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Claims Ratio % is the percentage of claims costs incurred in relation to the premiums earned.
The Hanover Insurance Group's Claims Ratio % for the quarter that ended in Jun. 2026 was 60.20%
, which is lower than
61.00% for the pervious quarter ended in Mar. 2026.
The Hanover Insurance Group's Claims Ratio % for the annual that ended in Dec. 2025 was 60.50%
, which is lower than
63.50% for the pervious year ended in Dec. 2024.
The historical rank and industry rank for The Hanover Insurance Group's Claims Ratio % or its related term are showing as below:
THG's Claims Ratio % is not ranked *
in the Insurance industry.
Industry Median: * Ranked among companies with meaningful Claims Ratio % only.
The Hanover Insurance Group (NYSE:THG) Claims Ratio % Explanation
Claims Ratio % the percentage of claims costs incurred in relation to the premiums earned during the period. It is the equivalent of gross profit margin for an insurance company.
It's important to note that insurance is the business of managing risks and, to do that well, the insurer needs a thorough understanding of the incurred claims ratio. If the value is higher than expected or above established norms, then further investigation is required to figure out why that is (eg: fraud). If it is lower than expected, it could indicate irrelevant products or difficulties in claiming, possibly affecting customer satisfaction.
The Hanover Insurance Group Claims Ratio % Related Terms
The Hanover Insurance Group Claims Ratio % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's Claims Ratio %, along with its competitors' market caps and Claims Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hanover Insurance Group (NYSE:THG) Claims Ratio % Calculation
Claims Ratio % is calculated as
Claims Ratio %
=
Total Claims
/
Total Premiums Earned
*
100%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequently Asked Questions
What does a Claims Ratio % of 60.20% mean?
The Hanover Insurance Group (THG) has a Claims Ratio % of 60.20% as of Jun. 2026. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on The Hanover Insurance Group and its competitors.
Is The Hanover Insurance Group's Claims Ratio % too high?
The Hanover Insurance Group's current Claims Ratio % is 60.20%. Overall, The Hanover Insurance Group has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's Claims Ratio % compare to KNSL and RLI?
The Hanover Insurance Group's Claims Ratio % of 60.20% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Claims Ratio % for an Insurance company?
A good Claims Ratio % depends on the Insurance industry context. However, Claims Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Claims Ratio % mean?
A high Claims Ratio % can signal that a stock is expensive relative to its fundamentals. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on The Hanover Insurance Group and its competitors. The Hanover Insurance Group's current Claims Ratio % is 60.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hanover Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, The Hanover Insurance Group (THG) is currently considered Fairly Valued. The stock's GF Value™ is $208.68, compared to a current price of $228.38 — trading 9.4% above its estimated fair value. The current Claims Ratio % is 60.20%. The Hanover Insurance Group's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Claims Ratio % calculated?
Claims Ratio % is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current Claims Ratio % is 60.20% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hanover Insurance Group (THG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hanover Insurance Group stock appears to be overvalued.
The current stock price of $228.38 is trading 9.4% above its estimated GF Value™ of $208.68.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
Claims Ratio %: 60.20%
GF Value™: $208.68 vs. price of $228.38 (9.4% above fair value)
No single metric tells the full story. See the THG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business through Hanover Insurance, Citizens and other THG subsidiaries. The company conducts business operations through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. The company operates an investment portfolio that is exposed to fixed-income securities.
73GF Score
Get the complete analysis for THG
Claims Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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