Hartford Financial (HIG) AI Stock Analysis

• Market Cap: $37.07B
• Dividend Yield: 1.58%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.52
• Revenue Growth: 7.67%
• EPS Growth: 15.99%
• Country: US
• Employees: 19,100
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 3.41
• Shares Outstanding: 281,171,660
• 10 Day Avg. Volume: 1,605,965
• 30 Day Avg. Volume: 1,406,521
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $142.56
• Price Target Upside: 8.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 80 Outperform
• Price Target: $154.00 ▲(16.80% Upside)

Hartford Financial's strong financial performance and strategic growth initiatives are the primary drivers of its high score. The company's robust profitability, efficient cash management, and strategic investments in technology position it well for future growth. Technical indicators suggest positive momentum, though caution is warranted due to overbought signals. Valuation metrics indicate the stock is fairly valued, providing a balanced outlook for investors.

Positive Factors

Revenue Growth

The 8% growth in Business Insurance indicates strong market demand and effective strategy execution, supporting long-term revenue expansion.

Strategic Investments

Strategic investments in AI and technology improve operational efficiency, positioning the company for sustained growth and competitive advantage.

Balance Sheet Health

Low leverage with a Debt-to-Equity Ratio of 0.25 ensures financial stability and flexibility, supporting long-term strategic initiatives.

Negative Factors

Workers' Compensation Pricing Pressure

Declining workers' compensation pricing pressures profitability, potentially impacting future earnings and market competitiveness.

Flat Growth in Employee Benefits Premium

Flat growth in Employee Benefits premiums indicates competitive market challenges, potentially limiting revenue growth in this segment.

Personal Auto Policy Count Decline

A decline in auto policy count suggests challenges in customer retention and acquisition, affecting future revenue in the personal insurance segment.

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 makes money primarily through premium collections from its insurance operations. The company generates revenue by underwriting various types of insurance policies, which include auto, homeowners, and commercial insurance. It also earns investment income from the assets it holds to back its insurance policies and from its investment management services. Key revenue streams include the sale of group benefits insurance products and mutual funds. The company benefits from partnerships with independent agents and brokers who distribute its insurance products, enhancing its market reach and client acquisition. Furthermore, Hartford strategically invests in its own portfolio, which allows for additional revenue through investment gains.

Hartford Financial Financial Statement Overview

Summary

Hartford Financial demonstrates strong profitability with solid margins and revenue growth. The balance sheet shows low leverage, and cash flow metrics indicate efficient cash utilization. Overall, the company is financially robust and well-positioned for future growth.

Income Statement

Hartford Financial exhibits solid profitability with a TTM Gross Profit Margin of 15.23%, and a Net Profit Margin of 11.90%. The company has maintained a healthy revenue growth rate of 3.37% from the previous year. EBIT and EBITDA margins stand at 14.87% and 15.83% respectively, indicating efficient cost management and operational effectiveness. The consistent revenue growth reflects strong market positioning in the insurance sector.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.25, which indicates low leverage and a conservative approach in capital structure. The Return on Equity is robust at 18.52%, showcasing effective use of shareholder funds to generate profits. However, the Equity Ratio of 20.94% suggests a moderate degree of financial stability, with potential room for improving equity financing.

Cash Flow

Hartford Financial demonstrates strong cash flow management with a Free Cash Flow Growth Rate of -0.83% in the TTM period, which remains relatively stable. The Operating Cash Flow to Net Income Ratio is 1.80, indicating efficient conversion of earnings into cash. The Free Cash Flow to Net Income Ratio of 1.76 further supports the company's ability to generate cash, ensuring liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.27B	26.38B	24.33B	21.85B	21.65B	20.32B
Gross Profit	4.15B	3.97B	3.17B	2.05B	2.47B	2.33B
EBITDA	4.41B	4.21B	3.60B	2.89B	3.58B	2.68B
Net Income	3.25B	3.11B	2.50B	1.82B	2.37B	1.74B
Balance Sheet
Total Assets	83.64B	80.92B	76.78B	73.02B	76.58B	74.11B
Cash, Cash Equivalents and Short-Term Investments	3.81B	4.25B	19.30B	4.09B	46.75B	48.47B
Total Debt	4.37B	4.37B	4.36B	4.36B	4.94B	4.35B
Total Liabilities	66.12B	64.47B	61.45B	59.39B	58.73B	55.55B
Stockholders Equity	17.52B	16.45B	15.33B	13.63B	17.84B	18.56B
Cash Flow
Free Cash Flow	5.72B	5.76B	4.00B	3.83B	3.96B	3.76B
Operating Cash Flow	5.83B	5.91B	4.22B	4.01B	4.09B	3.87B
Investing Cash Flow	-3.59B	-3.77B	-2.43B	-1.28B	-2.41B	-2.12B
Financing Cash Flow	-2.22B	-2.08B	-1.95B	-2.71B	-1.58B	-1.78B

Hartford Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 131.85 is above the 20-day moving average (MA) of 131.72, above the 50-day MA of 128.67, and above the 200-day MA of 120.51, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 49.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIG.

Hartford Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	80 Outperform	$37.07B	11.95	19.55%	1.58%	7.67%	15.99%
ACGL	78 Outperform	33.87B	9.37	16.21%	―	23.79%	-32.09%
PFG	73 Outperform	18.23B	16.59	14.17%	3.69%	-3.34%	-3.32%
AIG	70 Outperform	43.16B	14.22	7.71%	2.18%	-33.87%	-5.72%
AEG	69 Neutral	12.62B	8.86	7.49%	5.49%	-6.19%	―
EQH	57 Neutral	15.75B	43.59	41.69%	1.94%	5.05%	-47.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hartford Financial Corporate Events

Hartford Financial Appoints Thomas Bartlett to Board

On June 10, 2025, The Hartford announced the appointment of Thomas Bartlett to its board of directors, effective July 1, 2025. Bartlett, a former CEO of American Tower Corp. and a veteran of Verizon Communications, brings extensive C-suite experience and financial acumen to the board. His appointment is expected to enhance the company’s strategic direction and shareholder growth through innovation and customer focus.