Selective Insurance Group vs Hanover Insurance
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The short version
- Hanover Insurance is the larger business, with $6.6B of revenue in fiscal 2025 against $5.3B for Selective Insurance Group.
- Selective Insurance Group grew revenue faster (9.8%, against 5.7%).
- Selective Insurance Group turned more of its sales into free cash flow (22.4% FCF margin, against 17.8%).
- Hanover Insurance earned a higher return on the capital invested in it (21.3%, against 14.6%).
- Investors pay more for each dollar of Selective Insurance Group’s earnings: a P/E of 11.6x against 11.4x for Hanover Insurance.
| Latest fiscal year | SIGI · FY25 | THG · FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.8B | $8.5B |
| Revenue | $5.3B | $6.6B |
| Free cash flow | $1.2B | $1.2B |
| Net income | $466M | $663M |
| Growth | ||
| Revenue growth | 9.8% | 5.7% |
| 5-year growth | 12.8% | 6.5% |
| Share count change | −0.4% | 0.3% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 14.2% |
| Net margin | 8.7% | 10.1% |
| FCF margin | 22.4% | 17.8% |
| Return on capital | 14.6% | 21.3% |
| Return on equity | 13.9% | 20.7% |
| Balance sheet | ||
| Net debt | $235M | $95.6M |
| Net debt / EBITDA | 0.4x | 0.1x |
| Dividends and buybacks | $186M | $260M |
| Valuation & quality | ||
| P/E | 11.6x | 11.4x |
| Piotroski F-score | — | — |
Revenue
FY16
SIGI $2.3B
THG $4.1B
FY17
SIGI $2.5B
THG $4.3B
FY18
SIGI $2.6B
THG $4.5B
FY19
SIGI $2.8B
THG $4.9B
FY20
SIGI $2.9B
THG $4.8B
FY21
SIGI $3.4B
THG $5.2B
FY22
SIGI $3.6B
THG $5.5B
FY23
SIGI $4.2B
THG $6.0B
FY24
SIGI $4.9B
THG $6.2B
FY25
SIGI $5.3B
THG $6.6B
SIGI
THG
Operating margin
FY16
SIGI —
THG 4.8%
FY17
SIGI —
THG 7.7%
FY18
SIGI —
THG 9.0%
FY19
SIGI —
THG 9.3%
FY20
SIGI —
THG 10.1%
FY21
SIGI —
THG 8.3%
FY22
SIGI —
THG 5.2%
FY23
SIGI —
THG 1.8%
FY24
SIGI —
THG 10.4%
FY25
SIGI —
THG 14.2%
SIGI
THG
Free cash flow
FY16
SIGI —
THG $728M
FY17
SIGI —
THG $686M
FY18
SIGI $439M
THG $538M
FY19
SIGI $447M
THG $590M
FY20
SIGI $532M
THG $693M
FY21
SIGI $749M
THG $816M
FY22
SIGI $776M
THG $705M
FY23
SIGI $736M
THG $350M
FY24
SIGI $1.1B
THG $796M
FY25
SIGI $1.2B
THG $1.2B
SIGI
THG
Return on capital
FY16
SIGI 10.6%
THG 5.8%
FY17
SIGI 10.1%
THG 7.1%
FY18
SIGI 10.4%
THG 11.1%
FY19
SIGI 13.8%
THG 12.3%
FY20
SIGI 10.2%
THG —
FY21
SIGI 14.6%
THG —
FY22
SIGI 8.9%
THG —
FY23
SIGI 13.6%
THG —
FY24
SIGI 7.4%
THG 16.8%
FY25
SIGI 14.6%
THG 21.3%
SIGI
THG
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.