The Hanover Insurance Group (THG) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter net income of $191.6 million ($5.38 per diluted share) and operating income of $189.2 million ($5.31 per diluted share), with net and operating ROE of 21.2% and 19.8% for the quarter, reflecting strong execution and disciplined underwriting.

• Net written premium growth accelerated to 4.6% year-over-year, led by Core Commercial and Specialty, with strong renewal price increases across all segments.

• Strategic actions over several years have strengthened the portfolio, enhanced risk selection, and improved operational efficiency.

• CEO transition announced: John C. Roche to retire at year-end, with Dick Lavey named CEO-Elect.

• Favorable prior year reserve development and lower catastrophe losses contributed to improved results, especially in Personal Lines.

Financial highlights

• Combined ratio improved to 91.2%, a 1.3-point year-over-year improvement; ex-CAT combined ratio was 85.5%.

• Net premiums written for Q2 2026 reached $1,656.8 million, up 4.6% year-over-year; Core Commercial up 7.2%, Specialty up 4.4%, Personal Lines up 2.6%.

• Net investment income increased 13.4% year-over-year to $119.6 million, driven by higher reinvestment yields and asset growth.

• Book value per share rose 3.5% sequentially to $105.40; excluding unrealized depreciation, $111.26, up 3.8%.

• Share repurchases totaled $149 million year-to-date, with $55 million in Q2 and a new $700 million repurchase authorization.

Outlook and guidance

• Entering the second half of 2026 with confidence in sustaining positive momentum and strong earnings, supported by disciplined capital allocation.

• Combined ratio guidance not updated, but results are running better than original expectations.

• Third quarter CAT load expected at 6.9%.

• Strategic outlook and updated long-term financial targets to be presented in September.

• Management expects to continue generating sufficient positive operating cash to meet all obligations.