The Hanover Insurance Group stock posts strong Q3 underwriting result
Published on 11/03/2026 at 01:55 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSEarnings highlight underwriting strength
- The Hanover reported record third-quarter operating earnings per diluted share and an 18.7% operating return on equity.
- Catastrophe losses pressured the reported combined ratio, but the ratio excluding catastrophes improved from the prior-year quarter.
- Net investment income increased, while the insurer repurchased approximately 386,000 shares during the quarter.
The Hanover Insurance Group reported stronger underlying underwriting performance for the third quarter of 2026, while catastrophe losses weighed on reported earnings. In a company release published by PR Newswire on Wednesday, October 28, the insurer reported operating income of 5.15 US dollars per diluted share for the quarter ended September 30.
Underlying insurance performance improves
Net income was 172.6 million US dollars, or 4.86 US dollars per diluted share, compared with 178.7 million US dollars, or 4.90 US dollars per share, in the prior-year quarter. Operating income, a non-GAAP measure that excludes specified investment and other items, rose on a per-share basis from 5.09 US dollars to 5.15 US dollars.
The combined ratio was 92.3%, compared with 91.1% a year earlier. Excluding catastrophes, the ratio improved to 85.5% from 88.1%, while the current accident-year loss and loss adjustment expense ratio excluding catastrophes improved to 55.7% from 57.6%.
Catastrophe losses remain a risk
Catastrophe losses totaled 109.7 million US dollars and represented 6.8 percentage points of the combined ratio, up from 3.0 points in the prior-year quarter. The pressure was concentrated across the business, although Personal Lines posted an 81.9% current accident-year combined ratio excluding catastrophes and Specialty reached 84.6%.
Net premiums written increased 3.1% to 1.79 billion US dollars. Net investment income rose 12.7% to 131.9 million US dollars, supported by higher earned yields and continued operating cash flow.
Capital returns support investor focus
The Hanover repurchased approximately 386,000 shares for about 86 million US dollars during the quarter. Through October 26, cumulative repurchases for the year reached approximately 263 million US dollars, leaving about 546 million US dollars under the existing authorization.
The company provides property and casualty insurance for small and mid-sized businesses, as well as homes, automobiles and other personal items, through independent agents and brokers. Its reporting segments are Core Commercial, Specialty and Personal Lines, giving the insurer a diversified US-focused underwriting profile.
The Hanover Insurance Group at a glance
- Company: The Hanover Insurance Group, Inc.
- ISIN: US4108671052
- Ticker: THG
- Home exchange: New York Stock Exchange
- Headquarters: Worcester, Massachusetts, United States
- Business: Property and casualty insurance
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Further earnings coverage and company developments are available in more news and analyses on The Hanover Insurance Group stock.
