Hanover Insuranc Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Hanover Insuranc has an operating margin of 10.4%, meaning the company retains $10 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is up from 1.8% the prior year.
Hanover Insuranc's revenue grew a modest 4.1% year-over-year to $6.2B. This slow but positive growth earns a score of 40/100.
Hanover Insuranc carries a low D/E ratio of 0.25, meaning only $0.25 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Hanover Insuranc has a free cash flow margin of 12.8%, earning a moderate score of 64/100. The company generates positive cash flow after capital investments, but with room for improvement.
Hanover Insuranc's ROE of 15.0% shows moderate profitability relative to equity, earning a score of 60/100. This is up from 1.4% the prior year.
Hanover Insuranc passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 1 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Hanover Insuranc generates $1.89 in operating cash flow ($806.4M OCF vs $426.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Hanover Insuranc earns $19.1 in operating income for every $1 of interest expense ($650.1M vs $34.1M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Hanover Insuranc (THG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Hanover Insuranc generated $6.2B in revenue in fiscal year 2024. This represents an increase of 4.1% from the prior year.
Hanover Insuranc's EBITDA was $651.6M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 482.3% from the prior year.
Hanover Insuranc generated $796.2M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 127.6% from the prior year.
Hanover Insuranc reported $426.0M in net income in fiscal year 2024. This represents an increase of 1106.8% from the prior year.
Hanover Insuranc earned $11.70 per diluted share (EPS) in fiscal year 2024. This represents an increase of 1093.9% from the prior year.
Hanover Insuranc held $435.5M in cash against $722.3M in long-term debt as of fiscal year 2024.
Hanover Insuranc had 36M shares outstanding in fiscal year 2024.
Hanover Insuranc's operating margin was 10.4% in fiscal year 2024, reflecting core business profitability. This is up 8.7 percentage points from the prior year.
Hanover Insuranc's net profit margin was 6.8% in fiscal year 2024, showing the share of revenue converted to profit. This is up 6.2 percentage points from the prior year.
Hanover Insuranc's ROE was 15.0% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is up 13.6 percentage points from the prior year.
Hanover Insuranc spent $26.7M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
Hanover Insuranc invested $10.2M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 14.3% from the prior year.
THG Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.7B+0.6% | $1.7B+3.2% | $1.6B+1.2% | $1.6B+3.1% | $1.5B-0.9% | $1.6B+1.5% | $1.5B+0.8% | $1.5B |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $247.7M+18.0% | $209.9M+12.6% | $186.4M-26.7% | $254.4M+166.7% | $95.4M-36.3% | $149.7M-5.3% | $158.1M+1054.0% | $13.7M |
| Interest Expense | $11.6M+34.9% | $8.6M+1.2% | $8.5M0.0% | $8.5M-1.2% | $8.6M+1.2% | $8.5M0.0% | $8.5M0.0% | $8.5M |
| Income Tax | $48.5M+15.8% | $41.9M+31.3% | $31.9M-27.8% | $44.2M+305.5% | $10.9M-63.4% | $29.8M-30.5% | $42.9M+571.4% | -$9.1M |
| Net Income | $178.7M+13.7% | $157.1M+22.5% | $128.2M-23.6% | $167.9M+314.6% | $40.5M-64.9% | $115.5M+7.0% | $107.9M+1154.7% | $8.6M |
| EPS (Diluted) | $4.90+14.0% | $4.30+22.9% | $3.50-23.9% | $4.60+310.7% | $1.12-64.8% | $3.18+5.3% | $3.02+1158.3% | $0.24 |
THG Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $16.8B+6.6% | $15.7B+1.7% | $15.5B+1.3% | $15.3B+2.7% | $14.9B+1.9% | $14.6B-0.1% | $14.6B+2.1% | $14.3B |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash & Equivalents | $915.7M+275.1% | $244.1M-22.5% | $315.1M-27.6% | $435.5M+29.0% | $337.6M+27.6% | $264.6M-16.3% | $316.1M+7.3% | $294.5M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M |
| Total Liabilities | $13.3B+6.6% | $12.5B+0.7% | $12.4B-0.1% | $12.4B+0.9% | $12.3B+2.1% | $12.1B-0.6% | $12.1B-0.4% | $12.2B |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | $843.0M+142.4% | $347.8M-51.9% | $722.5M0.0% | $722.3M | N/A | N/A | $783.2M | N/A |
| Total Equity | $3.4B+6.5% | $3.2B+5.6% | $3.0B+7.1% | $2.8B+11.3% | $2.6B+1.2% | $2.5B+2.3% | $2.5B+16.5% | $2.1B |
| Retained Earnings | $3.6B+4.3% | $3.4B+3.8% | $3.3B+3.0% | $3.2B+6.9% | $3.0B+0.3% | $3.0B+2.9% | $2.9B+2.7% | $2.8B |
THG Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $554.4M+168.3% | $206.6M+431.1% | $38.9M-81.8% | $213.5M+53.0% | $139.5M+137.6% | $58.7M-36.7% | $92.7M-58.7% | $224.7M |
| Capital Expenditures | $3.0M+76.5% | $1.7M-5.6% | $1.8M-40.0% | $3.0M+36.4% | $2.2M-15.4% | $2.6M+18.2% | $2.2M-24.1% | $2.9M |
| Free Cash Flow | $551.4M+169.1% | $204.9M+452.3% | $37.1M-82.4% | $210.5M+53.3% | $137.3M+144.7% | $56.1M-38.0% | $90.5M-59.2% | $221.8M |
| Investing Cash Flow | -$308.2M-38.8% | -$222.1M-97.8% | -$112.3M+25.2% | -$150.1M-341.5% | -$34.0M+54.5% | -$74.8M-77.7% | -$42.1M+38.5% | -$68.4M |
| Financing Cash Flow | $427.6M+873.2% | -$55.3M-16.4% | -$47.5M+13.3% | -$54.8M-91.6% | -$28.6M+19.2% | -$35.4M-22.1% | -$29.0M+1.4% | -$29.4M |
| Dividends Paid | $32.2M-0.3% | $32.3M-0.3% | $32.4M0.0% | $32.4M+5.9% | $30.6M+0.3% | $30.5M+0.7% | $30.3M+4.5% | $29.0M |
| Share Buybacks | $36.0M+30.4% | $27.6M+150.9% | $11.0M-58.8% | $26.7M | N/A | N/A | N/A | $0 |
THG Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 14.9%+2.2pp | 12.7%+1.1pp | 11.6%-4.4pp | 16.1%+9.8pp | 6.2%-3.4pp | 9.7%-0.7pp | 10.3%+9.4pp | 0.9% |
| Net Margin | 10.7%+1.2pp | 9.5%+1.5pp | 8.0%-2.6pp | 10.6%+8.0pp | 2.6%-4.8pp | 7.4%+0.4pp | 7.1%+6.5pp | 0.6% |
| Return on Equity | 5.2%+0.3pp | 4.9%+0.7pp | 4.2%-1.7pp | 5.9%+4.3pp | 1.6%-3.0pp | 4.6%+0.2pp | 4.4%+4.0pp | 0.4% |
| Return on Assets | 1.1%+0.1pp | 1.0%+0.2pp | 0.8%-0.3pp | 1.1%+0.8pp | 0.3%-0.5pp | 0.8%+0.1pp | 0.7%+0.7pp | 0.1% |
| Current Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt-to-Equity | 0.25+0.1 | 0.11-0.1 | 0.24-0.0 | 0.25-4.6 | 4.83+0.0 | 4.79+4.5 | 0.32-5.4 | 5.76 |
| FCF Margin | 33.1%+20.7pp | 12.4%+10.1pp | 2.3%-11.0pp | 13.3%+4.4pp | 8.9%+5.3pp | 3.6%-2.3pp | 5.9%-8.7pp | 14.6% |
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Frequently Asked Questions
What is Hanover Insuranc's annual revenue?
Hanover Insuranc (THG) reported $6.2B in total revenue for fiscal year 2024. This represents a 4.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Hanover Insuranc's revenue growing?
Hanover Insuranc (THG) revenue grew by 4.1% year-over-year, from $6.0B to $6.2B in fiscal year 2024.
Is Hanover Insuranc profitable?
Yes, Hanover Insuranc (THG) reported a net income of $426.0M in fiscal year 2024, with a net profit margin of 6.8%.
What is Hanover Insuranc's earnings per share (EPS)?
Hanover Insuranc (THG) reported diluted earnings per share of $11.70 for fiscal year 2024. This represents a 1093.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Hanover Insuranc's EBITDA?
Hanover Insuranc (THG) had EBITDA of $651.6M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Hanover Insuranc have?
As of fiscal year 2024, Hanover Insuranc (THG) had $435.5M in cash and equivalents against $722.3M in long-term debt.
What is Hanover Insuranc's operating margin?
Hanover Insuranc (THG) had an operating margin of 10.4% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Hanover Insuranc's net profit margin?
Hanover Insuranc (THG) had a net profit margin of 6.8% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Hanover Insuranc's return on equity (ROE)?
Hanover Insuranc (THG) has a return on equity of 15.0% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Hanover Insuranc's free cash flow?
Hanover Insuranc (THG) generated $796.2M in free cash flow during fiscal year 2024. This represents a 127.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Hanover Insuranc's operating cash flow?
Hanover Insuranc (THG) generated $806.4M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Hanover Insuranc's total assets?
Hanover Insuranc (THG) had $15.3B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Hanover Insuranc's capital expenditures?
Hanover Insuranc (THG) invested $10.2M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
Does Hanover Insuranc buy back shares?
Yes, Hanover Insuranc (THG) spent $26.7M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Hanover Insuranc have outstanding?
Hanover Insuranc (THG) had 36M shares outstanding as of fiscal year 2024.
What is Hanover Insuranc's debt-to-equity ratio?
Hanover Insuranc (THG) had a debt-to-equity ratio of 0.25 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Hanover Insuranc's return on assets (ROA)?
Hanover Insuranc (THG) had a return on assets of 2.8% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Hanover Insuranc's Piotroski F-Score?
Hanover Insuranc (THG) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Hanover Insuranc's earnings high quality?
Hanover Insuranc (THG) has an earnings quality ratio of 1.89x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Hanover Insuranc cover its interest payments?
Hanover Insuranc (THG) has an interest coverage ratio of 19.1x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Hanover Insuranc?
Hanover Insuranc (THG) scores 63 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.