Hanover Insurance Net Income Rises to $191.6 Million
The insurer's combined ratio improved to 91.2% from 92.5% in the prior-year quarter.
Hanover Insurance Group (THG) reported net income of $191.6 million, or $5.38 per diluted share, for the second quarter of 2026.
The insurance provider saw an acceleration in growth and a strengthening of its overall underwriting margin, though performance diverged across its primary business segments.
Net income rose from $157.1 million in the prior-year quarter. Operating income for the period was $189.2 million, or $5.31 per diluted share, compared to $158.7 million, or $4.35 per diluted share, in the same period last year. Net premiums written grew 4.6% year-over-year, accelerating from a 3.2% growth rate in the first quarter of 2026.
Personal Lines drove a significant portion of the underwriting improvement, with its combined ratio falling to 88.9% from 95.5% in the prior-year quarter. This result was supported by a 4.2 point decrease in the current accident year loss and LAE ratio, excluding catastrophes, which fell to 55.6%. Renewal price increases in the segment rose to 8.7% from 8.4% in the first quarter.
Other segments faced headwinds. The Core Commercial combined ratio deteriorated to 95.7% from 93.0% in the prior-year quarter, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.2 points to 58.7%. The Specialty combined ratio also increased to 88.3% from 86.5% in the prior-year quarter. Despite these pressures, Core Commercial net premiums written grew 7.2% year-over-year, up from 6.0% in the first quarter.
Net investment income rose 13.4% year-over-year to $119.6 million, although the figure declined sequentially from $126.9 million in the first quarter. Book value per share increased 3.5% from March 31 to $105.40 as of June 30.
The company repurchased approximately 291,000 shares for $55 million during the quarter, bringing year-to-date repurchases to 827,000 shares for $149 million.
Chief Executive Officer John C. Roche announced he plans to retire at the end of 2026, with Dick Lavey positioned to succeed him.