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The Hanover Insurance Group THG Deferred Policy Acquisition Costs, Amortization Expense

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Other financials

Income statement

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Revenue$1.7B+4.3%
Operating income$251.9M+20.0%
Net income$191.6M+22.0%
EPS (diluted)$5.38+25.1%

Balance sheet

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Cash & equivalents$266.1M+9.0%
Total debt$844.0M+7.6%
Total equity$3.7B+14.2%
Total assets$16.9B+7.2%

Cash flow

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Operating cash flow$212.3M+2.8%
CapEx$2.9M+70.6%
Free cash flow$209.4M+2.2%

Valuation

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Market cap$7.98B+28.5%
Enterprise value$8.56B+26.8%
P/E10.6×-0.6×
P/S1.2×+0.2×

Profitability

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Operating margin14.2%
Net margin11.2%+2.5pp
FCF margin18.5%+5.3pp

Returns & leverage

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Return on equity21.9%+2.7pp
Debt / equity0.2×0.0×

Where this comes from

Reported directly by The Hanover Insurance Group in its filing.

Tagged under the XBRL concept us-gaap:DeferredPolicyAcquisitionCostAmortizationExpense.

The source filing: The Hanover Insurance Group’s 10-Q, filed July 29, 2026.

Filed
Jul 29, 2026, 5:02 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000944695-26-000014
(In millions, except per share data)Three Months Ended / June 30, 2026Three Months Ended / June 30, 2025Six Months Ended / June 30, 2026Six Months Ended / June 30, 2025
Total revenues1,726.21,654.43,427.63,257.6
Losses and expenses
Losses and loss adjustment expenses962.5957.21,920.11,912.5
Amortization of deferred acquisition costs338.0319.0671.2632.9
Interest expense10.18.620.917.1
Other operating expenses171.0170.8333.7336.2
Total losses and expenses1,481.61,455.62,945.92,898.7
Income from continuing operations before income taxes244.6198.8481.7358.9

ITEM 1 - FINANCIAL STATEMENTS

FAQ

What is The Hanover Insurance Group's deferred policy acquisition costs, amortization expense?
The Hanover Insurance Group (THG) reported deferred policy acquisition costs, amortization expense of $338M in Q2 2026.
How has The Hanover Insurance Group's deferred policy acquisition costs, amortization expense changed year-over-year?
The Hanover Insurance Group's deferred policy acquisition costs, amortization expense increased by 6.0% year-over-year, from $319M to $338M.
What is the long-term trend for The Hanover Insurance Group's deferred policy acquisition costs, amortization expense?
Over 4 years (2021 to 2025), The Hanover Insurance Group's deferred policy acquisition costs, amortization expense has grown at a 6.9% compound annual growth rate (CAGR), from $982.7M to $1.29B.
What does deferred policy acquisition costs, amortization expense mean?
This reflects the systematic recognition of costs directly associated with acquiring new insurance policies, such as commissions and underwriting expenses, over the life of the policy. It aligns the timing of acquisition expenses with the recognition of related premium revenue. Monitoring this helps investors understand the underlying profitability of new business production and the efficiency of the distribution network.

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