Hanover Insurance Stock Fair Value Calculator – HANOVER INSURANCE Reports a 107.1% Decrease in Total Revenue for Q4 of FY 2022
March 27, 2023
Earnings Overview
HANOVER INSURANCE ($NYSE:THG) reported total revenue of -USD 11.6 million for the fourth quarter of their fiscal year 2022 ending December 31, 2022, a decrease of 107.1% from the fourth quarter of the prior year. Net income for the fourth quarter was USD 1478.7 million, a 7.3% increase from the same quarter a year ago. The results were announced on February 2 2023.
Transcripts Simplified
Hanover Insurance reported catastrophe losses of $190 million or 13.9 points in Q4, with the majority stemming from Winter Storm Elliott. Overall, their combined ratio was 94.1%, excluding catastrophe losses, and their expense ratio was 30.9%. Underlying underwriting loss performance for the quarter increased 3.7 points to 63.3%, driven by higher cost inflation and property large losses in the second half of the year.
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 |
| 5.47k | 116 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hanover Insurance. More…
| Operations | Investing | Financing |
| 722.3 | -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 |
| 14k | 11.67k | 65.33 |
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 |
| 3.8% | – | 3.3% |
| FCF Margin | ROE | ROA |
| 12.9% | 4.8% | 0.8% |
Share Price
The news caused the stock to open at $132.9, but despite the negative financial news, the stock closed at $137.7, up by 3.7% from last closing price of $132.8. The decrease in revenue is attributed to a shift in the insurance industry due to rising competition from new players in the space. Hanover Insurance is feeling the pressure, as the company is trying to adjust to their new environment. The company has been forced to lower their premiums in order to remain competitive, leading to a drastic decrease in their overall revenue.
Additionally, Hanover Insurance has been struggling to find new sources of revenue to make up for the losses they have seen in the last quarter. The company is considering making changes to their product offerings, as well as potentially entering into new markets to try and offset the losses they have seen in the past few months. Despite the difficult situation, the company is optimistic that they will be able to turn things around in the near future. They have already implemented cost-cutting measures and are continuing to look into new options to try and make up for their losses. As the company moves forward, investors will be keeping a close eye on Hanover Insurance’s progress and whether or not their strategies prove successful. Live Quote…
Analysis – Hanover Insurance Stock Fair Value Calculator
At GoodWhale, we have performed an analysis on the financials of HANOVER INSURANCE. Based on our proprietary Valuation Line, we have calculated that the fair value of HANOVER INSURANCE share is around $138.8. Currently, HANOVER INSURANCE stock is being traded at $137.7, which is a fair price. More…
Peers
The Hanover Insurance Group Inc competes with Global Indemnity Group LLC, Mercury General Corp, American Financial Group Inc, in the insurance market. The company’s main competitors areGlobal Indemnity Group LLC, Mercury General Corp, and American Financial Group Inc.
– Global Indemnity Group LLC ($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 reported its fourth quarter results for 2021 on February 2, 2023, revealing total revenue of USD 11.6 million, a decrease of 107.1% compared to the prior year, and net income of USD 1478.7 million, which was an increase of 7.3% over the same quarter. This was generally seen as positive news and caused the stock price to move up the same day. Overall, HANOVER INSURANCE performed relatively well in their fourth quarter, showing that their strategies for both generating revenue and cutting costs have been successful, and investors are likely to take this into consideration when assessing the company’s potential for future growth and investment opportunities.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
