advances that can be taken is limited to a percentage of the fair value of the assets considered eligible collateral. In its consolidated balance sheets, The Hartford presents the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements.
Prior to October 1, 2025, the Connecticut Insurance Department ("CID") permitted Hartford Fire and HLA to pledge up to $1.4 billion and $0.6 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances. The pledge limit was determined quarterly based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively.
Effective October 1, 2025, the Company is no longer subject to the CID hypothecation limit or approval related to FHLBB advances. The Company's pledge capacity is now subject to FHLB's collateral eligibility requirements, which may be amended at their discretion. Based on these requirements, the Company estimates that Hartford Fire can pledge up to $2.6 billion and HLA can pledge up to $2.2 billion to secure FHLBB advances.
As of December 31, 2025 and 2024, there were no advances outstanding under the FHLBB facility.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.