Hanover Insurance Group Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

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editorial-team@simplywallst.com (Simply Wall St)

Sat, Feb 8, 2025, 7:45 AM 1 min read

Hanover Insurance Group (NYSE:THG) Full Year 2024 Results

Key Financial Results

Revenue: US$6.24b (up 4.1% from FY 2023).
Net income: US$425.3m (up by US$391.8m from FY 2023).
Profit margin: 6.8% (up from 0.6% in FY 2023). The increase in margin was primarily driven by higher revenue.
EPS: US$11.85 (up from US$0.94 in FY 2023).

THG Profitability Indicators

Combined ratio: 94.8% (down from 103.5% in FY 2023).

revenue-and-expenses-breakdown — NYSE:THG Revenue and Expenses Breakdown February 8th 2025

All figures shown in the chart above are for the trailing 12 month (TTM) period

Hanover Insurance Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 12%.

The primary driver behind last 12 months revenue was the Personal Lines segment contributing a total revenue of US$2.56b (41% of total revenue). Notably, cost of sales worth US$4.98b amounted to 80% of total revenue thereby underscoring the impact on earnings.Explore how THG's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Insurance industry in the US.

Performance of the American Insurance industry.

The company's shares are up 7.8% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Hanover Insurance Group's balance sheet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.