A Leading Provider of Property and Casualty Insurance, Employee Benefits and Mutual Funds Safe Harbor Statement Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford's future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should con ...

Core Insights - The article identifies three overlooked U.S. value stocks—Allstate, Synchrony Financial, and HP Inc.—that are trading at low price-to-earnings ratios and have strong fundamentals, suggesting potential for long-term returns in 2026 [1]. Group 1: Allstate (ALL) - Allstate is a leading U.S. insurance company with a trailing price-earnings ratio around 5 times, making it one of the cheapest large-cap stocks available [1]. - The company achieved a revenue growth of 12% last year and is experiencing expanding operating margins, indicating strong financial health [1]. - Despite favorable market conditions, including a steepening yield curve, Allstate's stock has remained flat, presenting a potential buying opportunity for long-term investors [1]. Group 2: Synchrony Financial (SYF) - Synchrony Financial is trading at less than 7 times earnings, with a net income of approximately $4.5 billion and operating margins around 28% [1]. - The company experienced earnings growth of about 3% last year, showcasing its resilience in the consumer finance sector [1]. - The stock is viewed as a reasonably-priced investment, despite concerns in the consumer lending market, due to its strong balance sheet and staying power [1]. Group 3: HP Inc. (HPQ) - HP Inc. is trading at about 7 times earnings and offers a dividend yield of 6.5%, which is attractive in the current market [1]. - The company reported a 4% revenue growth in the last quarter and improved operating margins by 130 basis points, alongside generating $1.1 billion in free cash flow [1]. - Despite a decline of over 30% in stock price this year, HP is considered a valuable addition to a portfolio due to its strong brand and fundamentals [2].

Core Viewpoint - Investors in the Insurance - Property and Casualty sector should consider RenaissanceRe (RNR) and Kinsale Capital Group, Inc. (KNSL) for potential value opportunities, with RNR currently presenting a better value option based on various financial metrics [1]. Group 1: Zacks Rank and Earnings Outlook - RNR has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while KNSL has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system emphasizes companies with improving earnings outlooks, suggesting that RNR is likely to see a greater improvement in its earnings estimates compared to KNSL [3]. Group 2: Valuation Metrics - RNR has a forward P/E ratio of 7.88, significantly lower than KNSL's forward P/E of 17.73, indicating that RNR may be undervalued [5]. - RNR's PEG ratio is 0.68, which is more favorable compared to KNSL's PEG ratio of 1.50, suggesting better expected earnings growth relative to its price [5]. - RNR's P/B ratio stands at 1.26, while KNSL's P/B ratio is 4.28, further supporting RNR's valuation advantage [6]. Group 3: Value Grades - RNR has been assigned a Value grade of A, reflecting its strong earnings outlook and favorable valuation metrics, whereas KNSL has a Value grade of C [6]. - The combination of RNR's solid earnings outlook and superior valuation figures positions it as the better value option in comparison to KNSL [6].

Core Insights - Heritage Insurance Holdings, Inc. (HRTG) has underperformed in the market, with shares down 3.6% year to date compared to the industry decline of 2.2% and the S&P 500's decline of 0.03% [1][7] - The company is positioned to benefit from improved underwriting practices and rate adequacy initiatives implemented in recent years [1] Company Performance - HRTG has resumed writing personal lines business after legislative reforms in Florida and improved reinsurance stability, although expansion remains selective [3][7] - The company is focusing on profitability through disciplined underwriting and cautious growth in saturated markets [3][4] - HRTG's excess and surplus (E&S) segment is a key growth driver, supported by expansion into additional states [8] Financial Metrics - The Zacks Consensus Estimate for HRTG's 2026 revenues suggests a 7.3% year-over-year increase, while earnings are expected to decline by 22.7% [12] - Return on equity for HRTG in the trailing 12 months was 41.4%, significantly higher than the industry average of 8% [13] - The stock is currently trading at a price-to-book multiple of 1.99, above the industry average of 1.45, indicating it may be overvalued [14] Strategic Initiatives - The company is expanding its geographic footprint and strengthening risk diversification to manage risk effectively [5][8] - HRTG is investing in technology to enhance underwriting accuracy and claims management, including tools like Guidewire Cloud and predictive modeling [9] - The company has resumed share repurchases to return capital to shareholders [9] Market Position - HRTG's growth outlook is supported by a strengthening commercial residential segment and improved E&S performance [16] - The average target price for HRTG implies a potential upside of about 22% from its recent close [16]

Financial Performance - Allianz reported a net profit attributable to shareholders of €10.8 billion for 2025, an 8.5% increase from the previous year [1] - The company's operating profit for the year was €17.4 billion, reflecting an 8.4% rise compared to the prior year [1] - Total business volume increased to €186.9 billion from €179.8 billion in 2024, indicating robust internal growth of 8.1% after excluding currency effects and changes from acquisitions or divestments [2] Segment Performance - In the property and casualty (P&C) segment, total business volume grew to €86.7 billion, up from €82.9 billion a year earlier, with internal growth at 8.2% [2] - The operating profit in the P&C division was €9 billion, exceeding the full-year outlook midpoint and up 13.9%, primarily due to an improved insurance service result [2] - In the life/health insurance segment, the present value of new business premiums reached €84.7 billion, a 3.5% increase compared to last year, or 7.5% higher when adjusted for currency and scope changes [3] Quarterly Insights - For Q4 2025, Allianz reported a business volume of €45.7 billion compared to €45.9 billion during the same period last year, with internal growth at 6.5% [6] - Quarterly operating profit reached €4.3 billion, representing a year-on-year increase of 3%, driven by gains in property and casualty activities [6] Future Outlook - Allianz targets an operating profit of €17.4 billion for the upcoming year, with a tolerance of plus or minus €1 billion [6] - The company remains exposed to risks of declining prices in both public and private equity investments, but an increase in its solvency ratio to 218% enhances the group's resilience to stress scenarios [5] Management Commentary - Allianz CEO Oliver Bäte emphasized that the record results for 2025 demonstrate the company's ability to deliver reliably in rapidly changing environments, supported by strong brand strength and customer loyalty [7]

Core Viewpoint - Skyward Specialty Insurance reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][3]. Earnings Performance - The company reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate of $0.96 per share, and up from $0.80 per share a year ago, representing a +21.56% earnings surprise [1][2]. - Over the last four quarters, Skyward has consistently exceeded consensus EPS estimates [2]. Revenue Performance - Skyward's revenues for the quarter reached $385.59 million, exceeding the Zacks Consensus Estimate by 3.10%, and up from $304.4 million in the same quarter last year [3]. - The company has also topped consensus revenue estimates three times in the last four quarters [3]. Stock Performance and Outlook - Skyward shares have declined approximately 8.3% year-to-date, contrasting with the S&P 500's gain of 0.9% [4]. - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings revisions [4][5]. Earnings Outlook - Current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $410.93 million, and for the current fiscal year, it is $4.69 on revenues of $1.81 billion [8]. - The estimate revisions trend prior to the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7]. Industry Context - The Insurance - Property and Casualty industry is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6].

PERFORMANCE UPDATE 2025 Full Year Highlights We generated $1.6 billion ($0.67/share) of Distributable Earnings ("DE") during the quarter and $6.0 billion ($2.54/share) for the year. Record Deployable Capital $6B 11% $188B Annual Growth in DE Before Realizations Distributable Earnings ("DE") DE before realizations were $1.5 billion ($0.63/share) for the quarter and $5.4 billion ($2.27/share) for the year, representing growth of 11% per share over the prior year. Asset Management Wealth Solutions Operating Bu ...

Core Insights - Cincinnati Financial Corporation (CINF) reported a fourth-quarter 2025 operating income of $3.37 per share, exceeding the Zacks Consensus Estimate by 17.8% and reflecting a 7% year-over-year increase [2][10] - Total operating revenues for the quarter reached $2.9 billion, a 9.8% year-over-year increase, although it slightly missed the Zacks Consensus Estimate by 0.02% [2][10] Operational Performance - Earned premiums increased by 10% year over year to $2.6 billion, driven by premium growth initiatives, price increases, and higher insured exposures, but marginally missed the Zacks Consensus Estimate by 0.3% [6] - Net investment income rose 9% year over year to $305 million, primarily due to a 10% increase in interest income from fixed-maturity securities, slightly beating the Zacks Consensus Estimate by 0.5% [7] - Total benefits and expenses increased by 9.3% year over year to $2.3 billion, mainly due to higher insurance losses and increased underwriting, acquisition, and insurance expenses [7] Underwriting Results - In the property and casualty insurance segment, CINF reported underwriting income of $378 million, a 7% increase year over year, significantly surpassing the Zacks Consensus Estimate of $284.5 million [8] - The combined ratio, a key measure of underwriting profitability, increased by 50 basis points year over year to 85.2, outperforming the consensus estimate of 89.6 [8] Segment Performance - **Commercial Lines Insurance**: Total revenues of $1.2 billion increased by 7% year over year, beating the Zacks Consensus Estimate by 0.8%. Underwriting income was $144 million, down 20% year over year, with a combined ratio of 88.4 [11] - **Personal Lines Insurance**: Total revenues of $860 million increased by 18% year over year, driven by an 18% rise in earned premiums. Underwriting profit increased by 11% year over year to $161 million, significantly surpassing the Zacks Consensus Estimate [12] - **Excess and Surplus Lines Insurance**: Total revenues of $189 million grew by 12% year over year, with underwriting profit surging 150% year over year to $30 million, well above the Zacks Consensus Estimates [13] - **Life Insurance**: Total revenues were $137 million, up 4% year over year, driven by higher earned premiums and investment income [14] Full-Year Performance - For 2025, operating income totaled $7.95 per share, reflecting a 5% year-over-year increase and beating the Zacks Consensus Estimate by 8% [15] - Operating revenues for the year were $11.19 billion, in line with the Zacks Consensus Estimate, representing a 13% year-over-year increase [15] Financial Position - As of December 31, 2025, total assets were reported at $41 billion, up from $36.5 billion at the end of 2024 [16] - The company's debt-to-capital ratio improved by 60 basis points year over year to 4.9%, indicating a stronger capital position [16] - Book value per share increased by 15% year over year to $102.35, supported by a 14% rise in net pretax investment income [17]

Core Viewpoint - Cincinnati Financial (CINF) reported quarterly earnings of $3.37 per share, exceeding the Zacks Consensus Estimate of $2.86 per share, and showing an increase from $3.14 per share a year ago, representing an earnings surprise of +18.04% [1] Financial Performance - The company posted revenues of $2.91 billion for the quarter ended December 2025, slightly missing the Zacks Consensus Estimate by 0.02%, compared to $2.65 billion in the same quarter last year [2] - Over the last four quarters, Cincinnati Financial has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - Cincinnati Financial shares have increased approximately 5.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.95 on $2.96 billion in revenues for the coming quarter and $8.38 on $12.18 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Cincinnati Financial was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which Cincinnati Financial belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8]

Core Insights - Cincinnati Financial Corporation is a significant entity in the property and casualty insurance sector, with an upcoming quarterly earnings report expected on February 9, 2026, predicting an EPS of $2.86 and revenue of approximately $2.91 billion [1][6] Dividend Growth - The company has raised its quarterly dividend by 8% to $0.94 per share, achieving its 66th consecutive year of dividend growth, reinforcing its status as a Dividend King [2][6] Financial Performance - Despite a projected 9.6% increase in fourth-quarter revenues to $2.91 billion, the EPS is anticipated to decline by 11.5% year over year, although estimates have been revised upward by 3.3% in the past month [3] - The company is expected to benefit from higher premiums, increased investment income, and prudent underwriting, which may help mitigate rising benefits and expenses [3] Financial Metrics - Cincinnati Financial's financial metrics reflect a stable position, with a P/E ratio of 12.63, a price-to-sales ratio of 2.22, an enterprise value to sales ratio of 2.17, and an enterprise value to operating cash flow ratio of 9.35 [4][6] - The company has an earnings yield of 7.92% and a low debt-to-equity ratio of 0.057, indicating a conservative approach to leveraging [4] Earnings Report Significance - The upcoming earnings report is critical for investors; surpassing earnings estimates could lead to a stock price increase, while missing estimates may result in a decline [5]