Hartford Insurance Up 27% in a Year: Does the Rally Still Have Legs?

Core Insights - The Hartford Insurance Group, Inc. (HIG) has achieved a 27% return over the past year, outperforming the industry gain of 9.7% and the S&P 500's rise of 19.5% [1] - The stock's performance is attributed to solid operational execution, consistent growth in earned premiums, and favorable investment income conditions [1] Financial Performance - HIG's market capitalization is $38.6 billion, and it currently holds a Zacks Rank 3 (Hold) [3] - The Zacks Consensus Estimate for 2025 EPS is $12.44, indicating a 20.8% year-over-year increase, with a projected 4.5% growth in 2026 to $13 [4] - Revenue estimates for 2025 are set at $19.9 billion, reflecting a 9.1% growth from the previous year, with a further 7.6% increase expected in 2026 [5] Strategic Focus - The company has concentrated on core businesses, disciplined underwriting, and enhancing profitability through the divestiture of legacy portfolios and non-core operations [6] - Investments in digital tools and data science are improving platform capabilities and aiding customer acquisition and retention [6] Profitability Metrics - HIG's trailing 12-month return on equity is 21.07%, significantly higher than the industry average of 8.02%, indicating efficient capital deployment [8] - Operational restructuring, particularly through the Hartford Next initiative, has led to improvements in core earnings margins and underwriting discipline [9] Capital Returns - HIG has consistently returned capital to shareholders through buybacks and dividends, repurchasing $1.5 billion of shares in 2024 and $1.2 billion in the first nine months of 2025 [10] - As of September 30, 2025, $1.95 billion remains under its current repurchase authorization, and the company returned $446 million in dividends, resulting in a dividend yield of 1.7%, well above the industry average of 0.3% [10]