Sunday, June 7, 2015

Seeking Alpha: Hartford Financial Still Has More To Give

Hartford Financial (NYSE:HIG) has the unenviable task of running off a multibillion-dollar portfolio of assets through a run-off operation that is unlikely to generate returns much above the mid-single digits. Even so, this excellent small commercial underwriter is on a path back to double-digit ROEs as strong underwriting results in commercial and personal P&C and aggressive capital management add value. If Hartford can get to 10% ROE in five years (and move closer to 12% over the long term), I think $45 is a fair price today. I'd also note that the Hartford is an appealing asset and its five-year performance may be moot as larger insurance companies ponder what to do with their surplus capital.

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Hartford Financial Still Has More To Give

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