Hartford Financial (HIG) AI Stock Analysis

• Market Cap: $34.21B
• Dividend Yield: 1.67%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.50
• Revenue Growth: 7.55%
• EPS Growth: 14.16%
• Country: US
• Employees: 19,100
• Sector: Financial
• Sector Strength: 85
• Industry: Insurance - Diversified
• EPS (TTM): 10.03
• Shares Outstanding: 284,103,000
• 10 Day Avg. Volume: 1,429,356
• 30 Day Avg. Volume: 1,729,482
• PEG Ratio: 0.85
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $131.42
• Price Target Upside: 7.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Hartford Financial's robust financial performance, characterized by strong revenue and profit growth, efficient operations, and solid cash flow generation, significantly contribute to its stock score. The technical analysis supports positive momentum, while valuation metrics indicate the stock is attractively priced. The earnings call highlights growth potential despite some challenges, rounding out a strong overall score.

Positive Factors

Financial Performance

HIG reported better-than-expected results in Property & Casualty underlying results and Employee Benefits.

Reserve Management

HIG is confident that they have put a good, if not all, of the GL issues behind them.

Negative Factors

Catastrophe Impact

Catastrophe losses came in higher than expected, with significant contributions from California fires.

Investment Income

Investment income missed expectations due to weaker results in limited partnerships.

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 a strong financial profile with robust revenue and profit growth, efficient operations, and stable leverage. The company demonstrates solid cash flow generation, supporting its financial health and growth potential. While the margins reflect stability, maintaining this trajectory in a competitive industry will be crucial.

Income Statement

The income statement shows strong performance with a consistent revenue growth over the years, particularly a 9.30% increase in 2024 and a 6.20% increase in TTM. The gross profit margin stands at 75.76% TTM, indicating efficient cost management. Net profit margin is solid at 11.14% TTM, although slightly decreased from the previous year. EBIT and EBITDA margins are healthy, reflecting robust core operations despite minor fluctuations.

Balance Sheet

The balance sheet reflects a stable financial position with an equity ratio of 20.47% TTM, showing reliance on equity financing. The debt-to-equity ratio is moderate at 0.26 TTM, indicating manageable leverage within the industry norms. Return on Equity is strong at 17.74% TTM, suggesting efficient use of equity to generate profits. However, consistent monitoring of liabilities is advised.

Cash Flow

Cash flow statements reveal solid cash generation capabilities with a stable operating cash flow. The free cash flow to net income ratio is high at 1.90 TTM, indicating strong free cash flow generation relative to net income. While free cash flow growth rate shows a slight decrease, the overall cash flow position remains healthy and supports future growth initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.38B	24.53B	22.36B	22.39B	20.52B
	Gross Profit
26.54B	24.53B	17.53B	17.61B	16.04B
	EBIT
3.85B	3.31B	3.02B	2.81B	1.99B
	EBITDA
4.40B	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: Positive
• Last Price: 122.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 122.67 is above the 20-day moving average (MA) of 117.79, above the 50-day MA of 117.78, and above the 200-day MA of 113.65, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 89.82 is Negative, 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	83 Outperform	$34.21B	12.00	18.49%	1.67%	7.55%	14.16%
ACGL	78 Outperform	$34.26B	8.15	22.02%	―	26.24%	-3.87%
AIG	68 Neutral	$47.59B	16.10	7.10%	1.95%	-28.56%	1.14%
EQH	65 Neutral	$15.47B	13.34	61.74%	1.93%	16.81%	14.00%
Sector *	63 Neutral	$12.37B	9.56	7.95%	79.17%	12.62%	-5.26%
AEG	63 Neutral	$10.14B	14.39	9.36%	4.60%	-5.03%	―
PFG	63 Neutral	$16.62B	15.83	9.70%	3.96%	-18.19%	―

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.