Hartford Insurance (HIG)
NYSE:HIG
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Hartford Insurance
(NYSE:HIG)
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Rating:79Outperform
Price Target:
$161.00
▲(14.67% Upside)
Action:ReiteratedDate:02/21/26
HIG scores well primarily on improving financial performance (strong profitability/ROE with conservative leverage) and a positive earnings outlook with accelerating capital returns and investment income tailwinds. Valuation is supportive with a low P/E. The score is moderated by typical insurer volatility (reserve/cat and cash timing) and only moderately strong technical momentum.
Positive Factors
Strong profitability and ROE
Sustained core earnings and a ~19.4% ROE signal durable capital efficiency across underwriting and investments. High ROE supports repeatable capital returns (dividends/buybacks) and internal reinvestment capacity, underpinned by disciplined underwriting and improving margins.
Negative Factors
Reserve risk: asbestos & environmental
Material reserve additions for asbestos/environmental exposures highlight latent liability risk that can crystallize over years. Such reserve volatility can erode underwriting margin and capital, requiring ongoing monitoring and potentially higher future pricing or capital cushions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Sustained core earnings and a ~19.4% ROE signal durable capital efficiency across underwriting and investments. High ROE supports repeatable capital returns (dividends/buybacks) and internal reinvestment capacity, underpinned by disciplined underwriting and improving margins.
Read all positive factors
Hartford Insurance (HIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.73B
Dividend Yield1.55%
Average Volume (3M)1.50M
Price to Earnings (P/E)10.1
Beta (1Y)0.47
Revenue Growth7.11%
EPS Growth22.52%
CountryUS
Employees19,100
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)4.06
Shares Outstanding275,863,220
10 Day Avg. Volume1,092,529
30 Day Avg. Volume1,502,799
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.05
Price to Sales (P/S)1.38
P/FCF Ratio6.76
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda7.94
Forecast
1Y Price Target
$151.33Price Target Upside7.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)13.44
Revenue Forecast (FY)$28.22B
Hartford Insurance 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, pr...
How the Company Makes Money
Hartford generates revenue through multiple key streams. The Property & Casualty segment earns money by underwriting various insurance policies and collecting premiums from policyholders, which can include commercial and personal lines insurance. ...
Hartford Insurance Key Performance Indicators (KPIs)
Any
Net Income by Segment
Reveals profitability across different business units, highlighting which segments drive earnings and where there might be challenges or opportunities for growth.
Reveals profitability across different business units, highlighting which segments drive earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyHartford Insurance Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook: strong full-year and quarterly core earnings, high ROE, continued top-line growth in Business Insurance (notably small business and ENS binding), significant investment and early payoffs from technology/AI, solid investment income, and an active capital return program. Headwinds are present but manageable — increases in asbestos/environmental reserves, moderation in property pricing, rising disability loss trends, and higher expense ratios due to strategic investments. Management emphasizes disciplined underwriting, margin focus, and confidence in taking market share, suggesting the positives materially outweigh the negatives.Positive Updates
Strong Full-Year Core Earnings and ROE
Core earnings of $3.8 billion for 2025 with core earnings ROE of 19.4%, reflecting strong enterprise profitability and return on equity.
Negative Updates
Asbestos and Environmental Reserve Increases
Increase in asbestos reserves (noted as $122 million) driven by higher-than-expected frequency, higher settlement rates, and higher settlement values for certain accounts; environmental reserve increases (~$43 million) due to higher cleanup/monitoring costs and legal expenses, creating reserve pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Core Earnings and ROE
Core earnings of $3.8 billion for 2025 with core earnings ROE of 19.4%, reflecting strong enterprise profitability and return on equity.
Read all positive updates
Company Guidance
The company guided that for 2026 it expects roughly $2.9 billion of net dividends from operating companies (about a 16% increase vs. 2025), will raise quarterly share repurchases to $450 million beginning in Q1 (after repurchasing ~3 million shares for $400 million this quarter and with $1.55 billion of repurchase authorization through 12/31/2026), and anticipates higher net investment income supported by larger invested assets and improved LP returns (Q4 NII $832 million, +17% YoY; portfolio yield ex‑LPs 4.6%; Q4 annualized LP returns 11.4%). Operationally Prevail is live in ~10 agency states with ~30 state launches planned by early 2027 and Hartford expects agency auto and home policy counts to grow in 2026; business insurance renewal pricing was reported at 4.3% all‑in (7.7% ex‑workers’ comp) with another measure at 6.1% ex‑WC, BI wrote ~7% premium growth in 2025 (small business $6 billion, +9%, underlying combined in the high‑80s), global specialty and middle & large grew ~5% with high‑80s underlying combined ratios, personal underlying combined was ~84.3 with Q4 auto pricing +10.4% and homeowners +11.9%, employee benefits showed a ~8% core margin for 2025 (Q4 margin 7.6%) with group life loss ratio 76.9 and disability 70.5, and catastrophe protection was expanded to a $1.9 billion peak per‑occurrence program plus an aggregate treaty of $200 million excess of $750 million.Hartford Insurance Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
79
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.26B | 26.38B | 24.33B | 21.85B | 21.65B |
| Gross Profit | 13.02B | 3.97B | 3.17B | 2.05B | 2.47B |
| EBITDA | 5.36B | 4.21B | 3.60B | 2.89B | 3.58B |
| Net Income | 3.84B | 3.11B | 2.50B | 1.82B | 2.37B |
Balance Sheet | |||||
| Total Assets | 86.00B | 80.92B | 70.10B | 73.02B | 76.58B |
| Cash, Cash Equivalents and Short-Term Investments | 4.49B | 4.25B | 126.00M | 4.09B | 46.75B |
| Total Debt | 4.37B | 4.37B | 4.36B | 4.36B | 4.94B |
| Total Liabilities | 67.02B | 64.47B | 54.77B | 59.39B | 58.73B |
| Stockholders Equity | 18.98B | 16.45B | 15.33B | 13.63B | 17.84B |
Cash Flow | |||||
| Free Cash Flow | 5.75B | 5.76B | 4.00B | 3.83B | 3.96B |
| Operating Cash Flow | 5.92B | 5.91B | 4.22B | 4.01B | 4.09B |
| Investing Cash Flow | -3.76B | -3.77B | -2.43B | -1.28B | -2.41B |
| Financing Cash Flow | -2.23B | -2.08B | -1.95B | -2.71B | -1.58B |
Hartford Insurance Technical Analysis
Positive
140.40
Price Trends
137.53
Positive
135.76
Positive
131.23
Positive
Market Momentum
0.22
Negative
61.71
Neutral
88.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIG, the sentiment is Positive. The current price of 140.4 is above the 20-day moving average (MA) of 134.91, above the 50-day MA of 137.53, and above the 200-day MA of 131.23, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIG.
Hartford Insurance Risk Analysis
Hartford Insurance disclosed 40 risk factors in its most recent earnings report. Hartford Insurance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hartford Insurance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $35.17B | 7.15 | 19.02% | ― | 16.68% | -28.54% | |
79 Outperform | $38.73B | 10.14 | 21.37% | 1.55% | 7.11% | 22.52% | |
73 Outperform | $20.02B | 9.49 | 10.26% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $41.70B | 15.62 | 7.50% | 2.02% | -23.02% | 52.43% | |
65 Neutral | $11.74B | 10.92 | 11.63% | 5.77% | -6.19% | ― | |
50 Neutral | $10.79B | 15.82 | -152.32% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
HIG
Hartford Insurance
140.40
26.26
23.01%
AEG
Aegon
7.85
2.18
38.45%
AIG
American International Group
77.72
-2.45
-3.05%
ACGL
Arch Capital Group
98.84
6.71
7.28%
PFG
Principal Financial
92.32
22.41
32.06%
EQH
Equitable Holdings
38.48
-6.86
-15.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.