NYSE:HIG

Stock Analysis Report

Hartford Financial Services Group

Executive Summary

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States.

Rewards

Trading at 47.5% below its fair value

Earnings grew by 39.6% over the past year

Pays a high and reliable dividend of 2.22%

Risk Analysis

No risks detected for HIG from our risk checks.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Hartford Financial Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HIG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

HIG

-0.4%

US Insurance

0.06%

US Market


1 Year Return

19.2%

HIG

17.4%

US Insurance

19.4%

US Market

Return vs Industry: HIG exceeded the US Insurance industry which returned 17.4% over the past year.

Return vs Market: HIG matched the US Market which returned 19.4% over the past year.


Shareholder returns

HIGIndustryMarket
7 Day-1.6%-0.4%0.06%
30 Day-4.4%2.8%1.1%
90 Day-5.4%6.9%8.9%
1 Year21.8%19.2%20.2%17.4%21.9%19.4%
3 Year27.3%19.6%36.0%25.6%48.9%39.3%
5 Year56.5%41.7%73.2%52.4%71.9%53.1%

Price Volatility Vs. Market

How volatile is Hartford Financial Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hartford Financial Services Group undervalued compared to its fair value and its price relative to the market?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIG ($58.53) is trading below our estimate of fair value ($111.48)

Significantly Below Fair Value: HIG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIG is good value based on its PE Ratio (10.2x) compared to the Insurance industry average (13.6x).

PE vs Market: HIG is good value based on its PE Ratio (10.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HIG is poor value based on its PEG Ratio (14.2x)


Price to Book Ratio

PB vs Industry: HIG is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is Hartford Financial Services Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIG's forecast earnings growth (0.7% per year) is below the savings rate (1.7%).

Earnings vs Market: HIG's earnings (0.7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HIG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HIG's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HIG's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIG's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Hartford Financial Services Group performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIG has high quality earnings.

Growing Profit Margin: HIG's current net profit margins (10%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: HIG's earnings have declined by -0.9% per year over the past 5 years.

Accelerating Growth: HIG's earnings growth over the past year (39.6%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: HIG earnings growth over the past year (39.6%) exceeded the Insurance industry 22.4%.


Return on Equity

High ROE: HIG's Return on Equity (12.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hartford Financial Services Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HIG has a low level of unsold assets or inventory.

Debt Coverage by Assets: HIG's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

Asset Level: HIG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HIG has a sufficient allowance for bad loans.

Low Risk Liabilities: HIG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HIG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HIG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HIG has an appropriate level of bad loans.


Next Steps

Dividend

What is Hartford Financial Services Group's current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Hartford Financial Services Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: HIG's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HIG's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: HIG's dividends per share have been stable in the past 10 years.

Growing Dividend: HIG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), HIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HIG's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Chris Swift (58yo)

5.6yrs

Tenure

US$13,883,615

Compensation

Christopher Jerome Swift is Chairman and Chief Executive Officer of The Hartford Financial Services Group, Inc. ("The Hartford"). He joined The Hartford in March 2010 and served as Executive Vice Presi ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD13.88M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Swift
Chairman & CEO5.6yrsUS$13.88m0.066% $14.0m
Douglas Elliot
President5.6yrsUS$9.00m0.042% $9.0m
Beth Costello
Executive VP & CFO5.6yrsUS$4.43m0.011% $2.4m
William Bloom
Head of Operations5.5yrsUS$3.25m0.0073% $1.5m
Brion Johnson
Executive VP & Chief Investment Officer7.8yrsUS$4.43m0.0066% $1.4m
Deepa Soni
Chief Information Officer0.4yrsno datano data
Patricia McEvoy
Chief Ethics & Compliance Officer6.6yrsno datano data
David Robinson
Executive VP & General Counsel4.7yrsno data0.0048% $1.0m
Kathleen Bromage
Chief Marketing & Communications Officer4.7yrsno data0.0088% $1.9m
Melinda Thompson
Head of Sales & Distribution3.8yrsno datano data

5.5yrs

Average Tenure

58yo

Average Age

Experienced Management: HIG's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Swift
Chairman & CEO5.6yrsUS$13.88m0.066% $14.0m
Michael Morris
Independent Director16.1yrsUS$277.75k0.017% $3.5m
Albert Woodring
Independent Director2.2yrsUS$328.50k0.0012% $261.4k
Carlos Dominguez
Independent Director2yrsUS$325.95k0.0011% $227.4k
Trevor Fetter
Lead Director3.1yrsUS$295.79k0.017% $3.6m
Julie Richardson
Independent Director6.1yrsUS$285.79k0.0052% $1.1m
Kathryn Mikells
Independent Director9.3yrsUS$260.90k0.013% $2.8m
Virginia Ruesterholz
Independent Director6.8yrsUS$285.79k0.0043% $922.4k
Robert Allardice
Independent Director11.4yrsUS$287.75k0.0035% $750.2k
Teresa Roseborough
Independent Director4.8yrsUS$261.07k0.0044% $937.2k

5.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HIG's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Hartford Financial Services Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Hartford Financial Services Group, Inc.
  • Ticker: HIG
  • Exchange: NYSE
  • Founded: 1810
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$21.252b
  • Shares outstanding: 359.60m
  • Website: https://www.thehartford.com

Number of Employees


Location

  • The Hartford Financial Services Group, Inc.
  • One Hartford Plaza
  • Hartford
  • Connecticut
  • 6155
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIGNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1995
HFFBST (Boerse-Stuttgart)YesCommon StockDEEURDec 1995
HFFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1995
0J3HLSE (London Stock Exchange)YesCommon StockGBUSDDec 1995
HIG.PRGNYSE (New York Stock Exchange)6.0 DPSHS PFD GUSUSDOct 2018
H1IG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. Its Commercial Lines segment offers workers’ compensation, property, automobile, marine, livestock, liability, and umbrella coverages; and customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages. This segment provides its products and services through regional offices, branches, sales and policyholder service centers, independent agents, brokers, and wholesalers. The company's Personal Lines segment offers automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents. Its Property & Casualty Other Operations segment provides coverage for asbestos and environmental exposures. The company's Group Benefits segment offers group life, and accident and disability coverages, as well as other group coverages to members of employer and affinity groups, and associations through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. This segment distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment provides investment products for retail and retirement accounts; exchange-traded products through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers; and investment-management and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:58
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.