3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Hanover Insurance Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 25.70%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Hanover Insurance Group's 3-Year ROIIC % or its related term are showing as below:
THG's 3-Year ROIIC % is ranked better than 81.63% of 332
companies
in the Insurance industry
Industry Median: 5.275
vs THG: 25.70
The Hanover Insurance Group (NYSE:THG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Hanover Insurance Group 3-Year ROIIC % Related Terms
The Hanover Insurance Group 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 694.521 (Dec. 2025) - 144.45691 (Dec. 2022) )
/
( 15299.665 (Dec. 2025) - 13159.745 (Dec. 2022) )
=
550.06409
/
2139.92
=
25.70%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Hanover Insurance Group (THG) has a 3-Year ROIIC % of 25.70 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Hanover Insurance Group and its competitors. According to the industry distribution chart, The Hanover Insurance Group ranks #61 out of 332 companies in the Insurance industry, placing it in the top 18.4%.
Is The Hanover Insurance Group's 3-Year ROIIC % too high?
The Hanover Insurance Group's current 3-Year ROIIC % is 25.70. The Insurance industry median 3-Year ROIIC % is 5.28. The Hanover Insurance Group's value of 25.70 is 387.2% above this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #61 out of 332 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 3-Year ROIIC % compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #61 out of 332 companies for 3-Year ROIIC %. This places The Hanover Insurance Group in the top 18% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.28. The Hanover Insurance Group's value of 25.70 is 387.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.28, based on 332 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current 3-Year ROIIC % of 25.70 is 387.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current 3-Year ROIIC % is 25.70. 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 $201.68, compared to a current price of $221.61 — trading 9.9% above its estimated fair value. The current 3-Year ROIIC % is 25.70 and 387.2% above the Insurance industry median of 5.28. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current 3-Year ROIIC % is 25.70 as of Dec. 2025. 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 $221.61 is trading 9.9% above its estimated GF Value™ of $201.68.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
3-Year ROIIC %: 25.70
GF Value™: $201.68 vs. price of $221.61 (9.9% above fair value)
Industry Position: 387.2% above the Insurance median (#61 of 332)
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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