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

Higher catastrophe losses weighed on quarterly results despite improved underwriting excluding catastrophes and increased investment income.

Rhea-AI Summary

The Hanover Insurance Group (THG) reported third-quarter 2026 net income of $172.6 million, below the prior-year quarter. Diluted earnings were $4.86 versus $4.90. Non-GAAP operating income was $183.1 million versus $185.6 million, while operating earnings per diluted share rose to $5.15 from $5.09.

Net premiums written increased 3.1% to $1,792.5 million. The combined ratio, measuring claims and expenses against premiums, worsened to 92.3% from 91.1%; excluding catastrophes, it improved to 85.5% from 88.1%. Catastrophe losses reached $109.7 million. Specialty and Personal Lines increased pretax operating income, while Core Commercial declined.

Net investment income rose 12.7% to $131.9 million. Book value per share fell 5.4% from June 30 to $99.69. Hanover repurchased approximately $86 million of stock during the quarter; repurchases totaled $263 million year-to-date through October 26.

31 points · 0 major

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0 major · 15 points

How the balance works

Positive

• Moderate pointThird-quarter net premiums written increased 3.1% to $1,792.5 million year over year.
• Moderate pointThird-quarter combined ratio excluding catastrophes improved to 85.5% from 88.1% a year earlier.
• Moderate pointThird-quarter net investment income increased 12.7% to $131.9 million year over year.
• Moderate pointQuarterly stock repurchases were approximately $86 million; year-to-date repurchases through October 26 totaled $263 million. 1% of market cap
• Moderate pointCore Commercial third-quarter premiums written rose 4.6% to $648.9 million; small commercial grew 2.8%, middle market 6.7%.
• Moderate pointSpecialty third-quarter pretax operating income increased to $88.1 million from $78.2 million a year earlier.
• Moderate pointSpecialty third-quarter net premiums written increased 3.3% to $391.6 million year over year.
• Moderate pointPersonal Lines third-quarter current accident year combined ratio excluding catastrophes improved to 81.9% from 85.8%.
• Moderate pointPersonal Lines third-quarter renewal pricing increased 8.7%, including average rate increases of 4.9%.
• Moderate pointNine-month net income increased to $551.0 million, or $15.43 per diluted share, from $464.0 million, or $12.70.
• Moderate pointNine-month operating income increased to $560.8 million, or $15.70 per diluted share, from $486.1 million, or $13.31.
• Moderate pointNine-month net premiums written increased 3.6% to $5,009.0 million year over year.

19 minor points

• Minor pointThird-quarter operating earnings per diluted share rose to $5.15 from $5.09 a year earlier.
• Minor pointThird-quarter current accident year claims-and-adjustment expense ratio excluding catastrophes improved 1.9 points to 55.7% year over year.
• Minor pointThird-quarter expense ratio decreased to 30.9% from 31.3% a year earlier.
• Minor pointThird-quarter investment portfolio pretax earned yield increased to 4.60% from 4.31% a year earlier.
• Minor pointThird-quarter fixed-maturity pretax earned yield increased to 4.58% from 4.33% a year earlier.
• Minor pointBook value excluding after-tax unrealized fixed-maturity depreciation increased 2.7% from June 30, 2026.
• Minor pointCore Commercial third-quarter renewal pricing increased 7.4%, including average rate increases of 6.1%.
• Minor pointCore Commercial third-quarter current accident year combined ratio excluding catastrophes improved to 93.2% from 94.3%.
• Minor pointCore Commercial third-quarter expense ratio decreased 1.0 point to 32.7% year over year.
• Minor pointCore Commercial third-quarter favorable prior-year reserves excluding catastrophes were $3.0 million, versus $1.2 million a year earlier.
• Minor pointSpecialty third-quarter combined ratio improved to 84.0% from 84.9% a year earlier.
• Minor pointSpecialty third-quarter current accident year combined ratio excluding catastrophes improved to 84.6% from 86.0%.
• Minor pointSpecialty third-quarter current accident year claims-and-adjustment expense ratio excluding catastrophes decreased 1.1 points to 47.7%.
• Minor pointSpecialty third-quarter favorable prior-year reserves excluding catastrophes increased to $14.8 million from $10.0 million.
• Minor pointSpecialty third-quarter renewal pricing increased 4.3%, including average rate increases of 1.9%.
• Minor pointPersonal Lines third-quarter pretax operating income increased to $103.6 million from $101.1 million a year earlier.
• Minor pointPersonal Lines third-quarter current accident year claims-and-adjustment expense ratio excluding catastrophes decreased 3.8 points to 56.0%.
• Minor pointPersonal Lines third-quarter net premiums written increased 1.7% to $752.0 million year over year.
• Minor pointNine-month combined ratio improved to 91.8% from 92.6% a year earlier.

Negative

• Moderate pointThird-quarter catastrophe losses totaled $109.7 million; their combined-ratio contribution increased to 6.8 points from 3.0. 1.3% of market cap
• Moderate pointThird-quarter combined ratio worsened to 92.3% from 91.1% a year earlier.
• Moderate pointThird-quarter claims-and-adjustment expense ratio increased 1.6 points to 61.4% year over year.
• Moderate pointCore Commercial third-quarter pretax operating income declined to $55.5 million from $65.1 million a year earlier.
• Moderate pointCore Commercial third-quarter combined ratio worsened to 100.5% from 97.3% a year earlier.
• Moderate pointCore Commercial third-quarter catastrophe losses increased to $45.3 million from $17.8 million a year earlier.
• Moderate pointPersonal Lines third-quarter catastrophe losses increased to $52.0 million from $22.4 million a year earlier.
• Moderate pointFixed-maturity pretax unrealized losses increased to $636.1 million at September 30 from $259.5 million at June 30.
• Moderate pointBook value per share decreased 5.4% to $99.69 from June 30, 2026.

6 minor points

• Minor pointThird-quarter net income declined to $172.6 million, or $4.86 per diluted share, from $178.7 million, or $4.90.
• Minor pointThird-quarter operating income declined to $183.1 million from $185.6 million a year earlier.
• Minor pointSpecialty third-quarter catastrophe losses increased to $12.4 million from $6.0 million a year earlier.
• Minor pointPersonal Lines third-quarter combined ratio worsened to 89.7% from 89.2% a year earlier.
• Minor pointThird-quarter investment losses recognized in earnings increased to $14.1 million from $9.0 million a year earlier.
• Minor pointNine-month Personal Lines expense ratio increased to 26.0% from 25.4% a year earlier.

News Explained

The company reports $546 million of remaining capacity under its share-repurchase authorization; that is room for additional buybacks, not a report that this amount has been spent.

Key Figures

Net income: $172.6 million Net income per diluted share: $4.86 Operating income: $183.1 million +5 more

Net income

$172.6 million

Third quarter 2026; compared with $178.7 million in the prior-year quarter

Net income per diluted share

$4.86

Third quarter 2026; compared with $4.90 in the prior-year quarter

Operating income

$183.1 million

Third quarter 2026; compared with $185.6 million in the prior-year quarter

Operating income per diluted share

$5.15

Third quarter 2026; compared with $5.09 in the prior-year quarter

Combined ratio

92.3%

Third quarter 2026; compared with 91.1% in the prior-year quarter

Combined ratio excluding catastrophes

85.5%

Third quarter 2026; compared with 88.1% in the prior-year quarter

Net premiums written growth

3.1%

Third quarter 2026 versus the prior-year quarter

Net investment income

$131.9 million; up 12.7%

Third quarter 2026 versus the prior-year quarter

Previous Earnings Reports

1 past event · Latest: Jul 28

Same Type 1 event

1. Jul 28

   2Q26 earnings

   24h Move

   +3.6%

   Prior quarter reported record operating income and diluted-share earnings with 4.6% premium growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

combined ratio, loss and loss adjustment expense (lae), prior-year reserve development, net unrealized depreciation

4 terms

combined ratio financial

"Combined ratio of 92.3%"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

loss and loss adjustment expense (lae) financial

"Loss and loss adjustment expense (LAE) ratio of 61.4%"

Loss and loss adjustment expense (LAE) is the combined amount an insurer expects to pay for claims (the losses) plus the costs of investigating, adjusting, defending and settling those claims (the loss adjustment expenses). Losses are the amounts payable to claimants for covered events; LAE includes both allocated expenses that can be tied to specific claims (for example legal fees or independent adjuster costs) and unallocated expenses that support claims handling in general (for example salaries of claims department staff). Insurers record LAE as part of their claims reserves on the balance sheet and update it as claims are reported, developed, or closed.

prior-year reserve development financial

"net favorable prior-year reserve development, excluding catastrophes"

An adjustment to an insurance company’s past estimates for money set aside to pay claims, showing whether earlier reserve amounts were too high or too low. It matters to investors because favorable or unfavorable changes reveal how well the insurer judged its past liabilities — like discovering your grocery budget was off after shopping — and can materially change reported profits and the company’s financial strength.

net unrealized depreciation financial

"excluding net unrealized depreciation on fixed maturity investments, net of tax"

Net unrealized depreciation is the total amount by which the current market value of an investment portfolio falls short of what was originally paid, after offsetting any unrealized gains. Think of it like a garage of items bought for a set price that, if appraised today, would be worth less — the shortfall shows potential paper losses that would become real if the holdings were sold, and it matters to investors because it affects reported net asset value, future tax consequences, and how much cushion a fund has against further market drops.

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Third Quarter Highlights

• 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.

"In the third quarter, we continued to translate strategic clarity, disciplined execution and the breadth of our diversified franchise into exceptional performance," said 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. Our business mix continues to support strong performance and stable renewal pricing. 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," added Roche. "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. 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."

"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," said 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. 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. As we discussed at our September Investor Day, profitability, earnings growth and capital allocation priorities continue to guide our decisions. With substantial financial flexibility, we remain well-positioned to invest in the business, return capital to shareholders and capture attractive opportunities as they emerge."

Third Quarter 2026 Highlights

		Three months ended								Nine months ended
		September 30								September 30
($ in millions, except per share data)		2026				2025				2026				2025
Net premiums written	$	1,792.5			$	1,738.9			$	5,009.0			$	4,833.5
Growth		3.1	%			4.5	%			3.6	%			4.2	%
Net premiums earned	$	1,611.5			$	1,550.7			$	4,779.7			$	4,604.5
Current accident year loss and LAE ratio,   excluding catastrophes		55.7	%			57.6	%			56.0	%			57.4	%
Prior-year development ratio		(1.1)	%			(0.8)	%			(1.4)	%			(1.1)	%
Catastrophe ratio		6.8	%			3.0	%			6.3	%			5.4	%
Expense ratio(7)		30.9	%			31.3	%			30.9	%			30.9	%
Combined ratio		92.3	%			91.1	%			91.8	%			92.6	%
Combined ratio, excluding catastrophes		85.5	%			88.1	%			85.5	%			87.2	%
Current accident year combined ratio,   excluding catastrophes		86.6	%			88.9	%			86.9	%			88.3	%
Net income	$	172.6			$	178.7			$	551.0			$	464.0
per diluted share		4.86				4.90				15.43				12.70
Operating income		183.1				185.6				560.8				486.1
per diluted share		5.15				5.09				15.70				13.31
Book value per share	$	99.69			$	96.00			$	99.69			$	96.00
Ending shares outstanding (in millions)		34.5				35.7				34.5				35.7

(1) See information about this and other non-GAAP measures and definitions, including Operating Income and Operating Return on Equity in the headline, used throughout this press release on the final pages of this document.

*Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year.

The Hanover Insurance Group, Inc. may also be referred to as "The Hanover" or "the company" interchangeably throughout this press release.

Third Quarter Operating Highlights

Core Commercial

Core Commercial operating income before income taxes was $55.5 million in the third quarter of 2026, compared to $65.1 million in the third quarter of 2025. The Core Commercial combined ratio was 100.5%, compared to 97.3% in the prior-year quarter. Catastrophe losses in the third quarter of 2026 were $45.3 million, or 7.8 points of the combined ratio. This compared to catastrophe losses of $17.8 million, or 3.2 points, in the prior-year quarter.

Third quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $3.0 million, or 0.5 points, compared to $1.2 million, or 0.2 points, in the third quarter of 2025.

Core Commercial current accident year combined ratio, excluding catastrophes, decreased 1.1 points, to 93.2% in the third quarter of 2026, compared to 94.3% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, was 60.5%, approximating the prior-year quarter, as the company continues to prudently set loss ratio selections in liability coverages.

The expense ratio decreased by 1.0 point, to 32.7%, in the third quarter of 2026, compared to the prior-year quarter, reflecting fixed cost leverage and efficiency gains.

Net premiums written were $648.9 million in the third quarter of 2026, up 4.6% from the prior-year quarter, reflecting growth of 2.8% in small commercial and 6.7% in middle market. Core Commercial renewal price increases averaged 7.4%, including average rate increases of 6.1%.

The following table summarizes premiums and the components of the combined ratio for Core Commercial:

		Three months ended								Nine months ended
		September 30								September 30
($ in millions)		2026				2025				2026				2025
Net premiums written	$	648.9			$	620.3			$	1,854.1			$	1,760.9
Growth		4.6	%			3.5	%			5.3	%			3.9	%
Net premiums earned		582.2				554.2				1,725.3				1,649.5
Operating income before taxes		55.5				65.1				207.8				175.8
Loss and LAE ratio		67.8	%			63.6	%			65.0	%			64.5	%
Expense ratio		32.7	%			33.7	%			32.7	%			33.3	%
Combined ratio		100.5	%			97.3	%			97.7	%			97.8	%
Prior-year development ratio		(0.5)	%			(0.2)	%			(0.3)	%			(0.3)	%
Catastrophe ratio		7.8	%			3.2	%			5.9	%			5.2	%
Combined ratio, excluding catastrophes		92.7	%			94.1	%			91.8	%			92.6	%
Current accident year combined ratio,   excluding catastrophes		93.2	%			94.3	%			92.1	%			92.9	%

Specialty

Specialty operating income before income taxes was $88.1 million in the third quarter of 2026, compared to $78.2 million in the third quarter of 2025. The Specialty combined ratio was 84.0%, compared to 84.9% in the prior-year quarter. Catastrophe losses in the third quarter of 2026 were $12.4 million, or 3.4 points of the combined ratio. This compared to catastrophe losses of $6.0 million, or 1.7 points, in the prior-year quarter.

Third quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $14.8 million, or 4.0 points, with widespread favorability. Net favorable prior-year reserve development, excluding catastrophes, was $10.0 million, or 2.8 points, in the third quarter of 2025.

Specialty current accident year combined ratio, excluding catastrophes, decreased 1.4 points, to 84.6% in the third quarter of 2026, from 86.0% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, of 47.7% in the third quarter of 2026 decreased 1.1 points compared to the prior-year quarter and was favorable to the company's long-term expectations for the segment, driven by lower-than-expected property losses.

Net premiums written were $391.6 million in the third quarter of 2026, up 3.3% from the prior-year quarter. Specialty renewal price increases averaged 4.3%, including average rate increases of 1.9%.

The following table summarizes premiums and the components of the combined ratio for Specialty:

		Three months ended								Nine months ended
		September 30								September 30
($ in millions)		2026				2025				2026				2025
Net premiums written	$	391.6			$	379.2			$	1,142.7			$	1,105.7
Growth		3.3	%			8.3	%			3.3	%			6.1	%
Net premiums earned		369.5				353.9				1,095.2				1,049.4
Operating income before taxes		88.1				78.2				240.5				214.0
Loss and LAE ratio		47.1	%			47.7	%			48.8	%			49.3	%
Expense ratio		36.9	%			37.2	%			36.8	%			37.0	%
Combined ratio		84.0	%			84.9	%			85.6	%			86.3	%
Prior-year development ratio		(4.0)	%			(2.8)	%			(3.6)	%			(3.7)	%
Catastrophe ratio		3.4	%			1.7	%			2.9	%			3.4	%
Combined ratio, excluding catastrophes		80.6	%			83.2	%			82.7	%			82.9	%
Current accident year combined ratio,   excluding catastrophes		84.6	%			86.0	%			86.3	%			86.6	%

Personal Lines

Personal Lines operating income before income taxes was $103.6 million in the third quarter of 2026, compared to $101.1 million in the third quarter of 2025. The Personal Lines combined ratio was 89.7%, compared to 89.2% in the prior-year quarter. Catastrophe losses in the third quarter of 2026 were $52.0 million, or 7.9 points of the combined ratio. This compared to catastrophe losses of $22.4 million, or 3.5 points of the combined ratio, in the prior-year quarter.

Third quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $0.7 million, or 0.1 points, compared to $0.9 million, or 0.1 points, in the third quarter of 2025.

Personal Lines current accident year combined ratio, excluding catastrophe losses, decreased 3.9 points, to 81.9%, in the third quarter of 2026, from 85.8% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, decreased 3.8 points from the prior-year quarter, to 56.0%, driven by the continued benefit of earned pricing outpacing loss trends, as well as benign property claims frequency.

Net premiums written were $752.0 million in the third quarter of 2026, up 1.7% compared to the prior-year quarter. The increase was primarily due to the impact of renewal price increases and higher new business. Personal Lines renewal price increases averaged 8.7%, including average rate increases of 4.9%. Policies in force (PIF) in the third quarter of 2026 were essentially flat compared to the second quarter of 2026.

The following table summarizes premiums and components of the combined ratio for Personal Lines:

		Three months ended								Nine months ended
		September 30								September 30
($ in millions)		2026				2025				2026				2025
Net premiums written	$	752.0			$	739.4			$	2,012.2			$	1,966.9
Growth		1.7	%			3.6	%			2.3	%			3.4	%
Net premiums earned		659.8				642.6				1,959.2				1,905.6
Operating income before taxes		103.6				101.1				297.7				252.7
Loss and LAE ratio		63.8	%			63.2	%			64.0	%			66.0	%
Expense ratio		25.9	%			26.0	%			26.0	%			25.4	%
Combined ratio		89.7	%			89.2	%			90.0	%			91.4	%
Prior-year development ratio		(0.1)	%			(0.1)	%			(1.0)	%			(0.3)	%
Catastrophe ratio		7.9	%			3.5	%			8.5	%			6.7	%
Combined ratio, excluding catastrophes		81.8	%			85.7	%			81.5	%			84.7	%
Current accident year combined ratio,   excluding catastrophes		81.9	%			85.8	%			82.5	%			85.0	%

Investments 

Net investment income was $131.9 million in the third quarter of 2026, an increase of 12.7% from the prior-year quarter, primarily due to the continued investment of cashflows from operations, the impact of higher earned yields on the fixed maturity investment portfolio, and higher investment income from limited partnerships. Total pre-tax earned yield on the investment portfolio for the third quarter of 2026 was 4.60%, up from 4.31% in the prior-year quarter. The average pre-tax earned yield on fixed maturities was 4.58% for the third quarter of 2026, up from 4.33% in the prior-year quarter. 

Net realized and unrealized investment losses recognized in earnings were $14.1 million in the third quarter of 2026, compared to $9.0 million in the third quarter of 2025.

The company held $11.2 billion in cash and invested assets at September 30, 2026. Fixed maturities and cash represented approximately 93% of the investment portfolio. Approximately 95% of the company's fixed maturity portfolio is rated investment grade. As of September 30, 2026, net unrealized losses on the fixed maturity portfolio were $636.1 million before income taxes, compared to $259.5 million at June 30, 2026.

Shareholders' Equity and Capital Actions

At September 30, 2026, book value per share was $99.69, down 5.4% from June 30, 2026, as strong earnings were more than offset by an increase in the unrealized loss position on the fixed maturity portfolio, share repurchases and the ordinary quarterly cash dividends. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax, was $114.26 at September 30, 2026, up 2.7% from June 30, 2026, after the impact of share repurchases and the ordinary quarterly cash dividends.

At September 30, 2026, operating insurance company's statutory capital and surplus was $3.70 billion, compared to $3.54 billion at June 30, 2026.

The company repurchased approximately 386,000 shares of common stock in the third quarter of 2026, totaling approximately $86 million. Year-to-date through October 26th, the company has repurchased approximately 1,334,000 shares, totaling approximately $263 million. The company has approximately $546 million of remaining capacity under its existing share repurchase authorization.

Earnings Conference Call

The company will host a conference call to discuss its third quarter results on Thursday, October 29, at 10:00 a.m. E.T.  A presentation will accompany the prepared remarks and has been posted on The Hanover's website.  Interested investors and others can listen to the call and access the presentation through The Hanover's website, located in the "Investors" section at www.hanover.com. Investors may access the conference call by dialing 1-844-413-3975 in the U.S. and 1-412-317-5458 internationally. Webcast participants should go to the website 15 minutes early to register, download and install any necessary audio software. A re-broadcast of the conference call will be available on The Hanover's website approximately two hours after the call.

About The Hanover

The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.

Contact Information

Investors: Oksana Lukasheva olukasheva@hanover.com 1-508-525-6081

Media: Emily P. Trevallion etrevallion@hanover.com 1-508-855-3263

Definition of Segments

Continuing operations include four reporting segments: Core Commercial, Specialty, Personal Lines and Other. The Core Commercial segment includes commercial multiple peril, commercial automobile, workers' compensation and other core commercial lines coverages provided to small and mid-sized businesses. The Specialty segment includes four divisions of business: marine and industrial property, professional and executive lines (such as management and professional liability), E&S and alternative markets, and surety and other. E&S and alternative markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses), and specialty general liability coverage. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Other segment primarily includes the operations of the holding company, and run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools business, and run-off product liability business.

Financial Supplement

The Hanover's third quarter news release and financial supplement are available in the "Investors" section of the company's website at hanover.com.

The Hanover Insurance Group, Inc.
Consolidated Statements of Income			Three months ended				Nine months ended
			September 30				September 30
($ in millions)			2026		2025		2026		2025
Revenues
Premiums earned		$	1,611.5	$	1,550.7	$	4,779.7	$	4,604.5
Net investment income			131.9		117.0		378.4		328.6
Net realized and unrealized investment gains (losses):
Net realized losses from sales and other			(8.3)		(20.3)		(18.6)		(43.7)
Net change in fair value of equity securities and other			(6.0)		11.4		9.1		17.4
Recoveries (impairments) on investments:
Credit-related			1.7		-		(1.3)		(2.5)
Intent to sell securities			(1.5)		(0.1)		(2.8)		(0.5)
Total recoveries (impairments) on investments			0.2		(0.1)		(4.1)		(3.0)
Total net realized and unrealized investment losses			(14.1)		(9.0)		(13.6)		(29.3)
Fees and other income			6.2		6.3		18.6		18.8
Total revenues			1,735.5		1,665.0		5,163.1		4,922.6
Losses and expenses
Losses and loss adjustment expenses			989.7		927.1		2,909.8		2,839.6
Amortization of deferred acquisition costs			344.1		324.9		1,015.3		957.8
Interest expense			10.0		11.6		30.9		28.7
Other operating expenses			171.4		174.3		505.1		510.5
Total losses and expenses			1,515.2		1,437.9		4,461.1		4,336.6
Income before income taxes			220.3		227.1		702.0		586.0
Income tax expense			48.0		48.5		151.5		122.3
Income from continuing operations			172.3		178.6		550.5		463.7
Discontinued operations (net of taxes):
Income from discontinued life businesses			0.3		0.1		0.5		0.3
Net income		$	172.6	$	178.7	$	551.0	$	464.0

 

The Hanover Insurance Group, Inc.
Condensed Consolidated Balance Sheets
			September 30			December 31
($ in millions)			2026			2025
Assets
Total investments		$	10,671.4		$	10,382.7
Cash and cash equivalents			506.3			1,122.7
Premiums and accounts receivable, net			1,998.9			1,861.3
Reinsurance recoverable on paid and unpaid losses and unearned premiums			2,170.9			2,011.1
Other assets			1,616.7			1,484.5
Assets of discontinued businesses			79.5			83.6
Total assets		$	17,043.7		$	16,945.9
Liabilities
Loss and loss adjustment expense reserves		$	8,219.9		$	7,755.2
Unearned premiums			3,645.1			3,440.4
Short-term debt			50.1			375.0
Long-term debt			794.1			843.3
Other liabilities			792.6			851.9
Liabilities of discontinued businesses			100.4			108.6
Total liabilities			13,602.2			13,374.4
Total shareholders' equity			3,441.5			3,571.5
Total liabilities and shareholders' equity		$	17,043.7		$	16,945.9

The following is a reconciliation from operating income to income from continuing operations and net income⁽⁵⁾⁽⁸⁾:

The Hanover Insurance Group, Inc.
			Three months ended September 30												Nine months ended September 30
			2026						2025						2026						2025
($ in millions, except per share data)		$ Amount			Per Share (Diluted)			$ Amount			Per Share (Diluted)			$ Amount			Per Share (Diluted)			$ Amount			Per Share (Diluted)
Operating income
Core Commercial		$	55.5					$	65.1					$	207.8					$	175.8
Specialty			88.1						78.2						240.5						214.0
Personal Lines			103.6						101.1						297.7						252.7
Other			(2.8)						3.3						0.5						1.5
Total			244.4						247.7						746.5						644.0
Interest expense			(10.0)						(11.6)						(30.9)						(28.7)
Operating income before income taxes			234.4		$	6.60			236.1		$	6.48			715.6		$	20.04			615.3		$	16.84
Income tax expense on operating income			(51.3)			(1.45)			(50.5)			(1.39)			(154.8)			(4.34)			(129.2)			(3.53)
Operating income after income taxes			183.1			5.15			185.6			5.09			560.8			15.70			486.1			13.31
Non-operating items:
Net realized losses from sales and other			(8.3)			(0.23)			(20.3)			(0.56)			(18.6)			(0.52)			(43.7)			(1.20)
Net change in fair value of equity securities and other			(6.0)			(0.17)			11.4			0.31			9.1			0.25			17.4			0.48
Recoveries (impairments) on investments:
Credit-related			1.7			0.05			-			-			(1.3)			(0.04)			(2.5)			(0.07)
Intent to sell securities			(1.5)			(0.04)			(0.1)			-			(2.8)			(0.08)			(0.5)			(0.01)
Total recoveries (impairments) on investments			0.2			0.01			(0.1)			-			(4.1)			(0.12)			(3.0)			(0.08)
Income tax benefit on non-operating items			3.3			0.09			2.0			0.06			3.3			0.10			6.9			0.19
Income from continuing operations, net of taxes			172.3			4.85			178.6			4.90			550.5			15.41			463.7			12.70
Discontinued operations (net of taxes):
Income from discontinued life businesses			0.3			0.01			0.1			-			0.5			0.02			0.3			-
Net income		$	172.6		$	4.86		$	178.7		$	4.90		$	551.0		$	15.43		$	464.0		$	12.70
Dilutive weighted average shares outstanding						35.5						36.4						35.7						36.5
Basic weighted average shares outstanding						34.8						35.8						35.0						35.9

Forward-Looking Statements and Non-GAAP Financial Measures 

Forward-Looking Statements
Certain statements in this document may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may address, among other things, expectations regarding our growth, technology investments, profitability, capital allocation and certain statements regarding our performance for the remainder of 2026 and beyond, as well as our expectations, intentions and other statements that are not historical facts. Words such as: "believes," "anticipates," "expects," "intends," "may," "projects," "plan," "likely," "potential," "targeted," "forecasts," "should," "could," "continue," and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated. Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made and should understand the risks and uncertainties inherent in or particular to the company's business. Some of the factors that could cause actual results to differ include, but are not limited to: changes in the demand for our products; risks and uncertainties related to our growth and operating strategies, including our ability to attract, grow and retain profitable policies in force, to increase rates commensurate with, or in excess of, loss trends, and to manage expenses and execute strategic initiatives effectively; adverse claims experience or changes in our estimates of loss and loss adjustment expense reserves, including those arising from catastrophes, inflationary pressures or global unrest, which may result in lower current year underwriting results or adverse loss development, and which could negatively impact our carried reserves; uncertainties with respect to the long-term profitability of our products, including with respect to newer products, or longer-tail products covering casualty losses; disruption in our distribution channels, including the loss or disruption of our independent agency channel, and the impact of competition and consolidation in the industry and among agents and brokers; changes in frequency and loss severity trends, exacerbated by fluctuations in economic conditions; changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, policy terms and conditions, the use of artificial intelligence and other technologies, privacy and data security, payment flexibility, and regions where we have geographical concentration; volatile and unpredictable developments, including severe weather (whether arising from changing climate conditions or weather patterns, or otherwise) and other natural physical events, catastrophes, pandemics, civil unrest, war, global conflicts, and terrorist actions, and the uncertainty in estimating the resulting losses; and, other risks, uncertainties and factors discussed in the company's most recently filed quarterly report on Form 10-Q and its 2025 Annual Report filed on Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference. The company does not undertake the responsibility to update or revise such forward-looking statements, except as required by law.  

Non-GAAP Financial Measures
As discussed on page 39 of the company's Annual Report on Form 10-K for the year ended December 31, 2025, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating income per diluted share, and components of the combined ratio, both excluding and/or including catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company's operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2025 Annual Report on pages 61-64.

Operating income and operating income per diluted share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company's four reporting segments, "operating income" is the segment income before both interest expense and income taxes. The company also uses "operating income per diluted share" (which is after both interest expense and income taxes). Operating income per share is calculated by dividing operating income by the weighted average number of diluted shares of common stock. Operating loss per share is calculated by dividing operating loss by the weighted average number of basic shares of common stock due to antidilution. The company believes that metrics of operating income and operating income in relation to its four reporting segments provide investors with a valuable measure of the performance of the company's continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or prior-year reserve development. These non-GAAP measures should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income to income from continuing operations and net income for the relevant periods is included on page 9 of this news release and in the Financial Supplement.

Operating return on equity (ROE) is a non-GAAP measure. See end note (6) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders' equity of the entire company and without adjustments.

Book value per share is total shareholders' equity divided by the number of common shares outstanding. Book value per share excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure and is total shareholders' equity excluding the after-tax effect of unrealized appreciation (depreciation) on fixed maturities and market risk divided by the number of common shares outstanding.

The company may provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events including, but is not limited to, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, riots, and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others.

Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company's estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense (LAE) ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as "current accident year loss ratios." The company believes a discussion of loss and combined ratios excluding prior accident year reserve development is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates.

The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP.

Endnotes
(1)	Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings "Forward-Looking Statements" and "Non-GAAP Financial Measures." The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP combined ratio to the combined ratio, excluding catastrophes, and to the current accident year combined ratio, excluding catastrophes, is shown below.

			Three months ended
			September 30, 2026
			Core Commercial			Specialty			Personal Lines			Total
	Total combined ratio (GAAP)		100.5	%		84.0	%		89.7	%		92.3	%
	Less: Catastrophe ratio		7.8	%		3.4	%		7.9	%		6.8	%
	Combined ratio, excluding catastrophe losses (non-GAAP)		92.7	%		80.6	%		81.8	%		85.5	%
	Less: Prior-year reserve development ratio		(0.5)	%		(4.0)	%		(0.1)	%		(1.1)	%
	Current accident year combined ratio, excluding      catastrophe losses (non-GAAP)		93.2	%		84.6	%		81.9	%		86.6	%
			September 30, 2025
	Total combined ratio (GAAP)		97.3	%		84.9	%		89.2	%		91.1	%
	Less: Catastrophe ratio		3.2	%		1.7	%		3.5	%		3.0	%
	Combined ratio, excluding catastrophe losses (non-GAAP)		94.1	%		83.2	%		85.7	%		88.1	%
	Less: Prior-year reserve development ratio		(0.2)	%		(2.8)	%		(0.1)	%		(0.8)	%
	Current accident year combined ratio, excluding      catastrophe losses (non-GAAP)		94.3	%		86.0	%		85.8	%		88.9	%
			Nine months ended
			September 30, 2026
			Core Commercial			Specialty			Personal Lines			Total
	Total combined ratio (GAAP)		97.7	%		85.6	%		90.0	%		91.8	%
	Less: Catastrophe ratio		5.9	%		2.9	%		8.5	%		6.3	%
	Combined ratio, excluding catastrophe losses (non-GAAP)		91.8	%		82.7	%		81.5	%		85.5	%
	Less: Prior-year reserve development ratio		(0.3)	%		(3.6)	%		(1.0)	%		(1.4)	%
	Current accident year combined ratio, excluding      catastrophe losses (non-GAAP)		92.1	%		86.3	%		82.5	%		86.9	%
			September 30, 2025
	Total combined ratio (GAAP)		97.8	%		86.3	%		91.4	%		92.6	%
	Less: Catastrophe ratio		5.2	%		3.4	%		6.7	%		5.4	%
	Combined ratio, excluding catastrophe losses (non-GAAP)		92.6	%		82.9	%		84.7	%		87.2	%
	Less: Prior-year reserve development ratio		(0.3)	%		(3.7)	%		(0.3)	%		(1.1)	%
	Current accident year combined ratio, excluding      catastrophe losses (non-GAAP)		92.9	%		86.6	%		85.0	%		88.3	%

(2)	Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. Rate increases in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. Renewal price change in Personal Lines represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms. Rate change in Personal Lines is the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed. Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.
(3)	Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. The following is a reconciliation of the GAAP loss ratio to the current accident year loss ratio, excluding catastrophe losses.

			Three months ended
			September 30, 2026
			Core Commercial			Specialty			Personal Lines			Total
	Total loss and LAE ratio		67.8	%		47.1	%		63.8	%		61.4	%
	Less:
	Prior-year reserve development ratio		(0.5)	%		(4.0)	%		(0.1)	%		(1.1)	%
	Catastrophe ratio		7.8	%		3.4	%		7.9	%		6.8	%
	Current accident year loss and LAE ratio, excluding catastrophes		60.5	%		47.7	%		56.0	%		55.7	%
			September 30, 2025
	Total loss and LAE ratio		63.6	%		47.7	%		63.2	%		59.8	%
	Less:
	Prior-year reserve development ratio		(0.2)	%		(2.8)	%		(0.1)	%		(0.8)	%
	Catastrophe ratio		3.2	%		1.7	%		3.5	%		3.0	%
	Current accident year loss and LAE ratio, excluding catastrophes		60.6	%		48.8	%		59.8	%		57.6	%
			Nine months ended
			September 30, 2026
			Core Commercial			Specialty			Personal Lines			Total
	Total loss and LAE ratio		65.0	%		48.8	%		64.0	%		60.9	%
	Less:
	Prior-year reserve development ratio		(0.3)	%		(3.6)	%		(1.0)	%		(1.4)	%
	Catastrophe ratio		5.9	%		2.9	%		8.5	%		6.3	%
	Current accident year loss and LAE ratio, excluding catastrophes		59.4	%		49.5	%		56.5	%		56.0	%
			September 30, 2025
	Total loss and LAE ratio		64.5	%		49.3	%		66.0	%		61.7	%
	Less:
	Prior-year reserve development ratio		(0.3)	%		(3.7)	%		(0.3)	%		(1.1)	%
	Catastrophe ratio		5.2	%		3.4	%		6.7	%		5.4	%
	Current accident year loss and LAE ratio, excluding catastrophes		59.6	%		49.6	%		59.6	%		57.4	%

(4)	Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below.

			Period ended
				June 30		September 30
				2026		2026
	Book value per share			$105.40		$99.69
	Less: Net unrealized appreciation (depreciation) on fixed   maturity investments, net of tax, per share			(5.86)		(14.57)
	Book value per share, excluding net unrealized appreciation   (depreciation) on fixed maturity investments, net of tax			$111.26		$114.26
	Versus prior quarter
	Change in book value per share					(5.4) %
	Change in book value per share, excluding net unrealized   appreciation (depreciation) on fixed maturity investments, net of tax					2.7 %

(5)	Operating income and operating income per diluted share are non-GAAP measures. Operating income before income taxes, as referenced in the results of the reporting segments, is defined as, with respect to such segment, operating income before interest expense and income taxes. The reconciliation of operating income and operating income per diluted share to the closest GAAP measures, income from continuing operations and income from continuing operations per diluted share, respectively, and to net income and net income per diluted share, respectively, is provided on the preceding pages of this news release.
(6)	Operating return on equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see under the heading in this news release "Non-GAAP Financial Measures" and end note (5)), by average shareholders' equity, excluding unrealized appreciation (depreciation) on fixed maturity investments, net of tax, for the period presented. Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is also a non-GAAP measure. Total shareholders' equity is the most directly comparable GAAP measure and is reconciled in the following table. For the calculation of operating ROE, the average of beginning and ending shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is used for the period as shown and reconciled in the following table.

		Period Ended
	($ in millions)		December 31			March 31			June 30		September 30
			2025			2026			2026		2026
	Total shareholders' equity (GAAP)	$	3,571.5		$	3,570.4		$	3,672.5	$	3,441.5
	Less: net unrealized appreciation (depreciation)      on fixed maturity investments, net of tax		(117.1)			(185.0)			(204.1)		(502.9)
	Total shareholders' equity, excluding net      unrealized appreciation (depreciation)      on fixed maturity investments, net of tax	$	3,688.6		$	3,755.4		$	3,876.6	$	3,944.4
	Quarter Averages
	Average shareholders' equity (GAAP)									$	3,557.0
	Average shareholders' equity, excluding net      unrealized appreciation (depreciation) on      fixed maturity investments, net of tax									$	3,910.5
	Year-to-date Averages
	Average shareholders' equity (GAAP)									$	3,564.0
	Average shareholders' equity, excluding net      unrealized appreciation (depreciation) on      fixed maturity investments, net of tax									$	3,816.3

 

	($ in millions)		Three months ended				Nine months ended
			September 30				September 30
	Net Income ROE		2026				2026
	Net income (GAAP)		$	172.6			$	551.0
	Annualized net income*			690.4				734.7
	Average shareholders' equity (GAAP)		$	3,557.0			$	3,564.0
	Return on equity			19.4	%			20.6	%
	Operating Income ROE (non-GAAP)
	Operating income after taxes		$	183.1			$	560.8
	Annualized operating income, net of tax*			732.4				747.7
	Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax		$	3,910.5			$	3,816.3
	Operating return on equity			18.7	%			19.6	%

*For three months ended September 30, 2026, annualized net income and operating income after taxes is calculated by multiplying three months ended net income and operating income after taxes, respectively, by 4. For nine months ended September 30, 2026, annualized net income and operating income after taxes is calculated by dividing nine months ended net income and operating income after taxes, respectively, by 3 and multiplying by 4.
(7)	Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation.
(8)	The separate financial information of each reporting segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned reporting segments without consideration of interest expense on debt and on a pre-tax basis.

 

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SOURCE The Hanover Insurance Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Hanover THG's third-quarter 2026 earnings?

Hanover earned $172.6 million, or $4.86 per diluted share, compared with $178.7 million, or $4.90 per diluted share, a year earlier. Non-GAAP operating income was $183.1 million, or $5.15 per diluted share, versus $185.6 million, or $5.09 per diluted share.

How did catastrophe losses affect Hanover's third-quarter 2026 underwriting results?

Catastrophe losses totaled $109.7 million, contributing 6.8 points to the combined ratio versus 3.0 points a year earlier. The overall combined ratio worsened to 92.3% from 91.1%, while the ratio excluding catastrophes improved to 85.5% from 88.1%.

What was the composition of Hanover's investment portfolio at September 30, 2026?

Hanover held $11.2 billion in cash and invested assets, with fixed maturities and cash representing approximately 93% of the investment portfolio. Approximately 95% of the fixed-maturity portfolio was rated investment grade.

What returns on equity did Hanover report for third-quarter 2026?

Hanover reported third-quarter net return on equity of 19.4% and non-GAAP operating return on equity of 18.7%. For the first nine months of 2026, those measures were 20.6% and 19.6%, respectively.