When I last wrote about Hartford Financial Services (HIG) ("Hartford"), Chubb (CB) was making its play to acquire the company, and I said that Chubb would likely have to go to $70/share or higher to get a deal done. As later revealed by Hartford, Chubb did go to $70, but Hartford wasn't interested and management has made it clear that they don't regard the company as for sale.
For the most part I think that any company should be for sale at the right price, but I think Hartford has some legitimate internal value drivers that aren't being fully appreciated by the market. Granted, the shares still trade quite a bit higher than they did before the Chubb bid, but I still see 10% or better annual appreciation potential here if Hartford can generate mid-single-digit core earnings growth … and I think they can.
Read the full article here:
Hartford Financial: Making Its Go-It-Alone Case, But The Market Hasn't Really Rewarded It
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