We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hartford Financial (HIG) Q2 Earnings Top Estimates, Rise Y/Y
Read MoreHide Full Article
The Hartford Financial Services Group, Inc. (HIG - Free Report) reported second-quarter 2019 adjusted operating earnings of $1.33, beating the Zacks Consensus Estimate by 20%. Moreover, the bottom line increased 18% year over year on the back of improved Personal Lines, Group Benefits and Corporate results. However, the same was offset by lower Commercial Lines core earnings.
Total operating revenues came in at $5 billion, up 5.8% year over year. This upside was primarily driven by a rise in earned premiums.
Total benefits and expenses of $5 billion rose 9% year over year, induced by benefits, losses and loss adjustment expenses, amortization of DAC, etc.
The Hartford Financial Services Group, Inc. Price, Consensus and EPS Surprise
Property & Casualty (P& C) segment’s total revenues of $3.2 billion improved 8.4% year over year owing to its Commercial Lines business. The segment recorded an underwriting gain of $3 million, down from the year-ago quarter’s gain of $112 million.
Group Benefits
Group Benefits’ total revenues of $1.5 billion inched up 2.1% year over year. Core earnings were $115 million in the quarter under review, up 11% year over year.
The total loss ratio of 74.6% improved 90 basis points (bps) over the year-earlier quarter’s tally, backed by better group disability loss ratio. However, the same was partially offset by an increase in the group life loss ratio.
Hartford Funds
Mutual Funds operating revenues were up 3% year over year to $253 million.
Hartford Financial’s core earnings of $38 million were in line with the year-ago quarter’s period.
Average AUM increased 4% year over year to $121 billion on the back of a strong equity market performance in the first half of the year. However, the same was offset to some extent due to reduction in Talcott Resolution life and annuity separate account AUM.
Corporate segment operating revenues skyrocketed 150% year over year to $45 million.
The Corporate segment suffered core losses of $35 million, narrower than $76 million incurred in the prior-year quarter.
Business Update
In May 2019, the company closed the pending buyout of Navigators.
Share Repurchase and Dividend Update
In the quarter under review, the company repurchased shares worth $27 million and paid out common dividend worth $107 million.
Outlook
The company also provided its second-half 2019 guidance for Commercial Lines’ combined ratios in the range of 95-97%.
Financial Update
Book value per share was $41, up17% from 2018-end level.
Of the insurance industry players having already reported second-quarter results, the bottom-line figures of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate. However, The Travelers Companies, Inc.’s (TRV - Free Report) earnings missed the mark.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Hartford Financial (HIG) Q2 Earnings Top Estimates, Rise Y/Y
The Hartford Financial Services Group, Inc. (HIG - Free Report) reported second-quarter 2019 adjusted operating earnings of $1.33, beating the Zacks Consensus Estimate by 20%. Moreover, the bottom line increased 18% year over year on the back of improved Personal Lines, Group Benefits and Corporate results. However, the same was offset by lower Commercial Lines core earnings.
Total operating revenues came in at $5 billion, up 5.8% year over year. This upside was primarily driven by a rise in earned premiums.
Total benefits and expenses of $5 billion rose 9% year over year, induced by benefits, losses and loss adjustment expenses, amortization of DAC, etc.
The Hartford Financial Services Group, Inc. Price, Consensus and EPS Surprise
The Hartford Financial Services Group, Inc. price-consensus-eps-surprise-chart | The Hartford Financial Services Group, Inc. Quote
Quarterly Segment Results
Property & Casualty (P& C) segment’s total revenues of $3.2 billion improved 8.4% year over year owing to its Commercial Lines business. The segment recorded an underwriting gain of $3 million, down from the year-ago quarter’s gain of $112 million.
Group Benefits
Group Benefits’ total revenues of $1.5 billion inched up 2.1% year over year.
Core earnings were $115 million in the quarter under review, up 11% year over year.
The total loss ratio of 74.6% improved 90 basis points (bps) over the year-earlier quarter’s tally, backed by better group disability loss ratio. However, the same was partially offset by an increase in the group life loss ratio.
Hartford Funds
Mutual Funds operating revenues were up 3% year over year to $253 million.
Hartford Financial’s core earnings of $38 million were in line with the year-ago quarter’s period.
Average AUM increased 4% year over year to $121 billion on the back of a strong equity market performance in the first half of the year. However, the same was offset to some extent due to reduction in Talcott Resolution life and annuity separate account AUM.
Corporate segment operating revenues skyrocketed 150% year over year to $45 million.
The Corporate segment suffered core losses of $35 million, narrower than $76 million incurred in the prior-year quarter.
Business Update
In May 2019, the company closed the pending buyout of Navigators.
Share Repurchase and Dividend Update
In the quarter under review, the company repurchased shares worth $27 million and paid out common dividend worth $107 million.
Outlook
The company also provided its second-half 2019 guidance for Commercial Lines’ combined ratios in the range of 95-97%.
Financial Update
Book value per share was $41, up17% from 2018-end level.
Zacks Rank and Performance of Other Insurers
Hartford Financial has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the insurance industry players having already reported second-quarter results, the bottom-line figures of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate. However, The Travelers Companies, Inc.’s (TRV - Free Report) earnings missed the mark.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>