The Hanover price target lowered to $190 from $200 at RBC Capital

RBC Capital lowered the firm’s price target on The Hanover (THG) to $190 from $200 and keeps a Sector Perform rating on the shares. The firm has reviewed the company’s Schedule P data, and came away with a positive view of management’s approach to reserving, particularly in “challenged” lines such as Commercial Auto Liability and Other Liability Occurrence, the analyst tells investors in a research note. Hanover’s reserving continues to reflect uncertainty on recent accident year loss ratios, and RBC thinks the charge in Commercial Auto Liability says far more about the state of the industry’s reserves than it does THG’s actuarial practices, the firm added.