The Hanover Insurance Group, Inc.
- Open
- 211.79
- Day high
- 213.86
- Day low
- 207.90
- Prev close
- 207.00
- Volume
- 325K
- Mkt cap
- $7.5B
- P/E (TTM)
- 10.6
- EPS (TTM)
- $20.21
- P/B
- 2.1
- P/S
- 1.1
- Yield
- 0.89%
- Per share
- $1.90
- ▼Insiders net selling -$8.9M over the last 3 months (0 open-market buys, 14 sales)
- 🏛Institutions accumulating (13F)
The Hanover Insurance Group, Inc. (THG) is a Financial Services company listed on NYSE. The stock is up 29% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 14 sales (SEC Form 4).
The Hanover Insurance Group, Inc. (THG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
THG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $4.14 | $5.25 | +26.8% | $1.6B | -1.4% |
| Feb 3, 2026 | $5.20 | $5.79 | +11.3% | $1.7B | +9.3% |
| Oct 29, 2025 | $3.79 | $5.09 | +34.3% | $1.7B | +9.0% |
| Jul 30, 2025 | $3.07 | $4.35 | +41.7% | $1.7B | -6.4% |
| Apr 30, 2025 | $3.58 | $3.87 | +8.1% | $1.6B | +3.0% |
| Feb 4, 2025 | $3.45 | $5.32 | +54.2% | $1.6B | +5.9% |
| Oct 30, 2024 | $2.53 | $3.05 | +20.6% | $1.6B | -6.1% |
| Jul 31, 2024 | $1.88 | $1.88 | +0.0% | $1.5B | +2.8% |
| May 1, 2024 | $2.71 | $3.08 | +13.7% | $1.6B | +0.4% |
| Jan 31, 2024 | $2.73 | $3.13 | +14.7% | $1.5B | +8.0% |
| Nov 1, 2023 | $0.19 | $0.19 | +0.0% | $1.5B | -3.1% |
| Aug 2, 2023 | $-1.91 | $-1.91 | +0.0% | $1.5B | +5.1% |
THG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | Condrin J Pauldirector | Grant | 4 | — |
| Jun 30, 2026 | FARBER JEFFREY Mofficer: Executive Vice President | Grant | 43 | — |
| Jun 30, 2026 | Norton-Gatto Patricia A.officer: SVP & Princpl. Accntg. Officer | Grant | 6 | — |
| Jun 30, 2026 | Donnell William E.director | Grant | 4 | — |
| Jun 30, 2026 | Egan Cynthiadirector | Grant | 4 | — |
| Jun 30, 2026 | Roche John Cdirector, officer: President and CEO | Grant | 122 | — |
| Jun 30, 2026 | Kerrigan Dennis Francisofficer: Executive Vice President | Grant | 15 | — |
| Jun 30, 2026 | Carlin Jane Ddirector | Grant | 4 | — |
| Jun 30, 2026 | LANE KATHY Sdirector | Grant | 4 | — |
| Jun 30, 2026 | Salvatore Bryan Jofficer: Executive Vice President | Grant | 25 | — |
| Jun 30, 2026 | LOVELY DAVID JOHNofficer: Executive Vice President | Grant | 11 | — |
| Jun 30, 2026 | Ward Elizabeth Adirector | Grant | 4 | — |
| Jun 30, 2026 | LAVEY RICHARD Wofficer: Executive Vice President | Grant | 28 | — |
| Jun 30, 2026 | Bunting Theodore H JRdirector | Grant | 4 | — |
| Jun 30, 2026 | RAMRATH JOSEPH Rdirector | Grant | 4 | — |
Source: THG SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full THG insider & 13F page →The Hanover Insurance Group, Inc. company profile
Overview
The Hanover Insurance Group, Inc. (NYSE:THG) is a leading property and casualty insurance company founded in 1852 and headquartered in Worcester, Massachusetts. Originally known as Allmerica Financial Corp., the company changed its name to The Hanover Insurance Group in December 2005. With over 170 years of experience, Hanover has evolved into a diversified insurance provider serving customers across the United States through independent agents and brokers. The company went public in 1995 and has since established itself as a significant player in the property and casualty insurance market, focusing on commercial and personal lines coverage as well as specialty insurance products.
Business
The Hanover Insurance Group operates in the property and casualty insurance industry, which provides coverage for businesses and individuals against financial losses from property damage, liability claims, and other risks. Property insurance covers physical assets like buildings, equipment, and vehicles, while casualty insurance protects against legal liability for injuries or damages caused to others. This industry is essential to the economy as it enables businesses to operate and individuals to own assets by transferring financial risk to insurance companies. The company operates through three primary business segments: 1. Commercial Lines (approximately 60% of revenue): This segment provides insurance coverage to businesses of all sizes. Products include commercial multiple peril policies that cover property damage and liability, commercial automobile insurance for business vehicles, workers' compensation insurance that covers employee injuries, and management and professional liability insurance that protects executives and professionals from lawsuits. The segment also offers specialized coverages like marine insurance for boats and cargo, surety bonds that guarantee contract performance, and umbrella policies that provide additional liability coverage above primary policies. 2. Personal Lines (approximately 35% of revenue): This segment serves individual consumers with personal automobile insurance covering car accidents and theft, homeowners insurance protecting homes and personal property, and additional coverages like personal umbrella policies, inland marine insurance for valuable items, and personal watercraft insurance. These products protect individuals and families from financial losses related to their personal assets and activities. 3. Other/Specialty Lines (approximately 5% of revenue): This smaller segment includes specialty industrial and commercial property insurance for unique risks, excess and surplus lines for hard-to-place risks that standard insurers won't cover, and investment management services provided to institutions and pension funds. The company has been expanding this segment as it typically offers higher profit margins than traditional commercial and personal lines.
Revenue model
The Hanover Insurance Group makes money primarily through insurance premiums collected from policyholders in exchange for coverage. Customers pay regular premiums (monthly, quarterly, or annually) for protection against specified risks. The company's business model relies on collecting more in premiums than it pays out in claims and operating expenses, generating an underwriting profit. Additionally, Hanover invests the premium dollars it collects (called "float") in bonds, stocks, and other securities, earning investment income that significantly contributes to overall profitability. The company's paying customers include small and medium-sized businesses, middle-market companies, and individual consumers who purchase coverage through a network of independent insurance agents and brokers. These intermediaries receive commissions for selling Hanover's products, which is factored into the company's expense structure. Several factors can increase or decrease Hanover's profit margins. Positive factors include rising interest rates that boost investment income, favorable weather conditions that reduce catastrophic losses, effective pricing discipline that keeps premium increases ahead of claims inflation, and successful risk selection that avoids high-loss customers. Negative factors include severe weather events like hurricanes and tornadoes that trigger large catastrophic losses, social inflation that increases lawsuit settlements and jury awards, rising construction and repair costs that make property claims more expensive, increased frequency of auto accidents, and competitive pricing pressure that limits the company's ability to raise rates. The company has been particularly focused on addressing catastrophic weather exposure and social inflation trends that have pressured margins in recent years.
Competitive moat
The Hanover Insurance Group possesses a moderate competitive moat built primarily on regulatory barriers, distribution relationships, and operational expertise. The insurance industry benefits from significant regulatory barriers to entry, as new competitors must obtain licenses in each state, maintain substantial capital reserves, and comply with complex regulations. This creates natural protection against new entrants. Hanover's strongest moat element is its established network of independent agents and brokers who have long-standing relationships with the company and deep knowledge of its products. These distribution partners are costly and time-consuming for competitors to replicate, as they require years of relationship building and ongoing support. The company's 170-year operating history and financial stability also provide credibility with agents and customers. However, Hanover's moat faces several challenges. The property and casualty insurance industry is highly competitive with numerous well-capitalized competitors including much larger players like State Farm, Allstate, and Progressive. Product commoditization is a significant threat, as basic insurance coverage is largely standardized, making it difficult to differentiate on anything other than price and service. Digital disruption from insurtech companies and direct-to-consumer models threatens traditional agent-based distribution, particularly in personal lines where customers increasingly shop online. The company's specialty lines business offers the strongest moat potential due to more complex underwriting requirements and specialized expertise, but this represents a smaller portion of overall revenue. Climate change poses a long-term threat to property insurers through increased catastrophic losses, while social inflation trends in liability coverage create ongoing margin pressure that affects all industry participants.
Risks & safety
The Hanover Insurance Group demonstrates strong financial stability with adequate margin of safety, though typical insurance industry leverage creates some considerations. **Cash and Solvency Position:** - Strong liquidity with $435 million in cash and short-term investments - Healthy operating cash flow of $806 million in 2024 - Debt-to-equity ratio of 0.28, indicating moderate leverage typical for insurers - Current ratio of 2.6, though insurance liability structure differs from typical businesses - No immediate solvency concerns with stable cash generation **Valuation Metrics:** - Trading at 13.0x trailing earnings, reasonable for insurance sector - Price-to-book ratio of 1.95, slightly above book value - EV/EBITDA of 10.3x, moderate valuation level - Graham number suggests potential undervaluation at current levels **Other Considerations:** - Insurance float provides natural funding advantage - Regulatory capital requirements ensure minimum solvency standards - Catastrophic loss exposure creates earnings volatility risk - Strong return on equity of 15% indicates efficient capital utilization
Recent development
Over the past few years, The Hanover Insurance Group has undergone significant strategic transformation focused on margin recovery and risk management. The company implemented comprehensive pricing initiatives across all business lines, with particularly aggressive increases in personal lines where auto rates rose 11.8% and homeowners rates increased 14.9% in recent quarters. A major strategic pivot involved catastrophic risk mitigation, where Hanover proactively reduced exposure in high-risk Midwest markets by 10.2% of policy count while implementing wind and hail deductibles for two-thirds of its Midwest homeowners business. The company also introduced higher deductibles and actual cash value coverage for roof claims to reduce catastrophic losses. Technology investments have been substantial, with the development of new digital platforms including the TAP sales system, Express Quote solutions for specialty lines, and AI-powered underwriting tools. The company has integrated IoT sensors in commercial properties to prevent water and freeze losses, demonstrating innovation in risk prevention. In specialty lines, Hanover has expanded its product offerings and distribution channels, focusing on higher-margin businesses like excess and surplus lines, marine insurance, and healthcare coverage. The company has also been investing in talent acquisition and new underwriting capabilities in growth areas like technology and life sciences sectors. Geographic diversification has become a key strategic priority, with management actively working to reduce concentration in catastrophe-prone regions while expanding in more favorable markets. This includes targeted growth strategies in specific states while maintaining underwriting discipline.
THG company profile · for informational purposes only — not investment advice.
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