The Hartford has operating leases for real estate and equipment. The right-of-use asset as of December 31, 2025 and 2024 was $159 and $140, respectively, and is included in property and equipment, net, in the Consolidated Balance Sheets. The lease liability as of December 31, 2025 and 2024 was $169 and $145, respectively, and is included in other liabilities in the Consolidated Balance Sheets. Variable lease costs include changes in interest rates on variable rate leases primarily for automobiles.
Components of Lease Expense
| | | | | | | | | | | |
| For the years ended December 31, |
| 2025 | 2024 | 2023 |
| Operating lease cost | $ | 37 | | $ | 35 | | $ | 36 | |
| Short-term lease cost | 1 | | 1 | | — | |
| Variable lease cost | 1 | | 1 | | (2) | |
| Sublease income | (2) | | (3) | | (4) | |
Total lease costs included in insurance operating costs and other expenses | $ | 37 | | $ | 34 | | $ | 30 | |
Supplemental Operating Lease Information
| | | | | | | | | | | |
| For the years ended December 31, |
| 2025 | 2024 | 2023 |
| Operating cash flows for operating leases (for the twelve months ended) | $ | 32 | | $ | 33 | | $ | 37 | |
| Right-of-use asset obtained in exchange for new operating lease liabilities | 40 | | 25 | | 40 | |
| Weighted-average remaining lease term in years for operating leases | 6 years | 6 years | 7 years |
| Weighted-average discount rate for operating leases | 4.6 | % | 4.3 | % | 4.0 | % |
Maturities of Operating Lease Liabilities as of December 31, 2025
| | | | | |
| Operating Leases |
| 2026 | $ | 37 | |
| 2027 | 37 | |
| 2028 | 33 | |
| 2029 | 29 | |
| 2030 | 21 | |
| Thereafter | 35 | |
| Total lease payments | 192 | |
| Less: Discount on lease payments to present value | 23 | |
| Total lease liability | $ | 169 | |