Hanover Insurance Posts Record Q2 Net Income of $191.6M, Operating EPS of $5.31, and a 91.2% Combined Ratio
THG sits 38% above its 52-week low of $164.23.
Summary
Hanover Insurance delivered record Q2 2026 earnings, with net income of $191.6 million and operating EPS of $5.31, driven by strong underwriting and investment results. The combined ratio came in at 91.2%, and the company continued significant share repurchases.
Key Events · Earnings and Guidance · THG
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Record Q2 Net Income
Net income reached $191.6 million, or $5.38 per diluted share, up 22% from $157.1 million a year ago. Operating income was $189.2 million, or $5.31 per diluted share.
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Strong Underwriting Profitability
The combined ratio stood at 91.2%, with catastrophe losses of $91.8 million (5.7 points). Excluding catastrophes, the combined ratio was 85.5%, matching the prior-year quarter.
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Accelerating Premium Growth
Net premiums written rose 4.6% to $1,656.8 million, supported by renewal price increases of 8.7% in Personal Lines, 7.8% in Core Commercial, and 3.6% in Specialty.
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Investment Income Surge
Net investment income increased 13.4% to $119.6 million, driven by higher earned yields and strong operating cash flows. The pre-tax earned yield on fixed maturities was 4.45%.
Analysis · THG · Finance
The second quarter marked Hanover's strongest on record, with net income climbing 22% year-over-year to $191.6 million and operating EPS reaching $5.31—both quarterly highs. Despite $91.8 million in catastrophe losses, the combined ratio improved to 91.2%, underscoring disciplined underwriting and favorable reserve development. Premium growth accelerated to 4.6%, while net investment income jumped 13.4% on higher yields. The company continued its aggressive buyback program, repurchasing $55 million in stock during the quarter, with $660 million remaining under the new authorization. These results highlight the earnings power built across all segments and support the ongoing capital return strategy, even as CEO John Roche prepares to retire at year-end.
At the time of this filing, THG was trading at $225.88 on NYSE in the Finance sector, with a market capitalization of approximately $7.8B. The 52-week trading range was $164.23 to $225.29. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.