At a glance
The Hanover Insurance Group Inc is worth $8.02B, about 13 times its fiscal 2025 earnings. Revenue grew 5.7% to $6.59B in fiscal 2025, with 10.0% kept as profit; over 5 years it has grown 6.4% a year. It pays a 1.63% dividend yield, raised every year for at least 8 years, and returned $932.3M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +40.8% over the past year with dividends reinvested and +15.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.7% in the 2020 crash (S&P 500: 33.7%) and 18.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months and 25 months after the lows.
The business in plain English
The Hanover Insurance Group sells property and casualty insurance. That means coverage for damaged homes, cars and business property, and for injuries and lawsuits. It sells in the U.S. through independent agents and brokers, who can offer policies from several insurers. Its main insurance subsidiaries are The Hanover Insurance Company and Citizens Insurance Company of America, and its roots go back to 1852. In 2025, net premiums written were about $6.3 billion, up 3.9%. That figure counts premiums on policies sold, minus the share passed to reinsurers (companies that insure insurers).
It makes money two ways. It charges more in premiums than it pays in claims and expenses, and it invests premiums until claims come due. Personal Lines is the largest segment, with 40.6% of 2025 operating revenue. Car insurance makes up 57.2% of its premiums, and homeowners and related coverage the rest. Core Commercial, at 36.4%, serves small and mid-sized businesses. Package policies covering business property and liability bring in 51% of its premiums, and commercial auto and workers' compensation most of the rest. Specialty, at 22.7%, covers niches such as professional and executive liability, marine (contractors' equipment, goods in transit, fine art) and surety bonds.
Michigan supplied 18.7% of 2025 net premiums written and Massachusetts 8.0%. California and Texas are important for its commercial and specialty lines.
Price history
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THG +40.8% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.74B, up 4.2% from a year earlier, and net income was $172.6M (-3.4%).
- For fiscal 2025, revenue was $6.59B (+5.7% year over year; +6.4% a year from FY2020 to FY2025) with a 10% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.4% good |
|---|---|
| Operating margin | 14.1% watch |
| Free cash flow margin | 17.7% good |
| Return on equity (FY2025) | 18.5% good |
| Return on assets (FY2025) | 3.9% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $4.82B | $358.7M | $692.7M |
| FY2021 | $5.23B | $422.8M | $815.7M |
| FY2022 | $5.47B | $116.0M | $704.5M |
| FY2023 | $5.99B | $35.3M | $349.8M |
| FY2024 | $6.24B | $426.0M | $796.2M |
| FY2025 | $6.59B | $662.5M | $1.17B |
Valuation snapshot
| Market value | $8.02B |
|---|---|
| P/E ratio | 12.8 |
| Dividend yield | 1.63% |
Rank among 1514 US companies
Market value at each year end
The Hanover Insurance Group’s market value went from $3.87B at the end of 2016 to $8.02B on Oct 28, 2026, about 2.1 times as much; since the end of 2025 it is up 23%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $8.02B | +23.3% |
| 2025 | $6.50B | +16.7% |
| 2024 | $5.57B | +28.3% |
| 2023 | $4.34B | -9.6% |
| 2022 | $4.81B | +3.1% |
| 2021 | $4.66B | +7.1% |
| 2020 | $4.36B | -19.1% |
| 2019 | $5.38B | +8.9% |
| 2018 | $4.94B | +7.7% |
| 2017 | $4.59B | +18.6% |
| 2016 | $3.87B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| THG price data to Oct 28, 2026 | +29.5% | +40.8% | +29.7% | +15.6% | +15.1% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +29.5% |
| 2025 | +20.6% |
| 2024 | +30.6% |
| 2023 | -7.7% |
| 2022 | +5.4% |
| 2021 | +14.5% |
| 2020 | -12.2% |
| 2019 | +26.8% |
| 2018 | +10.1% |
| 2017 | +21.4% |
| 2016 | +14.4% |
| 2015 | +16.6% |
| 2014 | +22.3% |
| 2013 | +58.4% |
| 2012 | +14.5% |
| 2011 | -22.5% |
| 2010 | +7.6% |
| 2009 | +5.2% |
| 2008 | -5.0% |
| 2007 | -5.3% |
| 2006 | +17.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 35.2% over that stretch · deepest drop along the way 42.9%, back to its old high 23 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.7% over that stretch · deepest drop along the way 38.7%, back to its old high 12.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 4.4% over that stretch · deepest drop along the way 18.6%, back to its old high 24.9 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 8 sales ($2.4M), 5 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 19, 2026 | Dennis Francis Kerrigan Executive Vice President | sell (plan) | $1.1M |
| Aug 20, 2026 | Dennis Francis Kerrigan Executive Vice President | sell (plan) | $380K |
| Aug 19, 2026 | Dennis Francis Kerrigan Executive Vice President | sell (plan) | $334K |
| Aug 3, 2026 | Jane D Carlin Director | sell | $232K |
| Aug 6, 2026 | Theodore H JR Bunting Director | sell | $138K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 5.51% | Mar 31, 2026 |
| T. Rowe Price Associates, Inc. | 5.2% | Jun 30, 2026 |
ETFs with the most weight in THG
| KBWP Invesco KBW Property & Casualty Insurance ETF | 3.75% |
| IPDP Dividend Performers ETF | 2.44% |
| OSCV Opus Small Cap Value ETF | 2.33% |
| FTDS First Trust Dividend Strength ETF | 2.28% |
| REGL ProShares S&P MidCap 400 Dividend Aristocrats ETF | 2.13% |
| SMMV iShares MSCI USA Small-Cap Min Vol Factor ETF | 1.22% |
| RFV Invesco S&P MidCap 400® Pure Value ETF | 0.67% |
| GVLU Gotham 1000 Value ETF | 0.48% |
What could go wrong
- Heavy reliance on Michigan. Michigan supplied 18.7% of net premiums written in 2025. A slump, storm or rule change there could hit hard. The company also flags uncertainty over Michigan's reform of no-fault auto coverage (personal injury protection, or PIP).
- Catastrophes in concentrated regions. Business clusters in Michigan, Massachusetts and other Northeast states, with California and Texas key for commercial lines. A big storm or wildfire there could cause outsized losses, and climate change may worsen them.
- Dependence on independent agents. Its policies reach customers through independent agents and brokers. Weaker agency ties would hurt. In personal insurance, insurers that sell directly and online price-comparison tools keep up pressure on those agents.
- Claims could exceed reserves. Reserves are estimates of what claims will cost. Litigation trends and "social inflation" (rising lawsuit costs and jury awards) have pushed claims costs higher. If reserves prove too low, raising them cuts reported profit.
- Costs can rise after prices are set. Premiums are set in advance. If car repair, construction or medical costs jump afterward because of inflation, tariffs or supply-chain problems, claims can cost more than the company charged.
- Regulators can limit prices and exits. Insurance is regulated state by state. Many states restrict rate increases or make it hard to leave a market. California, for example, has limited non-renewals of property policies in wildfire-prone areas.
Recent events
- Quarterly results released
- Quarterly results released
- Executive or board change
- Executive or board change; Shareholder vote results; Other company announcement
- Quarterly results released
- Quarterly results released
- Investor presentation or announcement
For income and retirement investors
Regular dividends per share rose in every available year from fiscal 2016 to 2025, a streak of 8 increases. 2019 is left out because it included a special dividend. The dividend grew about 6.5% a year, from $2.61 in 2020 to $3.58 in 2025. In 2025 it took 19.7% of earnings and 11.2% of free cash flow (cash left after running the business). But insurance profits swing: in 2023 earnings fell to $0.98 per share, below the dividend. Buybacks totaled $349 million from 2021 to 2025. The share count fell 2.1% from October 2021 to July 2026. The yield was 1.63% as of October 28, 2026.
The shares fell 42.9% in the 2008 crisis and needed 23 months to recover from the low. They fell 38.7% in the 2020 COVID crash and recovered in 12.5 months. In 2022 they slid 18.6% at worst, yet finished the market's January-to-October decline up 4.4%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Hanover Insurance make money?
Hanover sells property and casualty insurance in the U.S. through independent agents and brokers. It earns money when premiums exceed claims and expenses, and by investing premiums until claims are paid. In 2025, net premiums written were about $6.3 billion. Personal Lines (car and home insurance) produced 40.6% of operating revenue. Core Commercial (coverage for small and mid-sized businesses) produced 36.4%, and Specialty (professional liability, marine, surety and other niches) 22.7%.
Does Hanover Insurance raise its dividend every year?
Yes, based on the record available. Regular dividends per share rose in every year from fiscal 2016 to 2025, a streak of 8 increases. 2019 is left out because it included a special dividend. Dividends per share grew from $2.61 in 2020 to $3.58 in 2025, about 6.5% a year. The yield was 1.63% as of October 28, 2026. Past raises are no promise. As a holding company, Hanover relies on dividends from its insurance subsidiaries for cash.
What is THG's P/E ratio?
It was 12.8 as of October 28, 2026, based on fiscal 2025 diluted earnings of $18.16 per share. The P/E (price-to-earnings) ratio divides the share price by a year's earnings per share. The company's market value was about $8.1 billion. Insurance earnings swing with storms and reserve changes: diluted earnings were $3.21 per share in 2022 and $0.98 in 2023. A P/E based on a strong year can look lower than one based on an average year.
How has Hanover Insurance stock performed?
The shares have risen strongly over the past decade, with sharp drops along the way. As of October 28, 2026, the share price was up 40.8% over one year. It had gained about 15.6% a year over five years and 15.1% a year over ten years. Its worst peak-to-trough fall in about 21 years of price history was 45.9%. It dropped 42.9% in the 2008 financial crisis and 38.7% in the 2020 COVID crash. Past returns do not predict future results.
Which ETFs hold Hanover Insurance (THG) stock?
THG is held by 113 ETFs. The largest weights are in the Invesco KBW Property & Casualty Insurance ETF (KBWP), at 3.75%, the Dividend Performers ETF (IPDP), at 2.44%, and the Opus Small Cap Value ETF (OSCV), at 2.33%. It also appears in dividend funds such as the First Trust Dividend Strength ETF (FTDS) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL). With weights this small, owning one of these funds gives only modest exposure to THG. Fund holdings change over time.