The Hanover Insurance GroupTHG -1.35%82 Interest Coverage is 22.95 as of Mar. 2026, which is 124% above its 10-year median of 10.24. GuruFocus rates THG with a GF Score™ of 82/100 and a GF Value™ of $201.18 (Fairly Valued). The stock has 7 warning signs investors should review. Among 351 Insurance companies, The Hanover Insurance Group ranks better than 57.26% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. The Hanover Insurance Group's
EBIT
for the
three
months ended in Mar. 2026 was $248 Mil. The Hanover Insurance Group's Interest Expense for the
three
months ended in Mar. 2026 was $-11 Mil.
The Hanover Insurance Group's interest coverage for the quarter that ended in Mar. 2026 was 22.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Hanover Insurance Group's Interest Coverage or its related term are showing as below:
THG'
s Interest Coverage Range Over the Past 10 Years
Min: 2.21 Med: 10.24 Max: 21.24
Current: 21.24
THG's Interest Coverage is ranked better than 57.26% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs THG: 21.24
The Hanover Insurance Group (NYSE:THG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Hanover Insurance Group Interest Coverage Related Terms
The Hanover Insurance Group Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The Hanover Insurance Group Interest Coverage Chart
THG vs KNSL, MCY, SIGI: Interest Coverage Comparison
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's Interest Coverage falls into.
The Hanover Insurance Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The Hanover Insurance Group (THG) has a Interest Coverage of 22.95 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Hanover Insurance Group and its competitors. This is 124% above median its historical median of 10.24. Over the past decade, The Hanover Insurance Group's Interest Coverage has ranged from 2.21 to 21.24. According to the industry distribution chart, The Hanover Insurance Group ranks #150 out of 351 companies in the Insurance industry, placing it in the top 42.7%.
Is The Hanover Insurance Group's Interest Coverage too high?
The Hanover Insurance Group's current Interest Coverage of 22.95 is 124% above median its 10-year median of 10.24. Over the past 10 years, this metric has ranged from a low of 2.21 to a high of 21.24. The Insurance industry median Interest Coverage is 16.23. The Hanover Insurance Group's value of 22.95 is 41.4% above this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #150 out of 351 companies in the Insurance industry, which is above the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's Interest Coverage compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #150 out of 351 companies for Interest Coverage. This puts The Hanover Insurance Group in the upper half of its industry. The industry median Interest Coverage is 16.23. The Hanover Insurance Group's value of 22.95 is 41.4% above this benchmark. Historically, The Hanover Insurance Group's own Interest Coverage has ranged from 2.21 to 21.24 over the past decade. While the company's 10-year median is 10.24 vs. the industry median of 16.23, The Hanover Insurance Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current Interest Coverage of 22.95 is 41.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current Interest Coverage is 22.95, which is 124% above median its own 10-year median of 10.24. 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 $201.18, compared to a current price of $207.56 — trading 3.2% above its estimated fair value. The current Interest Coverage is 22.95, which is 124% above median its 10-year median of 10.24 and 41.4% above the Insurance industry median of 16.23. The Hanover Insurance Group's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current Interest Coverage is 22.95 as of Mar. 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 $207.56 is trading 3.2% above its estimated GF Value™ of $201.18.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
Interest Coverage: 22.95 (124% above median its 10-year median of 10.24)
GF Value™: $201.18 vs. price of $207.56 (3.2% above fair value)
Industry Position: 41.4% above the Insurance median (#150 of 351)
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.
82GF Score
Get the complete analysis for THG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
THG has been successfully added to your 
