1 Insurance Stock to Watch and 2 to Consider with Caution

The Hartford (HIG) and Enact Holdings (ACT) are two insurance stocks to sell due to their slow revenue and earnings growth, while Hamilton Insurance Group (HG) is a stock to watch due to its durable advantage in the industry. HIG's large revenue base makes it difficult to increase sales quickly, and its annual net premiums earned growth has lagged behind its peers. ACT's net premiums earned have stagnated over the last four years, and its operational productivity has decreased over the last two years. HG, on the other hand, operates global specialty insurance and reinsurance platforms across four countries, making it a diamond in the rough.

The insurance sector has seen mixed performances among its major players. While some stocks are facing stagnant growth, others present promising opportunities. This article delves into the financial health of The Hartford (HIG), Enact Holdings (ACT), and Hamilton Insurance Group (HG), providing insights for investors.

The Hartford (HIG)

The Hartford Insurance Group (HIG) has been a staple in the insurance sector, but its recent performance has raised concerns. In the first quarter, HIG reported earnings per share (EPS) of $2.20, beating the consensus estimate by $0.05. However, the company's revenue of $6.81 billion was slightly below the consensus estimate of $6.97 billion. The Hartford's annual net premiums earned growth has lagged behind its peers, making it difficult for the company to increase sales quickly. Additionally, the stock has seen a 0.9% decline in its trading price, reaching $120.80 during mid-day trading on July 1, 2025 [1].

Despite these challenges, HIG has received positive analyst ratings. UBS Group, Morgan Stanley, Wells Fargo & Company, and Raymond James Financial have all raised their price targets for the stock, with Raymond James Financial boosting its target from $125.00 to $135.00. However, Jefferies Financial Group has lowered its target from $118.00 to $117.00. The average analyst rating for HIG is "Moderate Buy," with a consensus target price of $133.67 [1].

Enact Holdings (ACT)

Enact Holdings (ACT) has also faced challenges in recent years. The company's net premiums earned have stagnated over the last four years, and its operational productivity has decreased over the last two years. These factors have contributed to a slowdown in revenue and earnings growth. In the first quarter of 2025, ACT reported EPS of $0.65, down from $0.75 in the same quarter of the previous year. The company's revenue of $4.25 billion was also lower than the consensus estimate of $4.40 billion [2].

The stock has seen a 2.5% decline in its trading price over the past month, underperforming the Finance sector's gain of 2.79% and the S&P 500's gain of 4.37%. Despite these challenges, ACT has received a Zacks Rank of #2 (Buy) due to its durable advantage in the industry. The company's Forward P/E ratio of 6.68 is trading at a discount compared to its industry average of 10.14 [2].

Hamilton Insurance Group (HG)

Hamilton Insurance Group (HG) stands out as a diamond in the rough. The company operates global specialty insurance and reinsurance platforms across four countries, providing a durable advantage in the industry. In the latest trading session, HG closed at $20.61, marking a -2.09% move from the previous day. However, the stock has appreciated by 0.67% over the past month, underperforming the Finance sector's gain of 2.79% but outperforming the S&P 500's gain of 4.37% [2].

HG is scheduled to release its earnings on August 6, 2025. The company is expected to report an EPS of $0.92, marking a 23.33% fall compared to the same quarter of the previous year. The stock has received a Zacks Rank of #2 (Buy) due to its positive estimate revisions and durable advantage in the industry [2].

Conclusion

While The Hartford (HIG) and Enact Holdings (ACT) face challenges with slow revenue and earnings growth, Hamilton Insurance Group (HG) presents a promising opportunity. Investors should closely monitor the performance of these companies and consider their individual risk-return profiles before making investment decisions.

References

[1] https://www.marketbeat.com/instant-alerts/filing-envestnet-asset-management-inc-buys-66949-shares-of-the-hartford-insurance-group-inc-nysehig-2025-07-11/
[2] https://www.nasdaq.com/articles/hamilton-insurance-hg-stock-falls-amid-market-uptick-what-investors-need-know-0