The Hanover Insurance Group, Inc., a property and casualty insurer, has reported net income of $172.6 million in the third quarter of 2026, down from $178.7 million in the prior-year quarter.
In the quarter, operating income declined 1.3% to $183.1 million from $185.6 million in Q3 2025.
Net premiums written increased 3% to $1.79 billion from $1.74 billion, while net premiums earned rose 3.9% to $1.61 billion from $1.55 billion.
The Hanover’s combined ratio for the quarter rose to 92.3% from 91.1% in the same period a year earlier.
Catastrophe losses stood at $109.7 million, or 6.8 percentage points of the combined ratio. The loss and loss adjustment expense (LAE) ratio was 61.4%, up 1.6 percentage points from the prior-year quarter, driven by higher catastrophe losses. The current accident year loss and LAE ratio, excluding catastrophes, was 55.7%, down 1.9 percentage points from the prior-year quarter.
Meanwhile, the expense ratio improved to 30.9% from 31.3%.
Net investment income was $131.9 million, up 12.7% year on year, primarily due to the continued investment of cash flows from operations, higher earned yields on the fixed maturity investment portfolio, and increased investment income from limited partnerships.
John C. Roche, President and CEO of The Hanover, said, “In the third quarter, we continued to translate strategic clarity, disciplined execution and the breadth of our diversified franchise into exceptional performance.
“With operating return on equity of 18.7% and record third quarter operating earnings per share of $5.15, our results reflect excellent underwriting execution and the benefits of our past portfolio actions. Our business mix continues to support strong performance and stable renewal pricing. A differentiated Specialty business, a preferred Personal Lines franchise, and a leading position with the top-performing agents in Core Commercial continue to provide avenues for profitable growth across market conditions, while we remain patient where conditions warrant greater selectivity,” added Roche. “At the same time, we continue to invest in technology, AI and other capabilities that are delivering meaningful business impact and strengthening our future position. 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.”
Jeffrey M. Farber, Executive Vice President and Chief Financial Officer at The Hanover, added, “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, favorable reserve development, continued growth in net investment income, and the strength of our capital position.
“Net investment income increased 12.7%, driven by higher earned yields, strong cash flows and increased partnership income. The consistent capital generation of our business enabled us to repurchase approximately $86 million of stock during the quarter, totaling $263 million year-to-date through October 26th. As we discussed at our September Investor Day, profitability, earnings growth and capital allocation priorities continue to guide our decisions. With substantial financial flexibility, we remain well-positioned to invest in the business, return capital to shareholders and capture attractive opportunities as they emerge.”
