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Hanover Insurance (THG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
2 min read

For the quarter ended December 2023, Hanover Insurance Group (THG) reported revenue of $1.53 billion, up 5.8% over the same period last year. EPS came in at $3.13, compared to -$1.05 in the year-ago quarter.

The reported revenue represents a surprise of -1.98% over the Zacks Consensus Estimate of $1.56 billion. With the consensus EPS estimate being $2.51, the EPS surprise was +24.70%.

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 Combined Ratio: 94.2% compared to the 97.5% average estimate based on three analysts.

  • GAAP Loss and LAE Ratio: 63.6% versus 67% estimated by three analysts on average.

  • GAAP Expense Ratio: 30.6% versus the three-analyst average estimate of 30.5%.

  • Revenues- Net investment income: $81.60 million versus $84.76 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.5% change.

  • Revenues- Premiums earned: $1.44 billion compared to the $1.46 billion average estimate based on three analysts. The reported number represents a change of +5.6% year over year.

  • Revenues- Fees and other income: $7.60 million versus the two-analyst average estimate of $9.17 million. The reported number represents a year-over-year change of +7%.

View all Key Company Metrics for Hanover Insurance here>>>

Shares of Hanover Insurance have returned +8.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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