The Hanover Reports Record Fourth Quarter Net Income and Operating Income of $5.47 and $5.79 per Diluted Share, Respectively; Record Full-Year Net Income and Operating Income of $18.16 and $19.09 per Diluted Share, Respectively [Accessibility Statement] Skip NavigationFourth Quarter Highlights- On December 1, 2025, the Board of Directors approved an increase of 5.6% to the ordinary quarterly cash dividend- Book value per share of $100.90, up 5.1% from September 30, 2025- Net investment income of $125.8 mill ...

Core Viewpoint - The Hanover Insurance Group, Inc. will participate in a fireside chat at the Bank of America Securities Financial Services Conference on February 10, 2026, featuring CEO John C. Roche and CFO Jeffrey M. Farber [1]. Group 1 - The fireside chat is scheduled from 2:40 p.m. to 3:20 p.m. Eastern Time on February 10, 2026 [1]. - Roche and Farber will also conduct one-on-one and group meetings with investors on the same day [1]. - The event will be broadcast live on the company's website, with a replay available afterward [2]. Group 2 - The Hanover Insurance Group is a holding company for several property and casualty insurance companies, making it one of the largest insurance businesses in the United States [4]. - The company provides insurance solutions through a select group of independent agents and brokers, offering both standard and specialized insurance protection for small and mid-sized businesses, as well as personal items [4].

Core Viewpoint - Hanover Insurance Group (THG) shares are experiencing a slow start to 2026, likely due to severe winter weather in the U.S. impacting Q1 2026 results, although THG stock is outperforming the market overall [1] Group 1 - THG stock is affected by adverse weather conditions, which may lead to a negative impact on financial performance in the first quarter of 2026 [1] - Despite the challenges posed by winter weather, THG stock is noted to be outperforming its peers in the market [1]

Core Viewpoint - Hanover Insurance Group (THG) has experienced significant selling pressure, resulting in an 8.8% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if THG is oversold, with a current RSI reading of 24.88, suggesting that the stock is in oversold territory and may soon experience a trend reversal [2][5]. - The RSI serves as a momentum oscillator that measures price movement speed and change, oscillating between zero and 100, with readings below 30 indicating oversold conditions [2][3]. Group 2: Fundamental Indicators - Analysts covering THG have shown a strong consensus in raising earnings estimates for the current year, resulting in a 0% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - THG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - The Hanover Insurance Group (THG) is identified as a strong value stock, currently undervalued compared to its industry peers, with favorable valuation metrics indicating potential investment opportunities [4][5][6][7]. Valuation Metrics - THG holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 10.86, significantly lower than the industry average of 28.09, suggesting it is undervalued [4]. - THG's P/S ratio stands at 1.01, compared to the industry's average of 1.35, reinforcing its undervaluation [5]. - The P/CF ratio for THG is 11.21, which is attractive against the industry's average of 12.56, further indicating potential undervaluation [6]. Earnings Outlook - The strength of THG's earnings outlook, combined with its favorable valuation metrics, positions it as one of the market's strongest value stocks [7].

Group 1 - The Hanover Insurance Group, Inc. plans to release its fourth quarter and full-year financial results on February 3, 2026, after market close [1] - A webcast discussing the financial results is scheduled for February 4, 2026, at 10:00 a.m. ET, available on the company's website [1] - 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 [2] Group 2 - The company offers both standard and specialized insurance protection for small and mid-sized businesses, as well as personal insurance for homes and automobiles [2] - The Hanover Insurance Group operates as a holding company for several insurance companies, emphasizing its extensive reach in the insurance market [2]

Group 1 - Aflac Inc reported a strong performance with a 10% increase in net premiums written, reaching $5.5 billion [1] - Principal Financial Group Inc experienced a 15% growth in assets under management, totaling $1.8 trillion [1] - The Hanover Insurance Group Inc showed a 12% rise in net income, amounting to $300 million [1] Group 2 - The insurance sector is witnessing increased demand for innovative products and services, driven by changing consumer preferences [1] - Regulatory changes are impacting the operational landscape for these companies, necessitating strategic adjustments [1] - Market competition is intensifying, with companies focusing on digital transformation to enhance customer engagement [1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own equities research firm, Albert Anthony & Company, remotely, and is actively involved in the REIT investment space [1] Company Background - Albert Anthony & Company is a Texas-registered boutique equities research firm managed entirely by Anthony [1] - The firm focuses on delivering actionable insights based on publicly available data and analysis [1] Professional Credentials - Anthony holds a B.A. in Political Science from Drew University and has certifications in Microsoft Fundamentals and CompTIA Project+ [1] - He is currently pursuing ongoing certifications in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis through the Corporate Finance Institute [1] Media Presence - Anthony has a growing presence on YouTube, where he discusses REITs and shares insights from his investment portfolio [1] - He has participated in numerous business and innovation conferences, enhancing his visibility in the industry [1]

Core Insights - The Hanover Insurance Group has launched a new property insurance product called Hanover Specialty Industrial Property (HSIP) Advantage, aimed at modernizing coverage for small to mid-sized businesses dealing with high-hazard products and materials [1][2][3] Product Features - HSIP Advantage is available for new business starting October 1, 2025, and for renewal business from February 1, 2026, offering a modular solution that can be customized with new coverages and endorsements to address modern risks [2] - The product features clear policy language and a straightforward design, simplifying admitted property insurance for complex, sprinklered property risks [2][3] - Key features include building and business personal property coverage, business income and extra expense coverage, a broadening endorsement with 12 new coverages and 19 protections, amended limits of insurance and deductibles endorsement, and new valuation options [6] Company Commitment - The Hanover emphasizes its commitment to addressing the specialty coverage needs of small and middle market customers, aiming to provide innovative tools and resources to agents and brokers [4][5]

Financial Performance - Net income for the nine months ended September 30, 2025, was $464.0 million, an increase of 79.8% compared to $258.1 million for the same period in 2024[105]. - Operating income before interest expense and income taxes for the nine months ended September 30, 2025, was $644.0 million, up 62.7% from $395.7 million in the prior year[106]. - Operating income before interest expense and income taxes increased to $247.7 million for the three months ended September 30, 2025, compared to $150.6 million for the same period in 2024, an improvement of 64.4%[125]. - Total operating revenues for the three months ended September 30, 2025, were $1,674.0 million, up from $1,577.7 million in 2024, reflecting a 6.1% increase[124]. - The company reported a net favorable development on prior years' loss reserves of $50.3 million for the nine months ended September 30, 2025, compared to $41.8 million in the same period of 2024[107]. Premiums and Underwriting - Net premiums written in the Core Commercial segment increased by 3.9% in the first nine months of 2025, driven by renewal price increases and new business[109]. - Specialty segment net premiums written rose by 6.1% in the first nine months of 2025, primarily due to renewal price increases and new business[111]. - Personal Lines net premiums written increased by 3.4% in the first nine months of 2025, attributed to renewal price increases and increased new business[113]. - Operating income before interest expense and income taxes for the Personal Lines segment improved significantly to $252.7 million for the nine months ended September 30, 2025, compared to $10.2 million in the same period of 2024[112]. - Core Commercial net premiums written were $1,760.9 million for the nine months ended September 30, 2025, compared to $1,695.0 million in the same period of 2024, an increase of $65.9 million[153]. Catastrophe Losses - Pre-tax catastrophe losses decreased to $249.3 million for the nine months ended September 30, 2025, down 28.8% from $349.9 million in the same period of 2024[107]. - Catastrophe losses decreased to $17.8 million for the three months ended September 30, 2025, from $31.7 million in 2024, a reduction of 43.5%[133]. - Catastrophe losses for the nine months ended September 30, 2025, were $127.5 million, a decrease of $120.1 million from $247.6 million in the same period of 2024[160]. - Catastrophe loss development for the nine months ended September 30, 2025, was favorable at $18.0 million, down from $37.0 million in 2024, indicating a decrease of about 51.4%[168]. Investment Income - Net investment income increased to $117.0 million for the three months ended September 30, 2025, compared to $91.8 million in 2024, a growth of 27.4%[130]. - Net investment income for the nine months ended September 30, 2025, was $117.0 million, an increase of 27.4% from $91.8 million in 2024[182]. - The earned yield on fixed maturities increased to 4.33% for the three months ended September 30, 2025, up from 3.73% in 2024[182]. - Net impairment losses for the nine months ended September 30, 2025, were $3.0 million, down from $5.5 million in the same period of 2024[194]. Cash Flow and Capital Management - Net cash provided by operating activities was $799.9 million for the first nine months of 2025, an increase of $207.0 million from $592.9 million in the same period of 2024[221]. - Net cash used in investing activities was $642.6 million during the first nine months of 2025, compared to $390.8 million in the same period of 2024[222]. - Net cash provided by financing activities was $324.8 million during the first nine months of 2025, compared to net cash used of $90.7 million in the same period of 2024[223]. - Total statutory capital and surplus for insurance subsidiaries increased by $301.4 million to $3,273.1 million as of September 30, 2025, compared to $2,971.7 million at December 31, 2024[218]. Shareholder Returns and Stock Repurchase - The company paid $150.0 million in dividends to its parent company during the first nine months of 2025[219]. - During the first nine months of 2025, THG repurchased approximately 447,000 shares at an aggregate cost of $74.9 million, with a total of approximately 8.5 million shares repurchased under the $1.3 billion program[229]. - The Board of Directors authorized a stock repurchase program of up to $1.3 billion, with approximately 447,000 shares repurchased at a cost of $74.9 million during the first nine months of 2025[229]. Economic Environment - The U.S. economy showed resilience in Q3 2025, with strong consumer spending, while the Federal Reserve announced its first rate cut of the year, reducing the federal funds target to a range of 4.00% to 4.25%[203].