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Hanover Insurance Group

DB:AF4
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AF4
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The last earnings update was 77 days ago. More info.


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AF4 Share Price and Events
7 Day Returns
0.6%
DB:AF4
0.1%
DE Insurance
-0.6%
DE Market
1 Year Returns
7.9%
DB:AF4
18.8%
DE Insurance
-8.3%
DE Market
AF4 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hanover Insurance Group (AF4) 0.6% 0.2% 9.4% 7.9% 53.1% 151.4%
DE Insurance 0.1% 3.2% 2.2% 18.8% 61.6% 61.1%
DE Market -0.6% 1.8% -3.2% -8.3% 8.9% 10.6%
1 Year Return vs Industry and Market
  • AF4 underperformed the Insurance industry which returned 18.8% over the past year.
  • AF4 outperformed the Market in Germany which returned -8.3% over the past year.
Price Volatility
AF4
Industry
5yr Volatility vs Market

AF4 Value

 Is Hanover Insurance Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hanover Insurance Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hanover Insurance Group.

DB:AF4 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $75.42 * 11.8%
$8.90
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $75.42
Discount Rate (Cost of Equity) See below 5.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AF4
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.684 (1 + (1- 21%) (12.82%))
0.835
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.835 * 5.96%)
5.2%

Discounted Cash Flow Calculation for DB:AF4 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hanover Insurance Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:AF4 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.8% – 5.2%) * $75.42)
$4.97
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $4.97 / (5.2% - 0.23%)
$99.94
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $75.42 + $99.94
$175.36
DB:AF4 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AF4 represents 0.88649x of NYSE:THG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88649x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 175.36 x 0.88649
€155.45
Value per share (EUR) From above. €155.45
Current discount Discount to share price of €114.72
= -1 x (€114.72 - €155.45) / €155.45
26.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hanover Insurance Group is available for.
Intrinsic value
26%
Share price is €114.72 vs Future cash flow value of €155.45
Current Discount Checks
For Hanover Insurance Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hanover Insurance Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hanover Insurance Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hanover Insurance Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hanover Insurance Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AF4 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $7.42
NYSE:THG Share Price ** NYSE (2019-07-18) in USD $129.41
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.37x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hanover Insurance Group.

DB:AF4 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:THG Share Price ÷ EPS (both in USD)

= 129.41 ÷ 7.42

17.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hanover Insurance Group is overvalued based on earnings compared to the DE Insurance industry average.
  • Hanover Insurance Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Hanover Insurance Group's expected growth come at a high price?
Raw Data
DB:AF4 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
4.4%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

DB:AF4 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.44x ÷ 4.4%

3.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hanover Insurance Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hanover Insurance Group's assets?
Raw Data
DB:AF4 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $71.92
NYSE:THG Share Price * NYSE (2019-07-18) in USD $129.41
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 569 Publicly-Listed Companies 1.75x
DB:AF4 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:THG Share Price ÷ Book Value per Share (both in USD)

= 129.41 ÷ 71.92

1.8x

* Primary Listing of Hanover Insurance Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hanover Insurance Group is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Hanover Insurance Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Hanover Insurance Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AF4 Future Performance

 How is Hanover Insurance Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hanover Insurance Group expected to grow at an attractive rate?
  • Hanover Insurance Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Hanover Insurance Group's earnings growth is positive but not above the Germany market average.
  • Hanover Insurance Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AF4 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AF4 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 4.4%
DB:AF4 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AF4 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AF4 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,079 358 1
2020-12-31 4,794 344 4
2019-12-31 4,567 333 4
DB:AF4 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,622 677 311
2018-12-31 4,494 627 239
2018-09-30 4,245 613 292
2018-06-30 4,164 651 247
2018-03-31 4,099 695 221
2017-12-31 4,268 761 216
2017-09-30 4,430 743 132
2017-06-30 4,586 756 161
2017-03-31 4,979 716 123
2016-12-31 4,054 757 67
2016-09-30 4,896 644 246
2016-06-30 4,888 570 235

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hanover Insurance Group's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Hanover Insurance Group's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AF4 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Hanover Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AF4 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 9.80 9.80 9.80 1.00
2020-12-31 8.91 9.05 8.55 5.00
2019-12-31 8.38 9.30 7.91 5.00
DB:AF4 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 7.42
2018-12-31 5.64
2018-09-30 6.83
2018-06-30 5.79
2018-03-31 5.21
2017-12-31 5.08
2017-09-30 3.10
2017-06-30 3.78
2017-03-31 2.89
2016-12-31 1.57
2016-09-30 5.73
2016-06-30 5.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hanover Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hanover Insurance Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hanover Insurance Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AF4 Past Performance

  How has Hanover Insurance Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hanover Insurance Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hanover Insurance Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Hanover Insurance Group's 1-year earnings growth exceeds its 5-year average (40.5% vs -4.9%)
  • Hanover Insurance Group's earnings growth has exceeded the DE Insurance industry average in the past year (40.5% vs 9.4%).
Earnings and Revenue History
Hanover Insurance Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hanover Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AF4 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,622.30 311.10
2018-12-31 4,494.30 239.00
2018-09-30 4,244.60 291.50
2018-06-30 4,163.90 247.00
2018-03-31 4,098.50 221.40
2017-12-31 4,267.90 216.10
2017-09-30 4,430.40 132.00
2017-06-30 4,585.70 160.80
2017-03-31 4,979.10 123.20
2016-12-31 4,053.90 67.00
2016-09-30 4,895.50 246.10
2016-06-30 4,887.80 235.00
2016-03-31 4,962.90 354.00
2015-12-31 5,034.00 330.80
2015-09-30 5,114.40 343.10
2015-06-30 5,146.50 320.90
2015-03-31 5,122.40 282.50
2014-12-31 5,067.60 282.30
2014-09-30 5,011.50 257.10
2014-06-30 4,947.70 263.40
2014-03-31 4,857.30 234.00
2013-12-31 4,793.70 245.70
2013-09-30 4,749.40 125.50
2013-06-30 4,705.30 105.10
2013-03-31 4,650.10 61.80
2012-12-31 4,590.70 46.10
2012-09-30 4,542.30 147.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hanover Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hanover Insurance Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • Hanover Insurance Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hanover Insurance Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hanover Insurance Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AF4 Health

 How is Hanover Insurance Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hanover Insurance Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hanover Insurance Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hanover Insurance Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hanover Insurance Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hanover Insurance Group Company Filings, last reported 3 months ago.

DB:AF4 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,927.00 653.00 168.50
2018-12-31 2,954.70 777.90 1,020.70
2018-09-30 2,982.40 777.60 117.90
2018-06-30 2,939.80 787.10 237.80
2018-03-31 2,913.10 820.00 252.70
2017-12-31 2,997.70 786.90 297.90
2017-09-30 2,972.00 786.80 227.20
2017-06-30 2,972.50 786.70 317.80
2017-03-31 2,913.50 786.60 257.00
2016-12-31 2,857.50 786.40 282.60
2016-09-30 3,045.70 797.90 315.90
2016-06-30 3,009.70 797.80 361.60
2016-03-31 2,957.00 803.40 406.70
2015-12-31 2,844.40 803.10 338.80
2015-09-30 2,877.50 812.80 385.10
2015-06-30 2,908.50 835.10 477.60
2015-03-31 2,899.90 841.50 403.90
2014-12-31 2,844.00 903.50 373.30
2014-09-30 2,771.90 903.40 509.60
2014-06-30 2,795.10 903.90 606.20
2014-03-31 2,681.10 903.90 476.30
2013-12-31 2,594.50 903.90 486.20
2013-09-30 2,544.20 938.70 602.20
2013-06-30 2,495.70 938.60 690.40
2013-03-31 2,624.00 978.10 691.00
2012-12-31 2,595.40 849.40 564.80
2012-09-30 2,699.40 917.50 462.00
  • Hanover Insurance Group's level of debt (22.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (33.7% vs 22.3% today).
  • Debt is well covered by operating cash flow (103.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).
X
Financial health checks
We assess Hanover Insurance Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hanover Insurance Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AF4 Dividends

 What is Hanover Insurance Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.85%
Current annual income from Hanover Insurance Group dividends. Estimated to be 1.96% next year.
If you bought €2,000 of Hanover Insurance Group shares you are expected to receive €37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hanover Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Hanover Insurance Group's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AF4 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AF4 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.85 1.00
2020-12-31 2.56 3.00
2019-12-31 2.43 3.00
DB:AF4 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 2.400 1.910
2019-03-05 2.400 2.046
2018-12-07 2.400 2.113
2018-09-04 2.160 1.885
2018-05-15 2.160 1.759
2018-02-27 2.160 1.851
2017-12-05 2.160 1.978
2017-08-15 2.000 2.005
2017-05-16 2.000 2.251
2017-02-21 2.000 2.262
2016-12-06 2.000 2.269
2016-08-23 1.840 2.333
2016-05-24 1.840 2.222
2016-02-23 1.840 2.123
2015-12-07 1.840 2.283
2015-08-25 1.640 2.013
2015-05-19 1.640 2.150
2015-02-27 1.640 2.311
2014-12-05 1.640 2.317
2014-08-19 1.480 2.289
2014-05-20 1.480 2.389
2014-02-19 1.480 2.489
2013-12-06 1.480 2.542
2013-08-20 1.320 2.336
2013-05-14 1.320 2.580
2013-02-26 1.320 2.800
2012-12-07 1.320 3.288
2012-08-23 1.200 3.267
2012-05-15 1.200 3.223
2012-02-28 1.200 2.990
2011-11-15 1.200 3.296
2011-08-23 1.100 3.083
2011-05-17 1.100 2.973
2011-03-01 1.100 2.481
2010-11-22 1.000 2.130
2010-08-31 1.000 2.182
2010-05-11 1.000 2.279
2010-02-26 1.000 2.290
2009-10-20 0.750 1.750
2008-10-24 0.450 1.224

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hanover Insurance Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Hanover Insurance Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hanover Insurance Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hanover Insurance Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AF4 Management

 What is the CEO of Hanover Insurance Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Roche
COMPENSATION $4,168,271
AGE 55
TENURE AS CEO 1.7 years
CEO Bio

Mr. John Conner Roche, also known as Jack, has been President and Chief Executive Officer at Hanover Insurance Group Inc. since November 2017 and serves as its Director. Mr. Roche has been President of Commercial Lines at The Hanover Insurance Group, Inc. since August 22, 2016 and served as its Executive Vice President since May 2013 until February 28, 2017. He serves as President, Chief Executive Officer and Director at Citizens Insurance Company of America. Mr. Roche served as President of Business Insurance and Field Operations at The Hanover Insurance Group, Inc. from December 2009 to August 22, 2016. He served as Senior Vice President of The Hanover Insurance Group, Inc. from 2009 to 2013 and also as its Vice President since 2006. He served as Vice President of Field Operations Marketing & Distribution at The Hanover Insurance Group, Inc. from December 2007 to 2009. He served as Vice President of Underwriting and Product Management for Commercial Lines of The Hanover Insurance Group, Inc. from 2006 to 2007. He has more than two decades of experience in the property and casualty insurance industry, his management experience leading significant business units at St. Paul Travelers and his detailed understanding. From 1994 to 2006, he served in a variety of positions at St. Paul Travelers Companies, Inc., as Vice President of Commercial Accounts. Mr. Roche served in a variety of underwriting and management positions at Fireman's Fund Insurance Company and Atlantic Mutual Insurance Company. He has been a Director at NCCI Holdings, Inc. since May 2014.

CEO Compensation
  • Jack's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jack's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Hanover Insurance Group management team in years:

2.5
Average Tenure
55
Average Age
  • The tenure for the Hanover Insurance Group management team is about average.
Management Team

Jack Roche

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
1.7 yrs

Jeff Farber

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
54
TENURE
2.7 yrs

J. Huber

TITLE
Executive VP
COMPENSATION
$2M
AGE
64
TENURE
19.3 yrs

Richard Lavey

TITLE
Executive VP & President of Hanover Agency Markets
COMPENSATION
$2M
AGE
51
TENURE
2.4 yrs

Bryan Salvatore

TITLE
Executive VP & President of Specialty
COMPENSATION
$1M
AGE
54
TENURE
2.1 yrs

John Fowle

TITLE
CEO & Chief Underwriting Officer of Chaucer
COMPENSATION
$4M
AGE
49
TENURE
2.4 yrs

Ann Tripp

TITLE
Executive VP
AGE
60
TENURE
13.5 yrs

Warren Barnes

TITLE
Senior VP
AGE
57
TENURE
3.8 yrs

JR Reilly

TITLE
Vice President of Corporate Finance
TENURE
10.2 yrs

Mark Berthiaume

TITLE
Executive VP & Chief Technology Innovation Officer
AGE
62
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Hanover Insurance Group board of directors in years:

3.4
Average Tenure
63.5
Average Age
  • The tenure for the Hanover Insurance Group board of directors is about average.
Board of Directors

P. Condron

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$370K
AGE
74
TENURE
2.2 yrs

Jack Roche

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
1.7 yrs

Joseph Ramrath

TITLE
Director
COMPENSATION
$245K
AGE
62
TENURE
15.4 yrs

Cynthia Egan

TITLE
Director
COMPENSATION
$260K
AGE
64
TENURE
4.2 yrs

Michael Price

TITLE
Director
COMPENSATION
$266K
AGE
53
TENURE
2 yrs

Wendell Knox

TITLE
Director
COMPENSATION
$246K
AGE
71
TENURE
20.5 yrs

Tee Taggart

TITLE
Director
COMPENSATION
$256K
AGE
71
TENURE
10.4 yrs

Dan Henry

TITLE
Director
COMPENSATION
$246K
AGE
69
TENURE
4.7 yrs

Jane Carlin

TITLE
Director
COMPENSATION
$245K
AGE
63
TENURE
2.6 yrs

Kevin Bradicich

TITLE
Director
COMPENSATION
$245K
AGE
62
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
11. Feb 19 Sell Mark Welzenbach Individual 07. Feb 19 07. Feb 19 -2,216 €101.48 €-224,881
05. Feb 19 Sell Mark Welzenbach Individual 01. Feb 19 01. Feb 19 -7,402 €98.45 €-728,740
X
Management checks
We assess Hanover Insurance Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hanover Insurance Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AF4 News

Simply Wall St News

AF4 Company Info

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 in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers’ compensation, umbrella, healthcare, mono-line general liability, and miscellaneous commercial property insurance products; and other commercial coverages, including inland marine, specialty program business, management and professional liability, surety, and specialty property. The Personal Lines segment provides personal automobile and homeowner’s coverages, as well as other personal coverages, such as personal inland marine, umbrella, fire, personal watercraft, earthquake, and other miscellaneous coverages. The Other segment offers investment management and advisory services to institutions, pension funds, and other organizations. The company markets its products and services through independent agents and brokers. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

Details
Name: The Hanover Insurance Group, Inc.
AF4
Exchange: DB
Founded: 1852
$4,538,948,234
39,471,390
Website: http://www.hanover.com
Address: The Hanover Insurance Group, Inc.
440 Lincoln Street,
Worcester,
Massachusetts, 01653,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE THG Common Stock New York Stock Exchange US USD 11. Oct 1995
DB AF4 Common Stock Deutsche Boerse AG DE EUR 11. Oct 1995
BOVESPA THGI34 BDR EACH 1 REP 0.5 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
4,200
Hanover Insurance Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 21:36
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.