Oct. 16, 2014, 4:46 PM
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Sep. 10, 2014, 9:59 AM
- "The key Debatable Point on Hartford (HIG +1.5%) is the value of Talcott (the U.S. annuity runoff) and whether management can create more value by selling the runoff now versus running it off internally," says analyst Randy Binner. His team's FCF analysis shows an NPV of about $4.4B vs. the $3.8B estimated sale price (75% of statutory capital).
- Binner's senses the market would like to see a quick sale, but the above analysis suggests holding onto the business for another 5 years and then selling is a better deal. He notes market reaction to quick sales by CNO Financial and XL Group was muted, with participants focusing on the book value loss rather than the de-risking.
- The stock is upgraded to a Buy with price target lifted to $44 from $37.
Jul. 30, 2014, 4:51 PM
- Core earnings of $144M or $0.31 per share vs. $231M and $0.47 one year ago. Unfavorable items accounted for $0.38 per share negative impact on core EPS; one year ago, unfavorable items caused a $0.19 hit.
- Capital management is boosted by $1.275B to $3.931B - dividend is lifted by 20% to $0.18 per share, and buyback is raised $775M to $2.775B. Another $500M of the $1.275B cap mgmt expansion will be used for debt reduction.
- Book value per share excluding AOCI of $39.21 vs. $39.30 at start of year.
- Conference call tomorrow at 11 ET
- Previously: Hartford Financial misses by $0.36
- HIG -1.4% AH
Jul. 30, 2014, 4:42 PM
Jul. 30, 2014, 12:11 PM
- Former VP in the director and officers group at Hartford Financial (HIG -0.3%) William Kelly says the insurer let him go after he told a reporter Herbalife (HLF -3%) had approached Hartford about purchasing a so-called directors-and-officers insurance policy. This type of insurance covers legal costs when board members and senior execs get sued.
- Kelly says Hartford ultimately decided not to provide Herbalife with the requested insurance.
- Kelly's comments came on the sidelines of a presentation Bill Ackman was giving lambasting Herbalife.
Jul. 29, 2014, 5:35 PM
- ABX, AEL, AEM, AKAM, ALB, ALL, ALLE, AMC, ANIK, ARII, ASGN, ATEN, ATW, AUY, AVG, BALT, BGC, BMRN, CATM, CAVM, CBT, CENX, CHDN, CJES, CLUB, CMO, CNL, CNW, CODE, COHR, CTRP, CW, CWT, DDR, DRE, DRIV, EGN, EHTH, ELGX, ENTR, EQIX, EQY, ESRT, ESV, EXL, EXR, FBHS, FEIC, FISH, FMC, FNF, FOE, FORM, FORR, GLUU, HIG, HK, HOLX, HOS, HR, HTH, INT, IPI, ISIL, KBR, KEX, KGC, KRFT, KS, LGCY, LNC, LOCK, LPSN, LRCX, MAA, MANT, MDAS, MEOH, MET, MOBL, MOH, MTGE, MTW, MUR, NANO, NE, NEWP, NOW, OI, OTEX, PDM, PEIX, PGTI, PPC, PVA, QUIK, RKUS, ROVI, RRTS, SAM, SBRA, SCI, SFLY, SIMG, SPN, SPRT, SSS, STAA, STAG, STMP, STR, SU, SZYM, TCO, TGB, TGI, TS, TSO, TTEK, TTMI, TWTC, UNM, VGR, VPRT, WDC, WFM, WLL, WMB, WPZ, WSTL, WTW, YELP
Jul. 1, 2014, 7:45 AM
- Hartford Life Insurance K.K. was sold to a subsidiary of ORIX Corporation for $963M.
- The sale is another step in Hartford's (HIG) move to de-risk and instead focus on P&C insurance, Group Benefits, and Mutual Funds. Management expects the sale will result in a net statutory capital benefit of $1.4B, $1B of which could potentially be used for capital returns, and Hartford is seeking approval for extraordinary dividends from the Connecticut Insurance Department.
- Source: Press Release
Jun. 9, 2014, 8:52 AM
- Christopher Swift will replace Liam McGee in the CEO spot, effective July 1. Doug Elliot will take over the president's role from McGee, who is staying on as executive chairman of the board.
- Swift - who has been at Hartford (HIG) since 2010 and is currently CFO - will be replaced in that spot by Beth Bombara, who has been president of Talcott Resolution for two years.
- Source: Press Release
May 22, 2014, 4:26 PM| Comment!
Apr. 28, 2014, 4:29 PM
- Core earnings of $564M up 23% Y/Y, with core EPS of $1.18 up 27% (float reduced by 3% thanks to buybacks). P&C commercial core earnings of $264M up 18%, Consumer markets of $101M up 38%, Talcott Resolution of $175M up 8%.
- Catastrophe losses of $57M inline with outlook, and compare to $21M a year ago. Combined P&C operation combined ratio (before catastrophes) of 87.9 improves from 91.8 a year ago.
- Investments: Annualized investment yield of 4.4% is up 10 basis points from a year ago. Excluding limited partnerships and other alternative investments, yield of 4% is down 10 basis points.
- Book value (excl. AOCI) of $40.17 per share is up form $39.30 at the end of 2013.
- CC tomorrow at 9 ET
- Previously: Hartford Financial Services Group Inc. beats by $0.25, misses on revenue
- Source: Press Release
- Earlier today: Hartford to sell Japanese unit to Orix for $895M
- HIG +1.6% AH
Apr. 28, 2014, 4:21 PM| Comment!
Apr. 28, 2014, 5:25 AM
- As flagged last month, Hartford Financial Services (HIG) has agreed to sell Japanese unit Hartford Life Insurance to Orix Corp (IX) in a deal worth $895M.
- The Japanese financial conglomerate intends to combine the Hartford unit with its Orix Life Insurance.
- The sale is part of Hartford's efforts to limit liabilities connected to life and retirement plans that were issued in the past.
Apr. 27, 2014, 5:35 PM
Apr. 16, 2014, 3:18 PM
- Alongside Barclays' Jay Gelb's upgrade of Lincoln Financial (LNC +2.3%) to Overweight is a downgrade of Reinsurance Group of America (RGA -0.3%) to Equal Weight and cut in the price target to $81 from $88, citing increased competition in the life reinsurance market.
- For Lincoln, Gelb has boosted confidence in the company's ability to generate strong earnings growth despite the low interest rate environment.
- His top picks in the sector remain Prudential (PRU +1.6%), MetLife (MET +0.8%), Aflac (AFL +1.5%), and Protective Life (PL +1.2%), and he has a "positive outlook" on AIG and Hartford Financial (HIG +1.4%).
- "AFL has a top-tier ROE as well as robust share buybacks, and should benefit in 2015 from the Japan Post partnership," writes Gelb, noting yen weakness will hurt GAAP earnings, but the company has hedged profit repatriation back to the States. AIG and HIG, he says, "should deliver substantial share buybacks along with attractive valuations and ultimately higher ROEs."
- ETFs: KIE, IAK, KBWI, KBWP
Mar. 16, 2014, 3:16 AM
- Hartford Financial Services Group (HIG) is reportedly close to an agreement to sell its Japan operations to Orix Corp for $875M.
- The sale would be part of Hartford's efforts to limit liabilities connected to life and retirement plans that were issued in the past.
- Sterne Agee & Leach analyst John Nadel expects any sale to free up at least $600M that was supporting Hartford's Japanese obligations.
HIG vs. ETF Alternatives
Hartford Financial Services Group Inc is an insurance & financial services Company. Its business segments includings Property & Casualty Commercial, Consumer Markets, Property & Casualty Other Operations, Group Benefits, and Mutual Funds.
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