Hartford Financial (HIG) AI Stock Analysis

• Market Cap: $33.12B
• Dividend Yield: 1.71%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.53
• Revenue Growth: 8.19%
• EPS Growth: 29.77%
• Country: US
• Employees: 19,100
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Diversified
• EPS (TTM): 10.36
• Shares Outstanding: 285,395,420
• 10 Day Avg. Volume: 1,943,503
• 30 Day Avg. Volume: 1,809,765
• PEG Ratio: 0.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.28
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 4.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $130.08
• Price Target Upside: 12.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Hartford Financial's robust financial performance, highlighted by revenue growth and improved profit margins, is a key strength. The technical analysis presents a balanced outlook, while the low P/E ratio suggests potential undervaluation. The earnings call indicates strong operational performance despite some challenges, and recent strategic appointments further strengthen its position. Overall, the stock is well-positioned in the insurance industry with a promising outlook.

Positive Factors

Pricing Strategy

Pricing remains strong - CML pricing remained above loss trend for HIG and accelerated.

Share Repurchase

Share repurchases of $400 million came in above expectations.

Underwriting Performance

Strong underwriting improvements in personal lines were driven by pricing and better frequency in both auto and home.

Negative Factors

Earnings Performance

Earnings in group benefits were worse than consensus, impacted by higher loss ratio in paid family and medical leave products and higher long-term disability incidence.

Employee Group Benefits Margins

Potential headwinds exist due to deteriorating margins in Employee Group Benefits and Other Liability loss ratios.

General Liability Concerns

There is an ongoing debate about how the commercial segment reserving will develop, with concerns about general liability reserve charges.

Hartford Financial Business Overview & Revenue Model

Company Description

The Hartford Financial Services Group, Inc. provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers workers' compensation, property, automobile, liability, umbrella, bond, marine, livestock, and reinsurance; and customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. This segment distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers investment products for retail and retirement accounts; exchange-traded products through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers; and investment management and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.

How the Company Makes Money

Hartford Financial makes money primarily through its insurance operations, which include property and casualty insurance and group benefits. Revenue is generated from the premiums paid by policyholders for various insurance products, such as auto, home, and commercial insurance. The company also earns income from its investment management services, where it manages assets and mutual funds for individuals and institutions, collecting fees based on the assets under management. Significant partnerships with brokers and financial advisors help in distributing its products and expanding its client base. Additionally, Hartford Financial leverages its underwriting expertise to assess and manage risk efficiently, contributing to its profitability.

Hartford Financial Financial Statement Overview

Summary

Hartford Financial exhibits solid financial performance with strong revenue growth, improved profit margins, and effective cash flow management. The balance sheet remains healthy, though a slight increase in liabilities warrants attention. Overall, the company's financial health is strong, positioning it well in the insurance industry.

Income Statement

Hartford Financial has demonstrated strong revenue growth, with a revenue increase of 8.2% from 2023 to 2024. The net profit margin improved to 11.73% in 2024, up from 10.21% in 2023. However, the lack of EBIT and EBITDA data for 2024 impedes a full profitability assessment. Overall, consistent revenue growth and improved profitability are positive indicators.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.27 in 2024, indicating moderate leverage. The return on equity (ROE) improved to 18.91% in 2024 from 16.34% in 2023, reflecting effective use of equity. However, the equity ratio decreased slightly to 20.32% in 2024, highlighting a slight increase in liabilities relative to assets.

Cash Flow

Hartford Financial's free cash flow grew by 43.9% from 2023 to 2024, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.90 in 2024, indicating efficient cash conversion. However, the free cash flow to net income ratio is slightly lower at 1.85, suggesting room for improvement in cash retention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.54B	24.53B	22.36B	22.39B	20.52B
	Gross Profit
26.54B	24.53B	17.53B	17.61B	16.04B
	EBIT
0.00	3.31B	3.02B	2.81B	1.99B
	EBITDA
0.00	3.80B	3.10B	3.81B	2.92B
	Net Income Common Stockholders
3.11B	2.50B	1.82B	2.37B	1.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.25B	126.00M	40.32B	46.75B	48.47B
	Total Assets
80.92B	76.78B	73.02B	76.58B	74.11B
	Total Debt
4.37B	4.36B	4.36B	4.94B	4.35B
	Net Debt
4.18B	4.24B	4.13B	4.74B	4.20B
	Total Liabilities
64.47B	54.77B	59.39B	4.94B	4.35B
	Stockholders Equity
16.45B	15.33B	13.63B	17.84B	18.56B
Cash Flow		Free Cash Flow
5.76B	4.00B	3.83B	3.96B	3.76B
	Operating Cash Flow
5.91B	4.22B	4.01B	4.09B	3.87B
	Investing Cash Flow
-3.77B	-2.43B	-1.28B	-2.47B	-2.07B
	Financing Cash Flow
-2.08B	-1.95B	-2.71B	-1.58B	-1.78B

Hartford Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 116.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIG, the sentiment is Neutral. The current price of 116.05 is below the 20-day moving average (MA) of 119.27, below the 50-day MA of 116.33, and above the 200-day MA of 112.59, indicating a neutral trend. The MACD of 2.29 indicates Negative momentum. The RSI at 70.18 is Negative, neither overbought nor oversold. The STOCH value of 81.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIG.

Hartford Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$33.12B	11.21	19.58%	1.71%	8.19%	29.77%
ACGL	79 Outperform	$34.61B	8.23	22.02%	―	26.24%	-3.87%
AIG	70 Outperform	$47.49B	16.07	7.10%	1.97%	-28.56%	1.14%
PFG	66 Neutral	$16.19B	10.78	14.28%	4.01%	18.02%	171.70%
AEG	65 Neutral	$9.05B	13.15	9.36%	4.97%	-5.03%	―
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%
EQH	56 Neutral	$14.24B	12.29	61.74%	2.07%	16.81%	14.00%

Hartford Financial Corporate Events

Hartford Financial Announces Leadership Restructuring in 2025

On March 27, 2025, Deepa Soni resigned as executive vice president and chief information and operations officer of The Hartford Insurance Group, Inc., transitioning to an advisory role to support the transition. The company announced a new organizational structure for its Technology and Operations functions, appointing Shekar Pannala as chief information officer and Jeffery Hawkins as chief data, AI, and operations officer, both reporting directly to the CEO. This restructuring aims to enhance The Hartford’s technological capabilities and competitive advantages in the industry.

Hartford Financial Rebrands to Hartford Insurance Group

On February 6, 2025, The Hartford Financial Services Group, Inc. announced its rebranding to The Hartford Insurance Group, Inc., with effect from the same date. The Board of Directors approved changes to the company’s charter and bylaws, reflecting the new name and extending shareholders’ rights to call special meetings, indicating a strategic shift and new branding initiatives.