THG Earnings Prediction
The chart below shows how THG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, THG sees a +0.45% change in stock price 10 days leading up to the earnings, and a +2.39% change 10 days following the report. On the earnings day itself, the stock moves by -0.59%. This data can give you a slight idea of what to expect for the next quarter's release.
THG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.59B
4.41%
2.28%
Gross Margin
--
--
--
Operating Margin
14.18%
41.66%
73.35%
Net Margin
10.52%
49.22%
60.12%
EPS
4.59
58.82%
63.93%
No Data Available
THG Earnings Analysis
Hanover Insurance Group Inc Corporation (THG.N) Earnings Conference Call
Positive
Record Operating Return on Equity: Record operating return on equity of 24.4% for Q4 2024, reflecting strong financial performance.
Operational Efficiency Improvement: Improved ex-cat combined ratio by 2.7 points year over year to 87.5%, indicating enhanced operational efficiency.
Premium Growth Acceleration: Net written premiums grew by 7.4% in Q4 2024, marking a significant acceleration in premium growth.
Operating Income Surge: Full-year operating income increased by 29% excluding catastrophes, showcasing robust underlying earnings power.
Book Value Increase: Book value increased by 14.9% throughout 2024, driven by strong earnings and a commitment to shareholder value.
Negative
Expense Ratio Concerns: Expense ratio increased to 31.3% for the year, exceeding expectations due to higher variable expenses, indicating potential cost management issues.
Personal Lines Premium Strategy: Net written premium growth in personal lines was impacted by a deliberate strategy to reduce policies in select states, particularly in the Midwest, resulting in a 3.2% increase compared to 10.1% for all other states.
Underwriting Performance Deterioration: Core commercial current accident year ex-cat loss ratio was 58.9% in the quarter, approximately half a point higher than in 2023, indicating a slight deterioration in underwriting performance.
Combined Ratio Analysis: The combined ratio for the full year was 94.8%, which, while an improvement, still reflects challenges in managing overall loss ratios and expenses effectively.
Catastrophe Loss Exposure: Catastrophe losses for the year were 6.4%, indicating ongoing exposure to natural disasters and the associated financial impact on the company's performance.
THG FAQs
How does THG typically perform around its earnings report dates?
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THG Earning Call Sentiment
The Hanover Insurance Group, Inc. (NYSE:THG) Q4 2024 Earnings Call Transcript
THG.N
-0.23%Positive
The earnings call reveals strong financial performance with record ROE, improved combined ratios, and significant premium growth. Despite some risks, the company has taken proactive measures to mitigate them. The Q&A session highlights optimism in growth opportunities and prudent reserving strategies. The dividend increase and share repurchase plans further bolster positive sentiment. Considering the company's market cap, these factors suggest a positive stock price movement in the next two weeks.
