Hartford Insurance Post-Earnings Stock Decline due to Margin Pressures, Liability Reserve Charges, RBC Says

MT Newswires Live07-27

Hartford Insurance (HIG) share weakness last week despite a Q2 earnings beat was due to margin pressures in the disability segment, as well as general liability and commercial auto reserve charges, RBC Capital Markets said in a Friday research report.

For 2026, RBC said it now expects EPS of $12.84 from $12.77 earlier, based on Q2 upside. However, the analysts cut their 2027 EPS projection to $13.61 from $13.75.

Property and casualty underwriting income fell in Q2 as the core loss ratio increased and reserve releases declined due to additions in general liability and commercial auto liability, according to the note.

Reserves are a shrinking tailwind, which could compound core margin pressures in the P&C and disability segments, ultimately limiting earnings growth, the analysts said.

RBC reiterated its sector perform rating on the stock and boosted its price target to $150 per share from $145.

Price: 141.06, Change: +0.53, Percent Change: +0.38

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