CluenexHanover Insurance THG
Hanover Insurance scores average on business quality (5.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Hanover Insurance does
Hanover Insurance Group underwrites property and casualty insurance products, generating revenue primarily through commercial and personal lines premiums paid by businesses and individuals. The firm focuses on specialized insurance solutions distributed through a network of independent agents to protect clients against property and liability losses.
- What it does best
Hanover delivers top-quartile capital returns with an ROE of 21.2%, outperforming peers like CNA at 11%. This efficiency stems from a disciplined agency distribution model that secures stable, recurring premium streams.
- The main risk
Property and casualty underwriting is exposed to severe weather and catastrophe losses, which can impair quarterly margins and pressure capital reserves if claims spike unexpectedly.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 14.7% with an FCF margin of 46.0%, supported by disciplined underwriting. Profitability scales efficiently as premium volume rises.
Its moat rests on entrenched relationships with independent agents, supporting a top-quartile ROE of 21.2%. Replicating this network requires years of trusted local partnerships.
Revenue grew 5.6% to $6.7B, powered by commercial lines expansion. Growth is moderating compared to prior historical periods.
Debt-to-equity sits at 0.3x with interest coverage of 21.1x, making debt carrying costs manageable. Free cash flow reached $1.3B, showing financial strengthening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $506K outside pre-planned sales.
Our sealed record on THG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Hanover Insurance scores average on the Cluenex quality check (5.9 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 2 sold $506K outside pre-planned sales.
Oct 28, 2026.
See THG today
- Today's verdict on THG, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Hanover Insurance (THG)”, https://cluenex.com/stocks/thg/, data as of Oct 10, 2026.