We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why You Should Stay Invested in Hanover Insurance (THG) Stock
Read MoreHide Full Article
The Hanover Insurance Group’s (THG - Free Report) growth in the Core Commercial and Specialty segments, stable retention, better pricing, strong market presence and solid capital position poise it well for growth.
Shares have gained 6.5% year to date, compared with the industry’s increase of 16.6%. The insurer carries a Zacks Rank #3 (Hold).
Hanover Insurance believes that it is well-positioned to achieve a long-term return on equity target of 14% or higher by 2026 on better rates and prudent cost management.
Optimistic Growth Projection
The Zacks Consensus Estimate for THG’s 2024 earnings is pegged at $10.67 per share, indicating an increase of 584% on 4.5% higher revenues of $6.3 billion. The Zacks Consensus Estimate for 2025 earnings is pegged at $13.18 per share, indicating an increase of 23.5% on 6.2% higher revenues of $6.7 billion.
Focus on pricing segmentation and mix management, rate increase, as well as an emphasis on growth in target states, product lines and industry classes in the middle market should continue to benefit Hanover Insurance. The company has gradually transformed into a more balanced and differentiated property and casualty franchise.
Hanover Insurance is a leading carrier for specialty focus small to mid-sized clients and is poised to deliver about 10% CAGR over the next five years. The insurer envisions being a premier P&C franchise in the independent agency channel. Capitalizing on the opportunities the $45 billion market offers, the insurer nearly doubled written premiums in Specialty over the last 10 years using organic and inorganic means.
Prudent underwriting, data, analytic tools and technology helped the company lower coastal exposure and enhance pricing for catastrophes, eventually helping it build a diversified book of business. The insurer’s claims strategy implementation should poise it to deliver a 130-basis point reduction in the loss adjustment expense ratio by 2026 while generating $2 billion in premium growth by the same time.
In tandem with industry trends, THG continues to invest in technology to upgrade its front-end capabilities.
Impressive Dividend History
Banking on operational expertise, Hanover Insurance has been hiking dividends for the last 17 years, in addition to paying special dividends .
HCI Group earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. In the past year, HCI has rallied 76.6%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. In the past year, PLMR’s stock has surged 53.4%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 25.8% and 16.1% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. In the past year, PRA’s stock has surged 10.9%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings suggests 371.4% and 71.6% year-over-year growth, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why You Should Stay Invested in Hanover Insurance (THG) Stock
The Hanover Insurance Group’s (THG - Free Report) growth in the Core Commercial and Specialty segments, stable retention, better pricing, strong market presence and solid capital position poise it well for growth.
Shares have gained 6.5% year to date, compared with the industry’s increase of 16.6%. The insurer carries a Zacks Rank #3 (Hold).
It has a VGM Score of B.
Image Source: Zacks Investment Research
Return on Equity
Hanover Insurance believes that it is well-positioned to achieve a long-term return on equity target of 14% or higher by 2026 on better rates and prudent cost management.
Optimistic Growth Projection
The Zacks Consensus Estimate for THG’s 2024 earnings is pegged at $10.67 per share, indicating an increase of 584% on 4.5% higher revenues of $6.3 billion. The Zacks Consensus Estimate for 2025 earnings is pegged at $13.18 per share, indicating an increase of 23.5% on 6.2% higher revenues of $6.7 billion.
It has a Growth Score of B.
Growth Drivers
Focus on pricing segmentation and mix management, rate increase, as well as an emphasis on growth in target states, product lines and industry classes in the middle market should continue to benefit Hanover Insurance. The company has gradually transformed into a more balanced and differentiated property and casualty franchise.
Hanover Insurance is a leading carrier for specialty focus small to mid-sized clients and is poised to deliver about 10% CAGR over the next five years. The insurer envisions being a premier P&C franchise in the independent agency channel. Capitalizing on the opportunities the $45 billion market offers, the insurer nearly doubled written premiums in Specialty over the last 10 years using organic and inorganic means.
Prudent underwriting, data, analytic tools and technology helped the company lower coastal exposure and enhance pricing for catastrophes, eventually helping it build a diversified book of business. The insurer’s claims strategy implementation should poise it to deliver a 130-basis point reduction in the loss adjustment expense ratio by 2026 while generating $2 billion in premium growth by the same time.
In tandem with industry trends, THG continues to invest in technology to upgrade its front-end capabilities.
Impressive Dividend History
Banking on operational expertise, Hanover Insurance has been hiking dividends for the last 17 years, in addition to paying special dividends .
Stocks to Consider
Some top-ranked stocks from the insurance industry are HCI Group, Inc. (HCI - Free Report) , Palomar Holdings (PLMR - Free Report) and ProAssurance (PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. In the past year, HCI has rallied 76.6%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. In the past year, PLMR’s stock has surged 53.4%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 25.8% and 16.1% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. In the past year, PRA’s stock has surged 10.9%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings suggests 371.4% and 71.6% year-over-year growth, respectively.