Compared to Estimates, Hanover Insurance (THG) Q4 Earnings: A Look at Key Metrics

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Compared to Estimates, Hanover Insurance (THG) Q4 Earnings: A Look at Key Metrics

For the quarter ended December 2025, Hanover Insurance Group (THG) reported revenue of $1.69 billion, up 4.3% over the same period last year. EPS came in at $5.79, compared to $5.32 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.71 billion, representing a surprise of -1.46%. The company delivered an EPS surprise of +11.28%, with the consensus EPS estimate being $5.20.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: Core Commercial - Loss and LAE Ratio: 61.9% versus the three-analyst average estimate of 63.4%. Core Commercial - Expense Ratio: 34.2% versus the three-analyst average estimate of 33.7%. Core Commercial - Combined Ratio: 96.1% versus 97% estimated by three analysts on average. Specialty - Loss and LAE Ratio: 45.8% versus the three-analyst average estimate of 49.7%. Revenues- Net investment income: $125.8 million compared to the $116 million average estimate based on three analysts. The reported number represents a change of +24.9% year over year. Revenues- Premiums earned: $1.56 billion versus the three-analyst average estimate of $1.59 billion. The reported number represents a year-over-year change of +3%. Operating Revenues- Core Commercial- Net Premiums Earned: $561.5 million compared to the $573.24 million average estimate based on three analysts. The reported number represents a change of +2.2% year over year. Operating Revenues- Specialty- Net Premiums Earned: $348.9 million versus the three-analyst average estimate of $363.58 million. The reported number represents a year-over-year change of +2.8%. Operating Revenues- Personal Lines- Net Premiums Earned: $646.2 million versus $651 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change. Operating Revenues- Core Commercial- Net Investment Income: $55 million versus $52.12 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +19.3% change. Operating Revenues- Specialty- Net Investment Income: $27.9 million compared to the $25.68 million average estimate based on three analysts. The reported number represents a change of +22.4% year over year. Operating Revenues- Personal Lines- Net Investment Income: $34.8 million versus the three-analyst average estimate of $33.96 million. The reported number represents a year-over-year change of +20.8%.

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

Shares of Hanover Insurance have returned -3.3% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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