The Hanover Insurance Group price target raised to $200 from $185 at Citizens JMP

Investing.com - Citizens JMP raised its price target on The Hanover Insurance Group (NYSE:THG) stock to $200 from $185 on Thursday, maintaining a Market Outperform rating following better-than-expected second-quarter results. According to InvestingPro data, the company appears undervalued, with analysts setting targets between $170 and $205.

The Hanover Insurance Group reported operating earnings per share of $4.35 for the second quarter of 2025, exceeding both Citizens JMP’s estimate of $3.37 and the consensus estimate of $3.12.

The insurance company’s performance was driven by a better-than-projected ex-catastrophe accident year loss ratio of 56% versus the estimated 58%, with strong results in both Core Commercial and Specialty segments due to favorable property outcomes.

The insurer also benefited from better-than-projected favorable prior period development of $18.1 million versus the estimated $3.5 million, and lower catastrophe losses of $108 million compared to the $113 million estimate.

Citizens JMP highlighted that The Hanover’s small and middle-market focus should insulate it from areas experiencing increased competition, while its Personal Lines business showed significant year-over-year improvement with sustained price increases of 16% in homeowners and 10% in auto insurance.

In other recent news, The Hanover Insurance Group reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $3.87, compared to the forecasted $3.48. However, the company’s revenue for the same period was $1.51 billion, which did not meet the anticipated $1.55 billion. Despite the revenue shortfall, Hanover Insurance emphasized its strong operational performance and strategic initiatives aimed at sustaining growth. Additionally, the company has declared a quarterly dividend of $0.90 per share, to be distributed on June 27, 2025, to shareholders on record as of June 13, 2025. This decision underscores Hanover’s commitment to returning value to its investors. These developments reflect the company’s ongoing efforts to balance investor returns with operational growth.

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