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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on HIG

The Hartford Financial Services Group's recent performance has been driven by robust fundamentals, solid underwriting, and significant premium growth. The company has demonstrated strong underwriting profitability, with a 16.2% Return on Equity (ROE) in Q1 2025. Additionally, The Hartford has returned $550 million to shareholders in the first quarter via share buybacks and dividends, reducing the share count by 20% over five years. The company's disciplined underwriting and pricing execution, exceptional talent, and innovative customer-centric solutions have driven its performance in a dynamic market environment.

1.c. Company Highlights

2. The Hartford Insurance Group's Q3 2025 Earnings: A Strong Performance

The Hartford Insurance Group delivered outstanding third quarter results, with core earnings of $1.1 billion or $3.78 per diluted share, both records for the company. The earnings per share (EPS) figure beat analysts' estimates of $3.09, indicating a strong performance. The company's written premium growth in Business Insurance was 9% with an underlying combined ratio of 89.4%, while Personal Insurance saw a 2% increase in written premium with an underlying combined ratio of 90%.

Publication Date: Oct -29

📋 Highlights
  • Record Core Earnings:: Achieved $1.1 billion ($3.78 per diluted share), driven by Business Insurance's 9% written premium growth and 89.4% combined ratio.
  • Business Insurance Momentum:: 11% written premium growth from double-digit gains in package products and auto; E&S binding surged 47% to $100+ million in Q3.
  • Employee Benefits Strength:: Core earnings of $149 million (8.3% margin), supported by group life loss ratio improvement to 74.2% and a 15% dividend boost to $0.60/share.
  • Disciplined Pricing Execution:: Business Insurance renewal pricing (7.3%, excluding workers' comp) outpaced loss trends, with general liability rates firming above loss trends.
  • Strategic Tech Investment:: $1.3 billion allocated to IT, including $500 million in innovation, focusing on cloud migration (AWS) and AI-driven process improvements.

Segment-wise Performance

In Business Insurance, written premium growth of 11% was fueled by double-digit increases in the company's industry-leading package product and auto. E&S binding also delivered exceptional results with written premium up 47%, reaching over $100 million in the quarter. In Personal Insurance, results continued to improve over the prior year, with homeowners delivering a 10% written premium growth and an underlying combined ratio in the mid-70s.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 1.87, The Hartford's valuation appears reasonable, considering its strong financial performance. The company's Dividend Yield is 1.7%, indicating a relatively stable return for investors. The Hartford's decision to increase the common quarterly dividend by 15% to $0.60 per share is a positive move, reflecting the company's confidence in its earnings power.

Growth Prospects and Underwriting Profitability

The Hartford's combined ratio, a measure of underwriting profitability, remained stable, with Business Insurance reporting an underlying combined ratio of 89.4%. The company's focus on maintaining margins and keeping up with loss cost trends is evident in its disciplined pricing execution. Analysts estimate next year's revenue growth at 6.2%, indicating a positive outlook for the company.

Investment Strategy and Capital Management

The Hartford continues to strategically manage its investment portfolio, balancing risk while pursuing accretive trading opportunities. The company's net investment income of $759 million increased by $100 million from the third quarter of 2024, driven by income from limited partnerships and other alternative investments. The company's capital management strategy is focused on returning value to shareholders, with $400 million spent on share repurchases during the quarter.

3. NewsRoom

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Aviso Financial Inc. Boosts Stock Holdings in The Hartford Insurance Group, Inc. $HIG

Nov -25

Source: defenseworld.net

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The Hartford Insurance Group (NYSE:HIG) Sets New 52-Week High – Time to Buy?

Nov -23

Source: defenseworld.net

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Bahl & Gaynor Inc. Has $296.41 Million Stock Holdings in The Hartford Insurance Group, Inc. $HIG

Nov -22

Source: defenseworld.net

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The Hartford Insurance Group, Inc. (NYSE:HIG) Given Average Recommendation of “Moderate Buy” by Analysts

Nov -22

Source: defenseworld.net

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HIG Q3 Earnings Beat Estimates on Personal Insurance Unit Strength

Oct -28

Source: zacks.com

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The Hartford Insurance Group, Inc. (HIG) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Hartford Insurance Group Shares Cross Below 200 DMA

Oct -28

Source: forbes.com

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Compared to Estimates, The Hartford Insurance Group (HIG) Q3 Earnings: A Look at Key Metrics

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Business Insurance

Expected Growth: 7.1%

This segment is expected to grow faster than the global growth hypothesis due to its focus on small and medium-sized businesses, which are driving economic growth.

Employee Benefits

Expected Growth: 6.5%

This segment is expected to grow slightly above the global growth hypothesis due to the increasing demand for employee benefits, and the company's strong presence in this market.

Corporate

Expected Growth: 5.8%

This segment is expected to grow slightly below the global growth rate due to the highly competitive nature of the large corporate insurance market.

Personal Insurance

Expected Growth: 6.8%

This segment is expected to grow above the global growth hypothesis due to the increasing demand for personal insurance products and the company's strong brand recognition.

Property and Casualty Other Operations

Expected Growth: 5.5%

This segment is expected to grow below the global growth hypothesis due to the highly competitive nature of the reinsurance market.

Hartford Funds

Expected Growth: 6.9%

This segment is expected to grow above the global growth hypothesis due to the increasing demand for investment products and the company's strong brand recognition.

7. Detailed Products

Commercial Insurance

Provides insurance coverage for businesses, including liability, property, and workers' compensation insurance.

Personal Insurance

Offers insurance coverage for individuals, including auto, home, and umbrella insurance.

Group Benefits

Provides employee benefits, including life, disability, and voluntary benefits.

Mutual Funds

Offers a range of mutual funds for investors, including equity, fixed income, and asset allocation funds.

Annuities

Provides fixed and variable annuities to help individuals save for retirement.

Workers' Compensation

Offers workers' compensation insurance to help businesses manage workplace injuries and illnesses.

Auto and Home Insurance for AARP Members

Provides auto and home insurance specifically designed for AARP members.

8. The Hartford Financial Services Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The Hartford Financial Services Group, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and diversified product offerings.

Bargaining Power Of Customers

The Hartford Financial Services Group, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

The Hartford Financial Services Group, Inc. relies on a network of independent agents and brokers to distribute its products, which gives them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The Hartford Financial Services Group, Inc. operates in a highly regulated industry, which creates barriers to entry for new entrants, and the company's strong brand recognition and established distribution network make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The Hartford Financial Services Group, Inc. operates in a highly competitive industry, with many established players, which leads to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.15%
Debt Cost 5.63%
Equity Weight 77.85%
Equity Cost 8.41%
WACC 7.79%
Leverage 28.46%

11. Quality Control: The Hartford Financial Services Group, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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PNC Financial Services Group

A-Score: 6.9/10

Value: 5.8

Growth: 6.0

Quality: 6.6

Yield: 8.0

Momentum: 6.0

Volatility: 9.0

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Hartford Financial Services

A-Score: 6.9/10

Value: 6.3

Growth: 7.3

Quality: 6.4

Yield: 4.0

Momentum: 7.0

Volatility: 10.0

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M&T Bank

A-Score: 6.6/10

Value: 6.6

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

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AIG

A-Score: 5.8/10

Value: 6.1

Growth: 2.6

Quality: 6.9

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

129.43$

Current Price

129.43$

Potential

-0.00%

Expected Cash-Flows