NYSE:THG

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Hanover Insurance Group

Executive Summary

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

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: THG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

THG

3.0%

US Insurance

0.4%

US Market


1 Year Return

-19.4%

THG

-9.5%

US Insurance

17.8%

US Market

Return vs Industry: THG underperformed the US Insurance industry which returned -9.5% over the past year.

Return vs Market: THG underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

THGIndustryMarket
7 Day5.1%3.0%0.4%
30 Day12.3%8.2%6.1%
90 Day2.8%3.4%8.9%
1 Year-15.9%-19.4%-7.0%-9.5%20.5%17.8%
3 Year16.7%3.2%3.0%-4.4%42.3%32.9%
5 Year39.6%18.0%39.5%21.9%84.2%63.4%

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

Valuation

Is Hanover Insurance Group undervalued compared to its fair value and its price relative to the market?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THG ($101.73) is trading below our estimate of fair value ($119.46)

Significantly Below Fair Value: THG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: THG is good value based on its PE Ratio (13.2x) compared to the US Insurance industry average (14.3x).

PE vs Market: THG is good value based on its PE Ratio (13.2x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: THG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: THG is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THG's forecast earnings growth (11% per year) is above the savings rate (2.2%).

Earnings vs Market: THG's earnings (11% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: THG's earnings are forecast to grow, but not significantly.

Revenue vs Market: THG's revenue (4.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: THG's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THG's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

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

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THG has high quality earnings.

Growing Profit Margin: THG's current net profit margins (6.3%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: THG's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: THG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: THG had negative earnings growth (-5%) over the past year, making it difficult to compare to the Insurance industry average (-3.2%).


Return on Equity

High ROE: THG's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Hanover Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: THG's short term assets ($3.4B) do not cover its short term liabilities ($9.0B).

Long Term Liabilities: THG's short term assets ($3.4B) exceed its long term liabilities ($727.7M).


Debt to Equity History and Analysis

Debt Level: THG's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: THG's debt to equity ratio has reduced from 28.7% to 21.3% over the past 5 years.

Debt Coverage: THG's debt is well covered by operating cash flow (103.9%).

Interest Coverage: THG's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: THG's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: THG's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: THG's dividends per share have been stable in the past 10 years.

Growing Dividend: THG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.2%), THG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: THG's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Jack Roche (56 yo)

2.92yrs

Tenure

US$4,979,777

Compensation

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. Prior to that, he served as Executi ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD4.98M) is about average for companies of similar size in the US market ($USD5.60M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Roche
President2.92yrsUS$4.98m0.10%
$ 4.0m
Jeffrey Farber
Executive VP & CFO3.92yrsUS$2.96m0.042%
$ 1.6m
Richard Lavey
Executive VP & President of Hanover Agency Markets3.67yrsUS$1.72m0.046%
$ 1.8m
Bryan Salvatore
Executive VP & President of Specialty3.33yrsUS$1.60m0.020%
$ 776.6k
Ann Tripp
Executive VP14.75yrsno data0.045%
$ 1.7m
Warren Barnes
Senior VP & Chief Accounting Officer5yrsno data0.011%
$ 434.0k
John Reilly
Vice President of Corporate Finance11.42yrsno datano data
Mark Berthiaume
Executive VP3.67yrsno data0.017%
$ 665.0k
Oksana Lukasheva
Vice President of Investor Relations & Financial Planning11.17yrsno datano data
Dennis Kerrigan
Executive VP0.50yrno datano data
Denise Tinger Lowsley
Executive VP & Chief Human Resources Officer1yrno data0.00049%
$ 18.8k
Ellen Rizzo
Chief Financial Officer of Property & Casualtyno datano datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: THG's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Roche
President2.92yrsUS$4.98m0.10%
$ 4.0m
Joseph Ramrath
Independent Director16.67yrsUS$256.00k0.073%
$ 2.8m
P. Condron
Chairman & Independent Presiding Director3.42yrsUS$370.00k0.064%
$ 2.4m
Wendell Knox
Independent Director21.75yrsUS$246.00k0.073%
$ 2.8m
Kathleen Lane
Independent Director2.08yrsUS$245.00k0.0050%
$ 191.5k
Martin Hughes
Independent Director0.67yrUS$49.92k0.0077%
$ 296.6k
Theodore Bunting
Director0.083yrno data0.0024%
$ 93.6k
Harriett Taggart
Independent Director11.67yrsUS$250.00k0.034%
$ 1.3m
Daniel Henry
Independent Director5.92yrsUS$246.00k0.038%
$ 1.5m
Cynthia Egan
Independent Vice Chair0.67yrUS$260.00k0.022%
$ 861.4k
Jane Carlin
Independent Director3.83yrsUS$250.00kno data
Kevin Bradicich
Independent Director2.67yrsUS$241.00k0.011%
$ 404.8k

3.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: THG's board of directors are considered experienced (3.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Hanover Insurance Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Hanover Insurance Group, Inc.
  • Ticker: THG
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$3.837b
  • Shares outstanding: 37.72m
  • Website: https://www.hanover.com

Number of Employees


Location

  • The Hanover Insurance Group, Inc.
  • 440 Lincoln Street
  • Worcester
  • Massachusetts
  • 1653
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1995
AF4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995
THGI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.01BRBRLMay 2019

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:20
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.