A Business at a Glance
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HANOVER INSURANCE GROUP, INC.
THG
$8.0B
Mkt Cap
$218.11
+1.86%
HANOVER INSURANCE GROUP, INC. (THG) has a current P/E ratio of 12.0, compared to its historical median P/E of 11.3. The stock is currently considered Fair based on its historical valuation range.
HANOVER INSURANCE GROUP, INC. (THG) has a 5-year average return on invested capital (ROIC) of 9.5%. This is below average and may indicate limited pricing power.
HANOVER INSURANCE GROUP, INC. (THG) has a market capitalization of $13.2B. It is classified as a large-cap stock.
Yes, HANOVER INSURANCE GROUP, INC. (THG) pays a dividend with a trailing twelve-month yield of 1.00%. The company also returns capital through share buybacks, with a buyback yield of 1.55%.
Based on historical P/E analysis, HANOVER INSURANCE GROUP, INC. (THG) appears fair. The current P/E of 12.0 is 6% above its historical median of 11.3. The estimated fair value CAGR (P/E method) is -0.9%.
HANOVER INSURANCE GROUP, INC. (THG) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
The Hanover Insurance Group is a property and casualty insurance holding company that underwrites and distributes specialized insurance products through independent agents and brokers across the United States. The company operates through four segments: Core Commercial (small and mid-sized business accounts including commercial multiple peril, commercial automobile, and workers' compensation), Specialty (marine, management liability, and other specialized lines), Personal Lines (homeowners and auto bundled offerings), and Other (holding company operations). THG's business model emphasizes disciplined underwriting and pricing, quality claims handling, and customer service, with a focus on account business and strong agency relationships rather than transactional volume. The company generates revenue through net premiums written, which reached approximately $6.3 billion in 2025, and net investment income from a high-quality investment portfolio. THG's competitive advantages include efficient service models, strong brand recognition with agents, robust product offerings that blend point-of-sale capabilities with traditional underwriting expertise, and meaningful barriers to entry in small commercial through specialized products like the Workers' Compensation Advantage program. The company serves small to mid-market businesses and individuals seeking bundled insurance solutions, with geographic diversification efforts focused on targeted expansion states to reduce concentration risk and enhance portfolio resilience.
【Disciplined growth with margin focus】 Management expects consolidated net written premium growth to accelerate to mid-single-digit levels in 2026, driven by balanced contributions from transactional flow, digital engagement, and consolidation activity, while maintaining underwriting discipline particularly in softening property conditions. The company anticipates continued strong profitability across all segments, with Personal Lines expected to achieve policy count growth, Core Commercial positioned to benefit from improved momentum in both Small Commercial and Middle Market, and Specialty expected to ramp up growth from first-quarter levels while delivering strong profitability through disciplined execution. Net investment income is expected to grow in the mid to upper single digits compared to 2025, supported by the company's high-quality investment portfolio and disciplined asset allocation. Management remains confident in its ability to deliver sustainable, profitable growth through selective underwriting, targeted investments in technology and capabilities, and continued focus on expense discipline and operational leverage as the organization scales.
| Metric | Target | Period |
|---|---|---|
| Consolidated net written premium growth | mid-single-digit growth | FY2026 |
| Net investment income growth | mid to upper single digits | FY2026 compared to FY2025 |
| Expense ratio | 30.3% | FY2026 |
| Combined ratio excluding catastrophes | 88%-89% | FY2026 |
| CAT load | 6.5% | FY2026 |
Consolidated net written premium growth (FY2026): “we expect overall consolidated net written premium growth to accelerate in 2026 to mid-single-digit growth”
Net investment income growth (FY2026 compared to FY2025): “We expect net investment income growth in the mid to upper single digits compared to 2025”
Expense ratio (FY2026): “Our expense ratio for 2026 is expected to be 30.3%”
Combined ratio excluding catastrophes (FY2026): “The combined ratio, excluding catastrophes, should be in the range of 88%-89%, an improvement from our 2025 guidance”
CAT load (FY2026): “Our CAT load for the year is 6.5%, consistent with our guidance for 2025”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.7B | 6.6B | 6.2B | 6.0B | 5.5B | 5.2B |
| Net Income | 721M | 663M | 426M | 35M | 116M | 423M |
| EPS | $11.92 | $18.16 | $11.70 | $0.98 | $3.21 | $11.60 |
| Free Cash Flow | 1.2B | 1.2B | 796M | 350M | 705M | 816M |
| ROIC | 4.7% | 16.6% | 12.5% | 1.3% | 4.2% | 12.7% |
| Gross Margin | - | 12.8% | 8.6% | 0.7% | 2.6% | 10.0% |
| Debt/Equity | 0.24 | 0.34 | 0.28 | 0.32 | 0.00 | 0.00 |
| Dividends/Share | $2.18 | $3.58 | $3.41 | $3.25 | $3.01 | $2.80 |
| Operating Income | 997M | 933M | 650M | 106M | 285M | 432M |
| Operating Margin | 14.9% | 14.1% | 10.4% | 1.8% | 5.2% | 8.3% |
| ROE | 20.2% | 20.7% | 16.1% | 1.5% | 4.2% | 13.3% |
| Shares Outstanding | 61M | 36M | 36M | 36M | 36M | 36M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 5.1B | 5.0B | 4.1B | 4.3B | 4.5B | 4.9B | 4.8B | 5.2B | 5.5B | 6.0B | 6.2B | 6.6B | 6.7B |
| Gross Margin | 7.5% | 8.7% | 1.6% | 6.9% | 6.3% | 10.7% | 9.2% | 10.0% | 2.6% | 0.7% | 8.6% | 12.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 406M | 466M | 193M | 327M | 407M | 454M | 485M | 432M | 285M | 106M | 650M | 933M | 997M |
| Op. Margin | 8.0% | 9.3% | 4.8% | 7.7% | 9.0% | 9.3% | 10.0% | 8.3% | 5.2% | 1.8% | 10.4% | 14.1% | 14.9% |
| Net Income | 282M | 332M | 155M | 186M | 391M | 425M | 359M | 423M | 116M | 35M | 426M | 663M | 721M |
| Net Margin | 5.6% | 6.6% | 3.8% | 4.4% | 8.7% | 8.7% | 7.4% | 8.1% | 2.1% | 0.6% | 6.8% | 10.0% | 10.8% |
| Non-Recurring | 50M | 19M | 8.6M | 0 | 132M | 800K | 26M | 700K | 17M | 18M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.8% | 9.0% | 4.3% | 5.0% | 10.4% | 11.6% | 10.1% | 12.7% | 4.2% | 1.3% | 12.5% | 16.6% | 4.7% |
| ROE | 10.4% | 11.7% | 5.4% | 6.4% | 13.1% | 14.5% | 11.7% | 13.3% | 4.2% | 1.5% | 16.1% | 20.7% | 20.2% |
| ROA | 2.1% | 2.4% | 1.1% | 1.3% | 2.8% | 3.4% | 2.8% | 3.1% | 0.8% | 0.2% | 2.9% | 4.1% | 4.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 565M | 445M | 743M | 705M | 551M | 603M | 708M | 824M | 722M | 362M | 806M | 1.2B | 1.3B |
| Free Cash Flow | 554M | 425M | 728M | 686M | 538M | 590M | 693M | 816M | 705M | 350M | 796M | 1.2B | 1.2B |
| Owner Earnings | 516M | 402M | 701M | 662M | 513M | 564M | 669M | 784M | 680M | 324M | 774M | 1.1B | 1.2B |
| CapEx | 11M | 20M | 16M | 19M | 13M | 13M | 15M | 8.0M | 18M | 12M | 10M | 7.7M | 9.4M |
| Maint. CapEx | 34M | 30M | 31M | 30M | 25M | 22M | 18M | 17M | 13M | 6.3M | 1.5M | 4.6M | -5.3M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.9M | 5.6M | 8.7M | 3.1M | 15M |
| D&A | 34M | 30M | 31M | 30M | 25M | 22M | 18M | 17M | 13M | 6.3M | 1.5M | 4.6M | -5.3M |
| CapEx/OCF | 2.0% | 4.4% | 2.1% | 2.6% | 2.4% | 2.2% | 2.1% | 1.0% | 2.5% | 3.3% | 1.3% | 0.7% | 0.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 67M | 74M | 80M | 87M | 94M | 386M | 100M | 102M | 109M | 117M | 124M | 131M | 132M |
| Dividend Yield | 3.3% | 2.9% | 3.0% | 2.8% | 2.4% | 9.0% | 2.8% | 2.4% | 2.3% | 2.9% | 2.6% | 2.1% | 1.0% |
| Share Buybacks | 20M | 127M | 106M | 37M | 58M | 564M | 213M | 163M | 31M | 0 | 27M | 129M | 205M |
| Buyback Yield | 0.9% | 4.6% | 3.5% | 1.0% | 1.5% | 11.7% | 5.4% | 3.7% | 0.7% | N/A | 0.5% | 1.9% | 1.6% |
| Stock-Based Comp | 15M | 12M | 12M | 12M | 13M | 17M | 20M | 23M | 29M | 31M | 31M | 36M | 36M |
| Debt Repayment | 700K | 114M | 475M | 0 | 12M | 151M | 176M | 0 | 0 | 0 | 0 | 62M | 62M |
| Balance Sheet | |||||||||||||
| Net Debt | -6.6B | -6.3B | -6.6B | -5.3B | -6.4B | -6.2B | -7.3B | -8.0B | -7.8B | -7.5B | -8.2B | -9.4B | -9.4B |
| Cash & Equiv. | 373M | 339M | 283M | 298M | 1.0B | 216M | 121M | 231M | 305M | 316M | 436M | 1.1B | 10.2B |
| Long-Term Debt | 904M | 803M | 786M | 787M | 778M | 653M | 296M | N/A | N/A | 783M | 722M | 843M | 794M |
| Debt/Equity | 0.39 | 0.35 | 0.35 | 0.26 | 0.26 | 0.22 | 0.09 | 0.00 | 0.00 | 0.32 | 0.28 | 0.34 | 0.24 |
| Interest Coverage | 6.2 | 7.7 | 3.8 | 7.2 | 9.0 | 12.1 | 13.1 | 12.7 | 8.4 | 3.1 | 19.1 | 21.6 | 21.9 |
| Equity | 2.8B | 2.8B | 2.9B | 3.0B | 3.0B | 2.9B | 3.2B | 3.1B | 2.3B | 2.5B | 2.8B | 3.6B | 3.6B |
| Total Assets | 13.8B | 13.8B | 14.2B | 15.5B | 12.4B | 12.5B | 13.4B | 14.3B | 14.0B | 14.6B | 15.3B | 16.9B | 16.5B |
| Total Liabilities | 10.9B | 10.9B | 11.4B | 12.5B | 9.4B | 9.6B | 10.2B | 11.1B | 11.7B | 12.1B | 12.4B | 13.4B | 13.0B |
| Intangibles | N/A | N/A | N/A | 15M | 15M | 15M | 15M | 16M | 16M | 16M | 16M | 18M | 18M |
| Retained Earnings | 1.6B | 1.8B | 1.9B | 2.0B | 2.2B | 2.4B | 2.7B | 3.0B | 3.0B | 2.9B | 3.2B | 3.7B | 3.9B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 6.28 | 7.40 | 3.59 | 4.33 | 9.09 | 10.46 | 9.42 | 11.60 | 3.21 | 0.98 | 11.70 | 18.16 | 11.92 |
| Owner EPS | 11.49 | 8.98 | 16.22 | 15.40 | 11.93 | 13.88 | 17.58 | 21.51 | 18.83 | 9.00 | 21.26 | 31.19 | 20.29 |
| Book Value | 63.33 | 63.49 | 66.14 | 69.71 | 68.69 | 71.76 | 84.09 | 86.04 | 64.58 | 68.45 | 78.05 | 97.90 | 59.01 |
| Cash Flow/Share | 12.58 | 9.93 | 17.21 | 16.39 | 12.82 | 14.83 | 18.58 | 22.60 | 19.99 | 10.04 | 22.15 | 32.29 | 11.83 |
| Dividends/Share | 1.49 | 1.66 | 1.86 | 2.02 | 2.19 | 9.50 | 2.61 | 2.80 | 3.01 | 3.25 | 3.41 | 3.58 | 2.18 |
| Shares Out. | 44.9M | 44.8M | 43.2M | 43.0M | 43.0M | 40.6M | 38.1M | 36.4M | 36.1M | 36.0M | 36.4M | 36.5M | 60.5M |
| Valuation | |||||||||||||
| P/E Ratio | 8.4 | 8.4 | 19.4 | 19.8 | 9.8 | 11.3 | 11.0 | 10.4 | 39.1 | 118.7 | 12.9 | 10.1 | 18.3 |
| P/FCF | 4.3 | 6.5 | 4.1 | 5.4 | 7.2 | 8.2 | 5.7 | 5.4 | 6.4 | 12.0 | 6.9 | 5.7 | 10.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.8 |
| Price/Book | 0.8 | 1.0 | 1.1 | 1.2 | 1.3 | 1.7 | 1.2 | 1.4 | 1.9 | 1.7 | 1.9 | 1.9 | 3.7 |
| Price/Sales | 0.4 | 0.5 | 0.5 | 0.7 | 0.9 | 0.9 | 0.7 | 0.8 | 0.8 | 0.7 | 0.8 | 0.9 | 2.0 |
| FCF Yield | 23.3% | 15.3% | 24.1% | 18.6% | 14.0% | 12.3% | 17.6% | 18.7% | 15.5% | 8.4% | 14.5% | 17.4% | 9.5% |
| Market Cap | 2.4B | 2.8B | 3.0B | 3.7B | 3.9B | 4.8B | 3.9B | 4.4B | 4.5B | 4.2B | 5.5B | 6.7B | 13.2B |
| Avg. Price | 45.09 | 56.52 | 62.84 | 72.36 | 92.52 | 105.89 | 94.02 | 117.38 | 128.53 | 113.31 | 133.31 | 167.93 | 218.11 |
| Year-End Price | 53.01 | 62.15 | 69.76 | 85.58 | 89.51 | 118.40 | 103.39 | 119.97 | 125.62 | 116.28 | 151.16 | 184.20 | 218.11 |
HANOVER INSURANCE GROUP, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
HANOVER INSURANCE GROUP, INC. trades at 12.0x trailing earnings, compared to its 15-year median P/E of 11.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 6.6x vs a median of 6.1x. The company's 5-year average ROIC is 9.5% with a gross margin of 6.9%. Total shareholder yield (dividends + buybacks) is 2.6%. At current prices, the estimated annualized return to fair value is +3.4%.
HANOVER INSURANCE GROUP, INC. (THG) reported annual revenue of $6.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
HANOVER INSURANCE GROUP, INC. (THG) has a net profit margin of 10.0%. This is a healthy margin.
HANOVER INSURANCE GROUP, INC. (THG) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HANOVER INSURANCE GROUP, INC. (THG) has a debt-to-equity ratio of 0.34. This indicates a conservatively financed balance sheet.
HANOVER INSURANCE GROUP, INC. (THG) reported earnings per share (EPS) of $18.16 in its most recent fiscal year.
HANOVER INSURANCE GROUP, INC. (THG) has a return on equity (ROE) of 20.7%. This indicates the company generates strong returns for shareholders.
HANOVER INSURANCE GROUP, INC. (THG) has a 5-year average gross margin of 6.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for HANOVER INSURANCE GROUP, INC. (THG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HANOVER INSURANCE GROUP, INC. (THG) has a book value per share of $97.90, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects consolidated net written premium growth to accelerate to mid-single-digit levels in 2026, driven by balanced contributions from transactional flow, digital engagement, and consolidation activity, while maintaining underwriting discipline particularly in softening property conditions. The company anticipates continued strong profitability across all segments, with Personal Lines expected to achieve policy count growth, Core Commercial positioned to benefit from improved momentum in both Small Commercial and Middle Market, and Specialty expected to ramp up growth from first-quarter levels while delivering strong profitability through disciplined execution. Net investment income is expected to grow in the mid to upper single digits compared to 2025, supported by the company's high-quality investment portfolio and disciplined asset allocation. Management remains confident in its ability to deliver sustainable, profitable growth through selective underwriting, targeted investments in technology and capabilities, and continued focus on expense discipline and operational leverage as the organization scales.
Based on recent SEC filings and earnings calls, HANOVER INSURANCE GROUP, INC. (THG) has provided the following forward guidance: Consolidated net written premium growth: mid-single-digit growth (FY2026); Net investment income growth: mid to upper single digits (FY2026 compared to FY2025); Expense ratio: 30.3% (FY2026); Combined ratio excluding catastrophes: 88%-89% (FY2026); CAT load: 6.5% (FY2026).