THG · The Hanover Insurance Group, Inc.

The Hanover Insurance Group delivered record first quarter 2026 results, with operating income of $188.5 million, or $5.25 per diluted share, representing a significant improvement from $141.8 million, or $3.87 per share, in the prior-year quarter. The performance was driven by a 2.4-point improvement in the ex-catastrophe combined ratio to 85.4% and a 19.6% increase in net investment income to $126.9 million. Total net premiums written grew 3.2% to $1.56 billion, reflecting balanced growth across Core Commercial, Specialty, and Personal Lines segments.

Segment performance was notably strong. Core Commercial operating income before taxes nearly tripled to $74.8 million, driven by lower property large losses and a 3.6-point improvement in the current accident year ex-cat combined ratio to 91.5%. Specialty operating income rose to $84.0 million, benefiting from widespread favorable prior-year reserve development and lower property losses. Personal Lines maintained solid margins with an ex-cat combined ratio of 82.4%, although reported results were impacted by higher current year catastrophe losses. Net investment income growth was fueled by higher earned yields on fixed maturities, which increased to 4.42% from 4.08%, and strong partnership income.

Capital deployment remained active, with the company repurchasing approximately 580,000 shares year-to-date through April 28, totaling $101 million. Book value per share increased 1.0% from year-end 2025 to $101.86, while operating insurance company statutory surplus grew to $3.54 billion. Management highlighted the cumulative impact of prior pricing actions and disciplined underwriting as key drivers of the record profitability.