Hanover Insuranc Financials
Hanover Insuranc (THG) reported $6.6B in revenue for fiscal year 2025, up 5.7% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Profit recovery is flowing straight into cash and balance-sheet flexibility because the business needs almost no physical reinvestment.
Across the recent trough-to-recovery period, net income rebounded from$35.3M to$662.5M , showing the income statement moved from near-break-even back to substantial profitability. Over the same stretch, operating cash flow rose from$361.7M to$1.18B , so cash generation strengthened alongside reported earnings; that makes the rebound look like a real operating recovery, not merely a non-cash accounting swing.
The balance sheet is liability-funded but not debt-dependent: cash of
This is a very low-capex cash model; capital spending was only
Financial Health Signals
Scored against insurers for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Hanover Insuranc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Not available for Hanover Insuranc, and counted as zero in the overall score.
Hanover Insuranc passes 4 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 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.
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.
Hanover Insuranc earns $21.60 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
Earnings & Revenue
Hanover Insuranc generated $6.6B in revenue in fiscal year 2025. This represents an increase of 5.7% from the prior year.
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.
Hanover Insuranc reported $662.5M in net income in fiscal year 2025. This represents an increase of 55.5% from the prior year.
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
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.
Hanover Insuranc held $1.1B in cash against $843.3M in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
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.
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.
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.
Not reported for fiscal year 2025.
Capital Allocation
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.
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.
Not reported for fiscal year 2025.
THG Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.8B | $6.6B+5.7% | $6.2B+4.1% | $6.0B+9.6% | $5.5B+4.6% | $5.2B+8.4% | $4.8B-1.3% | $4.9B+8.8% | $4.5B+5.3% | $4.3B+5.3% | $4.1B-19.5% | $5.0B-0.7% | $5.1B+5.7% | $4.8B+4.4% | $4.6B+16.8% | $3.9B |
| Operating Income | $1.0B | $933.0M+43.5% | $650.1M+515.6% | $105.6M-63.0% | $285.1M-34.1% | $432.3M-10.8% | $484.7M+6.9% | $453.6M+11.6% | $406.5M+24.2% | $327.3M+69.7% | $192.9M-58.6% | $466.1M+14.7% | $406.2M+3.3% | $393.4M+423.8% | $75.1M+4.6% | $71.8M |
| Interest Expense | $47.0M | $43.2M+26.7% | $34.1M0.0% | $34.1M0.0% | $34.1M+0.3% | $34.0M-8.4% | $37.1M-1.1% | $37.5M-16.9% | $45.1M-0.2% | $45.2M-12.1% | $51.4M-15.2% | $60.6M-7.9% | $65.8M+0.8% | $65.3M+5.5% | $61.9M+12.5% | $55.0M |
| Income Tax | $212.8M | $183.1M+62.8% | $112.5M+1380.3% | $7.6M-72.1% | $27.2M-73.1% | $101.3M+22.3% | $82.8M-11.1% | $93.1M+114.0% | $43.5M-43.4% | $76.8M+7780.0% | -$1.0M-100.9% | $108.6M+13.5% | $95.7M+14.7% | $83.4M+579.3% | -$17.4M-75.8% | -$9.9M |
| Net Income | $755.6M | $662.5M+55.5% | $426.0M+1106.8% | $35.3M-69.6% | $116.0M-72.6% | $422.8M+17.9% | $358.7M-15.6% | $425.1M+8.7% | $391.0M+110.0% | $186.2M+20.1% | $155.1M-53.2% | $331.5M+17.6% | $282.0M+12.4% | $251.0M+349.0% | $55.9M+52.3% | $36.7M |
| EPS (Diluted) | — | $18.16+55.2% | $11.70+1093.9% | $0.98-69.5% | $3.21-72.3% | $11.60+23.1% | $9.42-9.9% | $10.46+15.1% | $9.09+109.9% | $4.33+20.6% | $3.59-51.5% | $7.40+17.8% | $6.28+12.3% | $5.59+354.5% | $1.23+53.7% | $0.80 |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, SG&A Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
THG Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $16.9B+10.9% | $15.3B+4.5% | $14.6B+4.4% | $14.0B-1.8% | $14.3B+6.0% | $13.4B+7.6% | $12.5B+0.7% | $12.4B-19.8% | $15.5B+8.8% | $14.2B+3.2% | $13.8B+0.2% | $13.8B+2.8% | $13.4B-0.8% | $13.5B+7.0% | $12.6B |
| Cash & Equivalents | $1.1B+157.8% | $435.5M+37.8% | $316.1M+3.6% | $305.0M+32.1% | $230.9M+91.5% | $120.6M-44.1% | $215.7M-78.9% | $1.0B+242.6% | $297.9M+102.2% | $147.3M-56.5% | $338.8M-9.2% | $373.3M-23.2% | $486.2M-13.9% | $564.8M-31.2% | $820.4M |
| Goodwill | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M0.0% | $178.8M-3.2% | $184.8M-0.6% | $186.0M+0.8% | $184.6M-0.2% | $184.9M0.0% | $184.9M-0.3% | $185.5M |
| Total Liabilities | $13.4B+7.6% | $12.4B+2.4% | $12.1B+4.2% | $11.7B+5.0% | $11.1B+8.5% | $10.2B+7.0% | $9.6B+1.4% | $9.4B-24.3% | $12.5B+9.8% | $11.4B+3.9% | $10.9B+0.2% | $10.9B+1.2% | $10.8B-1.0% | $10.9B+7.7% | $10.1B |
| Long-Term Debt | $843.3M+16.8% | $722.3M-7.8% | $783.2M | N/A | N/A | N/A | $653.4M-16.0% | $777.9M-1.1% | $786.9M+0.1% | $786.4M-2.1% | $803.1M-11.1% | $903.5M0.0% | $903.9M+6.4% | $849.4M-6.8% | $911.1M |
| Total Equity | $3.6B+25.7% | $2.8B+15.3% | $2.5B+5.7% | $2.3B-25.6% | $3.1B-2.1% | $3.2B+9.8% | $2.9B-1.3% | $3.0B-1.4% | $3.0B+4.9% | $2.9B+0.5% | $2.8B0.0% | $2.8B+9.6% | $2.6B0.0% | $2.6B+4.5% | $2.5B |
| Retained Earnings | $3.7B+16.6% | $3.2B+10.3% | $2.9B-2.8% | $3.0B+0.3% | $3.0B+11.8% | $2.7B+10.7% | $2.4B+10.5% | $2.2B+10.5% | $2.0B+5.3% | $1.9B+4.0% | $1.8B+15.7% | $1.6B+15.5% | $1.3B+11.3% | $1.2B0.0% | $1.2B |
Not reported in any period shown, so not listed: Current Assets, Inventory, Accounts Receivable, Current Liabilities.
THG Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.3B | $1.2B+46.1% | $806.4M+122.9% | $361.7M-49.9% | $722.3M-12.3% | $823.7M+16.4% | $707.6M+17.4% | $602.9M+9.4% | $551.3M-21.8% | $704.6M-5.2% | $743.4M+67.2% | $444.7M-21.3% | $564.7M+47.1% | $383.9M-6.0% | $408.2M+84.1% | $221.7M |
| Capital Expenditures | $10.6M | $7.7M-24.5% | $10.2M-14.3% | $11.9M-33.1% | $17.8M+122.5% | $8.0M-46.3% | $14.9M+12.0% | $13.3M+1.5% | $13.1M-29.6% | $18.6M+18.5% | $15.7M-19.5% | $19.5M+74.1% | $11.2M-51.1% | $22.9M+7.5% | $21.3M+29.1% | $16.5M |
| Free Cash Flow | $1.3B | $1.2B+47.0% | $796.2M+127.6% | $349.8M-50.3% | $704.5M-13.6% | $815.7M+17.8% | $692.7M+17.5% | $589.6M+9.6% | $538.2M-21.5% | $686.0M-5.7% | $727.7M+71.1% | $425.2M-23.2% | $553.5M+53.3% | $361.0M-6.7% | $386.9M+88.5% | $205.2M |
| Investing Cash Flow | -$931.8M | -$666.2M-23.2% | -$540.9M-136.7% | -$228.5M+55.0% | -$507.6M-10.3% | -$460.2M+24.4% | -$608.8M-95.2% | -$311.9M-215.0% | $271.3M+153.6% | -$506.3M-2.2% | -$495.4M-188.9% | -$171.5M+71.4% | -$600.7M-67.5% | -$358.7M+36.3% | -$562.8M-407.9% | $182.8M |
| Financing Cash Flow | -$309.7M | $175.2M+220.4% | -$145.5M-19.2% | -$122.1M+13.2% | -$140.6M+44.5% | -$253.2M-30.6% | -$193.9M+82.4% | -$1.1B-542.9% | -$171.0M-53.1% | -$111.7M+62.9% | -$300.8M+0.1% | -$301.0M-319.8% | -$71.7M+32.0% | -$105.5M+20.9% | -$133.4M-204.8% | $127.3M |
| Dividends Paid | $132.5M | $130.6M+5.2% | $124.1M+5.9% | $117.2M+7.6% | $108.9M+6.6% | $102.2M+2.7% | $99.5M-74.2% | $386.2M+309.5% | $94.3M+8.6% | $86.8M+8.0% | $80.4M+8.4% | $74.2M+10.7% | $67.0M+11.7% | $60.0M+8.9% | $55.1M+8.3% | $50.9M |
| Share Buybacks | $232.5M | $129.2M+383.9% | $26.7M | $0-100.0% | $30.8M-81.1% | $162.6M-23.6% | $212.8M-62.2% | $563.6M+876.8% | $57.7M+55.1% | $37.2M-64.8% | $105.6M-17.0% | $127.3M+524.0% | $20.4M-73.9% | $78.2M+291.0% | $20.0M-7.8% | $21.7M |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
THG Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Margin | 14.1%+3.7pp | 10.4%+8.7pp | 1.8%-3.5pp | 5.2%-3.1pp | 8.3%-1.8pp | 10.1%+0.8pp | 9.3%+0.2pp | 9.0%+1.4pp | 7.7%+2.9pp | 4.8%-4.5pp | 9.3%+1.2pp | 8.0%-0.2pp | 8.2%+6.6pp | 1.6%-0.2pp | 1.8% |
| Net Margin | 10.1%+3.2pp | 6.8%+6.2pp | 0.6%-1.5pp | 2.1%-6.0pp | 8.1%+0.7pp | 7.4%-1.3pp | 8.7%0.0pp | 8.7%+4.3pp | 4.4%+0.5pp | 3.8%-2.8pp | 6.6%+1.0pp | 5.6%+0.3pp | 5.2%+4.0pp | 1.2%+0.3pp | 0.9% |
| 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%-3.4pp | 14.6%+1.4pp | 13.2%+7.0pp | 6.2%+0.8pp | 5.4%-6.2pp | 11.7%+1.7pp | 9.9%+0.3pp | 9.7%+7.5pp | 2.1%+0.7pp | 1.5% |
| 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%-0.7pp | 3.4%+0.3pp | 3.1%+1.9pp | 1.2%+0.1pp | 1.1%-1.3pp | 2.4%+0.4pp | 2.1%+0.2pp | 1.9%+1.5pp | 0.4%+0.1pp | 0.3% |
| Debt-to-Equity | 0.240.0x | 0.25-0.1x | 0.32-4.7x | 5.00+1.5x | 3.54+0.3x | 3.20+3.0x | 0.220.0x | 0.260.0x | 0.260.0x | 0.280.0x | 0.280.0x | 0.320.0x | 0.350.0x | 0.330.0x | 0.37 |
| FCF Margin | 17.8%+5.0pp | 12.8%+6.9pp | 5.8%-7.0pp | 12.9%-2.7pp | 15.6%+1.2pp | 14.4%+2.3pp | 12.1%+0.1pp | 12.0%-4.1pp | 16.1%-1.9pp | 17.9%+9.5pp | 8.5%-2.5pp | 10.9%+3.4pp | 7.5%-0.9pp | 8.4%+3.2pp | 5.2% |
Not reported in any period shown, so not listed: Gross Margin, Current Ratio.
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Where Hanover Insuranc Ranks
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.
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 6 computable signals; 3 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 21.60x, 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 38 out of 100 on our Financial Health Score, indicating weak standing within its insurers peer group. The score is a 0-100 composite of six dimensions (Loss Ratio, Premium Growth, Capital, Investment Yield, Combined Ratio, Stability), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.