The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. More Details
No risks detected for THG from our risk checks.
Excellent balance sheet 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: THG has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: THG underperformed the US Insurance industry which returned -20% over the past year.
Return vs Market: THG underperformed the US Market which returned 12% 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
2 months ago | Simply Wall StWhat Makes The Hanover Insurance Group, Inc. (NYSE:THG) A Great Dividend Stock?
3 months ago | Simply Wall StShould You Be Tempted To Sell The Hanover Insurance Group, Inc. (NYSE:THG) Because Of Its P/E Ratio?
3 months ago | Simply Wall StWhy You Might Be Interested In The Hanover Insurance Group, Inc. (NYSE:THG) For Its Upcoming Dividend
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: THG ($90.59) is trading below our estimate of fair value ($119.38)
Significantly Below Fair Value: THG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: THG is good value based on its PE Ratio (11.8x) compared to the US Insurance industry average (13.4x).
PE vs Market: THG is good value based on its PE Ratio (11.8x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: THG is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: THG is overvalued based on its PB Ratio (1.1x) compared to the US Insurance industry average (0.8x).
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: THG's forecast earnings growth (10.5% per year) is above the savings rate (2.2%).
Earnings vs Market: THG's earnings (10.5% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: THG's earnings are forecast to grow, but not significantly.
Revenue vs Market: THG's revenue (4.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: THG's revenue (4.8% 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 (10.2%).
How has Hanover Insurance Group performed over the past 5 years?
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 (-3.3%).
Return on Equity
High ROE: THG's Return on Equity (9.7%) is considered low.
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 ($727.7M).
Debt to Equity History and Analysis
Debt Level: THG's debt to equity ratio (21.3%) is considered satisfactory.
Reducing Debt: THG's debt to equity ratio has reduced from 28.7% to 21.3% over the past 5 years.
Debt Coverage: THG's debt is well covered by operating cash flow (103.9%).
Interest Coverage: THG's interest payments on its debt are well covered by EBIT (10.4x coverage).
What is Hanover Insurance Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: THG's dividend (2.87%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: THG's dividend (2.87%) is low compared to the top 25% of dividend payers in the US market (4.99%).
Stability and Growth of Payments
Stable Dividend: THG's dividends per share have been stable in the past 10 years.
Growing Dividend: THG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.2%), THG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: THG's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jack Roche (56 yo)
Mr. John Conner Roche, also known as Jack, has been President and Chief Executive Officer at Hanover Insurance Group Inc. since November 2017 and serves as its Director. Mr. Roche has been President of Com ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD4.98M) is about average for companies of similar size in the US market ($USD5.74M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||3.83yrs||US$2.96m||0.042% |
|Executive VP & President of Hanover Agency Markets||3.58yrs||US$1.72m||0.046% |
|Executive VP & President of Specialty||3.25yrs||US$1.60m||0.020% |
|Executive VP||14.67yrs||no data||0.045% |
|Senior VP & Chief Accounting Officer||4.92yrs||no data||0.011% |
|Vice President of Corporate Finance||11.33yrs||no data||no data|
|Executive VP||3.58yrs||no data||0.017% |
|Vice President of Investor Relations & Financial Planning||11.08yrs||no data||no data|
|Executive VP||0.42yr||no data||no data|
|Executive VP & Chief Human Resources Officer||0.92yr||no data||0.00049% |
|Chief Financial Officer of Property & Casualty||no data||no data||no data|
Experienced Management: THG's management team is considered experienced (3.6 years average tenure).
|Independent Director||16.58yrs||US$256.00k||0.073% |
|Chairman & Independent Presiding Director||3.33yrs||US$370.00k||0.064% |
|Independent Director||21.67yrs||US$246.00k||0.073% |
|Independent Director||2yrs||US$245.00k||0.0050% |
|Independent Director||0.58yr||US$49.92k||0.0077% |
|Director||no data||no data||0.0024% |
|Independent Director||11.58yrs||US$250.00k||0.034% |
|Independent Director||5.83yrs||US$246.00k||0.038% |
|Independent Vice Chair||0.58yr||US$260.00k||0.022% |
|Independent Director||3.75yrs||US$250.00k||no data|
|Independent Director||2.58yrs||US$241.00k||0.011% |
Experienced Board: THG's board of directors are considered experienced (3.3 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: THG
- Exchange: NYSE
- Founded: 1852
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$3.417b
- Shares outstanding: 37.72m
- 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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/26 06:46|
|End of Day Share Price||2020/09/25 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.