Monday, February 8, 2010

Hartford Financial's Huge Book Value

Hartford Financial Services (HIG) continues to report solid core earnings. The market seems to doubt the staying power of these earnings. Check out the book value for this $22 stock reported after the close with the Q4 earnings. Currently $38.92 or $47.56 if you exclude the AOCI. With core earnings approaching $4 in 2010 its perplexing to understand the multiple on this stock either based on earnings or book value. It won't last forever!


Quarterly Results




4Q '09 4Q '08 Change
Net income (loss) $557 $(806) NM

Net income (loss) available to common
shareholders per diluted share

$1.19 $(2.71) NM
Core earnings (losses) $689 $(208) NM
Core earnings (losses) available to
common shareholders per diluted share*
$1.51 $(0.72) NM
Assets under management* $380,834 $345,451 10%
Book value per common share $38.92 $28.53 36%
Book value per common share (ex. AOCI)* $47.56 $51.69 (8%)

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