The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States.
Solid track record established dividend payer.
Share Price & News
How has Hanover Insurance Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AF4 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AF4 underperformed the German Insurance industry which returned 21.3% over the past year.
Return vs Market: AF4 exceeded the German Market which returned 8.3% over the past year.
Price Volatility Vs. Market
How volatile is Hanover Insurance Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Hanover Insurance Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AF4 (€123) is trading below our estimate of fair value (€150.2)
Significantly Below Fair Value: AF4 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AF4 is poor value based on its PE Ratio (12.7x) compared to the Insurance industry average (12.2x).
PE vs Market: AF4 is good value based on its PE Ratio (12.7x) compared to the German market (20.7x).
Price to Earnings Growth Ratio
PEG Ratio: AF4's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AF4 is overvalued based on its PB Ratio (1.8x) compared to the DE Insurance industry average (1.1x).
How is Hanover Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AF4's earnings are forecast to decline over the next 3 years (-10.8% per year).
Earnings vs Market: AF4's earnings are forecast to decline over the next 3 years (-10.8% per year).
High Growth Earnings: AF4's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AF4's revenue (2.4% per year) is forecast to grow slower than the German market (5.1% per year).
High Growth Revenue: AF4's revenue (2.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AF4's Return on Equity is forecast to be low in 3 years time (11.3%).
How has Hanover Insurance Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AF4 has high quality earnings.
Growing Profit Margin: AF4's current net profit margins (8.8%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: AF4's earnings have grown by 2.2% per year over the past 5 years.
Accelerating Growth: AF4's earnings growth over the past year (79.5%) exceeds its 5-year average (2.2% per year).
Earnings vs Industry: AF4 earnings growth over the past year (79.5%) exceeded the Insurance industry 7%.
Return on Equity
High ROE: AF4's Return on Equity (14.7%) is considered low.
Return on Assets
Return on Capital Employed
How is Hanover Insurance Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: AF4 has a low level of unsold assets or inventory.
Debt Coverage by Assets: AF4's debt is covered by short term assets (assets are 5.3x debt).
Financial Institutions Analysis
Asset Level: AF4's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AF4 has a sufficient allowance for bad loans.
Low Risk Liabilities: AF4 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AF4 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AF4 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AF4 has an appropriate level of bad loans.
What is Hanover Insurance Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AF4's dividend (1.94%) is higher than the bottom 25% of dividend payers in the German market (1.38%).
High Dividend: AF4's dividend (1.94%) is low compared to the top 25% of dividend payers in the German market (3.73%).
Stability and Growth of Payments
Stable Dividend: AF4's dividends per share have been stable in the past 10 years.
Growing Dividend: AF4's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.2%), AF4's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AF4's dividends in 3 years are forecast to be well covered by earnings (30.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jack Roche (55yo)
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 Com ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD4.17M) is about average for companies of similar size in the German market ($USD3.46M).
Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.
|Executive VP & CFO||3.3yrs||US$2.95m||0.021% $989.4k|
|Executive VP||19.9yrs||US$2.03m||0.074% $3.5m|
|Executive VP & President of Hanover Agency Markets||3yrs||US$1.59m||0.041% $1.9m|
|Executive VP & President of Specialty||2.7yrs||US$1.45m||0.013% $608.6k|
|CEO & Chief Underwriting Officer of Chaucer||3yrs||US$4.37m||0.0044% $208.2k|
|Executive VP||14.1yrs||no data||0.044% $2.1m|
|Senior VP||4.3yrs||no data||0.011% $538.4k|
|Vice President of Corporate Finance||10.8yrs||no data||no data|
|Executive VP & Chief Technology Innovation Officer||3yrs||no data||0.010% $485.7k|
Experienced Management: AF4's management team is considered experienced (3.1 years average tenure).
|Independent Director||16yrs||US$245.00k||0.068% $3.2m|
|Non-Executive Chairman of the Board||2.8yrs||US$370.00k||0.063% $3.0m|
|Independent Director||21.1yrs||US$246.00k||0.072% $3.4m|
|Independent Director||2.6yrs||US$266.00k||0.0090% $427.8k|
|Independent Director||11yrs||US$256.00k||0.031% $1.5m|
|Independent Director||5.3yrs||US$246.00k||0.034% $1.6m|
|Vice Chair||0yrs||US$260.00k||0.018% $862.3k|
|Independent Director||3.2yrs||US$245.00k||0.012% $548.8k|
|Independent Director||2yrs||US$245.00k||0.0065% $307.8k|
Experienced Board: AF4's board of directors are considered experienced (4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Hanover Insurance Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: The Hanover Insurance Group, Inc.
- Ticker: AF4
- Exchange: DB
- Founded: 1852
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$5.160b
- Listing Market Cap: US$4.743b
- Shares outstanding: 38.45m
- Website: https://www.hanover.com
Number of Employees
- The Hanover Insurance Group, Inc.
- 440 Lincoln Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|THG||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 1995|
|AF4||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1995|
|THGI34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REP 0.5 COM USD0.01||BR||BRL||May 2019|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 22:09|
|End of Day Share Price||2020/02/25 00:00|
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.