Financial Performance - Hanover Insurance Group reported $1.62 billion in revenue for the quarter ended March 2025, a year-over-year increase of 4.9% [1] - The EPS for the same period was $3.87, compared to $3.13 a year ago, representing an EPS surprise of +8.10% against the consensus estimate of $3.58 [1] - The reported revenue was a surprise of -1.51% compared to the Zacks Consensus Estimate of $1.65 billion [1] Key Metrics - GAAP Loss and LAE Ratio was 63.3%, slightly better than the estimated 63.7% [4] - GAAP Expense Ratio was reported at 30.8%, compared to the estimated 30.5% [4] - GAAP Combined Ratio was 94.1%, slightly better than the estimated 94.2% [4] - Premiums earned were $1.51 billion, below the four-analyst average estimate of $1.54 billion, but showed a year-over-year change of +4.1% [4] - Net investment income was $106.10 million, exceeding the average estimate of $101.72 million, with a year-over-year change of +18.3% [4] Segment Performance - Core Commercial - Loss and LAE Ratio was 70%, worse than the estimated 65.1% [4] - Personal Lines - Net Premiums Earned were $627.90 million, below the three-analyst average estimate of $639.92 million, with a year-over-year change of +4.9% [4] - Core Commercial - Net Premiums Earned were $541 million, slightly below the estimated $549.22 million, representing a +2.3% change year-over-year [4] Stock Performance - Shares of Hanover Insurance have returned -5.1% over the past month, compared to the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Hanover Insurance Group reported quarterly earnings of $3.87 per share, exceeding the Zacks Consensus Estimate of $3.58 per share, and up from $3.13 per share a year ago, representing an earnings surprise of 8.10% [1] - The company posted revenues of $1.62 billion for the quarter ended March 2025, which was 1.51% below the Zacks Consensus Estimate, compared to $1.55 billion in the same quarter last year [2] - Over the last four quarters, Hanover Insurance has surpassed consensus EPS estimates three times [2] Stock Performance - Hanover Insurance shares have increased approximately 7.3% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] - The current status of estimate revisions for Hanover Insurance is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.02 on revenues of $1.67 billion, and for the current fiscal year, it is $14.20 on revenues of $6.73 billion [7] - The outlook for the insurance industry, particularly the Property and Casualty sector, is favorable, with the Zacks Industry Rank placing it in the top 17% of over 250 Zacks industries [8]

The Hanover Insurance Group, Inc. First Quarter 2025 Results April 30, 2025 To be read in conjunction with the press release dated April 30, 2025, and conference call scheduled for May 1, 2025. Please also see important information regarding forward-looking statements and additional risks and uncertainties at the end of this presentation. 1 Excellent First Quarter 2025 Operating Results (1) See information about this and other non-GAAP measures and definitions used throughout this presentation on the final ...

Financial Performance - Gross premiums written for Q1 2025 were $1,689.9 million, a 3.9% increase from Q1 2024's $1,625.8 million[8] - Net premiums earned in Q1 2025 reached $1,508.5 million, reflecting a 4.1% growth compared to $1,448.6 million in Q1 2024[10] - Operating income after taxes for Q1 2025 was $141.8 million, up 27.5% from $111.9 million in Q1 2024[8] - Net income for Q1 2025 increased to $128.2 million, an 11.0% rise from $115.5 million in Q1 2024[10] - Total revenues for Q1 2025 were $1,603.2 million, a 3.4% increase from $1,551.1 million in Q1 2024[10] - Total assets as of March 31, 2025, were $15,470.3 million, up from $14,594.1 million a year earlier[8] - Total shareholders' equity increased to $3,044.4 million in Q1 2025, compared to $2,522.7 million in Q1 2024[8] - Net investment income for Q1 2025 was $106.1 million, an 18.3% increase from $89.7 million in Q1 2024[10] - Total liabilities slightly decreased by 0.1% to $12,425.9 million from $12,432.7 million[12] - Shareholders' equity increased by 7.1% to $3,044.4 million from $2,841.8 million[12] Underwriting and Loss Ratios - GAAP underwriting profit for Q1 2025 was $82.9 million, an increase from $60.7 million in Q1 2024[16] - Loss and LAE ratio for Q1 2025 was 63.3%, compared to 64.6% in Q1 2024[16] - Current year catastrophe losses in Q1 2025 amounted to $107.6 million, up from $93.9 million in Q1 2024[16] - The combined ratio for Q1 2025 was 94.1%, an improvement from 95.5% in Q1 2024[16] - The current year loss and LAE ratio, excluding catastrophe losses, was 59.2% for Q1 2025, down from 65.6% in Q1 2024[31] Investment Performance - Total investments rose by 3.0% to $9,689.5 million compared to $9,409.8 million[12] - Net investment income for Q1 2025 was $30.5 million, an increase from $25.6 million in Q1 2024[35] - The total fixed maturities were valued at $8,808.3 million, with a fair value of $9,178.7 million, representing 88.0% of total investments[38] - The weighted average duration of fixed maturities is 4.5 years, with 30.5% of the maturities falling within the 6-8 year range[42] - The total unrealized loss in fixed maturities year-to-date was $(370.4) million, with a net unrealized gain of $138.9 million[38] Shareholder Information - The Hanover Insurance Group's common stock price ranged from $174.61 to $147.13 in Q1 2025, with a dividend of $0.900 per share[63] - In 2024, the stock price ranged from $136.58 to $122.20 in Q1, with consistent dividends of $0.850 per share for Q2 and Q3, and $0.900 in Q4[63] Ratings and Financial Strength - The Hanover Insurance Company holds an A rating from A.M. Best and an A rating from S&P for financial strength[64] - The company's senior debt is rated bbb+ by A.M. Best, BBB by S&P, and Baa2 by Moody's[64] - The subordinated debentures are rated bbb- by A.M. Best, BB+ by S&P, and Baa3 by Moody's[64] Strategic Initiatives - New product development and market expansion strategies are being prioritized to enhance growth in 2025[20]

Core Financial Performance - The Hanover Insurance Group reported net income of $128.2 million, or $3.50 per diluted share, for Q1 2025, an increase from $115.5 million, or $3.18 per diluted share, in Q1 2024 [2][4] - Operating income was $141.8 million, or $3.87 per diluted share, compared to $111.9 million, or $3.08 per diluted share, in the prior-year quarter [2][4] - The company achieved a net return on equity of 17.4% and an operating return on equity of 17.2% in Q1 2025 [2][4] Underwriting and Premiums - Net premiums written increased by 3.9% to $1,510.8 million in Q1 2025, compared to $1,454.0 million in Q1 2024 [4][5] - The combined ratio improved to 94.1% from 95.5% in the prior-year quarter, with a combined ratio excluding catastrophes at 87.8% compared to 89.5% [4][5] - Catastrophe losses amounted to $95.6 million, contributing 6.3 points to the combined ratio [5] Segment Performance - Core Commercial operating income before taxes was $26.8 million, down from $71.5 million in Q1 2024, with a combined ratio of 103.4% compared to 93.9% [6][9] - Specialty segment operating income before taxes increased to $64.6 million from $58.8 million, with a combined ratio of 87.7% [10][13] - Personal Lines operating income before taxes surged to $94.2 million from $18.9 million, with a combined ratio of 89.7% [15][19] Investment Income - Net investment income rose by 18.3% to $106.1 million, driven by higher earned yields and cash flows from operations [20][21] - The total pre-tax earned yield on the investment portfolio increased to 4.14% from 3.70% in the prior-year quarter [20] Shareholder Actions - The company repurchased approximately 173,000 shares of common stock for a total of $28.4 million year-to-date through April 29, 2025 [25] - Book value per share increased by 6.8% to $84.56 from December 31, 2024, reflecting strong earnings and a decrease in unrealized losses [23]

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].