Hanover Insurance tops Q3 profit estimates, misses on revenue

The Hanover Insurance Group, Inc. (THG) reported third-quarter operating income of $5.15 per diluted share on Oct. 28, topping the $4.58 consensus estimate compiled by Finnhub. Total revenue of $1,735.5 million missed the $1.82 billion estimate.

The holding company for several property and casualty insurers, the company sells standard and specialized coverage for small and mid-sized businesses, as well as homes and automobiles, through independent agents and brokers. It said in a regulatory filing that net income was $172.6 million, or $4.86 per diluted share, compared with $178.7 million, or $4.90 per diluted share, a year earlier.

Here's how the company did:

• Operating income per diluted share: $5.15, topping the $4.58 consensus estimate according to Finnhub, vs. $5.09 a year earlier
• Net income per diluted share: $4.86 vs. $4.90 a year earlier
• Total revenue: $1,735.5 million, missing the $1.82 billion estimate according to Finnhub, vs. $1,665.0 million a year earlier

Revenue has risen in each of the last three quarters, from $1.67 billion in the third quarter of 2025 to $1.73 billion in the second quarter of 2026, according to its SEC filings.

Underwriting results

The combined ratio was 92.3%, compared with 91.1% a year earlier. Catastrophe losses were $109.7 million, or 6.8 points of the combined ratio. Excluding catastrophes, the combined ratio was 85.5%, compared with 88.1%.

In Core Commercial, operating income before income taxes was $55.5 million, compared with $65.1 million, and the combined ratio was 100.5%, compared with 97.3%. In Specialty, operating income before income taxes was $88.1 million, compared with $78.2 million, and the combined ratio was 84.0%, compared with 84.9%.

Personal Lines operating income before income taxes was $103.6 million, compared with $101.1 million. Its combined ratio was 89.7%, compared with 89.2%.

Premiums, investments and capital

Net premiums written rose 3.1%, to $1,792.5 million from $1,738.9 million. Renewal price increases averaged 8.7% in Personal Lines, 7.4% in Core Commercial and 4.3% in Specialty.

Net investment income was $131.9 million, up 12.7% from the prior-year quarter.

Book value per share was $99.69 at Sept. 30, down 5.4% from June 30, 2026. Excluding net unrealized depreciation on fixed maturity investments, net of tax, it was $114.26, up 2.7%.

The company repurchased about 386,000 shares for approximately $86 million in the third quarter. Through Oct. 26 it had repurchased about $263 million of stock this year, and it had about $546 million of remaining capacity under its authorization.

“We are very pleased with our third quarter performance highlighted by nearly two points of improvement in our current accident year ex-catastrophe loss ratio,” said Jeffrey M. Farber, executive vice president and chief financial officer. “With substantial financial flexibility, we remain well-positioned to invest in the business, return capital to shareholders and capture attractive opportunities as they emerge.”

Outlook and call

The release did not include new financial guidance figures. President and Chief Executive Officer John C. Roche said, “We are confident in our outlook, and our goal of long-term profitability and value creation will continue to guide every underwriting and growth decision we make.”

The company will discuss the results on a conference call on Oct. 29 at 10:00 a.m. ET, with a presentation posted on its website.