HANOVER INSURANCE GROUP, INC. financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data HANOVER INSURANCE GROUP, INC. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	4,054	4,268	4,494	4,891	4,825	5,228	5,469	5,994	6,237	6,594
Operating income	193	327	407	454	485	432	285	106	650	933
Interest expense	51.4	45.2	45.1	37.5	37.1	34	34.1	34.1	34.1	43.2
Interest income	241	254	278	290	275	322	308	346	388	470
Other non-operating income	2.6	-10.3		-3.4	-1.6		-0.5	2.1	-2.4
Pre-tax income	66	293	283	522	445	521	144	41.1	538	844
Income tax	-1	76.8	43.5	93.1	82.8	101	27.2	7.6	113	183
Income from continuing operations	67	216	239	429	362	420	117	33.5	425	661
Net income	155	186	391	425	359	423	116	35.3	426	663
EBITDA	224	357	431	475	503	449	298	112	652	928
EPS, basic	3.63	4.38	9.21	10.62	9.52	11.78	3.26	0.99	11.85	18.50
EPS, diluted	3.59	4.33	9.09	10.46	9.42	11.60	3.21	0.98	11.70	18.16
Shares, basic (weighted)	42.8	42.5	42.4	40	37.7	35.9	35.6	35.7	35.9	35.8
Shares, diluted (weighted)	43.2	43	43	40.6	38.1	36.4	36.1	36.1	36.4	36.5

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	147	298	1,021	216	121	231	305	316	436	1,123
Goodwill	185	179	179	179	179	179	179	179	179	179
Intangible assets						16	15.5	15.5	15.8	18
Total assets	14,220	15,470	12,400	12,491	13,444	14,254	13,995	14,613	15,275	16,946
Short-term debt									61.8	375
Total liabilities	11,363	12,472	9,445	9,574	10,242	11,109	11,661	12,147	12,433	13,374
Total debt	786	787	778	653				783	722	843
Paid-in capital	1,847	1,857	1,872	1,837	1,857	1,887	1,913	1,939	1,974	2,014
Retained earnings	1,876	1,975	2,182	2,411	2,668	2,983	2,993	2,909	3,210	3,742
Treasury stock	-928	-943	-984	-1,485	-1,696	-1,848	-1,871	-1,866	-1,886	-2,013
Other comprehensive income	62.8	108	-117	153	373	122	-702	-517	-456	-171
Shareholders' equity	2,858	2,998	2,955	2,916	3,202	3,136	2,334	2,466	2,842	3,572
Total equity	2,858	2,998	2,955	2,916	3,202	3,136	2,334	2,466	2,842	3,572
Total liabilities and equity	14,220	15,470	12,400	12,491	13,444	14,254	13,995	14,613	15,275	16,946

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	155	186	391	425	359	423	116	35.3	426	663
Depreciation and amortization	30.7	30.1	24.6	21.6	18.2	16.9	12.9	6.3	1.5	-4.6
Stock-based compensation	12	12.3	13.4	17.4	20.1	22.9	29	31.1	31	35.6
Deferred income tax	-27.2	73.7	-2.7	12.6	-23.1	23.8	-46.5	-25	-18.6	13.8
Change in payables	12.7	-0.5	4.6	11	67.5	179	3.3	48	-8.7	58.9
Cash from operations	743	705	551	603	708	824	722	362	806	1,178
Capital expenditures	-15.7	-18.6	-13.1	-13.3	-14.9	-8	-17.8	-11.9	-10.2	-7.7
Purchases of investments	-2,021	-1,646	-1,426	-1,588	-1,829	-2,113	-1,960	-1,060	-3,241	-3,308
Sales and maturities of investments	1,602	1,225		541	264	485	489	169	1,844	1,453
Cash from investing	-495	-506	271	-312	-609	-460	-508	-229	-541	-666
Debt issued	371				296
Debt repaid	-475		-11.6	-151	-176			0	0	-61.8
Stock issued	16.2	23.1	14.8	14.4	6.3	20.5	13.3	6.5	16.7	15.4
Share buybacks	-106	-37.2	-57.7	-564	-213	-163	-30.8	0	-26.7	-129
Dividends paid	-80.4	-86.8	-94.3	-386	-99.5	-102	-109	-117	-124	-131
Cash from financing	-301	-112	-171	-1,099	-194	-253	-141	-122	-146	175
Exchange rate effect	-3.4	7.2	-4
Net change in cash	-56.2	93.8	648	-808	-95.1	110	74.1	11.1
Free cash flow	728	686	538	590	693	816	705	350	796	1,170
Interest paid	53.1	47.5	47.8	37	33.9	33.4	33.3	33.2	33.2	33.3
Income taxes paid	29.7	51.1	57	114	97	74	108	-22.1	149	169

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $217.44 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Operating margin	15.4%	Operating income / revenue.
EBITDA margin	15.3%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	14.3%	Pre-tax income / revenue.
Net margin	11.2%	Net income / revenue.
FCF margin	18.5%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	18.7%	Cash from operations / revenue.
Effective tax rate	22.0%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	20.6%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	4.5%	Net income / average total assets.
Return on invested capital (ROIC)	19.3%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
Stock-based pay / revenue	0.5%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	0.2%	Capital expenditures / revenue.
D&A / revenue	-0.1%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	5.7%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	6.4%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	6.4%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	43.5%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	48.5%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income CAGR, 5y	14.0%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA growth, 1y	42.5%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	46.1%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	13.0%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	55.5%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	78.7%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	13.1%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	55.2%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	78.2%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	14.0%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	46.1%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	17.7%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	10.7%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	47.0%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	18.4%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	11.1%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	25.7%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	15.2%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	2.2%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	10.9%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	6.6%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	4.7%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	0.3%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	0.4%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	-0.9%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Debt / equity	0.22x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	4.7%	Total debt / total assets.
Liabilities / assets	78.2%	Total liabilities / total assets.
Net debt	$527.8M	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	0.51x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Interest coverage	22.1x	Operating income / interest expense.
Goodwill and intangibles / assets	1.1%	(Goodwill + intangible assets) / total assets.
Tangible book value	$3.49B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.40x	Revenue / average total assets.
FCF conversion	165.8%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	0.8%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$21.22	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$190.01	Revenue / diluted weighted shares.
FCF per share	$35.20	Free cash flow / diluted weighted shares.
Operating cash flow per share	$35.50	Cash from operations / diluted weighted shares.
Book value per share	$103.16	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$98.14	Tangible book value / shares outstanding.
Cash per share	$7.47	(Cash + short-term investments) / shares outstanding.
Payout ratio	17.5%	Dividends paid / net income, when net income is positive.
Dividends / FCF	10.6%	Dividends paid / free cash flow, when free cash flow is positive.
Buybacks / FCF	18.6%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$7.57B	Share price x shares outstanding.
Enterprise value	$8.10B	Market cap + total debt - cash - short-term investments.
P/E	10.0x	Market cap / net income. Only when net income is positive.
P/S	1.12x	Market cap / revenue.
P/B	2.06x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	2.17x	Market cap / tangible book value, when positive.
P/FCF	6.04x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	5.99x	Market cap / cash from operations, when positive.
EV/Sales	1.20x	Enterprise value / revenue.
EV/EBIT	7.80x	Enterprise value / operating income, when both are positive.
EV/EBITDA	7.84x	Enterprise value / EBITDA, when both are positive.
EV/FCF	6.46x	Enterprise value / free cash flow, when both are positive.
FCF yield	16.6%	Free cash flow / market cap.
Earnings yield	10.0%	Net income / market cap (the inverse of P/E).
Dividend yield	1.8%	Dividends paid over the period / market cap.
Shareholder yield	4.8%	(Dividends paid + share buybacks) / market cap.
PEG	0.13x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was HANOVER INSURANCE GROUP, INC.'s revenue in fiscal 2025?

HANOVER INSURANCE GROUP, INC. reported revenue of $6.59B for fiscal 2025, 5.7% higher than the year before.

Was HANOVER INSURANCE GROUP, INC. profitable in fiscal 2025?

Yes. Net income was $662.5M, a net margin of 10%.

How much free cash flow did HANOVER INSURANCE GROUP, INC. generate in fiscal 2025?

Cash from operations of $1.18B minus capital expenditures of $7.7M left free cash flow of $1.17B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

Open interactive statements, quarterly figures and charts

Back to HANOVER INSURANCE GROUP, INC.