10Y annualized return is
very good
at 11.6% per year
HIG has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Low Price-to-Earnings Ratio
Attractive Price-to-Sales Ratio
Strong Return on Equity
High Gross Profit Margin
Excellent Liquidity Ratios
Low Debt Levels
🏆 Strong Underwriting Execution
🌟 Market Leadership in Small Commercial
📈 Robust Investment Portfolio
🚀 Growth and Innovation Strategy
🔍 Focus on Digital Transformation
Higher Price-to-Book Ratio
Moderate Net Profit Margin
Lower Cash Ratio
⚠️ General Liability Reserve Strengthening
📉 Competitive Market Pressures
Overall, The Hartford exhibits strong business quality driven by excellent underwriting and market leadership, though it faces challenges in reserve management. Looking ahead, the company shows promising growth prospects through innovation and strategic investments, despite competitive market pressures.
Analysis Date: January 31, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
The Hartford Financial Services Group, Inc. is a company that provides different types of insurance and financial services to people and businesses. They help protect individuals with car and home insurance, while also offering coverage for businesses against risks like accidents and damages. Additionally, they provide group insurance plans, such as life and disability insurance, for employees at various companies. Founded in 1810 and based in Hartford, Connecticut, The Hartford aims to keep customers safe and secure in their personal and professional lives.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for The Hartford Insurance Group (HIG), delve into some of its key metrics to gai...
HIG remains well-poised for growth on the back of rate increases, new business growth and sound operating cash flows.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$132.90
Current Market Price: $110.77
IV/P Ratio: 1.20x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
17.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for HIG
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.68)
P/B ratio ≤ 1.5 (2.02)
Current ratio ≥ 2.0 (16.69x)
Long-term debt < Net current assets (0.45x)
Margin of safety (17.0%)
HIG does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.11%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
70.54%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
11.78%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
HIG has a return on equity (ROE) of 19.26%, indicating effective management and a strong ability to generate profit from shareholders' equity.
A gross profit margin of 70.54% shows that HIG maintains a strong pricing strategy and cost control, allowing significant revenue retention.
The net profit margin of 11.78% is decent but could be improved. This indicates that while the company is profitable, there may be room for operational efficiencies.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.27x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
16.69x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
HIG boasts a current ratio of 16.69 and a quick ratio of 16.69, indicating outstanding short-term liquidity and an ability to cover its short-term obligations.
A debt-to-equity ratio of 0.27 and a debt-to-assets ratio of 0.05 indicate that HIG is conservatively financed, which is a strong point for financial stability.
With a cash ratio of 0.30, HIG has a limited cash reserve relative to its liabilities, which could pose a risk in times of unexpected downturns.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
The Hartford has demonstrated exceptional underwriting execution with an underlying combined ratio of 87.9 for the year, indicating disciplined underwriting practices. The company also achieved a core earnings return on equity (ROE) of 16.7%, reflecting strong profitability.
The Hartford was ranked as the number one Small Commercial carrier for six consecutive years, showcasing its competitive advantage and strong digital capabilities, which contribute to customer satisfaction and retention.
The investment portfolio continues to perform well with a total annualized portfolio yield of 4.6% before tax, which supports the company's financial goals and provides a solid foundation for future growth.
The company had to strengthen its general liability reserves by $130 million, indicating potential challenges in accurately assessing future liabilities, particularly with increasing settlement costs and attorney representation rates.
The Hartford is committed to advancing its growth and innovation strategy, particularly in Commercial Lines and Personal Lines, with expectations of continued topline growth and improved combined ratios across various segments.
The company's ongoing investments in technology and data science are expected to drive competitive advantages and enhance operational efficiency, positioning The Hartford well for future market opportunities.
The company faces competitive pressures in the Middle & Large Commercial sectors, which could impact growth rates and margins if not managed carefully.