-1.09%
-0.41%
3.84%
12.03%
16.68%
11.65%
11.15%
AI Spotlight on THG
Company Description
The 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.
Market Data
| Last Price | 154.03 |
| Change Percentage | -1.09% |
| Open | 154.96 |
| Previous Close | 155.72 |
| Market Cap ( Millions) | 5550 |
| Volume | 70777 |
| Year High | 166.13 |
| Year Low | 119.66 |
| M A 50 | 157.17 |
| M A 200 | 142.49 |
Financial Ratios
| FCF Yield | 12.18% |
| Dividend Yield | 2.24% |
| ROE | 14.05% |
| Debt / Equity | 27.24% |
| Net Debt / EBIDTA | 117.60% |
| Price To Book | 1.93 |
| Price Earnings Ratio | 15.15 |
| Price To FCF | 8.21 |
| Price To sales | 0.9 |
| EV / EBITDA | 19.47 |
News
- Jan -29 - The Hanover and its Employees Contribute Over $1.5 Million to Nonprofits Across the Country
- Jan -28 - The Hanover Insurance Group, Inc. to Present at the Bank of America Securities 2025 Financial Services Conference
- Jan -28 - Hanover Insurance Group (THG) Earnings Expected to Grow: Should You Buy?
- Jan -16 - The Hanover Recognized by Newsweek and the Human Rights Campaign Foundation
- Dec -19 - SHAREHOLDER ALERT: Purcell & Lefkowitz LLP Announces Shareholder Investigation of The Hanover Insurance Group, Inc. (NYSE: THG)
- Dec -19 - The Hanover Insurance Group, Inc. to Issue Fourth Quarter Financial Results on February 4
- Dec -18 - Valour Digital Securities Limited and The Hashgraph Group (THG) Expand Access to Hedera HBAR ETP with Euronext Listing
- Dec -05 - 17 Upcoming Dividend Increases, Including A King
- Dec -03 - Hanover Insurance Rewards Shareholders With 5.9% Dividend Hike
- Dec -02 - The Hanover Insurance Group, Inc. Increases Quarterly Dividend to $0.90 Per Common Share
- Nov -20 - THG Stock Up 34.4% YTD: Time to Add to Your Portfolio for Better Return?
- Oct -31 - The Hanover Insurance Group, Inc. (THG) Q3 2024 Earnings Call Transcript
- Oct -31 - Hanover Insurance (THG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
- Oct -30 - Hanover Insurance Group (THG) Beats Q3 Earnings Estimates
- Oct -30 - The Hanover Reports Excellent Third Quarter Net Income and Operating Income of $2.80 and $3.05 per Diluted Share, Respectively; Net and Operating Return on Equity of 15.0% and 14.4%, Respectively
- Oct -14 - The Best Financial Stocks to Buy
- Oct -09 - RLI Corp. and Hanover Insurance: Which P&C Insurer Has an Edge?
- Sep -29 - The Hanover Insurance: Q2 Improvement And Future Growth Indicators
- Sep -25 - Boohoo and THG Group shares have imploded: buy the dip?
- Sep -23 - The Hanover Insurance Group, Inc. to Issue Third Quarter Financial Results on October 30
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Personal Lines
Expected Growth : 3 %
What the company do ?
Personal Lines from The Hanover Insurance Group, Inc. offers home, auto, and umbrella insurance products to individuals and families, providing financial protection and peace of mind.
Why we expect these perspectives ?
The Hanover's Personal Lines segment growth is driven by increasing adoption of telematics-based insurance products, expansion into new states, and strategic partnerships with agents and brokers. Additionally, the company's focus on digital transformation and customer experience enhancements has improved retention rates and attracted new customers, contributing to the 3% growth.
Segment n°2 -> Core Commercial
Expected Growth : 2 %
What the company do ?
The Core Commercial from The Hanover Insurance Group, Inc. offers a comprehensive suite of insurance products and services tailored to meet the unique needs of small to mid-sized businesses.
Why we expect these perspectives ?
The 2% growth in Core Commercial from The Hanover Insurance Group, Inc. is driven by a combination of factors, including a strong economy, increased demand for commercial insurance products, and the company's strategic expansion into new markets and lines of business, such as cyber insurance and management liability.
Segment n°3 -> Specialty
Expected Growth : 4 %
What the company do ?
The Hanover Insurance Group, Inc.'s Specialty segment offers a range of specialty insurance products, including professional liability, management liability, and surety bonds.
Why we expect these perspectives ?
The Hanover's Specialty segment growth is driven by increasing demand for niche insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, data analytics, and risk management capabilities also contribute to its growth. Furthermore, the rising need for specialized insurance coverage in industries such as healthcare, technology, and financial services also fuels growth.
Segment n°4 -> Reconciling Items
Expected Growth : 1 %
What the company do ?
Reconciling Items from The Hanover Insurance Group, Inc. refers to the process of identifying and resolving discrepancies between internal financial records and external statements, ensuring accuracy and transparency in financial reporting.
Why we expect these perspectives ?
The Hanover Insurance Group, Inc.'s growth is driven by increasing premiums, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, improved underwriting practices, and effective risk management have contributed to its growth. Furthermore, a strong capital position and favorable regulatory environment have also supported the company's growth momentum.
Segment n°5 -> Other
Expected Growth : 2 %
What the company do ?
The Other segment from The Hanover Insurance Group, Inc. includes the company's non-core businesses, such as run-off operations and other miscellaneous investments.
Why we expect these perspectives ?
The Hanover Insurance Group, Inc.'s 'Other' segment growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and investments in data analytics are enhancing underwriting capabilities, leading to improved risk selection and pricing.
The Hanover Insurance Group, Inc. Products
| Product Range | What is it ? |
|---|---|
| Personal Lines | Insurance products for individuals and families, including auto, homeowners, umbrella, and specialty insurance |
| Commercial Lines | Insurance products for businesses, including workers' compensation, commercial auto, general liability, and property insurance |
| Specialty Insurance | Specialized insurance products for unique risks, including marine, aviation, and professional liability insurance |
| Workers' Compensation | Insurance products for employers to provide wage replacement and medical benefits to employees injured on the job |
| Management Liability | Insurance products for directors, officers, and organizations to protect against management-related risks |
| Professional Liability | Insurance products for professionals, including doctors, lawyers, and accountants, to protect against errors and omissions |
The Hanover Insurance Group, Inc.'s Porter Forces
Threat Of Substitutes
The Hanover Insurance Group, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the complexity and customization of insurance products.
Bargaining Power Of Customers
Individual customers have limited bargaining power due to the complexity of insurance products and the lack of price sensitivity.
Bargaining Power Of Suppliers
The Hanover Insurance Group, Inc. relies on a network of independent agents and brokers, which can exert some bargaining power, but the company's scale and diversification mitigate this risk.
Threat Of New Entrants
The insurance industry has high barriers to entry, including regulatory hurdles, capital requirements, and the need for established distribution networks, making it difficult for new entrants to compete with The Hanover Insurance Group, Inc.
Intensity Of Rivalry
The Hanover Insurance Group, Inc. operates in a highly competitive industry with many established players, leading to intense rivalry and pricing pressure.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 24.11% |
| Debt Cost | 5.34% |
| Equity Weight | 75.89% |
| Equity Cost | 7.32% |
| WACC | 6.84% |
| Leverage | 31.77% |
The Hanover Insurance Group, Inc. : Quality Control
The Hanover Insurance Group, Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RLI | RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, … |
| MKL | Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, the Asia Pacific, and the … |
| WRB | W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline … |
| MCY | Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella … |
| L | Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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RLI
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WR Berkley
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Mercury General
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Markel
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5
Hanover Insurance
A-Score
1-Year Total Return ->
6
