Compared to Estimates, Hanover Insurance (THG) Q1 Earnings: A Look at Key Metrics

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]