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Hartford commutes NICO asbestos reinsurance pact for $1.12B; sees $497M pre-tax gain
HARTFORD INSURANCE GROUP, INC.
- Hartford Fire Insurance received $1.12B cash from National Indemnity Company, a Berkshire Hathaway subsidiary, on Sept 25, 2026, terminating their reinsurance agreement.
- The commuted Aggregate Excess of Loss Reinsurance Agreement had provided asbestos and environmental adverse development cover since Dec 31, 2016.
- The Commutation and Release Agreement, signed Sept 23, 2026, also resolves the confidential arbitration over the parties' dispute under the Reinsurance Agreement.
- Hartford expects a before-tax net gain of $497M and a $393M increase in net income for the three and nine months ended Sept 30, 2026.
- The gain reflects release of the deferred gain on retroactive reinsurance and has no impact on core earnings.