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Hartford terminates NICO aggregate excess loss reinsurance in $1.12bn deal
Hartford Fire received a $1.12 billion cash payment on Sept. 25, and expects a $497 million pre-tax net gain with a $393 million net income increase in 2026.
The Hartford Insurance Group agreed to commute and terminate its aggregate excess of loss reinsurance agreement with National Indemnity Company (NICO), a Berkshire Hathaway subsidiary, ending coverage for asbestos and environmental adverse development that had been in place since Dec. 31, 2016, according to Reinsurance News.
Hartford Fire Insurance Company and certain affiliates entered into the commutation and release agreement with NICO on Sept. 23, and Hartford Fire received a $1.12 billion cash payment on Sept. 25. The parties terminated the reinsurance agreement and related documents and released each other from their obligations, while also resolving a confidential arbitration tied to a dispute under the agreement.
Hartford said it expects to recognize a $497 million pre-tax net gain and a $393 million increase in net income for the three and nine months ended Sept. 30, 2026, with no impact on core earnings. The company said the gain reflects the release of deferred gain on retroactive reinsurance following the commutation.