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THG: Dividend Hike And Share Repurchases Will Shape A Balanced Outlook

THG: Expanding Life Sciences Coverage Will Drive Future Outperformance

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THG
AnalystConsensusTarget
Not Invested
Published 30 Aug 2024

Update shared on 16 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
20.1%
7D
-0.8%

Analysts have adjusted their price target on Hanover Insurance Group slightly higher to approximately $200.13 per share, reflecting modest refinements to long term assumptions around discount rates, revenue growth, profit margins, and valuation multiples.

What's in the News

  • The board approved an increase in the quarterly dividend to $0.95 per share, payable December 26, 2025, to shareholders of record on December 12, 2025 (Key Developments).
  • The company launched Hanover Specialty Industrial Property (HSIP) Advantage, a new admitted property product tailored for small to mid sized high hazard industrial businesses, effective for new business on October 1, 2025, and for renewals on February 1, 2026 (Key Developments).
  • HSIP Advantage introduces modular coverage options, including expanded building and business personal property coverage, business income and extra expense coverage, and broadened endorsements for complex, sprinklered property risks (Key Developments).
  • From July 1, 2025 to October 27, 2025, the company repurchased 323,000 shares for $55 million, bringing total buybacks under the December 30, 2018 authorization to 8,622,511 shares, or 22.22 percent of shares, for $1,093.29 million (Key Developments).

Valuation Changes

  • Fair Value Estimate remained unchanged at approximately $200.13 per share, indicating no meaningful revision to the intrinsic value assessment.
  • Discount Rate edged down slightly from about 6.96 percent to 6.96 percent, reflecting a marginal adjustment to the cost of capital assumptions.
  • Revenue Growth was effectively unchanged at roughly 4.41 percent, with only immaterial numerical refinements to the long term outlook.
  • Net Profit Margin was essentially flat at about 8.61 percent, with rounding level changes that do not alter the profitability narrative.
  • Future P/E Multiple was steady at approximately 13.06 times, indicating no shift in forward valuation expectations.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.