Hanover Insurance Group

THG · NYSE

$231.97+$1.22 (+0.53%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $230.75

THG analyst rating

HoldConsensus of 8 analysts over the last 12 months. 38% rate it a buy.

Strong buy0
Buy3
Hold5
Underperform0
Sell0

12-month price target · 9 analysts

Average $242.51 (+4.5% upside)

Low: $227.25
Now: $231.97
High: $273.00

Upgrades and downgrades

The latest rating actions, newest first

THG analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Morgan Stanley	Oct 6, 2026	Maintains	Equal-Weight	$240.00 → $230.00	49%
Keefe, Bruyette & Woods	Sep 18, 2026	Maintains	Market Perform	$222.00 → $232.00	68%
Morgan Stanley	Aug 19, 2026	Maintains	Equal-Weight	$235.00 → $240.00	49%
Keefe, Bruyette & Woods	Aug 6, 2026	Maintains	Market Perform	$220.00 → $222.00	68%
RBC Capital	Jul 30, 2026	Maintains	Sector Perform	$215.00 → $235.00	44%
Citizens	Jul 29, 2026	Maintains	Market Outperform	$225.00 → $240.00	69%
Piper Sandler	Jul 15, 2026	Downgrade	Overweight → Neutral	$220.00	73%
RBC Capital	Jul 13, 2026	Maintains	Sector Perform	$195.00 → $215.00	44%
Citizens	Jul 10, 2026	Maintains	Market Outperform	$205.00 → $225.00	69%
Morgan Stanley	Jul 8, 2026	Maintains	Equal-Weight	$220.00 → $225.00	49%

The case for and against

Updated Oct 14, 2026

Bull case

The Hanover Insurance Gr is supported by durable underwriting discipline, with Core Commercial, Specialty, and Personal Lines all showing solid renewal pricing and margin improvement, including a 200 bps core loss ratio expansion and a core combined ratio kept well below 90%. Its growth outlook is strengthened by independent-agent distribution, 125 new personal lines appointments, 350-375 commercial agents, and technology such as AIn and AI tools that have cut underwriting turnaround times by 15-60% and lifted quote-to-bind ratios by 10-20%. Financially, the company has outperformed expectations across 20 quarters, lowered its expense ratio from 34.8% in 2016 to 30.4% in 2023, and should also benefit from higher NII on a predominantly fixed-income portfolio with 2026E/2027E/2028E NII of $497 million/$528 million/$566 million.

Bear case

The Hanover Insurance Gr is viewed negatively because intensified competition, decelerating commercial and personal lines pricing, and normalized catastrophe losses could pressure margins and limit earnings growth into 2026. Although its direct statutory commercial lines commission and brokerage ratio has declined and technological investments may help expenses, the stock already trades at 10.7x 2026E earnings and 10.1x 2027E earnings, leaving less room for upside. Its underwriting results remain volatile given exposure to severe weather, reserve risk, and fixed-income market sensitivity, while a downside case points to a combined ratio near 98% and capped ROE expansion.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.