Core Points - The Hanover Insurance Group, Inc. will hold its annual meeting of shareholders on May 13, 2025, at 9:00 a.m. ET at its headquarters in Worcester, Massachusetts [1] - Shareholders of record as of March 20, 2025, are entitled to participate in the meeting and are encouraged to vote by submitting valid proxies in advance or by attending in person [2] - The Hanover Insurance Group is one of the largest property and casualty insurance businesses in the United States, providing insurance solutions through independent agents and brokers [3]

Group 1 - The Hanover Insurance Group (THG) is currently rated 2 (Buy) by Zacks and has a Value grade of A, indicating strong potential for value investors [3][5] - THG's P/E ratio stands at 10.25, significantly lower than the industry average of 28.44, suggesting it may be undervalued [3][5] - The stock's Forward P/E has fluctuated between 10.12 and 13.52 over the past year, with a median of 11.39, indicating stable earnings expectations [3] Group 2 - The P/S ratio for THG is 0.9, compared to the industry's average P/S of 1.24, further supporting the notion of undervaluation [4][5] - These valuation metrics suggest that THG is likely being undervalued in the current market, making it an attractive option for value investors [5]

Core Viewpoint - The Hanover Insurance Group, Inc. is experiencing significant growth, with a record performance in 2024 and positive expectations for 2025, making it a strong investment opportunity in the current market uncertainty [1][6]. Financial Performance - In Q4 2024, Hanover reported earnings of $5.32 per share, exceeding the Zacks Consensus Estimate of $3.45 by $1.87, maintaining a perfect earnings surprise track record over the past five years [3][4]. - The full-year operating earnings reached $13.34 per share, the highest in the company's history, with an improved ex-CAT combined ratio of 88.4%, a decrease of 2.9 points [4]. Shareholder Returns - The company resumed share buybacks in Q4, repurchasing approximately 170,000 shares for $26.7 million, with $303 million remaining under the existing repurchase program [5]. - The quarterly dividend was increased by 5.9% to $0.90 per share, marking the 20th consecutive year of dividend increases, resulting in a yield of 2.1% [5]. Analyst Outlook - Analysts are optimistic about Hanover's performance in 2025, with the Zacks Consensus Estimate for earnings revised up to $14.47, indicating an 8.5% growth [6]. - For 2026, the consensus estimate is projected at $16.05, reflecting a further 10.9% earnings growth [7]. Market Position - Hanover's shares have shown resilience, up 3.4% year-to-date, outperforming the S&P 500, despite market volatility [9]. - The stock is considered undervalued, trading at a forward price-to-earnings (P/E) ratio of 11.9, making it an attractive option for investors seeking growth and dividend stability [11].

Core Insights - The Hanover Insurance Group has appointed Richard W. Lavey as the chief operating officer to enhance business strategy and integration between business and technology [1][4] - Lavey will continue to oversee personal lines and core commercial sectors, including small and middle market businesses, as well as sales, distribution, corporate underwriting, marketing, and risk solutions [2][3] Leadership Background - Richard W. Lavey has over 35 years of experience in the insurance and technology sectors, with a strong understanding of The Hanover's business model and strategic initiatives [3] - Prior to joining The Hanover in 2004, Lavey held significant roles at The Hartford and worked in software companies and as a strategy consultant [3] Company Overview - The Hanover Insurance Group is a major player in the U.S. property and casualty insurance market, providing insurance solutions through independent agents and brokers [6] - The company offers a range of insurance products for small and mid-sized businesses, as well as personal insurance for homes and automobiles [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Hanover Insurance Group (THG) - Hanover Insurance Group currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4]. Price Performance - THG shares have increased by 0.4% over the past week, while the Zacks Insurance - Property and Casualty industry has decreased by 0.03% [6]. - Over the past month, THG's price change is 8.48%, outperforming the industry's 5.45% [6]. - In the last quarter, THG shares rose by 12.15%, and over the past year, they increased by 33.87%, compared to the S&P 500's -4.28% and 11.56% respectively [7]. Trading Volume - THG's average 20-day trading volume is 271,955 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, three earnings estimates for THG have been revised upwards, increasing the consensus estimate from $13.69 to $14.63 [10]. - For the next fiscal year, three estimates have also moved higher, with no downward revisions [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, THG is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking short-term gains [12].

WORCESTER, Mass., March 19, 2025 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) expects to issue its first quarter financial results after the market closes on Wednesday, April 30. The company expects to webcast a discussion of its results on Thursday, May 1, at 10:00 a.m. ET, through its website at hanover.com.About The HanoverThe Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance ...

WORCESTER, Mass., Feb. 24, 2025 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today its board of directors has declared a quarterly dividend of $0.90 per share on the issued and outstanding common stock of the company, payable March 28, 2025, to shareholders of record at the close of business on March 14, 2025. Forward-Looking StatementsStatements regarding quarterly or future dividends, whether regular or special, payable to the company's shareholders, which may be subject to futu ...

Premiums Written - The Hanover Insurance Group generated approximately $6.1 billion in net premiums written for 2024, reflecting a 4.7% increase from the prior year[11]. - The Core Commercial segment accounted for $2.2 billion, or 36.1%, of net premiums written, with commercial multiple peril coverage representing 50.9% of this segment[15][16]. - The Specialty segment generated $1.4 billion, or 22.6%, of net premiums written, with Professional and Executive Lines contributing 32.0% of this segment's total[23][24]. - The Personal Lines segment produced $2.5 billion, or 41.3%, of net premiums written, with personal automobile coverage making up 58.2% of this segment[28][29]. - The total net premiums written for Core Commercial, Specialty, and Personal Lines in 2024 amounted to $6,083.6 million[36]. Underwriting and Risk Management - The company maintains a disciplined underwriting and pricing strategy to improve overall business mix and underwriting profitability[11]. - The company focuses on diversifying its underwriting risks, with approximately 41% of its business in Personal Lines, 36% in Core Commercial, and 23% in Specialty[32]. - The company employs pricing teams that produce exposure and experience-based rating models to support underwriting and pricing decisions[44]. - The company utilizes a variety of reinsurance agreements to control exposure to large property and casualty losses and stabilize earnings[49]. - The company has diversified its exposure to credit risk by reinsuring with multiple reinsurers, requiring a minimum policyholder surplus of $500 million and a rating of "A" or better[81]. Geographic and Market Focus - The company is focused on increasing geographic diversification in its Personal Lines business to reduce risk concentrations in core states[30]. - In 2024, the company wrote 19.0% of its Core Commercial, Specialty, and Personal Lines business in Michigan, and 8.2% in Massachusetts[33]. - Approximately 88% of the company's policies in force are account business, with 50% of Personal Lines net premiums written generated in Michigan and Massachusetts combined[37]. - The company maintains 33 local offices across 23 states, focusing on strong agency relationships to secure and retain the best accounts[33]. - Independent agents account for nearly all sales in Core Commercial and Personal Lines, with performance monitored for profitability and growth[34]. Reinsurance and Catastrophe Protection - The property catastrophe occurrence excess of loss reinsurance program provides coverage up to $1.6 billion with a retention of $200 million, and Northeast named storm events coverage up to $1.9 billion with the same retention[54]. - The casualty excess of loss treaty for 2024 provides coverage up to $75 million with a retention of $2.5 million, and a co-participation of 3.5% in the $2.5 million to $5 million layer[63]. - As of December 31, 2024, total reinsurance recoverables from various sources amount to $1,994.5 million, including $874.8 million from mandatory residual markets[73]. - The Michigan Catastrophic Claims Association (MCCA) accounted for 52% of total personal automobile gross reserves as of December 31, 2024[74]. - The company intends to renew its reinsurance treaties in July 2025 with similar terms, but there is no assurance of maintaining current levels[56]. Financial Reserves - Statutory reserve for losses and loss adjustment expenses (LAE) was $5,733.2 million as of December 31, 2024, an increase from $5,618.7 million in 2023[93]. - The GAAP reserve for losses and LAE was $7,461.2 million as of December 31, 2024, compared to $7,308.1 million in 2023[93]. - The company established a reserve for uncollectible reinsurance of $6.5 million as of December 31, 2024, representing 0.3% of the total reinsurance recoverable balance[80]. - Total reserves for the assumed accident and health business were $107.2 million as of December 31, 2024, with long-term care accounting for approximately 72% of these reserves[94]. - The company has no significant exposure to uncollectible reinsurance balances from the MCCA, as no significant uncollectible balances have been identified during the past three years[74]. Employee Relations and Development - The company employs around 4,900 employees, all located in the United States, with positive employee relations evidenced by feedback from surveys[106]. - The company emphasizes employee development and succession planning through various learning and development programs, including mentorship and tuition reimbursement[110]. - The compensation philosophy is based on a merit system, with most employees receiving some form of short-term incentive compensation[112]. - The company has transitioned to a fully hybrid work environment to enhance employee engagement and retention[114]. - Management is focused on fostering an inclusive and diverse workforce, supported by a multi-year educational program on inclusive leadership[115].

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its di ...

The Hanover Insurance Group, Inc. (NYSE:THG) Q4 2024 Earnings Conference Call February 5, 2025 10:00 AM ET Company Participants Oksana Lukasheva - Senior Vice President, Corporate Finance Jack Roche - President & Chief Executive Officer Jeff Farber - Chief Financial Officer Dick Lavey - President, Agency Markets Bryan Salvatore - President, Specialty Lines Conference Call Participants Bob Huang - Morgan Stanley Michael Phillips - Oppenheimer Paul Newsome - Piper Sandler Meyer Shields - KBW Bob Farnam - Jann ...