What is Hanover Insuranc's earnings per share (EPS)?

Hanover Insuranc (THG) reported diluted earnings per share of $18.16 for fiscal year 2025. This represents a 55.2% 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.

Hanover Insuranc Financials

THG

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Hanover Insuranc (THG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 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).

Financial Health Signals

Financial Profile 63/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Hanover Insuranc has an operating margin of 14.1%, meaning the company retains $14 of operating profit per $100 of revenue. This results in a moderate score of 54/100, indicating healthy but not exceptional operating efficiency. This is up from 10.4% the prior year.

Growth

Hanover Insuranc's revenue grew 5.7% year-over-year to $6.6B, a solid pace of expansion. This earns a growth score of 43/100.

Leverage

Hanover Insuranc carries a low D/E ratio of 0.24, meaning only $0.24 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 97/100, indicating a strong balance sheet with room for future borrowing.

Cash Flow

Hanover Insuranc converts 17.8% of revenue into free cash flow ($1.2B). This strong cash generation earns a score of 69/100.

Returns

Hanover Insuranc's ROE of 18.6% shows moderate profitability relative to equity, earning a score of 52/100. This is up from 15.0% the prior year.

Piotroski F-Score Neutral

4/9

Hanover Insuranc passes 4 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.78x

For every $1 of reported earnings, Hanover Insuranc generates $1.78 in operating cash flow ($1.2B OCF vs $662.5M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

21.6x

Hanover Insuranc earns $21.6 in operating income for every $1 of interest expense ($933.0M vs $43.2M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue

$6.6B

YoY+5.7%

5Y CAGR+6.4%

10Y CAGR+2.7%

Hanover Insuranc generated $6.6B in revenue in fiscal year 2025. This represents an increase of 5.7% from the prior year.

EBITDA

$928.4M

YoY+42.5%

5Y CAGR+13.0%

10Y CAGR+6.5%

Hanover Insuranc's EBITDA was $928.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 42.5% from the prior year.

Net Income

$662.5M

YoY+55.5%

5Y CAGR+13.1%

10Y CAGR+7.2%

Hanover Insuranc reported $662.5M in net income in fiscal year 2025. This represents an increase of 55.5% from the prior year.

EPS (Diluted)

$18.16

YoY+55.2%

5Y CAGR+14.0%

10Y CAGR+9.4%

Hanover Insuranc earned $18.16 per diluted share (EPS) in fiscal year 2025. This represents an increase of 55.2% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$1.2B

YoY+47.0%

5Y CAGR+11.1%

10Y CAGR+10.7%

Hanover Insuranc generated $1.2B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 47.0% from the prior year.

Cash & Debt

$1.1B

YoY+157.8%

5Y CAGR+56.2%

10Y CAGR+12.7%

Hanover Insuranc held $1.1B in cash against $843.3M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

N/A

Operating Margin

14.1%

YoY+3.7pp

5Y CAGR+4.1pp

10Y CAGR+4.9pp

Hanover Insuranc's operating margin was 14.1% in fiscal year 2025, reflecting core business profitability. This is up 3.7 percentage points from the prior year.

Net Margin

10.1%

YoY+3.2pp

5Y CAGR+2.6pp

10Y CAGR+3.5pp

Hanover Insuranc's net profit margin was 10.1% in fiscal year 2025, showing the share of revenue converted to profit. This is up 3.2 percentage points from the prior year.

Return on Equity

18.6%

YoY+3.6pp

5Y CAGR+7.3pp

10Y CAGR+6.9pp

Hanover Insuranc's ROE was 18.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 3.6 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

$129.2M

YoY+383.9%

5Y CAGR-9.5%

10Y CAGR+0.1%

Hanover Insuranc spent $129.2M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 383.9% from the prior year.

Capital Expenditures

$7.7M

YoY-24.5%

5Y CAGR-12.4%

10Y CAGR-8.9%

Hanover Insuranc invested $7.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 24.5% from the prior year.

THG Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$6.6B+5.7%	$6.2B+4.1%	$6.0B+9.6%	$5.5B+4.6%	$5.2B+8.4%	$4.8B
Cost of Revenue	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
R&D Expenses	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
Operating Income	$933.0M+43.5%	$650.1M+515.6%	$105.6M-63.0%	$285.1M-34.1%	$432.3M-10.8%	$484.7M
Interest Expense	$43.2M+26.7%	$34.1M0.0%	$34.1M0.0%	$34.1M+0.3%	$34.0M-8.4%	$37.1M
Income Tax	$183.1M+62.8%	$112.5M+1380.3%	$7.6M-72.1%	$27.2M-73.1%	$101.3M+22.3%	$82.8M
Net Income	$662.5M+55.5%	$426.0M+1106.8%	$35.3M-69.6%	$116.0M-72.6%	$422.8M+17.9%	$358.7M
EPS (Diluted)	$18.16+55.2%	$11.70+1093.9%	$0.98-69.5%	$3.21-72.3%	$11.60+23.1%	$9.42

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$1.7B+0.4%	$1.7B+0.6%	$1.7B+3.2%	$1.6B+1.2%	$1.6B+1.2%	$1.6B+1.9%	$1.5B-0.9%	$1.6B
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	$289.0M+16.7%	$247.7M+18.0%	$209.9M+12.6%	$186.4M-26.7%	$254.4M+68.9%	$150.6M+57.9%	$95.4M-36.3%	$149.7M
Interest Expense	$14.5M+25.0%	$11.6M+34.9%	$8.6M+1.2%	$8.5M0.0%	$8.5M0.0%	$8.5M-1.2%	$8.6M+1.2%	$8.5M
Income Tax	$60.8M+25.4%	$48.5M+15.8%	$41.9M+31.3%	$31.9M-27.8%	$44.2M+60.1%	$27.6M+153.2%	$10.9M-63.4%	$29.8M
Net Income	$198.5M+11.1%	$178.7M+13.7%	$157.1M+22.5%	$128.2M-23.6%	$167.9M+64.4%	$102.1M+152.1%	$40.5M-64.9%	$115.5M
EPS (Diluted)	N/A	$4.90+14.0%	$4.30+22.9%	$3.50	N/A	$2.80+150.0%	$1.12-64.8%	$3.18

THG Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$16.9B+10.9%	$15.3B+4.5%	$14.6B+4.4%	$14.0B-1.8%	$14.3B+6.0%	$13.4B
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$1.1B+157.8%	$435.5M+37.8%	$316.1M+3.6%	$305.0M+32.1%	$230.9M+91.5%	$120.6M
Inventory	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
Goodwill	$178.8M0.0%	$178.8M0.0%	$178.8M0.0%	$178.8M0.0%	$178.8M0.0%	$178.8M
Total Liabilities	$13.4B+7.6%	$12.4B+2.4%	$12.1B+4.2%	$11.7B+5.0%	$11.1B+8.5%	$10.2B
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	$843.3M+16.8%	$722.3M-7.8%	$783.2M	N/A	N/A	N/A
Total Equity	$3.6B+25.7%	$2.8B+15.3%	$2.5B+5.7%	$2.3B-25.6%	$3.1B-2.1%	$3.2B
Retained Earnings	$3.7B+16.6%	$3.2B+10.3%	$2.9B-2.8%	$3.0B+0.3%	$3.0B+11.8%	$2.7B

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$16.9B+1.0%	$16.8B+6.6%	$15.7B+1.7%	$15.5B+1.3%	$15.3B-0.6%	$15.4B+3.3%	$14.9B+1.9%	$14.6B
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$1.1B+22.6%	$915.7M+275.1%	$244.1M-22.5%	$315.1M-27.6%	$435.5M+2.0%	$427.1M+26.5%	$337.6M+27.6%	$264.6M
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	$13.4B+0.2%	$13.3B+6.6%	$12.5B+0.7%	$12.4B-0.1%	$12.4B-0.5%	$12.5B+1.4%	$12.3B+2.1%	$12.1B
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	$843.3M0.0%	$843.0M+142.4%	$347.8M-51.9%	$722.5M0.0%	$722.3M	N/A	N/A	N/A
Total Equity	$3.6B+4.2%	$3.4B+6.5%	$3.2B+5.6%	$3.0B+7.1%	$2.8B-1.2%	$2.9B+12.8%	$2.6B+1.2%	$2.5B
Retained Earnings	$3.7B+4.6%	$3.6B+4.3%	$3.4B+3.8%	$3.3B+3.0%	$3.2B+4.4%	$3.1B+2.4%	$3.0B+0.3%	$3.0B

THG Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$1.2B+46.1%	$806.4M+122.9%	$361.7M-49.9%	$722.3M-12.3%	$823.7M+16.4%	$707.6M
Capital Expenditures	$7.7M-24.5%	$10.2M-14.3%	$11.9M-33.1%	$17.8M+122.5%	$8.0M-46.3%	$14.9M
Free Cash Flow	$1.2B+47.0%	$796.2M+127.6%	$349.8M-50.3%	$704.5M-13.6%	$815.7M+17.8%	$692.7M
Investing Cash Flow	-$666.2M-23.2%	-$540.9M-136.7%	-$228.5M+55.0%	-$507.6M-10.3%	-$460.2M+24.4%	-$608.8M
Financing Cash Flow	$175.2M+220.4%	-$145.5M-19.2%	-$122.1M+13.2%	-$140.6M+44.5%	-$253.2M-30.6%	-$193.9M
Dividends Paid	$130.6M+5.2%	$124.1M+5.9%	$117.2M+7.6%	$108.9M+6.6%	$102.2M+2.7%	$99.5M
Share Buybacks	$129.2M+383.9%	$26.7M	$0-100.0%	$30.8M-81.1%	$162.6M-23.6%	$212.8M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$378.2M-31.8%	$554.4M+168.3%	$206.6M+431.1%	$38.9M-81.8%	$213.5M-45.9%	$394.7M+182.9%	$139.5M+137.6%	$58.7M
Capital Expenditures	$1.2M-60.0%	$3.0M+76.5%	$1.7M-5.6%	$1.8M-40.0%	$3.0M+25.0%	$2.4M+9.1%	$2.2M-15.4%	$2.6M
Free Cash Flow	$377.0M-31.6%	$551.4M+169.1%	$204.9M+452.3%	$37.1M-82.4%	$210.5M-46.3%	$392.3M+185.7%	$137.3M+144.7%	$56.1M
Investing Cash Flow	-$23.6M+92.3%	-$308.2M-38.8%	-$222.1M-97.8%	-$112.3M+25.2%	-$150.1M+46.8%	-$282.0M-729.4%	-$34.0M+54.5%	-$74.8M
Financing Cash Flow	-$149.6M-135.0%	$427.6M+873.2%	-$55.3M-16.4%	-$47.5M+13.3%	-$54.8M-105.2%	-$26.7M+6.6%	-$28.6M+19.2%	-$35.4M
Dividends Paid	$33.7M+4.7%	$32.2M-0.3%	$32.3M-0.3%	$32.4M0.0%	$32.4M+5.9%	$30.6M0.0%	$30.6M+0.3%	$30.5M
Share Buybacks	$54.6M+51.7%	$36.0M+30.4%	$27.6M+150.9%	$11.0M-58.8%	$26.7M	$0	N/A	N/A

THG Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	14.1%+3.7pp	10.4%+8.7pp	1.8%-3.5pp	5.2%-3.1pp	8.3%-1.8pp	10.1%
Net Margin	10.1%+3.2pp	6.8%+6.2pp	0.6%-1.5pp	2.1%-6.0pp	8.1%+0.7pp	7.4%
Return on Equity	18.6%+3.6pp	15.0%+13.6pp	1.4%-3.5pp	5.0%-8.5pp	13.5%+2.3pp	11.2%
Return on Assets	3.9%+1.1pp	2.8%+2.6pp	0.2%-0.6pp	0.8%-2.1pp	3.0%+0.3pp	2.7%
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	0.24-0.0	0.25-0.1	0.32-4.7	5.00+1.5	3.54+0.3	3.20
FCF Margin	17.8%+5.0pp	12.8%+6.9pp	5.8%-7.0pp	12.9%-2.7pp	15.6%+1.2pp	14.4%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	17.3%+2.4pp	14.9%+2.2pp	12.7%+1.1pp	11.6%-4.4pp	16.1%+6.4pp	9.6%+3.4pp	6.2%-3.4pp	9.7%
Net Margin	11.9%+1.1pp	10.7%+1.2pp	9.5%+1.5pp	8.0%-2.6pp	10.6%+4.1pp	6.5%+3.9pp	2.6%-4.8pp	7.4%
Return on Equity	5.6%+0.3pp	5.2%+0.3pp	4.9%+0.7pp	4.2%-1.7pp	5.9%+2.4pp	3.5%+2.0pp	1.6%-3.0pp	4.6%
Return on Assets	1.2%+0.1pp	1.1%+0.1pp	1.0%+0.2pp	0.8%-0.3pp	1.1%+0.4pp	0.7%+0.4pp	0.3%-0.5pp	0.8%
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	0.240.0	0.25+0.1	0.11-0.1	0.24-0.0	0.25-4.1	4.34-0.5	4.83+0.0	4.79
FCF Margin	22.6%-10.6pp	33.1%+20.7pp	12.4%+10.1pp	2.3%-11.0pp	13.3%-11.8pp	25.1%+16.1pp	8.9%+5.3pp	3.6%

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Frequently Asked Questions

What is Hanover Insuranc's annual revenue?

Hanover Insuranc (THG) reported $6.6B in total revenue for fiscal year 2025. This represents a 5.7% 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 5.7% year-over-year, from $6.2B to $6.6B in fiscal year 2025.

Is Hanover Insuranc profitable?

Yes, Hanover Insuranc (THG) reported a net income of $662.5M in fiscal year 2025, with a net profit margin of 10.1%.

What is Hanover Insuranc's EBITDA?

Hanover Insuranc (THG) had EBITDA of $928.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Hanover Insuranc have?

As of fiscal year 2025, Hanover Insuranc (THG) had $1.1B in cash and equivalents against $843.3M in long-term debt.

What is Hanover Insuranc's operating margin?

Hanover Insuranc (THG) had an operating margin of 14.1% in fiscal year 2025, 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 10.1% in fiscal year 2025, 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 18.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Hanover Insuranc's free cash flow?

Hanover Insuranc (THG) generated $1.2B in free cash flow during fiscal year 2025. This represents a 47.0% 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 $1.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Hanover Insuranc's total assets?

Hanover Insuranc (THG) had $16.9B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Hanover Insuranc's capital expenditures?

Hanover Insuranc (THG) invested $7.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Does Hanover Insuranc buy back shares?

Yes, Hanover Insuranc (THG) spent $129.2M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

What is Hanover Insuranc's debt-to-equity ratio?

Hanover Insuranc (THG) had a debt-to-equity ratio of 0.24 as of fiscal year 2025, 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 3.9% for fiscal year 2025, 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 4 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 1.78x, 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 21.6x, 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.