The Hanover Insurance Group, Inc. (THG): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de l'assurance, le Hanover Insurance Group, Inc. (THG) apparaît comme une puissance stratégique, fabriquant méticuleusement son modèle commercial pour naviguer sur le terrain complexe de la gestion des risques et des solutions centrées sur le client. En tirant ingénieusement des agents indépendants, des technologies de pointe et des offres d'assurance complètes, THG a transformé les paradigmes d'assurance traditionnels en un cadre sophistiqué et adaptable qui répond aux besoins nuancés des clients personnels et commerciaux. Cette exploration de toile de modèle commercial dévoile les mécanismes complexes qui propulsent l'avantage concurrentiel de Thg, révélant comment les partenariats stratégiques, les ressources innovantes et les stratégies de distribution multicanal convergent pour créer un écosystème d'assurance robuste et résilient.

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: partenariats clés

Agents et courtiers d'assurance indépendants

En 2024, le Hanover Insurance Group maintient un réseau d'environ 5 000 agents et courtiers d'assurance indépendants à travers les États-Unis. Ces partenariats génèrent environ 80% du chiffre d'affaires total des primes d'assurance de la société.

Métrique de partenariat	Valeur
Agents indépendants totaux	5,000
Revenus primes des agents	80%
Taux de commission moyen	10-15%

Réassurance des entreprises pour le partage des risques

Le Hanover Insurance Group collabore avec plusieurs partenaires de réassurance pour gérer l'exposition aux risques. Les relations de réassurance clés comprennent:

• Munich re
• Suisse re
• Lloyd's of London
• Hanover re

Partenaire de réassurance	Capacité de risque	Type de contrat
Munich re	500 millions de dollars	Excès de perte
Suisse re	350 millions de dollars	Traité proportionnel

Vendeurs technologiques pour l'infrastructure numérique

Le Hanover Insurance Group investit environ 45 millions de dollars par an en partenariats technologiques pour améliorer les capacités numériques.

• Microsoft Azure pour l'infrastructure cloud
• Guidewire Logiciel pour les systèmes de base d'assurance
• Salesforce pour la gestion de la relation client

Partenaire technologique	Investissement annuel	Service primaire
Logiciel Guidewire	15 millions de dollars	Systèmes de base d'assurance
Microsoft Azure	12 millions de dollars	Infrastructure cloud

Alliances stratégiques avec des réseaux de réparation automobile et de maison

Le Hanover maintient des partenariats stratégiques avec environ 7 500 ateliers de réparation automobile et 3 200 entrepreneurs de réparation à domicile à l'échelle nationale.

Réseau de réparation	Total des partenaires	Réduction des coûts de réparation moyenne
Ateliers de réparation automobile	7,500	12-15%
Entrepreneurs de réparation à domicile	3,200	10-13%

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: activités clés

Souscription d'assurance des biens et des victimes

En 2023, le Hanover Insurance Group a déclaré des primes écrites brutes de 6,4 milliards de dollars. Les activités de souscription d'assurance immobilière de l'entreprise se sont concentrées sur:

• Assurance des lignes commerciales
• Assurance des lignes personnelles
• Segments d'assurance spécialisés

Segment de l'assurance	Primes écrites brutes	Part de marché
Lignes commerciales	3,8 milliards de dollars	2.5%
Lignes personnelles	2,6 milliards de dollars	1.8%

Évaluation et gestion des risques

Le Hanover utilise des technologies avancées d'évaluation des risques avec 68,3 millions de dollars investis dans l'infrastructure de gestion des risques. Les stratégies clés de gestion des risques comprennent:

• Modélisation prédictive
• Analyse des données
• Protocoles d'évaluation des risques complets

Traitement des réclamations et service client

En 2023, l'entreprise a traité 387 000 réclamations avec un temps de résolution moyen de 14,2 jours. Les métriques du service client incluses:

Métrique	Performance
Taux de résolution des réclamations	98.6%
Score de satisfaction du client	4.7/5

Développement et innovation de produits

Le hanover alloué 42,5 millions de dollars à la recherche et au développement de produits en 2023, en se concentrant sur:

• Produits de cyber-assurance
• Solutions d'assurance basées sur la télématique
• Packages de risques commerciaux personnalisés

Transformation numérique et intégration technologique

L'investissement technologique a totalisé 95,2 millions de dollars en 2023, avec des initiatives technologiques clés, notamment:

• Traitement des réclamations alimentées par AI
• Améliorations des applications mobiles
• Modernisation des infrastructures cloud

Zone d'investissement technologique	Dépenses
IA et apprentissage automatique	35,6 millions de dollars
Infrastructure cloud	29,4 millions de dollars
Cybersécurité	30,2 millions de dollars

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: Ressources clés

Capital financier solide et réserves

Au quatrième trimestre 2023, le Hanover Insurance Group a rapporté:

Métrique financière	Montant
Actif total	19,4 milliards de dollars
Total des capitaux propres des actionnaires	2,8 milliards de dollars
Total et investissements totaux	16,3 milliards de dollars

Équipes de gestion de la souscription et des réclamations expérimentées

Statistiques clés du personnel:

• Total des employés: 4 800
• Expérience de souscription moyenne: plus de 12 ans
• Professionnels des réclamations: 850

Analyse avancée des données et capacités de modélisation des risques

Détails de l'investissement technologique:

Catégorie d'investissement technologique	Dépenses annuelles
Infrastructure d'analyse de données	45 millions de dollars
Logiciel de modélisation des risques	22 millions de dollars
Outils de modélisation prédictive	18 millions de dollars

Technologie robuste et plateformes numériques

• Investissement de plate-forme numérique: 62 millions de dollars en 2023
• Infrastructure de cloud computing: 28 millions de dollars
• Systèmes de cybersécurité: 17 millions de dollars

Base de données des clients approfondies et informations sur le marché

Métrique de la base de données client	Nombre
Clients actifs totaux	2,3 millions
Clients d'assurance commerciale	85,000
Clients de lignes personnelles	2,2 millions

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: propositions de valeur

Couverture d'assurance complète

En 2024, le Hanover Insurance Group propose des produits d'assurance sur plusieurs segments avec la ventilation suivante:

Segment de l'assurance	Volume de prime annuel	Part de marché
Lignes personnelles	2,1 milliards de dollars	3.7%
Lignes commerciales	3,4 milliards de dollars	4.2%
Lignes de spécialité	1,2 milliard de dollars	2.9%

Solutions de gestion des risques sur mesure

Les offres de gestion des risques comprennent:

• Évaluation des risques d'entreprise
• Programmes d'assurance personnalisés
• Stratégies de prévention des pertes

Efficacité de traitement des réclamations

Réclamations Traitement des mesures pour 2024:

• Temps de résolution des réclamations moyennes: 7,2 jours
• Évaluation de satisfaction du client: 4.6 / 5
• Taux de soumission des réclamations numériques: 82%

Prix ​​et stabilité financière

Indicateurs de performance financière:

Métrique financière	Valeur 2024
Revenus totaux	6,8 milliards de dollars
Revenu net	482 millions de dollars
Rapport combiné	94.3%
SUIS. Meilleure note de force financière	A (excellent)

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: relations avec les clients

Interactions d'agent personnel

En 2024, le Hanover Insurance Group maintient un réseau d'environ 4 500 agents d'assurance indépendants aux États-Unis. Ces agents desservent en moyenne 2 300 comptes clients directs par an.

Métriques d'interaction d'agent	Données annuelles
Agents indépendants totaux	4,500
Comptes clients moyens par agent	2,300
Temps d'interaction du client moyen	37 minutes

Plates-formes de libre-service numériques

La plate-forme numérique de l'entreprise prend en charge environ 1,2 million de comptes d'utilisateurs en ligne avec un taux d'engagement en libre-service numérique de 78%.

• Gestion des politiques en ligne
• Traitement des réclamations numériques
• Services d'applications mobiles

Support client 24/7

Le Hanover exploite un centre de support client avec 3,6 millions d'interactions client par an, avec un temps de réponse moyen de 12 minutes.

Canal de support	Volume d'interaction annuel
Support téléphonique	2,1 millions
Chat en ligne	1,1 million
Assistance par e-mail	400,000

Conseils de gestion des risques personnalisés

Le groupe d'assurance fournit des services d'évaluation des risques personnalisés à 85% des clients commerciaux, avec des consultants en gestion des risques dédiés affectés à des comptes supérieurs à 500 000 $ en prime annuelle.

Programmes de fidélité et rétention de la clientèle

Le taux de rétention de la clientèle de Hanover s'élève à 87%, avec un programme de fidélité couvrant environ 62% des clients d'assurance personnelle et commerciale.

Métriques de fidélisation de la clientèle	Pourcentage
Taux de rétention global	87%
Couverture du programme de fidélité	62%
Tarif de renouvellement pour les clients commerciaux	92%

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: canaux

Agents d'assurance indépendants

En 2023, le Hanover Insurance Group travaille avec Environ 5 000 agents d'assurance indépendants aux États-Unis. Ces agents représentent 70% des canaux de distribution d'assurance totale de la société.

Type de canal	Nombre d'agents	Couverture du marché
Agents d'assurance indépendants	5,000	70% de la distribution

Plateforme de vente en ligne directe

La plate-forme numérique de Hanover traitée 412 millions de dollars en primes directes en ligne en 2022, représentant 15% des primes écrites directes totales.

• Plateforme en ligne lancée en 2015
• Site Web sensible au mobile
• Génération de citations en temps réel

Application mobile

L'application mobile de Hanover, introduite en 2019, a Plus de 250 000 utilisateurs actifs En 2023.

Métrique de l'application	2023 données
Utilisateurs actifs	250,000
Note de l'App Store	4.3/5

Centres d'appel

L'entreprise exploite 7 centres d'appels régionaux gérer environ 1,2 million d'interactions client par an.

Sites Web de comparaison tiers

Le Hanover s'associe à 12 plates-formes de comparaison d'assurance majeures, générant à peu près 85 millions de dollars en primes annuelles à travers ces canaux.

Site de comparaison	Génération annuelle de primes
Plates-formes tierces totales	85 millions de dollars
Nombre de plateformes	12

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: segments de clientèle

Assurance des lignes personnelles

Le Hanover Insurance Group dessert les clients des lignes personnelles avec la ventilation du marché suivante:

Produit d'assurance	Part de marché	Volume de prime annuel
Assurance automobile	3.2%	1,2 milliard de dollars
Assurance habitation	2.8%	850 millions de dollars
Assurance parapluie	1.5%	220 millions de dollars

Assurance des lignes commerciales

Distribution des clients du segment commercial:

• Petites entreprises (1-50 employés): 62% du portefeuille commercial
• Moyennes entreprises (51-500 employés): 28% du portefeuille commercial
• Grandes entreprises (plus de 500 employés): 10% du portefeuille commercial

Marchés d'assurance spécialisés

Segment de spécialité	Primes annuelles	Pénétration du marché
Responsabilité professionnelle	475 millions de dollars	4.1%
Indemnisation des accidents du travail	620 millions de dollars	3.7%
Marine intérieur	290 millions de dollars	2.9%

Segment des consommateurs individuels

Déchange démographique individuelle des consommateurs:

• 25 à 44 ans: 38% de la clientèle
• 45 à 64 ans: 42% de la clientèle
• 65 ans et plus: 20% de la clientèle

Propriétaires d'entreprises dans toutes les industries

Secteur de l'industrie	Pourcentage de clients commerciaux	Prime annuelle moyenne
Vente au détail	22%	$85,000
Fabrication	18%	$125,000
Construction	15%	$95,000
Services professionnels	12%	$65,000
Autres industries	33%	$75,000

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: Structure des coûts

Réclame les paiements et les réserves de perte

Depuis 2022, les rapports financiers, le Hanover Insurance Group a déclaré des réclamations totales et des frais de perte de 2,79 milliards de dollars. Les réserves de pertes ont été documentées à 4,93 milliards de dollars.

Catégorie de coûts	Montant (2022)
Propriété & Réclamations de victimes	2,14 milliards de dollars
Réclamations de lignes commerciales	1,65 milliard de dollars

Commissions d'agent et frais de vente

Les dépenses totales de la commission pour 2022 étaient 465,3 millions de dollars. Les taux de commission des agents variaient selon la gamme de produits:

• Lignes personnelles: taux de commission de 10 à 15%
• Lignes commerciales: taux de commission de 8 à 12%
• Total des dépenses liées aux ventes: 512,6 millions de dollars

Investissements technologiques et infrastructures

Les dépenses technologiques en 2022 ont atteint 187,4 millions de dollars, représentant 3,2% du total des dépenses d'exploitation.

Zone d'investissement technologique	Dépense
Développement de plate-forme numérique	62,1 millions de dollars
Infrastructure de cybersécurité	41,3 millions de dollars

Salaires et avantages sociaux des employés

La rémunération totale des employés pour 2022 était 612,7 millions de dollars.

• Salaire moyen des employés: 89 400 $
• Attribution des avantages: 22% de la rémunération totale
• Total de main-d'œuvre: 5100 employés

Coûts de marketing et d'acquisition des clients

Les dépenses de marketing en 2022 ont totalisé 214,6 millions de dollars.

Canal de marketing	Dépenses
Marketing numérique	87,3 millions de dollars
Publicité médiatique traditionnelle	63,9 millions de dollars
Marketing direct	43,4 millions de dollars

The Hanover Insurance Group, Inc. (THG) - Modèle d'entreprise: sources de revenus

Primes d'assurance des lignes personnelles

Pour l'exercice 2022, le Hanover Insurance Group a rapporté 2,36 milliards de dollars dans les primes d'assurance des lignes personnelles.

Segment des lignes personnelles	Revenus (2022)
Assurance automobile	1,24 milliard de dollars
Assurance habitation	892 millions de dollars
Autres lignes personnelles	224 millions de dollars

Primes d'assurance commerciale

Les primes d'assurance commerciale pour le groupe d'assurance Hanover ont totalisé 2,84 milliards de dollars en 2022.

• Péril multiple commercial: 1,12 milliard de dollars
• Indemnisation des accidents du travail: 642 millions de dollars
• Auto commercial: 518 millions de dollars
• Autres lignes commerciales: 558 millions de dollars

Revenu de placement des réserves premium

Le revenu de placement pour le groupe d'assurance Hanover était 203 millions de dollars en 2022.

Catégorie d'investissement	Revenu (2022)
Titres à maturité fixe	156 millions de dollars
Titres de capitaux propres	37 millions de dollars
Autres investissements	10 millions de dollars

Frais de produits d'assurance spécialisés

Frais de produits d'assurance spécialisés générés 124 millions de dollars en revenus en 2022.

Reinsurance et revenus de transfert des risques

Les revenus de réassurance pour le groupe d'assurance Hanover se sont élevés 287 millions de dollars en 2022.

Type de réassurance	Revenus (2022)
Réassurance immobilière	164 millions de dollars
Réassurance des victimes	93 millions de dollars
Réassurance spécialisée	30 millions de dollars

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Value Propositions

You're looking at how The Hanover Insurance Group, Inc. delivers distinct value to its customers right now, late in 2025. It's all about focused execution in commercial lines.

Tailored P&C solutions for small-to-mid-sized businesses

The Hanover targets small and mid-sized businesses with specific, measurable growth in its core segments. This isn't just a general offering; it's targeted capacity deployment.

• Small commercial premium growth was 5.6% in the second quarter of 2025.
• Middle market premium growth reached 2.4% in the second quarter of 2025.
• Small commercial saw a 7.6% premium increase in the third quarter of 2025.
• Core Commercial renewal price increases averaged 10.7% in the second quarter of 2025.
• Core Commercial rate increases averaged 9.0% in the second quarter of 2025.

Here's the quick math on the Core Commercial segment's recent pricing discipline.

Metric (Q2 2025)	Small Commercial Growth	Middle Market Growth	Core Commercial Renewal Price Increase
Value	5.6%	2.4%	10.7%

Specialized coverage for niche sectors (e.g., Life Sciences, Marine)

The Specialty segment is a key value driver, showing strong underwriting results and targeted expansion into complex risks. This segment's combined ratio was 86.5% in the second quarter of 2025.

• The overall Specialty segment net written premium growth was 4.6% in the second quarter of 2025.
• The Hanover Insurance Group set a target of around 10% compound annual growth in Specialty written premiums over the next five years.
• In August 2025, coverage expanded to over 15 new classes of life sciences organizations.
• Projected Specialty growth for the second half of 2025 included E&S growing 22%, surety up 13%, and health care increasing 8%.
• Net favorable prior-year reserve development in Q1 2025 was led by marine and professional and executive lines business.

Account-oriented approach with multi-line policies (Hanover Fusion)

The account-oriented strategy centers on bundling coverages to simplify risk management for clients with complex exposures. This is where the unified policy structure comes into play.

• The Hanover Fusion product bundles multi-line liability coverage, specifically including products-completed operations, errors and omissions, and cyber liability, into a unified form.
• The company is offering tailored endorsements for life sciences clients, such as specialized property and general liability coverage.

Combining broad product offerings with local underwriting flexibility

The Hanover leverages its structure to offer both standardized products and the ability for underwriters to apply local judgment, especially in specialty lines where risk profiles vary widely.

• Specialty renewal price increases averaged 7.8% in the second quarter of 2025, with rate increases of 5.5%.
• In the third quarter of 2025, Specialty renewal price increases averaged 8.3%.

Streamlined digital quoting and issuance via TAP Sales for agents

Digital tools are a core value proposition for the distribution network, making it faster for agents to serve small commercial clients. This efficiency translates directly into better service delivery.

• The TAP Sales quote-and-issue platform reduces the time to generate a quote by nearly 50%.
• The TAP Sales platform allows agents to issue enhanced business owner policies.
• The platform also enables agents to quote and issue specialty lines of business online.

Finance: draft 13-week cash view by Friday.

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Customer Relationships

You're looking at how The Hanover Insurance Group, Inc. (THG) maintains its connections with the market, which is heavily reliant on its distribution partners. The core relationship strategy centers on a selective, high-quality agency force.

High-touch, consultative service through independent agents

The Hanover Insurance Group, Inc. provides its exceptional insurance solutions through a select group of independent agents and brokers. The company operates with an estimated network of approximately 2,000 Independent Agents, supported by more than 4,000 employees, which allows for a balance between national resources and local attention. This structure supports a high-touch approach where agents act as trusted advisors.

• Reliance on a select group of independent agents.
• Focus on small and mid-sized businesses, homes, and personal items.
• Agent guidance is critical for risk mitigation advice.

Dedicated specialized underwriters for complex risks

Relationships extend into specialized underwriting capacity, particularly for commercial risks. The Specialty segment, which includes Property and Casualty, Professional, and Executive Lines, accounted for 23% of the business mix as of a May 2025 presentation. This indicates a dedicated relationship structure for clients requiring more nuanced risk assessment beyond standard offerings.

Digital self-service tools for agents and policyholders

While the model is agent-centric, digital enablement is a clear priority, mirroring the broader industry trend where 74% of insurers prioritized digital transformation and technology adoption in 2025. The need for agent consultation remains high, as evidenced by homeowner survey data where only 39% of homeowners aware of umbrella insurance had discussed it with their agent or company. For policyholders, the gap between awareness and action on digital tools is visible in specific coverages:

Coverage Type	Homeowner Awareness (2025 Survey)	Homeowner Coverage in Place (2025 Survey)
Cyber Insurance	46%	7%
Valuables Coverage	87%	26%
Recreational Vehicle Insurance	94%	31%

This data suggests that digital tools must effectively support agents in closing these advice and coverage gaps.

Long-term relationship focus with top-tier agents

The stability of the distribution channel is supported by strong financial footing, which builds agent confidence. The Hanover Insurance Group, Inc. maintained an 'A' Financial Strength Rating from A.M. Best and an 'A2' rating from Moody's as of year-end 2024, which is a key relationship anchor for partners. The company's focus on profitability, such as achieving an operating Return on Equity of 18.7% in Q2 2025, underpins its ability to invest in and maintain strong agent partnerships.

Investor relations transparency via regular financial events

Transparency with financial stakeholders is maintained through consistent reporting. For instance, Q3 2025 results showed a net income of $178.7 million, or $4.90 per diluted share, and operating income of $185.6 million, or $5.09 per diluted share. The company provided detailed quarterly highlights, including a Q3 2025 combined ratio of 91.1%, demonstrating a commitment to sharing operational performance metrics with investors.

• Reported Q3 2025 Net Income: $178.7 million.
• Reported Q3 2025 Operating Earnings Per Share: $5.09.
• Reported Q3 2025 Combined Ratio: 91.1%.
• Reported Q3 2025 Net Premiums Written increase: 4.5%.

Finance: draft 13-week cash view by Friday.

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Channels

You're looking at how The Hanover Insurance Group, Inc. (THG) gets its products to the customer, and it's definitely still an agent-centric play, though heavily digitized for speed.

Independent Insurance Agents and Brokers (primary channel)

The Hanover Insurance Group, Inc. is clear about its foundation: it provides exceptional insurance solutions through a select group of independent agents and brokers. This is the core of their go-to-market advantage, especially as the market consolidates. The company is positioned to drive continued expansion by partnering with consolidators and appointing new agencies. As of early 2025, The Hanover Insurance Group, Inc. served approximately 2,100 to 2,125 agencies.

The overall business mix for 2024 showed Personal Lines at 41%, Core Commercial at 36%, and Specialty at 23% of Net Written Premium (NWP). The company's strategy reinforces this focus, aiming to deepen agency relationships and leverage market insights. For Core Commercial, retention remains high, reported at 84.4% in the third quarter of 2025, underscoring the stickiness of the business placed through these partners.

The Agency Place (TAP) Sales digital quoting platform

The Agency Place (TAP) Sales is positioned as The Hanover Insurance Group, Inc.'s industry-leading online quoting and issuance platform for agents. This platform is a key enabler of their strategy to be the best partner for winning agents. Management has stated that their ease of doing business, including the TAP Sales platform, is 'as good as the best in the industry.'

Digital enhancements are continuously rolled out to this channel. For instance, in July 2025, The Hanover Insurance Group, Inc. launched Workers' Comp Advantage on the platform. This addition allows agents to deliver a bindable Workers' Comp quote in less than two minutes, achieving up to 90% straight-through processing across many target small commercial classes. The platform supports a suite of coverages, including Business Owner's Policy, marine, and professional/management liability products.

Here's a look at the capabilities this digital channel offers agents:

Platform Feature	Metric/Detail	Segment/Context
Workers' Comp Quote Speed	Less than two minutes to deliver a bindable quote	Small Commercial (July 2025 launch)
Straight-Through Processing (STP)	Up to 90% for target classes	Workers' Comp Advantage on TAP Sales
Core Commercial Retention	84.4%	Q3 2025
Core Commercial Rate Increase	Averaged 10.7% (including 9.0% rate increase)	Q2 2025
Specialty Renewal Price Increase	Averaged 7.8% (including 5.5% rate increase)	Q2 2025

Direct digital interfaces for policy servicing

The commitment to digital extends beyond quoting to servicing, which is crucial for customer and agent retention. The Hanover Insurance Group, Inc. has invested in expanding self-service capabilities for customers. This is designed to help agents grow by solidifying their value proposition through better service delivery.

The digital servicing tools allow for:

• Policy details access via My Hanover Policy portal.
• Bill payment options available online.
• Claims reporting capabilities.
• E-delivery of policy documents and bills for agents and customers.

Wholly owned subsidiary for international business (Chaucer Holdings Limited)

The Hanover Insurance Group, Inc. completed the sale of its Chaucer-related companies, which comprised its Lloyd's international specialty business, to China Reinsurance (Group) Corporation. The final entities were sold in 2019 for total proceeds of $41 million, wrapping up a transaction that initially valued the sale at approximately $950 million. Following this divestiture, the company's focus is now on its proven and distinctive domestic business.

Company website and mobile applications

The company website, hanover.com, serves as a central hub for various stakeholders. For customers, the Hanover mobile app, alongside the My Hanover Policy portal, provides direct digital interfaces for policy servicing. The overall strategy involves leveraging technology to enhance customer service. Furthermore, the company actively uses its platform to educate the market, as evidenced by commissioning The Hanover's 2025 Homeowners Coverage Awareness Report.

The company's Q3 2025 revenue reached $1.67 billion, with Net Premiums Earned at $1.55 billion for the quarter, reflecting the strength of its core domestic property and casualty operations channeled through its network.

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Customer Segments

You're looking at who The Hanover Insurance Group, Inc. (THG) serves directly, which is really the foundation of their premium volume and underwriting strategy. They focus heavily on distinct commercial niches alongside a solid personal lines base.

The Small-to-mid-sized businesses (SME) segment is a cornerstone, representing a stated 62% of their commercial portfolio. This focus is executed primarily through the Core Commercial segment, which targets small commercial and middle market accounts. For instance, in the second quarter of 2025, the small commercial business within Core Commercial showed growth of 5.6% in net premiums written, while the middle market grew by 2.4% in that same period. Renewal price increases averaged 10.7% for Core Commercial in Q2 2025. The COO noted that efforts are being made to scale the company by leveraging transformation work, which directly supports serving these smaller, more targeted accounts.

For individuals seeking personal lines coverage-think home, auto, and personal items-this forms the largest single premium block based on recent results. The Personal Lines segment is a major revenue driver. In the third quarter of 2025, net premiums written for Personal Lines reached $739.4 million. The segment saw strong pricing discipline, with renewal price increases averaging 10.5% in Q3 2025, and average rate increases of 6.8%.

The Specialty commercial clients group is where The Hanover Insurance Group, Inc. (THG) deploys its more niche underwriting expertise. This segment is organized into specific divisions. You see clear focus areas here:

• Professional and Executive Lines
• Marine
• Specialty Property & Casualty
• Surety

In the second quarter of 2025, the Specialty segment generated net premiums written of $355.9 million. Specialty renewal price increases averaged 7.8% in Q2 2025, with average rate increases of 5.5%. The segment delivered operating income before income taxes of $71.2 million in Q2 2025.

The focus on specialized, complex risks is evident in their dedicated leadership appointments. For example, The Hanover Insurance Group, Inc. (THG) appointed a president for its technology and life sciences business in the summer of 2025, signaling a deeper commitment to early-stage and smaller Life Sciences organizations needing tailored risk solutions. This specialized approach naturally extends to businesses with complex industrial property risks, which fall under the Specialty umbrella, where underwriting sophistication is key to managing higher severity potential.

Here's a quick look at the premium volume across the main reporting segments for the second quarter of 2025, showing the relative scale of these customer groups:

Segment	Operating Revenues: Premiums (in millions)	Net Premiums Written (Q2 2025, in millions)
Personal Lines	$635.1	$679.6 (Q3 2025)
Core Commercial	$554.3	$536.0 (Q2 2025)
Specialty	$355.9	$368.2 (Q2 2025)

The total operating revenue from premiums for these three segments in Q2 2025 was $1,545.3 million. The company is definitely leaning into areas where they can differentiate their underwriting, like the lower middle market, where pricing can remain more resilient, according to the CFO in August 2025. Finance: draft 13-week cash view by Friday.

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Cost Structure

You're looking at the core outflows for The Hanover Insurance Group, Inc. (THG) to keep the engine running and the policies priced. This cost structure is heavily weighted toward claims and the distribution network, which is typical for a property and casualty carrier.

The single largest component, by far, is the cost associated with future claims payments. This isn't just what they pay out this quarter; it's the estimate for claims that have already happened but haven't been settled yet. You need to keep a close eye on these liability figures.

• Loss and Loss Adjustment Expense (LAE) reserves: $7.61 billion as of Q1 2025.

Next up is getting the product sold. The Hanover Insurance Group, Inc. relies on its independent agent network, and compensating them is a major, variable cost tied directly to premium volume. This is a key area where efficiency gains can drop straight to the bottom line.

• Agent commissions: average 10-15% of premium.

When you write a new policy or renew an existing one, you incur costs to acquire that business-things like marketing, underwriting salaries, and agent bonuses. These costs are capitalized and then systematically expensed over the life of the policy. This is the Amortization of Deferred Acquisition Costs (DAC).

Here's a quick look at how that amortization has trended across the first three quarters of 2025, based on reported figures:

Reporting Period	Amortization of Deferred Acquisition Costs (in millions)
Q1 2025	$452.7 million
Q2 2025	$319.0 million
Q3 2025	$187.8 million

The day-to-day running of the business-the operational side of underwriting and handling claims-is captured in the expense ratio. For the third quarter of 2025, the expense ratio was reported at 31.3%. This ratio is a direct measure of how efficiently The Hanover Insurance Group, Inc. manages its overhead relative to the premiums it earns. It includes salaries, rent, systems maintenance, and other general administrative costs.

The commitment to modernizing operations is clear, especially given the industry-wide focus on efficiency. The strategic spend here is aimed at reducing the LAE ratio through better data and faster processing, which is a long-term cost control lever. You'll want to track this specific investment category closely.

• Investments in technology and AI: approx. $45 million annually in tech partnerships.

To be fair, the actual operating expenses for underwriting and claims processing are embedded within the combined ratio components. If you look at the Q3 2025 results, the total cost structure components we can directly map are:

• Loss and LAE Ratio: 59.8% (Q3 2025)
• Expense Ratio (Underwriting/Operating): 31.3% (Q3 2025)
• Total Combined Ratio: 91.1% (Q3 2025)

Finance: draft the 13-week cash flow view incorporating the Q4 2025 projected DAC amortization by Friday.

The Hanover Insurance Group, Inc. (THG) - Canvas Business Model: Revenue Streams

You're looking at how The Hanover Insurance Group, Inc. (THG) actually brings in the cash to keep the lights on and pay out claims. Honestly, for an insurer, it boils down to two main buckets: the money you collect from policies before you pay losses, and the money your investment pile earns you. It's a classic P&C (Property & Casualty) model, but the execution on the underwriting side is what matters most right now.

The core of the revenue generation comes from Net Written Premiums (NWP), which reflects the total premium volume written across your three main operational segments. For the second quarter of 2025, the total NWP hit about $1.58 billion.

Here's the quick math on how that premium volume broke down by segment in Q2 2025:

Revenue Stream Component	Q2 2025 Amount (Millions USD)	Q2 2025 Growth (YoY)
Personal Lines Net Premiums Written	$679.6	3.7%
Core Commercial Net Premiums Written	$536.0	4.4%
Specialty Net Premiums Written	$368.2	4.6%
Total Net Premiums Written (Approximate)	$1,583.8	4.1%

Management is projecting that this premium engine will keep accelerating, with guidance pointing toward net written premium growth in the 6-7% range for the second half of 2025. That's a key indicator of market penetration and pricing power you'll want to track.

The second major stream is Net Investment Income from the investment portfolio. This is the return generated from holding the 'float'-the money held between premium collection and claim payout. For the second quarter of 2025, this income was reported at $105.5 million. To be fair, that number is sensitive to the prevailing rate environment, but it's a solid, predictable component when underwriting is disciplined.

You also pick up smaller amounts from fees and other income, which are less central but still part of the total top line. Based on Q2 2025 segment reporting, you can see some of these ancillary streams:

• Core Commercial Other income: $1.3 million
• Specialty Other income: $1.1 million
• Personal Lines Other income: $3.7 million

Finance: draft 13-week cash view by Friday.