The Hanover Insurance Group, Inc. (THG) 10-Year Financial Performance & Capital Metrics

THG • • Insurance & Managed Care

Financial ServicesProperty & Casualty InsuranceCommercial Lines InsuranceDiversified Commercial Lines

AboutThe Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, and workers' compensation insurance products, as well as management and professional liability, marine, specialty industrial and commercial property, monoline general liability, surety, umbrella, fidelity, crime, and other commercial coverages. The Personal Lines segment provides personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment management services to institutions, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.Show more

Revenue $6.22B +4.2%
Combined Ratio 91.35% -8.0%
Net Income $426M +1106.8%
Return on Equity 16.05% +991.3%
Medical Cost Ratio 80.09% -10.1%
Operating Margin 8.65% +1155.2%
Net Margin 6.85% +1057.6%
ROA 2.85% +1055.1%
Equity / Assets 18.6% +10.3%
Book Value per Share 78.07 +14.3%
Tangible BV/Share 73.16 +15.5%
Debt/Equity 0.28 -13.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Profitable underwriting: 91.3% combined ratio
✓Strong Piotroski F-Score: 7/9
✓Healthy dividend yield of 2.0%

✗Weaknesses

✗High loss ratio of 80.1%

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y2.07%

5Y4.92%

3Y6.41%

TTM5.12%

Profit (Net Income) CAGR

10Y4.21%

5Y0.04%

3Y0.25%

TTM72.65%

EPS CAGR

10Y6.42%

5Y2.27%

3Y0.61%

TTM71.63%

ROCE

10Y Avg2.55%

5Y Avg2.66%

3Y Avg2.04%

Latest4.68%

Peer Comparison

Diversified Commercial Lines

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SIGISelective Insurance Group, Inc.	5.01B	82.97	25.69	14.87%	7.78%	11.65%	21.33%	0.16
LLoews Corporation	21.32B	103.16	16.09	9.96%	8.07%	7.55%	11.22%	0.50
WRBW. R. Berkley Corporation	26.11B	68.71	15.76	12.32%	13.01%	19.44%	13.68%	0.34
THGThe Hanover Insurance Group, Inc.	6.05B	170.15	14.54	4.25%	9.75%	18.44%	13.15%	0.28
CBChubb Limited	118.5B	301.11	13.26	12%	16.48%	12.43%	13.66%	0.22
CNACNA Financial Corporation	12.56B	46.42	13.19	6.66%	6.84%	8.81%	19.71%	0.28
TRVThe Travelers Companies, Inc.	60.53B	271.34	12.64	12.22%	12.13%	18.58%	14.99%	0.29
AFGAmerican Financial Group, Inc.	11B	131.90	12.48	7.12%	9.7%	16.87%	10.47%	0.33

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	5.05B	3.97B	4.27B	4.47B	4.89B	4.82B	5.16B	5.43B	5.96B	6.22B
Revenue Growth %	-0%	-0.21%	0.08%	0.05%	0.1%	-0.01%	0.07%	0.05%	0.1%	0.04%
Medical Costs & Claims+	3.92B	3.35B	3.42B	3.62B	3.79B	3.8B	4.12B	4.72B	5.31B	4.98B
Medical Cost Ratio %	-	-	-	-	-	-	-	-	-	-
Gross Profit+	1.13B	616M	847.6M	849.7M	1.1B	1.02B	1.04B	716.3M	652.9M	1.24B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.03%	-0.46%	0.38%	0%	0.29%	-0.07%	0.02%	-0.31%	-0.09%	0.9%
Operating Expenses+	691.6M	550M	554.7M	567.2M	576.4M	577.6M	521.4M	572.3M	611.8M	699.9M
OpEx / Revenue %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization	30.2M	30.7M	30.1M	24.6M	21.6M	18.2M	16.9M	12.9M	6.3M	1.5M
Combined Ratio %	-	-	-	-	-	-	-	-	-	-
Operating Income+	439.4M	66M	292.9M	282.5M	522.1M	444.8M	521.3M	144M	41.1M	537.8M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.16%	-0.85%	3.44%	-0.04%	0.85%	-0.15%	0.17%	-0.72%	-0.71%	12.09%
EBITDA+	469.6M	96.7M	323M	307.1M	543.7M	463M	538.2M	156.9M	47.4M	539.3M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense	60.6M	51.4M	45.2M	45.1M	37.5M	37.1M	34M	34.1M	34.1M	34.1M
Non-Operating Income	-60.6M	-51.4M	-45.2M	-45.1M	-37.5M	-37.1M	-34M	-34.1M	-34.1M	-34.1M
Pretax Income+	439.4M	66M	292.9M	282.5M	522.1M	444.8M	521.3M	144M	41.1M	537.8M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	108.6M	-1M	76.8M	43.5M	93.1M	82.8M	101.3M	27.2M	7.6M	112.5M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	331.5M	155.1M	186.2M	391M	425.1M	358.7M	422.8M	116M	35.3M	426M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.18%	-0.53%	0.2%	1.1%	0.09%	-0.16%	0.18%	-0.73%	-0.7%	11.07%
EPS (Diluted)+	7.40	3.59	4.33	9.09	10.46	9.42	11.49	3.21	0.98	11.70
EPS Growth %	0.18%	-0.51%	0.21%	1.1%	0.15%	-0.1%	0.22%	-0.72%	-0.69%	10.94%
EPS (Basic)	7.71	3.63	4.38	9.24	11.07	9.51	11.79	3.21	0.98	11.85
Diluted Shares Outstanding	44.8M	43.2M	43M	43M	40.6M	38.1M	36.4M	36.1M	36.1M	36.4M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	13.78B	14.22B	15.47B	12.4B	12.49B	13.44B	14.25B	14B	14.61B	15.27B
Asset Growth %	0%	0.03%	0.09%	-0.2%	0.01%	0.08%	0.06%	-0.02%	0.04%	0.05%
Total Investment Assets+	7.56B	7.92B	6.33B	12.79B	8B	8.85B	8.39B	7.72B	425.5M	1.59B
Long-Term Investments	7.56B	7.92B	6.33B	6.63B	7.26B	8.05B	8.39B	7.72B	425.5M	0
Short-Term Investments	0	0	0	6.16B	6.69B	7.45B	0	0	0	1.59B
Total Current Assets+	4.37B	1.72B	297.9M	6.31B	0	0	3.61B	1.91B	2.02B	2.24B
Cash & Equivalents	338.8M	282.6M	376.4M	1.02B	215.7M	120.6M	230.9M	305M	316.1M	435.5M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	-1.65B	-3.7B	-9.98B	-10.79B	0	0	0	-1.59B
Goodwill & Intangibles+	186M	184.8M	192.6M	178.8M	178.8M	178.8M	178.8M	178.8M	178.8M	178.8M
Goodwill	186M	184.8M	192.6M	178.8M	178.8M	178.8M	178.8M	178.8M	178.8M	178.8M
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	0	0	0	0	0	0	0	0	0	0
Other Assets	0	-7.8B	1.86B	0	-7.44B	-8.23B	5.27B	-7.52B	0	0
Total Liabilities	10.94B	11.36B	12.47B	9.45B	9.57B	10.24B	11.11B	11.66B	12.15B	12.43B
Total Debt+	803.1M	786.4M	786.9M	777.9M	653.4M	780.8M	781.6M	782.4M	783.2M	784.1M
Net Debt	464.3M	503.8M	410.5M	-242.8M	437.7M	660.2M	550.7M	477.4M	467.1M	348.6M
Long-Term Debt	803.1M	786.4M	786.9M	777.9M	653.4M	780.8M	781.6M	782.4M	783.2M	722.3M
Short-Term Debt	0	0	0	0	0	0	0	0	0	61.8M
Total Current Liabilities+	930.1M	728M	344.8M	37.3M	0	0	55.1M	731.7M	6.09B	819.6M
Accounts Payable	205.2M	251.9M	51.5M	37.3M	53.4M	48.4M	55.1M	70.3M	64.3M	37.7M
Deferred Revenue	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	-724.9M	-251.9M	0	0	-681.1M	-735.9M	-907.7M	-70.3M	5.25B	-37.7M
Deferred Taxes	0	0	0	0	1000K	1000K	0	0	0	0
Other Liabilities	10.13B	9.85B	11.69B	8.67B	-705.2M	-878.1M	10.33B	10.16B	11.36B	10.89B
Total Equity+	2.84B	2.86B	3B	2.95B	2.92B	3.2B	3.14B	2.33B	2.47B	2.84B
Equity Growth %	0%	0%	0.05%	-0.01%	-0.01%	0.1%	-0.02%	-0.26%	0.06%	0.15%
Shareholders Equity	2.84B	2.86B	3B	2.95B	2.92B	3.2B	3.14B	2.33B	2.47B	2.84B
Minority Interest	0	0	0	0	0	0	0	0	0	0
Retained Earnings	1.8B	1.88B	1.98B	2.18B	2.41B	2.67B	2.98B	2.99B	2.91B	3.21B
Common Stock	600K	600K	600K	600K	600K	600K	600K	600K	600K	600K
Accumulated OCI	53.9M	62.8M	107.6M	-116.5M	152.6M	372.5M	122.2M	-701.5M	-517.2M	-456.3M
Return on Equity (ROE)	0.12%	0.05%	0.06%	0.13%	0.14%	0.12%	0.13%	0.04%	0.01%	0.16%
Return on Assets (ROA)	0.02%	0.01%	0.01%	0.03%	0.03%	0.03%	0.03%	0.01%	0%	0.03%
Equity / Assets	-	-	-	-	-	-	-	-	-	-
Debt / Equity	0.28x	0.28x	0.26x	0.26x	0.22x	0.24x	0.25x	0.34x	0.32x	0.28x
Book Value per Share	63.49	66.15	69.71	68.71	71.83	84.05	86.40	64.65	68.30	78.07
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	444.7M	743.4M	704.6M	551.3M	602.9M	707.6M	823.7M	722.3M	361.7M	806.4M
Operating CF Growth %	-0.21%	0.67%	-0.05%	-0.22%	0.09%	0.17%	0.16%	-0.12%	-0.5%	1.23%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	331.5M	155.1M	186.2M	391M	425.1M	358.7M	420M	116M	35.3M	426M
Depreciation & Amortization	30.2M	30.7M	30.1M	24.6M	21.6M	18.2M	16.9M	12.9M	6.3M	1.5M
Stock-Based Compensation	12.3M	12M	12.3M	13.4M	17.4M	20.1M	22.9M	29M	31.1M	31M
Deferred Taxes	53.1M	-13.2M	39.8M	-23.4M	12.5M	-23M	25M	-46.5M	-24.6M	-18.8M
Other Non-Cash Items	-36.1M	95.9M	-37.4M	-102.6M	-111.1M	-17.6M	-281.1M	49.6M	41.5M	145.8M
Working Capital Changes	53.7M	462.9M	473.6M	248.3M	237.4M	351.2M	620M	561.3M	272.1M	220.9M
Cash from Investing+	-171.5M	-495.4M	-506.3M	271.3M	-311.9M	-608.8M	-460.2M	-507.6M	-228.5M	-541.5M
Capital Expenditures	-19.5M	-15.7M	-18.6M	-13.1M	-13.3M	-14.9M	-8M	-17.8M	-11.9M	-10.2M
Acquisitions	44.3M	0	0	635.7M	34.7M	0	0	0	0	0
Purchase of Investments	-2.22B	-2.37B	-1.87B	-1.6B	-1.92B	-2.08B	-2.3B	-2.08B	-1.13B	-3.31B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	-1.1M	12.1M	-9.5M	0	0	0	0	0	0	-600K
Cash from Financing+	-301M	-300.8M	-111.7M	-171M	-1.1B	-193.9M	-253.2M	-140.6M	-122.1M	-145.5M
Dividends Paid	-74.2M	-80.4M	-86.8M	-94.3M	-386.2M	-99.5M	-102.2M	-108.9M	-117.2M	-124.1M
Share Repurchases	-127.3M	-105.6M	-37.2M	-57.7M	-563.6M	-212.8M	-162.6M	-30.8M	0	-26.7M
Stock Issued	0	0	0	0	0	0	0	0	0	0
Debt Issuance (Net)	-1000K	-1000K	0	-1000K	-1000K	1000K	0	0	0	0
Other Financing	14.8M	-10.1M	12.3M	-7.4M	1.6M	-2.2M	11.6M	-900K	-4.9M	5.3M
Net Change in Cash+	-34.5M	-56.2M	150.6M	722.8M	-805M	-95.1M	110.3M	74.1M	11.1M	119.4M
Exchange Rate Effect	-1000K	-1000K	1000K	-1000K	1000K	0	0	0	0	0
Cash at Beginning	373.3M	338.8M	147.3M	297.9M	1.02B	215.7M	120.6M	230.9M	305M	316.1M
Cash at End	338.8M	282.6M	297.9M	1.02B	215.7M	120.6M	230.9M	305M	316.1M	435.5M
Free Cash Flow+	418.9M	721.9M	686M	538.2M	589.6M	692.7M	815.7M	704.5M	349.8M	796.2M
FCF Growth %	-0.24%	0.72%	-0.05%	-0.22%	0.1%	0.17%	0.18%	-0.14%	-0.5%	1.28%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF per Share	9.35	16.71	15.95	12.52	14.52	18.18	22.41	19.52	9.69	21.87

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	91.3%	98.34%	93.14%	93.67%	89.32%	90.77%	89.9%	97.35%	99.31%	91.35%
Medical Cost Ratio	77.6%	84.47%	80.14%	80.97%	77.54%	78.78%	79.79%	86.82%	89.05%	80.09%
Return on Equity (ROE)	11.66%	5.44%	6.36%	13.14%	14.48%	11.73%	13.32%	4.23%	1.47%	16.05%
Return on Assets (ROA)	2.41%	1.11%	1.25%	2.81%	3.42%	2.77%	3.05%	0.82%	0.25%	2.85%
Equity / Assets	20.64%	20.09%	19.38%	23.83%	23.35%	23.82%	22.06%	16.68%	16.87%	18.6%
Book Value / Share	63.49	66.15	69.71	68.71	71.83	84.05	86.4	64.65	68.3	78.07
Debt / Equity	0.28x	0.28x	0.26x	0.26x	0.22x	0.24x	0.25x	0.34x	0.32x	0.28x
Revenue Growth	-0.38%	-21.45%	7.62%	4.64%	9.51%	-1.47%	7.08%	5.3%	9.77%	4.25%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Personal Lines	-	-	1.58B	1.71B	1.82B	1.84B	1.93B	2.11B	2.44B	2.56B
Personal Lines Growth	-	-	-	7.92%	6.70%	1.31%	4.63%	9.51%	15.59%	5.00%
Core Commercial Lines	-	-	-	-	-	-	-	1.95B	2.22B	2.32B
Core Commercial Lines Growth	-	-	-	-	-	-	-	-	13.65%	4.84%
Specialty Lines	-	-	-	-	-	-	-	1.19B	1.35B	1.41B
Specialty Lines Growth	-	-	-	-	-	-	-	-	13.68%	4.49%
Other Operating	-	-	-	-	-	-	-	-	-	12.4M
Other Operating Growth	-	-	-	-	-	-	-	-	-	-
Others	-	-	-	-	-	-	-	-	15.4M	-
Others Growth	-	-	-	-	-	-	-	-	-	-
Commercial Lines	-	-	2.4B	2.55B	2.65B	2.68B	2.84B	-	-	-
Commercial Lines Growth	-	-	-	6.20%	4.15%	1.10%	5.87%	-	-	-
All Others	-	-	-	-	26M	-	-	-	-	-
All Others Growth	-	-	-	-	-	-	-	-	-	-
Other Property And Casualty	-	-	-	14.2M	-	-	-	-	-	-
Other Property And Casualty Growth	-	-	-	-	-	-	-	-	-	-
Chaucer	1.05B	838.6M	853M	-	-	-	-	-	-	-
Chaucer Growth	-	-20.22%	1.72%	-	-	-	-	-	-	-
Property Liability And Casualty Insurance	3.65B	3.79B	-	-	-	-	-	-	-	-
Property Liability And Casualty Insurance Growth	-	3.72%	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

The Hanover Insurance Group, Inc. (THG) has a price-to-earnings (P/E) ratio of 14.5x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

The Hanover Insurance Group, Inc. (THG) grew revenue by 4.2% over the past year. Growth has been modest.

Yes, The Hanover Insurance Group, Inc. (THG) is profitable, generating $631.9M in net income for fiscal year 2024 (6.9% net margin).

Dividend & Returns

Yes, The Hanover Insurance Group, Inc. (THG) pays a dividend with a yield of 2.00%. This makes it attractive for income-focused investors.

The Hanover Insurance Group, Inc. (THG) has a return on equity (ROE) of 16.1%. This is reasonable for most industries.

Industry Metrics

The Hanover Insurance Group, Inc. (THG) has a combined ratio of 91.3%. A ratio below 100% indicates underwriting profitability.

US Stock Screener

...