Hanover Insurance Group, a U.S. property and casualty insurance company headquartered in Worcester, Massachusetts, reported net profit of $191.6 million in the second quarter of 2026, up from $157 million in the same period a year earlier, and its combined ratio improved to 91.2% from 92.5% in the same period in 2025.
Operating income increased to $189.2 million from $158.7 million, and diluted net income per share and operating income were $5.38 and $5.31 respectively, both of which the company said were second-quarter records.
For the quarter, net written premiums increased 4.6% to $1,656.8 million, with growth accelerating in all three operating segments compared to the first quarter of 2026.
According to the company, core commercial net written premiums increased 7.2% to $574.8 million, specialty lines increased 4.4% to $384.4 million, and personal lines increased 2.6% to $697.6 million.
The group’s net premium income for the quarter was US$1.5976 billion, up from US$1.5453 billion in the same period last year. The loss and loss-adjusted expense ratio was 60.2%, 1.7 percentage points lower than the year-ago period, while the current accident-year loss and LAE ratio (excluding catastrophes) improved 0.3 percentage points to 55.8%.
The group’s catastrophe losses totaled $91.8 million in the second quarter, equivalent to a combined ratio of 5.7%, down from 7.0% in the same period last year. During the same period last year, core commercial catastrophe losses were $26.4 million, while professional catastrophe losses fell to $10.0 million from $14.6 million. Individual insured catastrophe losses were $55.4 million, down from $70.2 million in the same period last year.
Personal lines reserve development (excluding catastrophes) was favorable $10.1 million in the prior year compared to $2.6 million in the prior year period. The Specialty business achieved broad-based positive development of $10.8 million, compared with $12.5 million in the same period last year. Core Commercial business achieved good growth of $0.6 million, down from $3 million in the prior year period.
On the investment side, net investment income increased by 13.4% to US$119.6 million. The firm reported that the portfolio’s total pre-tax return was 4.28%, up from 4.11% a year earlier, while the average fixed-maturity pre-tax return rose to 4.45% from 4.24%.
Net realized and unrealized investment gains recognized in earnings were $2.8 million, compared with a loss of $2.5 million in the prior year period. Hanover held $11.2 billion in cash and investment assets as of June 30, 2026, with fixed maturity and cash accounting for approximately 93% of the portfolio and approximately 95% fixed maturity investment grade.
“Our second quarter success is a testament to the strength of our business model, the durable profitability we have built at Hanover Hotels and the disciplined execution of our team,” said John C. Roche, President and Chief Executive Officer of Hanover Hotels.
“We reported operating return on equity of approximately 20% and operating earnings per share of $5.31, both second quarter records, and accelerated revenue premium growth. We are effectively responding to changing market conditions and delivering healthy pricing while building growth momentum in the most attractive areas of our portfolio.”
Roche added: “This quarter reflects the talent of our employees, the strength of our leadership team, the depth of our agency relationships and the trust our customers place in us every day.
“As we announced earlier this month, I plan to retire at the end of 2026. It has been a great privilege to serve as CEO for the past nine years and I am very optimistic about the future of Hanover Hotels. Dick Lavey has been one of the key architects of our strategy and company transformation. We will continue to work closely together throughout the remainder of the year to ensure a seamless transition. Dick’s leadership, expertise and strategic vision position him to successfully lead Hanover Hotels into its next phase.”
Jeffrey M. Farber, Hanover’s executive vice president and chief financial officer, commented: “We are pleased with our strong performance, including excellent underwriting profitability, as evidenced by our combined ratio of 91.2% and combined ratio (excluding catastrophes) of 85.5%.”
He continued: “In addition, we delivered strong net investment income growth of 13%, driven by higher yields and strong operating cash flow, while continued good developments strengthened our confidence in the strength of our reserve position. The profitability of our business continues to accumulate capital and increase share repurchases, while maintaining balance sheet strength and financial flexibility to respond to future growth opportunities and deployments.”
“Following a strong start to the year, we enter the second half of 2026 with confidence, driven by our diversified earnings streams, resilient balance sheet and disciplined focus on capital allocation.”
