The Hanover Insurance Group, Inc. THG

FinancialsInsuranceUnited States of America

Last close 242.09 USD on Nov 1, 2026, +34.4% year to date

Quant rating

Quant rating A Rank 12 of 799 in Financials

Growth C 479 of 799
Valuation A 102 of 799
Quality B 206 of 799
Revisions A 21 of 799
Momentum A 42 of 799

Wall Street consensus Hold (2.67)Average target 239.75 USD −1.0%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 8.3B
Enterprise value: 8.7B
52-week range: 166.74 – 242.54
3-year range: 113.24 – 242.54
Dividend yield: 1.57%
Beta (5 years): 0.27
Shares outstanding: 34.4M
Next earnings: Feb 4, 2027

About the company

The Hanover Insurance Group, Inc. is the holding company, which is engaged in the business of property and casualty insurance products and services. The Company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. Core Commercial product suite provides agents and customers with products designed for small and mid-sized businesses. Core Commercial segment includes Commercial multiple peril, Commercial automobile, Workers’ compensation, and Other core commercial. Specialty segment offers a comprehensive suite of products focused predominately on small to mid-sized businesses. This includes various specialized products that are organized into four distinct divisions: Professional and Executive Lines, Specialty Property & Casualty, Marine, and Surety and Other. Personal Lines segment coverage includes Personal automobile, and Homeowners and other personal lines.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	6,186	5,941	5,694	5,279	4,794	–
Revenue growth	4.1%	4.3%	7.9%	10.1%	5.2%	6.3%
EPS (basic, normalized)	19.09	13.34	1.56	5.53	8.73	–
EPS growth	43.1%	755.1%	−71.8%	−36.7%	–	–
Gross margin	–	–	–	–	–	–
Net margin	10.0%	6.8%	0.6%	2.1%	8.2%	5.6%
ROE	21.7%	18.3%	2.4%	6.7%	10.0%	11.8%

Balance sheet, last quarter
Cash & short-term investments (mil)	–
Current ratio	–
Long-term debt (mil)	794
Net debt (mil)	–
Total equity (mil)	3,442
Net debt / equity	–

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			Book value per share			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	P/B	Mean est.	Growth	P/E
2025 actual	6,186	+4.1%	1.4x	100.89	+24.3%	2.4x	19.09	+43.1%	12.7x
2026	6,637	+7.3%	1.3x	107.12	+6.2%	2.3x	20.80	+9.0%	11.6x
2027	6,906	+4.1%	1.3x	118.99	+11.1%	2.0x	19.84	−4.6%	12.2x
2028	7,204	+4.3%	1.2x	131.01	+10.1%	1.8x	20.58	+3.7%	11.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	6,637	−0.2%	−0.1%	−0.9%	20.80	+2.5%	+5.7%	+15.7%
2027	6,906	−0.1%	−0.1%	−1.3%	19.84	+2.1%	+3.8%	+8.1%
2028	7,204	−1.7%	−3.8%	−4.5%	20.58	+5.1%	+7.3%	+14.7%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	1,454	1,521	1,663	1,445	1,511	1,584	1,654	1,489	1,560	1,657
Sales mean (mil)	1,465	1,495	1,667	1,423	1,550	1,603	1,752	1,523	1,580	1,660
Surprise	−0.8%	+1.7%	−0.2%	+1.5%	−2.5%	−1.2%	−5.6%	−2.3%	−1.3%	−0.2%
EPS reported	3.08	1.88	3.05	5.32	3.87	4.35	5.09	5.79	5.25	5.31
EPS mean	2.71	1.85	2.53	3.37	3.45	3.12	4.22	4.96	4.19	3.94
Surprise	+13.8%	+1.6%	+20.4%	+58.1%	+12.2%	+39.2%	+20.7%	+16.8%	+25.3%	+34.6%

Peer comparison Insurance

Peers in the same industry group, by market capitalization
Company	Market cap	ROE	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 P/B	FY2 P/B
THG The Hanover Insurance Group, Inc.	8.3B	21.7%	10.0%	2.49x	11.6x	12.2x	2.3x	2.0x
CB Chubb Limited	139.1B	14.4%	17.4%	1.90x	12.5x	12.3x	1.8x	1.6x
PGR The Progressive Corporation	134.0B	38.2%	12.9%	3.91x	12.6x	14.3x	3.9x	3.4x
MRSH Marsh & McLennan Companies, Inc.	95.4B	33.4%	15.4%	6.50x	19.1x	17.5x	6.4x	5.5x
TRV The Travelers Companies, Inc.	81.2B	20.8%	12.8%	2.80x	10.8x	12.7x	2.5x	2.3x
AJG Arthur J. Gallagher & Co.	70.8B	12.8%	10.7%	2.94x	21.1x	18.6x	2.7x	2.5x
Mean		23.6%	13.2%	3.43x	14.6x	14.6x	3.3x	2.9x
Median		21.3%	12.8%	2.87x	12.5x	13.5x	2.6x	2.4x

Technical analysis

1M+11.3%
3M+8.5%
1Y+46.2%
3Y+126.6%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, The Hanover Insurance Group, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Premiums earned	6,186	5,941	5,694	5,279	4,794	4,557
Other revenue	393	288	323	270	315	283
Total revenue	6,579	6,229	6,017	5,549	5,109	4,840
Losses, benefits and adjustments	3,729	3,757	4,135	3,623	3,134	2,845
Amortization of policy acquisition costs	1,285	1,222	1,176	1,093	983	951
Selling, general & administrative expenses	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Other operating expenses	696	692	626	591	556	576
Operating income	868	558	80.8	241	436	468
Net interest income (expense)	−24.4	−19.9	−39.7	−97.4	85.1	−23.7
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	844	538	41.1	144	521	445
Provision for taxes	183	112	7.6	27.2	101	82.8
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	661	425	33.5	117	420	362
Extraordinary items	1.8	0.7	1.8	−0.8	−1.3	−3.3
Net income	662	426	35.3	116	419	359
Basic weighted average shares (mil)	35.8	35.9	35.7	35.6	35.9	37.7
Diluted weighted average shares (mil)	36.5	36.4	36.1	36.1	36.4	38.1
Basic EPS, normalized	19.09	13.34	1.56	5.53	8.73	–

Balance sheet in millions of USD, fiscal years

Balance sheet, The Hanover Insurance Group, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Total receivables	–	–	–	–	–	–
Prepaid expenses	–	–	–	–	–	–
Property, plant & equipment	–	–	–	–	–	–
Goodwill	179	179	179	179	179	179
Intangibles	–	–	–	–	–	–
Insurance receivables	1,861	1,801	1,706	1,601	1,470	1,339
Long-term investments	10,383	9,410	8,913	8,510	9,153	8,846
Note receivable	–	–	–	–	–	–
Other long-term assets	167	260	260	283	107	110
Deferred policy acquisition costs	703	663	621	605	552	478
Other assets	2,530	2,527	2,618	2,512	2,563	2,371
Total assets	16,946	15,274	14,613	13,995	14,254	13,444
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	–	–	–	–	–	–
Accrued expenses	–	–	–	–	–	–
Policy liabilities	11,241	10,782	10,475	10,037	9,238	8,555
Short-term debt	375	61.8	0	0	0	0
Current portion of long-term debt	–	–	–	–	–	0
Long-term debt	843	722	783	782	782	781
Minority interest	–	–	–	–	–	–
Other liabilities	915	866	889	842	1,090	906
Total liabilities	13,374	12,433	12,147	11,661	11,109	10,242
Shareholders' equity
Preferred stock	–	0	0	0	0	–
Common stock	0.6	0.6	0.6	0.6	0.6	0.6
Additional paid-in capital	2,014	1,974	1,939	1,913	1,887	1,857
Retained earnings (accumulated deficit)	3,742	3,210	2,909	2,993	2,983	2,668
Treasury stock	−2,013	−1,886	−1,866	−1,871	−1,848	−1,696
Other equity	−171	−456	−517	−702	122	372
Total equity	3,572	2,842	2,466	2,334	3,145	3,202
Total liabilities & shareholders' equity	16,946	15,274	14,613	13,995	14,254	13,444

Cash flow statement in millions of USD, fiscal years

Cash flow statement, The Hanover Insurance Group, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	662	426	35.3	116	419	359
Depreciation, depletion & amortization	–	1.5	6.3	12.9	16.9	18.2
Deferred taxes	14.1	−18.8	−24.6	−46.5	23.9	−23.0
Non-cash items	37.8	37.2	39.0	34.5	26.3	32.3
Changes in working capital	464	360	306	605	338	321
Cash from operations	1,178	806	362	722	824	708
Investing activities
Capital expenditures	−7.7	−10.2	−11.9	−17.8	−8.0	−14.9
Other investing cash flows	−658	−531	−217	−490	−452	−594
Cash from investing	−666	−541	−228	−508	−460	−609
Financing activities
Financing cash flow items	−13.6	−11.4	−11.4	−14.2	−8.9	−8.5
Cash dividends paid	−131	−124	−117	−109	−102	−99.5
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	319	−10.0	6.5	−17.5	−142	−85.9
Cash from financing	175	−146	−122	−141	−253	−194
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	687	119	11.1	74.1	110	−95.1
Free cash flow	1,170	796	350	704	816	693

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.