Hartford Insurance Group terminates reinsurance agreement for $1.12 billion

The Hartford Insurance Group, Inc. (HIG) said on Thursday that its subsidiary Hartford Fire Insurance Company entered into a Reinsurance Commutation and Release Agreement with National Indemnity Company, a subsidiary of Berkshire Hathaway Inc.

According to a regulatory filing, the agreement terminated an existing Aggregate Excess of Loss Reinsurance Agreement that had provided asbestos and environmental adverse development cover reinsurance since December 31, 2016.

The agreement also resolves a confidential arbitration concerning a dispute between the parties under the reinsurance agreement.

On September 25, 2026, Hartford Fire Insurance Company received a cash payment of $1.12 billion.

Following receipt of the payment, the reinsurance agreement was terminated, and the parties were released from their liabilities and obligations under the agreement and related transaction documents.

As a result of the transaction, the company expects to recognize a before-tax net gain of $497 million and an increase in net income of $393 million for the three and nine months ended September 30, 2026.

The company said the transaction will have no impact on core earnings.

The before-tax gain reflects the release of the deferred gain on retroactive reinsurance after giving effect to the commutation.