HIG Earnings Prediction
The chart below shows how HIG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HIG sees a -2.80% change in stock price 10 days leading up to the earnings, and a +2.37% change 10 days following the report. On the earnings day itself, the stock moves by -0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
HIG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.88B
7.48%
2.29%
Gross Margin
--
--
--
Operating Margin
16.43%
4.85%
16.03%
Net Margin
12.40%
2.90%
8.68%
EPS
2.88
14.74%
12.50%
No Data Available
HIG Earnings Analysis
Hartford Financial Services Group Inc Corporation (HIG.N) Earnings Conference Call
Positive
Commercial Lines Growth Metrics: Top line growth in Commercial Lines was 6% for Q4 2024, with an underlying combined ratio of 87.1%, while for the full year, growth was 9% with a consistent underlying combined ratio of 87.9%.
Personal Lines Underwriting Improvement: Personal Lines achieved a significant improvement in the underlying combined ratio by 9.3 points in Q4, including over 10 points in auto, resulting in an underwriting gain for the year, with the auto underlying loss ratio being 1 point better than expectations.
Core Earnings Margin Performance: Group Benefits delivered a strong core earnings margin of 7.8% for Q4 and 8.2% for the full year, driven by robust life and disability results.
Investment Portfolio Performance: The investment portfolio generated solid performance with net investment income of $714 million for Q4, and a total annualized portfolio yield of 4.6% before tax, indicating strong returns across asset classes.
Share Repurchase Commitment: Share repurchases totaled $400 million during the quarter, with $3.15 billion remaining on the share repurchase authorization, reflecting a commitment to returning capital to shareholders.
Negative
Liability Reserves Strengthened: General liability reserves were strengthened by $130 million before tax, reflecting higher than expected settlement costs and increased attorney representation, indicating potential future liabilities.
Unfavorable Accident Year Development: Prior accident year development within core earnings was unfavorable by $97 million before tax, primarily driven by $141 million of asbestos and environmental development, highlighting ongoing challenges in these areas.
Personal Lines Expense Ratio Increase: The Personal Lines expense ratio increased by 1.9 points to 26.5%, driven by higher direct marketing costs, staffing costs, and commissions, which could pressure profitability despite premium growth.
Disability Loss Ratio Increase: Group Benefits experienced a higher disability loss ratio of 66.9%, up from 63.6% in the prior year, primarily due to increased claims in paid family and medical leave products, indicating rising costs in this segment.
Core Earnings Margin Outlook: The overall core earnings margin for Group Benefits is expected to remain below long-term targets of 6% to 7%, reflecting ongoing pressures from disability incidence trends returning to historic levels.
HIG FAQs
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HIG Earning Call Sentiment
Earnings call transcript: Hartford Financial beats EPS forecast in Q4 2024
HIG.N
-0.71%Positive
The earnings report highlights strong financial performance, with solid core earnings, increased dividends, and strategic share repurchases. Despite challenges like competitive pressures and regulatory issues, the company demonstrates resilience through growth in commercial lines and specialty performance. The Q&A section reveals confidence in small commercial growth and market share capture. While some uncertainties exist, such as the impact of L.A. Wildfires, the overall sentiment remains positive with potential for a stock price increase of 2-8% over the next two weeks.
