We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hanover Insurance Q1 Earnings Top Estimates on Lower Cat Losses
Read MoreHide Full Article
Key Takeaways
THG posted Q1 2026 operating income of $5.25 per share, up 35.7% and above consensus.
THG's combined ratio improved to 91.7% despite $98.9M cat losses. Ex-cat ratio was 85.4%.
THG cut debt and repurchased $101M of shares YTD. Book value per share rose 1% to $101.86.
The Hanover Insurance Group, Inc. (THG - Free Report) posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%.
Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%.
The Hanover Insurance Group, Inc. Price, Consensus and EPS Surprise
THG Delivers Better Combined Ratio Despite Cat Losses
Underwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago.
Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio.
Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance.
Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses.
The Hanover’s Core Commercial Segment Benefits From Rate Action
Core Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts.
Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million in the prior-year period.
Specialty net premiums written increased 2.3% year over year to $366.7 million. Renewal price increases were 4.6% and rate increases were 2.4%, indicating steady momentum while maintaining underwriting discipline across the segment’s marine, professional, and other specialty offerings.
The segment produced a combined ratio of 84.2%, an improvement from 87.7% in the prior-year quarter. A lower total loss and loss adjustment expense ratio of 47.8% (down from 50.7%) helped lift GAAP underwriting profit to $56.1 million from $41.2 million, while the expense ratio was 36.4% compared with 37.0% a year earlier.
The Hanover’s Personal Lines Segment Mixed as Pricing Stays Firm
Personal Lines net premiums written rose 2.7% year over year to $562.6 million. Renewal price increases were 8.4% and rate increases were 4.3%, underscoring continued pricing traction as the company works to improve profitability in auto and homeowners lines.
Even with that pricing support, results were more mixed. The segment’s combined ratio was 91.5% compared with 89.7% a year earlier, as catastrophe losses remained elevated for the book, with a current-year catastrophe loss ratio of 12.4% versus 5.8% in the prior-year quarter. The total loss and LAE ratio was 65.8% compared with 64.4% a year ago, and GAAP underwriting profit totaled $52.3 million, down from $61.7 million.
THG Balance Sheet Advances With Book Value Increase
Hanover ended the quarter with book value per share of $101.86, up 1% from Dec. 31, 2025.
The investment portfolio expanded, with total investments rising 4% to $10.80 billion as of March 31, 2026, including fixed maturities of $9.98 billion. The company also reduced leverage, with short-term debt falling to $50.1 million from $375.0 million and long-term debt declining to $793.7 million from $843.3 million.
As of March 31, 2026, the operating insurance company's statutory capital and surplus were $3.54 billion, up from $3.34 billion as of Dec. 31, 2025.
Capital Deployment
From the start of the year till April 28, 2026, THG repurchased about 0.6 million shares for $101 million, of which about 0.5 million were repurchased during the first quarter of 2026 for $87 million. The company has about $72 million of remaining capacity under its existing share repurchase program.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written (NPW) decreased 1% to $1.3 billion. The figure was on par with our estimate.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year. Operating revenues increased 10.2% year over year to $467 million, which beat the Zacks Consensus Estimate by 0.1%.
Kinsale Capital’s underwriting income was $94.5 million, up 40% year over year. The combined ratio improved 470 basis points (bps) year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
Hanover Insurance Q1 Earnings Top Estimates on Lower Cat Losses
Key Takeaways
The Hanover Insurance Group, Inc. (THG - Free Report) posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%.
Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%.
The Hanover Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hanover Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hanover Insurance Group, Inc. Quote
THG Delivers Better Combined Ratio Despite Cat Losses
Underwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago.
Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio.
Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance.
Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses.
The Hanover’s Core Commercial Segment Benefits From Rate Action
Core Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts.
Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million in the prior-year period.
THG Specialty Segment Posts Strong Underwriting Profit
Specialty net premiums written increased 2.3% year over year to $366.7 million. Renewal price increases were 4.6% and rate increases were 2.4%, indicating steady momentum while maintaining underwriting discipline across the segment’s marine, professional, and other specialty offerings.
The segment produced a combined ratio of 84.2%, an improvement from 87.7% in the prior-year quarter. A lower total loss and loss adjustment expense ratio of 47.8% (down from 50.7%) helped lift GAAP underwriting profit to $56.1 million from $41.2 million, while the expense ratio was 36.4% compared with 37.0% a year earlier.
The Hanover’s Personal Lines Segment Mixed as Pricing Stays Firm
Personal Lines net premiums written rose 2.7% year over year to $562.6 million. Renewal price increases were 8.4% and rate increases were 4.3%, underscoring continued pricing traction as the company works to improve profitability in auto and homeowners lines.
Even with that pricing support, results were more mixed. The segment’s combined ratio was 91.5% compared with 89.7% a year earlier, as catastrophe losses remained elevated for the book, with a current-year catastrophe loss ratio of 12.4% versus 5.8% in the prior-year quarter. The total loss and LAE ratio was 65.8% compared with 64.4% a year ago, and GAAP underwriting profit totaled $52.3 million, down from $61.7 million.
THG Balance Sheet Advances With Book Value Increase
Hanover ended the quarter with book value per share of $101.86, up 1% from Dec. 31, 2025.
The investment portfolio expanded, with total investments rising 4% to $10.80 billion as of March 31, 2026, including fixed maturities of $9.98 billion. The company also reduced leverage, with short-term debt falling to $50.1 million from $375.0 million and long-term debt declining to $793.7 million from $843.3 million.
As of March 31, 2026, the operating insurance company's statutory capital and surplus were $3.54 billion, up from $3.34 billion as of Dec. 31, 2025.
Capital Deployment
From the start of the year till April 28, 2026, THG repurchased about 0.6 million shares for $101 million, of which about 0.5 million were repurchased during the first quarter of 2026 for $87 million. The company has about $72 million of remaining capacity under its existing share repurchase program.
Zacks Rank
THG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written (NPW) decreased 1% to $1.3 billion. The figure was on par with our estimate.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks
Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year. Operating revenues increased 10.2% year over year to $467 million, which beat the Zacks Consensus Estimate by 0.1%.
Kinsale Capital’s underwriting income was $94.5 million, up 40% year over year. The combined ratio improved 470 basis points (bps) year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.