THG

It has been about a month since the last earnings report for Hanover Insurance Group (THG). Shares have lost about 1.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Hanover Insurance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. THG Q2 Earnings Beat on Personal Lines Gains, Revenues MissThe Hanover Insurance Group reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%. The consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter. The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion. Core Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier. Specialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million. Personal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable. Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 7.98% due to these changes. Currently, Hanover Insurance has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hanover Insurance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Hanover Insurance belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Progressive (PGR), has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Progressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago. Progressive is expected to post earnings of $3.98 per share for the current quarter, representing a year-over-year change of -1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.3%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Progressive. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Progressive Corporation PGR reported earnings per share of $1.65 for July 2026, which declined 11% year over year. The downside was due to escalating expenses and net realized losses on securities. Progressive recorded net premiums written of $7.4 billion, up 5% from $7 billion in the year-ago month. Net premiums earned were about $7.3 billion, up 5% from $6.9 billion reported in the year-ago month.Net realized losses on securities were $47 million against a net realized income of $79 million from the year-ago month.Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 150 basis points (bps) year over year to 86.8.PGR’s total revenues were $7.8 billion, up 27.1% year over year, owing to a 5.3% increase in premiums, a 10.9% jump in investment income, and 8.9% higher service revenues.Total expenses increased 7.1% to $6.6 billion, mainly due to higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, investment expenses, service expenses and interest expense.In July 2026, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded a 7% year-over-year increase to 39 million policies. Special Lines policies rose 6% from the year-earlier month to 7.3 million.In Progressive’s Personal Auto segment, Agency Auto PIF increased 7% to 11.3 million, while Direct Auto improved 9% to 16.8 million.PGR’s Commercial Auto segment policies rose 4% year over year to 1.2 million.The Property business had 3.6 million policies in force in the reported month, remaining unchanged year over year.The company’s book value per share was $59.64 as of July 31, 2026, up 4.8% from $56.92 on July 31, 2025.                        In the trailing 12 months, the return on equity was 31.3%, down 840 bps from 39.7% in July 2025. The debt-to-total-capital ratio deteriorated 240 bps year over year to 19.5 as of July 31, 2026. Progressive shares have lost 14% in the past year against the industry’s growth of 2.7%. Image Source: Zacks Investment Research Progressive currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the insurance industry are The Hanover Insurance Group, Inc. THG, First American Financial Corporation FAF and Mercury General Corporation MCY. While THG sports a Zacks Rank #1 (Strong Buy), FAF and MCY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Hanover Insurance’s earnings surpassed estimates in each of the last four quarters, the average surprise being 27.33%. Shares of THG have jumped 25.9% in the past year. The Zacks Consensus Estimate for THG’s 2026 and 2027 revenues implies year-over-year growth of 4.6% and 4.5%, respectively.First American’s earnings surpassed estimates in each of the last four quarters, with an average surprise of 23.58%. Shares of FAF have gained 12.5% in the past year. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 17.5% and 4%, respectively.Mercury General’s earnings surpassed estimates in each of the last four quarters, the average surprise being 70.21%. Shares of MCY have jumped 39.3% in the past year. The Zacks Consensus Estimate for MCY’s 2026 earnings implies year-over-year growth of 61.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Progressive Corporation (PGR) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

American Financial Group, Inc. AFG reported second-quarter 2026 net operating earnings per share of $2.82, which surpassed the Zacks Consensus Estimate by 17%. The bottom line increased 31.8% year over year, driven by underwriting income and stronger returns from its alternative investment portfolio. Total revenues of $2 billion increased 5% year over year.  The top line also beat the Zacks Consensus Estimate by 0.7%. The quarterly results benefited from record pretax Property & Casualty ("P&C") operating income, healthy premium growth, improved underwriting margins and higher investment income from alternative investments. American Financial Group, Inc. price-consensus-eps-surprise-chart | American Financial Group, Inc. Quote Net earned premiums rose 2.9% year over year to approximately $1.7 billion in the second quarter of 2026. The figure was slightly below both the Zacks Consensus Estimate and our estimate of $1.71 billion. Net investment income rose 20.1% year over year to $221 million in the quarter under review. The figure was higher than our estimate of $195.4 million and surpassed the Zacks Consensus Estimate of $197.9 million. Total costs and expenses increased 1.1% year over year to $1.7 billion due to higher underwriting expenses and interest charges, partly offset by lower losses and loss adjustment expenses. Our estimate was $1.72 billion. Specialty P&C Insurance: The segment generated $1.9 billion in net written premiums, which improved 6% year over year, reflecting new business opportunities, favorable renewal pricing and increased exposures while maintaining disciplined underwriting. The Specialty P&C Insurance segment’s underwriting profit increased 26.3% year over year to $144 million in the quarter, driven by higher underwriting profit across all three groups. The figure exceeded our estimate of $143 million. Pre-tax core operating earnings before income taxes of the P&C Insurance segment were $350 million, up 28.2% year over year. Property & Transportation Group: Net written premiums increased 5% year over year to $797 million in the second quarter, driven by crop insurance growth, favorable pricing and higher exposures. The Property & Transportation Group generated underwriting profit of $57 million, more than double the $27 million reported a year ago, driven by stronger transportation and agricultural business performance. The combined ratio improved 490 basis points year over year to 90.3%. Specialty Casualty Group: Net written premiums increased 6% year over year to $812 million. The Specialty Casualty Group generated underwriting profit of $45 million, down from $49 million in the prior-year quarter, due to lower workers' compensation and executive liability profitability, offset by strength in energy, construction and environmental liability businesses. The combined ratio deteriorated 60 basis points year over year to 94.5%. Specialty Financial Group: Net written premiums rose 10% year over year to $306 million. In the Specialty Financial Group, underwriting profit of $42 million, up from $38 million in the prior-year quarter, was primarily driven by stronger performance in its fidelity/crime and financial institutions businesses. Catastrophe losses in Specialty Financial Group totaled $10 million in the reported quarter, narrower than the year-ago loss of $39 million. The current combined ratio of 85.6% improved 50 basis points year over year. American Financial exited the second quarter of 2026 with total cash and investments of $17.1 billion, which decreased 0.7% from the 2025-end level. Long-term debt of $1.82 billion remained unchanged from the 2025-end level. As of June 30, 2026, the company’s book value per share, excluding accumulated other comprehensive income (AOCI), was $59.85 compared with $58.38 at the end of 2025. Annualized return on equity was 20.3% in the second quarter, up 50 basis points year over year. American Financial repurchased $26 million of its common stock in the second quarter of 2026. It paid total cash dividends of 88 cents per share, continuing its disciplined capital management strategy. American Financial currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter’s level. Operating revenues amounted to $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. Gross premiums written increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million. Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million. First American Financial Corporation FAF reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million, up 14.7% year over year. The figure exceeded both our estimate and the Zacks Consensus Estimate of $182.3 million. The Hanover Insurance Group, Inc. THG reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%. Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. Catastrophe losses totaled $91.8 million, contributing 5.7 percentage points to the combined ratio, compared with 7.0 percentage points in the prior-year quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report American Financial Group, Inc. (AFG) : Free Stock Analysis Report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Hanover Insurance Group recently reported past second-quarter 2026 results, with revenue rising to US$1,726.2 million and net income to US$191.6 million, alongside higher diluted earnings per share from continuing operations of US$5.37. Management highlighted record operating performance, improved combined ratios across key segments, and a new US$700 million share repurchase authorization, while also confirming an upcoming CEO transition from Jack Roche to Dick Lavey. We’ll now examine how this record operating performance and expanded share repurchase authorization may influence Hanover Insurance Group’s broader investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Hanover Insurance Group, you need to be comfortable with an insurer that leans on underwriting discipline, specialty lines and technology to support returns, while managing catastrophe and competitive pressures. The latest record quarter and improved combined ratios reinforce the near term catalyst around underwriting quality, but they do not remove the key risk that a resurgence in severe weather or rising loss severity could quickly pressure margins. The new US$700 million share repurchase authorization is the announcement that ties most directly to this earnings release, as it sits alongside stronger earnings and record operating return on equity. It signals that capital return is becoming a more visible part of the story just as investors are watching how Hanover balances ongoing technology investment, catastrophe exposure and competitive intensity in commercial lines. Yet behind the strong recent results, investors should still be aware of how quickly catastrophe losses or rising claims severity could... Read the full narrative on Hanover Insurance Group (it's free!) Hanover Insurance Group's narrative projects $7.5 billion revenue and $566.8 million earnings by 2029. Uncover how Hanover Insurance Group's forecasts yield a $228.12 fair value, in line with its current price. Simply Wall St Community members see fair value for Hanover spanning roughly US$228 to US$468 across 2 independent views, underlining how far opinions can stretch. You are weighing those differences against record underwriting performance that coexists with concentrated catastrophe and pricing risks that could materially influence future returns, so it is worth exploring several of these perspectives in detail. Explore 2 other fair value estimates on Hanover Insurance Group - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Hanover Insurance Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Hanover Insurance Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hanover Insurance Group's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Uncover the next big thing with 21 elite penny stocks that balance risk and reward. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include THG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in The Hanover Insurance Group, Inc.? Here are five stocks we like better. Record Q2 performance: Hanover reported operating earnings of $5.31 per share, approximately 20% operating ROE, and 4.6% net written premium growth. The combined ratio improved to 91.2%, supported by favorable prior-year reserve development and catastrophe losses below modeled expectations. Growth and margins strengthened: Personal Lines’ ex-catastrophe current accident-year combined ratio improved to 81.9%, while Core Commercial premiums rose 7.2% and Specialty premiums increased 4.4%. Pricing, lower claims frequency, targeted underwriting, and technology investments supported results. Capital and leadership updates: Net investment income rose 13.4%, book value per share increased to $105.40, and Hanover authorized $700 million in additional share repurchases. CEO Jack Roche plans to retire at year-end, with COO Dick Lavey scheduled to succeed him in January. The Hanover Insurance Group (NYSE:THG) reported record second-quarter operating performance, citing improved underwriting margins, accelerating premium growth and higher investment income across its diversified insurance portfolio. President and Chief Executive Officer Jack Roche said the company generated operating earnings of $5.31 per diluted share and an operating return on equity of about 20%. Net written premiums increased 4.6%, led by Core Commercial and Specialty lines, while Personal Lines continued to produce what Roche described as strong margins and improving business momentum. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Disciplined underwriting and targeted growth can coexist,” Roche said, pointing to portfolio refinements, investments in risk selection and operating capabilities, and a focus on markets with attractive expected returns. Chief Financial Officer Jeff Farber said Hanover posted a combined ratio of 91.2% for the quarter, improving 1.3 percentage points from a year earlier. The combined ratio excluding catastrophe losses was 85.5%, while the current accident-year loss ratio excluding catastrophes was 55.8%. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Catastrophe losses accounted for 5.7 points of the combined ratio, including 0.8 points of favorable prior-year catastrophe development. Farber said catastrophe losses came in below the company’s modeled expectations despite frequent catastrophe activity in its operating regions. The company also reported $21.5 million of favorable prior-year reserve development excluding catastrophes, with favorable development in all three operating segments: Specialty generated $10.8 million of favorable development, or 3 points, across multiple coverages. Personal Lines produced $10.1 million of favorable development, or 1.5 points, primarily from Homeowners and, to a lesser extent, Personal Auto property coverages. Core Commercial generated $0.6 million of favorable development. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Farber said the company’s expense ratio was 31%, modestly above expectations because of higher variable compensation for agents in Personal Lines and employee incentive costs tied to better-than-expected underwriting results. Personal Lines recorded a current accident-year combined ratio excluding catastrophes of 81.9%, a 2.9-point improvement from the prior-year quarter. The improvement reflected earned pricing and what Farber called benign frequency trends. Homeowners generated an ex-catastrophe current accident-year loss ratio of 43.7%, improving 7.4 points from a year earlier. Farber cited earned pricing, favorable attritional loss frequency and lower large and weather-related losses. He also said deductible changes have contributed to fewer small claims in catastrophe and non-catastrophe results. Personal Auto’s ex-catastrophe current accident-year loss ratio was 64.7%, improving 1.5 points year over year, aided by favorable frequency across multiple coverages, particularly collision. Personal Lines net written premiums increased 2.6%, matching first-quarter growth. The company said prior actions to manage concentrations have reduced policies in force on a year-over-year basis, though policies in force were roughly flat sequentially. Hanover expects sequential policies-in-force growth by the end of 2026. Second-quarter renewal price increases were 7.1% in auto and 10.9% in home, while umbrella pricing rose about 19%. Roche said the company continues to shift toward higher-value customers through its Prestige offering. In response to an analyst question, Specialty Lines President Bryan Salvatore defined Prestige business as homes with $750,000 to approximately $3 million of Coverage A replacement cost and said the company is targeting $350 million of that business. Hanover added about 100 new Personal Lines distribution points year to date, with 75% in targeted diversification states, according to Roche. Core Commercial net written premiums rose 7.2%, up from 4.3% in the first quarter. Small Commercial grew 6%, supported by stable retention of approximately 86%, favorable renewal and new-business pricing, and expanded use of automated underwriting capabilities. Roche said the company expanded no-touch submission flow through its TAP Sales platform and remains on track for a full-country rollout of its TAP Sales workers’ compensation product this year. Middle Market premiums increased 9.4%; excluding several non-recurring or timing items, growth was approximately 7%, compared with 1.5% in the first quarter. Roche said Hanover’s focus on smaller accounts and the lower end of the Middle Market provides less exposure to broad property-market softening. Core Commercial’s current accident-year combined ratio excluding catastrophes was 91.2%. Its ex-catastrophe loss ratio of 58.7% was 2.2 points above the prior-year quarter, which Farber attributed to unusually low large property losses in the 2025 period and prudently increased liability loss selections in 2026. Specialty net written premiums increased 4.4%, accelerating from the first quarter. The segment’s current accident-year combined ratio excluding catastrophes was 88.6%, and its ex-catastrophe loss ratio was 51.6%. Roche said growth was strongest in professional and executive lines, management liability and Surety. Hanover Specialty Industrial production was more subdued because of its greater exposure to softening property-market conditions. The company also cited activity in Marine and excess-and-surplus lines, where it said it is deploying capacity selectively. The company highlighted technology investments including an artificial intelligence-driven E&S tool called Triage Pro, which it said helps underwriters prioritize attractive submissions, and new Surety workbench tools intended to streamline workflows and improve underwriting insights. Hanover renewed its property reinsurance treaties effective July 1, maintaining or enhancing its prior structures, according to Farber. The company issued a new catastrophe bond with expanded coverage, increasing its size to $150 million after investor demand allowed the company to reduce pricing guidance and issue at the low end of the revised range. The catastrophe occurrence program exhausts at $2.05 billion across covered perils, while maintaining a $200 million retention. Farber said reinsurance costs declined substantially on a risk-adjusted basis, and the company expanded its property per-risk limit by $25 million. Net investment income increased 13.4%, driven by asset growth and higher fixed-income reinvestment yields. Fixed-income portfolio investment income rose 16.3% from the prior-year quarter. About 88% of invested assets were held in cash and investment-grade fixed income, and the fixed-maturity portfolio had a weighted average rating of A+, Farber said. Book value per share increased 3.5% sequentially to $105.40. Hanover repurchased approximately 291,000 shares for $55 million during the quarter and announced a new $700 million share repurchase authorization. Through July 24, it had repurchased about 827,000 shares year to date at an average price of $180. Farber said first-half results were running “a couple of points better” than the path contemplated in the company’s original combined-ratio guidance, though Hanover did not update its annual guidance. The company expects a 6.9% catastrophe load in the third quarter. Roche also discussed his planned retirement after more than nine years as CEO. He will remain in the role through year-end, with Chief Operating Officer Dick Lavey set to become CEO in January. Lavey said the company remains focused on executing its existing strategy and intends to provide additional details on its longer-term plans at its Sept. 17 investor day. The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers' compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families. In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "The Hanover Insurance Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Operating Return on Equity: Approximately 20% for the second quarter. Operating Earnings: $5.31 per diluted share. Net Written Premium Growth: 4.6%, led by core commercial and specialty lines. Combined Ratio: 91.2%, a record second quarter performance. Combined Ratio Excluding Catastrophes: 85.5%. Catastrophe Losses: 5.7 points of the combined ratio. Expense Ratio: 31% for the quarter. Favorable Prior Year Reserve Development: $21.5 million. Personal Lines Growth: 2.6% in the second quarter. Core Commercial Net Written Premiums Increase: 7.2% in the second quarter. Specialty Net Written Premiums Growth: 4.4% in the quarter. Net Investment Income Increase: 13.4% in the quarter. Book Value Per Share: Increased 3.5% sequentially to $105.40. Share Repurchases: Approximately 291,000 shares totaling $55 million in the second quarter. New Share Repurchase Authorization: $700 million. Warning! GuruFocus has detected 8 Warning Sign with THG. Is THG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Hanover Insurance Group Inc (NYSE:THG) delivered record second quarter performance with an operating return on equity of approximately 20% and operating earnings of $5.31 per diluted share. Net written premium growth accelerated to 4.6%, led by core commercial and specialty lines, while personal lines continued to generate strong margins. The company's Personal Lines business is benefiting from prudent underwriting and strong execution, with renewal pricing remaining above long-term loss cost trends. Core commercial segment delivered healthy growth and solid profitability, with net written premiums increasing by 7.2% in the second quarter. Specialty segment remains a key driver of profitable growth, with strong new business production and continued gains in underwriting execution. The expense ratio for the quarter was modestly elevated due to higher variable compensation for agents and employee incentive costs. Catastrophe losses were 5.7 points of the combined ratio, although this was below modeled expectations. The current accident year loss ratio for core commercial, excluding catastrophes, was 2.2 points higher than the prior year quarter. Partnership income was lower than expectations for the quarter, impacting overall investment performance. The company has been raising its casualty loss picks over several quarters, reflecting a cautious approach to potential industry-wide trends. Q: Can you define Prestige in your Personal Lines and its current percentage of your personal book? Also, what is the trajectory of rate increases in this segment? A: Prestige is defined as coverage ranging from $750,000 to $3 million, varying by geography. We are pushing towards $350 million in this business, growing it nicely. The rate increase was driven by a sizable rate increase in a particular state, with a full quarter impact from that refiling. Our strategy focuses on full accounts, with less price elasticity in the Prestige segment, and we expect this trend to continue. Q: Can you discuss the recent increases in casualty loss picks and how you set your reserves? A: Our casualty book is broad-based, with some exposure to legal system abuse. We have been raising our picks for casualty over the last several quarters to be above the actuarial central estimate, ensuring we are well-prepared. Our current accident year is all IBNR, and we aim to be prudent in our reserve setting. Q: What is driving the retention and pricing stability in core commercial, and how does this relate to competitive conditions? A: The durability of our pricing and retention is due to our focus on smaller account sizes and less price elasticity. Our technology and operating model allow for better segmentation and higher retention. We maintain strong relationships with agents, which helps us outperform in competitive conditions. Q: How should we think about buybacks and capital management given recent share strength? A: We bought less stock in the second quarter due to the CEO succession process and market conditions. Dividends and stock buybacks will remain active tools for deploying excess capital. We will continue to evaluate the most effective uses of capital. Q: With the transition in leadership, are there any changes in strategy expected? A: We have an Investor Day on September 17 to discuss our strategic initiatives and financial plan. Currently, we are focused on executing our well-defined strategy, enhancing capabilities, and leveraging technology to scale our business. We aim to maintain our course while incorporating innovation and capability enhancements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The Hanover Insurance Group, Inc. THG reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%. The consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter.The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion. The Hanover Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hanover Insurance Group, Inc. Quote Core Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier. Specialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million. Personal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable. Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization. THG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago. Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Highlights Combined ratio of 91.2%; combined ratio, excluding catastrophes(1), of 85.5% Catastrophe losses of $91.8 million, or 5.7 points of the combined ratio Net premiums written increase of 4.6%* Renewal price increases(2) of 8.7% in Personal Lines, 7.8% in Core Commercial and 3.6% in Specialty Rate increases(2) of 7.0% in Core Commercial, 4.8% in Personal Lines and 2.1% in Specialty Loss and loss adjustment expense (LAE) ratio of 60.2%, 1.7 points below the prior-year quarter Current accident year loss and LAE ratio, excluding catastrophes(3), of 55.8%, 0.3 points below the prior-year quarter Net investment income of $119.6 million, up 13.4% from the prior-year quarter Book value per share of $105.40, up 3.5% from March 31, 2026; excluding net unrealized depreciation on fixed maturity investments, net of tax(4), book value per share increased 3.8% WORCESTER, Mass., July 28, 2026 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $191.6 million, or $5.38 per diluted share, in the second quarter of 2026, compared to $157.1 million, or $4.30 per diluted share, in the prior-year quarter. Operating income(5) was $189.2 million, or $5.31 per diluted share, in the second quarter of 2026, compared to $158.7 million, or $4.35 per diluted share, in the prior-year quarter. The company reported net and operating return on equity(6) of 21.2% and 19.8%, respectively, in the second quarter of 2026, and 21.0% and 20.0% in the first six months of 2026, respectively. "Our very successful second quarter is a testament to the strength of our business model, the durable earnings power we have built across The Hanover and the disciplined execution of our team," said John C. Roche, president and chief executive officer at The Hanover. "We posted operating return on equity of approximately 20% and operating earnings of $5.31 per share, both second quarter records, as well as accelerated top-line premium growth. We are effectively navigating evolving market conditions, and achieving healthy pricing, while building growth momentum in the most attractive areas of our portfolio." "This quarter reflects the talent of our employees, the strength of our leadership team, the depth of our agency relationships and the trust our customers place in us every day," said Roche. "As we announced earlier this month, I plan to retire at the end of 2026. It's been a great honor to serve the last nine years as CEO, and I could not be more optimistic about The Hanover's future. Dick Lavey has been one of the key architects of our strategy and the transformation of our company. We will continue to work closely together through the remainder of the year to ensure a seamless transition. Dick's leadership, expertise and strategic vision position him well to successfully lead The Hanover into its next chapter." "We are pleased with our excellent performance, including outstanding underwriting profitability as demonstrated by our combined ratio of 91.2%, and 85.5% excluding catastrophes," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "Additionally, we delivered robust net investment income, up 13%, driven by higher earned yields and strong operating cash flows, while continued favorable development reinforces our confidence in the strength of our reserve position. The profitability of our business continues to build capital, enabling increased share repurchases while maintaining the balance sheet strength and financial flexibility for future growth opportunities and deployment. Following a really strong start to the year, we enter the second half of 2026 with confidence, supported by our varied earnings streams, resilient balance sheet and disciplined focus on capital allocation." Second Quarter 2026 Highlights Second Quarter Operating Highlights Core Commercial Core Commercial operating income before income taxes was $77.5 million in the second quarter of 2026, compared to $83.9 million in the second quarter of 2025. The Core Commercial combined ratio was 95.7%, compared to 93.0% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $26.4 million, or 4.6 points of the combined ratio. This compared to catastrophe losses of $22.7 million, or 4.1 points, in the prior-year quarter. Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $0.6 million, or 0.1 points, compared to $3.0 million, or 0.5 points, in the second quarter of 2025. Core Commercial current accident year combined ratio, excluding catastrophes, increased 1.8 points, to 91.2% in the second quarter of 2026, compared to 89.4% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, was 58.7%, 2.2 points higher than the prior-year quarter, but 0.4 points improved from the full year of 2025. In the second quarter of 2026, the company prudently increased loss ratio selections in liability coverages. Additionally, the loss ratio in the prior-year quarter benefited from lower-than-usual property losses. The expense ratio decreased by 0.4 points, to 32.5%, in the second quarter of 2026, compared to the prior-year quarter, reflecting fixed cost leverage and efficiency gains. Net premiums written were $574.8 million in the second quarter of 2026, up 7.2% from the prior-year quarter, an acceleration from the first quarter of 2026, reflecting growth of 6.0% in small commercial and 9.4% in middle market (approximately 7% growth in middle market excluding non-recurring items). Core Commercial renewal price increases averaged 7.8%, including average rate increases of 7.0%. The following table summarizes premiums and the components of the combined ratio for Core Commercial: Specialty Specialty operating income before income taxes was $68.4 million in the second quarter of 2026, compared to $71.2 million in the second quarter of 2025. The Specialty combined ratio was 88.3%, compared to 86.5% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $10.0 million, or 2.7 points of the combined ratio. This compared to catastrophe losses of $14.6 million, or 4.1 points, in the prior-year quarter. Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $10.8 million, or 3.0 points, with widespread favorability. Net favorable prior-year reserve development, excluding catastrophes, was $12.5 million, or 3.5 points, in the second quarter of 2025. Specialty current accident year combined ratio, excluding catastrophes, increased 2.7 points, to 88.6% in the second quarter of 2026, from 85.9% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, of 51.6% in the second quarter of 2026 was consistent with the company's long-term expectations for the segment and increased 2.6 points compared to the prior-year quarter, which saw lower-than-expected property losses. Net premiums written were $384.4 million in the second quarter of 2026, up 4.4% from the prior-year quarter, an acceleration from the first quarter of 2026. Specialty renewal price increases averaged 3.6%, including average rate increases of 2.1%. The following table summarizes premiums and the components of the combined ratio for Specialty: Personal Lines Personal Lines operating income before income taxes was $104.9 million in the second quarter of 2026, compared to $57.4 million in the second quarter of 2025. The Personal Lines combined ratio was 88.9%, compared to 95.5% in the prior-year quarter. Catastrophe losses in the second quarter of 2026 were $55.4 million, or 8.5 points of the combined ratio. This compared to catastrophe losses of $70.2 million, or 11.1 points of the combined ratio, in the prior-year quarter. Second quarter 2026 results included net favorable prior-year reserve development, excluding catastrophes, of $10.1 million, or 1.5 points, compared to $2.6 million, or 0.4 points, in the second quarter of 2025. Personal Lines current accident year combined ratio, excluding catastrophe losses, decreased 2.9 points, to 81.9%, in the second quarter of 2026, from 84.8% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, decreased 4.2 points from the prior-year quarter, to 55.6%, driven by the continued benefit of earned pricing outpacing loss trends and benign property claims frequency, as well as lower large loss experience in homeowners in the quarter. The expense ratio increased by 1.3 points, to 26.3%, in the second quarter of 2026, compared to the prior-year quarter, primarily reflecting the timing of variable agency compensation expenses due to meaningfully better-than-expected results to date. Net premiums written were $697.6 million in the second quarter of 2026, up 2.6% compared to the prior-year quarter. The increase was primarily due to higher new business, and to a lesser extent, the impact of renewal price increases. Personal Lines renewal price increases averaged 8.7%, including average rate increases of 4.8%. Policies in force (PIF) in the second quarter of 2026 were essentially flat compared to the first quarter of 2026. The following table summarizes premiums and components of the combined ratio for Personal Lines: Net premiums written$697.6$679.6$1,260.2$1,227.5Growth2.6%3.7%2.7%3.4%Net premiums earned652.5635.11,299.41,263.0Operating income before taxes104.957.4194.1151.6Loss and LAE ratio62.6%70.5%64.2%67.5%Expense ratio26.3%25.0%26.0%25.1%Combined ratio88.9%95.5%90.2%92.6%Prior-year development ratio(1.5)%(0.4)%(1.5)%(0.4)%Catastrophe ratio8.5%11.1%8.8%8.3%Combined ratio, excluding catastrophes80.4%84.4%81.4%84.3%Current accident year combined ratio, excluding catastrophes81.9%84.8%82.9%84.7% Investments Net investment income was $119.6 million in the second quarter of 2026, an increase of 13.4% from the prior-year quarter, primarily due to the continued investment of cashflows from operations and the impact of higher earned yields on the fixed maturity investment portfolio. Total pre-tax earned yield on the investment portfolio for the second quarter of 2026 was 4.28%, up from 4.11% in the prior-year quarter. The average pre-tax earned yield on fixed maturities was 4.45% for the second quarter of 2026, up from 4.24% in the prior-year quarter. Net realized and unrealized investment gains recognized in earnings were $2.8 million in the second quarter of 2026. This compared to net realized and unrealized investment losses recognized in earnings of $2.5 million in the second quarter of 2025. The company held $11.2 billion in cash and invested assets at June 30, 2026. Fixed maturities and cash represented approximately 93% of the investment portfolio. Approximately 95% of the company's fixed maturity portfolio is rated investment grade. As of June 30, 2026, net unrealized losses on the fixed maturity portfolio were $259.5 million before income taxes, compared to $235.6 million at March 31, 2026. Shareholders' Equity and Capital Actions At June 30, 2026, book value per share was $105.40, up 3.5% from March 31, 2026, driven by strong earnings, partially offset by share repurchases, the ordinary quarterly cash dividends, and an increase in the unrealized loss position on the fixed maturity portfolio. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax, was $111.26 at June 30, 2026, up 3.8% from March 31, 2026. At June 30, 2026, operating insurance company's statutory capital and surplus was $3.54 billion, slightly higher compared to March 31, 2026. The company repurchased approximately 291,000 shares of common stock in the second quarter of 2026, totaling approximately $55 million. Year-to-date through July 24th, the company has repurchased approximately 827,000 shares, totaling approximately $149 million. The company has approximately $660 million of remaining capacity under its new $700 million share repurchase authorization announced on May 13, 2026. Earnings Conference Call The company will host a conference call to discuss its second quarter results on Wednesday, July 29, at 10:00 a.m. E.T. A presentation will accompany the prepared remarks and has been posted on The Hanover's website. Interested investors and others can listen to the call and access the presentation through The Hanover's website, located in the "Investors" section at www.hanover.com. Investors may access the conference call by dialing 1-844-413-3975 in the U.S. and 1-412-317-5458 internationally. Webcast participants should go to the website 15 minutes early to register, download and install any necessary audio software. A re-broadcast of the conference call will be available on The Hanover's website approximately two hours after the call. The Hanover Strategic Outlook and Financial Update The company will hold a virtual strategic outlook and financial update on Thursday, September 17, at 10:00 a.m. ET, highlighting the next chapter of The Hanover, its strategic priorities, and updated long-term financial targets. The event will include a live question and answer session with members of the executive team. A live webcast of the event will be available through the "Investors" section of the company's website. A replay of the webcast will be available following the event. About The Hanover The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com. Contact Information Definition of Segments Continuing operations include four reporting segments: Core Commercial, Specialty, Personal Lines and Other. The Core Commercial segment includes commercial multiple peril, commercial automobile, workers' compensation and other core commercial lines coverages provided to small and mid-sized businesses. The Specialty segment includes four divisions of business: marine and industrial property, professional and executive lines (such as management and professional liability), E&S and alternative markets, and surety and other. E&S and alternative markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses), and specialty general liability coverage. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Other segment primarily includes the operations of the holding company, and our run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools business, and run-off product liability business. Financial Supplement The Hanover's second quarter news release and financial supplement are available in the "Investors" section of the company's website at hanover.com. The following is a reconciliation from operating income to income from continuing operations and net income(5)(8): Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking StatementsCertain statements in this document may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may address, among other things, expectations regarding our growth, the strength of our reserves, certain statements regarding our performance for the remainder of 2026 and beyond, as well as our expectations, intentions and other statements that are not historical facts. Words such as: "believes," "anticipates," "expects," "intends," "may," "projects," "plan," "likely," "potential," "targeted," "forecasts," "should," "could," "continue," and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated. Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made and should understand the risks and uncertainties inherent in or particular to the company's business. Some of the factors that could cause actual results to differ include, but are not limited to: changes in the demand for our products; risks and uncertainties related to our growth and operating strategies, including our ability to attract, grow and retain profitable policies in force, to increase rates commensurate with, or in excess of, loss trends, and to manage expenses and execute strategic initiatives effectively; adverse claims experience or changes in our estimates of loss and loss adjustment expense reserves, including those arising from catastrophes, inflationary pressures or global unrest, which may result in lower current year underwriting results or adverse loss development, and which could negatively impact our carried reserves; uncertainties with respect to the long-term profitability of our products, including with respect to newer products, or longer-tail products covering casualty losses; disruption in our distribution channels, including the loss or disruption of our independent agency channel, and the impact of competition and consolidation in the industry and among agents and brokers; changes in frequency and loss severity trends, exacerbated by fluctuations in economic conditions; changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, policy terms and conditions, the use of artificial intelligence and other technologies, privacy and data security, payment flexibility, and regions where we have geographical concentration; volatile and unpredictable developments, including severe weather (whether arising from changing climate conditions or weather patterns, or otherwise) and other natural physical events, catastrophes, pandemics, civil unrest, war, global conflicts, and terrorist actions, and the uncertainty in estimating the resulting losses; and, other risks, uncertainties and factors discussed in the company's most recently filed quarterly report on Form 10-Q and its 2025 Annual Report filed on Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference. The company does not undertake the responsibility to update or revise such forward-looking statements, except as required by law. Non-GAAP Financial MeasuresAs discussed on page 39 of the company's Annual Report on Form 10-K for the year ended December 31, 2025, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating income per diluted share, and components of the combined ratio, both excluding and/or including catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company's operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2025 Annual Report on pages 61-64. Operating income and operating income per diluted share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company's four reporting segments, "operating income" is the segment income before both interest expense and income taxes. The company also uses "operating income per diluted share" (which is after both interest expense and income taxes). Operating income per share is calculated by dividing operating income by the weighted average number of diluted shares of common stock. Operating loss per share is calculated by dividing operating loss by the weighted average number of basic shares of common stock due to antidilution. The company believes that metrics of operating income and operating income in relation to its four reporting segments provide investors with a valuable measure of the performance of the company's continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or prior-year reserve development. These non-GAAP measures should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income to income from continuing operations and net income for the relevant periods is included on page 9 of this news release and in the Financial Supplement. Operating return on average equity (ROE) is a non-GAAP measure. See end note (6) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders' equity of the entire company and without adjustments. Book value per share is total shareholders' equity divided by the number of common shares outstanding. Book value per share excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure and is total shareholders' equity excluding the after-tax effect of unrealized appreciation (depreciation) on fixed maturities and market risk divided by the number of common shares outstanding. The company may provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events including, but is not limited to, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, riots, and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company's estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense (LAE) ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as "current accident year loss ratios." The company believes a discussion of loss and combined ratios excluding prior accident year reserve development is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates. The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP. View original content to download multimedia:https://www.prnewswire.com/news-releases/the-hanover-reports-record-second-quarter-net-income-and-operating-income-of-5-38-and-5-31-per-diluted-share-respectively-record-second-quarter-net-and-operating-return-on-equity-of-21-2-and-19-8-respectively-302836947.html

For the quarter ended June 2026, Hanover Insurance Group (THG) reported revenue of $1.72 billion, up 4% over the same period last year. EPS came in at $5.31, compared to $4.35 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.73 billion, representing a surprise of -0.41%. The company delivered an EPS surprise of +36.86%, with the consensus EPS estimate being $3.88. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: GAAP Expense Ratio: 31% versus 30.5% estimated by four analysts on average. GAAP Combined Ratio: 91.2% versus the four-analyst average estimate of 95.6%. GAAP Loss and LAE Ratio: 60.2% versus 65% estimated by four analysts on average. Specialty - Loss and LAE Ratio: 51.3% versus the three-analyst average estimate of 53.2%. Revenues- Net investment income: $119.6 million versus the four-analyst average estimate of $124.13 million. The reported number represents a year-over-year change of +13.4%. Revenues- Premiums earned: $1.6 billion versus the four-analyst average estimate of $1.6 billion. The reported number represents a year-over-year change of +3.4%. Operating Revenues- Personal Lines- Net Premiums Earned: $652.5 million compared to the $655.84 million average estimate based on three analysts. The reported number represents a change of +2.7% year over year. Revenues- Fees and other income: $6.2 million versus the three-analyst average estimate of $6.24 million. The reported number represents a year-over-year change of +1.6%. Operating Revenues- Specialty- Net Investment Income: $27.2 million versus $28.03 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change. Operating Revenues- Personal Lines- Net Investment Income: $33.3 million compared to the $36.32 million average estimate based on three analysts. The reported number represents a change of +10.3% year over year. Operating Revenues- Core Commercial- Other income: $1.3 million versus $1.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change. Operating Revenues- Specialty- Other income: $1.2 million versus $1.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change. View all Key Company Metrics for Hanover Insurance here>>> Shares of Hanover Insurance have returned +2.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research