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The Hartford (HIG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended June 2023, The Hartford (HIG - Free Report) reported revenue of $4.08 billion, up 8.3% over the same period last year. EPS came in at $1.88, compared to $2.15 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $4.09 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of +1.62%, with the consensus EPS estimate being $1.85.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how The Hartford performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Commercial line - Combined ratio: 91.2% compared to the 92.59% average estimate based on six analysts.
  • Commercial line - Expense ratio: 31.3% versus the six-analyst average estimate of 31.41%.
  • Commercial line - Loss and loss adjustment expense ratio: 59.7% versus 60.87% estimated by six analysts on average.
  • Personal line - Combined ratio: 114.9% versus the five-analyst average estimate of 106.63%.
  • Fee income- Personal Lines: $7 million versus the five-analyst average estimate of $7.46 million.
  • Revenue- Earned premiums- Group benefits: $1.57 billion compared to the $1.55 billion average estimate based on five analysts. The reported number represents a change of +7.2% year over year.
  • Earned Premium- Personal Lines: $760 million versus the five-analyst average estimate of $755.35 million. The reported number represents a year-over-year change of +4.7%.
  • Total Property & Casualty- Earned Premium: $3.65 billion compared to the $3.65 billion average estimate based on five analysts. The reported number represents a change of +9.1% year over year.
  • Revenue- Property and Casualty- Net investment income: $415 million versus $405.26 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2% change.
  • Revenue- Net investment income- Group benefits: $113 million versus $119.94 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -13.1% change.
  • Fee income- Commercial Line: $10 million compared to the $10.22 million average estimate based on five analysts.
  • Earned Premium- Commercial Line: $2.89 billion versus the five-analyst average estimate of $2.90 billion. The reported number represents a year-over-year change of +10.4%.
View all Key Company Metrics for The Hartford here>>>

Shares of The Hartford have returned +7.7% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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