It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Hanover Insurance Group (THG - Free Report) The Hanover Insurance Group, Inc. is a U.S. property and casualty insurance holding company that sells through independent agents and brokers. The company is organized as a Delaware corporation (1995) and traces its roots to 1852. Its principal executive offices are in Worcester, MA. Operations include The Hanover Insurance Company and Citizens Insurance Company of America, among other subsidiaries.
THG is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. THG has a Momentum Style Score of B, and shares are up 1.1% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.79 to $20.17 per share. THG boasts an average earnings surprise of +27.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, THG should be on investors' short list.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Hanover Insurance Group (THG - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Hanover Insurance Group currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for THG that show why this insurance company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For THG, shares are up 0.31% over the past week while the Zacks Insurance - Property and Casualty industry is up 0.15% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 1.16% compares favorably with the industry's 0.76% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Hanover Insurance Group have increased 15.19% over the past quarter, and have gained 28.51% in the last year. In comparison, the S&P 500 has only moved 4.72% and 20.24%, respectively.
Investors should also take note of THG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now THG is averaging 256,932 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with THG.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost THG's consensus estimate, increasing from $18.38 to $20.17 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that THG is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Hanover Insurance Group on your short list.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 26.82. Over the past 52 weeks, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.34.
Investors could also keep in mind United Fire Group (UFCS - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, United Fire Group holds a P/B ratio of 0.94 and its industry's price-to-book ratio is 1.43. UFCS's P/B has been as high as 1.02, as low as 0.62, with a median of 0.87 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group and United Fire Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG and UFCS feels like a great value stock at the moment.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today its board of directors has declared a quarterly dividend of $0.95 per share on the issued and outstanding common stock of the company, payable September 25, 2026, to shareholders of record at the close of business on September 11, 2026.
Forward-Looking Statements
Statements regarding quarterly or future dividends, whether regular or special, payable to the company's shareholders, which may be subject to future increases, decreases, or elimination, as determined by The Hanover's board of directors, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance, including but not limited to, growth, earnings improvement, returns, future dividend payments, or the amount of such payments. Investors are directed to consider the risks and uncertainties in the company's business that may cause actual results to differ and/or affect the board's decision to declare dividends in the future, including those risks which are discussed in readily available documents, such as the company's annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other documents filed by The Hanover with the Securities and Exchange Commission and which are also available on hanover.com under "Investors."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Key Takeaways The Hanover's net premiums written increased 4.4% in Q2 2026, supported by disciplined pricing.Personal Lines' combined ratio improved 290 bps to 81.9%, driven by better homeowners and auto results.Net investment income rose 13.4% to $119.6 million, aided by higher earned yields and operating cash flows. The Hanover Insurance Group, Inc. (THG - Free Report) is trading at 2.16X trailing 12-month book value, well above the industry's average of 1.43X. However, the valuation remains far below broader market yardsticks, including the Zacks Finance sector at 4.43x and the S&P 500 at 7.21x. The stock currently carries a Value Score of A.
The premium valuation reflects investors' willingness to pay more for THG's capital. The higher multiple raises the question of whether the company's strong underwriting performance, sustained profitability and disciplined capital management are sufficient to justify it.
Image Source: Zacks Investment Research
Shares of some other insurers, like Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Mercury General Corporation (MCY - Free Report) , are also trading at a premium to the industry average.
THG’s Strong Return on EquityReturn on equity (ROE) for the trailing 12 months was 21.7%, significantly above the industry's 7.5%. Moreover, ROE has remained above 20% over the past three to five years, reflecting the company's consistent ability to generate returns from shareholders' funds.
THG’s Price PerformanceShares of Hanover Insurance have gained 31.4% in the past year compared with the industry’s growth of 2%. Disciplined underwriting, effective pricing, Specialty expansion and higher investment income have supported the stock's performance.
Shares of other insurers like ACGL, AFG and MCY have gained 11.3%, 7.6% and 36.5%, respectively, over the past year.
1-Year Price Performance: THG, ACGL, AFG, MCY & Industry
Image Source: Zacks Investment Research
THG’s Growth ProjectionThe Zacks Consensus Estimate for THG’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.7%. The consensus estimate for revenues is pegged at $6.95 billion, implying a year-over-year increase of 4.6%.
The consensus estimate for 2027 revenues indicates an increase of 4.5%, while EPS decreased 0.6%, from the corresponding 2026 estimates.
Optimistic Analyst Sentiment on THGFive analysts covering the stock have raised earnings estimates for 2026 and 2027, respectively, with no downward revision over the past 30 days. The consensus estimate for 2026 and 2027 earnings has moved 9.7% and 6.7% north, respectively, over the same time period.
Image Source: Zacks Investment Research
Key Points to Note for THGThe Hanover's pricing continues to exceed loss-cost trends across both Commercial and Personal Lines, supporting durable underwriting margins despite softening property market conditions. Management expects pricing to remain favorable in 2026, particularly in Commercial and Personal auto liability, while commercial-line retention remains stable. Net premiums written increased 4.4% in the second quarter of 2026, reflecting the company's disciplined approach to profitable growth. This continued pricing discipline should help sustain underwriting margins even if premium growth remains measured.
Specialty continued to deliver attractive underwriting margins in the second quarter of 2026. Management expects overall Specialty growth to ramp up, with marine expected to return to upper single-digit growth for the remainder of 2026. Robust underwriting performance across property, management liability, surety, marine and E&S continues to support earnings. Management remains willing to sacrifice near-term premium growth to preserve long-term profitability.
Personal Lines is benefiting from earned pricing and margin initiatives. The combined ratio improved 290 basis points to 81.9% in the second quarter of 2026, driven by better homeowners and auto results. Net premiums written rose 2.6%, while higher pricing, retention and a growing Prestige mix supported portfolio quality. As geographic diversification and full-account strategies scale, the segment has room to contribute steadier earnings and support consolidated results through the cycle.
Net investment income increased 13.4% year over year to $119.6 million in the second quarter of 2026, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%. The improvement in yields has strengthened the company's investment returns and provided an additional source of earnings growth beyond underwriting operations.
Ongoing investments in AI and digital capabilities are enhancing underwriting efficiency, risk selection, claims handling and quoting speed. AI-enabled underwriting, automated risk scoring and claims triage are further improving operational execution.
THG continues to generate strong capital and remains committed to enhancing shareholder value through a balanced capital deployment strategy that includes regular dividend payments and ongoing share repurchases. Book value per share increased 3.5% sequentially to $105.40. It has about $660 million under the company’s authorization.
ConclusionTHG is positioned to benefit from pricing discipline, Specialty strength, improving Personal Lines performance, ongoing investments in artificial intelligence and higher investment income. Its sustained ROE above 20%, solid underwriting execution and disciplined capital deployment provide support for its premium valuation.
A VGM Score of B instils confidence. The time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today’s Zacks #1 Rank stocks here.
It has been about a month since the last earnings report for Hanover Insurance Group (THG - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hanover Insurance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
THG Q2 Earnings Beat on Personal Lines Gains, Revenues Miss
The Hanover Insurance Group reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.
Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%.
THG Underwriting Results ImproveThe consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter.
The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion.
The Hanover's Core Commercial Growth AcceleratesCore Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.
Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier.
THG Specialty Underwriting Margins NarrowSpecialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.
Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million.
The Hanover's Personal Lines Results StrengthenPersonal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.
Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable.
THG Investment Income and Capital Position AdvanceNet investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.
The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 7.98% due to these changes.
VGM ScoresCurrently, Hanover Insurance has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hanover Insurance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerHanover Insurance belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Progressive (PGR - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Progressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago.
Progressive is expected to post earnings of $3.98 per share for the current quarter, representing a year-over-year change of -1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Progressive. Also, the stock has a VGM Score of B.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, August 28:
The Hanover Insurance Group, Inc. (THG - Free Report) : This provider of various property and casualty insurance products and services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.9% over the last 60 days.
Hanover Insurance has a price-to-earnings ratio (P/E) of 11.32, compared with 54.00 for the industry. The company possesses a Value Score of A.
StoneX Group Inc. (SNEX - Free Report) : This global financial services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days.
StoneX has a price-to-earnings ratio (P/E) of 15.92, compared with 22.85 for the S&P 500. The company possesses a Value Score of B.
Century Communities, Inc. (CCS - Free Report) : This home builder carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.6% over the last 60 days.
Century Communities has a price-to-earnings ratio (P/E) of 14.26, compared with 22.85 for the S&P 500. The company possesses a Value Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Great Lakes Advisors LLC bought a new stake in shares of The Hanover Insurance Group, Inc. (NYSE:THG – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 2,861 shares of the insurance provider’s stock, valued at approximately $613,000.
A number of other hedge funds also recently modified their holdings of the business. BlackRock Inc. acquired a new position in The Hanover Insurance Group during the second quarter valued at $756,471,000. Alliancebernstein L.P. lifted its stake in The Hanover Insurance Group by 36.1% in the 2nd quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider’s stock worth $217,505,000 after acquiring an additional 339,896 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in The Hanover Insurance Group by 16.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 970,177 shares of the insurance provider’s stock worth $168,179,000 after acquiring an additional 136,998 shares during the period. AQR Capital Management LLC boosted its position in The Hanover Insurance Group by 24.9% during the 4th quarter. AQR Capital Management LLC now owns 953,781 shares of the insurance provider’s stock worth $174,322,000 after acquiring an additional 190,350 shares during the period. Finally, First Trust Advisors LP boosted its position in The Hanover Insurance Group by 3.2% during the 1st quarter. First Trust Advisors LP now owns 827,320 shares of the insurance provider’s stock worth $143,416,000 after acquiring an additional 25,945 shares during the period. Hedge funds and other institutional investors own 86.61% of the company’s stock.
Insider Buying and Selling at The Hanover Insurance Group In related news, Director Jane D. Carlin sold 1,000 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $231.50, for a total value of $231,500.00. Following the transaction, the director directly owned 2,270 shares in the company, valued at approximately $525,505. This trade represents a 30.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Dennis Francis Kerrigan sold 2,104 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $222.41, for a total transaction of $467,950.64. Following the transaction, the executive vice president directly owned 12,003 shares of the company’s stock, valued at approximately $2,669,587.23. This represents a 14.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 9,655 shares of company stock valued at $2,145,846. 2.80% of the stock is owned by insiders.
Analyst Ratings Changes A number of equities analysts have recently weighed in on THG shares. Keefe, Bruyette & Woods upped their target price on The Hanover Insurance Group from $220.00 to $222.00 and gave the company a “market perform” rating in a report on Thursday, August 6th. Oppenheimer raised their price target on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Citizens Jmp boosted their price objective on shares of The Hanover Insurance Group from $225.00 to $240.00 and gave the company a “market outperform” rating in a research report on Wednesday, July 29th. Weiss Ratings upgraded shares of The Hanover Insurance Group from a “buy (a-)” rating to a “buy (a)” rating in a research note on Thursday, July 30th. Finally, Royal Bank Of Canada increased their target price on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $225.71. Get Our Latest Stock Analysis on THG
The Hanover Insurance Group Stock Performance Shares of NYSE THG opened at $223.23 on Monday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.38 and a current ratio of 0.38. The firm has a market cap of $7.77 billion, a price-to-earnings ratio of 10.66 and a beta of 0.27. The business’s 50-day simple moving average is $217.00 and its 200-day simple moving average is $193.50. The Hanover Insurance Group, Inc. has a 52 week low of $166.54 and a 52 week high of $236.07.
The Hanover Insurance Group (NYSE:THG – Get Free Report) last posted its earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share for the quarter, topping the consensus estimate of $3.84 by $1.47. The firm had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The company’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the previous year, the company earned $4.35 EPS. As a group, equities research analysts expect that The Hanover Insurance Group, Inc. will post 20.17 earnings per share for the current fiscal year.
The Hanover Insurance Group announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 13th that allows the company to buyback $700.00 million in shares. This buyback authorization allows the insurance provider to reacquire up to 10.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.
The Hanover Insurance Group Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group’s payout ratio is presently 18.14%.
(Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.86, while its industry has an average P/E of 26.71. Over the past year, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.32.
These are only a few of the key metrics included in The Hanover Insurance Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, THG looks like an impressive value stock at the moment.
Investors generally consider a stock's 52-week high a good criterion for an entry or exit point. Stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculation is not completely baseless, not all stocks hitting a 52-week high are necessarily overpriced.
Investors may lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Envista (NVST - Free Report) , Reliance, Inc. (RS - Free Report) , The Hanover Insurance Group (THG - Free Report) and Lenovo Group (LNVGY - Free Report) are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to determine whether there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach this level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions, which encouraged investors to bet on these stocks, could keep them motivated if there are no tangible negatives. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces.
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings and sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .80: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0: This ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed: The lower, the better.
P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
One-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank =1: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 5: This parameter will help screen stocks that are trading at $5 or higher.
Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our four picks out of the 21 stocks that made it through the screen:
Envista Holdings is well-positioned to deliver sustained near-term momentum, supported by strong fundamentals and a notably upgraded financial outlook. Management raised full-year 2026 guidance in August, lifting core sales growth to 3.5-4.5%, adjusted EBITDA growth to 11-14%, and adjusted EPS to $1.50-$1.55. Both reporting segments — Specialty Products & Technologies and Equipment & Consumables — delivered positive core growth across all major geographies. The Envista Business System continues driving disciplined margin expansion, with adjusted EBITDA margin at 14.7%, up 230 basis points year-on-year. Q2 2026 free cash flow reached $105 million, with approximately $283 million in remaining share repurchase capacity. An Investor Day, announced in late July 2026 and scheduled for Sept. 17, further underscores management's confidence in communicating its forward growth strategy.
The stock has lost 5.1% in the past six months. It has a trailing four-quarter earnings surprise of 19.41%, on average.
Reliance, Inc. is well-positioned to sustain earnings momentum in the second half of 2026, supported by several key fundamental tailwinds. The U.S. border wall contract, awarded to subsidiary AMI Metals earlier this year, continues delivering above-expectation contributions, with third-quarter 2026 shipments expected to add approximately 60 cents per share to earnings. Management's third-quarter guidance calls for non-GAAP EPS of $6.40–$6.60, indicating year-over-year growth of 76–81%. End-market demand is broadening across data centers, defense, commercial aerospace, and semiconductors. Extending mill lead times and tightening inventories reinforce near-term pricing power. Net debt/EBITDA of just 0.9X supports continued stockholder returns, including a $1.25 quarterly dividend declared July 17, 2026, payable Aug. 28, 2026, with $529 million still available under its repurchase program.
The stock has returned 20.6% in the past six-month period. It delivered a trailing four-quarter earnings surprise of 3.15%, on average.
The Hanover Insurance Group's fundamental earnings engine continues to strengthen with disciplined underwriting delivering a combined ratio of 91.2% in the second quarter of 2026 — 85.5% excluding catastrophes — and net investment income rising 13.4% on higher earned yields. Management guidance points to Personal Lines policy-in-force growth turning sequentially positive by year-end, with renewal pricing remaining above long-term loss cost trends. Core Commercial net premiums grew 7.2%, while Specialty retains further room for acceleration. The July 2026 CEO succession announcement, with internal veteran Dick Lavey named CEO-elect, ensures strategic continuity. A Sept. 17 Investor Day, where management will outline its five-year strategic and financial plan, marks a meaningful near-term catalyst. Ongoing capital return — including an active $700 million repurchase program — underscores management's confidence in durable earnings power.
This stock has surged 25.5% over the past six months. It has a trailing four-quarter negative earnings surprise of 27.33%, on average.
Lenovo's Hybrid AI strategy is gaining meaningful traction as enterprise demand accelerates. The Infrastructure Solutions Group's AI server pipeline has expanded to $54 billion — up 157% quarter-on-quarter — with the company now ranked #2 globally in x86 server revenues. AI-related revenues account for 35% of total Group revenues, up 60% year over year, demonstrating deepening business model transformation. SSG's AI services revenue is growing at triple-digit rates, with operating margins reaching a record 24.2%. R&D spending is up 30% year over year, reinforcing its innovation pipeline. Global AI PC market share climbed to 25.1%, underpinned by the recently expanded North Carolina manufacturing facility, adding meaningful server capacity. July's FIFA World Cup AI deployments across all 48 teams further validate Lenovo's enterprise AI execution at scale.
This stock has gained 216% in the past six months. It has a trailing four-quarter earnings surprise of 84.83%, on average.
Assenagon Asset Management S.A. bought a new stake in The Hanover Insurance Group, Inc. (NYSE:THG – Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 34,438 shares of the insurance provider’s stock, valued at approximately $7,374,000. Assenagon Asset Management S.A. owned approximately 0.10% of The Hanover Insurance Group as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors have also made changes to their positions in the company. Millennium Management LLC raised its stake in shares of The Hanover Insurance Group by 61.0% in the first quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider’s stock worth $15,371,000 after acquiring an additional 33,495 shares during the last quarter. NewEdge Advisors LLC raised its position in The Hanover Insurance Group by 1,568.9% in the 1st quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider’s stock worth $131,000 after purchasing an additional 706 shares during the last quarter. Goldman Sachs Group Inc. raised its position in The Hanover Insurance Group by 21.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider’s stock worth $38,052,000 after purchasing an additional 38,905 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in The Hanover Insurance Group by 6.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider’s stock worth $22,445,000 after buying an additional 7,712 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in The Hanover Insurance Group by 7.7% during the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider’s stock worth $48,155,000 after buying an additional 20,294 shares in the last quarter. 86.61% of the stock is owned by institutional investors.
The Hanover Insurance Group Stock Performance Shares of The Hanover Insurance Group stock opened at $222.31 on Wednesday. The firm has a fifty day moving average of $212.22 and a two-hundred day moving average of $190.65. The stock has a market capitalization of $7.74 billion, a price-to-earnings ratio of 10.61 and a beta of 0.27. The Hanover Insurance Group, Inc. has a 52 week low of $165.50 and a 52 week high of $236.07. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.38 and a current ratio of 0.38.
The Hanover Insurance Group (NYSE:THG – Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share for the quarter, beating analysts’ consensus estimates of $3.84 by $1.47. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The company had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the prior year, the business posted $4.35 EPS. The firm’s quarterly revenue was up 4.6% on a year-over-year basis. As a group, equities research analysts predict that The Hanover Insurance Group, Inc. will post 20.15 EPS for the current year.
The Hanover Insurance Group announced that its board has approved a share buyback plan on Wednesday, May 13th that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the insurance provider to buy up to 10.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.
The Hanover Insurance Group Announces Dividend The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group’s payout ratio is presently 18.14%.
Insider Activity at The Hanover Insurance Group In related news, Director Francisco Aristeguieta sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the transaction, the director owned 4,053 shares in the company, valued at approximately $791,834.61. The trade was a 19.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jane D. Carlin sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $231.50, for a total transaction of $231,500.00. Following the completion of the sale, the director directly owned 2,270 shares of the company’s stock, valued at $525,505. The trade was a 30.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 26,046 shares of company stock worth $5,095,138. 2.80% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades Several equities research analysts have recently commented on THG shares. Morgan Stanley lifted their target price on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an “equal weight” rating in a research note on Wednesday, July 8th. Oppenheimer upped their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. Weiss Ratings upgraded The Hanover Insurance Group from a “buy (a-)” rating to a “buy (a)” rating in a report on Thursday, July 30th. Royal Bank Of Canada lifted their price objective on The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 30th. Finally, Zacks Research raised The Hanover Insurance Group from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, The Hanover Insurance Group presently has an average rating of “Moderate Buy” and a consensus target price of $223.57.
Read Our Latest Report on THG
The Hanover Insurance Group Company Profile (Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Hanover Insurance Group (THG - Free Report) The Hanover Insurance Group, Inc. is a U.S. property and casualty insurance holding company that sells through independent agents and brokers. The company is organized as a Delaware corporation (1995) and traces its roots to 1852. Its principal executive offices are in Worcester, MA. Operations include The Hanover Insurance Company and Citizens Insurance Company of America, among other subsidiaries.
THG is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. THG has a Momentum Style Score of B, and shares are up 7.1% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.79 to $20.15 per share. THG boasts an average earnings surprise of +27.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, THG should be on investors' short list.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Hanover Insurance Group (THG - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Hanover Insurance Group currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if THG is a promising momentum pick, let's examine some Momentum Style elements to see if this insurance company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For THG, shares are up 6.66% over the past week while the Zacks Insurance - Property and Casualty industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.39% compares favorably with the industry's 0.28% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Hanover Insurance Group have risen 20.28%, and are up 33.22% in the last year. On the other hand, the S&P 500 has only moved 7.68% and 23.46%, respectively.
Investors should also pay attention to THG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. THG is currently averaging 348,418 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with THG.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost THG's consensus estimate, increasing from $18.36 to $19.45 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that THG is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Hanover Insurance Group on your short list.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 27.76. THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.35.
Finally, our model also underscores that THG has a P/CF ratio of 11.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.81. Within the past 12 months, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
These are just a handful of the figures considered in The Hanover Insurance Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THG is an impressive value stock right now.
A strong stock as of late has been Hanover Insurance Group (THG - Free Report) . Shares have been marching higher, with the stock up 7.2% over the past month. The stock hit a new 52-week high of $235.16 in the previous session. Hanover Insurance has gained 27.1% since the start of the year compared to the 5.6% gain for the Zacks Finance sector and the 4.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2026, Hanover Insurance reported EPS of $5.31 versus consensus estimate of $3.88.
For the current fiscal year, Hanover Insurance is expected to post earnings of $18.38 per share on $6.95 in revenues. This represents a -3.72% change in EPS on a 4.67% change in revenues. For the next fiscal year, the company is expected to earn $18.37 per share on $7.27 in revenues. This represents a year-over-year change of -0.05% and 4.64%, respectively.
Valuation MetricsHanover Insurance may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.3X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 10.7X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Hanover Insurance currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hanover Insurance passes the test. Thus, it seems as though Hanover Insurance shares could have a bit more room to run in the near term.
How Does THG Stack Up to the Competition?Shares of THG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is UNIVERSAL INSURANCE HOLDINGS INC (UVE - Free Report) . UVE has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. UNIVERSAL INSURANCE HOLDINGS INC beat our consensus estimate by 28.67%, and for the current fiscal year, UVE is expected to post earnings of $4.85 per share on revenue of $1.6 billion.
Shares of UNIVERSAL INSURANCE HOLDINGS INC have gained 6.6% over the past month, and currently trade at a forward P/E of 9.28X and a P/CF of 6.74X.
The Insurance - Property and Casualty industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for THG and UVE, even beyond their own solid fundamental situation.
The Hanover Insurance Group NYSE: THG reported record second-quarter operating performance, citing improved underwriting margins, accelerating premium growth and higher investment income across its diversified insurance portfolio.
President and Chief Executive Officer Jack Roche said the company generated operating earnings of $5.31 per diluted share and an operating return on equity of about 20%. Net written premiums increased 4.6%, led by Core Commercial and Specialty lines, while Personal Lines continued to produce what Roche described as strong margins and improving business momentum.
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“Disciplined underwriting and targeted growth can coexist,” Roche said, pointing to portfolio refinements, investments in risk selection and operating capabilities, and a focus on markets with attractive expected returns.
Combined Ratio Improves as Reserve Development Adds Support Chief Financial Officer Jeff Farber said Hanover posted a combined ratio of 91.2% for the quarter, improving 1.3 percentage points from a year earlier. The combined ratio excluding catastrophe losses was 85.5%, while the current accident-year loss ratio excluding catastrophes was 55.8%.
Catastrophe losses accounted for 5.7 points of the combined ratio, including 0.8 points of favorable prior-year catastrophe development. Farber said catastrophe losses came in below the company’s modeled expectations despite frequent catastrophe activity in its operating regions.
The company also reported $21.5 million of favorable prior-year reserve development excluding catastrophes, with favorable development in all three operating segments:
Specialty generated $10.8 million of favorable development, or 3 points, across multiple coverages. Personal Lines produced $10.1 million of favorable development, or 1.5 points, primarily from Homeowners and, to a lesser extent, Personal Auto property coverages. Core Commercial generated $0.6 million of favorable development. Farber said the company’s expense ratio was 31%, modestly above expectations because of higher variable compensation for agents in Personal Lines and employee incentive costs tied to better-than-expected underwriting results.
Personal Lines Margins Benefit From Pricing and Lower Frequency Personal Lines recorded a current accident-year combined ratio excluding catastrophes of 81.9%, a 2.9-point improvement from the prior-year quarter. The improvement reflected earned pricing and what Farber called benign frequency trends.
Homeowners generated an ex-catastrophe current accident-year loss ratio of 43.7%, improving 7.4 points from a year earlier. Farber cited earned pricing, favorable attritional loss frequency and lower large and weather-related losses. He also said deductible changes have contributed to fewer small claims in catastrophe and non-catastrophe results.
Personal Auto’s ex-catastrophe current accident-year loss ratio was 64.7%, improving 1.5 points year over year, aided by favorable frequency across multiple coverages, particularly collision.
Personal Lines net written premiums increased 2.6%, matching first-quarter growth. The company said prior actions to manage concentrations have reduced policies in force on a year-over-year basis, though policies in force were roughly flat sequentially. Hanover expects sequential policies-in-force growth by the end of 2026.
Second-quarter renewal price increases were 7.1% in auto and 10.9% in home, while umbrella pricing rose about 19%. Roche said the company continues to shift toward higher-value customers through its Prestige offering. In response to an analyst question, Specialty Lines President Bryan Salvatore defined Prestige business as homes with $750,000 to approximately $3 million of Coverage A replacement cost and said the company is targeting $350 million of that business.
Hanover added about 100 new Personal Lines distribution points year to date, with 75% in targeted diversification states, according to Roche.
Commercial and Specialty Growth Accelerates Core Commercial net written premiums rose 7.2%, up from 4.3% in the first quarter. Small Commercial grew 6%, supported by stable retention of approximately 86%, favorable renewal and new-business pricing, and expanded use of automated underwriting capabilities.
Roche said the company expanded no-touch submission flow through its TAP Sales platform and remains on track for a full-country rollout of its TAP Sales workers’ compensation product this year.
Middle Market premiums increased 9.4%; excluding several non-recurring or timing items, growth was approximately 7%, compared with 1.5% in the first quarter. Roche said Hanover’s focus on smaller accounts and the lower end of the Middle Market provides less exposure to broad property-market softening.
Core Commercial’s current accident-year combined ratio excluding catastrophes was 91.2%. Its ex-catastrophe loss ratio of 58.7% was 2.2 points above the prior-year quarter, which Farber attributed to unusually low large property losses in the 2025 period and prudently increased liability loss selections in 2026.
Specialty net written premiums increased 4.4%, accelerating from the first quarter. The segment’s current accident-year combined ratio excluding catastrophes was 88.6%, and its ex-catastrophe loss ratio was 51.6%.
Roche said growth was strongest in professional and executive lines, management liability and Surety. Hanover Specialty Industrial production was more subdued because of its greater exposure to softening property-market conditions. The company also cited activity in Marine and excess-and-surplus lines, where it said it is deploying capacity selectively.
The company highlighted technology investments including an artificial intelligence-driven E&S tool called Triage Pro, which it said helps underwriters prioritize attractive submissions, and new Surety workbench tools intended to streamline workflows and improve underwriting insights.
Reinsurance, Investments and Capital Deployment Hanover renewed its property reinsurance treaties effective July 1, maintaining or enhancing its prior structures, according to Farber. The company issued a new catastrophe bond with expanded coverage, increasing its size to $150 million after investor demand allowed the company to reduce pricing guidance and issue at the low end of the revised range.
The catastrophe occurrence program exhausts at $2.05 billion across covered perils, while maintaining a $200 million retention. Farber said reinsurance costs declined substantially on a risk-adjusted basis, and the company expanded its property per-risk limit by $25 million.
Net investment income increased 13.4%, driven by asset growth and higher fixed-income reinvestment yields. Fixed-income portfolio investment income rose 16.3% from the prior-year quarter. About 88% of invested assets were held in cash and investment-grade fixed income, and the fixed-maturity portfolio had a weighted average rating of A+, Farber said.
Book value per share increased 3.5% sequentially to $105.40. Hanover repurchased approximately 291,000 shares for $55 million during the quarter and announced a new $700 million share repurchase authorization. Through July 24, it had repurchased about 827,000 shares year to date at an average price of $180.
Farber said first-half results were running “a couple of points better” than the path contemplated in the company’s original combined-ratio guidance, though Hanover did not update its annual guidance. The company expects a 6.9% catastrophe load in the third quarter.
Roche also discussed his planned retirement after more than nine years as CEO. He will remain in the role through year-end, with Chief Operating Officer Dick Lavey set to become CEO in January. Lavey said the company remains focused on executing its existing strategy and intends to provide additional details on its longer-term plans at its Sept. 17 investor day.
About The Hanover Insurance Group (NYSE:THG)The Hanover Insurance Group, Inc NYSE: THG is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers' compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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The Hanover Insurance Group, Inc. (NYSE:THG – Get Free Report)’s stock price reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $228.05 and last traded at $228.5550, with a volume of 21611 shares trading hands. The stock had previously closed at $224.15.
The insurance provider reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.88 by $1.43. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.95%. The firm had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the previous year, the firm posted $4.35 EPS. The firm’s quarterly revenue was up 4.6% on a year-over-year basis.
The Hanover Insurance Group Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 12th were issued a $0.95 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.80 annualized dividend and a yield of 1.6%. The Hanover Insurance Group’s dividend payout ratio is currently 19.12%.
The Hanover Insurance Group announced that its Board of Directors has initiated a share repurchase plan on Wednesday, May 13th that authorizes the company to repurchase $700.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to reacquire up to 10.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
Key The Hanover Insurance Group News Here are the key news stories impacting The Hanover Insurance Group this week:
Positive Sentiment: Record earnings beat expectations: THG reported second-quarter operating earnings of $5.31 per diluted share, well above the consensus estimate of $3.84–$3.88 and up from $4.35 a year earlier. Net income reached $191.6 million, while revenue increased 4.6% year over year to $1.73 billion. The Hanover second-quarter results Positive Sentiment: Improved underwriting and lower catastrophe impact: The company’s combined ratio improved to 91.2%, or 85.5% excluding catastrophe losses. Catastrophe losses totaled $91.8 million, while the loss and loss-adjustment expense ratio improved 1.7 points from the prior-year quarter. Positive Sentiment: Personal Lines led profitability gains: Personal Lines operating profit nearly doubled, and its combined ratio fell to 88.9%. Renewal pricing also remained supportive, rising 8.7% in Personal Lines, 7.8% in Core Commercial and 3.6% in Specialty. Net investment income increased 13.4% to $119.6 million. The Hanover Insurance: Better Margins Justify A Premium Valuation Positive Sentiment: Analyst confidence strengthened: Citizens JMP raised its price target from $225 to $240 and maintained a “Market Outperform” rating, suggesting continued confidence in THG’s earnings momentum and margin improvement. Neutral Sentiment: Valuation reflects optimism: THG trades at approximately 2.2 times book value and 10.45 times earnings. The stronger margins may justify a premium, but the valuation leaves less room for error if catastrophe losses increase. Analysts Set New Price Targets Several analysts recently issued reports on THG shares. Citigroup reissued an “outperform” rating on shares of The Hanover Insurance Group in a report on Friday, July 10th. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $220.00 target price (up from $211.00) on shares of The Hanover Insurance Group in a research note on Wednesday, July 8th. Weiss Ratings upgraded shares of The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Friday, May 22nd. Royal Bank Of Canada raised their price target on shares of The Hanover Insurance Group from $195.00 to $215.00 and gave the company a “sector perform” rating in a research note on Monday, July 13th. Finally, BMO Capital Markets downgraded The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and boosted their price objective for the stock from $194.00 to $203.00 in a research report on Tuesday, May 19th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $220.43.
Get Our Latest Stock Analysis on THG
Insider Buying and Selling at The Hanover Insurance Group In other news, EVP Dennis Francis Kerrigan sold 6,262 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the completion of the sale, the executive vice president owned 11,988 shares in the company, valued at $2,313,564.12. This represents a 34.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO John C. Roche sold 8,358 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the completion of the sale, the chief executive officer directly owned 141,011 shares of the company’s stock, valued at $27,319,471.14. The trade was a 5.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 29,508 shares of company stock valued at $5,704,651. 2.80% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On The Hanover Insurance Group A number of institutional investors and hedge funds have recently modified their holdings of THG. Millennium Management LLC boosted its stake in shares of The Hanover Insurance Group by 61.0% during the 1st quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider’s stock worth $15,371,000 after acquiring an additional 33,495 shares in the last quarter. NewEdge Advisors LLC raised its position in shares of The Hanover Insurance Group by 1,568.9% during the first quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider’s stock worth $131,000 after purchasing an additional 706 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of The Hanover Insurance Group by 21.6% during the first quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider’s stock valued at $38,052,000 after purchasing an additional 38,905 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of The Hanover Insurance Group by 6.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider’s stock valued at $22,445,000 after purchasing an additional 7,712 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of The Hanover Insurance Group by 7.7% in the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider’s stock valued at $48,155,000 after purchasing an additional 20,294 shares during the period. Institutional investors and hedge funds own 86.61% of the company’s stock.
The Hanover Insurance Group Price Performance The stock has a 50-day moving average of $205.43 and a two-hundred day moving average of $186.97. The firm has a market cap of $8.15 billion, a price-to-earnings ratio of 11.11 and a beta of 0.28. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22.
About The Hanover Insurance Group (Get Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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SummaryThe Hanover Insurance Group demonstrates strengthened profitability, driven by robust personal lines margin growth and improved risk underwriting.THG's Q2 2026 combined ratio improved to 91.2%, with personal lines segment operating profit nearly doubling and combined ratio dropping to 88.9%.Current valuation shows a 2.2x P/B and 10.45x P/E, reflecting optimism but leaving limited margin for error if catastrophic losses rise.I maintain a positive view on THG, with future share price growth hinging on sustaining a low combined ratio rather than revenue expansion. Thomas Barwick/DigitalVision via Getty Images
Introduction In my view, the personal lines margin growth allows for further THG's profitability strengthening
The Hanover Insurance Group, Inc. (THG) is a U.S. property and casualty insurance company, operating through independent agents and brokers. The
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The Hanover Insurance Group, Inc. (THG) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Oksana Lukasheva - Senior Vice President of Corporate Finance
John "Jack" C. Roche - President, CEO & Director
Jeffrey Farber - Executive VP & CFO
Richard Lavey - Executive VP & COO
Conference Call Participants
Michael Phillips - Oppenheimer & Co. Inc., Research Division
Daniel Cohen - BMO Capital Markets Equity Research
Jon Paul Newsome - Piper Sandler & Co., Research Division
Riley Sandom - RBC Capital Markets, Research Division
Presentation
Operator
Good day, and welcome to the Hanover Insurance Group's Second Quarter Earnings Conference Call. My name is Chris, and I will be your operator for today's call. [Operator Instructions] Please note that today's event is being recorded.
I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.
Oksana Lukasheva
Senior Vice President of Corporate Finance
Thank you, operator. Good morning, and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; and Jeff Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Dick Lavey, our Chief Operating Officer and CEO elect; and Bryan Salvatore, President of Specialty Lines.
Before I turn the call over to Jack, let me note that our earnings press release financial supplement and a complete slide presentation for today's call are available in the Investors section of our website at hanover.com. After the presentation, we will answer questions in the Q&A session. Our prepared remarks and responses to your questions today, other than statements of historical fact, include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.
These statements can relate to, among other things, our outlook guidance, profitability, growth, strategy, capital management, the implementation
Key Takeaways THG's Q2 operating EPS rose 22.1% to $5.31, beating estimates by 36.9%.Personal Lines operating income surged to $104.9M as the combined ratio improved to 88.9%.Net investment income climbed 13.4% to $119.6M, while book value per share reached $105.40. The Hanover Insurance Group, Inc. (THG - Free Report) reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.
Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%.
THG Underwriting Results ImproveThe consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter.
The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion.
The Hanover's Core Commercial Growth AcceleratesCore Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.
Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier.
THG Specialty Underwriting Margins NarrowSpecialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.
Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million.
The Hanover's Personal Lines Results StrengthenPersonal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.
Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable.
THG Investment Income and Capital Position AdvanceNet investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.
The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization.
Zacks RankTHG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersThe Progressive Corporation’s (PGR - Free Report) second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. (TRV - Free Report) reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation (WRB - Free Report) reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.
W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.
Hanover Insurance Group (THG - Free Report) came out with quarterly earnings of $5.31 per share, beating the Zacks Consensus Estimate of $3.88 per share. This compares to earnings of $4.35 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +36.86%. A quarter ago, it was expected that this insurance company would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Hanover Insurance, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $1.72 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $1.66 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hanover Insurance shares have added about 20.1% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Hanover Insurance?While Hanover Insurance has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hanover Insurance was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.04 on $1.74 billion in revenues for the coming quarter and $18.38 on $6.95 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Bowhead Specialty Holdings Inc. (BOW - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +27%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
Bowhead Specialty Holdings Inc.'s revenues are expected to be $164.29 million, up 23.3% from the year-ago quarter.
For the quarter ended June 2026, Hanover Insurance Group (THG - Free Report) reported revenue of $1.72 billion, up 4% over the same period last year. EPS came in at $5.31, compared to $4.35 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.73 billion, representing a surprise of -0.41%. The company delivered an EPS surprise of +36.86%, with the consensus EPS estimate being $3.88.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
GAAP Expense Ratio: 31% versus 30.5% estimated by four analysts on average.GAAP Combined Ratio: 91.2% versus the four-analyst average estimate of 95.6%.GAAP Loss and LAE Ratio: 60.2% versus 65% estimated by four analysts on average.Specialty - Loss and LAE Ratio: 51.3% versus the three-analyst average estimate of 53.2%.Revenues- Net investment income: $119.6 million versus the four-analyst average estimate of $124.13 million. The reported number represents a year-over-year change of +13.4%.Revenues- Premiums earned: $1.6 billion versus the four-analyst average estimate of $1.6 billion. The reported number represents a year-over-year change of +3.4%.Operating Revenues- Personal Lines- Net Premiums Earned: $652.5 million compared to the $655.84 million average estimate based on three analysts. The reported number represents a change of +2.7% year over year.Revenues- Fees and other income: $6.2 million versus the three-analyst average estimate of $6.24 million. The reported number represents a year-over-year change of +1.6%.Operating Revenues- Specialty- Net Investment Income: $27.2 million versus $28.03 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.Operating Revenues- Personal Lines- Net Investment Income: $33.3 million compared to the $36.32 million average estimate based on three analysts. The reported number represents a change of +10.3% year over year.Operating Revenues- Core Commercial- Other income: $1.3 million versus $1.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Operating Revenues- Specialty- Other income: $1.2 million versus $1.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.View all Key Company Metrics for Hanover Insurance here>>>
Shares of Hanover Insurance have returned +2.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Combined ratio of 91.2%; combined ratio, excluding catastrophes(1), of 85.5% Catastrophe losses of $91.8 million, or 5.7 points of the combined ratio Net premiums written increase of 4.6%* Renewal price increases(2) of 8.7% in Personal Lines, 7.8% in Core Commercial and 3.6% in Specialty Rate increases(2) of 7.0% in Core Commercial, 4.8% in Personal Lines and 2.1% in Specialty Loss and loss adjustment expense (LAE) ratio of 60.2%, 1.7 points below the prior-year quarter Current accident year loss and LAE ratio, excluding catastrophes(3), of 55.8%, 0.3 points below the prior-year quarter Net investment income of $119.6 million, up 13.4% from the prior-year quarter Book value per share of $105.40, up 3.5% from March 31, 2026; excluding net unrealized depreciation on fixed maturity investments, net of tax(4), book value per share increased 3.8% , /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $191.6 million, or $5.38 per diluted share, in the second quarter of 2026, compared to $157.1 million, or $4.30 per diluted share, in the prior-year quarter. Operating income(5) was $189.2 million, or $5.31 per diluted share, in the second quarter of 2026, compared to $158.7 million, or $4.35 per diluted share, in the prior-year quarter. The company reported net and operating return on equity(6) of 21.2% and 19.8%, respectively, in the second quarter of 2026, and 21.0% and 20.0% in the first six months of 2026, respectively.
"Our very successful second quarter is a testament to the strength of our business model, the durable earnings power we have built across The Hanover and the disciplined execution of our team," said John C. Roche, president and chief executive officer at The Hanover. "We posted operating return on equity of approximately 20% and operating earnings of $5.31 per share, both second quarter records, as well as accelerated top-line premium growth. We are effectively navigating evolving market conditions, and achieving healthy pricing, while building growth momentum in the most attractive areas of our portfolio."
"This quarter reflects the talent of our employees, the strength of our leadership team, the depth of our agency relationships and the trust our customers place in us every day," said Roche. "As we announced earlier this month, I plan to retire at the end of 2026. It's been a great honor to serve the last nine years as CEO, and I could not be more optimistic about The Hanover's future. Dick Lavey has been one of the key architects of our strategy and the transformation of our company. We will continue to work closely together through the remainder of the year to ensure a seamless transition. Dick's leadership, expertise and strategic vision position him well to successfully lead The Hanover into its next chapter."
"We are pleased with our excellent performance, including outstanding underwriting profitability as demonstrated by our combined ratio of 91.2%, and 85.5% excluding catastrophes," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "Additionally, we delivered robust net investment income, up 13%, driven by higher earned yields and strong operating cash flows, while continued favorable development reinforces our confidence in the strength of our reserve position. The profitability of our business continues to build capital, enabling increased share repurchases while maintaining the balance sheet strength and financial flexibility for future growth opportunities and deployment. Following a really strong start to the year, we enter the second half of 2026 with confidence, supported by our varied earnings streams, resilient balance sheet and disciplined focus on capital allocation."
Second Quarter 2026 Highlights
Three months ended
Six months ended
June 30
June 30
($ in millions, except per share data)
2026
2025
2026
2025
Net premiums written
$
1,656.8
$
1,583.8
$
3,216.5
$
3,094.6
Growth
4.6
%
4.1
%
3.9
%
4.0
%
Net premiums earned
$
1,597.6
$
1,545.3
$
3,168.2
$
3,053.8
Current accident year loss and LAE ratio,
excluding catastrophes
55.8
%
56.1
%
56.1
%
57.2
%
Prior-year development ratio
(1.3)
%
(1.2)
%
(1.5)
%
(1.3)
%
Catastrophe ratio
5.7
%
7.0
%
6.0
%
6.7
%
Expense ratio(7)
31.0
%
30.6
%
30.8
%
30.7
%
Combined ratio
91.2
%
92.5
%
91.4
%
93.3
%
Combined ratio, excluding catastrophes
85.5
%
85.5
%
85.4
%
86.6
%
Current accident year combined ratio,
excluding catastrophes
86.8
%
86.7
%
86.9
%
87.9
%
Net income
$
191.6
$
157.1
$
378.4
$
285.3
per diluted share
5.38
4.30
10.58
7.80
Operating income
189.2
158.7
377.7
300.5
per diluted share
5.31
4.35
10.55
8.22
Book value per share
$
105.40
$
89.62
$
105.40
$
89.62
Ending shares outstanding (in millions)
34.9
35.9
34.9
35.9
(1) See information about this and other non-GAAP measures and definitions, including Operating Income and Operating Return on Equity in the headline, used throughout this press release on the final pages of this document.
*Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year.
The Hanover Insurance Group, Inc. may also be referred to as "The Hanover" or "the company" interchangeably throughout this press release.
Second Quarter Operating Highlights
Core Commercial
Core Commercial operating income before income taxes was $77.5 million in the second quarter of 2026, compared to $83.9 million in the second quarter of 2025. The Core Commercial combined ratio was 95.7%, compared to 93.0% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $26.4 million, or 4.6 points of the combined ratio. This compared to catastrophe losses of $22.7 million, or 4.1 points, in the prior-year quarter.
Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $0.6 million, or 0.1 points, compared to $3.0 million, or 0.5 points, in the second quarter of 2025.
Core Commercial current accident year combined ratio, excluding catastrophes, increased 1.8 points, to 91.2% in the second quarter of 2026, compared to 89.4% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, was 58.7%, 2.2 points higher than the prior-year quarter, but 0.4 points improved from the full year of 2025. In the second quarter of 2026, the company prudently increased loss ratio selections in liability coverages. Additionally, the loss ratio in the prior-year quarter benefited from lower-than-usual property losses.
The expense ratio decreased by 0.4 points, to 32.5%, in the second quarter of 2026, compared to the prior-year quarter, reflecting fixed cost leverage and efficiency gains.
Net premiums written were $574.8 million in the second quarter of 2026, up 7.2% from the prior-year quarter, an acceleration from the first quarter of 2026, reflecting growth of 6.0% in small commercial and 9.4% in middle market (approximately 7% growth in middle market excluding non-recurring items). Core Commercial renewal price increases averaged 7.8%, including average rate increases of 7.0%.
The following table summarizes premiums and the components of the combined ratio for Core Commercial:
Three months ended
Six months ended
June 30
June 30
($ in millions)
2026
2025
2026
2025
Net premiums written
$
574.8
$
536.0
$
1,205.2
$
1,140.6
Growth
7.2
%
4.4
%
5.7
%
4.1
%
Net premiums earned
579.3
554.3
1,143.1
1,095.3
Operating income before taxes
77.5
83.9
152.3
110.7
Loss and LAE ratio
63.2
%
60.1
%
63.5
%
65.0
%
Expense ratio
32.5
%
32.9
%
32.6
%
33.2
%
Combined ratio
95.7
%
93.0
%
96.1
%
98.2
%
Prior-year development ratio
(0.1)
%
(0.5)
%
(0.2)
%
(0.4)
%
Catastrophe ratio
4.6
%
4.1
%
5.0
%
6.3
%
Combined ratio, excluding catastrophes
91.1
%
88.9
%
91.1
%
91.9
%
Current accident year combined ratio,
excluding catastrophes
91.2
%
89.4
%
91.3
%
92.3
%
Specialty
Specialty operating income before income taxes was $68.4 million in the second quarter of 2026, compared to $71.2 million in the second quarter of 2025. The Specialty combined ratio was 88.3%, compared to 86.5% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $10.0 million, or 2.7 points of the combined ratio. This compared to catastrophe losses of $14.6 million, or 4.1 points, in the prior-year quarter.
Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $10.8 million, or 3.0 points, with widespread favorability. Net favorable prior-year reserve development, excluding catastrophes, was $12.5 million, or 3.5 points, in the second quarter of 2025.
Specialty current accident year combined ratio, excluding catastrophes, increased 2.7 points, to 88.6% in the second quarter of 2026, from 85.9% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, of 51.6% in the second quarter of 2026 was consistent with the company's long-term expectations for the segment and increased 2.6 points compared to the prior-year quarter, which saw lower-than-expected property losses.
Net premiums written were $384.4 million in the second quarter of 2026, up 4.4% from the prior-year quarter, an acceleration from the first quarter of 2026. Specialty renewal price increases averaged 3.6%, including average rate increases of 2.1%.
The following table summarizes premiums and the components of the combined ratio for Specialty:
Three months ended
Six months ended
June 30
June 30
($ in millions)
2026
2025
2026
2025
Net premiums written
$
384.4
$
368.2
$
751.1
$
726.5
Growth
4.4
%
4.6
%
3.4
%
5.0
%
Net premiums earned
365.8
355.9
725.7
695.5
Operating income before taxes
68.4
71.2
152.4
135.8
Loss and LAE ratio
51.3
%
49.6
%
49.6
%
50.1
%
Expense ratio
37.0
%
36.9
%
36.7
%
36.9
%
Combined ratio
88.3
%
86.5
%
86.3
%
87.0
%
Prior-year development ratio
(3.0)
%
(3.5)
%
(3.4)
%
(4.1)
%
Catastrophe ratio
2.7
%
4.1
%
2.7
%
4.2
%
Combined ratio, excluding catastrophes
85.6
%
82.4
%
83.6
%
82.8
%
Current accident year combined ratio,
excluding catastrophes
88.6
%
85.9
%
87.0
%
86.9
%
Personal Lines
Personal Lines operating income before income taxes was $104.9 million in the second quarter of 2026, compared to $57.4 million in the second quarter of 2025. The Personal Lines combined ratio was 88.9%, compared to 95.5% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $55.4 million, or 8.5 points of the combined ratio. This compared to catastrophe losses of $70.2 million, or 11.1 points of the combined ratio, in the prior-year quarter.
Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $10.1 million, or 1.5 points, compared to $2.6 million, or 0.4 points, in the second quarter of 2025.
Personal Lines current accident year combined ratio, excluding catastrophe losses, decreased 2.9 points, to 81.9%, in the second quarter of 2026, from 84.8% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, decreased 4.2 points from the prior-year quarter, to 55.6%, driven by the continued benefit of earned pricing outpacing loss trends and benign property claims frequency, as well as lower large loss experience in homeowners in the quarter.
The expense ratio increased by 1.3 points, to 26.3%, in the second quarter of 2026, compared to the prior-year quarter, primarily reflecting the timing of variable agency compensation expenses due to meaningfully better-than-expected results to date.
Net premiums written were $697.6 million in the second quarter of 2026, up 2.6% compared to the prior-year quarter. The increase was primarily due to higher new business, and to a lesser extent, the impact of renewal price increases. Personal Lines renewal price increases averaged 8.7%, including average rate increases of 4.8%. Policies in force (PIF) in the second quarter of 2026 were essentially flat compared to the first quarter of 2026.
The following table summarizes premiums and components of the combined ratio for Personal Lines:
Three months ended
Six months ended
June 30
June 30
($ in millions)
2026
2025
2026
2025
Net premiums written
$
697.6
$
679.6
$
1,260.2
$
1,227.5
Growth
2.6
%
3.7
%
2.7
%
3.4
%
Net premiums earned
652.5
635.1
1,299.4
1,263.0
Operating income before taxes
104.9
57.4
194.1
151.6
Loss and LAE ratio
62.6
%
70.5
%
64.2
%
67.5
%
Expense ratio
26.3
%
25.0
%
26.0
%
25.1
%
Combined ratio
88.9
%
95.5
%
90.2
%
92.6
%
Prior-year development ratio
(1.5)
%
(0.4)
%
(1.5)
%
(0.4)
%
Catastrophe ratio
8.5
%
11.1
%
8.8
%
8.3
%
Combined ratio, excluding catastrophes
80.4
%
84.4
%
81.4
%
84.3
%
Current accident year combined ratio,
excluding catastrophes
81.9
%
84.8
%
82.9
%
84.7
%
Investments
Net investment income was $119.6 million in the second quarter of 2026, an increase of 13.4% from the prior-year quarter, primarily due to the continued investment of cashflows from operations and the impact of higher earned yields on the fixed maturity investment portfolio. Total pre-tax earned yield on the investment portfolio for the second quarter of 2026 was 4.28%, up from 4.11% in the prior-year quarter. The average pre-tax earned yield on fixed maturities was 4.45% for the second quarter of 2026, up from 4.24% in the prior-year quarter.
Net realized and unrealized investment gains recognized in earnings were $2.8 million in the second quarter of 2026. This compared to net realized and unrealized investment losses recognized in earnings of $2.5 million in the second quarter of 2025.
The company held $11.2 billion in cash and invested assets at June 30, 2026. Fixed maturities and cash represented approximately 93% of the investment portfolio. Approximately 95% of the company's fixed maturity portfolio is rated investment grade. As of June 30, 2026, net unrealized losses on the fixed maturity portfolio were $259.5 million before income taxes, compared to $235.6 million at March 31, 2026.
Shareholders' Equity and Capital Actions
At June 30, 2026, book value per share was $105.40, up 3.5% from March 31, 2026, driven by strong earnings, partially offset by share repurchases, the ordinary quarterly cash dividends, and an increase in the unrealized loss position on the fixed maturity portfolio. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax, was $111.26 at June 30, 2026, up 3.8% from March 31, 2026.
At June 30, 2026, operating insurance company's statutory capital and surplus was $3.54 billion, slightly higher compared to March 31, 2026.
The company repurchased approximately 291,000 shares of common stock in the second quarter of 2026, totaling approximately $55 million. Year-to-date through July 24th, the company has repurchased approximately 827,000 shares, totaling approximately $149 million. The company has approximately $660 million of remaining capacity under its new $700 million share repurchase authorization announced on May 13, 2026.
Earnings Conference Call
The company will host a conference call to discuss its second quarter results on Wednesday, July 29, at 10:00 a.m. E.T. A presentation will accompany the prepared remarks and has been posted on The Hanover's website. Interested investors and others can listen to the call and access the presentation through The Hanover's website, located in the "Investors" section at www.hanover.com. Investors may access the conference call by dialing 1-844-413-3975 in the U.S. and 1-412-317-5458 internationally. Webcast participants should go to the website 15 minutes early to register, download and install any necessary audio software. A re-broadcast of the conference call will be available on The Hanover's website approximately two hours after the call.
The Hanover Strategic Outlook and Financial Update
The company will hold a virtual strategic outlook and financial update on Thursday, September 17, at 10:00 a.m. ET, highlighting the next chapter of The Hanover, its strategic priorities, and updated long-term financial targets. The event will include a live question and answer session with members of the executive team. A live webcast of the event will be available through the "Investors" section of the company's website. A replay of the webcast will be available following the event.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Contact Information
Definition of Segments
Continuing operations include four reporting segments: Core Commercial, Specialty, Personal Lines and Other. The Core Commercial segment includes commercial multiple peril, commercial automobile, workers' compensation and other core commercial lines coverages provided to small and mid-sized businesses. The Specialty segment includes four divisions of business: marine and industrial property, professional and executive lines (such as management and professional liability), E&S and alternative markets, and surety and other. E&S and alternative markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses), and specialty general liability coverage. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Other segment primarily includes the operations of the holding company, and our run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools business, and run-off product liability business.
Financial Supplement
The Hanover's second quarter news release and financial supplement are available in the "Investors" section of the company's website at hanover.com.
The Hanover Insurance Group, Inc.
Consolidated Statements of Income
Three months ended
Six months ended
June 30
June 30
($ in millions)
2026
2025
2026
2025
Revenues
Premiums earned
$
1,597.6
$
1,545.3
$
3,168.2
$
3,053.8
Net investment income
119.6
105.5
246.5
211.6
Net realized and unrealized investment gains (losses):
Net realized losses from sales and other
(5.4)
(4.6)
(10.3)
(23.4)
Net change in fair value of equity securities and other
10.5
5.0
15.1
6.0
Impairments on investments:
Credit-related impairments
(1.4)
(2.5)
(3.0)
(2.5)
Losses on intent to sell securities
(0.9)
(0.4)
(1.3)
(0.4)
Total impairments on investments
(2.3)
(2.9)
(4.3)
(2.9)
Total net realized and unrealized investment gains (losses)
2.8
(2.5)
0.5
(20.3)
Fees and other income
6.2
6.1
12.4
12.5
Total revenues
1,726.2
1,654.4
3,427.6
3,257.6
Losses and expenses
Losses and loss adjustment expenses
962.5
957.2
1,920.1
1,912.5
Amortization of deferred acquisition costs
338.0
319.0
671.2
632.9
Interest expense
10.1
8.6
20.9
17.1
Other operating expenses
171.0
170.8
333.7
336.2
Total losses and expenses
1,481.6
1,455.6
2,945.9
2,898.7
Income before income taxes
244.6
198.8
481.7
358.9
Income tax expense
53.2
41.9
103.5
73.8
Income from continuing operations
191.4
156.9
378.2
285.1
Discontinued operations (net of taxes):
Income from discontinued life businesses
0.2
0.2
0.2
0.2
Net income
$
191.6
$
157.1
$
378.4
$
285.3
The Hanover Insurance Group, Inc.
Condensed Consolidated Balance Sheets
June 30
December 31
($ in millions)
2026
2025
Assets
Total investments
$
10,902.0
$
10,382.7
Cash and cash equivalents
266.1
1,122.7
Premiums and accounts receivable, net
1,950.1
1,861.3
Reinsurance recoverable on paid and unpaid losses and unearned premiums
2,078.9
2,011.1
Other assets
1,582.2
1,484.5
Assets of discontinued businesses
84.6
83.6
Total assets
$
16,863.9
$
16,945.9
Liabilities
Loss and loss adjustment expense reserves
$
8,001.7
$
7,755.2
Unearned premiums
3,479.6
3,440.4
Short-term debt
50.1
375.0
Long-term debt
793.9
843.3
Other liabilities
761.3
851.9
Liabilities of discontinued businesses
104.8
108.6
Total liabilities
13,191.4
13,374.4
Total shareholders' equity
3,672.5
3,571.5
Total liabilities and shareholders' equity
$
16,863.9
$
16,945.9
The following is a reconciliation from operating income to income from continuing operations and net income(5)(8):
The Hanover Insurance Group, Inc.
Three months ended June 30
Six months ended June 30
2026
2025
2026
2025
($ in millions, except per share data)
$
Amount
Per Share
(Diluted)
$
Amount
Per Share
(Diluted)
$
Amount
Per Share
(Diluted)
$
Amount
Per Share
(Diluted)
Operating income
Core Commercial
$
77.5
$
83.9
$
152.3
$
110.7
Specialty
68.4
71.2
152.4
135.8
Personal Lines
104.9
57.4
194.1
151.6
Other
1.1
(2.6)
3.3
(1.8)
Total
251.9
209.9
502.1
396.3
Interest expense
(10.1)
(8.6)
(20.9)
(17.1)
Operating income before income taxes
241.8
$
6.79
201.3
$
5.51
481.2
$
13.44
379.2
$
10.37
Income tax expense on operating income
(52.6)
(1.48)
(42.6)
(1.16)
(103.5)
(2.89)
(78.7)
(2.15)
Operating income after income taxes
189.2
5.31
158.7
4.35
377.7
10.55
300.5
8.22
Non-operating items:
Net realized losses from sales and other
(5.4)
(0.15)
(4.6)
(0.12)
(10.3)
(0.29)
(23.4)
(0.63)
Net change in fair value of equity securities and
other
10.5
0.30
5.0
0.13
15.1
0.43
6.0
0.16
Impairments on investments:
Credit-related impairments
(1.4)
(0.04)
(2.5)
(0.07)
(3.0)
(0.08)
(2.5)
(0.07)
Losses on intent to sell securities
(0.9)
(0.03)
(0.4)
(0.01)
(1.3)
(0.04)
(0.4)
(0.01)
Total impairments on investments
(2.3)
(0.07)
(2.9)
(0.08)
(4.3)
(0.12)
(2.9)
(0.08)
Income tax benefit (expense) on non-operating
items
(0.6)
(0.02)
0.7
0.02
-
-
4.9
0.13
Income from continuing operations, net of taxes
191.4
5.37
156.9
4.30
378.2
10.57
285.1
7.80
Discontinued operations (net of taxes):
Income from discontinued life businesses
0.2
0.01
0.2
-
0.2
0.01
0.2
-
Net income
$
191.6
$
5.38
$
157.1
$
4.30
$
378.4
$
10.58
$
285.3
$
7.80
Dilutive weighted average shares outstanding
35.6
36.5
35.8
36.6
Basic weighted average shares outstanding
35.0
35.9
35.1
35.9
Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements
Certain statements in this document may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may address, among other things, expectations regarding our growth, the strength of our reserves, certain statements regarding our performance for the remainder of 2026 and beyond, as well as our expectations, intentions and other statements that are not historical facts. Words such as: "believes," "anticipates," "expects," "intends," "may," "projects," "plan," "likely," "potential," "targeted," "forecasts," "should," "could," "continue," and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated. Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made and should understand the risks and uncertainties inherent in or particular to the company's business. Some of the factors that could cause actual results to differ include, but are not limited to: changes in the demand for our products; risks and uncertainties related to our growth and operating strategies, including our ability to attract, grow and retain profitable policies in force, to increase rates commensurate with, or in excess of, loss trends, and to manage expenses and execute strategic initiatives effectively; adverse claims experience or changes in our estimates of loss and loss adjustment expense reserves, including those arising from catastrophes, inflationary pressures or global unrest, which may result in lower current year underwriting results or adverse loss development, and which could negatively impact our carried reserves; uncertainties with respect to the long-term profitability of our products, including with respect to newer products, or longer-tail products covering casualty losses; disruption in our distribution channels, including the loss or disruption of our independent agency channel, and the impact of competition and consolidation in the industry and among agents and brokers; changes in frequency and loss severity trends, exacerbated by fluctuations in economic conditions; changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, policy terms and conditions, the use of artificial intelligence and other technologies, privacy and data security, payment flexibility, and regions where we have geographical concentration; volatile and unpredictable developments, including severe weather (whether arising from changing climate conditions or weather patterns, or otherwise) and other natural physical events, catastrophes, pandemics, civil unrest, war, global conflicts, and terrorist actions, and the uncertainty in estimating the resulting losses; and, other risks, uncertainties and factors discussed in the company's most recently filed quarterly report on Form 10-Q and its 2025 Annual Report filed on Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference. The company does not undertake the responsibility to update or revise such forward-looking statements, except as required by law.
Non-GAAP Financial Measures
As discussed on page 39 of the company's Annual Report on Form 10-K for the year ended December 31, 2025, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating income per diluted share, and components of the combined ratio, both excluding and/or including catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company's operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2025 Annual Report on pages 61-64.
Operating income and operating income per diluted share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company's four reporting segments, "operating income" is the segment income before both interest expense and income taxes. The company also uses "operating income per diluted share" (which is after both interest expense and income taxes). Operating income per share is calculated by dividing operating income by the weighted average number of diluted shares of common stock. Operating loss per share is calculated by dividing operating loss by the weighted average number of basic shares of common stock due to antidilution. The company believes that metrics of operating income and operating income in relation to its four reporting segments provide investors with a valuable measure of the performance of the company's continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or prior-year reserve development. These non-GAAP measures should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income to income from continuing operations and net income for the relevant periods is included on page 9 of this news release and in the Financial Supplement.
Operating return on average equity (ROE) is a non-GAAP measure. See end note (6) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders' equity of the entire company and without adjustments.
Book value per share is total shareholders' equity divided by the number of common shares outstanding. Book value per share excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure and is total shareholders' equity excluding the after-tax effect of unrealized appreciation (depreciation) on fixed maturities and market risk divided by the number of common shares outstanding.
The company may provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events including, but is not limited to, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, riots, and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others.
Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company's estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense (LAE) ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as "current accident year loss ratios." The company believes a discussion of loss and combined ratios excluding prior accident year reserve development is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates.
The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP.
Endnotes
(1)
Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings "Forward-Looking Statements" and "Non-GAAP Financial Measures." The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP combined ratio to the combined ratio, excluding catastrophes, and to the current accident year combined ratio, excluding catastrophes, is shown below.
Current accident year combined ratio, excluding
catastrophe losses (non-GAAP)
92.3
%
86.9
%
84.7
%
87.9
%
(2)
Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. Rate increases in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. Renewal price change in Personal Lines represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms. Rate change in Personal Lines is the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed. Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.
(3)
Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. The following is a reconciliation of the GAAP loss ratio to the current accident year loss ratio, excluding catastrophe losses.
Three months ended
June 30, 2026
Core
Commercial
Specialty
Personal
Lines
Total
Total loss and LAE ratio
63.2
%
51.3
%
62.6
%
60.2
%
Less:
Prior-year reserve development ratio
(0.1)
%
(3.0)
%
(1.5)
%
(1.3)
%
Catastrophe ratio
4.6
%
2.7
%
8.5
%
5.7
%
Current accident year loss and LAE ratio, excluding
catastrophes
58.7
%
51.6
%
55.6
%
55.8
%
June 30, 2025
Total loss and LAE ratio
60.1
%
49.6
%
70.5
%
61.9
%
Less:
Prior-year reserve development ratio
(0.5)
%
(3.5)
%
(0.4)
%
(1.2)
%
Catastrophe ratio
4.1
%
4.1
%
11.1
%
7.0
%
Current accident year loss and LAE ratio, excluding
catastrophes
56.5
%
49.0
%
59.8
%
56.1
%
Six months ended
June 30, 2026
Core
Commercial
Specialty
Personal
Lines
Total
Total loss and LAE ratio
63.5
%
49.6
%
64.2
%
60.6
%
Less:
Prior-year reserve development ratio
(0.2)
%
(3.4)
%
(1.5)
%
(1.5)
%
Catastrophe ratio
5.0
%
2.7
%
8.8
%
6.0
%
Current accident year loss and LAE ratio, excluding
catastrophes
58.7
%
50.3
%
56.9
%
56.1
%
June 30, 2025
Total loss and LAE ratio
65.0
%
50.1
%
67.5
%
62.6
%
Less:
Prior-year reserve development ratio
(0.4)
%
(4.1)
%
(0.4)
%
(1.3)
%
Catastrophe ratio
6.3
%
4.2
%
8.3
%
6.7
%
Current accident year loss and LAE ratio, excluding
catastrophes
59.1
%
50.0
%
59.6
%
57.2
%
(4)
Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below.
Period ended
March 31
June 30
2026
2026
Book value per share
$101.86
$105.40
Less: Net unrealized appreciation (depreciation) on fixed
maturity investments, net of tax, per share
(5.28)
(5.86)
Book value per share, excluding net unrealized appreciation
(depreciation) on fixed maturity investments, net of tax
$107.14
$111.26
Versus prior quarter
Change in book value per share
3.5 %
Change in book value per share, excluding net unrealized
appreciation (depreciation) on fixed maturity investments, net of tax
3.8 %
(5)
Operating income and operating income per diluted share are non-GAAP measures. Operating income before income taxes, as referenced in the results of the reporting segments, is defined as, with respect to such segment, operating income before interest expense and income taxes. The reconciliation of operating income and operating income per diluted share to the closest GAAP measures, income from continuing operations and income from continuing operations per diluted share, respectively, and to net income and net income per diluted share, respectively, is provided on the preceding pages of this news release.
(6)
Operating return on average equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see under the heading in this news release "Non-GAAP Financial Measures" and end note (5)), by average shareholders' equity, excluding unrealized appreciation (depreciation) on fixed maturity investments, net of tax, for the period presented. Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is also a non-GAAP measure. Total shareholders' equity is the most directly comparable GAAP measure and is reconciled in the following table. For the calculation of operating ROE, the average of beginning and ending shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is used for the period as shown and reconciled in the following table.
Period Ended
($ in millions)
December 31
March 31
June 30
2025
2026
2026
Total shareholders' equity (GAAP)
$
3,571.5
$
3,570.4
$
3,672.5
Less: net unrealized appreciation (depreciation)
on fixed maturity investments, net of tax
(117.1)
(185.0)
(204.1)
Total shareholders' equity, excluding net
unrealized appreciation (depreciation)
on fixed maturity investments, net of tax
$
3,688.6
$
3,755.4
$
3,876.6
Quarter Averages
Average shareholders' equity (GAAP)
$
3,621.5
Average shareholders' equity, excluding net
unrealized appreciation (depreciation) on
fixed maturity investments, net of tax
$
3,816.0
Year-to-date Averages
Average shareholders' equity (GAAP)
$
3,604.8
Average shareholders' equity, excluding net
unrealized appreciation (depreciation) on
fixed maturity investments, net of tax
$
3,773.5
($ in millions)
Three months ended
Six months ended
June 30
June 30
Net Income ROE
2026
2026
Net income (GAAP)
$
191.6
$
378.4
Annualized net income*
766.4
756.8
Average shareholders' equity (GAAP)
$
3,621.5
$
3,604.8
Return on equity
21.2
%
21.0
%
Operating Income ROE (non-GAAP)
Operating income after taxes
$
189.2
$
377.7
Annualized operating income, net of tax*
756.8
755.4
Average shareholders' equity, excluding net unrealized appreciation
(depreciation) on fixed maturity investments, net of tax
$
3,816.0
$
3,773.5
Operating return on equity
19.8
%
20.0
%
*For three months ended June 30, 2026, annualized net income and operating income after taxes is calculated by multiplying three months ended net income and operating income after taxes, respectively, by 4. For six months ended June 30, 2026, annualized net income and operating income after taxes is calculated by multiplying six months ended net income and operating income after taxes, respectively, by 2.
(7)
Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation.
(8)
The separate financial information of each reporting segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned reporting segments without consideration of interest expense on debt and on a pre-tax basis.
Hanover Insurance Group (THG - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Hanover Insurance basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Hanover Insurance imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Hanover InsuranceThis insurance company is expected to earn $18.38 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Hanover Insurance. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Hanover Insurance to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Hanover Insurance Group (THG - Free Report) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.
When looking at the last two reports, this insurance company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 19.08%, on average, in the last two quarters.
For the last reported quarter, Hanover Insurance came out with earnings of $5.25 per share versus the Zacks Consensus Estimate of $4.14 per share, representing a surprise of 26.81%. For the previous quarter, the company was expected to post earnings of $5.2 per share and it actually produced earnings of $5.79 per share, delivering a surprise of 11.35%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Hanover Insurance. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Hanover Insurance has an Earnings ESP of +2.39% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 28, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
The market expects Hanover Insurance Group (THG - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis insurance company is expected to post quarterly earnings of $3.88 per share in its upcoming report, which represents a year-over-year change of -10.8%.
Revenues are expected to be $1.73 billion, up 4.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.25% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hanover Insurance?For Hanover Insurance, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.39%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Hanover Insurance will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hanover Insurance would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hanover Insurance appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsKinsale Capital Group, Inc. (KNSL - Free Report) , another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $5.09 for the quarter ended June 2026. This estimate points to a year-over-year change of +6.5%. Revenues for the quarter are expected to be $475.6 million, up 1.2% from the year-ago quarter.
The consensus EPS estimate for Kinsale Capital Group has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.33%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Kinsale Capital Group will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.96. Over the past year, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.11. This compares to its industry's average P/S of 1.33.
Finally, investors should note that THG has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.39. Over the past 52 weeks, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
Value investors will likely look at more than just these metrics, but the above data helps show that The Hanover Insurance Group is likely undervalued currently. And when considering the strength of its earnings outlook, THG sticks out as one of the market's strongest value stocks.
Allspring Global Investments Holdings LLC lowered its position in The Hanover Insurance Group, Inc. (NYSE:THG – Free Report) by 7.0% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 401,539 shares of the insurance provider’s stock after selling 30,018 shares during the period. Allspring Global Investments Holdings LLC owned about 1.15% of The Hanover Insurance Group worth $69,189,000 as of its most recent SEC filing.
Several other hedge funds have also added to or reduced their stakes in the business. Norges Bank bought a new position in shares of The Hanover Insurance Group during the 4th quarter valued at about $83,817,000. Alliancebernstein L.P. lifted its stake in The Hanover Insurance Group by 36.1% in the second quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider’s stock valued at $217,505,000 after buying an additional 339,896 shares in the last quarter. AQR Capital Management LLC lifted its stake in The Hanover Insurance Group by 37.8% in the third quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider’s stock valued at $137,967,000 after buying an additional 209,616 shares in the last quarter. Invesco Ltd. increased its holdings in The Hanover Insurance Group by 44.1% during the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider’s stock worth $118,236,000 after purchasing an additional 197,930 shares in the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider’s stock worth $53,058,000 after purchasing an additional 196,655 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company’s stock.
Insiders Place Their Bets In related news, Director Francisco Aristeguieta sold 1,000 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director owned 4,053 shares of the company’s stock, valued at $791,834.61. This represents a 19.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Denise Lowsley sold 4,175 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total transaction of $800,472.75. Following the completion of the transaction, the executive vice president owned 3,883 shares of the company’s stock, valued at $744,487.59. The trade was a 51.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 29,508 shares of company stock valued at $5,704,651 over the last 90 days. 2.80% of the stock is owned by company insiders.
The Hanover Insurance Group Trading Up 3.1% Shares of THG stock opened at $213.42 on Friday. The stock has a market cap of $7.47 billion, a P/E ratio of 10.74 and a beta of 0.28. The Hanover Insurance Group, Inc. has a 1 year low of $163.18 and a 1 year high of $225.29. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. The stock has a 50 day simple moving average of $201.24 and a 200 day simple moving average of $184.78.
The Hanover Insurance Group (NYSE:THG – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, topping analysts’ consensus estimates of $4.14 by $1.11. The firm had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The company’s revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $3.87 EPS. On average, research analysts predict that The Hanover Insurance Group, Inc. will post 18.38 earnings per share for the current fiscal year.
The Hanover Insurance Group announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 13th that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
The Hanover Insurance Group Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 12th were paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group’s payout ratio is 19.12%.
Wall Street Analysts Forecast Growth A number of brokerages have recently commented on THG. Weiss Ratings upgraded The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $220.00 price objective (up from $211.00) on shares of The Hanover Insurance Group in a report on Wednesday, July 8th. Morgan Stanley lifted their target price on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 8th. Citizens Jmp boosted their target price on The Hanover Insurance Group from $205.00 to $225.00 and gave the company a “market outperform” rating in a research note on Friday, July 10th. Finally, Piper Sandler downgraded The Hanover Insurance Group from an “overweight” rating to a “neutral” rating and set a $220.00 price target for the company. in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $218.29.
View Our Latest Stock Report on THG
The Hanover Insurance Group Profile (Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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, /PRNewswire/ -- The Hanover Insurance Group, Inc., (NYSE: THG), a leading property and casualty insurance company, announced today that John "Jack" C. Roche, president and chief executive officer, has informed the company's Board of Directors he plans to retire on December 31, 2026, following a distinguished 40-year career in the insurance industry. Richard "Dick" W. Lavey, chief operating officer and president of Hanover Agency Markets, has been appointed by the board as CEO-elect and will work closely with Roche to ensure a successful transition.
John C. Roche
Richard W. Lavey "The Board of Directors is deeply grateful to Jack for his outstanding leadership and the significant impact he's made to The Hanover," said Cynthia L. Egan, chair of the board at The Hanover. "He has driven progress in every dimension of the company, not the least of which is working closely with the board and with Dick to ensure that we have an exceptional CEO to elevate the company to its next level."
Roche, 62, joined The Hanover in 2006 and was appointed president and chief executive officer in 2017. Under his leadership, the company achieved record operating earnings, outstanding stock price appreciation and strengthened its position as a premier property and casualty company in the independent agency channel. In addition to his responsibilities at The Hanover, Roche serves the insurance industry as vice chair of the board of trustees for The Institutes, a member of the board of directors for the American Property Casualty Insurance Association, and as a member of the board of overseers of St. John's University Maurice R. Greenberg School of Risk Management, Insurance and Actuarial Science.
"I will retire at the end of the year with tremendous pride in all our organization has accomplished," Roche said. "The company is in a strong financial position and has the exceptional talent needed to drive our business forward. Having worked closely with Dick for more than two decades, I have complete confidence in his leadership and his ability to guide our company forward. Together, we will ensure a seamless and successful transition."
"Dick is an accomplished executive whose deep experience spans the insurance and technology industries," said Egan. "His impressive contributions have been central in the successful expansion of the company's strategy, shaping The Hanover into a leading partner for independent agents and a top-performing company. From repositioning the firm's personal and core commercial lines growth and profitability to his critical leadership in driving technology advancements, Dick has the insight, strategic vision and passion to lead the company through the next chapter of its remarkable journey."
Lavey, 59, joined The Hanover in 2004 and held a series of executive leadership positions over his 22-year tenure. Currently, Lavey serves as chief operating officer where he directs the strategic transformation of the company's operating model, augmenting the partnership between its business and technology functions. In his role as president of Hanover Agency Markets, Lavey leads the growth and performance of core commercial and personal lines, which combined represent 75% of The Hanover's $7 billion consolidated gross premiums written. Earlier in his tenure, Lavey served as chief marketing officer, chief growth innovation officer, president of personal lines and president of the organization's northeast region, among other key positions.
Prior to The Hanover, Lavey held leadership roles in sales, distribution, marketing and strategy at a number of insurance and technology companies, including The Hartford and The Travelers Insurance Company. He recently served as chairman of the board for the National Council on Compensation Insurance (NCCI). Lavey is a Phi Beta Kappa graduate of The College of Holy Cross and earned his Master of Business Administration degree from Harvard Business School.
"I am honored to lead our organization at such a transformative time in our business. I am energized to continue our momentum to accelerate growth, drive performance and deliver lasting value for our stakeholders," said Lavey.
The company will be available to answer questions at its upcoming earnings call, scheduled for Wednesday, July 29, 2026. The Hanover also plans to share an update on the company's strategy and future outlook at its investor day on September 17, 2026. To learn more, visit The Hanover's investor relations page at investors.hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Key Takeaways THG's pricing continues to outpace loss-cost trends, supporting underwriting margins and profitable growth.Specialty and Personal Lines benefit from underwriting discipline, pricing actions and AI-driven efficiency.The Hanover maintains strong capital generation while returning cash through dividends and share repurchases. Shares of The Hanover Insurance Group, Inc. (THG - Free Report) have gained 36.4% in the past year compared with the industry growth of 7.2%. The stock closed at $221.61 on Thursday, trading near its 52-week high of $221.70, reflecting investor confidence.
Disciplined underwriting, effective pricing, specialty insurance expansion and rising investment income are driving the stock. The momentum can continue if pricing remains favorable and claims trends stay under control, though catastrophe losses, competitive pricing pressure and social inflation remain key risks. The company has surpassed earnings estimates in each of the last four quarters, with an average earnings surprise of 28.5%.
Shares of some other insurers, like Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Mercury General Corporation (MCY - Free Report) , have risen 14.2%, 12.9% and 67.1%, respectively, in the past year.
1-Year Price Performance: THG, ACGL, AFG, MCY & Industry
Image Source: Zacks Investment Research
THG Shares Are ExpensiveIts shares are trading at a premium to the industry. Its price-to-book value of 2.17X is higher than the industry average of 1.5X. However, it currently carries a Value Score of A.
Image Source: Zacks Investment Research
THG’s Growth ProjectionThe Zacks Consensus Estimate for 2026 and 2027 revenues implies a year-over-year improvement of 4.7% and 4.8%, respectively.
The estimate for 2026 and 2027 earnings per share indicates a decrease of 3.8% and 0.3%, respectively. However, THG has a Growth Score of B.
Mixed Analyst Sentiment on THGTwo analysts covering the stock have raised earnings estimates for 2026 and 2027, with no downward revision over the past 60 days.
The consensus estimate for 2026 earnings has moved 1.8% north, while 2027 estimates have moved 0.3% south over the past 60 days.
THG’s Favorable Return on CapitalReturn on equity for the trailing-12 months was 21.5%, compared favorably with the industry’s 7.4%. This reflects its efficiency in utilizing shareholders’ funds.
Return on invested capital for the trailing-12 months was 12.5%, better than the industry average of 5.7%, reflecting THG’s efficiency in utilizing funds to generate income.
Key Points to Note for THGThe Hanover's pricing continues to exceed loss-cost trends across both Commercial and Personal Lines, supporting durable underwriting margins despite softening property market conditions. Management expects pricing to remain favorable in 2026, particularly in Commercial and Personal Auto liability, while commercial-line retention remains stable. Net premiums written increased 3.2% in the first quarter of 2026, reflecting the company's disciplined approach to profitable growth. Continued pricing discipline should help sustain underwriting margins even if premium growth remains measured.
Specialty continued to deliver attractive underwriting margins in the first quarter of 2026. Management expects overall Specialty growth to ramp up, with Marine expected to return to upper single-digit growth for the rest of 2026. Robust underwriting performance across Property, Management Liability, Surety, Marine and E&S continues to support earnings. Management remains willing to sacrifice near-term premium growth to preserve long-term profitability.
Personal Lines is benefiting from earned pricing and margin initiatives. As geographic diversification and full-account strategies scale, the segment has room to contribute steadier earnings and support consolidated results through the cycle.
Ongoing investments in artificial intelligence and digital capabilities are enhancing underwriting efficiency, risk selection, claims handling and quoting speed. AI-enabled underwriting, automated risk scoring and claims triage continue to improve operational execution. Meanwhile, net investment income increased 19.6% year over year in the first quarter of 2026, aided by higher reinvestment yields and a high-quality investment portfolio. This has strengthened the company's investment returns and provided an additional source of earnings growth beyond underwriting operations.
THG continues to generate strong capital and remains committed to enhancing shareholder value through a balanced capital deployment strategy, including regular dividend payments and ongoing share repurchases.
ConclusionTHG is positioned to deliver steady earnings growth through premium rate increases, pricing discipline, specialty strength and rising investment income. The company's diversified commercial and personal lines portfolio and ongoing share repurchases provide additional support for earnings and shareholder returns. A VGM Score of A instils confidence.
Coupled with premium expansion, strong underwriting discipline and higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Have you been paying attention to shares of Hanover Insurance Group (THG - Free Report) ? Shares have been on the move with the stock up 18.5% over the past month. The stock hit a new 52-week high of $221.7 in the previous session. Hanover Insurance has gained 21.3% since the start of the year compared to the 5.3% move for the Zacks Finance sector and the 3.2% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Hanover Insurance reported EPS of $5.25 versus consensus estimate of $4.14.
For the current fiscal year, Hanover Insurance is expected to post earnings of $18.36 per share on $6.95 in revenues. This represents a -3.82% change in EPS on a 4.71% change in revenues. For the next fiscal year, the company is expected to earn $18.31 per share on $7.29 in revenues. This represents a year-over-year change of -0.32% and 4.76%, respectively.
Valuation MetricsThough Hanover Insurance has recently hit a 52-week high, what is next for Hanover Insurance? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 10.4X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Hanover Insurance currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hanover Insurance meets the list of requirements. Thus, it seems as though Hanover Insurance shares could have potential in the weeks and months to come.
How Does THG Stack Up to the Competition?Shares of THG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Mercury General Corporation (MCY - Free Report) . MCY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Mercury General Corporation beat our consensus estimate by 62.79%, and for the current fiscal year, MCY is expected to post earnings of $11.38 per share on revenue of $6.38 billion.
Shares of Mercury General Corporation have gained 13.3% over the past month, and currently trade at a forward P/E of 9.71X and a P/CF of 11.94X.
The Insurance - Property and Casualty industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and MCY, even beyond their own solid fundamental situation.
The Zacks Property and Casualty Insurance (P&C) industry is witnessing softer pricing after several years of improvement. However, it is likely to benefit from prudent underwriting, exposure growth and accelerated digitalization. Industry players like The Hanover Insurance Group (THG - Free Report) , Essent Group (ESNT - Free Report) , Mercury General Corporation (MCY - Free Report) , Selective Insurance Group (SIGI - Free Report) and Skyward Specialty Insurance Group (SKWD - Free Report) are poised to grow despite all odds. Given an active catastrophe environment, the policy renewal rate should accelerate. The increasing adoption of technology and the emergence of insurtech help the industry players function smoothly.
The Fed has kept interest rates unchanged till now and has hinted at the possibility of a cut later this year. Though insurers are direct beneficiaries of an improved rate environment, investment income is expected to remain strong, given insurers’ diverse investment portfolio as well as the continued growth of private market investments. Also, an investment portfolio skewed toward fixed-income maturities provides some upside. The imposition of tariffs by President Trump, as well as higher inflation, will have an impact on pricing. Nonetheless, an improvement in surplus and accelerated economic activities set the stage for a better M&A environment. Per Fitch Ratings, personal auto is expected to stay strong, and, coupled with better investment results and lower claims, should fuel insurers' performance.
About the Industry The Zacks Property and Casualty Insurance industry comprises companies that provide commercial and personal property insurance, and casualty insurance products and services. Such insurance helps to safeguard property in case of any natural or man-made disasters. Some industry players also provide liability coverage. The insurance coverage offered also includes automobiles, professional risk, marine, excess casualty, aviation, personal accident, commercial multi-peril, and professional indemnity and surety. Premiums are the primary source of revenues for these insurers. Better pricing and increased exposure drive premiums. These companies invest a portion of premiums to meet their commitments to policyholders. However, rate cuts by the Fed pose downside risk.
4 Trends Shaping the Future of the Property and Casualty Insurance Industry Proper pricing to help navigate claims: Catastrophic events continue to keep insurers under pressure, often prompting rate hikes to sustain claims payouts. However, Marsh’s Global Insurance Market Index reported a 5% decline in global commercial insurance rates in the first quarter of 2026, marking the seventh consecutive quarter of pricing moderation due to stronger competition, favorable claims trends and improved reinsurance conditions. Well-calibrated pricing remains critical, as prudently priced portfolios enhance loss ratios and release capital for more efficient claims servicing. Fitch Ratings highlights strong momentum in personal auto insurance, supported by better investment returns and fewer claims, while S&P Global expects underwriting profits to stabilize as insurers balance growth with steady or slightly reduced rates. Deloitte projects global premiums to grow nearly sixfold to $722 billion by 2030, with China and North America dominating. Swiss Re forecasts 4% premium growth in 2026. Thus, prudent pricing not only drives premium but also a resilient claims ecosystem.
Catastrophe loss induces volatility in underwriting profits: The property and casualty insurance industry is susceptible to catastrophe events, which drag down underwriting profits. According to Aon, natural disasters caused global economic losses of $260 billion last year, while insured losses exceeded $127 billion. Yet the industry generated an estimated net underwriting gain of $63 billion in 2025, significantly higher than $23 billion in 2024, per Verisk. The combined ratio improved to 92.9% from 96.6%, benefiting from relatively lower catastrophe losses. However, Swiss Re projects the combined ratio to deteriorate by 50 basis points to 99% in 2026 as catastrophe pressure normalizes. Insurance Information Institute and Milliman expect personal lines insurers to face higher catastrophe-related losses, which could weigh on underwriting profitability. S&P Global expects underwriting profitability to stabilize as insurers balance growth and pricing discipline.
Merger and acquisitions: Consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geography. Buying businesses along the same lines will also continue as players look to gain market share and grow in their niche areas. With a sturdy capital level, the industry is witnessing a number of mergers, acquisitions and consolidations.
Increased adoption of technology: The industry is witnessing increased use of technologies like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. The industry has also witnessed the emergence of insurtechs or technology-led insurers. The focus of insurtech is mainly on the property and casualty insurance industry. Insurers continue to invest heavily in technology, generative AI in particular, as it is expected to improve basis points, scale and efficiencies. However, the use of technology poses cyber threats.
Zacks Industry Rank Indicates Bright Prospects The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging prospects in the near term. The Zacks Property and Casualty Insurance industry, which is housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #95, which places it in the top 39% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregates. Earnings estimates for 2026 have increased 0.7% year over year.
Before we present a few property and casualty stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and the S&P 500 The Property and Casualty Insurance industry has underperformed its sector and the Zacks S&P 500 composite in a year. The stocks in this industry have collectively gained 0.3% compared with the sector’s increase of 3.5% and the Zacks S&P 500 composite’s increase of 8.8% in the said time frame.
Price Performance
Current Valuation On the basis of the trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.44X compared with the S&P 500’s 8.05X and the sector’s 4.55X.
Over the past five years, the industry has traded as high as 1.74X, as low as 1.18X and at the median of 1.45X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Property and Casualty Insurance Stocks to Bet On Here, we are discussing one Zacks Rank #1 (Strong Buy) stock and four Zacks Rank #2 (Buy) stocks from the P&C Insurance industry.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury General: Headquartered in Los Angeles, Mercury General is an insurance holding company. It is primarily engaged in writing personal automobile lines of business and provides related property and casualty insurance products. Mercury General has been gaining ground by relying on a set of core organic strengths. The Property and Casualty segment has also held up well, signaling a stable backdrop for the company’s operations. These organic drivers are lifting Mercury General’s top line and shaping the path for continued expansion. Mercury General’s strong liquidity position further supports its growth. It sports a Zacks Rank #1.
The Zacks Consensus Estimate for MCY’s 2026 earnings suggests 44% year-over-year growth. The company delivered a four-quarter average earnings surprise of 738.52%. It has a VGM Score of A.
Price and Consensus: MCY
The Hanover Insurance: Headquartered in Worcester, MA, Hanover Insurance is a U.S. property and casualty insurance holding company that sells through independent agents and brokers. The insurer is poised to grow on disciplined underwriting, effective pricing, specialty insurance expansion and rising investment income. Specialty continues to anchor results through disciplined risk selection and improving mix via workflow and technology upgrades. Personal Lines is benefiting from earned pricing and margin initiatives, and management expects policies in force to grow in 2026. This Zacks Rank #2 company remains committed to returning capital to shareholders through a combination of dividends and share repurchases.
The consensus estimate for 2026 earnings has moved 4% north in the past 60 days. The company has a VGM Score of A.
Price and Consensus: THG
Essent Group: Headquartered in Hamilton, Bermuda, Essent Group boasts a strong position in the U.S. private mortgage insurance market, disciplined underwriting, and a capital-light business model. Conservative risk management, high-quality insured portfolio, and robust capital position support resilient earnings across credit cycles while benefiting from structural demand for mortgage insurance. Essent consistently generates strong free cash flow, enabling shareholder-friendly capital allocation through dividends and share repurchases while maintaining regulatory capital buffers. It carries a Zacks Rank #2.The Zacks Consensus Estimate for ESNT’s 2026 and 2027 earnings suggests 5.1% and 6.2% year-over-year growth, respectively. The company delivered a four-quarter average earnings surprise of 1.57%. The expected long-term earnings growth rate is pegged at 5%.
Price and Consensus: ESNT
Selective Insurance Group: Headquartered in Branchville, NJ, Selective Insurance operates as a P&C insurer through 10 subsidiaries across the United States. Selective Insurance is expected to deliver steady earnings over the next year as renewal pricing remains focused on rate adequacy and investment income continues to rise. SIGI continues to prioritize underwriting profitability over aggressive premium growth and raise renewal rates to address elevated loss-cost trends. It is investing heavily in artificial intelligence and technology capabilities but continues to return capital through dividends and repurchases while keeping flexibility for underwriting and investment opportunities. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for SIGI’s 2026 and 2027 earnings suggests 5.9% and 13.3% year-over-year growth, respectively. The consensus estimate for 2026 and 2027 earnings has moved 0.6% and 0.4% north, respectively, in the past 60 days. SIGI has a VGM Score of A.
Price and Consensus: SIGI
Skyward Specialty Insurance Group: Headquartered in Houston, TX, Skyward Specialty Insurance delivers commercial property and casualty products on a non-admitted (E&S) and admitted basis. A&H momentum, disciplined niche underwriting, expense control and Apollo-led fee income support resilient earnings and sustained returns. Strong momentum in accident & health, credit and surety, global agriculture and specialty programs is helping offset pressure in more competitive property and casualty markets. Several new initiatives are expanding Skyward's addressable market. These include participation in autonomous vehicle insurance programs and the launch of life sciences coverage for businesses with international exposure. It carries a Zacks Rank #2.The Zacks Consensus Estimate for SKWD’s 2026 and 2027 earnings suggests 23.3% and 11.8% year-over-year growth, respectively. The consensus estimate for 2026 and 2027 earnings has moved 5.1% and 2% north, respectively, in the past 60 days. The company delivered a four-quarter average earnings surprise of 16.99%. It has a VGM Score of A.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of property and casualty insurance for individuals, families and businesses, announced today it has been named to U.S. News & World Report's list of 2026-2027 Best Companies to Work For. This is the fourth consecutive year the company has earned this distinction.
U.S. News & World Report ranked more than 1,300 companies, evaluating factors such as quality of pay and benefits, work life balance and flexibility, job and company stability, physical and psychological comfort, career opportunities and professional development.
"We are proud to be recognized once again by U.S. News & World Report," said John C. Roche, president and chief executive officer at The Hanover. "This recognition reflects the strength of our culture and our continued commitment to creating an environment where employees feel supported, engaged and inspired to do their best work. We believe that when we invest in our people by providing meaningful opportunities, fostering collaboration and encouraging growth, we help them build rewarding careers while also strengthening our ability to serve our customers and communities."
U.S. News & World Report also recognized The Hanover on its subcategory lists for finance and insurance, for companies in the Northeast, and for those that support family caregiving.
To find out more about employment opportunities at The Hanover, please visit www.hanover.com/careers.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) expects to issue its second quarter financial results after the market closes on Tuesday, July 28, 2026. The company expects to webcast a discussion of its results on Wednesday, July 29, at 10:00 a.m. ET, through its website at hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is The Hanover Insurance Group (THG - Free Report) . THG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.49. Over the past year, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THG has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.23.
Finally, investors will want to recognize that THG has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.29. Over the past 52 weeks, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG feels like a great value stock at the moment.
A strong stock as of late has been Hanover Insurance Group (THG - Free Report) . Shares have been marching higher, with the stock up 2.8% over the past month. The stock hit a new 52-week high of $201.45 in the previous session. Hanover Insurance has gained 9% since the start of the year compared to the 4.3% move for the Zacks Finance sector and the -1.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 29, 2026, Hanover Insurance reported EPS of $5.25 versus consensus estimate of $4.14.
For the current fiscal year, Hanover Insurance is expected to post earnings of $18.36 per share on $6.95 in revenues. This represents a -3.82% change in EPS on a 4.71% change in revenues. For the next fiscal year, the company is expected to earn $18.31 per share on $7.29 in revenues. This represents a year-over-year change of -0.32% and 4.76%, respectively.
Valuation MetricsHanover Insurance may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 10.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Hanover Insurance currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hanover Insurance fits the bill. Thus, it seems as though Hanover Insurance shares could have potential in the weeks and months to come.
How Does THG Stack Up to the Competition?Shares of THG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Mercury General Corporation (MCY - Free Report) . MCY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Mercury General Corporation beat our consensus estimate by 62.79%, and for the current fiscal year, MCY is expected to post earnings of $11.38 per share on revenue of $6.38 billion.
Shares of Mercury General Corporation have gained 1.2% over the past month, and currently trade at a forward P/E of 9.02X and a P/CF of 11.09X.
The Insurance - Property and Casualty industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and MCY, even beyond their own solid fundamental situation.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today announced its board of directors approved a new share repurchase authorization, pursuant to which the company may repurchase up to $700 million of its common stock. At the same time, the company terminated its previous share repurchase program, which had a remaining repurchase authorization of approximately $63 million.
"Our new repurchase authorization demonstrates our confidence in the durability of our earnings and conviction in the path ahead," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "We maintain a disciplined but flexible approach to capital management, balancing investment in the business with meaningful capital returns to shareholders. We remain focused on deploying capital in ways that enhance long–term shareholder value."
Under the new $700 million share repurchase authorization, the company may repurchase its common stock from time to time, in amounts, at prices, and at times the company deems appropriate, subject to market conditions and other considerations. The company's stock purchases may be executed using open market repurchases, privately negotiated transactions, accelerated repurchase programs, or other transactions. The company may establish trading plans under the Securities and Exchange Commission's rule 10b5-1 that will provide additional flexibility as it buys back its stock.
Forward-Looking Statements
Statements regarding capital management flexibility, including future share repurchases, future profitability, and durability of earnings constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance. Investors are directed to consider the risks and uncertainties in the company's business that may cause actual results to differ, including those risks which are discussed in readily available documents, such as the company's annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other documents filed by The Hanover with the Securities and Exchange Commission and which are also available on hanover.com under "Investors."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today announced the expansion of its motorcycle and off-road vehicle (ORV) insurance products, further broadening availability across additional states and reinforcing the company's commitment to delivering broad, total account solutions for agents and customers.
The Hanover has expanded its motorcycle insurance offering into Maryland and Virginia. Its ORV offering is now also available in Maine, New Hampshire, Ohio and Pennsylvania. Key coverage features include:
An agreed value option for motorcycles, helping ensure owners are protected for the full insured value of their bikes Enhanced physical damage coverage for both motorcycles and ORVs that protects what riders invest in, including $1,500 in custom equipment coverage and $1,000 for rider safety apparel Distinctive Hanover Platinum waiver of deductible feature, reinforcing the benefits of consolidating coverage under one carrier when it matters most "These offerings further advance our total account strategy that helps protect our customers' homes, vehicles and lifestyles," said Daniel C. Halsey, president, personal lines at The Hanover. "Recreational lines help our agents deliver a more holistic insurance experience by placing all coverages with a single carrier, improving the customer experience, increasing retention and streamlining the process for both customers and agents."
The Hanover's motorcycle and ORV products are the latest in a series of investments the company has made to deliver a total account experience for its customers through a range of coverage options including umbrella, cyber and collector car, an offering introduced in 2025 through a partnership with Hagerty. Motorcycle and ORV are available to be added to any Hanover auto policy. Motorcycle coverage is available in Connecticut, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania, Tennessee, Virginia and Wisconsin. ORV coverage is available in Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, Ohio, Pennsylvania, Virginia and Wisconsin, with plans to expand to additional states later this year.
For more information about The Hanover's motorcycle and ORV offerings, please visit hanover.com.
ABOUT THE HANOVER
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Have you been paying attention to shares of Hanover Insurance Group (THG - Free Report) ? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $193.32 in the previous session. Hanover Insurance has gained 5% since the start of the year compared to the 0.2% move for the Zacks Finance sector and the -3.3% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Hanover Insurance reported EPS of $5.25 versus consensus estimate of $4.14.
For the current fiscal year, Hanover Insurance is expected to post earnings of $18.45 per share on $6.95 in revenues. This represents a -3.35% change in EPS on a 4.73% change in revenues. For the next fiscal year, the company is expected to earn $18.49 per share on $7.29 in revenues. This represents a year-over-year change of 0.23% and 4.76%, respectively.
Valuation MetricsThough Hanover Insurance has recently hit a 52-week high, what is next for Hanover Insurance? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.5X. On a trailing cash flow basis, the stock currently trades at 9.8X versus its peer group's average of 9.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Hanover Insurance currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hanover Insurance passes the test. Thus, it seems as though Hanover Insurance shares could have potential in the weeks and months to come.
How Does THG Stack Up to the Competition?Shares of THG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HCI Group, Inc. (HCI - Free Report) . HCI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. HCI Group, Inc. beat our consensus estimate by 6.24%, and for the current fiscal year, HCI is expected to post earnings of $17.82 per share on revenue of $959.64 million.
Shares of HCI Group, Inc. have gained 0.1% over the past month, and currently trade at a forward P/E of 8.78X and a P/CF of 6.59X.
The Insurance - Property and Casualty industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and HCI, even beyond their own solid fundamental situation.
Key Takeaways Hanover expanded motorcycle coverage into Maryland and Virginia and ORV into four more states.THG added agreed value coverage, custom equipment and rider apparel protection options.Hanover aims to boost retention and cross-selling through bundled specialty insurance offerings. The Hanover Insurance Group (THG - Free Report) is expanding its motorcycle and off-road vehicle (ORV) insurance offerings across multiple U.S. states as part of its broader strategy to strengthen its total account insurance model. The expansion increases availability of motorcycle coverage into Maryland and Virginia, while ORV coverage has been extended into Maine, New Hampshire, Ohio and Pennsylvania.
Hanover is also enhancing its value proposition through features such as agreed value coverage for motorcycles, expanded protection of $1500 in custom equipment and $1000 in rider apparel, and deductible waivers under its Platinum offering. These differentiated coverage features could help the company attract higher-value customers while strengthening agent relationships in niche recreational insurance markets.
The move highlights Hanover’s focus on deepening customer relationships by offering a wider range of insurance products through a single carrier. By bundling motorcycle, ORV, auto, home and specialty coverages together, the company aims to improve customer retention, increase cross-selling opportunities and simplify policy management for both agents and customers.
The expansion builds on Hanover’s broader investment in specialty personal lines products, including its cyber collector car partnership with Hagerty, launched in 2025. Continued expansion into recreational lines and lifestyle-oriented insurance categories could support premium growth, improve policy retention and strengthen Hanover’s competitive positioning in the personal lines market over time.
How Are Other Auto Insurers Faring?Other Auto Insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) are also expanding their motorcycle insurance presence and strengthening bundled recreational coverage offerings across the United States.
Progressive is expanding its presence in motorcycle, RV and recreational vehicle insurance as insurers increasingly target lifestyle-oriented personal lines markets. PGR continues broadening its motorcycle and RV coverage offerings across the United States with features such as accessory protection, safety apparel coverage and multi-policy bundling benefits aimed at improving customer retention and cross-selling opportunities
Allstate is also strengthening its motorcycle insurance offerings through broader coverage options, bundled policies and rider-focused protection features across multiple U.S. states. ALL continues expanding customizable motorcycle coverage with accessory protection, roadside assistance, rider safety packages and multi-policy bundling benefits to improve customer retention and deepen relationships across personal insurance lines.
THG’s Price Performance, Valuation & EstimatesShares of THG have gained 17.1% against the industry’s decline of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, THG trades at a forward price-to-earnings ratio of 10.39X, down from the industry average of 26.13X. THG carries a Value Score A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimates for 2026 and 2027 earnings moved 10.4% and 3.5% north, respectively, in the last 30 days.
The consensus estimates for THG’s 2026 and 2027 revenues indicate a year-over-year increase.
The consensus estimate for earnings per share is currently pegged at $18.45 for 2026, indicating a 3.3% year-over-year decline.
Hanover stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hanover Insurance Group has successfully engineered margin expansion by pairing steady revenue growth with a disciplined underwriting pivot reducing losses. Trading at a significant 20% P/E discount to the sector median, THG offers a premier entry point with a forward P/E of just 9.38 and a staggering 0.15 PEG ratio. A record-breaking 20.3% Operating ROE underscores management's disciplined underwriting roadmap and its aggressive commitment to shareholder value.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.05. Over the past 52 weeks, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THG has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG feels like a great value stock at the moment.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 22:
Universal Insurance Holdings, Inc. (UVE - Free Report) : This insurance holding company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 18.8% over the last 60 days.
Universal has a price-to-earnings ratio (P/E) of 8.40 compared with 12.70 for the industry. The company possesses a Value Scoreof A.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 9.6% over the last 60 days.
The Hanover Insurance has a price-to-earnings ratio (P/E) of 10.55 compared with 12.70 for the industry. The company possesses a Value Score of A.
Ategrity Specialty Insurance Company Holdings (ASIC - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 9.6% over the last 60 days.
Ategrity Specialty Insurance Company has a price-to-earnings ratio (P/E) of 10.67 compared with 10.70 for the industry. The company possesses a Value Score of B.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, May 22:
Universal Insurance Holdings, Inc. (UVE - Free Report) : This insurance holding company witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.6%, compared with the industry average of 0.8%.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2%, compared with the industry average of 0.8%.
Texas Instruments Incorporated (TXN - Free Report) : This semiconductor company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.5% in the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.7%, compared with the industry average of 0.0%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
Hanover Insurance Group (THG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Hanover Insurance is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Hanover Insurance imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Hanover InsuranceThis insurance company is expected to earn $18.46 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Hanover Insurance. Over the past three months, the Zacks Consensus Estimate for the company has increased 9.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Hanover Insurance to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
It has been about a month since the last earnings report for Hanover Insurance Group (THG - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hanover Insurance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Hanover Insurance Q1 Earnings Top Estimates on Lower Cat Losses
The Hanover Insurance posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%.
Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%.
THG Delivers Better Combined Ratio Despite Cat Losses
Underwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago.
Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio.
Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance.
Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses.
The Hanover’s Core Commercial Segment Benefits From Rate Action
Core Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts.
Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million in the prior-year period.
Specialty net premiums written increased 2.3% year over year to $366.7 million. Renewal price increases were 4.6% and rate increases were 2.4%, indicating steady momentum while maintaining underwriting discipline across the segment’s marine, professional, and other specialty offerings.
The segment produced a combined ratio of 84.2%, an improvement from 87.7% in the prior-year quarter. A lower total loss and loss adjustment expense ratio of 47.8% (down from 50.7%) helped lift GAAP underwriting profit to $56.1 million from $41.2 million, while the expense ratio was 36.4% compared with 37.0% a year earlier.
The Hanover’s Personal Lines Segment Mixed as Pricing Stays Firm
Personal Lines net premiums written rose 2.7% year over year to $562.6 million. Renewal price increases were 8.4% and rate increases were 4.3%, underscoring continued pricing traction as the company works to improve profitability in auto and homeowners lines.
Even with that pricing support, results were more mixed. The segment’s combined ratio was 91.5% compared with 89.7% a year earlier, as catastrophe losses remained elevated for the book, with a current-year catastrophe loss ratio of 12.4% versus 5.8% in the prior-year quarter. The total loss and LAE ratio was 65.8% compared with 64.4% a year ago, and GAAP underwriting profit totaled $52.3 million, down from $61.7 million.
THG Balance Sheet Advances With Book Value Increase
Hanover ended the quarter with book value per share of $101.86, up 1% from Dec. 31, 2025.
The investment portfolio expanded, with total investments rising 4% to $10.80 billion as of March 31, 2026, including fixed maturities of $9.98 billion. The company also reduced leverage, with short-term debt falling to $50.1 million from $375.0 million and long-term debt declining to $793.7 million from $843.3 million.
As of March 31, 2026, the operating insurance company's statutory capital and surplus were $3.54 billion, up from $3.34 billion as of Dec. 31, 2025.
Capital Deployment
From the start of the year till April 28, 2026, THG repurchased about 0.6 million shares for $101 million, of which about 0.5 million were repurchased during the first quarter of 2026 for $87 million. The company has about $72 million of remaining capacity under its existing share repurchase program.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 6.99% due to these changes.
VGM ScoresCurrently, Hanover Insurance has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hanover Insurance has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today its board of directors has declared a quarterly dividend of $0.95 per share on the issued and outstanding common stock of the company, payable June 26, 2026, to shareholders of record at the close of business on June 12, 2026.
Forward-Looking Statements
Statements regarding quarterly or future dividends, whether regular or special, payable to the company's shareholders, which may be subject to future increases, decreases, or elimination, as determined by The Hanover's board of directors, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance, including but not limited to, growth, earnings improvement, returns, future dividend payments, or the amount of such payments. Investors are directed to consider the risks and uncertainties in the company's business that may cause actual results to differ and/or affect the board's decision to declare dividends in the future, including those risks which are discussed in readily available documents, such as the company's annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other documents filed by The Hanover with the Securities and Exchange Commission and which are also available on hanover.com under "Investors."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
The Hanover's new survey highlights uncertainty around homeowners insurance coverage
, /PRNewswire/ -- 90% of homeowners¹ expressed concern about protecting their homes and personal property, but many don't know what their homeowners insurance protection covers, according to a new survey conducted by The Harris Poll on behalf of The Hanover Insurance Group, Inc. (NYSE: THG).
The Hanover's 2026 Home Report: The Coverage Confidence Gap shows that many homeowners buy insurance protection without checking to see what their policy covers. For example, many homeowners haven't verified that the following valued protections are part of their standard policy or require an additional purchase:
Identity fraud protection (helps cover costs to restore identity after fraud or identity theft) — 46% have not verified Service line coverage (repair or replacement of underground utility lines on a property, such as water or sewer lines) — 41% have not verified Water backup coverage (for damage to property caused by backed-up drains or sump pump overflow, not to be confused with flood insurance) — 38% have not verified Personal property replacement cost (replaces items with new equivalents at current prices) — 24% have not verified These coverages are not always automatically included in insurance quotes and can vary by carrier or policy tier.
The findings come at a time when homeowners report broad concern about protecting their homes and personal property. Homeowners cite regular repair costs (45%), damage from severe weather or natural disasters (42%), and non‑weather‑related events such as water leaks and fires (32%) as top concerns.
At the same time, the survey shows that homeowners prioritize comprehensive protection when choosing an insurance carrier and evaluating trade-offs between protection and price:
81% say comprehensive protection, with no coverage gaps or surprises, is absolutely essential or very important 74% say they would prefer a policy with broader protection, even if it costs more, over a homeowners insurance policy that provides fewer protections but costs less Together, the findings point to a gap between homeowners' preference for comprehensive protection and their confidence in what their policies provide.
"For many people, a home is their most important asset. Homeowners want confidence their insurance will protect them when it matters most, yet many aren't fully certain what their policies include," said Daniel C. Halsey, president of personal lines at The Hanover. "While price will always be a factor, choosing coverage based on cost alone can leave people under-protected and facing higher out-of-pocket expenses after a loss. Talking with an independent insurance agent can help homeowners understand their coverage, identify potential gaps and make more confident decisions about protecting their homes and financial well‑being."
To read the full 2026 Home Report: The Coverage Confidence Gap and learn more about home protection, please visit hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
CONTACTS:
¹ For the purposes of this report, homeowners refer to those individuals who own a house.
Survey method
This survey was conducted online within the United States by The Harris Poll on behalf of The Hanover from March 5-9, 2026 among 1,173 adults ages 18 and older who own a house. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.6 percentage points using a 95% confidence level.
For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
This material is provided for informational purposes only and does not provide any coverage or guarantee prevention of loss. All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates ("The Hanover"). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. (For more information visit www.hanover.com.)
Key Takeaways THG maintains pricing above loss trends, helping support underwriting margins across segments.The Hanover expects Specialty growth to accelerate, led by Marine and technology investments.THG repurchased about $101M of stock as net investment income climbed 19.6% in Q1. Shares of The Hanover Insurance Group, Inc. (THG - Free Report) have gained 8.5% in the past year against the industry decline of 4.8%, while underperforming the Finance sector and the Zacks S&P 500 composite’s growth of 13.6% and 31.6%, respectively.
Disciplined underwriting, effective Pricing, specialty insurance expansion and rising investment income are likely driving the stock. The momentum can continue if pricing remains favorable and claims trends stay under control, though catastrophe losses, competitive pricing pressure and social inflation remain key risks.
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Some other insurers, like American Financial Group, Inc. (AFG - Free Report) and Mercury General Corporation (MCY - Free Report) , have risen 4.5% and 51.3%, respectively, in the past year. Meanwhile, shares of Arch Capital Group Ltd. (ACGL - Free Report) have lost 6.6% in the past year.
THG Shares Are ExpensiveIts shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.83X is higher than the industry average of 1.35X.
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THG’s Growth ProjectionThe Zacks Consensus Estimate for 2026 and 2027 revenues implies a year-over-year improvement of 4.7% and 4.8%, respectively.
The estimate for 2026 and 2027 earnings per share indicates a decrease of 3.8% and 0.3%, respectively.
Analysts' Opinion on THG Moves SouthThe consensus estimate for 2026 and 2027 earnings has moved 0.5% and 0.1% south, respectively, in the past 30 days.
THG’s Favorable Return on CapitalReturn on equity (ROE) for the trailing-12 months was 17.8%, compared favorably with the industry’s 6%. This reflects its efficiency in utilizing shareholders’ funds.
Return on invested capital in the trailing-12 months was 12.5%, better than the industry average of 5.7%, reflecting THG’s efficiency in utilizing funds to generate income.
THG’s Average Target Price Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $206.38 per share. The average suggests a potential 10.8% upside from the last closing price.
Key Points to Note for THGThe Hanover’s pricing remains above loss trends across commercial and personal lines, supporting durable underwriting margins even as property markets soften. Management continues to expect pricing to rise in 2026 in commercial and personal auto liability, and retention has remained steady in commercial lines. With balanced net premiums written growth of 3.2% in first-quarter 2026, pricing discipline should keep underlying margins resilient even if growth stays measured.
Specialty continued to deliver attractive underwriting margins in first-quarter 2026. Management expects overall Specialty growth to ramp up, with Marine expected to return to upper single-digit growth for the rest of 2026. Technology investments, including AI-enabled triage and workflow modernization, are intended to improve speed to answer and mix quality, supporting Specialty’s role as a stabilizer as property competition evolves.
Personal Lines is benefiting from earned pricing and margin initiatives. As geographic diversification and full-account strategies scale, the segment has room to contribute steadier earnings and support consolidated results through the cycle.
Management continues to reinvest at higher yields than maturities, supporting growing investment. This has strengthened the company's investment portfolio returns and provided an additional source of earnings growth beyond underwriting operations.
THG remains committed to returning capital to shareholders through a combination of dividends and share repurchases.
ConclusionTHG is positioned to deliver steady earnings growth through premium rate increases, sustained pricing above trend, specialty strength and rising investment income. The company's diversified commercial and personal lines portfolio and ongoing share repurchases provide additional support for earnings and shareholder returns.
Coupled with premium expansion, strong underwriting discipline and higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today’s Zacks #1 Rank stocks here.
The new Quant Growth & Income Portfolio targets both capital appreciation and dividend yield. QG&I's diversified holdings include Exxon (XOM), EPR Properties (EPR), and Hanover Insurance Group (THG), each selected for strong value, growth, profitability, momentum, and EPS revisions.
