Is Hartford Insurance Stock Outperforming the Nasdaq?

The Hartford Insurance Group, Inc. (HIG), headquartered in Hartford, Connecticut, provides insurance and financial services to individual and business customers. Valued at $33.9 billion by market cap, the company offers products include property and casualty insurance, group benefits, and mutual funds. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and HIG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the insurance - property & casualty industry. HIG is a trusted leader in the financial services industry with a strong market presence dating back to 1810. It is known for its underwriting excellence and customer service. HIG’s strategic priorities include enhancing underwriting capabilities and investing in digital transformation to stay competitive and attract new clients.

Despite its notable strength, HIG slipped 4.2% from its 52-week high of $124.90, achieved on Nov. 27, 2024. Over the past three months, HIG stock gained 11.8%, outperforming the Nasdaq Composite’s ($NASX) 8.4% dip during the same time frame.

In the longer term, shares of HIG rose 9.4% on a YTD basis and climbed 19.2% over the past 52 weeks, outperforming NASX’s YTD losses of 8.1% and 9.8% returns over the last year.

To confirm the bullish trend, HIG has been trading above its 50-day moving average since mid-February. The stock is trading above its 200-day moving average over the past year, experiencing some fluctuations.

HIG’s strong performance can be attributed to solid growth in both commercial and personal lines premiums, as well as a higher yield in its investment portfolio. Additionally, the company maintained strong margins in group benefits, further contributing to its success.

On Jan. 30, HIG shares closed up marginally after reporting its Q4 results. Its total revenues stood at $6.9 billion, up 7.5% year over year. The company’s core EPS declined 3.9% year over year to $2.94. 

In the competitive arena of insurance - property & casualty, The Progressive Corporation (PGR) has taken the lead over HIG, showing resilience with a 14.1% gain on a YTD basis and 33% uptick over the past 52 weeks. 

Wall Street analysts are moderately bullish on HIG’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $128.21 suggests a potential upside of 7.1% from current price levels.