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Key Takeaways The Hartford's Business Insurance premiums rose 5%, with an 89.3% underlying combined ratio in Q2 2026.Net investment income jumped 22% to $800 million as invested assets and alternative income increased.HIG plans $475 million in quarterly buybacks through 2026 and approved a new $4.2 billion authorization. Shares of The Hartford Insurance Group, Inc. (HIG - Free Report) have gained a modest 4.2% over the past year, outperforming the industry’s 2.4% growth, though trailing the S&P 500’s 20% advancement. The Hartford continues to execute well, supported by strong Business Insurance growth, disciplined underwriting, higher investment income and shareholder-friendly capital allocation.

Headquartered in Hartford, CT, the company is a leading provider of property and casualty (P&C) insurance and employee benefits in the United States. Its offerings include commercial and personal P&C insurance, group life and disability insurance and related employee-benefit solutions, with a market capitalization of approximately $37.88 billion.

Valuation of HIGIts forward P/E ratio of 10.28 is lower than the industry average of 26.85, indicating a relatively attractive valuation. Supported by solid earnings prospects and consistent operating performance, HIG currently carries a Zacks Rank #3 (Hold), along with a Value Score of B.

Estimates for HIG StockThe Zacks Consensus Estimate for The Hartford’s 2026 and 2027 earnings is pegged at $12.80 and $13.73 per share, respectively.  The top-line estimate for 2026 is pegged at $20.94 billion, representing a 4.8% increase from the prior-year level. Over the past 30 days, earnings estimates have seen four upward revisions against one downward revision. HIG beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 13.1%.

HIG’s Business TailwindsHIG is sharpening its business focus by monetizing non-core operations and concentrating resources on its core Property & Casualty and Employee Benefits businesses. This strategy is reflected in the solid performance of Business Insurance. Written premiums grew 5% year over year in the second quarter of 2026. The segment also posted an underlying combined ratio of 89.3%, underscoring HIG's disciplined underwriting, pricing and risk-selection approach.

The Hartford is increasing investments in technology, data and artificial intelligence. These initiatives could strengthen underwriting and risk selection while improving customer experience and operational efficiency. The company's focus on technology should help enhance its competitive position and support long-term profitability. The company generated a trailing 12-month core earnings ROE of 18.7% as of June 30, 2026.

HIG's diversified investment portfolio provides an important earnings tailwind alongside its underwriting operations. Approximately 95% of the fixed-maturities portfolio was investment grade as of June 30, 2026, supporting portfolio quality and recurring income. Meanwhile, increased income from limited partnerships and other alternative investments, along with a higher level of invested assets, helped drive net investment income up 22% year over year to $800 million in the second quarter. The company expects net investment income to increase in 2026, supported by growth in invested assets.

HIG continues to return excess capital to shareholders. It repurchased $450 million of shares in the second quarter of 2026. About $650 million remained under the existing authorization as of June 30. The company also approved a new $4.2 billion share-repurchase authorization through 2028. Management expects quarterly buybacksto rise to $475 million through the rest of 2026. HIG also paid $165 million in common dividends during the quarter. This combination of strong capital generation and shareholder returns provides an additional catalyst for per-share value creation.

Risks to MonitorDespite its strengths, HIG faces several challenges.

HIG remains exposed to elevated catastrophe risk from severe storms, wildfires and other weather-related events. Catastrophe losses totaled $768 million in 2024 and $748 million in 2025. They reached $222 million in the second quarter of 2026. These losses can create earnings volatility and pressure underwriting results.

Leverage also remains a factor to monitor. As of June 30, 2026, long-term debt stood at $4.4 billion compared to cash of $125 million. The company's long-term debt-to-equity ratio was 22.7%. The ratio was above the stated industry average of 1.3%, potentially limiting financial flexibility during periods of market stress.

Key PicksSome better-ranked stocks in the broader Finance space are The Travelers Companies, Inc. (TRV - Free Report) , The Hanover Insurance Group, Inc. (THG - Free Report) and The Allstate Corporation (ALL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Travelers Companies’s 2026 earnings is pegged at $33.82 per share, indicating 22.6% year-over-year growth. TRV has witnessed one upward revision in the past 30 days, with no movement in the opposite direction. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 41.7%. The consensus estimate for 2026 revenues is pinned at $48.82 billion.

The Zacks Consensus Estimate for Hanover Insurance’s 2026 earnings is pegged at $20.17 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for 2026 revenues is pinned at $6.95 billion, implying 4.6% year-over-year growth.

The Zacks Consensus Estimate for Allstate’s 2026 earnings is pegged at $34.45 per share,which has witnessed 12 upward revisions in the past 30 days, with no movement in the opposite direction. ALL beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.3%. The consensus estimate for 2026 revenues is pinned at $70.81 billion, implying 4.4% year-over-year growth.

3 Insurance Stocks Hitting 52-Week Highs With More Room to RunThe Hartford Insurance Group NYSE: HIG reported second-quarter 2026 core earnings of $945 million, or $3.42 per diluted share, as strength in its commercial insurance, employee benefits and investment operations supported results. The insurer’s trailing 12-month core earnings return on equity was 18.7%, while book value per share excluding accumulated other comprehensive income rose 7% from year-end to $78.91.

Chairman and Chief Executive Officer Chris Swift said the company’s results reflected the strength of its property-and-casualty and Employee Benefits franchises, distribution relationships and customer-service capabilities. The Hartford also announced an agreement to sell Hartford Funds to Wellington Management, characterizing the business as a non-core long-term investment.

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The board authorized a new $4.2 billion share-repurchase program through December 2028, in addition to approximately $650 million remaining under the prior authorization as of June 30. Chief Financial Officer Beth Costello said the company repurchased 3.4 million shares for $450 million during the quarter and expects to raise quarterly repurchases to $475 million for the rest of 2026.

Business Insurance Posts Premium Growth Business Insurance generated core earnings of $695 million, with written premiums increasing 5% and an underlying combined ratio of 89.3. Small Business written premiums rose 7%, supported by double-digit growth in package products and excess-and-surplus binding business. Its underlying combined ratio improved 2.5 points from a year earlier to 86.5, primarily due to lower non-catastrophe property losses and improved operating leverage.

Middle and Large business premiums increased 4%, while its underlying combined ratio was 95.3. Costello said results included elevated non-catastrophe property losses, including several large fire losses, as well as a business mix shift toward National Accounts and commercial auto. She said the company expects the full-year Middle and Large underlying combined ratio to be roughly a point better than its 93.3 year-to-date level if non-catastrophe property losses normalize in the second half.

Global Specialty premiums grew 4%, and the segment reported an 85.8 underlying combined ratio. The ratio increased from the previous year because of a higher international loss ratio and technology-related expenses. Swift said the business continued to see momentum in wholesale excess casualty and auto, bond, and financial lines.

Business Insurance renewal written pricing excluding workers’ compensation was 5.8%, relatively consistent with prior trends. Commercial auto and general liability rates remained above loss trends, while umbrella and excess lines achieved some of the strongest increases across the portfolio. Property pricing moderated, particularly in large property, although Swift said aggregate pricing in Small Business package and middle-market general-industry property remained in the mid-single digits.

Morris Tooker, president of Commercial Lines, said increased competition affected Middle and Large retention, rather than any targeted pruning following reserve actions. He added that The Hartford has reduced its shared-and-layered large-property book to less than $25 million as pricing in that market no longer met the company’s benchmarks.

Reserve Actions Reflect Casualty Trends The company reported favorable prior-year reserve development in workers’ compensation, catastrophes, bond and Personal Insurance, partly offset by increases in general liability and commercial auto liability reserves.

Costello said general liability prior-year reserves increased by $46 million during the quarter, primarily because of a higher frequency of large losses in excess casualty and umbrella lines across several accident years. The affected periods included 2017 through 2019 and 2022 and 2023, with no addition to accident year 2025, she said.

Commercial auto liability reserves rose as adverse development in accident years 2023 and 2024 pointed to higher severity than previously estimated. Costello said the company is seeing more attorney representation and time-limit demands in claims that previously may have involved more minor accidents and injuries.

Management described the changes as modest relative to the reserve base and said the reserve review process was unchanged. Costello said the effect on expected forward loss trends was minimal, amounting to tenths of basis points.

Current accident-year property-and-casualty catastrophe losses totaled $222 million before tax, compared with $212 million a year earlier. The catastrophe ratio remained unchanged at 4.9 combined-ratio points.

Personal Insurance Profitability Improves Despite Lower Premiums Personal Insurance produced $128 million in core earnings and an 86.3 underlying combined ratio, an improvement of 1.7 points from the second quarter of 2025. Auto’s underlying combined ratio improved 1.9 points as earned pricing continued to exceed loss trends, while home results were supported by underwriting execution and low-double-digit pricing.

Written premiums in Personal Insurance declined 7%, including a 10% decline in auto and flat home premiums, amid elevated competition for new business. Agency business grew 7% from a year earlier. Renewal written pricing increased 5.5% in auto and 10.4% in home, while auto policy retention improved slightly and home retention was relatively stable.

The Personal Insurance expense ratio rose to 26.3 from 25.1 a year earlier, driven by lower earned premiums and higher commissions associated with a growing agency-business mix. Swift said the company’s contemporary agency product was available in 23 states following its July rollout and is expected to reach 30 states by early 2027. He said direct-channel growth is likely to face continued pressure amid high customer shopping activity and strong competition.

Employee Benefits and Investments Add Support Employee Benefits earned $139 million in core earnings, producing a 7.4% core earnings margin. Fully insured premium growth benefited from sales execution and persistency in the low 90s. Group life performance was described as excellent, while disability performance was solid.

The group disability loss ratio increased 6.3 points to 74.8%, reflecting increased claim incidence across short- and long-term disability. Mike Fish, head of Employee Benefits, said behavioral-health claims were rising somewhat more than other diagnoses in short-tail lines. Paid family and medical leave utilization was also higher in newly launched states and in some longer-established states, though Fish said the company continues to apply rate increases to the book.

Net investment income climbed 22% year over year to $800 million, driven by income from limited partnerships and other alternative investments, along with a higher level of invested assets. Annualized limited partnership returns were 7.6% before tax, supported by real estate joint-venture sales and infrastructure and energy-transition funds. The Hartford expects full-year net investment income to increase, with overall portfolio yields broadly in line with 2025.

About The Hartford Insurance Group (NYSE:HIG)The Hartford Financial Services Group, commonly known as The Hartford, is a U.S.-based insurance and investment company that provides a broad range of commercial and personal insurance products and employee benefits. Its core businesses include property and casualty insurance for businesses and individuals, group benefits such as group life, disability and dental plans, and retirement and investment solutions offered through affiliated asset-management operations. The company also delivers risk management, claims-handling and loss-prevention services designed to support policyholders across a variety of industries.

Founded in Hartford, Connecticut, in 1810, The Hartford is one of the oldest insurance organizations in the United States and has a long history of underwriting and product development across multiple insurance lines.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Hartford is expected to report revenue growth in Q2, but EPS is projected to decline year over year.HIG may benefit from higher premiums, fee income and investment income across key business segments.Hartford faces pressure from higher costs, weaker combined ratios and fewer policies in force. The Hartford Insurance Group, Inc. (HIG - Free Report) is set to report second-quarter 2026 results on July 23, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.13 per share on revenues of $5.2 billion.

The second-quarter earnings estimate has witnessed no upward estimate revisions against one downward movement over the past seven days. Meanwhile, the bottom-line projection indicates a year-over-year decline of 8.2%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 6%.

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For the current year, the Zacks Consensus Estimate for Hartford’s revenues is pegged at $21 billion, implying a rise of 4.8% year over year. However, the consensus mark for current-year EPS is pegged at $12.74, implying a fall of around 5.1% on a year-over-year basis.

HIG beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 16.5%.

Q2 Earnings Whispers for HIGOur proven model does not predict an earnings beat for Hartford Insurance this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

HIG has an Earnings ESP of -3.95% and currently carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping HIG’s Q2 Results?The Zacks Consensus Estimate for net premiums earned for the second quarter indicates 4.5% growth year over year. Also, the consensus estimate indicates an 8.2% increase in fee income in the quarter under review.

The consensus estimate for Business Insurance’s net investment income is $507.7 million, indicating 13.1% growth from the year-ago quarter’s figure. The Zacks Consensus Estimate for net investment income in the Personal Insurance business is pegged at $66.3 million, which indicates a 9.2% increase from the prior-year quarter’s reported figure.

The consensus mark for the Employee Benefits business’ revenues is pegged at $1.8 billion, indicating a 3.8% rise from the prior-year quarter's figure.

However, the bottom line is expected to have been pressured by higher insurance operating costs and other expenses. The Zacks Consensus Estimate for Hartford’s Personal Insurance combined ratio for the quarter under review is pegged at 96.5%, indicating deterioration from the prior-year reported figure of 94.1%. Also, the same for the Business Insurance combined ratio is pegged at 91.9%, up from 87% a year ago.

The Zacks Consensus Estimate for Hartford’s homeowners’ policies in force for the quarter under review indicates a decline of 0.6% year over year. Also, the consensus estimate indicates a 10.8% year-over-year decline in automobile policies in force.

Stocks That Warrant a LookWhile an earnings beat looks uncertain for HIG, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) has an Earnings ESP of +1.39% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s earnings for the to-be-reported quarter is pegged at $1.15 per share, indicating 29.2% year-over-year growth. The consensus estimate for revenues is pegged at $459.6 million. SKWD beat earnings estimates in each of the past four quarters, with the average surprise being 17%.

American Express Company (AXP - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank #3.

The Zacks Consensus Estimate for American Express’ bottom line for the to-be-reported quarter is pegged at $4.41 per share, indicating 8.1% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 4%. The consensus estimate for AXP’s revenues is pegged at $19.6 billion.

Aon plc (AON - Free Report) has an Earnings ESP of +0.24% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Aon’s bottom line for the to-be-reported quarter is pegged at $3.77 per share, indicating 8% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 3.1%. The consensus estimate for AON’s revenues is pegged at $4.3 billion.