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The Hanover Insurance Group THG Personal Lines — Prior Year Favorable Catastrophe Development

Other segment segments

Core Commercial Lines
-$21.7M-155%
Specialty Lines
-$5.8M-132%
All Other Segments
$0

Similar metrics at other companies

Allstate logo
ALLOther Personal Lines — Prior years
-$54M-202%
Cincinnati Financial logo
CINFOther Personal Lines — Prior accident years
$9M
Cincinnati Financial logo
CINFProperty and Casualty Insurance — Prior accident years
$967M+20.0%
The Hartford Financial Services Group logo
HIGProperty, Liability and Casualty Insurance Product Line — Prior accident year development [1]
-$41M+66.4%
Allstate logo
ALLProperty and casualty — Prior years
-$1B-300%
Arch Capital Group logo
ACGLProperty other than property catastrophe — Prior years
-$72M

Other financials

Income statement

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Revenue$1.7B+6.1%
Operating income$250.2M+34.2%
Net income$186.8M+45.7%
EPS (diluted)$5.20+48.6%

Balance sheet

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Cash & equivalents$243.5M-22.7%
Total debt$843.8M+7.6%
Total equity$3.6B+17.3%
Total assets$16.5B+6.8%

Cash flow

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Operating cash flow$118.8M+205%
CapEx$3.5M+94.4%
Free cash flow$115.3M+211%

Valuation

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Market cap$6.92B-2.7%
Enterprise value$7.53B-0.6%
P/E9.6×-6.6×
P/S-0.1×

Profitability

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Operating margin13.4%
Net margin10.8%+3.8pp
FCF margin18.7%+6.3pp

Returns & leverage

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Return on equity21.8%+6.0pp
Debt / equity0.2×0.0×

Where this comes from

Reported directly by The Hanover Insurance Group in its filing.

Tagged under the XBRL concept thg:PriorYearFavorableCatastropheDevelopment.

The official record: The Hanover Insurance Group’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is The Hanover Insurance Group's personal lines — prior year favorable catastrophe development?
The Hanover Insurance Group (THG) reported personal lines — prior year favorable catastrophe development of -$21.3M in Q1 2026.
How has The Hanover Insurance Group's personal lines — prior year favorable catastrophe development changed year-over-year?
The Hanover Insurance Group's personal lines — prior year favorable catastrophe development decreased by 2030.0% year-over-year, from -$1M to -$21.3M.
What does personal lines — prior year favorable catastrophe development mean?
This reflects the reduction in estimated liabilities for catastrophe claims that occurred in prior years. It indicates that the actual costs of past catastrophic events were lower than the initial reserves set aside. This metric provides insight into the company's historical reserving accuracy for high-severity events.