HANOVER INSURANCE Gaap Eps Misses Analysts’ Estimates By $0.94

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Hanover Insurance Intrinsic Value – The Hanover Insurance ($NYSE:THG) Group, Inc. is a leading insurance provider in the United States. The company offers a wide range of insurance products and services, including property and casualty, workers’ compensation, and personal lines. The Hanover Insurance Group announced today that its third quarter GAAP EPS of $0.01 missed analysts’ estimates by $0.94. This miss was primarily due to lower-than-expected investment income and higher-than-expected catastrophe losses.

Despite this miss, the Hanover Insurance Group remains a strong and well-respected insurance provider. The company has a long history of providing quality insurance products and services to its customers. The Hanover Insurance Group is committed to delivering value to its shareholders. The company will continue to focus on providing quality insurance products and services to its customers.

Earnings

HANOVER INSURANCE reported its FY2022 Q2 earnings today, and unfortunately the company missed analysts’ estimates by $0.94. In the quarter, the company earned $5208.8M in total revenue and $324.9M in net income. Compared to the same quarter last year, this represents a 1.0% increase in total revenue and a 22.4% decrease in net income.

Over the last three years, HANOVER INSURANCE’s total revenue has grown from $4808.1M to $5208.8M. The company will need to stabilize its earnings if it wants to continue to grow its top line.

Share Price

At the time of writing, news coverage on Hanover Insurance was mostly negative. On Tuesday, the company’s stock opened at $146.9 and closed at $143.2, down by 2.2% from its last closing price of 146.5. Analysts were surprised by the company’s poor performance, as it missed estimates by a wide margin.

The company attributed the miss to higher-than-expected losses from natural catastrophes. This included hurricanes Harvey, Irma, and Maria, as well as the California wildfires.

VI Analysis – Hanover Insurance Intrinsic Value Calculator

The Hanover Insurance Group, Inc. is an insurance holding company based in Worcester, Massachusetts. The company operates through four segments: Commercial Lines, Personal Lines, Chaucer, and Other. The company’s Commercial Lines segment offers property and casualty insurance products for businesses, including multi-peril, workers’ compensation, and automobile insurance. The Personal Lines segment provides personal property and casualty insurance products for individuals, families, and small businesses, including homeowners, automobile, and excess liability insurance.

The Chaucer segment offers property and casualty insurance and reinsurance products to companies and Lloyd’s of London syndicates. The Other segment includes the operations of the company’s holding company and its non-insurance subsidiaries.

VI 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

Investing in HANOVER INSURANCE may not be the best idea right now given the recent news coverage. However, if you are looking for a insurance company to invest in, HANOVER INSURANCE may be worth considering. The company has been around for a while and has a solid financial history.