THG FY 2023 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2023 Earnings

Reported February 22, 2024

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2023	Prior Q	FY 2022	QoQ Change	YoY Change
Revenue	$6.0B	—	$5.4B	—	9.8%
Op. Income	$41M	—	$144M	—	-71.5%
Gross Margin	10.9%	—	13.2%	—	-2.2pp
Net Margin	0.6%	—	2.1%	—	-1.5pp
EPS (Diluted)	$0.98	—	$3.21	—	-69.5%
Free Cash Flow	$350M	—	$705M	—	-50.3%

Revenue Flow

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$5.3B
GROSS PROFIT	$653M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$612M
Operating Expenses	$612M
Cost & Expenses	$5.9B
OPERATING INCOME	$41M
Interest Income	$0
Interest Expense	$34M
Other Income/Expenses	$0
INCOME BEFORE TAX	$41M
Income Tax Expense	$8M
Net Income from Continuing Ops	$34M
Net Income from Discontinued Ops	$2M
Other Adjustments	$0
NET INCOME	$35M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$35M
D&A	$6M
EBIT	$75M
EBITDA	$82M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$5.3B
GROSS PROFIT	$653M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$612M
Operating Expenses	$612M
Cost & Expenses	$5.9B
OPERATING INCOME	$41M
Interest Income	$0
Interest Expense	$34M
Other Income/Expenses	$0
INCOME BEFORE TAX	$41M
Income Tax Expense	$8M
Net Income from Continuing Ops	$34M
Net Income from Discontinued Ops	$2M
Other Adjustments	$0
NET INCOME	$35M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$35M
D&A	$6M
EBIT	$75M
EBITDA	$82M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$35M
Depreciation & Amortization	$6M
Stock-Based Compensation	$31M
Deferred Income Tax	-$25M
Other Non-Cash Items	$42M
Change in Working Capital	$272M
OPERATING CASH FLOW	$362M
Capital Expenditure	-$12M
Acquisitions (Net)	$0
Purchases of Investments	-$1.1B
Sales/Maturities of Investments	$914M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$229M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$117M
Other Financing Activities	-$5M
NET CASH FROM FINANCING	-$122M
FREE CASH FLOW	$350M
Net Change in Cash	$11M

Balance Sheet

Item	Amount
Cash & Equivalents	$316M
Short-Term Investments	$8.0B
Net Receivables	$3.8B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$12.1B
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$621M
Long-Term Investments	$928M
Tax Assets	$173M
Other Non-Current Assets	$591M
TOTAL NON-CURRENT ASSETS	$2.5B
TOTAL ASSETS	$14.6B
Account Payables	$64M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$5.3B
TOTAL CURRENT LIABILITIES	$6.1B
Long-Term Debt	$783M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$11.4B
TOTAL NON-CURRENT LIABILITIES	$12.1B
TOTAL LIABILITIES	$12.1B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.9B
Treasury Stock	-$1.9B
Accum. Other Comp. Income	-$517M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.5B
Minority Interest	$0
TOTAL EQUITY	$2.5B
TOTAL LIABILITIES & EQUITY	$14.6B
Total Debt	$783M
Net Debt	$467M