Hanover Insurance Group Inc · NYSE:THG
Hanover Insurance — The Hanover Insurance Group — Q3 2026 Earnings Presentation
20 slides from Hanover Insurance's earnings presentation, Oct 28, 2026
Slide 1: Third Quarter 2026 Results
Third Quarter 2026 Results October 28, 2026 To be read in conjunction with the press release dated October 28, 2026, and conference call scheduled for October 29, 2026. Please also see important information regarding forward-looking statements and additional risks and uncertainties at the end of thi
Slide 2: Excellent Third Quarter 2026 Operating Results
Excellent Third Quarter 2026 Operating Results • Net and operating income(1) per diluted share of $4.86 and $5.15, respectively • Net and operating return on equity(2) of 19.4% and 18.7%, respectively • Combined ratio of 92.3%; combined ratio, excluding catastrophes(3), of 85.5% • Catastrophe losses
Slide 3: Consolidated Financial Results
Consolidated Financial Results Three months ended Nine months ended ($ in millions, except per share amounts) September 30, September 30, September 30, September 30, 2025 2026 2025 2026 Net income $178.7 $172.6 $464.0 $551.0 Per diluted share $4.90 $4.86 $12.70 $15.43 Operating income before interes
Slide 4: Third Quarter 2026 Underwriting Results
Third Quarter 2026 Underwriting Results ($ in millions) Net premiums written and growth • Combined ratio (CR) of 92.3%, compared to 91.1% in the prior-year quarter ↑ 4.5% ↑ 3.1% ↑ 4.6% • Catastrophe losses of $109.7 million, or 6.8%, ↑ 3.0% ↑ 3.2% net of 0.7 points of favorable prior-year CAT develo
Slide 5: Core Commercial Underwriting Highlights
Core Commercial Underwriting Highlights Three months ended Nine months ended September 30 September 30 • Combined ratio, ex-CAT, of 92.7%, ($ in millions) 2025 2026 2025 2026 improved 1.4 points from the prior-year Net premiums written $620.3 $648.9 $1,760.9 $1,854.1 quarter Growth 3.5% 4.6% 3.9% 5.
Slide 6: Core Commercial Growth Highlights
Core Commercial Growth Highlights ($ in millions) Net premiums written and growth $648.9 • Net premiums written increased 4.6% in $620.3 ↑ 4.6% the third quarter, including growth of 2.8% in small commercial and 6.7% in middle $286.8 $306.1 market: • Retention was very strong at 86.3%, improving seq
Slide 7: Specialty Underwriting Highlights
Specialty Underwriting Highlights Three months ended Nine months ended September 30 September 30 ($ in millions) 2025 2026 2025 2026 • Combined ratio, ex-CAT, of 80.6%, Net premiums written $379.2 $391.6 $1,105.7 $1,142.7 Growth 8.3% 3.3% 6.1% 3.3% improved 2.6 points from the prior-year Net premium
Slide 8: Specialty Growth Highlights
Specialty Growth Highlights ($ in millions) Net premiums written and growth $379.2 ↑ 3.3% $391.6 $27.7 $30.1 • Net premiums written increased 3.3% in $86.3 $83.6 the third quarter: • Delivered strong growth across a $120.0 $130.9 number of lines, including in surety, E&S, management and professional
Slide 9: Personal Lines Underwriting Highlights
Personal Lines Underwriting Highlights Three months ended Nine months ended • Combined ratio, ex-CAT, of 81.8%, improved September 30 September 30 3.9 points from the prior-year quarter ($ in millions) 2025 2026 2025 2026 Net premiums written $739.4 $752.0 $1,966.9 $2,012.2 • Current accident year l
Slide 10: Personal Lines Growth Highlights
Personal Lines Growth Highlights ($ in millions) Net premiums written and growth ↑1.7% • Net premiums written growth of 1.7% in the third quarter, moderating from the $739.4 $752.0 second quarter: • The company continues to intentionally shift towards the higher-value customer 3Q25 3Q26 segment ($50
Slide 11: Net Investment Income Trends
Net Investment Income Trends ($ in millions) Net investment income* $131.9 $125.8 $126.9 $119.6 $117.0 $12.7 • Net investment income of $131.9 million in the $19.4 $17.7 $5.2 $13.7 third quarter, up 12.7% from the prior-year quarter, reflecting the continued investment of cashflows, higher earned yi
Slide 12: Investment Portfolio – Total Invested Assets and Cash of $11.2 Billion
Investment Portfolio – Total Invested Assets and Cash of $11.2 Billion As of September 30, 2026 High-quality, well-diversified investment portfolio Fixed maturities: $9.8 billion • High-quality, well-laddered fixed Municipals U.S. Government 4% income portfolio (taxable) 9% CMBS 6% Limited • 95% of
Slide 13: About The Hanover
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 ind
Slide 14: Forward-Looking Statements
Forward-Looking Statements This document and statements by management contains certain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may address, among other things, our expected growth and growth strategy; expected develo
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 inc
Slide 16: End notes
End notes (1) Operating income and operating income per diluted share 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
Slide 17: End notes continued
End notes continued (2) 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 end note (1)), by average shareholders’ equity, excluding unrealized appreciation (depreciation) on f
Slide 18: End notes continued
End notes continued (3) Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reco
Slide 19: End notes continued
End notes continued (4) 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 risk
Slide 20: End notes continued
End notes continued (6) 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 September 30 June
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