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Compared to Estimates, Hanover Insurance (THG) Q1 Earnings: A Look at Key Metrics
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Hanover Insurance Group (THG - Free Report) reported $1.62 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 4.9%. EPS of $3.87 for the same period compares to $3.13 a year ago.
The reported revenue represents a surprise of -1.51% over the Zacks Consensus Estimate of $1.65 billion. With the consensus EPS estimate being $3.58, the EPS surprise was +8.10%.
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 Loss and LAE Ratio: 63.3% versus 63.7% estimated by three analysts on average.
GAAP Expense Ratio: 30.8% versus 30.5% estimated by three analysts on average.
GAAP Combined Ratio: 94.1% versus 94.2% estimated by three analysts on average.
Core Commercial - Loss and LAE Ratio: 70% versus 65.1% estimated by three analysts on average.
Revenues- Premiums earned: $1.51 billion versus the four-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of +4.1%.
Revenues- Net investment income: $106.10 million compared to the $101.72 million average estimate based on four analysts. The reported number represents a change of +18.3% year over year.
Core Commercial- Other income: $1.30 million versus the three-analyst average estimate of $1.43 million.
Specialty- Other income: $1.30 million compared to the $1.23 million average estimate based on three analysts.
Core Commercial- Net Investment Income: $48 million compared to the $46.83 million average estimate based on three analysts.
Personal Lines- Net Premiums Earned: $627.90 million versus the three-analyst average estimate of $639.92 million. The reported number represents a year-over-year change of +4.9%.
Revenues- Fees and other income: $6.40 million versus the three-analyst average estimate of $6.77 million. The reported number represents a year-over-year change of -12.3%.
Core Commercial- Net Premiums Earned: $541 million versus $549.22 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change.
Shares of Hanover Insurance have returned -5.1% over the past month versus the Zacks S&P 500 composite's -0.2% 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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Compared to Estimates, Hanover Insurance (THG) Q1 Earnings: A Look at Key Metrics
Hanover Insurance Group (THG - Free Report) reported $1.62 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 4.9%. EPS of $3.87 for the same period compares to $3.13 a year ago.
The reported revenue represents a surprise of -1.51% over the Zacks Consensus Estimate of $1.65 billion. With the consensus EPS estimate being $3.58, the EPS surprise was +8.10%.
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 Loss and LAE Ratio: 63.3% versus 63.7% estimated by three analysts on average.
- GAAP Expense Ratio: 30.8% versus 30.5% estimated by three analysts on average.
- GAAP Combined Ratio: 94.1% versus 94.2% estimated by three analysts on average.
- Core Commercial - Loss and LAE Ratio: 70% versus 65.1% estimated by three analysts on average.
- Revenues- Premiums earned: $1.51 billion versus the four-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of +4.1%.
- Revenues- Net investment income: $106.10 million compared to the $101.72 million average estimate based on four analysts. The reported number represents a change of +18.3% year over year.
- Core Commercial- Other income: $1.30 million versus the three-analyst average estimate of $1.43 million.
- Specialty- Other income: $1.30 million compared to the $1.23 million average estimate based on three analysts.
- Core Commercial- Net Investment Income: $48 million compared to the $46.83 million average estimate based on three analysts.
- Personal Lines- Net Premiums Earned: $627.90 million versus the three-analyst average estimate of $639.92 million. The reported number represents a year-over-year change of +4.9%.
- Revenues- Fees and other income: $6.40 million versus the three-analyst average estimate of $6.77 million. The reported number represents a year-over-year change of -12.3%.
- Core Commercial- Net Premiums Earned: $541 million versus $549.22 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change.
View all Key Company Metrics for Hanover Insurance here>>>Shares of Hanover Insurance have returned -5.1% over the past month versus the Zacks S&P 500 composite's -0.2% 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.