The Hanover Reports Excellent Third Quarter Net Income and Operating Income of $4.86 and $5.15 per Diluted Share, Respectively; Third Quarter Net and Operating Return on Equity of 19.4% and 18.7%, Respectively
Key Highlights
- ➤Operating income $5.15 per diluted share, up from $5.09 year-over-year
- ➤Combined ratio 92.3%; catastrophe losses totaled $109.7 million
- ➤Net investment income $131.9 million, up 12.7% year-over-year
- ➤Specialty operating income rose to $88.1 million; combined ratio improved to 84.0%
- ➤Share repurchases totaled approximately $86 million in the quarter
Expert Statements
John C. Roche, President and chief executive officer at The Hanover
“In the third quarter, we continued to translate strategic clarity, disciplined execution and the breadth of our diversified franchise into exceptional performance.”
John C. Roche, President and chief executive officer at The Hanover
“With operating return on equity of 18.7% and record third quarter operating earnings per share of $5.15, our results reflect excellent underwriting execution and the benefits of our past portfolio actions.”
John C. Roche, President and chief executive officer at The Hanover
“Our business mix continues to support strong performance and stable renewal pricing.”
John C. Roche, President and chief executive officer at The Hanover
“A differentiated Specialty business, a preferred Personal Lines franchise, and a leading position with the top-performing agents in Core Commercial continue to provide avenues for profitable growth across market conditions, while we remain patient where conditions warrant greater selectivity”
John C. Roche, President and chief executive officer at The Hanover
“At the same time, we continue to invest in technology, AI and other capabilities that are delivering meaningful business impact and strengthening our future position.”
John C. Roche, President and chief executive officer at The Hanover
“We are confident in our outlook, and our goal of long-term profitability and value creation will continue to guide every underwriting and growth decision we make.”
Jeffrey M. Farber, Executive vice president and chief financial officer at The Hanover
“We are very pleased with our third quarter performance highlighted by nearly two points of improvement in our current accident year ex-catastrophe loss ratio, favorable reserve development, continued growth in net investment income, and the strength of our capital position.”
Jeffrey M. Farber, Executive vice president and chief financial officer at The Hanover
“Net investment income increased 12.7%, driven by higher earned yields, strong cash flows and increased partnership income.”
Jeffrey M. Farber, Executive vice president and chief financial officer at The Hanover
“The consistent capital generation of our business enabled us to repurchase approximately $86 million of stock during the quarter, totaling $263 million year-to-date through October 26th.”
Jeffrey M. Farber, Executive vice president and chief financial officer at The Hanover
“As we discussed at our September Investor Day, profitability, earnings growth and capital allocation priorities continue to guide our decisions.”
Jeffrey M. Farber, Executive vice president and chief financial officer at The Hanover
“With substantial financial flexibility, we remain well-positioned to invest in the business, return capital to shareholders and capture attractive opportunities as they emerge.”
The Hanover Reports Excellent Third Quarter Net Income and Operating Income of $4.86 and $5.15 per Diluted Share, Respectively; Third Quarter Net and Operating Return on Equity of 19.4% and 18.7%, Respectively PR Newswire
* Combined ratio of 92.3%; combined ratio, excluding catastrophes((1)), of 85.5% * Catastrophe losses of $109.7 million, or 6.8 points of the combined ratio * Net premiums written increase of 3.1%* * Renewal price increases((2)) of 8.7% in Personal Lines, 7.4% in Core Commercial and 4.3% in Specialty * Rate increases((2)) of 6.1% in Core Commercial, 4.9% in Personal Lines and 1.9% in Specialty * Loss and loss adjustment expense (LAE) ratio of 61.4%, 1.6 points higher than the prior-year quarter, driven by higher catastrophe losses * Current accident year loss and LAE ratio, excluding catastrophes((3)), of 55.7%, 1.9 points below the prior-year quarter * Net investment income of $131.9 million, up 12.7% from the prior-year quarter * Book value per share of $99.69, down 5.4% from June 30, 2026; excluding net unrealized depreciation on fixed maturity investments, net of tax((4)), book value per share increased 2.7% WORCESTER, Mass., Oct. 28, 2026 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $172.6 million, or $4.86 per diluted share, in the third quarter of 2026, compared to $178.7 million, or $4.90 per diluted share, in the prior-year quarter. Operating income((5)) was $183.1 million, or $5.15 per diluted share, in the third quarter of 2026, compared to $185.6 million, or $5.09 per diluted share, in the prior-year quarter. The company reported net and operating return on equity((6)) of 19.4% and 18.7%, respectively, in the third quarter of 2026, and 20.6% and 19.6% in the first nine months of 2026, respectively.
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