The Hanover Insurance Group (THG) Q4 2025 earnings summary

Executive summary

• Achieved record net and operating income per share for both Q4 and full-year 2025, with Q4 net income per share at $5.47 and full-year at $18.16; operating ROE reached 23.1% in Q4 and 20.1% for the year, driven by disciplined execution and strategic investments.

• Net premiums written grew 3.0% in Q4 and 3.9% for the year, with strong renewal price increases and robust engagement across all business lines.

• Delivered one of the best fourth quarters in company history, with strong profitability and stable retention across segments.

Financial highlights

• Q4 combined ratio was 89.0%, with operating ROE of 23.1%; full-year combined ratio improved to 91.6%, with catastrophe losses below historical averages.

• Net investment income rose 24.9% in Q4 and 22% for the year, reaching $454.4 million.

• Book value per share increased 27.4% in 2025 to $100.90; excluding unrealized depreciation, book value rose 15.3% to $104.21.

• Quarterly dividend raised by 5.6% to $0.95/share, marking 21 consecutive years of increases.

Outlook and guidance

• 2026 net premiums written expected to grow mid-single digits; expense ratio targeted at 30.3%; combined ratio (ex-CAT) expected at 88–89%, with a CAT load of 6.5%.

• Net investment income growth projected in mid- to upper-single digits for 2026.

• Management confident in sustaining strong performance and delivering attractive returns, supported by a resilient, diversified portfolio.