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Hartford Insurance to Divest Hartford Funds to Wellington

Tipranks - Thu Jun 4, 9:00AM CDT

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Hartford Insurance ( (HIG) ) has shared an announcement.

On June 3, 2026, The Hartford and Wellington Management announced a definitive agreement for Wellington’s parent to acquire Hartford Funds, with the asset management business to be folded into Wellington’s U.S. wealth franchise and rebranded under the Wellington name after closing. The deal, which carries an estimated net present value of $1.9 billion for The Hartford, combines Wellington’s institutional investment capabilities with Hartford Funds’ U.S. advisor distribution platform and is positioned as creating a single, full-service independent investment manager in the evolving U.S. wealth market.

Transaction terms include $300 million in cash at closing, an expected pre-closing dividend of about $170 million to The Hartford, and a multi-year stream of after-tax cash payments tied to the performance of the combined Hartford Funds and Wellington wealth business over roughly seven years. The transaction, expected to close in the first quarter of 2027 pending regulatory and fund approvals, will see Hartford Funds reported as discontinued operations from the second quarter of 2026, with The Hartford booking a $250 million deferred tax asset, an estimated $150 million after-tax realized loss at closing, and ongoing quarterly cash distributions that boost net income but are excluded from core earnings, underscoring The Hartford’s strategic exit from retail asset management in favor of redeploying capital for shareholders.

The most recent analyst rating on (HIG) stock is a Hold
with a $145.00 price target.
To see the full list of analyst forecasts on Hartford Insurance stock,
see the HIG Stock Forecast page.

Spark’s Take on HIG Stock

According to Spark, TipRanks’ AI Analyst, HIG is a Outperform.

The score is primarily supported by strong financial performance (profitability, conservative leverage, and high-quality cash generation) and a favorable valuation (low P/E with a dividend). Earnings call commentary remains positive overall with active capital returns, but underwriting/catastrophe and select line/expense pressures temper the outlook. Technical indicators are mixed, limiting near-term momentum support.

To see Spark’s full report on HIG stock,
click here.

More about Hartford Insurance

The Hartford is a U.S.-based leader in property and casualty insurance and employee benefits, operating through subsidiaries under The Hartford brand and listed on the NYSE as HIG. Through its Hartford Funds unit, the company offers mutual funds, ETFs and 529 plans focused on the wealth management market, overseeing about $160.2 billion in assets as of April 30, 2026.

Average Trading Volume: 1,553,978

Technical Sentiment Signal: Buy

Current Market Cap: $34.86B

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