Hanover Insurance Group THG
United StatesFinancial Services · Insurance - Property & CasualtyUSD
237.00 USD (+8.9%)
8 analysts
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Hanover Insurance Group is a property and casualty insurer offering auto, home, and business insurance, primarily through independent agents in the United States.
Key points
from its scores- ✓Favourable backdrop8.5
- ✓Good share-price trend7.8
- ✓Very solid balance sheet7.6
- !Modest dividend5.1
- !Average business quality5.8
AI analysis
bottom line, main risk, context and newsHold or buy on pullbacks, given the solid financial profile and reasonable valuation, but watch the regulatory evolution of the sector.
Hanover Insurance shows solid financial health with an ROE of 21.88% and an operating margin of 14.75%, supported by earnings growth of 24.90% and an attractive valuation (P/E 10.42). The positive momentum of 29.74% reinforces the upward trend, although the dividend is modest.
The main risk is regulatory pressure on insurance rates in the U.S., which could limit the ability to adjust prices and compress margins in an environment of rising claims costs.
Context and risks
Hanover Insurance operates in the property and casualty insurance sector in the U.S., where state regulation of rates and solvency oversight are intense. Although there are no known specific litigations or investigations, the sector's regulatory environment may pressure margins and pricing flexibility, justifying a moderate adjustment.
Is Hanover Insurance Group stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades in line with the Financial Services median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.4 | 13.7 | −24% |
| Price / book | 2.1 | 1.9 | +12% |
| Price / sales | 1.1 | 3.5 | −68% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.7 out of 10 (median for Financial Services: 5.2).
Average analyst target: 237.00 USD, +8.9% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 10.4
- Forward P/E
- 11.1
- Price / book
- 2.1
- Price / sales
- 1.1
- PEG
- 0.34
- Market cap
- 7.6B USD
- Enterprise value
- 8.2B USD
Profitability
- ROE
- 21.9%
- ROA
- 3.9%
- ROIC (approx.)
- 22.1%
- Gross margin
- 25.2%
- Operating margin
- 14.8%
- Net margin
- 11.2%
- Free cash flow
- 1.1B USD
- FCF yield
- 14.3%
Solvency
- Total debt
- 844.0M USD
- Net debt
- 577.9M USD
- Cash
- 266.1M USD
- Debt / equity
- 22.98
- Current ratio
- 0.36
- Quick ratio
- 0.18
Growth
- Revenue growth
- +4.3%
- Earnings growth
- +24.9%
- EPS (TTM)
- 20.89 USD
- EPS (forward)
- 19.64 USD
Dividend
- Dividend yield
- 1.7%
- Payout
- 18.0%
Risk and market
- Beta
- 0.25
- Analyst consensus
- Hold (8)
- Target price
- 237.00 USD
- 52-week range
- 166.54 – 236.07
Recent news
All THG news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Hanover Insurance Group
Is Hanover Insurance Group stock cheap or expensive?
On P/E and Price / book, it trades in line with the Financial Services median (within 15%). Valuation score: 6.7 out of 10 (median for Financial Services: 5.2). Average analyst target: 237.00 USD, +8.9% versus the price. This is not investment advice.
What score does Hanover Insurance Group get on MeridIAn Screener?
It scores 6.9 out of 10, rank 292 of 2,130 (better than 86% of the companies analysed). Its strongest category is Risk & Context (8.5) and its weakest, Dividend (5.1). Analysis of 08/10/2026.
What is Hanover Insurance Group's P/E ratio?
Its P/E is 10.4: the share price equals 10.4 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 11.1.
How much is Hanover Insurance Group worth on the stock market?
Its market capitalisation is 7.6B USD.
Does Hanover Insurance Group pay a dividend?
Yes: its dividend yield is 1.75% and it pays out 18% of its earnings.
How has Hanover Insurance Group stock performed over the last year?
It has risen 25.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 166.54 and 236.07 USD. Past performance does not guarantee future results.
What do analysts think of Hanover Insurance Group?
8 analysts cover it; their average recommendation is “Hold” and their average target is 237.00 USD (+8.9% versus the price). It is an estimate, not market data.