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Hanover Insurance

THG NYSE Property & Casualty Insurance Financials FY2016–FY2025

Hanover Insurance's revenue rose 5.7% to $6.6 billion in fiscal 2025. Its operating margin was 14.2%, up from 10.4% a year earlier. Free cash flow was $1.2 billion, up 47.0%. It paid out $260 million in dividends and buybacks, 22% of free cash flow. The diluted share count rose 0.3%.

Last close · Oct 23, 2026

$237.73

0.8%
Value it Compare
Revenue Total sales reported in the income statement.
$6.6B
5.7% vs prior year
Operating margin Operating income as a share of revenue.
14.2%
3.7 pts
Net income Profit after all expenses, interest and tax.
$663M
55.5%
Free cash flow Cash from operations minus capital spending.
$1.2B
47.0%
Return on capital After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
21.3%
4.5 pts
Market cap Last close times the latest diluted share count, so it is approximate.
$8.5B
Oct 23 close
P/E Last close divided by diluted earnings per share over the last four quarters.
11.4x
On $20.94 EPS (TTM)

What Hanover Insurance does

No business description yet.

Legal name
HANOVER INSURANCE GROUP, INC.
Fiscal year ends
December 31, 2025
Latest annual report
—
Accession · CIK
0001193125-26-060983
0000944695

Revenue and margins

Hanover Insurance had $6.6B of revenue in fiscal 2025, up 5.7% on the year before.

Revenue
Revenue
Margins, % of revenue
Gross Operating Net FCF
Margins, % of revenue
Gross Operating Net FCF

Net income and earnings per share

From fiscal 2016 to 2025, diluted EPS grew 19.7% a year. Loss periods are shown in red.

Net income
Net income
Diluted EPS
Diluted EPS

Returns on capital

After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.

Return on capital, equity and assets (annual)
Return on capital Return on equity Return on assets

Cash flow

Free cash flow was $1.2B in fiscal 2025, 17.8% of revenue. Cash from operations minus capital spending.

Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations Capital spending
Cash from operations vs capital spending
Cash from operations Capital spending

Dividends, buybacks and share count

Hanover Insurance returned $260M to shareholders in fiscal 2025, 22% of free cash flow. The diluted share count rose 0.3%.

Dividends and buybacks
Dividends Buybacks
Dividends and buybacks
Dividends Buybacks
Diluted shares outstanding (annual)

Value Hanover Insurance yourself

Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.

Discounted cash flow

Value per share

—

Adds net cash of −$95.6M and divides by 36.5M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.

Earnings multiple

Value per share

—

Reference multiples: today 11.4x · peers 10.1x · sector 13.7x.

Balance sheet

Cash, debt and the ratios that show how comfortably Hanover Insurance can carry it.

Cash vs debt (incl. leases)
Cash Debt
Fiscal year endFY21FY22FY23FY24FY25
Cash and short-term investments $231M$305M$316M$436M$1.1B
Debt incl. finance leases ——$783M$784M$1.2B
Net debt / EBITDA ——4.2x0.5x0.1x
Debt / equity ——0.3x0.3x0.3x
Interest coverage 12.7x8.4x3.1x19.1x21.6x
Total assets $14.3B$14.0B$14.6B$15.3B$16.9B
Total liabilities $11.1B$11.7B$12.1B$12.4B$13.4B
Shareholders' equity $3.1B$2.3B$2.5B$2.8B$3.6B
Net debt (− = net cash) ——$467M$349M$95.6M

Insider trades

Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.

Bought, 12 months

$0.0M

0 insiders

Sold, 12 months

$10.5M

7 insiders

Of sales under plans

43%

$4.6M

DateInsiderTradeSharesPriceValueFiling
Aug 20, 2026 Dennis Francis KerriganExecutive Vice President Sold plan 2,104 $222.41 $0.5M Form 4
Aug 19, 2026 Dennis Francis KerriganExecutive Vice President Sold plan 6,551 $220.79 $1.4M Form 4
Aug 6, 2026 Theodore H Bunting JRDirector Sold 600 $230.20 $0.1M Form 4
Aug 5, 2026 Theodore H Bunting JRDirector Sold 600 $228.03 $0.1M Form 4
Aug 3, 2026 Jane D CarlinDirector Sold 1,000 $231.50 $0.2M Form 4
Jun 3, 2026 Bryan J SalvatoreExecutive Vice President Sold 16,394 $185.76 $3.0M Form 4
May 21, 2026 Francisco AristeguietaDirector Sold 1,000 $195.37 $0.2M Form 4
May 20, 2026 Dennis Francis KerriganExecutive Vice President Sold 6,262 $192.99 $1.2M Form 4
May 20, 2026 John C RochePresident and CEO, Director Sold plan 8,358 $193.74 $1.6M Form 4
May 18, 2026 John C RochePresident and CEO, Director Sold plan 5,251 $198.06 $1.0M Form 4
May 14, 2026 Denise LowsleyExecutive Vice President Sold 4,175 $191.73 $0.8M Form 4
May 8, 2026 Denise LowsleyExecutive Vice President Sold 1,062 $188.43 $0.2M Form 4

Piotroski F-score

Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.

TestFY23FY24FY25
Net income is positive ✓ ✓ ✓
Cash from operations is positive ✓ ✓ ✓
Return on assets rose ✕ ✓ ✓
Cash from operations exceeds net income ✓ ✓ ✓
Debt fell relative to assets — ✓ ✕
Current ratio rose — — —
Share count didn't rise ✓ ✕ ✕
Gross margin rose — — —
Revenue rose relative to assets ✓ ✕ ✓
F-score — / 9— / 9— / 9
Accruals ratio −2.3%−2.6%−3.2%
Altman Z'' ———

Similar companies

Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.

CompanyMarket capGrowthOp. marginFCF marginROICP/EF-score
Hanover Insurance THG $8.5B 5.7% 14.2% 17.8% 21.3% 11.4x —
Selective Insurance Group SIGI $5.8B 9.8% — 22.4% 14.6% 11.6x — Compare →
Old Republic International ORI $9.6B 11.0% — — — 8.5x — Compare →
Cincinnati Financial CINF $27.4B 11.4% — 24.5% 17.1% 8.3x — Compare →
Fidelity National Financial FNF $10.8B 5.6% — — — 14.0x — Compare →

10 years of figures

US$ millions unless stated. Hover a ratio's name for its definition.

Download CSV
Fiscal yearFY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Income statement
Revenue $4.1B $4.3B $4.5B $4.9B $4.8B $5.2B $5.5B $6.0B $6.2B $6.6B
Operating income $193M $327M $407M $454M $485M $432M $285M $106M $650M $933M
Interest expense $51.4M $45.2M $45.1M $37.5M $37.1M $34.0M $34.1M $34.1M $34.1M $43.2M
Pretax income $66.0M $293M $283M $522M $445M $521M $144M $41.1M $538M $844M
Income tax −$1.0M $76.8M $43.5M $93.1M $82.8M $101M $27.2M $7.6M $113M $183M
Net income $155M $186M $391M $425M $359M $423M $116M $35.3M $426M $663M
Diluted EPS $3.59 $4.33 $9.09 $10.46 $9.42 $11.60 $3.21 $0.98 $11.70 $18.16
Diluted shares 0.04B 0.04B 0.04B 0.04B 0.04B 0.04B 0.04B 0.04B 0.04B 0.04B
Cash flow
Cash from operations $743M $705M $551M $603M $708M $824M $722M $362M $806M $1.2B
Capital expenditure $15.7M $18.6M $13.1M $13.3M $14.9M $8.0M $17.8M $11.9M $10.2M $7.7M
Free cash flow $728M $686M $538M $590M $693M $816M $705M $350M $796M $1.2B
Depreciation and amortization $30.7M $30.1M $24.6M $21.6M $18.2M $16.9M $12.9M $6.3M $1.5M −$4.6M
Stock-based compensation $12.0M $12.3M $13.4M $17.4M $20.1M $22.9M $29.0M $31.1M $31.0M $35.6M
Acquisitions $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Share buybacks $106M $37.2M $57.7M $564M $213M $163M $30.8M $0.0M $26.7M $129M
Dividends paid $80.4M $86.8M $94.3M $386M $99.5M $102M $109M $117M $124M $131M
Dividends and buybacks $186M $124M $152M $950M $312M $265M $140M $117M $151M $260M
Balance sheet
Cash and short-term investments $283M $298M $1.0B $216M $121M $231M $305M $316M $436M $1.1B
Total debt $786M $787M $778M $653M — — — $783M $784M $1.2B
Finance lease liabilities $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Inventory $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Total assets $14.2B $15.5B $12.4B $12.5B $13.4B $14.3B $14.0B $14.6B $15.3B $16.9B
Total liabilities $11.4B $12.5B $9.4B $9.6B $10.2B $11.1B $11.7B $12.1B $12.4B $13.4B
Shareholders' equity $2.9B $3.0B $3.0B $2.9B $3.2B $3.1B $2.3B $2.5B $2.8B $3.6B
Margins
Operating margin 4.8% 7.7% 9.0% 9.3% 10.1% 8.3% 5.2% 1.8% 10.4% 14.2%
EBITDA margin 5.5% 8.4% 9.6% 9.7% 10.4% 8.6% 5.5% 1.9% 10.5% 14.1%
Net margin 3.8% 4.4% 8.7% 8.7% 7.4% 8.1% 2.1% 0.6% 6.8% 10.1%
FCF margin 18.0% 16.1% 12.0% 12.1% 14.4% 15.6% 12.9% 5.8% 12.8% 17.8%
Returns
Return on capital 5.8% 7.1% 11.1% 12.3% — — — — 16.8% 21.3%
Return on equity 5.4% 6.4% 13.1% 14.5% 11.7% 13.3% 4.2% 1.5% 16.1% 20.7%
Return on assets 1.1% 1.3% 2.8% 3.4% 2.8% 3.1% 0.8% 0.3% 2.9% 4.1%
Growth
Revenue growth −19.5% 5.3% 5.3% 8.8% −1.4% 8.4% 4.6% 9.6% 4.1% 5.7%
Net income growth −53.2% 20.1% 110.0% 8.7% −15.6% 17.9% −72.6% −69.6% 1,106.8% 55.5%
EPS growth −51.5% 20.6% 109.9% 15.1% −9.9% 23.1% −72.3% −69.5% 1,093.9% 55.2%
FCF growth 71.1% −5.7% −21.6% 9.6% 17.5% 17.8% −13.6% −50.4% 127.6% 47.0%
Share count change −3.6% −0.5% 0.0% −5.6% −6.2% −4.5% −0.8% 0.0% 0.8% 0.3%
Financial health
Net debt / EBITDA 2.3x 1.4x −0.6x 0.9x — — — 4.2x 0.5x 0.1x
Debt / equity 0.3x 0.3x 0.3x 0.2x — — — 0.3x 0.3x 0.3x
Interest coverage 3.8x 7.2x 9.0x 12.1x 13.1x 12.7x 8.4x 3.1x 19.1x 21.6x
Capital allocation
Capex / revenue 0.4% 0.4% 0.3% 0.3% 0.3% 0.2% 0.3% 0.2% 0.2% 0.1%
Stock comp / revenue 0.3% 0.3% 0.3% 0.4% 0.4% 0.4% 0.5% 0.5% 0.5% 0.5%
Payouts / FCF 25.6% 18.1% 28.2% 161.1% 45.1% 32.5% 19.8% 33.5% 18.9% 22.2%
Quality scores
Accruals ratio −4.2% −3.5% −1.2% −1.4% −2.7% −2.9% −4.3% −2.3% −2.6% −3.2%

Source: SEC EDGAR XBRL filings (CIK 0000944695). Data updated October 18, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.

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