Business Analysis of Hartford Financial Services Group

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Hartford Financial Services Group

HARTFORD FINANCIAL SERVICES GROUP

Business Overview

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. It operates through six segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, Mutual Funds, and Talcott Resolution. The Commercial Lines segment offers workers' compensation, property, automobile, marine, livestock, liability, and umbrella insurance products, as well as customized insurance products and services, including professional liability, bond, and specialty casualty coverages. The Personal Lines segment provides automobile, homeowners, and personal umbrella coverages to individuals. The Property & Casualty Other Operations segment provides coverage for asbestos and environmental exposures. The Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid coverages and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. The Mutual Funds segment provides investment products for retail and retirement accounts, as well as exchange-traded products; and investment-management and administrative services, such as product design, implementation, and oversight. The Talcott Resolution segment offers variable, fixed, and payout annuity products; and institutional and private-placement life insurance products. The Hartford Financial Services Group, Inc. was founded in 1810 and is headquartered in Hartford, Connecticut.

Hartford Financial Services Group

Hartford Financial Services Group


R&P Rank: 150
Sector: Insurance
Industry:Property & Casualty Insurance
H.Q Location:Connecticut
Website: www.thehartford.com
Company Address:
ONE HARTFORD PLAZA, HARTFORD CT 06155
Ph:860-547-5000

Business Analysis of Hartford Financial Services Group

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Hartford Financial Services Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Hartford Financial Services Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Hartford Financial Services Group with an interactive chart.

  1. Revenue Growth: Hartford Financial Services Group reported a revenue growth of -0.4% year-on-year during 2016. Property & Casualty Insurance Industry grew at 6.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Hartford Financial Services Group spent 62.0% of its total revenues on COGS. Property & Casualty Insurance industry average (COGS share of revenue) in the same period was 65.6%
  3. R&D share of Revenues: Hartford Financial Services Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Hartford Financial Services Group spent 19.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Property & Casualty Insurance industry average SG&A spending in the same period was 14.9%
  5. Inventory share of Revenues: Hartford Financial Services Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Hartford Financial Services Group invested 170.4% of its total revenues on Accounts Payable (A/P) Property & Casualty Insurance industry average Accounts Payable investment in the same period was 18.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Hartford Financial Services Group invested 147.8% of its total revenues on Accounts Receivable (A/R). Property & Casualty Insurance industry average Accounts Receivable investment in the same period was 33.0%
  8. PP&E share of Revenues: As a percentage of revenue, Hartford Financial Services Group invested 5.4% of its total revenues on Property, Plants, and Equipments (PP&E). Property & Casualty Insurance industry average PPE investment in the same period was 30.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Hartford Financial Services Group invested 3.1% of its total revenues on Intangibles. Property & Casualty Insurance industry average Intangibles investment in the same period was 29.7%
  10. Net Margins: Hartford Financial Services Group Net Margins in the year 2016 were 4.9%. Property & Casualty Insurance industry average Net Margins in the same period were 8.2%

Sector and Industry Association of Hartford Financial Services Group

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Hartford Financial Services Group is associated with Financials Sector Group, Insurance Sector, and Property & Casualty Insurance Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of Hartford Financial Services Group

With $18.3 billion revenues, Hartford Financial Services Group ranked number 7 of all the companies in the US Property & Casualty Insurance industry. There were a total of 66 public companies in the US Property & Casualty Insurance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Property & Casualty Insurance industry by revenues during 2016 were:

  1. Berkshire Hathaway ($223.6 billion)
  2. AIG ($52.4 billion)
  3. Allstate ($36.5 billion)
  4. Chubb ($31.5 billion)
  5. Travelers Companies ($27.6 billion)
  6. Progressive ($23.4 billion)
  7. Hartford Financial Services Group ($18.3 billion)
  8. Loews ($13.1 billion)
  9. XL Group ($10.5 billion)
  10. CNA Financial ($9.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Hartford Financial Services Groupand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of hartford-financial-services-group

Chubb (CB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Chubb Ltd with $31 billion revenues in the year 2016 was the number 4 Property & Casualty Insurance company. Read this report to know the top competitors of Chubb and identify growth and cost optimization opportunities of Chubb

Travelers Companies (TRV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Travelers Companies, Inc. with $28 billion revenues in the year 2016 was the number 5 Property & Casualty Insurance company. Read this report to know the top competitors of Travelers Companies and identify growth and cost optimization opportunities of Travelers Companies

Progressive (PGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Progressive Corp with $23 billion revenues in the year 2016 was the number 6 Property & Casualty Insurance company. Read this report to know the top competitors of Progressive and identify growth and cost optimization opportunities of Progressive

Loews (L) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Loews Corp with $13 billion revenues in the year 2016 was the number 8 Property & Casualty Insurance company. Read this report to know the top competitors of Loews and identify growth and cost optimization opportunities of Loews

XL Group (XL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

XL Group Ltd with $11 billion revenues in the year 2016 was the number 9 Property & Casualty Insurance company. Read this report to know the top competitors of XL Group and identify growth and cost optimization opportunities of XL Group

CNA Financial (CNA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Cna Financial Corp with $9 billion revenues in the year 2016 was the number 10 Property & Casualty Insurance company. Read this report to know the top competitors of CNA Financial and identify growth and cost optimization opportunities of CNA Financial

Revenues Analysis

Hartford Financial Services Group (HIG) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Hartford Financial Services Group Inc (HIG) from 2012 to 2016. Hartford Financial Services Group generated a total of $18.3 billion revenues during 2016. Hartford Financial Services Group reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hartford Financial Services Group (HIG) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Hartford Financial Services Group Inc (HIG) from 2002 to 2016. Hartford Financial Services Group generated a total of $18.3 billion revenues during 2016. Hartford Financial Services Group reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hartford Financial Services Group (HIG) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Hartford Financial Services Group Inc (HIG) revenue growth with Property & Casualty Insurance industry growth during the last five years from 2012 to 2016. Hartford Financial Services Group reported a revenue growth of -0.4% year-over-year during 2016. The Property & Casualty Insurance industry growth was 6.6% year-over-year during 2016. Hartford Financial Services Group growth was slower than the industry during 2016.

Profit Analysis