AI Earnings Predictions for Hanover Insurance Group Inc (THG)

EX-99.1

2 thg-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

The Hanover Reports Record First Quarter Net Income and

Operating Income of $5.20 and $5.25 per Diluted Share, Respectively;

Record Net and Operating Return on Equity of 20.9% and 20.3%, Respectively

First Quarter Highlights

• Combined ratio of 91.7%; combined ratio, excluding catastrophes(1), of 85.4%

• Catastrophe losses of $98.9 million, or 6.3 points of the combined ratio

• Net premiums written increase of 3.2%*

• Renewal price increases(2) of 8.6% in Core Commercial, 8.4% in Personal Lines, and 4.6% in Specialty

• Rate increases(2) of 7.5% in Core Commercial, 4.3% in Personal Lines, and 2.4% in Specialty

• Loss and loss adjustment expense (LAE) ratio of 61.0%, 2.3 points below the prior-year quarter

• Current accident year loss and LAE ratio, excluding catastrophes(3), of 56.3%, 2.0 points below the prior-year quarter

• Net investment income of $126.9 million, up 19.6% from the prior-year quarter

• Book value per share of $101.86, up 1.0% from December 31, 2025; excluding net unrealized depreciation on fixed maturity investments, net of tax(4), book value per share increased 2.8%

WORCESTER, Mass., April 29, 2026 - The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $186.8 million, or $5.20 per diluted share, in the first quarter of 2026, compared to $128.2 million, or $3.50 per diluted share, in the prior-year quarter. Operating income(5) was $188.5 million, or $5.25 per diluted share, in the first quarter of 2026, compared to $141.8 million, or $3.87 per diluted share, in the prior-year quarter. The company reported net and operating return on equity(6) of 20.9% and 20.3%, respectively, in the first quarter of 2026.

“We delivered excellent first quarter results, with an operating return on equity of over 20% while generating balanced top‑line growth and building for the future,” said John C. Roche, president and chief executive officer at The Hanover. “Our performance underscores disciplined execution and the cumulative impact of prior pricing and property underwriting actions that are now bearing fruit. In Personal Lines, we sustained strong margins, delivering solid growth and demonstrating the effectiveness of our state‑specific growth strategies. Core Commercial performance remained strong, with healthy margins, resilient pricing, and balanced and accelerating premium growth, particularly in Small Commercial. Specialty once again delivered exceptional profitability and robust premium increases in targeted segments - Management Liability, Surety, Specialty GL and E&S - as our team navigated pockets of soft property market conditions through pricing rigor and a continued focus on disciplined risk selection. Supported by strong recent results, a diversified portfolio, and an experienced, agile team, we remain focused on executing effectively and delivering strong returns in a dynamic market environment.”

(1) See information about this and other non-GAAP measures and definitions, including Operating Income and Operating Return on Equity in the headline, used throughout this press release on the final pages of this document.

*Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year.

The Hanover Insurance Group, Inc. may also be referred to as “The Hanover” or “the company” interchangeably throughout this press release.

“We are extremely pleased with our financial metrics this quarter, including first quarter record operating earnings per share of $5.25 and a combined ratio of 91.7%,” said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. “Our ability to sustain strong underwriting margins is evident in the 2.4-point improvement in our ex-CAT combined ratio compared to the prior-year quarter. Once again, we delivered strong net investment income, with growth of nearly 20%, as higher cash flows and yields continued to propel our growing earnings base. Our reserve position remains robust, demonstrated by favorable prior-year development across all major segments. We continue to deploy capital thoughtfully, including the repurchase of 580,000 shares, totaling $101 million year-to-date through April 28th – further augmenting the long-term value of our organization."

First Quarter 2026 Highlights

Three months ended

March 31

($ in millions, except per share data)

2026

2025

Net premiums written

$

1,559.7

$

1,510.8

Growth

3.2

%

3.9

%

Net premiums earned

$

1,570.6

$

1,508.5

Current accident year loss and LAE ratio, excluding catastrophes

56.3

%

58.3

%

Prior-year development ratio

(1.6)

%

(1.3)

%

Catastrophe ratio

6.3

%

6.3

%

Expense ratio(7)

30.7

%

30.8

%

Combined ratio

91.7

%

94.1

%

Combined ratio, excluding catastrophes

85.4

%

87.8

%

Current accident year combined ratio, excluding catastrophes

87.0

%

89.1

%

Net income

$

186.8

$

128.2

per diluted share

8-K

0000944695false00009446952026-02-032026-02-03

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 3, 2026

THE HANOVER INSURANCE GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware

1-13754

04-3263626

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

440 Lincoln Street, Worcester, Massachusetts (Address of principal executive offices)

01653 (Zip Code)

(508) 855-1000 Registrant’s telephone number, including area code:

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of each exchange on which registered

Common Stock, $.01 par value

THG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition. The following information is being furnished under Item 2.02 – Results of Operations and Financial Condition. Such information, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. On February 3, 2026, The Hanover Insurance Group, Inc. (the Company) issued a press release announcing its financial results for the quarter ended December 31, 2025. The release is furnished as Exhibit 99.1 hereto. Additionally, on February 3, 2026, the Company made available on its website unaudited financial information contained in its Financial Supplement for the period ended December 31, 2025. The supplement is furnished as Exhibit 99.2 hereto. Item 9.01 Financial Statements and Exhibits.

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits.

The following exhibits are furnished herewith.

Exhibit 99.1

Press Release, dated February 3, 2026, announcing the Company’s financial results for the quarter ended December 31, 2025.

Exhibit 99.2

The Hanover Insurance Group, Inc. Unaudited Financial Supplement for the period ended December 31, 2025.

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

Exhibit Index

Exhibit 99.1

Press Release, dated February 3, 2026, announcing the Company’s financial results for the quarter ended December 31, 2025.

Exhibit 99.2

The Hanover Insurance Group, Inc. Unaudited Financial Supplement for the period ended December 31, 2025.

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

The Hanover Insurance Group, Inc. (Registrant)

Date: February 3, 2026

By:

/s/ Jeffrey M. Farber

Jeffrey M. Farber

Executive Vice President and Chief Financial Officer

4

8-K

false000094469500009446952025-10-292025-10-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 29, 2025

THE HANOVER INSURANCE GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware

1-13754

04-3263626

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

440 Lincoln Street, Worcester, Massachusetts (Address of principal executive offices)

01653 (Zip Code)

(508) 855-1000 Registrant’s telephone number, including area code:

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of each exchange on which registered

Common Stock, $.01 par value

THG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition. The following information is being furnished under Item 2.02 – Results of Operations and Financial Condition. Such information, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. On October 29, 2025, The Hanover Insurance Group, Inc. (the Company) issued a press release announcing its financial results for the quarter ended September 30, 2025. The release is furnished as Exhibit 99.1 hereto. Additionally, on October 29, 2025, the Company made available on its website unaudited financial information contained in its Financial Supplement for the period ended September 30, 2025. The supplement is furnished as Exhibit 99.2 hereto. Item 9.01 Financial Statements and Exhibits.

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits.

The following exhibits are furnished herewith.

Exhibit 99.1

Press Release, dated October 29, 2025, announcing the Company’s financial results for the quarter ended September 30, 2025.

Exhibit 99.2

The Hanover Insurance Group, Inc. Unaudited Financial Supplement for the period ended September 30, 2025.

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

Exhibit Index

Exhibit 99.1

Press Release, dated October 29, 2025, announcing the Company’s financial results for the quarter ended September 30, 2025.

Exhibit 99.2

The Hanover Insurance Group, Inc. Unaudited Financial Supplement for the period ended September 30, 2025.

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

The Hanover Insurance Group, Inc. (Registrant)

Date: October 29, 2025

By:

/s/ Jeffrey M. Farber

Jeffrey M. Farber

Executive Vice President and Chief Financial Officer

4