THG NYSE Russell 1000 Earnings call
Hanover Insurance (THG) · Q2 2026 results and valuation
Share price: $248.53 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 30 Apr 2026
Net income up 2.6% on the previous quarter, guidance cut. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+2.6%
Net income vs Q1 2026
Guidance cut
Net income 191.6M vs 186.8M
Revenue +1.5%
2 · How management spoke
Upbeat
More upbeat than 80% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Figure
The CAT occurrence program exhausts at $2.05 billion for all covered perils while maintaining a $200 million retention.
Valuation
Is Hanover Insurance undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.4% growth a year (3-year revenue growth), the model's fair value is $346.58 a share — the stock trades 28% below it. Today's price assumes 1.9% growth a year.
Current price
$248.53
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+1.9% for 10 yrs
Fair value / share
$346.58
Buy below
$259.93
Price vs fair value
Undervalued 28%
Price vs buy-below price
Undervalued 4%
Read between the lines
-
New
Hanover Insurance wants to be above the actuarial central estimate for the current accident year, which puts us in line…
Source quote
“And we want to be above the actuarial central estimate for the current accident year, which puts us in line... And you're right, we have been raising our PICCs for casualty really over the last several quarters.”
-
Guidance
THG expects to sustain strong earnings in its portfolio over time due to portfolio diversification helping the company navigate changing market conditions.
Source quote
“The diversification of our portfolio helps us navigate changing market conditions, and we expect to sustain strong earnings in our portfolio over time.”
-
Guidance ↓
Bond upsized to $150 million on strong demand, priced at the low end of the reduced guidance range.
Source quote
“Positive investor interest allowed us to upsize this bond to $150 million, reduced the pricing guidance range and issue at the low end of that reduced range.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 92% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“At the same time, net written premium growth accelerated to 4.6%, led by core commercial and specialty while personal lines continue to generate strong margins and leading indicators of business...”
“Additionally, Surety delivered strong growth, fueled by robust new business, healthy demand and momentum in targeted bond offerings with our strongest distribution partners.”
“Both auto and home achieved strong renewal pricing increases in the second quarter that approximated first quarter pricing increases with auto up 7.1% and home up 10.9%.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.73B | 1.70B | +1.5% | 1.65B | +4.3% |
| Operating income | 251.9M | 250.2M | +0.7% | 209.9M | +20.0% |
| Net income | 191.6M | 186.8M | +2.6% | 157.1M | +22.0% |
| EPS | 5.38 | 5.20 | +3.5% | 4.30 | +25.1% |
| P/E today 10.5 | 10.2 | 8.7 | +1.5 | 11.2 | −1.0 |
Topics
Most discussed now
- At the same time, net written premium growth accelerated to 4.6%, led by core commercial and specialty while personal lines...
- Its strong results reflect the strategic actions Hanover Insurance has taken over several years to strengthen and reshape its company.
- To growing organically, Hanover Insurance has had a fairly consistent pursuit from a corporate development standpoint on M&A opportunities.
- I will remind you that when Hanover Insurance is setting current accident year, it's all IBNR.
- Hanover Insurance takes a lot of risk in underwriting like most property casualty insurers do, and it thinks it wants to...
Faded since Q1 2026
- Fading Hanover Insurance's all-in combined ratio improved nearly 2.5 points to 91.7%, while its ex cat combined ratio improved by a similar...
- Fading Hanover Insurance is encouraged by the better-than-expected impact of enhanced terms and conditions and targeted property actions, which it…
- Fading At the same time, Hanover Insurance continues to benefit from its strong balance sheet and its high-quality investment portfolio, which…
- Fading These statements can relate to, among other things, Hanover Insurance's outlook, profitability growth and strategic initiatives, the impact…
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Shareholder vote results; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- New financial obligation; Other events · SEC 8-K