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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 Insurance Group's recent performance has been positively driven by growth in its business insurance segment, showcasing resilience after previous challenges. Assenagon Asset Management S.A. significantly increased its stake by 162.4%, now owning 312,184 shares. Additionally, Osaic Holdings Inc. boosted its holdings by 217.0% in the second quarter. The company also declared a quarterly dividend of $375 per share of Series G preferred stock. Its business insurance niche continues to grow, with a proven 10-year dividend growth history and strong investment-grade credit grades from three agencies.

1.c. Company Highlights

2. The Hartford Financial Services Group, Inc. Delivers Strong Q4 and Full-Year 2025 Earnings

The Hartford Financial Services Group, Inc. reported outstanding fourth-quarter and full-year 2025 earnings, with core earnings of $1.1 billion or $4.06 per diluted share, significantly beating analyst estimates of $3.22. The company's full-year core earnings ROE stood at 19.4%. Business insurance delivered robust top-line growth of 7% with an underlying combined ratio of 88.1, reflecting disciplined underwriting. The personal insurance segment also saw underlying margin improvement, driven by auto achieving targeted profitability and home producing outstanding results. Employee benefits reported an impressive core earnings margin of 8.2%, led by strong life and disability results.

Publication Date: Feb -02

📋 Highlights
  • 2025 Core Earnings & ROE:: $1.1 billion (Q4) or $4.6/share; full-year ROE of 19.4%
  • Business Insurance Growth:: 7% top-line growth with 88.1 underlying combined ratio
  • Employee Benefits Margin:: 8.2% core earnings margin driven by life/disability performance
  • Investment Income Boost:: $832 million net investment income (+17% YoY); 4.6% annualized yield
  • Capital Returns Plan:: $450M quarterly share repurchases and $2.9B net dividends expected in 2026 (+16%)

Segment Performance

The Business Insurance segment reported strong written premium growth across all three units, driven by new business, stable retention, and pricing increases. The underlying margin was 88.5% for 2025, reflecting disciplined underwriting. Renewal written pricing excluding workers' compensation was 6.1% for the quarter. The company expects to sustain industry-leading ROEs through disciplined underwriting and risk selection. In the personal lines, the company is growth-focused, having pivoted to growth in the third quarter of last year, and expects margin improvement in 2026.

Investment Portfolio and Capital Management

The investment portfolio generated solid performance, with net investment income of $832 million, up 17% from fourth-quarter 2024. The total annualized portfolio yield, excluding limited partnerships, was 4.6% before tax. The company increased its dividend by $400 million and share buybacks by $50 million a quarter, or $200 million for the full year, demonstrating a balanced approach to capital management. Holding company resources totaled $1.5 billion as of December 31.

Outlook and Valuation

Looking ahead to 2026, the company expects net dividends from operating companies of approximately $2.9 billion, a 16% increase over 2025. Analysts estimate next year's revenue growth at 4.6%. With a Price-to-Book Ratio of 1.98, the stock appears reasonably valued. The Dividend Yield stands at 1.6%, providing a relatively stable return. The company's ROE of 21.37% and ROIC of 28.21% indicate strong profitability. Overall, The Hartford Financial Services Group, Inc. is well-positioned for continued growth and profitability.

3. NewsRoom

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The Hartford Insurance Group Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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The Hartford Insurance Group Inc (HIG) Q4 2025 Earnings Call Highlights: Strong Core Earnings and Strategic Growth Initiatives

Jan -30

Source: gurufocus.com

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The Hartford Insurance Group, Inc. (HIG) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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HIG Posts Q4 Earnings Beat on Higher Premiums & Investment Income

Jan -30

Source: zacks.com

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Bank of New York Mellon Corp Lowers Position in The Hartford Insurance Group, Inc. $HIG

Jan -30

Source: defenseworld.net

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Here's What Key Metrics Tell Us About The Hartford Insurance Group (HIG) Q4 Earnings

Jan -30

Source: zacks.com

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The Hartford Reports Outstanding Fourth Quarter Earnings Of $1.1 Billion And Full Year 2025 Earnings Of $3.8 Billion

Jan -29

Source: businesswire.com

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B. Riley Wealth Advisors Inc. Has $675,000 Stock Holdings in The Hartford Insurance Group, Inc. $HIG

Jan -29

Source: defenseworld.net

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

Stock-Card
Hartford Financial Services

A-Score: 7.0/10

Value: 6.7

Growth: 7.3

Quality: 6.6

Yield: 4.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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PNC Financial Services Group

A-Score: 6.5/10

Value: 5.7

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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M&T Bank

A-Score: 6.2/10

Value: 6.5

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Prudential Financial

A-Score: 6.0/10

Value: 7.0

Growth: 3.4

Quality: 5.3

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
AIG

A-Score: 5.3/10

Value: 3.9

Growth: 2.6

Quality: 6.3

Yield: 4.0

Momentum: 6.0

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

137.17$

Current Price

137.17$

Potential

-0.00%

Expected Cash-Flows