THG

Cincinnati Financial Corporation CINF is expected to register an improvement in top line but a decline in bottom line when it reports third-quarter 2026 results on Oct. 26, after the opening bell. The Zacks Consensus Estimate for CINF's third-quarter revenues is pegged at $3 billion, indicating an increase of 5.5% from the year-ago reported figure. The consensus estimate for earnings is pegged at $1.99 per share. The Zacks Consensus Estimate for CINF's third-quarter earnings has moved 5.9% north in the past 30 days. The estimate indicates a year-over-year decline of 30.2%. Our proven model predicts an earnings beat for Cincinnati this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Earnings ESP: CINF has an Earnings ESP of +2.51%. This is because the Most Accurate Estimate of $2.04 is pegged higher than the Zacks Consensus Estimate of $1.99. Cincinnati Financial Corporation price-eps-surprise | Cincinnati Financial Corporation Quote Zacks Rank: CINF carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Premiums are likely to have benefited from higher insured exposures, pricing, premium growth initiatives, increased new business and contributions from Cincinnati Re and Cincinnati Global. The Zacks Consensus Estimate is pegged at $2.7 billion. Performance at Personal Lines is likely to have benefited from higher rates, a higher level of insured exposures, increased policy retention rates and changes in policy deductibles or mix of business. The Zacks Consensus Estimate for Personal Lines revenues is pegged at $896 million. Better agency renewal and new business written premiums, supported by higher renewal pricing, are likely to have favored Excess and Surplus Lines. The Zacks Consensus Estimate for Excess and Surplus Lines revenues is pegged at $193 million. Robust operating cash flow and higher bond yields are expected to have boosted net investment income. The Zacks Consensus Estimate for investment income, net of expenses, is pegged at $324 million. However, total benefits and expenses are likely to have risen due to higher insurance losses, policyholder benefits, underwriting and acquisition costs, interest expense and other operating expenses. Underwriting profitability is likely to face pressure from elevated claims costs and catastrophe losses. Some other P&C insurance stocks with the right combination of elements to deliver an earnings beat this time around are: The Allstate Corporation ALL has an Earnings ESP of +5.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $7.03, indicating a year-over-year decrease of 37.1%. ALL's earnings beat estimates in each of the last four reported quarters. Arch Capital Group Ltd. ACGL has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05 per share, indicating a year-over-year decrease of 26%. ACGL's earnings beat estimates in each of the last four reported quarters. The Hanover Insurance THG has an Earnings ESP of +6.83% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $4.47 per share, indicating a 12.2% year-over-year decrease. THG's earnings beat estimates in each of the last four reported quarters. 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 Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report The Allstate Corporation (ALL) : Free Stock Analysis Report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hanover Insurance Group (THG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This insurance company is expected to post quarterly earnings of $4.47 per share in its upcoming report, which represents a year-over-year change of -12.2%. Revenues are expected to be $1.74 billion, up 3.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.05% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Hanover Insurance, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.83%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Hanover Insurance will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Hanover Insurance would post earnings of $3.88 per share when it actually produced earnings of $5.31, delivering a surprise of +36.86%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Hanover Insurance appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Cincinnati Financial (CINF), another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $1.99 for the quarter ended September 2026. This estimate points to a year-over-year change of -30.2%. Revenues for the quarter are expected to be $3.03 billion, up 5.5% from the year-ago quarter. The consensus EPS estimate for Cincinnati Financial has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.51%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Cincinnati Financial will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hanover Insurance Group has delivered a powerful share price run in recent years, and that kind of move naturally raises a question about how firmly its earnings support the current valuation. With the stock now trading around US$217.44, investors are asking whether the recent price puts too much, too little, or just enough weight on the insurer's profit engine. - Hanover Insurance Group has returned about 109.5% over the past 3 years, which puts a lot of pressure on its earnings to justify how far the share price has come. - The insurer's business model relies on underwriting discipline and investment income, so any shift in claims trends or portfolio yields can change how much value the market should place on each dollar of net profit. - Your read on Hanover Insurance Group is one view; the desks covering it have another. See what analysts think Hanover Insurance Group's shares could be worth. The stock's next move may depend on whether Hanover Insurance Group's current earnings profile can credibly support the valuation implied by today's share price. If you want to explore the relationship between earnings and price beyond Hanover Insurance Group, you can compare it with a wider set of companies screened as 30 resilient stocks with low risk scores. P/E is usually the cleanest way to think about Hanover Insurance Group because insurers are ultimately judged on the earnings they can produce from underwriting and investing policyholder float. On this lens, the stock trades on about 10.0x earnings, compared with an Insurance sector average near 10.7x and a peer group around 9.2x. The tailored fair multiple for Hanover Insurance Group sits close to those broad benchmarks, and the current 10.0x level is only slightly above that modelled mark. That leaves the shares pricing in an earnings profile that looks broadly consistent with what the company's balance sheet strength, expected returns on equity and sector risks might support, rather than a clear bargain or a stretched outlier. Explore the numbers behind Hanover Insurance Group's P/E valuation. Narratives on Hanover Insurance Group pick up where the P/E puzzle leaves off by spelling out which specific paths for growth, profitability and earnings would need to hold for the current share price to look materially higher or lower over time. Each scenario ties a fair value estimate to a clear story about Hanover Insurance Group's potential catalysts and key risks, so you can later compare that storyline with what actually unfolds on the company's Community page. One of the top community narratives on Hanover Insurance Group: 8% undervalued "Sustained investment in advanced technology, data analytics, and AI-driven workflow automation is enabling more accurate risk assessment and faster quote turnaround..." Discover why this Narrative puts Hanover Insurance Group at 8% undervalued. Before you put too much weight on the current P/E story, it helps to look at who actually pulls the levers at Hanover Insurance Group and what motivates them day to day. See who runs Hanover Insurance Group and how they are paid. 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]

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