THGMEDIUM SIGNALFINANCIAL10-K

THG reported meaningfully stronger underwriting results in 2025, with net premiums written growing to approximately $6.3 billion (+3.9%) alongside substantially higher operating income and net income year-over-year.

The improvement across all three business segments — Core Commercial ($2.27B in net premiums written), Specialty ($1.44B), and Personal Lines ($2.61B) — suggests broad-based pricing and volume gains rather than isolated wins. Notably, management updated its risk language to highlight litigation trends and social inflation while removing references to supply chain disruptions, signaling a shift in the perceived threat landscape that investors should monitor for potential future reserve pressure. The balance sheet also strengthened considerably, with stockholders' equity expanding 25.7% to $3.6B and total assets growing to $16.9B, though total debt rose modestly by 16.8% to $843.3M.

Comparing 2026-02-20 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

THG's financial profile improved meaningfully across the board in fiscal 2025. Operating income grew 43.5% to $933.0M and net income reached $662.5M — substantially higher than the prior year — while operating cash flow expanded 46.1% to approximately $1.2B, reflecting strong underlying earnings conversion. On the balance sheet, stockholders' equity grew 25.7% to $3.6B and total assets increased 10.9% to $16.9B, while capital expenditures declined modestly to $7.7M from $10.2M, collectively painting a picture of a well-capitalized insurer generating robust free cash flow with disciplined capital allocation.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+55.5%
$426.0M→$662.5M

Net income grew 55.5% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
+46.1%
$806.4M→$1.2B

Operating cash flow surged 46.1% — exceptional cash generation, highest quality earnings signal.

Operating Income
P&L
+43.5%
$650.1M→$933.0M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Stockholders Equity
Balance Sheet
+25.7%
$2.8B→$3.6B

Equity base grew 25.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Capital Expenditure
Cash Flow
-24.5%
$10.2M→$7.7M

Capex reduced 24.5% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Debt
Balance Sheet
+16.8%
$722.3M→$843.3M

Debt rose 16.8% — additional borrowing for investment or operations; monitor coverage ratios.

Total Assets
Balance Sheet
+10.9%
$15.3B→$16.9B

Asset base grew 10.9% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-24
ADDED
In 2025, we generated approximately $6.3 billion in net premiums written, an increase of 3.9% from the prior year.
Pressure from litigation trends, legal system abuse, and general and social inflation in the U.S.
Net Premiums YEAR ENDED DECEMBER 31, 2025 Written % of Total (in millions, except ratios) Commercial multiple peril $ 1,159.2 51.0 % Commercial automobile 427.3 18.8 Workers' compensation 418.7 18.4 Other core commercial 268.5 11.8 Total $ 2,273.7 100.0 % We divide Core Commercial into two businesses, small commercial and middle market, both of which focus on account business.
We continued to grow our most profitable industry segments, such as technology, human services and educational institutions, taking a measured approach in more challenging segments.
Net Premiums YEAR ENDED DECEMBER 31, 2025 Written % of Total (in millions, except ratios) Professional and Executive Lines $ 461.9 32.0 % Marine 458.2 31.8 Specialty Property Casualty 420.8 29.2 Surety and Other 100.6 7.0 Total $ 1,441.5 100.0 % Specialty offers a comprehensive suite of products focused predominately on small to mid-sized businesses.
Net Premiums YEAR ENDED DECEMBER 31, 2025 Written % of Total (in millions, except ratios) Personal automobile $ 1,489.9 57.2 % Homeowners and Other 1,117.0 42.8 Total $ 2,606.9 100.0 % Personal Lines coverages include: Personal automobile coverage insures individuals against losses incurred from personal bodily injury, bodily injury to third parties, property damage to an insured s vehicle, and property damage to other vehicles and other property.
Other The Other segment primarily includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits related to employees and agents of our former life insurance subsidiaries; and our run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools, and run-off product liability business.
During 2025, we wrote 18.7% of our Core Commercial, Specialty and Personal Lines business in Michigan and 8.0% in Massachusetts.
We are licensed to sell property and casualty insurance in all fifty states in the U.S., as well as in the District of Columbia and the Commonwealth of Puerto Rico.
Throughout the U.S., we actively market Core Commercial and Specialty policies in 44 states and the District of Columbia, and Personal Lines policies in 19 states.
REMOVED
In 2024, we generated approximately $6.1 billion in net premiums written, an increase of 4.7% from the prior year.
Pressure from litigation trends, supply chain disruptions and inflation in the U.S.
Net Premiums YEAR ENDED DECEMBER 31, 2024 Written % of Total (in millions, except ratios) Commercial multiple peril $ 1,117.4 50.9 % Workers compensation 422.0 19.2 Commercial automobile 398.2 18.1 Other core commercial 257.9 11.8 Total $ 2,195.5 100.0 % We divide Core Commercial into two businesses, small commercial and middle market, both of which focus on account business.
We continued to grow our most profitable industry segments, including technology, human services and manufacturing, taking a measured approach in more challenging segments.
Net Premiums YEAR ENDED DECEMBER 31, 2024 Written % of Total (in millions, except ratios) Professional and Executive Lines $ 440.3 32.0 % Marine 426.9 31.1 Specialty Property Casualty 421.3 30.7 Surety and Other 85.4 6.2 Total $ 1,373.9 100.0 % Specialty offers a comprehensive suite of products focused predominately on small to mid-sized businesses.
Personal Lines Our Personal Lines segment generated $2.6 billion, or 40.6%, of consolidated operating revenues and $2.5 billion, or 41.3%, of net premiums written, for the year ended December 31, 2024.
Other The Other segment includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits due to our former life insurance employees and agents; our run-off voluntary assumed property and casualty pools and run-off direct asbestos and environmental, and product liability businesses.
Also included in the Other segment during the first half of 2024 and prior were the operations of Opus Investment Management, Inc.
( Opus ), which provided investment management services to THG, as well as institutions, pension funds, and other organizations.
During the second and third quarters of 2024, we exited all of Opus business operations serving unaffiliated entities.
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