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The Hanover Insurance Group THG Michigan Catastrophic Claims Association — Reinsurance Recoverables

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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:ReinsuranceRecoverables.

The source filing: The Hanover Insurance Group’s 10-K, filed February 20, 2026.

Filed
Feb 20, 2026, 1:43 PM EST
Fiscal year
FY2025
Accession
0001193125-26-060983

During 2025, the Company ceded premiums earned and losses and LAE incurred of $29.7 million and $35.2 million, respectively, and $39.2 million and $60.0 million, respectively, in 2024, to the MCCA. In 2023, the Company ceded $32.9 million and $72.8 million, respectively, of premiums earned and losses and LAE incurred, to the MCCA. The MCCA represented 41.2% of the total reinsurance receivable balance at December 31, 2025. Reinsurance recoverables related to the MCCA were $829.2 million and $870.4 million at December 31, 2025 and 2024, respectively. Since the MCCA is supported by assessments permitted by statute, and there have been no significant uncollectible balances from the MCCA identified during the three years ending December 31, 2025, the Company believes it has no significant exposure to uncollectible reinsurance balances from this entity.

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FAQ

What is The Hanover Insurance Group's michigan catastrophic claims association — reinsurance recoverables?
The Hanover Insurance Group (THG) reported michigan catastrophic claims association — reinsurance recoverables of $829.2M in Q4 2025.
How has The Hanover Insurance Group's michigan catastrophic claims association — reinsurance recoverables changed year-over-year?
The Hanover Insurance Group's michigan catastrophic claims association — reinsurance recoverables decreased by 4.7% year-over-year, from $870.4M to $829.2M.
What does michigan catastrophic claims association — reinsurance recoverables mean?
This metric represents the total amount of claims and benefits that the company expects to recover from reinsurers under the Michigan Catastrophic Claims Association framework. It functions as an asset on the balance sheet, reflecting the credit risk and collectability of reinsurance contracts. Investors use this to assess the company's reliance on reinsurance partners to settle large-scale claims.

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