Property and casualty insurer The Hanover Insurance Group (NYSE: THG) fell short of the markets revenue expectations in Q4 CY2025 as sales rose 3.3% year on year to $1.67 billion. Its GAAP profit of $5.47 per share was 3.6% above analysts’ consensus estimates.

Is now the time to buy The Hanover Insurance Group? Find out by accessing our full research report, it’s free.

"We delivered outstanding results in 2025, with a strong fourth quarter that capped a record year driven by disciplined execution across the company," said John C. Roche, president and chief executive officer at The Hanover.

Company Overview

Founded in 1852 during a time when fire insurance was crucial for protecting businesses and homes, The Hanover Insurance Group (NYSE: THG) provides property and casualty insurance products through independent agents, serving individuals, small businesses, and mid-sized companies.

Revenue Growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, The Hanover Insurance Group’s 6.6% annualized revenue growth over the last five years was mediocre. This was below our standard for the insurance sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. The Hanover Insurance Group’s recent performance shows its demand has slowed as its annualized revenue growth of 4.8% over the last two years was below its five-year trend. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, The Hanover Insurance Group’s revenue grew by 3.3% year on year to $1.67 billion, falling short of Wall Street’s estimates.

Net premiums earned made up 93.6% of the company’s total revenue during the last five years, meaning The Hanover Insurance Group lives and dies by its underwriting activities because non-insurance operations barely move the needle.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our free report one of our favorites growth stories.

Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

The Hanover Insurance Group’s BVPS grew at a sluggish 2.8% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 21% annually over the last two years from $68.87 to $100.90 per share.

Over the next 12 months, Consensus estimates call for The Hanover Insurance Group’s BVPS to grow by 37.1%, elite growth rate.

Key Takeaways from The Hanover Insurance Group’s Q4 Results

We struggled to find many positives in these results. Its net premiums earned missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded up 2.2% to $178.00 immediately after reporting.

Is The Hanover Insurance Group an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).