THG

It has been about a month since the last earnings report for Hanover Insurance Group (THG). Shares have lost about 0.2% in that time frame, underperforming the S&P 500. But investors have to be wondering, 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 its most recent earnings report in order to get a better handle on the important drivers. Hanover Insurance Q1 Earnings Top Estimates on Lower Cat LossesThe Hanover Insurance posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%.Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%.THG Delivers Better Combined Ratio Despite Cat LossesUnderwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago.Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio.Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance.Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses.The Hanover’s Core Commercial Segment Benefits From Rate ActionCore Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts.Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million...

Shares of The Hartford Insurance Group, Inc. HIG have gained a modest 3.8% over the past year, outperforming the industry’s 5% decline, though trailing the S&P 500’s 30.3% advancement. The Hartford continues to execute well operationally, supported by strong business insurance growth, disciplined underwriting, rising investment income, and shareholder-friendly capital allocation. Headquartered in Hartford, CT, the company is a leading multi-line insurer and investment provider in the United States. It offers a wide range of products, including investment solutions, group life and disability insurance, property and casualty (P&C) coverage, and mutual funds, with a market capitalization of approximately $37.3 billion. Its forward P/E ratio of 9.97 is lower than the industry average of 26.13, indicating a relatively attractive valuation. Supported by solid earnings prospects and consistent operating performance, HIG currently carries a Zacks Rank #3 (Hold), along with a Value Score of A. The Zacks Consensus Estimate for The Hartford is pegged at $13.14 per share for 2026 and at $14.39 per share for 2027. The top-line estimate for 2026 is pegged at $20.96 billion, representing a 4.9% increase from the prior-year level. Over the past 30 days, earnings estimates have seen two upward revisions against nine downward revisions. HIG beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 16.47%. The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote HIG has streamlined its business by exiting legacy run-off and non-core operations, allowing management to focus heavily on profitable commercial lines. This strategy is paying dividends in underwriting discipline and capital efficiency. The strength of the core business is highly visible in Business Insurance, where written premiums grew 6% year over year in the first quarter of 2026. While the segment's total combined ratio was 94.8%, its underlying combined ratio remained excellent at 89.2%. The Hartford is investing heavily in AI, cloud infrastructure, and advanced analytics to improve underwriting accuracy, claims processing, and customer experience. AI-powered underwriting tools and real-time data insights are helping improve pricing consistency and risk selection. These operational improvements are translating i...

The Progressive Corporation PGR reported earnings per share of $1.86 for April 2026, which jumped 11% year over year. The improvement stemmed from higher revenues and an increase in investment income, partially offset by a rise in expenses. Progressive recorded net premiums written of $7.2 billion, up 6% from $6.8 billion in the year-ago month. Net premiums earned were about $7.1 billion, up 7% from $6.6 billion reported in the year-ago month.Net realized income on securities was $402 million against a net realized loss of $3 million from the year-ago month.Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 530 basis points (bps) year over year to 90.2.PGR’s total revenues were $7.9 billion, up 13% year over year, owing to a 7.1% increase in premiums, a 12.5% jump in investment income and 15.9% higher service revenues.Total expenses increased 13.5% to $6.6 billion, mainly due to higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, service expenses and interest expense.In April 2026, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded a 9% year-over-year increase to 38.5 million policies. Special Lines policies increased 7% from the year-earlier month to 7.1 million.In Progressive’s Personal Auto segment, Agency Auto PIF increased 8% to 11.1 million, while Direct Auto improved 11% to 16.6 million.PGR’s Commercial Auto segment policies rose 3% year over year to 1.2 million.The Property business had 3.6 million policies in force in the reported month, up 1% year over year.The company’s book value per share was $56.29 as of April 30, 2026, up 8.9% from $51.71 on April 30, 2025.In the trailing 12 months, the return on equity was 33.8%, having contracted 1,040 bps from 44.2% in April 2025. The debt-to-total-capital ratio deteriorated 180 bps year over year to 20.3 as of April 30, 2026. Progressive shares have lost 26.9% in the past year against the industry’s growth of 4.3%. Image Source: Zacks Investment Research Progressive currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the insurance industry are First American Financial Corporation FAF, Mercury General Corporation MCY and The Hanover Insurance Group, Inc. THG. While FAF and MCY sport a Zacks Rank #1 (Strong Buy)...

The Hanover reported a record Q1 operating return on equity of 20.3% and operating EPS of $5.25, with the all‑in combined ratio improving to 91.7% and the combined ratio excluding catastrophes a first‑quarter record of 85.4%, driven by pricing and targeted underwriting actions and net written premium growth of 3.2%. Catastrophes added 6.3 points to the combined ratio this quarter (notably severe hail/wind in Illinois and Michigan and Winter Storm Fern), but management reported 3.1 points of favorable prior‑year catastrophe development and $25 million of favorable prior‑year reserve development excluding catastrophes across segments. Net investment income rose 19.6% with about 88% of invested assets in cash and investment‑grade fixed income; book value per share was $101.86 (up 1% sequentially) and the company repurchased roughly $87 million of stock in Q1 while pursuing technology and AI initiatives to improve underwriting and claims efficiency. Interested in The Hanover Insurance Group, Inc.? Here are five stocks we like better. The Hanover Insurance Group (NYSE:THG) reported what executives described as a “very strong start” to 2026, highlighted by record first-quarter operating performance and improved underwriting margins despite elevated weather activity in the company’s footprint. President and CEO John C. Roche said the company posted “record first quarter performance,” including operating return on equity of 20.3% and operating earnings per share of $5.25. The all-in combined ratio improved nearly 2.5 points to 91.7%, while the combined ratio excluding catastrophes improved to 85.4%, which Roche said were both first-quarter records. → 5 Stocks to Buy in May Before the Next AI Surge Hits Roche attributed the margin improvement to “recent pricing and targeted underwriting actions,” and said the company was encouraged by the “better-than-expected impact of enhanced terms and conditions and targeted property actions,” pointing to favorable development on prior-year catastrophe losses as evidence. Net written premiums grew 3.2% in the quarter, which Roche called “balanced” growth. He added the company is “executing thoughtfully in areas where property conditions are softening” to preserve margins while positioning for growth, noting the company’s 2026 plan assumed the first quarter would be the low point for growth. CFO Jeffrey M. Farber said catastrophe...

Property and casualty insurer The Hanover Insurance Group (NYSE:THG) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 5.1% year on year to $1.70 billion. Its non-GAAP profit of $5.25 per share was 24.5% above analysts’ consensus estimates. Is now the time to buy THG? Find out in our full research report (it’s free). Revenue: $1.70 billion vs analyst estimates of $1.72 billion (5.1% year-on-year growth, 1% miss) Adjusted EPS: $5.25 vs analyst estimates of $4.22 (24.5% beat) Adjusted Operating Income: $250.2 million (14.7% margin, 34.2% year-on-year growth) Operating Margin: 14.7%, up from 11.5% in the same quarter last year Market Capitalization: $6.25 billion The Hanover Insurance Group’s first quarter results were well received by the market, reflecting robust non-GAAP earnings growth driven by margin expansion across its core segments. Management highlighted disciplined underwriting, favorable prior year reserve development, and positive impacts from targeted property actions as key contributors. CEO Jack Roche attributed the strong performance to “tight execution across the enterprise” and noted that improved terms and conditions were producing better-than-expected outcomes, particularly in catastrophe-exposed portfolios. The company’s focus on portfolio diversification and risk selection helped offset elevated weather-related losses, supporting underlying profitability. Looking ahead, The Hanover Insurance Group’s outlook is anchored by continued investment in technology and analytics to drive underwriting precision and operational efficiency. Management expects its AI-enabled initiatives and digital transformation to further streamline risk assessment and claims processing, supporting both growth and margin sustainability. Roche stated, “We are intentionally building reusable AI capabilities...to reduce complexity, strengthen execution and enable scale,” underscoring the company’s confidence in its ability to capitalize on evolving market conditions. The company also plans to maintain a disciplined approach in property and specialty lines, balancing selective growth with ongoing expense management. Management attributed the quarter’s results to disciplined pricing, targeted underwriting actions, and operational improvements, while also emphasizing the growing impact of technology investments. Disciplined underwriting actions: The c...

The Hanover Insurance Group, Inc. THG posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%. Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%. The Hanover Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hanover Insurance Group, Inc. Quote Underwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago. Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio. Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance. Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses. Core Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts. Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million in the prior-year period. Specialty net premiums written increased 2.3% year over year to $366.7 million. Renewal price increases were 4.6% and rate increases were 2.4%, indicating steady momentum while maintaining underwriting discipline across the segment’s marine, professional, and other specialty offerings. The segment produced a combined ratio of 84.2%, an improvement from 87.7% in the prior-year quarter. A lower total loss and loss adjustment expense ratio of 47.8% (down from 50.7%) helped lift GAAP underwriting profit to $56.1 million from $41.2 milli...

Image source: The Motley Fool. April 30, 2026, at 10 a.m. ET President and Chief Executive Officer — Jack Roche Executive Vice President and Chief Financial Officer — Jeffrey Mark Farber Chief Operating Officer and President of Agency Markets — Richard William Lavey President of Specialty Lines — Bryan James Salvatore Need a quote from a Motley Fool analyst? Email [email protected] Jack Roche, our President and Chief Executive Officer, and Jeffrey Mark Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Richard William Lavey, Chief Operating Officer and President of Agency Markets, and Bryan James Salvatore, President of Specialty Lines. Before I turn the call over to Jack, let me note that our earnings press release, financial supplement, and a complete slide presentation for today's call are available in the Investors section of our website at hanover.com. After the presentation, we will answer questions in the Q&A session. Our prepared remarks and responses to your questions today, other than statements of historical fact, include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements can relate to, among other things, our outlook, profitability, growth and strategic initiatives, the impact of recently revised policy terms and conditions and targeted property actions, economic and geopolitical conditions and related effects, including economic and social inflation and tariffs, as well as other risks and uncertainties such as severe weather and catastrophes that could impact the company's performance and/or cause actual results to differ materially from those anticipated. We caution you with respect to reliance on forward-looking statements and, in this respect, refer you to the forward-looking statements section in our press release, the presentation deck, and our filings with the SEC. Today's discussion will also reference certain non-GAAP financial measures such as operating income and accident year loss and combined ratios excluding catastrophes, among others. A reconciliation of these non-GAAP financial measures to the closest GAAP measure on a historical basis can be found in the press release, the slide presentation, or the financial supplement, which are posted on our website. With those comments, I will turn the call over to Jack. Jack Roche: T...

WORCESTER, Mass. (AP) — WORCESTER, Mass. (AP) — The Hanover Insurance Group Inc. (THG) on Wednesday reported first-quarter net income of $186.8 million. On a per-share basis, the Worcester, Massachusetts-based company said it had net income of $5.20. Earnings, adjusted for investment costs, came to $5.25 per share. The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $4.14 per share. The insurance company posted revenue of $1.7 billion in the period, which fell short of Street forecasts. Three analysts surveyed by Zacks expected $1.72 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on THG at https://www.zacks.com/ap/THG

For the quarter ended March 2026, Hanover Insurance Group (THG) reported revenue of $1.7 billion, up 5.1% over the same period last year. EPS came in at $5.25, compared to $3.87 in the year-ago quarter. The reported revenue represents a surprise of -1.2% over the Zacks Consensus Estimate of $1.72 billion. With the consensus EPS estimate being $4.14, the EPS surprise was +26.89%. 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: 30.7% compared to the 30.6% average estimate based on four analysts. GAAP Combined Ratio: 91.7% versus 94.6% estimated by four analysts on average. GAAP Loss and LAE Ratio: 61% versus the four-analyst average estimate of 64%. Specialty - Loss and LAE Ratio: 47.8% versus 53% estimated by three analysts on average. Revenues- Net investment income: $126.9 million versus $121.85 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.6% change. Revenues- Premiums earned: $1.57 billion compared to the $1.59 billion average estimate based on four analysts. The reported number represents a change of +4.1% year over year. Operating Revenues- Personal Lines- Net Premiums Earned: $646.9 million compared to the $662.58 million average estimate based on three analysts. The reported number represents a change of +3% year over year. Revenues- Fees and other income: $6.2 million versus the three-analyst average estimate of $6.39 million. The reported number represents a year-over-year change of -3.1%. Operating Revenues- Specialty- Net Investment Income: $28.7 million versus the three-analyst average estimate of $26.71 million. The reported number represents a year-over-year change of +18.1%. Operating Revenues- Personal Lines- Net Investment Income: $35.2 million compared to the $35.01 million average estimate based on three analysts. The reporte...

First Quarter Highlights Combined ratio of 91.7%; combined ratio, excluding catastrophes(1), of 85.4% Catastrophe losses of $98.9 million, or 6.3 points of the combined ratio Net premiums written increase of 3.2%* Renewal price increases(2) of 8.6% in Core Commercial, 8.4% in Personal Lines, and 4.6% in Specialty Rate increases(2) of 7.5% in Core Commercial, 4.3% in Personal Lines, and 2.4% in Specialty Loss and loss adjustment expense (LAE) ratio of 61.0%, 2.3 points below the prior-year quarter Current accident year loss and LAE ratio, excluding catastrophes(3), of 56.3%, 2.0 points below the prior-year quarter Net investment income of $126.9 million, up 19.6% from the prior-year quarter Book value per share of $101.86, up 1.0% from December 31, 2025; excluding net unrealized depreciation on fixed maturity investments, net of tax(4), book value per share increased 2.8% WORCESTER, Mass., April 29, 2026 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $186.8 million, or $5.20 per diluted share, in the first quarter of 2026, compared to $128.2 million, or $3.50 per diluted share, in the prior-year quarter. Operating income(5) was $188.5 million, or $5.25 per diluted share, in the first quarter of 2026, compared to $141.8 million, or $3.87 per diluted share, in the prior-year quarter. The company reported net and operating return on equity(6) of 20.9% and 20.3%, respectively, in the first quarter of 2026. "We delivered excellent first quarter results, with an operating return on equity of over 20% while generating balanced top‑line growth and building for the future," said John C. Roche, president and chief executive officer at The Hanover. "Our performance underscores disciplined execution and the cumulative impact of prior pricing and property underwriting actions that are now bearing fruit. In Personal Lines, we sustained strong margins, delivering solid growth and demonstrating the effectiveness of our state‑specific growth strategies. Core Commercial performance remained strong, with healthy margins, resilient pricing, and balanced and accelerating premium growth, particularly in Small Commercial. Specialty once again delivered exceptional profitability and robust premium increases in targeted segments - Management Liability, Surety, Specialty GL and E&S - as our team navigated pockets of soft property market cond...

Hanover Insurance Group (THG) came out with quarterly earnings of $5.25 per share, beating the Zacks Consensus Estimate of $4.14 per share. This compares to earnings of $3.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +26.89%. A quarter ago, it was expected that this insurance company would post earnings of $5.2 per share when it actually produced earnings of $5.79, delivering a surprise of +11.35%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hanover Insurance, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $1.7 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.2%. This compares to year-ago revenues of $1.62 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanover Insurance shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 4.3%. While Hanover Insurance has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanover Insurance was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the comp...

Hanover Insurance (THG) reported Q1 operating earnings late Wednesday of $5.25 per diluted share, up