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THG

The Hanover Insurance Group, Inc.

THG

The Hanover Insurance Group, Inc. • NYSE
$185.55 ▼ -0.13% (-0.24)
Market Cap $6.60 B
52w High $187.41
52w Low $145.17
Dividend Yield 3.60%
P/E 10.73
Volume 104.54K
Outstanding Shares 35.58M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.658B ▲ $179.1M ▲ $178.7M ▲ 10.777% ▲ $4.98 ▲ $237.5M ▲
Q2-2025 $1.651B ▲ $175.9M ▲ $157.1M ▲ 9.516% ▲ $4.38 ▲ $206.4M ▲
Q1-2025 $1.596B ▲ $166.4M ▼ $128.2M ▼ 8.034% ▼ $3.5 ▼ $167.5M ▼
Q4-2024 $1.578B ▲ $194.8M ▲ $167.9M ▲ 10.638% ▲ $4.59 ▲ $219.4M ▲
Q3-2024 $1.561B $169.8M $102.1M 6.539% $2.8 $138.7M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $915.7M ▲ $16.774B ▲ $13.348B ▲ $3.426B ▲
Q2-2025 $244.1M ▼ $15.732B ▲ $12.516B ▲ $3.216B ▲
Q1-2025 $4.156B ▲ $15.47B ▲ $12.426B ▼ $3.044B ▲
Q4-2024 $2.023B ▼ $15.274B ▼ $12.433B ▼ $2.842B ▼
Q3-2024 $3.813B $15.367B $12.489B $2.878B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $178.7M ▲ $554.4M ▲ $-308.5M ▼ $427.6M ▲ $671.6M ▲ $551.4M ▲
Q2-2025 $157.1M ▲ $206.6M ▲ $-222.3M ▼ $-55.3M ▼ $-71M ▲ $204.9M ▲
Q1-2025 $128.2M ▼ $38.9M ▼ $-111.8M ▲ $-47.5M ▲ $-120.4M ▼ $37.1M ▼
Q4-2024 $167.9M ▲ $213.5M ▼ $-150.3M ▲ $-54.8M ▼ $8.4M ▼ $210.5M ▼
Q3-2024 $102.1M $394.7M $-278.5M $-26.7M $89.5M $392.3M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Core Commercial Lines Segment
Core Commercial Lines Segment
 $600.00M ▲$590.00M ▼$600.00M ▲$610.00M ▲
Other Operating Segment
Other Operating Segment
 $10.00M ▲$0 ▼$0 ▲$10.00M ▲
Personal Lines Segment
Personal Lines Segment
 $660.00M ▲$660.00M ▲$670.00M ▲$680.00M ▲
Specialty Lines Segment
Specialty Lines Segment
 $360.00M ▲$370.00M ▲$380.00M ▲$380.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the past several years, showing that the core business is expanding at a healthy, measured pace. Profitability, however, has been more up and down. The company enjoyed solid profits earlier in the period, went through a weak patch in the middle with much thinner earnings, and then delivered a very strong rebound most recently, with earnings back at the high end of the range. That pattern is typical for a property and casualty insurer, where catastrophe losses, inflation in claims costs, and pricing cycles can temporarily pressure margins. The most recent year suggests that pricing, underwriting discipline, and risk selection have improved meaningfully after that tough stretch.

Balance Sheet

Balance Sheet The balance sheet looks generally solid and conservatively managed. Assets have crept up over time, showing gradual growth rather than aggressive expansion. Cash has built up from a low base, which gives more flexibility but remains modest compared with the overall size of the company, as is normal in insurance. Debt levels have been held flat for years, so as the business has grown, leverage has effectively become more comfortable rather than more stretched. Shareholder equity dipped in the middle of the period and has since recovered part of that ground, which likely reflects a mix of investment market movements and prior underwriting pressure. Overall capitalisation appears sound, but not excessive, which is important for absorbing insurance shocks and regulatory demands.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has been consistently positive every year, even when accounting profits were under pressure, which suggests that the underlying insurance engine kept bringing in cash premiums. Free cash flow closely tracks operating cash flow because the business does not require heavy investment in physical assets, making it a capital‑light model. Even in the weaker earnings year, the company still produced healthy free cash flow, which is encouraging for its ability to fund claims, invest in growth initiatives, and support shareholder returns without depending heavily on new borrowing.

Competitive Edge

Competitive Edge The Hanover operates as a focused property and casualty insurer with a strong tilt toward working through independent agents rather than selling directly to customers. That agent‑centric model is a core part of its edge: by concentrating on a select group of partners and not competing with them, the company builds loyalty and can win higher‑quality business. It has also carved out expertise in specialty lines—such as complex commercial, marine, and other niche risks—where tailored coverage and underwriting know‑how matter more than sheer scale. This specialization, combined with disciplined underwriting, can support better profitability than standard commodity insurance. On the other hand, the company is smaller than the largest national insurers, so it must maintain its momentum in selected niches and relationships to avoid being squeezed on price or distribution by bigger rivals.

Innovation and R&D

Innovation and R&D While insurers do not spend on research and development the way technology or pharmaceutical firms do, The Hanover is clearly investing in innovation. Its digital platform for agents aims to make quoting and binding policies fast and simple, which helps keep the agent channel loyal and productive. The company is adopting automation and early AI tools in underwriting and operations to speed decisions and improve risk assessment, and it is using technologies like drones and advanced analytics in claims to reduce inspection time and improve accuracy. Product innovation is also notable, especially in harder‑to‑insure sectors such as high‑hazard industrial property, specialty liability, cyber risk, and life sciences, where bespoke coverage and bundled solutions can command better economics. The main watchpoints are execution risk—ensuring these tools are adopted widely and actually improve loss ratios—and keeping pace with rapid changes in cyber and AI‑related regulation and risk.

Summary

Overall, The Hanover shows the profile of a disciplined, mid‑sized property and casualty insurer that leans on strong agent relationships, niche specialization, and growing digital capabilities. The top line has grown steadily, and earnings have rebounded sharply after a difficult period, suggesting that pricing and risk management adjustments are taking hold. The balance sheet appears robust, leverage is restrained, and cash flows are consistently healthy, giving the company resilience against industry volatility. Its competitive edge lies less in brute scale and more in focus: independent agents, specialized segments, and underwriting discipline, supported by targeted technology investments. Key uncertainties include exposure to catastrophe events, claims inflation, competition from larger carriers and direct‑to‑consumer models, and the need to keep delivering on its digital and AI ambitions. Taken together, the company appears to be moving from a cyclical trough back toward stronger performance, with its long‑term prospects tied to how well it sustains underwriting quality and innovation in its chosen niches.

NEWS

November 3, 2025 · 1:00 PM UTC

The Hanover Enhances Its Offering for Complex Industrial Property Risks

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October 29, 2025 · 4:10 PM UTC

The Hanover Reports Record Third Quarter Net Income and Operating Income of $4.90 and $5.09 per Diluted Share, Respectively; Net and Operating Return on Equity of 21.5% and 21.1%, Respectively

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October 15, 2025 · 2:15 PM UTC

New Report from The Hanover Reveals Gaps in Homeowners' Insurance Awareness

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September 22, 2025 · 4:01 PM UTC

The Hanover Insurance Group, Inc. to Issue Third Quarter Financial Results on October 29

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September 18, 2025 · 10:01 AM UTC

The Hanover Among TIME's World's Best Companies and Forbes' Best Insurance Companies

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