Hartford (The)

Methodology

Hartford's property and casualty insurance operations generate cyclical earnings tied to underwriting discipline, catastrophe losses, and investment returns. The company's commercial lines focus provides more stability than personal lines. This calculation works best using normalized assumptions about mid-cycle combined ratios and catastrophe frequency—major storm years dramatically impact results and don't represent sustainable earnings power.

Methodology

Hartford typically shows moderate PEG ratios for an insurer, though growth rates fluctuate with underwriting cycles and catastrophe experience. The company's pricing discipline and commercial focus support steady performance through cycles. For insurers, valuation based on price-to-book relative to return on equity and combined ratio trends provides more insight than earnings-based PEG ratios that swing with catastrophe timing.

Methodology

Hartford pays a meaningful dividend reflecting the stable cash generation from insurance float and investment income. The company balances dividends with share buybacks subject to regulatory capital requirements. PEGY is relevant for income-focused insurance investors, as the combination of yield and modest growth from rate increases and market share gains creates the total return profile for this commercial insurer.