The Hanover Insurance Group posted second-quarter 2026 net income of $191.6 million, or $5.38 per diluted share, and operating income of $189.2 million, or $5.31 per diluted share. The company reported a combined ratio of 91.2% (85.5% excluding catastrophes) and net premiums written of $1,656.8 million, up 4.6% year-over-year. Book value per share rose to $105.40 at June 30, 2026.
Financial Highlights
- Net income: $191.6 million for Q2 2026; $378.4 million year-to-date (six months).
- Net income per diluted share: $5.38 for Q2 2026; $10.58 for six months.
- Operating income: $189.2 million for Q2 2026; operating income per diluted share $5.31 for Q2.
- Combined ratio: 91.2% for Q2 2026; combined ratio excluding catastrophes 85.5%.
- Net premiums written: $1,656.8 million for Q2 2026, up 4.6% versus Q2 2025.
- Book value per share: $105.40 at June 30, 2026 (excluding net unrealized depreciation on fixed maturities, $111.26).
Business Highlights
- Underwriting performance: Current accident year loss and LAE ratio excluding catastrophes improved to 55.8% (down 0.3 points year-over-year).
- Segment performance: Personal Lines combined ratio improved to 88.9% with lower current accident year loss trends and benign property frequency; Core Commercial combined ratio was 95.7%; Specialty combined ratio was 88.3%.
- Premium momentum: Renewal price increases averaged 8.7% in Personal Lines, 7.8% in Core Commercial and 3.6% in Specialty; rate increases of 4.8% in Personal Lines and 7.0% in Core Commercial cited.
- Catastrophe impact: Catastrophe losses were $91.8 million in Q2 2026, representing 5.7 points of the combined ratio; lower than Q2 2025 catastrophe impact on certain segments.
- Capital deployment and balance sheet: Repurchased ~291,000 shares (~$55 million) in Q2 and ~$149 million year-to-date through July 24; ~$660 million remaining under current repurchase authorization; statutory capital and surplus for operating insurance companies ~$3.54 billion at June 30, 2026.
Original SEC Filing:
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