Hartford (HIG)
Financials · $36.1B market cap · SEC CIK 0000874766
ahead of 87% of the S&P 500 · #13 of 76 in Financials
Next reports on Jan 27, 2027, after the close, with analysts expecting $3.25 in earnings per share.
52-week range $120.42 to $146.07. 6% below its 52-week high and 14% above its low.
The case for HIG
- Cheap for its growth: 7.8× earnings, where 10%+ a year of growth plus a 2.4% dividend would justify about 27×.
- Earnings per share up 34.9%.
- Return on equity of 24%.
- Moves less than the market (beta 0.47).
- Pays a modest 2.4% dividend.
- Price/sales of 1.2× is lower than 86% of Financials companies.
The case against
- Weakest against its peers: revenue growth of +6.0% is slower than 67% of Financials companies.
- Its weakest area is the price trend (53/100): +4.2% over a year, −4.5% over three months, 6% below its 52-week high.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 82 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 61 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 59 |
| Momentumhow the price has behaved lately | 53 |
| Stabilityhow violently it moves, what it owes and what it pays you | 88 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +6.0% |
|---|---|
| Over 5 years | +6.7% a year |
| FY2025 revenue | $28.4B (+7%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Yes, improving
| Gross margin | n/a |
|---|---|
| Operating margin | 19% |
| Net margin, FY24 → FY25 → now | 11.7% → 13.5% → 15.9% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $177M |
|---|---|
| Long-term debt | $4.4B |
| Net debt | $4.2B |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 7.8× |
|---|---|
| Fair P/E for its growth | 27× |
| Price / book | 1.76× |
| Fair P/B for its ROE | 2.4× |
| Forward P/E | 9.7× |
| EV / EBITDA | 7.4× |
At 7.8× earnings it trades well below the 27× that 10%+ a year of growth plus a 2.4% dividend would justify. At 1.76× book it trades below the 2.4× that its 24% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Hartford's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $28.4B | $26.5B | $24.5B | $22.4B | $22.4B |
| Change on the year | +7% | +8% | +10% | 0% | — |
| Free cash flow | |||||
| Free cash flow | $5.8B | $5.8B | $4.0B | $3.8B | $4.0B |
| Of revenue | 20% | 22% | 16% | 17% | 18% |
| Profit margins | |||||
| Net margin | 13.5% | 11.7% | 10.2% | 8.1% | 10.6% |
| Debt vs. cash | |||||
| Cash | $177M | $234M | $189M | $344M | $337M |
| Long-term debt | $4.4B | $4.4B | $4.4B | $4.4B | $4.9B |
| Net cash (debt) | −$4.2B | −$4.1B | −$4.2B | −$4.0B | −$4.6B |
What Hartford says it does
(Dollar amounts in millions, except for per share data, unless otherwise stated) Index Description Page General 6 Organization 6 Purpose and Strategic Priorities 6 Reportable Segments and Corporate 7 Reserves 15 Underwriting for P&C and Employee Benefits 16 Claims Administration for P&C and Employee Benefits 16 Reinsurance 16 Investment Operations 17 Enterprise Risk Management 17 Regulation 17 Intellectual Property 18 Human Capital Resources 18 Available Information 20 General The Hartford Insurance Group, Inc. ("HIG") (together with its subsidiaries, “The Hartford”, the “Company”, “we”, or “our”) is a holding company for a group of subsidiaries that provide property and casualty ("P&C") insurance, employee group benefits insurance and services, and mutual funds and exchange-traded funds ("ETF") to individual and business customers in the United States, as well as in the United Kingdom and other international locations. The Hartford is…
Risk factors HIG lists in its 10-K
- The following risk factors have been organized by category for ease of use, however many of the risks may have impacts in more than one category
- The occurrence of certain of them may, in turn, cause the emergence or exacerbate the effect of others
- The Company could experience credit losses on various asset balances, including receivables and the principal amount of various invested assets, including fixed maturities and mortgage loans
- In addition to credit losses on invested assets, the Company could experience declines in the value of available for sale debt securities if credit spreads were to widen significantly, which would reduce stockholders’ equity
- The Company could also experience higher reinsurance costs and/or more limited availability of reinsurance coverage
- Furthermore, political instability, politically motivated violence or civil unrest, may increase the frequency and severity of insured losses
- If current regional and/or global conflicts were to expand, there could be insurance losses or adverse economic impacts
- If issuer credit spreads increase or widen, the market value of our investment portfolio may decline
- If the credit spread widening is significant and occurs over an extended period of time, the Company may recognize credit losses, resulting in decreased earnings
- If credit spreads tighten significantly, the Company’s net investment income associated with new purchases of fixed maturities may be reduced