Hartford Financial Services Group Inc (HIG): Is This a Good Time to Buy This Financial Stock?

Recent updates

Hartford Financial Services Group Inc (NYSE:HIG) is targeting a ROE of 7%-8% in 2013 and through its greater risk management capabilities, the company has a much improved risk portfolio. The debt to total capitalization, which measures the amount of leverage in the balance sheet, has reduced to a considerable extent for Hartford.

The company has been strategizing on being an organization that has reduced sensitivity to capital markets and increased financial flexibility. The mutual funds business is being built more strongly in alignment with this strategy due to its competitive market position. Along with the mutual funds, the P&C business has a huge potential in generating future growth.

The takeaway

The financial sector has gained a bit of momentum of late. Some of the reasons behind it are the improvement in the housing market and the prospect of dividend increases and buybacks in 2013. Altogether, the trends in the financial sector are about to change after the 2008 crisis.

As a wealth management and insurance company, Hartford Financial Services Group Inc (NYSE:HIG) will surely benefit from this reversal trend. Its strengths are visible in multiple areas like solid stock performance, robust revenue growth, and a healthy financial position with reasonable debt levels.

Capitalizing on the agreement with AARP is the best way forward in my opinion, since the company has to focus primarily on its P&C business from now on for a significant portion of its income. To conclude, Hartford looks like a stock worth buying.

The article Is This a Good Time to Buy This Financial Stock? originally appeared on Fool.com and is written by Sujata Dutta.

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