Underwriting profitability has reached an inflection point, with the combined ratio improving from a 96.7% peak in 2024Q2 to 86.1% in 2026Q1, supported by a 6.6% year-over-year revenue increase.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 6.68B | 6.6B | 6.22B | 5.96B | 5.43B | 5.16B | 4.82B | 4.89B | 4.47B | 4.27B | 3.97B | 5.05B | 5.07B | 4.79B | 4.59B | 3.93B | 3.15B | 2.83B | 2.68B | 2.67B | 2.64B | 2.62B | 3.1B | 2.8B | 2.89B | 2.89B | 3.16B | 3.24B | 3.13B | 3.01B | 3.29B |
| Revenue Growth % | 6.57% | 6.12% | 4.25% | 9.77% | 5.3% | 7.08% | -1.47% | 9.51% | 4.64% | 7.62% | -21.45% | -0.38% | 5.71% | 4.42% | 16.76% | 24.73% | 11.22% | 5.73% | 0.24% | 1.2% | 0.77% | -15.48% | 10.73% | -3.01% | -0.02% | -8.63% | -2.43% | 3.7% | 3.94% | -8.48% | 0.93% |
| Medical Costs & Claims | 4.38B | 3.73B | 4.98B | 5.31B | 4.72B | 4.12B | 3.8B | 3.79B | 3.62B | 3.42B | 3.35B | 3.92B | 3.97B | 3.73B | 3.91B | 3.33B | 2.53B | 2.6B | 2.18B | 1.98B | 1.95B | 2.17B | 2.37B | 2.25B | 2.4B | 2.43B | 2.44B | 2.29B | 2.35B | 2.41B | 2.41B |
| Medical Cost Ratio % | 65.48% | 56.53% | 80.09% | 89.05% | 86.82% | 79.79% | 78.78% | 77.54% | 80.97% | 80.14% | 84.47% | 77.6% | 78.29% | 77.85% | 85.23% | 84.69% | 80.11% | 91.66% | 81.42% | 74.08% | 73.77% | 82.69% | 76.54% | 80.34% | 83.25% | 84.15% | 77.12% | 70.79% | 75.29% | 80.27% | 73.5% |
| Gross Profit | 2.31B | 2.87B | 1.24B | 652.9M | 716.3M | 1.04B | 1.02B | 1.1B | 849.7M | 847.6M | 616M | 1.13B | 1.1B | 1.06B | 678.2M | 601.9M | 626.9M | 236.4M | 498M | 693.1M | 693.2M | 453.9M | 727.7M | 550.9M | 483.8M | 458M | 723.6M | 946.6M | 772.1M | 593.2M | 870.6M |
| Gross Margin % | 34.52% | 43.47% | 19.91% | 10.95% | 13.18% | 20.21% | 21.22% | 22.46% | 19.03% | 19.86% | 15.53% | 22.4% | 21.71% | 22.15% | 14.77% | 15.31% | 19.89% | 8.34% | 18.58% | 25.92% | 26.23% | 17.31% | 23.46% | 19.66% | 16.75% | 15.85% | 22.88% | 29.21% | 24.71% | 19.73% | 26.5% |
| Gross Profit Growth % | - | 131.74% | 89.57% | -8.85% | -31.3% | 1.99% | -6.93% | 29.28% | 0.25% | 37.6% | -45.53% | 2.82% | 3.62% | 56.53% | 12.68% | -3.99% | 165.19% | -52.53% | -28.15% | -0.01% | 52.72% | -37.63% | 32.09% | 13.87% | 5.63% | -36.71% | -23.56% | 22.6% | 30.16% | -31.86% | -68.73% |
| Operating Expenses | 1.39B | 2.02B | 699.9M | 611.8M | 572.3M | 521.4M | 577.6M | 576.4M | 567.2M | 554.7M | 550M | 691.6M | 722M | 732.5M | 649.5M | 580.3M | 415.8M | -34.5M | 333.6M | 351.6M | 413.8M | 382.6M | 541M | 490.7M | 353.8M | 0 | 505M | 0 | 472M | -2B | -1.96B |
| OpEx / Revenue % | 20.74% | 30.68% | 11.26% | 10.26% | 10.53% | 10.11% | 11.99% | 11.79% | 12.7% | 13% | 13.87% | 13.7% | 14.25% | 15.28% | 14.15% | 14.76% | 13.19% | -1.22% | 12.45% | 13.15% | 15.66% | 14.59% | 17.44% | 17.51% | 12.25% | 0% | 15.97% | 0% | 15.1% | -66.68% | -59.57% |
| Depreciation & Amortization | -2.2M | 0 | 1.5M | 6.3M | 12.9M | 16.9M | 18.2M | 21.6M | 24.6M | 30.1M | 30.7M | 30.2M | 33.5M | 35M | 35.6M | 26.7M | 16.7M | 11.8M | 15.1M | 18.9M | 21.4M | 31.6M | 38.2M | 35.8M | 20.6M | 23M | 22.8M | 34.2M | 21.9M | 31.6M | 44.7M |
| Combined Ratio % | 86.22% | 87.21% | 91.35% | 99.31% | 97.35% | 89.9% | 90.77% | 89.32% | 93.67% | 93.14% | 98.34% | 91.3% | 92.54% | 93.13% | 99.37% | 99.45% | 93.3% | 90.44% | 93.87% | 87.23% | 89.43% | 97.28% | 93.98% | 97.85% | 95.5% | 84.15% | 93.09% | 70.79% | 90.4% | 13.59% | 13.93% |
| Operating Income | 920.8M | 843.8M | 537.8M | 41.1M | 144M | 521.3M | 444.8M | 522.1M | 282.5M | 292.9M | 66M | 439.4M | 378M | 329.1M | 28.7M | 21.6M | 211.1M | 270.9M | 164.4M | 341.5M | 279.4M | 71.3M | 186.7M | 60.2M | 130M | 458M | 218.6M | 946.6M | 300.1M | 2.6B | 2.83B |
| Operating Margin % | 13.78% | 12.79% | 8.65% | 0.69% | 2.65% | 10.1% | 9.23% | 10.68% | 6.33% | 6.86% | 1.66% | 8.7% | 7.46% | 6.87% | 0.63% | 0.55% | 6.7% | 9.56% | 6.13% | 12.77% | 10.57% | 2.72% | 6.02% | 2.15% | 4.5% | 15.85% | 6.91% | 29.21% | 9.6% | 86.41% | 86.07% |
| Operating Income Growth % | - | 56.9% | 1208.52% | -71.46% | -72.38% | 17.2% | -14.81% | 84.81% | -3.55% | 343.79% | -84.98% | 16.24% | 14.86% | 1046.69% | 32.87% | -89.77% | -22.07% | 64.78% | -51.86% | 22.23% | 291.87% | -61.81% | 210.13% | -53.69% | -71.62% | 109.52% | -76.91% | 215.43% | -88.45% | -8.12% | 1.57% |
| EBITDA | 933.1M | 887M | 539.3M | 47.4M | 156.9M | 538.2M | 463M | 543.7M | 307.1M | 323M | 96.7M | 469.6M | 411.5M | 364.1M | 64.3M | 48.3M | 227.8M | 282.7M | 179.5M | 360.4M | 300.8M | 102.9M | 224.9M | 96M | 150.6M | 481M | 241.4M | 980.8M | 322M | 2.63B | 2.87B |
| EBITDA Margin % | 13.96% | 13.44% | 8.67% | 0.79% | 2.89% | 10.43% | 9.61% | 11.12% | 6.88% | 7.57% | 2.44% | 9.3% | 8.12% | 7.6% | 1.4% | 1.23% | 7.23% | 9.97% | 6.7% | 13.48% | 11.38% | 3.92% | 7.25% | 3.43% | 5.21% | 16.65% | 7.63% | 30.27% | 10.3% | 87.46% | 87.43% |
| Interest Expense | 45.5M | 43.2M | 34.1M | 34.1M | 34.1M | 34M | 37.1M | 37.5M | 45.1M | 45.2M | 51.4M | 60.6M | 65.8M | 65.3M | 61.9M | 55M | 44.3M | 0 | 0 | 40.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -34.7M | -43.2M | -34.1M | -34.1M | -34.1M | -34M | -37.1M | -37.5M | -45.1M | -45.2M | -51.4M | -60.6M | -65.8M | -65.3M | -61.9M | -55M | -44.3M | 0 | 0 | -47.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 920.8M | 843.8M | 537.8M | 41.1M | 144M | 521.3M | 444.8M | 522.1M | 282.5M | 292.9M | 66M | 439.4M | 378M | 329.1M | 28.7M | 21.6M | 211.1M | 270.9M | 164.4M | 341.5M | 279.4M | 71.3M | 186.7M | 60.2M | 130M | 44.7M | 218.6M | 452M | 300.1M | 277.3M | 257.1M |
| Pretax Margin % | 13.78% | 12.79% | 8.65% | 0.69% | 2.65% | 10.1% | 9.23% | 10.68% | 6.33% | 6.86% | 1.66% | 8.7% | 7.46% | 6.87% | 0.63% | 0.55% | 6.7% | 9.56% | 6.13% | 12.77% | 10.57% | 2.72% | 6.02% | 2.15% | 4.5% | 1.55% | 6.91% | 13.95% | 9.6% | 9.22% | 7.83% |
| Income Tax | 201.5M | 183.1M | 112.5M | 7.6M | 27.2M | 101.3M | 82.8M | 93.1M | 43.5M | 76.8M | -1M | 108.6M | 95.7M | 83.4M | -17.4M | -9.9M | 57.9M | 83.1M | 79.9M | 113.2M | 87.7M | -5.2M | 4.2M | 3.9M | -234.8M | 88.2M | 2.7M | 106.9M | 56.1M | 84.7M | 75.2M |
| Effective Tax Rate % | 21.88% | 21.7% | 20.92% | 18.49% | 18.89% | 19.43% | 18.62% | 17.83% | 15.4% | 26.22% | -1.52% | 24.72% | 25.32% | 25.34% | -60.63% | -45.83% | 27.43% | 30.68% | 48.6% | 33.15% | 31.39% | -7.29% | 2.25% | 6.48% | -180.62% | 197.32% | 1.24% | 23.65% | 18.69% | 30.54% | 29.25% |
| Net Income | 721.1M | 662.5M | 426M | 35.3M | 116M | 422.8M | 358.7M | 425.1M | 391M | 186.2M | 155.1M | 331.5M | 282M | 251M | 55.9M | 36.7M | 154.8M | 197.2M | 20.6M | 253.1M | 170.3M | -325.2M | 125.3M | 86.9M | -306.1M | -3.1M | 199.9M | 295.8M | 201.2M | 209.2M | 181.9M |
| Net Margin % | 10.79% | 10.04% | 6.85% | 0.59% | 2.14% | 8.19% | 7.44% | 8.69% | 8.75% | 4.36% | 3.91% | 6.57% | 5.56% | 5.24% | 1.22% | 0.93% | 4.91% | 6.96% | 0.77% | 9.46% | 6.44% | -12.4% | 4.04% | 3.1% | -10.6% | -0.11% | 6.32% | 9.13% | 6.44% | 6.96% | 5.54% |
| Net Income Growth % | 64.37% | 55.52% | 1106.8% | -69.57% | -72.56% | 17.87% | -15.62% | 8.72% | 109.99% | 20.05% | -53.21% | 17.55% | 12.35% | 349.02% | 52.32% | -76.29% | -21.5% | 857.28% | -91.86% | 48.62% | 152.37% | -359.54% | 44.19% | 128.39% | -9774.19% | -101.55% | -32.42% | 47.02% | -3.82% | 15.01% | 35.85% |
| EPS (Diluted) | 19.87 | 18.51 | 11.70 | 0.98 | 3.21 | 11.49 | 9.42 | 10.46 | 9.09 | 4.33 | 3.59 | 7.40 | 6.28 | 5.59 | 1.23 | 0.81 | 3.39 | 3.86 | 0.40 | 4.83 | 3.27 | -6.08 | 2.34 | 1.64 | -5.79 | -0.06 | 3.70 | 5.33 | 3.43 | 3.82 | 3.63 |
| EPS Growth % | 65.11% | 58.21% | 1093.88% | -69.47% | -72.06% | 21.97% | -9.94% | 15.07% | 109.93% | 20.61% | -51.49% | 17.83% | 12.34% | 354.47% | 51.85% | -76.11% | -12.18% | 865% | -91.72% | 47.71% | 153.78% | -359.83% | 42.68% | 128.32% | -9550% | -101.62% | -30.58% | 55.39% | -10.21% | 5.23% | 39.08% |
| EPS (Basic) | - | 18.51 | 11.85 | 0.98 | 3.21 | 11.79 | 9.51 | 11.07 | 9.24 | 4.38 | 3.63 | 7.71 | 6.42 | 5.74 | 1.26 | 0.83 | 3.39 | 3.90 | 0.40 | 4.90 | 3.31 | -6.08 | 2.36 | 1.64 | -5.79 | -0.06 | 3.79 | 5.46 | 3.43 | 3.83 | 3.63 |
| Diluted Shares Outstanding | 36.3M | 35.7M | 36.4M | 36.1M | 36.1M | 36.4M | 38.1M | 40.6M | 43M | 43M | 43.2M | 44.8M | 44.9M | 44.9M | 45.3M | 45.8M | 46.3M | 51.1M | 51.7M | 52.4M | 52.2M | 54M | 53.7M | 53.1M | 52.9M | 52.6M | 54.03M | 55.5M | 60.5M | 54.76M | 50.11M |
Catastrophe-driven underwriting volatility
As reported in recent financial statements, The Hanover achieved a 6.6% year-over-year revenue increase in 2026Q1, signaling that the company is successfully leveraging its independent agency distribution model to push through necessary rate adjustments in a competitive property and casualty insurance market environment.
The consistent revenue expansion suggests that the company's franchise-style agency relationships are providing significant pricing power, allowing for premium growth that outpaces broader market trends. This trajectory appears to be supported by a disciplined focus on SME accounts, which likely insulates the top line from the more aggressive price-shopping cycles seen in commoditized personal lines.
Based on the provided quarterly data, the combined ratio improved to 86.1% in 2026Q1, reflecting a notable recovery from the 96.7% peak observed in 2024Q2 and indicating that the company's underwriting discipline is effectively translating into superior margin expansion during the current hard market cycle.
The sharp reduction in the combined ratio suggests that management's efforts to prune underperforming geographic territories and lines of business are yielding tangible results. Investors should monitor whether this margin improvement is sustainable or if it remains overly sensitive to the volatility of secondary catastrophe perils.
According to historical income statement data, the company navigated a challenging 2024Q2 period where the combined ratio spiked to 96.7%, but has since demonstrated a clear recovery trend, with underwriting performance stabilizing significantly as the firm successfully adjusted its risk appetite and pricing strategies.
This period serves as a critical inflection point that highlights the company's sensitivity to weather-related loss volatility. The subsequent improvement in operating income suggests that the firm has successfully recalibrated its exposure, though the reliance on favorable weather patterns warrants continued scrutiny of its long-term loss-cost management.
While the current underwriting margins appear robust, the potential for social inflation to impact long-tail liability reserves remains a significant analytical concern, as indicated by the historical fluctuations in loss ratios that may mask underlying development trends within the company's commercial lines segment.
The reliance on prior-year reserve development to bolster current earnings requires careful investigation, as it may obscure the true attritional loss ratio. If litigation trends in the Northeast and Midwest continue to accelerate, the company may face future reserve strengthening requirements that could pressure future profitability.
Quick answers to the most common questions about buying THG stock.
For fiscal year 2025, The Hanover Insurance Group, Inc. (THG) reported total revenue of $6.60B. This represents a 100.8% increase compared to $3.29B in 1996.
The Hanover Insurance Group, Inc. (THG) is profitable, generating $662.5M in net income for the fiscal year ending 2025 with a net profit margin of 10.0%.
The Hanover Insurance Group, Inc. (THG) reported an operating income of $843.8M, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
The Hanover Insurance Group, Inc. (THG) generated $2.87B in gross profit for the year, representing a gross profit margin of 43.5%. This demonstrates the company's core pricing power and production efficiency.