The Hanover Insurance GroupTHG +2.05%81 Return-on-Tangible-Equity is 22.03% as of Mar. 2026, which is 67% above its 10-year median of 13.22. GuruFocus rates THG with a GF Score™ of 81/100 and a GF Value™ of $201.49 (Fairly Valued). The stock has 8 warning signs investors should review. Among 501 Insurance companies, The Hanover Insurance Group ranks better than 73.05% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Hanover Insurance Group's annualized net income for the quarter that ended in Mar. 2026 was $747 Mil. The Hanover Insurance Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,392 Mil. Therefore, The Hanover Insurance Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.03%.
The historical rank and industry rank for The Hanover Insurance Group's Return-on-Tangible-Equity or its related term are showing as below:
THG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.59 Med: 13.22 Max: 22.63
Current: 22.63
During the past 13 years, The Hanover Insurance Group's highest Return-on-Tangible-Equity was 22.63%. The lowest was 1.59%. And the median was 13.22%.
THG's Return-on-Tangible-Equity is ranked better than 73.05% of 501
companies
in the Insurance industry
Industry Median: 13.51
vs THG: 22.63
The Hanover Insurance Group (NYSE:THG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Hanover Insurance Group Return-on-Tangible-Equity Related Terms
The Hanover Insurance Group Return-on-Tangible-Equity 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.
The Hanover Insurance Group Return-on-Tangible-Equity Chart
THG vs KNSL, MCY, SIGI: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.03% mean?
The Hanover Insurance Group (THG) has a Return-on-Tangible-Equity of 22.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Hanover Insurance Group and its competitors. This is 67% above median its historical median of 13.22. Over the past decade, The Hanover Insurance Group's Return-on-Tangible-Equity has ranged from 1.59 to 22.63. According to the industry distribution chart, The Hanover Insurance Group ranks #135 out of 501 companies in the Insurance industry, placing it in the top 26.9%.
Is The Hanover Insurance Group's Return-on-Tangible-Equity too high?
The Hanover Insurance Group's current Return-on-Tangible-Equity of 22.03% is 67% above median its 10-year median of 13.22. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 22.63. The Insurance industry median Return-on-Tangible-Equity is 13.51. The Hanover Insurance Group's value of 22.03% is 63.1% above this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #135 out of 501 companies in the Insurance industry, which is above the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's Return-on-Tangible-Equity compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #135 out of 501 companies for Return-on-Tangible-Equity. This puts The Hanover Insurance Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.51. The Hanover Insurance Group's value of 22.03% is 63.1% above this benchmark. Historically, The Hanover Insurance Group's own Return-on-Tangible-Equity has ranged from 1.59 to 22.63 over the past decade. While the company's 10-year median is 13.22 vs. the industry median of 13.51, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.51, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current Return-on-Tangible-Equity of 22.03% is 63.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current Return-on-Tangible-Equity is 22.03%, which is 67% above median its own 10-year median of 13.22. 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 $201.49, compared to a current price of $218.50 — trading 8.4% above its estimated fair value. The current Return-on-Tangible-Equity is 22.03%, which is 67% above median its 10-year median of 13.22 and 63.1% above the Insurance industry median of 13.51. The Hanover Insurance Group's overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current Return-on-Tangible-Equity is 22.03% 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 $218.50 is trading 8.4% above its estimated GF Value™ of $201.49.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
Return-on-Tangible-Equity: 22.03% (67% above median its 10-year median of 13.22)
GF Value™: $201.49 vs. price of $218.50 (8.4% above fair value)
Industry Position: 63.1% above the Insurance median (#135 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.
81GF Score
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