RLI vs Hanover Insurance
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KIRA’s take AI analyst
I put RLI and Hanover Insurance side by side, using each one’s latest annual report. Here is what stands out:
- Hanover Insurance is the larger business, with $6.6B of revenue in fiscal 2025 against $1.9B for RLI, about 3.5 times as much.
- RLI grew revenue faster (6.3%, against 5.7%).
- RLI turned more of its sales into free cash flow (32.3% FCF margin, against 17.8%).
- Investors pay more for each dollar of RLI’s earnings: a P/E of 15.1x against 11.4x for Hanover Insurance.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
RLI
RLI
6/6
Revenue growth5-year growthNet marginFCF marginReturn on equityShare count change
Hanover Insurance
THG
0/6
Side by side
Best in the row
| Latest fiscal year | RLI FY25 | THG FY25 |
|---|---|---|
| Size | ||
| Market cap | $6.0B | $8.5B |
| Revenue | $1.9B | $6.6B |
| Free cash flow | $609M | $1.2B |
| Net income | $403M | $663M |
| Growth | ||
| Revenue growth | 6.3% | 5.7% |
| 5-year growth | 13.9% | 6.5% |
| Share count change | −0.1% | 0.3% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 14.2% |
| Net margin | 21.4% | 10.1% |
| FCF margin | 32.3% | 17.8% |
| Return on capital | — | 21.3% |
| Return on equity | 24.4% | 20.7% |
| Balance sheet | ||
| Net debt | — | $95.6M |
| Net debt / EBITDA | — | 0.1x |
| Dividends and buybacks | $242M | $260M |
| Valuation & quality | ||
| P/E | 15.1x | 11.4x |
| Piotroski F-score | — | — |
Ten years
Revenue
FY16
RLI $816M
THG $4.1B
FY17
RLI $797M
THG $4.3B
FY18
RLI $818M
THG $4.5B
FY19
RLI $1.0B
THG $4.9B
FY20
RLI $984M
THG $4.8B
FY21
RLI $1.2B
THG $5.2B
FY22
RLI $1.7B
THG $5.5B
FY23
RLI $1.5B
THG $6.0B
FY24
RLI $1.8B
THG $6.2B
FY25
RLI $1.9B
THG $6.6B
RLI
THG
Operating margin
FY16
RLI —
THG 4.8%
FY17
RLI —
THG 7.7%
FY18
RLI —
THG 9.0%
FY19
RLI —
THG 9.3%
FY20
RLI —
THG 10.1%
FY21
RLI —
THG 8.3%
FY22
RLI —
THG 5.2%
FY23
RLI —
THG 1.8%
FY24
RLI —
THG 10.4%
FY25
RLI —
THG 14.2%
RLI
THG
Free cash flow
FY16
RLI $158M
THG $728M
FY17
RLI $188M
THG $686M
FY18
RLI $211M
THG $538M
FY19
RLI $270M
THG $590M
FY20
RLI $257M
THG $693M
FY21
RLI $377M
THG $816M
FY22
RLI $245M
THG $705M
FY23
RLI $458M
THG $350M
FY24
RLI $556M
THG $796M
FY25
RLI $609M
THG $1.2B
RLI
THG
Return on capital
FY16
RLI 12.6%
THG 5.8%
FY17
RLI 9.6%
THG 7.1%
FY18
RLI 7.6%
THG 11.1%
FY19
RLI 19.7%
THG 12.3%
FY20
RLI 14.1%
THG —
FY21
RLI 22.3%
THG —
FY22
RLI 43.8%
THG —
FY23
RLI 21.2%
THG —
FY24
RLI —
THG 16.8%
FY25
RLI —
THG 21.3%
RLI
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.