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Hartford Financial (HIG) Up 44% in a Year: More Room for Upside?
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Shares of The Hartford Financial Services Group, Inc. (HIG - Free Report) have gained 44.4% in the past year compared with the industry’s 25% increase. The Finance sector and the S&P 500 composite index rallied 24.7% and 29.3%, respectively, in the same time frame. With a market capitalization of $29.9 billion, the average volume of shares traded in the last three months was 1.8 million.
Continued rate hikes, strength in the Group Benefits business, cost-cutting efforts and an active capital deployment history continue to drive HIG.
The insurer with a current Zacks Rank #3 (Hold) has a decent track record of beating estimates in three of the trailing three quarters and matching the mark once, the average surprise being 11.77%.
Return on equity for the trailing 12 months is currently pegged at 19.8%, which is higher than the industry’s average of 13.3%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Image Source: Zacks Investment Research
Can HIG Retain the Momentum?
The Zacks Consensus Estimate for Hartford Financial’s 2024 earnings is pegged at $9.94 per share, which indicates a rise of 11.9% from the 2023 reported figure. The consensus mark for revenues is $18.1 billion, suggesting 9.4% growth from the 2023 figure.
The Zacks Consensus Estimate for 2025 earnings is pegged at $11.38 per share, which indicates an improvement of 14.4% from the 2024 estimate. The consensus mark for revenues is $19.3 billion, implying an 6.9% uptick from the 2024 estimate.
HIG’s premiums continue to benefit from the solid performances of its Commercial Lines business. The business is aided by continued rate increases, higher premiums, strong net investment income and improved underwriting results.
Growing premiums bode well for Hartford Financial since it accounts for a significant chunk of its top line. Though HIG grapples with catastrophe losses, frequent losses ramp up the policy renewal rate, which enables premiums to keep flowing in the days ahead.
Solid sales, higher enrolment rates and greater exposure growth on existing accounts drive improved fully insured ongoing premiums of HIG’s Group Benefits business, which advanced 7% year over year in 2023. In February 2024, it collaborated with Origin to roll out a financial planning tool in a bid to enhance its Group Benefits offerings.
Hartford Financial pursues acquisitions in a bid to strengthen its capabilities. The insurer resorts to divesting underperforming businesses to intensify the focus on its U.S. operations. Cost-cutting measures, in the form of restructuring initiatives, are a means to provide some respite to margins in the days ahead. The Hartford Next initiative brought cumulative savings of more than the targeted $625 million in 2023.
A solid financial stand enables HIG to engage in the tactical deployment of capital through share buybacks or dividend payments. As of Dec 31, 2023, it had cash and total investments of $56 billion and a manageable debt of $4.4 billion. Hartford Financial bought back common shares for $1.4 billion in 2023. In October 2023, management approved a quarterly dividend hike of around 11%.
HIG boasts an impressive VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Horace Mann’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched the mark once, the average surprise being 15.24%. The Zacks Consensus Estimate for HMN’s 2024 earnings is pegged at $3.15 per share, which has more than doubled from the 2023 reported figure. The consensus mark for revenues suggests 9.2% growth from the 2023 figure.
The consensus estimate for HMN’s 2024 earnings has moved 5% north in the past 60 days. Shares of Horace Mann have gained 4.4% in the past year.
Unum’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 5.19%. The Zacks Consensus Estimate for UNM’s 2024 earnings indicates an improvement of 6.8%, while the consensus mark for revenues suggests 4.2% growth from the corresponding 2023 figures.
The consensus estimate for UNM’s 2024 earnings has moved 4.1% north in the past 60 days. Shares of Unum have gained 33.4% in the past year.
Assurant’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates an improvement of 3.4%, while the consensus mark for revenues suggests 4.1% growth from the corresponding 2023 figures.
The consensus estimate for AIZ’s 2024 earnings has moved 1.4% north in the past 30 days. Shares of Assurant have gained 54.4% in the past year.
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Hartford Financial (HIG) Up 44% in a Year: More Room for Upside?
Shares of The Hartford Financial Services Group, Inc. (HIG - Free Report) have gained 44.4% in the past year compared with the industry’s 25% increase. The Finance sector and the S&P 500 composite index rallied 24.7% and 29.3%, respectively, in the same time frame. With a market capitalization of $29.9 billion, the average volume of shares traded in the last three months was 1.8 million.
Continued rate hikes, strength in the Group Benefits business, cost-cutting efforts and an active capital deployment history continue to drive HIG.
The insurer with a current Zacks Rank #3 (Hold) has a decent track record of beating estimates in three of the trailing three quarters and matching the mark once, the average surprise being 11.77%.
Return on equity for the trailing 12 months is currently pegged at 19.8%, which is higher than the industry’s average of 13.3%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Image Source: Zacks Investment Research
Can HIG Retain the Momentum?
The Zacks Consensus Estimate for Hartford Financial’s 2024 earnings is pegged at $9.94 per share, which indicates a rise of 11.9% from the 2023 reported figure. The consensus mark for revenues is $18.1 billion, suggesting 9.4% growth from the 2023 figure.
The Zacks Consensus Estimate for 2025 earnings is pegged at $11.38 per share, which indicates an improvement of 14.4% from the 2024 estimate. The consensus mark for revenues is $19.3 billion, implying an 6.9% uptick from the 2024 estimate.
HIG’s premiums continue to benefit from the solid performances of its Commercial Lines business. The business is aided by continued rate increases, higher premiums, strong net investment income and improved underwriting results.
Growing premiums bode well for Hartford Financial since it accounts for a significant chunk of its top line. Though HIG grapples with catastrophe losses, frequent losses ramp up the policy renewal rate, which enables premiums to keep flowing in the days ahead.
Solid sales, higher enrolment rates and greater exposure growth on existing accounts drive improved fully insured ongoing premiums of HIG’s Group Benefits business, which advanced 7% year over year in 2023. In February 2024, it collaborated with Origin to roll out a financial planning tool in a bid to enhance its Group Benefits offerings.
Hartford Financial pursues acquisitions in a bid to strengthen its capabilities. The insurer resorts to divesting underperforming businesses to intensify the focus on its U.S. operations. Cost-cutting measures, in the form of restructuring initiatives, are a means to provide some respite to margins in the days ahead. The Hartford Next initiative brought cumulative savings of more than the targeted $625 million in 2023.
A solid financial stand enables HIG to engage in the tactical deployment of capital through share buybacks or dividend payments. As of Dec 31, 2023, it had cash and total investments of $56 billion and a manageable debt of $4.4 billion. Hartford Financial bought back common shares for $1.4 billion in 2023. In October 2023, management approved a quarterly dividend hike of around 11%.
HIG boasts an impressive VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Stocks to Consider
Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation (HMN - Free Report) , Unum Group (UNM - Free Report) and Assurant, Inc. (AIZ - Free Report) . While Horace Mann sports a Zacks Rank #1 (Strong Buy), Unum and Assurant carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched the mark once, the average surprise being 15.24%. The Zacks Consensus Estimate for HMN’s 2024 earnings is pegged at $3.15 per share, which has more than doubled from the 2023 reported figure. The consensus mark for revenues suggests 9.2% growth from the 2023 figure.
The consensus estimate for HMN’s 2024 earnings has moved 5% north in the past 60 days. Shares of Horace Mann have gained 4.4% in the past year.
Unum’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 5.19%. The Zacks Consensus Estimate for UNM’s 2024 earnings indicates an improvement of 6.8%, while the consensus mark for revenues suggests 4.2% growth from the corresponding 2023 figures.
The consensus estimate for UNM’s 2024 earnings has moved 4.1% north in the past 60 days. Shares of Unum have gained 33.4% in the past year.
Assurant’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates an improvement of 3.4%, while the consensus mark for revenues suggests 4.1% growth from the corresponding 2023 figures.
The consensus estimate for AIZ’s 2024 earnings has moved 1.4% north in the past 30 days. Shares of Assurant have gained 54.4% in the past year.