The Hanover Insurance Group (THG) Investor Day 2026 summary

Strategic direction, vision, and leadership transition

• New CEO-elect outlines a vision focused on scaling with resiliency and durability, emphasizing a distinctive market position built on national capabilities, agency intimacy, and a diversified, profitable portfolio targeting small to mid-size commercial and complex personal lines customers.

• Pursuing a strategy focused on scaling with resilience and durability, emphasizing portfolio diversification and technology-driven operating models to enhance earnings stability and growth through 2031.

• Targeting customer segments where expertise and advice matter, with a focus on smaller-size business and bundled accounts to fuel resiliency.

• Leadership highlights a strong, collaborative, people-centric culture and high employee engagement as foundational to sustained performance and execution.

• Leveraging innovative operating models, AI integration, and strong agency partnerships to drive speed, efficiency, and value creation across the insurance value chain.

Financial targets and performance

• New five-year targets include mid to high teens ROE, 7% annual net written premium growth, and 10% annual EPS and book value per share growth through 2031.

• Achieved ~14% operating ROE over the last 12-18 months ending Q2 2026, with a long-term target of mid-to-high teens through 2031.

• Net premiums written (NPW) grew at a 7% CAGR from 2021 to 2026, with a new target of ~7% annual growth through 2031.

• Operating EPS and book value per share (ex-unrealized) targeted to grow 10%+ annually through 2031.

• Specialty and Small Commercial are expected to drive the majority of growth, with all segments contributing to a balanced earnings mix.

Business model transformation, technology, and operational excellence

• Operating model transformation is centered on embedding AI and automation across underwriting, claims, and service, with measurable improvements in efficiency, productivity, and decision quality.

• AI and digital transformation have reduced underwriting turnaround time by up to 60%, increased quote-to-bind ratios, and improved claims adjuster productivity.

• Proprietary Agency Insight platform deepens agency relationships, drives growth roadmaps, and enhances data-driven decision-making.

• Claims transformation has delivered significant loss adjustment expense savings, improved indemnity outcomes, and a unified claims platform for scalable value creation.

• Digital pay adoption and predictive analytics have enhanced customer experience, reduced payment inquiries, and improved claims outcomes.