MGIC Investment vs Hanover Insurance

MGIC Investment and Hanover Insurance are compared on this page, focusing on business models, financial performance, and market context. The aim is to present clear, neutral information that helps readers understand strategy, operations, and competitive position without opinion. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

MTG

Metric

THG

$5.89B

Market Cap

$6.08B

2.27%

Potential Profit

13.27%

Hold

Analyst Rating

Buy

Investment Analysis

MGIC Investment

MTG

Pros

MGIC Investment delivered strong earnings, with Q3 2025 EPS of $0.83, exceeding forecasts and reflecting robust profitability.
The company maintains a leading position in the mortgage insurance market, with $300 billion in insurance in force and a solid balance sheet.
MGIC's return on equity stood at 14.8% and book value per share increased 11% year-over-year, indicating effective capital management.

Considerations

Revenue for Q3 2025 was slightly below expectations, missing by 1.11%, suggesting possible headwinds in premium growth.
Analyst ratings are neutral, with an average 'Hold' recommendation and a price target below the current share price.
Technical indicators show recent sell signals and limited upside momentum, with resistance levels near current prices.

Hanover Insurance

THG

Pros

Hanover Insurance reported Q3 2025 EPS of $5.09, beating forecasts by over 22%, demonstrating strong earnings momentum.
The company operates with a solid return on equity of 14.82% and maintains a diversified property and casualty insurance portfolio.
Hanover Insurance has a stable management team and no promoter pledging, reflecting sound corporate governance.

Considerations

Revenue for Q3 2025 missed expectations, and recent financial reports show no profit after tax for the trailing twelve months.
Operating and net margins are relatively modest at 9.36% and 7% respectively, indicating limited pricing power or efficiency gains.
The company's dividend yield is not disclosed, suggesting limited income return for investors.

About The Companies

MGIC Investment (MTG)

MGIC Investment Corp. (MTG) is a leading US private mortgage insurer that helps lenders manage credit risk on mortgage loans. The company earns premiums from mortgage insurance policies and invests premium proceeds, while paying claims when insured borrowers default. Its financial performance is tied closely to the US housing market, borrower credit profiles, unemployment and interest-rate trends. MGIC’s capital levels, underwriting standards and loss reserves are key indicators investors watch, as are regulatory developments affecting mortgage lending. The business can be cyclical: stronger home prices and employment generally reduce claims, while downturns can increase losses. This summary is for general educational purposes only and is not personal financial advice. Mortgage-insurance stocks can be volatile and suitability depends on an investor’s objectives, time horizon and risk tolerance; consult a qualified adviser before making investment decisions.

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.

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

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Which Baskets Do They Appear In?

The Great Mortgage Privatization

Published: August 11, 2025

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Comparison Snapshot