The Hanover Insurance GroupTHG -1.35%82 Pretax Margin % is 14.03% as of Mar. 2026, which is 81% above its 10-year median of 7.76. 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 501 Insurance companies, The Hanover Insurance Group ranks better than 55.69% on this metric.
The historical rank and industry rank for The Hanover Insurance Group's Pretax Margin % or its related term are showing as below:
THG'
s Pretax Margin % Range Over the Past 10 Years
Min: 0.69 Med: 7.76 Max: 13.82
Current: 13.82
THG's Pretax Margin % is ranked better than 55.69% of 501
companies
in the Insurance industry
Industry Median: 12.04
vs THG: 13.82
The Hanover Insurance Group (NYSE:THG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
The Hanover Insurance Group Pretax Margin % Related Terms
The Hanover Insurance Group Pretax Margin % 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.
THG vs KNSL, MCY, SIGI: Pretax Margin % Comparison
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's Pretax Margin % falls into.
* 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 Pretax Margin % of 14.03% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Hanover Insurance Group and its competitors. This is 81% above median its historical median of 7.76. Over the past decade, The Hanover Insurance Group's Pretax Margin % has ranged from 0.69 to 13.82. According to the industry distribution chart, The Hanover Insurance Group ranks #222 out of 501 companies in the Insurance industry, placing it in the top 44.3%.
Is The Hanover Insurance Group's Pretax Margin % too high?
The Hanover Insurance Group's current Pretax Margin % of 14.03% is 81% above median its 10-year median of 7.76. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 13.82. The Insurance industry median Pretax Margin % is 12.04. The Hanover Insurance Group's value of 14.03% is 16.5% above this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #222 out of 501 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 Pretax Margin % compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #222 out of 501 companies for Pretax Margin %. This puts The Hanover Insurance Group in the upper half of its industry. The industry median Pretax Margin % is 12.04. The Hanover Insurance Group's value of 14.03% is 16.5% above this benchmark. Historically, The Hanover Insurance Group's own Pretax Margin % has ranged from 0.69 to 13.82 over the past decade. While the company's 10-year median is 7.76 vs. the industry median of 12.04, 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.04, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current Pretax Margin % of 14.03% is 16.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median Pretax Margin % is 12.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current Pretax Margin % is 14.03%, which is 81% above median its own 10-year median of 7.76. 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 Pretax Margin % is 14.03%, which is 81% above median its 10-year median of 7.76 and 16.5% above the Insurance industry median of 12.04. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current Pretax Margin % is 14.03% 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:
Pretax Margin %: 14.03% (81% above median its 10-year median of 7.76)
GF Value™: $201.18 vs. price of $207.56 (3.2% above fair value)
Industry Position: 16.5% above the Insurance median (#222 of 501)
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
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