Hartford Insurance (HIG) AI Stock Analysis

• Market Cap: $37.87B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.44
• Revenue Growth: 7.11%
• EPS Growth: 22.52%
• Country: US
• Employees: 19,100
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 3.78
• Shares Outstanding: 278,650,300
• 10 Day Avg. Volume: 842,831
• 30 Day Avg. Volume: 1,357,917
• PEG Ratio: 0.35
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 5.58
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: 8.87
• 1Y Price Target: $148.06
• Price Target Upside: 7.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $148.00 ▲(7.32% Upside)

Hartford Financial's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust earnings and strategic growth. The valuation is attractive, though technical analysis indicates mixed market sentiment. The company's ability to navigate competitive pressures and maintain strong capital generation supports a favorable outlook.

Positive Factors

Revenue Growth

Sustained revenue growth in Business Insurance indicates strong market demand and effective sales strategies, supporting long-term expansion.

Dividend Increase

A significant dividend increase reflects robust earnings power and strong capital generation, enhancing shareholder value and confidence.

Cash Flow Strength

Strong cash flow performance ensures liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Global Specialty Decline

Decline in Global Specialty wholesale due to reduced construction projects may indicate sector-specific challenges impacting future growth.

Competitive Market Pressure

Intense competition in Personal Insurance could pressure margins and slow growth, necessitating strategic adjustments to maintain market share.

Middle & Large Business Competition

Competitive pressures in Middle & Large business segments may lead to pricing challenges, affecting profitability and necessitating cautious underwriting.

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, 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 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. The Group Benefits segment provides employee benefits solutions, where revenue is derived from premiums paid by employers for coverage such as short-term disability and group life insurance. Additionally, Hartford's Mutual Funds segment earns management fees from investment products and services offered to consumers and institutions. The company also benefits from investment income generated from its own investment portfolio, which includes fixed income and equity securities. Strategic partnerships with brokers and agents enhance its distribution capabilities, further contributing to its earnings.

Hartford Insurance Financial Statement Overview

Summary

Hartford Financial exhibits strong financial health with consistent revenue and profit growth, efficient operations, and effective capital management. The income statement, balance sheet, and cash flow metrics are all robust, though there is room for improvement in the equity ratio.

Income Statement

Hartford Financial shows strong income statement performance with consistent revenue growth and improving profit margins. The TTM data indicates a gross profit margin of 16.09% and a net profit margin of 12.80%, both of which are healthy for the industry. Revenue growth has been positive, with a 1.59% increase in the latest TTM period. The EBIT and EBITDA margins are also robust, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.24 in the TTM period, indicating prudent leverage. Return on equity is strong at 20.55%, showcasing effective use of equity capital. The equity ratio stands at 21.70%, reflecting a stable capital structure. However, the relatively low equity ratio suggests some room for improvement in asset financing.

Cash Flow

Cash flow performance is commendable, with a free cash flow growth rate of 3.06% in the TTM period. The operating cash flow to net income ratio is high at 9.75, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.98, demonstrating efficient cash conversion. Overall, cash flow metrics suggest robust liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.70B	26.38B	24.33B	21.85B	21.65B	20.32B
Gross Profit	4.47B	3.97B	3.17B	2.05B	2.47B	2.33B
EBITDA	4.82B	4.21B	3.60B	2.89B	3.58B	2.68B
Net Income	3.56B	3.11B	2.50B	1.82B	2.37B	1.74B
Balance Sheet
Total Assets	85.00B	80.92B	70.10B	73.02B	76.58B	74.11B
Cash, Cash Equivalents and Short-Term Investments	4.37B	4.25B	126.00M	4.09B	46.75B	48.47B
Total Debt	4.37B	4.37B	4.36B	4.36B	4.94B	4.35B
Total Liabilities	66.55B	64.47B	54.77B	59.39B	58.73B	55.55B
Stockholders Equity	18.45B	16.45B	15.33B	13.63B	17.84B	18.56B
Cash Flow
Free Cash Flow	5.89B	5.76B	4.00B	3.83B	3.96B	3.76B
Operating Cash Flow	5.99B	5.91B	4.22B	4.01B	4.09B	3.87B
Investing Cash Flow	-3.81B	-3.77B	-2.43B	-1.28B	-2.41B	-2.12B
Financing Cash Flow	-2.24B	-2.08B	-1.95B	-2.71B	-1.58B	-1.78B

Hartford Insurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.91
• 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 137.91 is above the 20-day moving average (MA) of 137.58, above the 50-day MA of 133.46, and above the 200-day MA of 127.42, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 39.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIG.

Hartford Insurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$34.51B	9.02	17.81%	―	16.68%	-28.54%
HIG	78 Outperform	$37.87B	11.27	20.07%	1.55%	7.11%	22.52%
PFG	76 Outperform	$19.97B	13.35	13.74%	3.44%	12.33%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEG	64 Neutral	$11.39B	8.61	14.42%	5.77%	-6.19%	―
AIG	64 Neutral	$41.59B	13.96	7.68%	2.02%	-23.02%	52.43%
EQH	40 Underperform	$13.68B	-17.33	-41.33%	2.15%	7.70%	-155.12%