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Hanover Insurance (THG) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2024, Hanover Insurance Group (THG - Free Report) reported revenue of $1.62 billion, up 5.8% over the same period last year. EPS came in at $5.32, compared to $3.13 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.62 billion, representing a surprise of -0.11%. The company delivered an EPS surprise of +54.20%, with the consensus EPS estimate being $3.45.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
GAAP Expense Ratio: 32.3% versus the four-analyst average estimate of 30.8%.
GAAP Combined Ratio: 89.2% compared to the 94.8% average estimate based on four analysts.
GAAP Loss and LAE Ratio: 56.9% compared to the 64.1% average estimate based on four analysts.
Specialty - Loss and LAE Ratio: 42.6% compared to the 51.2% average estimate based on three analysts.
Revenues- Net investment income: $100.70 million versus $95.52 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.4% change.
Revenues- Premiums earned: $1.51 billion versus the four-analyst average estimate of $1.52 billion. The reported number represents a year-over-year change of +5%.
Personal Lines- Net Premiums Earned: $623 million versus $626.74 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
Revenues- Fees and other income: $6.40 million versus the three-analyst average estimate of $6.92 million. The reported number represents a year-over-year change of -15.8%.
Specialty- Net Investment Income: $22.80 million versus $21.03 million estimated by three analysts on average.
Personal Lines- Net Investment Income: $28.80 million versus $27.92 million estimated by three analysts on average.
Core Commercial- Other income: $1.30 million compared to the $1.40 million average estimate based on three analysts.
Specialty- Other income: $1.20 million versus the three-analyst average estimate of $1.39 million.
Shares of Hanover Insurance have returned +1.4% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Hanover Insurance (THG) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2024, Hanover Insurance Group (THG - Free Report) reported revenue of $1.62 billion, up 5.8% over the same period last year. EPS came in at $5.32, compared to $3.13 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.62 billion, representing a surprise of -0.11%. The company delivered an EPS surprise of +54.20%, with the consensus EPS estimate being $3.45.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- GAAP Expense Ratio: 32.3% versus the four-analyst average estimate of 30.8%.
- GAAP Combined Ratio: 89.2% compared to the 94.8% average estimate based on four analysts.
- GAAP Loss and LAE Ratio: 56.9% compared to the 64.1% average estimate based on four analysts.
- Specialty - Loss and LAE Ratio: 42.6% compared to the 51.2% average estimate based on three analysts.
- Revenues- Net investment income: $100.70 million versus $95.52 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.4% change.
- Revenues- Premiums earned: $1.51 billion versus the four-analyst average estimate of $1.52 billion. The reported number represents a year-over-year change of +5%.
- Personal Lines- Net Premiums Earned: $623 million versus $626.74 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
- Revenues- Fees and other income: $6.40 million versus the three-analyst average estimate of $6.92 million. The reported number represents a year-over-year change of -15.8%.
- Specialty- Net Investment Income: $22.80 million versus $21.03 million estimated by three analysts on average.
- Personal Lines- Net Investment Income: $28.80 million versus $27.92 million estimated by three analysts on average.
- Core Commercial- Other income: $1.30 million compared to the $1.40 million average estimate based on three analysts.
- Specialty- Other income: $1.20 million versus the three-analyst average estimate of $1.39 million.
View all Key Company Metrics for Hanover Insurance here>>>Shares of Hanover Insurance have returned +1.4% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.