Hartford takes $1.12 billion from Berkshire unit to end asbestos reinsurance deal

The Hartford Insurance Group, Inc. (NYSE: HIG) said subsidiaries including Hartford Fire Insurance Company commutated and terminated a long-running asbestos and environmental reinsurance cover with National Indemnity Company, a Berkshire Hathaway Inc. unit, after receiving a $1.12 billion cash payment on Sept. 25, 2026. Shares finished near $124.23, down about 1.2% on the day and about 9.4% year to date.

In a Form 8-K filed after the close Friday, The Hartford said Hartford Fire and certain affiliates (the “Hartford Insurers”) entered a Reinsurance Commutation and Release Agreement with National Indemnity on Sept. 23, 2026. The deal ends their Aggregate Excess of Loss Reinsurance Agreement, which has provided asbestos and environmental adverse development cover since Dec. 31, 2016, along with related transaction documents. The commutation also resolves a confidential arbitration over a dispute under that reinsurance agreement.

Upon receipt of the $1.12 billion on Sept. 25, the reinsurance agreement was commutated and terminated, and the Hartford Insurers and National Indemnity were released from liabilities and obligations arising under that agreement and related documents, the filing said.

For the three and nine months ended Sept. 30, 2026, The Hartford expects to recognize a before-tax net gain of $497 million and an increase in net income of $393 million, with no impact on core earnings. The pretax gain reflects the release of the deferred gain on retroactive reinsurance after giving effect to the commutation, according to the 8-K.

By the numbers

• Cash received: $1.12 billion (Sept. 25, 2026)
• Expected pretax net gain: $497 million
• Expected net income increase: $393 million
• Core earnings impact: none
• Cover in place since: Dec. 31, 2016
• Commutation agreement dated: Sept. 23, 2026

Sources

1. The Hartford Insurance Group, Inc. Form 8-K, accession 0000874766-26-000064 (Items 1.02, 7.01)

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