The analyst expects the company's ROE to revert closer to 13% following a series of disappointing quarters.

While the past year has been painful, THG has a profitable history in Michigan, the analyst noted.

Overall top-line growth is unlikely to slow, given how inflationary the personal auto & home marketplace remains.

Zaremski expects THG to follow its peers, including raising deductibles and offering more "depreciated value" roof-replacement coverages (vs. full replacement cost).

Consequently, the analyst expects THG to witness a decline in policy growth in the coming 18 months.

The analyst raised the EPS estimate to $11.53 (from $11.42) vs. consensus of $11.58 for FY24 and $13.25 (from $13.02) vs. $13.44 estimate for FY25.

Price Action: THG shares are trading higher by 0.82% at $106.87 on the last check Thursday.