The historical rank and industry rank for The Hanover Insurance Group's ROE % or its related term are showing as below:
THG'
s ROE % Range Over the Past 10 Years
Min: 1.47 Med: 12.44 Max: 21.42
Current: 21.42
During the past 13 years, The Hanover Insurance Group's highest ROE % was 21.42%. The lowest was 1.47%. And the median was 12.44%.
THG's ROE % is ranked better than 81.67% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs THG: 21.42
The Hanover Insurance Group (NYSE:THG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's ROE % distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
The Hanover Insurance Group (THG) has a ROE % of 20.92% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Hanover Insurance Group and its competitors. This is 68% above median its historical median of 12.44. Over the past decade, The Hanover Insurance Group's ROE % has ranged from 1.47 to 21.42. According to the industry distribution chart, The Hanover Insurance Group ranks #92 out of 502 companies in the Insurance industry, placing it in the top 18.3%.
Is The Hanover Insurance Group's ROE % too high?
The Hanover Insurance Group's current ROE % of 20.92% is 68% above median its 10-year median of 12.44. Over the past 10 years, this metric has ranged from a low of 1.47 to a high of 21.42. The Insurance industry median ROE % is 11.73. The Hanover Insurance Group's value of 20.92% is 78.3% above this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #92 out of 502 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #92 out of 502 companies for ROE %. This places The Hanover Insurance Group in the top 18% of its industry — outperforming the majority of peers. The industry median ROE % is 11.73. The Hanover Insurance Group's value of 20.92% is 78.3% above this benchmark. Historically, The Hanover Insurance Group's own ROE % has ranged from 1.47 to 21.42 over the past decade. While the company's 10-year median is 12.44 vs. the industry median of 11.73, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current ROE % of 20.92% is 78.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current ROE % is 20.92%, which is 68% above median its own 10-year median of 12.44. 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 ROE % is 20.92%, which is 68% above median its 10-year median of 12.44 and 78.3% above the Insurance industry median of 11.73. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current ROE % is 20.92% 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:
ROE %: 20.92% (68% above median its 10-year median of 12.44)
GF Value™: $201.18 vs. price of $207.56 (3.2% above fair value)
Industry Position: 78.3% above the Insurance median (#92 of 502)
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
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