Hanover Insurance Group Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Hanover Insurance Group (NYSE:THG) Full Year 2024 Results

Key Financial Results

• Revenue: US$6.24b (up 4.1% from FY 2023).
• Net income: US$425.3m (up by US$391.8m from FY 2023).
• Profit margin: 6.8% (up from 0.6% in FY 2023). The increase in margin was primarily driven by higher revenue.
• EPS: US$11.85 (up from US$0.94 in FY 2023).

THG Profitability Indicators

• Combined ratio: 94.8% (down from 103.5% in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Hanover Insurance Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 12%.

The primary driver behind last 12 months revenue was the Personal Lines segment contributing a total revenue of US$2.56b (41% of total revenue). Notably, cost of sales worth US$4.98b amounted to 80% of total revenue thereby underscoring the impact on earnings.Explore how THG's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Insurance industry in the US.

Performance of the American Insurance industry.

The company's shares are up 7.8% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We have a graphic representation of Hanover Insurance Group's balance sheet and an in-depth analysis of the company's financial position.

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