A Business at a Glance
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The Hanover Insurance Group, Inc. (“THG” or the “Company”) is a holding company organized as a Delaware corporation in 1995. We trace our roots to as early as 1852, when The Hanover Fire Insurance Company was founded. Our primary business operations are property and casualty insurance products and services. We market our products and services through independent agents and brokers in the United States (“U.S.”). Our consolidated financial statements include the accounts of THG; The Hanover Insurance Company (“Hanover Insurance”) and Citizens Insurance Company of America (“Citizens”), which are our principal property and casualty subsidiaries; and other insurance and non-insurance subsidiaries. INFORMATION ABOUT SEGMENTS We conduct our business operations through four reporting segments: Core Commercial, Specialty, Personal Lines and Other. Interest expense related to our corporate debt is reported separately from the earnings of these reporting segments.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.6B | 6.6B | 6.2B | 6.0B | 5.5B | 5.2B |
| Net Income | 663M | 663M | 426M | 35M | 116M | 423M |
| EPS | $18.16 | $18.16 | $11.70 | $0.98 | $3.21 | $11.60 |
| Free Cash Flow | 1.2B | 1.2B | 796M | 350M | 705M | 816M |
| ROIC | 19.9% | 16.6% | 12.5% | 1.3% | 4.2% | 12.7% |
| Gross Margin | 12.8% | 12.8% | 8.6% | 0.7% | 2.6% | 10.0% |
| Debt/Equity | 0.34 | 0.34 | 0.28 | 0.32 | 0.00 | 0.00 |
| Dividends/Share | $3.58 | $3.58 | $3.41 | $3.25 | $3.01 | $2.80 |
| Operating Income | 933M | 933M | 650M | 106M | 285M | 432M |
| Operating Margin | 14.1% | 14.1% | 10.4% | 1.8% | 5.2% | 8.3% |
| ROE | 18.5% | 20.7% | 16.1% | 1.5% | 4.2% | 13.3% |
| Shares Outstanding | 36M | 36M | 36M | 36M | 36M | 36M |
HANOVER INSURANCE GROUP, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
HANOVER INSURANCE GROUP, INC. trades at 9.8x 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 5.4x 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 4.0%. At current prices, the estimated annualized return to fair value is +4.1%.
HANOVER INSURANCE GROUP, INC. (THG) has a current P/E ratio of 9.8, 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 $6.5B. It is classified as a mid-cap stock.
Yes, HANOVER INSURANCE GROUP, INC. (THG) pays a dividend with a trailing twelve-month yield of 2.01%. The company also returns capital through share buybacks, with a buyback yield of 1.98%.
Based on historical P/E analysis, HANOVER INSURANCE GROUP, INC. (THG) appears fair. The current P/E of 9.8 is 13% below its historical median of 11.3. The estimated fair value CAGR (P/E method) is -0.0%.
HANOVER INSURANCE GROUP, INC. (THG) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
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.