Selective Insurance Group vs Hanover Insurance
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KIRA’s take AI analyst
I put Selective Insurance Group 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 $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 11.9x against 11.4x for Hanover Insurance.
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Selective Insurance Group
SIGI
4/8
Revenue growth5-year growthFCF marginShare count change
Hanover Insurance
THG
4/8
Net marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | SIGI FY25 | THG FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.9B | $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 | 11.9x | 11.4x |
| Piotroski F-score | — | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.