The Hartford Insurance Group, Inc. HIG is aided by premium growth, strong Business Insurance and Employee Benefits units’ performance, product launches and a robust financial position.
HIG’s Zacks Rank & Price Performance
Hartford Insurance currently carries a Zacks Rank #3 (Hold).
The stock has gained 17.4% in the past year
Zacks Investment Research
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Hartford Insurance’s Robust Growth Prospects
The Zacks Consensus Estimate for 2025 earnings is pegged at $10.98 per share, indicating 6.6% growth from the 2024 figure. The estimate for revenues is $20.1 billion, which indicates a rise of 10% from the 2024 figure.
The Zacks Consensus Estimate for 2026 earnings is pegged at $12.65 per share, indicating 15.2% growth from the 2025 estimate. The estimate for revenues is $21.9 billion, which indicates a rise of 8.9% from the 2025 estimate.
HIG’s Decent Earnings Surprise History
HIG’s bottom line surpassed earnings estimates in three of the trailing four quarters and missed the mark once, the average surprise being 4.66%.
Hartford Insurance’s Solid Return on Equity
The return on equity for Hartford Insurance is currently 19.6%, which is higher than the industry’s average of 8.3%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
HIG’s Business Tailwinds
Hartford Insurance reaps substantial advantages from the strong performance of its Business Insurance and Employee Benefits divisions. The Business Insurance segment benefits from ongoing rate hikes, robust new business generation and excellent customer retention, all of which fuel premium expansion. Sound performance of the unit seems to be of immense importance to the company since it accounted for around 54% of its consolidated revenues in 2024.
The Employee Benefits division continues to excel, driven by rising fully insured ongoing premiums, bolstered by strong sales activity and impressive persistency levels. Notably, the company’s launch of innovative offerings demonstrates a clear commitment to strengthening its employee benefits portfolio. Core earnings in the segment improved 2% year over year in 2024.
Premium growth across these two segments plays a pivotal role in boosting Hartford Insurance’s top line, as premiums represent an important revenue stream for insurers. Although catastrophe-related losses remain a risk, they simultaneously contribute to higher policy renewal rates, ensuring a reliable flow of premium income. The company effectively mitigates such risks through reinsurance arrangements that cap its financial exposure.
Hartford Insurance consistently enhances its market capabilities and expands its nationwide reach via new product introductions and targeted acquisitions. Furthermore, divestitures that refocus the business on domestic operations and release capital resources serve to bolster its financial agility for future growth opportunities. Ongoing cost optimization initiatives further demonstrate the company’s dedication to margin improvement.
Backed by a solid financial position, Hartford Insurance deploys capital with strategic intent, prioritizing share buybacks and dividend distributions. The company generated net cash from operations of $5.9 billion in 2024, a remarkable 40% increase from the 2023 level. In addition, the 11% dividend hike sanctioned in October 2024 highlights the company’s intensified focus on enhancing shareholder value.
Key Risks
HIG’s Personal Lines segment faced sustained losses from elevated auto liability claims. Rising staffing, marketing and commissions continue to exert pressure on the unit’s expense ratio. A debt-laden balance sheet induces an increase in interest expenses. Total debt to total equity was 26.6% at the fourth-quarter end, higher than the industry’s average of 19.6%.
Stocks to Consider
Some better-ranked stocks in the insurance space are EverQuote, Inc. EVER, Brown & Brown, Inc. BRO and The Progressive Corporation PGR. While EverQuote currently sports a Zacks Rank #1 (Strong Buy), Brown & Brown and Progressive carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EverQuote’s earnings surpassed estimates in each of the last four quarters, the average surprise being 160.73%. The Zacks Consensus Estimate for EVER’s 2025 earnings indicates a rise of 36.4%, while the same for revenues implies an improvement of 25.2% from the respective 2024 figures. The consensus mark for EVER’s 2025 earnings has moved 1.7% north in the past 30 days.
The bottom line of Brown & Brown beat estimates in each of the trailing four quarters, the average surprise being 8.18%. The Zacks Consensus Estimate for BRO’s 2025 earnings indicates a rise of 9.1%, while the same for revenues implies an improvement of 8.4% from the respective 2024 figures. The consensus mark for BRO’s 2025 earnings has moved 0.2% north in the past 30 days.
Progressive’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 18.49%. The Zacks Consensus Estimate for PGR’s 2025 earnings indicates a rise of 9.8%, while the same for revenues implies an improvement of 16.1% from the respective year-ago figures. The consensus mark for PGR’s 2025 earnings has moved 1.9% north in the past 30 days.
Shares of EverQuote, Brown & Brown and Progressive have gained 0.1%, 42.5% and 35.5%, respectively, in the past year.
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