Hanover Insurance vs Essent

Hanover Insurance Group Inc., The and Essent Group Ltd are compared on this page to explore how their business models, financial performance, and market context relate. The comparison presents neutral, accessible information about each company, without recommendations or figures. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

THG

Metric

ESNT

$6.08B

Market Cap

$5.88B

13.27%

Potential Profit

8.66%

Buy

Analyst Rating

Buy

Investment Analysis

Hanover Insurance

THG

Pros

Reported record operating return on equity of 18.7% in Q2 2025, demonstrating strong profitability and efficient capital use.
Achieved a 25% year-over-year increase in operating earnings per share, reflecting robust earnings growth amid a competitive market.
Guidance for 6-7% net written premium growth in 2025 supports positive revenue momentum and market expansion prospects.

Considerations

Revenue growth has been mediocre over the last five years with limited improvement expected in the near term.
Book value per share growth has been weak historically, and projected earnings per share growth appears modest compared to peers.
Operating in a highly competitive property insurance market that faces challenges such as increasing catastrophe losses and regulatory complexities.

Essent

ESNT

Pros

Essent Group Ltd operates as a leading privately held mortgage insurer with strong exposure to the US housing finance market, benefiting from rising homeownership demand.
The company’s diversified risk management approach mitigates credit risk effectively, supporting stable underwriting results.
Has demonstrated consistent premium growth supported by robust market position and favourable macroeconomic housing trends.

Considerations

Sensitive to fluctuations in the US housing market, including mortgage delinquencies and home price volatility, impacting credit loss exposure.
Regulatory scrutiny and evolving capital requirements create ongoing compliance and operational challenges.
Exposure to rising interest rates could pressure refinancing activity and affect long-term growth prospects.

About The Companies

Hanover Insurance (THG)

The Hanover Insurance Group, Inc. (THG) is a holding company operating in the property and casualty insurance sector in the United States. The company provides a range of insurance products and services through its various subsidiaries. It is structured into three primary segments: Core Commercial, which serves small and mid-sized businesses; Specialty, which offers tailored products for niche markets like marine and surety; and Personal Lines, which covers individuals with home and car insurance. As a holding company, The Hanover oversees its group of businesses, which also includes an investment advisory service. This structure allows it to participate in different areas of the insurance market, from standard commercial policies to highly specialised coverage. Investors may find it useful to consider the performance of these distinct segments, as the insurance industry is influenced by economic conditions, claims frequency, and regulatory changes. All investments carry risk, and their value can fall as well as rise.

Essent (ESNT)

Essent Group Ltd. is a holding company, based in Bermuda, that plays a specialised role in the US housing finance system. Through its subsidiaries, it primarily offers private mortgage insurance (PMI) and reinsurance. This insurance protects mortgage lenders and investors from losses if a borrower defaults on their home loan, which is particularly relevant for mortgages with a lower down payment. Its main subsidiary, Essent Guaranty, Inc., is a key provider in the US market. The company also engages in reinsurance through Essent Reinsurance Ltd. and provides some contract underwriting services. For investors, Essent represents a focused play on the health of the US housing market and the ongoing need for credit risk management. The company's performance is often tied to employment trends, home price appreciation, and the overall volume of mortgage lending. As with any financial company, its value can rise as well as fall.

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Comparison Snapshot