What's In Store For The Hartford (HIG) This Earnings Season?
Zacks Investment Research | Apr 24, 2017 10:21PM ET
The Hartford Financial Services Group, Inc. (NYSE:HIG) will release first-quarter 2017 financial results on Apr 27, after the closing bell. Last quarter, the company delivered a positive earnings surprise of 12.50%.
Let’s see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
We expect the Group Benefit segment to deliver a solid performance in the first quarter. A better product suite due to the addition of dental and vision services for the small case market as well as new voluntary offerings should support the upside.
Management expects Talcott Resolution to have performed well in the quarter. The unit is estimated to return $600 million of capital in 2017.
Its Personal Lines segment is expected to deliver a strong performance, continuing the trend displayed previously. The performance in the business should be boosted by prior-year reserves and current accident year loss picks.
The company has also invested in products, distribution, data and analytics, as well as digital capabilities to provide more value to its agents and customers. This, in turn, helped in customer acquisition and retention, which is likely to have resulted in higher revenues.
The company’s also enhanced shareholders’ value during the quarter through share repurchases. This is expected to positively impact the bottom line by limiting the outstanding share count.
However, higher auto loss costs are expected to have adversely affected the bottom line.
Combined ratio is likely to have deteriorated further continuing the previous quarters’ trend.
Earnings Whispers
Our proven model does not conclusively show that The Hartford is likely to beat on earnings in the quarter. That is because a stock needs to have both a positive Zacks Investment Research
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