HANOVER INSURANCE Reports 16.4% YOY Growth in Q2 Earnings for FY2023 with USD 1504.4 Million in Total Revenue
August 7, 2023
☀️Earnings Overview
HANOVER INSURANCE ($NYSE:THG) reported total revenue of USD 1504.4 million for Q2 of FY2023, a 16.4% growth year-over-year, on June 30 2023. This was accompanied by a net income of USD -69.2 million, down from last year’s USD 22.6 million.
Analysis
GoodWhale is currently undertaking an analysis of the fundamentals of HANOVER INSURANCE. According to GoodWhale’s Star Chart, HANOVER INSURANCE is classified as ‘rhino’, a type of company that we conclude has achieved moderate revenue or earnings growth. Investors who may be interested in HANOVER INSURANCE could be those who are looking for a reliable dividend and are comfortable with moderate growth. HANOVER INSURANCE has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that they might be able to safely ride out any crisis without the risk of bankruptcy. However, HANOVER INSURANCE is weak in asset and profitability, so investors should consider whether this meets their investment objectives before investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hanover Insurance. More…
| Total Revenues | Net Income | Net Margin |
| 5.79k | -92.6 | -1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hanover Insurance. More…
| Operations | Investing | Financing |
| 540.3 | -507.6 | -140.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hanover Insurance. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.19k | 11.95k | 66.73 |
Key Ratios Snapshot
Some of the financial key ratios for Hanover Insurance are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | – | -1.5% |
| FCF Margin | ROE | ROA |
| 9.0% | -2.3% | -0.4% |
Peers
The Hanover Insurance Group Inc competes with Global Indemnity Group LLC, Mercury General Corp, American Financial Group Inc, in the insurance market. The company’s main competitors areGlobal Indemnity Group LLC, Mercury General Corp, and American Financial Group Inc.
– Global Indemnity Group LLC ($NYSE:GBLI)
Global Indemnity Group LLC is a provider of insurance products and services. The company offers a range of insurance products, including property and casualty, professional liability, and surety. Global Indemnity Group LLC has a market cap of 307.69M as of 2022, a Return on Equity of -0.24%. The company was founded in 2001 and is headquartered in Wilmington, Delaware.
– Mercury General Corp ($NYSE:MCY)
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company was founded in 1961 and is based in Los Angeles, California. Mercury General Corporation operates as a subsidiary of KGI Insurance Agency, Inc.
– American Financial Group Inc ($NYSE:AFG)
American Financial Group Inc. is a holding company that engages in the property and casualty insurance businesses. The company has a market cap of $10.85 billion and a return on equity of 19.27%. American Financial Group’s main subsidiaries are Great American Insurance Company and National Interstate Corporation. Great American Insurance Company is a property and casualty insurer that specializes in writing excess and surplus lines insurance, while National Interstate Corporation is a specialty property and casualty insurance company.
Summary
HANOVER INSURANCE, a leading insurance provider, has reported strong Q2 earnings for FY2023, with total revenue of USD 1504.4 million, a 16.4% year-over-year increase. Net income for the quarter however was negative at -69.2 million, compared to last year’s figure of 22.6 million. For investors, HANOVER INSURANCE is currently a risky play as the net income does not provide much assurance. The growth in revenue should be taken as a positive sign, however investors should do their own due diligence before investing, to better assess the potential risks and rewards of HANOVER INSURANCE.
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