The Hanover Insurance Group, Inc. (THG) Cash Flow Statement
Where THG’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $1.18B +46.1% vs 2024
- Capital expenditures
- $7.7M 0.1% of revenue
- Free cash flow
- $1.17B 17.7% margin
- Returned to shareholders
- $259.8M 22% of free cash flow
- Change in cash
- $687.2M cash at year-end $1.12B
Drawn to scale: where the cash came from and how it was used. Hover for values.
THG operating cash flow, capex and free cash flow
THG cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $743.4M2016 | $1.18B2025 | +5.2%/yr | |
| Capital expenditures | $15.7M2016 | $7.7M2025 | −7.6%/yr | |
| Free cash flow | $721.9M2016 | $1.17B2025 | +5.5%/yr | |
| Free cash flow margin | 18.2%2016 | 17.7%2025 | −0.5 pts | |
| Operating cash flow / net income | 4.792016 | 1.782025 | −3.01 | |
| Stock-based compensation | $12.0M2016 | $35.6M2025 | +12.8%/yr | |
| Dividends paid | $80.4M2016 | $130.6M2025 | +5.5%/yr | |
| Share buybacks (net) | $105.6M2016 | $129.2M2025 | +2.3%/yr | |
| Capex / revenue | 0.4%2016 | 0.1%2025 | −0.3 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
THG cash flow by activity
THG net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
THG cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $662.5M | $426.0M | $35.3M | $116.0M | $418.7M | $358.7M | $425.1M | $391.0M | $186.2M | $155.1M |
| Depreciation & amortization | −$4.6M | $1.5M | $6.3M | $12.9M | $16.9M | $18.2M | $21.6M | $24.6M | $30.1M | $30.7M |
| Stock-based compensation | $35.6M | $31.0M | $31.1M | $29.0M | $22.9M | $20.1M | $17.4M | $13.4M | $12.3M | $12.0M |
| Change in working capital | $417.4M | $220.9M | $272.1M | $561.3M | $625.2M | $351.2M | $237.4M | $248.3M | $473.6M | $462.9M |
| Other non-cash items | $67.2M | $127.0M | $16.9M | $3.1M | −$260.0M | −$40.6M | −$98.6M | −$126.0M | $2.4M | $82.7M |
| Cash from operating activities | $1.18B | $806.4M | $361.7M | $722.3M | $823.7M | $707.6M | $602.9M | $551.3M | $704.6M | $743.4M |
| Investing activities | ||||||||||
| Capital expenditures | −$7.7M | −$10.2M | −$11.9M | −$17.8M | −$8.0M | −$14.9M | −$13.3M | −$13.1M | −$18.6M | −$15.7M |
| Investments (net) | −$658.5M | −$540.9M | −$228.5M | −$853.9M | −$548.3M | −$511.6M | −$251.4M | −$331.4M | −$506.3M | −$495.4M |
| Acquisitions & other investing | $0 | $9.6M | $11.9M | $364.1M | $96.1M | −$82.3M | −$47.2M | $615.8M | $18.6M | $15.7M |
| Cash from investing activities | −$666.2M | −$541.5M | −$228.5M | −$507.6M | −$460.2M | −$608.8M | −$311.9M | $271.3M | −$506.3M | −$495.4M |
| Financing activities | ||||||||||
| Dividends paid | −$130.6M | −$124.1M | −$117.2M | −$108.9M | −$102.2M | −$99.5M | −$386.2M | −$94.3M | −$86.8M | −$80.4M |
| Share repurchases & issuance (net) | −$129.2M | −$26.7M | $6.5M | −$30.8M | −$162.6M | −$212.8M | −$563.6M | −$57.7M | −$37.2M | −$105.6M |
| Net borrowing (repayment) | $433.2M | $0 | $0 | $0 | $0 | $120.6M | −$151.1M | −$11.6M | −$11.6M | −$104.7M |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other financing | $1.8M | $5.3M | −$11.4M | −$900,000 | $11.6M | −$2.2M | $1.6M | −$7.4M | $23.9M | −$10.1M |
| Cash from financing activities | $175.2M | −$145.5M | −$122.1M | −$140.6M | −$253.2M | −$193.9M | −$1.10B | −$171.0M | −$111.7M | −$300.8M |
| Summary | ||||||||||
| Net change in cash | $687.2M | $119.4M | $11.1M | $74.1M | $110.3M | −$95.1M | −$805.0M | $722.8M | $150.6M | −$56.2M |
| Cash at end of period | $1.12B | $435.5M | $316.1M | $305.0M | $230.9M | $120.6M | $215.7M | $1.02B | $297.9M | $282.6M |
| Free cash flow | $1.17B | $796.2M | $349.8M | $704.5M | $815.7M | $692.7M | $589.6M | $538.2M | $686.0M | $721.9M |
| Free cash flow margin | 17.7% | 12.8% | 5.9% | 13.0% | 15.8% | 14.4% | 12.1% | 12.1% | 16.1% | 18.2% |
| Capex / revenue | 0.1% | 0.2% | 0.2% | 0.3% | 0.2% | 0.3% | 0.3% | 0.3% | 0.4% | 0.4% |
| Operating cash flow / net income | 1.78 | 1.89 | 10.25 | 6.23 | 1.97 | 1.97 | 1.42 | 1.41 | 3.78 | 4.79 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $191.6M | $186.8M | $198.5M | $178.7M | $157.1M | $128.2M | $167.9M | $102.1M | $40.5M | $115.5M | $107.9M | $8.6M |
| Depreciation & amortization | −$1.0M | −$1.8M | −$1.3M | −$1.2M | −$1.0M | −$1.1M | −$600,000 | $500,000 | $800,000 | $800,000 | $800,000 | $1.5M |
| Stock-based compensation | $11.5M | $6.6M | −$27.8M | $10.0M | $11.2M | $6.6M | $7.5M | $8.7M | $8.1M | $6.7M | $7.2M | $8.6M |
| Change in working capital | $64.9M | −$75.7M | $151.2M | $2.4M | $75.9M | −$78.3M | $16.9M | $152.3M | $95.2M | −$43.5M | −$37.9M | $139.8M |
| Other non-cash items | −$54.7M | $2.9M | $57.6M | $364.5M | −$36.6M | −$16.5M | $21.8M | $131.1M | −$5.1M | −$20.8M | $14.7M | $66.2M |
| Cash from operating activities | $212.3M | $118.8M | $378.2M | $554.4M | $206.6M | $38.9M | $213.5M | $394.7M | $139.5M | $58.7M | $92.7M | $224.7M |
| Investing activities | ||||||||||||
| Capital expenditures | −$2.9M | −$3.5M | −$1.2M | −$3.0M | −$1.7M | −$1.8M | −$3.0M | −$2.4M | −$2.2M | −$2.6M | −$2.2M | −$2.9M |
| Investments (net) | −$103.3M | −$490.3M | −$22.4M | −$308.2M | −$222.1M | −$112.3M | −$150.1M | −$282.0M | −$34.0M | −$74.8M | −$42.1M | −$65.5M |
| Acquisitions & other investing | $0 | $0 | $2.0M | $2.7M | $1.5M | $2.3M | $2.8M | $5.9M | −$1.7M | $2.6M | $2.2M | $0 |
| Cash from investing activities | −$106.2M | −$493.8M | −$21.6M | −$308.5M | −$222.3M | −$111.8M | −$150.3M | −$278.5M | −$37.9M | −$74.8M | −$42.1M | −$68.4M |
| Financing activities | ||||||||||||
| Dividends paid | −$33.1M | −$33.5M | −$33.7M | −$32.2M | −$32.3M | −$32.4M | −$32.4M | −$30.6M | −$30.6M | −$30.5M | −$30.3M | −$29.0M |
| Share repurchases & issuance (net) | −$55.0M | −$86.9M | −$54.6M | −$36.0M | −$27.6M | −$11.0M | −$10.0M | $11.5M | $0 | $0 | $0 | $4.3M |
| Net borrowing (repayment) | $0 | −$375.0M | −$61.8M | $495.0M | $0 | $0 | — | — | — | — | — | — |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other financing | $5.0M | −$9.2M | $500,000 | $800,000 | $4.6M | −$4.1M | −$12.4M | −$7.6M | $2.0M | −$4.9M | $1.3M | −$4.7M |
| Cash from financing activities | −$83.1M | −$504.6M | −$149.6M | $427.6M | −$55.3M | −$47.5M | −$54.8M | −$26.7M | −$28.6M | −$35.4M | −$29.0M | −$29.4M |
| Summary | ||||||||||||
| Net change in cash | $22.6M | −$879.2M | $207.0M | $671.6M | −$71.0M | −$120.4M | $8.4M | $89.5M | $73.0M | −$51.5M | $21.6M | $126.9M |
| Cash at end of period | $266.1M | $243.5M | $1.12B | $915.7M | $244.1M | $315.1M | $435.5M | $427.1M | $337.6M | $264.6M | $316.1M | $294.5M |
| Free cash flow | $209.4M | $115.3M | $377.0M | $551.4M | $204.9M | $37.1M | $210.5M | $392.3M | $137.3M | $56.1M | $90.5M | $221.8M |
| Free cash flow margin | 12.1% | 6.8% | 22.5% | 33.3% | 12.4% | 2.3% | 13.3% | 25.1% | 8.9% | 3.6% | 5.9% | 14.6% |
| Capex / revenue | 0.2% | 0.2% | 0.1% | 0.2% | 0.1% | 0.1% | 0.2% | 0.2% | 0.1% | 0.2% | 0.1% | 0.2% |
| Operating cash flow / net income | 1.11 | 0.64 | 1.91 | 3.10 | 1.32 | 0.30 | 1.27 | 3.87 | 3.44 | 0.51 | 0.86 | 26.13 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
THG cash generation
In fiscal 2025 (ended December 31, 2025), Hanover Insurance generated $1.2 billion of cash from operations (up 46.1%) and spent $7.7 million on capital expenditures, leaving free cash flow of $1.2 billion, 17.7% of revenue. It returned $259.8 million to shareholders through dividends ($130.6 million) and net share buybacks ($129.2 million). Cash and equivalents rose by $687.2 million over the year.
Related: THG income statement, THG balance sheet, THG dividend history. See the THG stock overview for the latest quote and news.
THG cash flow FAQ
What is Hanover Insurance's free cash flow?
Hanover Insurance's free cash flow was $1.2 billion in fiscal 2025: $1.2 billion of operating cash flow minus $7.7 million of capital expenditures It was $796.2 million a year earlier..
How much cash does Hanover Insurance generate from operations?
Hanover Insurance generated $1.2 billion of cash from operating activities in fiscal 2025, 1.78 times its net income of $662.5 million.
How much does Hanover Insurance spend on capital expenditures?
Hanover Insurance spent $7.7 million on capital expenditures in fiscal 2025, 0.1% of revenue, compared with $10.2 million the year before.
How much stock does Hanover Insurance buy back?
Hanover Insurance spent $129.2 million on net share repurchases in fiscal 2025.
How much does Hanover Insurance pay in dividends?
Hanover Insurance paid $130.6 million in dividends in fiscal 2025, 11.2% of free cash flow.