Hanover Insurance Q2 net income rises on lower catastrophe losses

Hanover Insurance group

28/07/2026 21:25

Overview
US property and casualty insurer's Q2 net income and operating EPS rose to record highs
Q2 net premiums written increased 4.6% from prior-year quarter
Company repurchased $55 mln in shares during the quarter

Outlook
Company says it enters the second half of 2026 with confidence in earnings streams
Hanover plans strategic outlook and financial update event in September for long-term targets

Result Drivers
UNDERWRITING PROFITABILITY - Lower combined ratio, especially in Personal Lines, driven by lower catastrophe losses and favorable prior-year reserve development
INVESTMENT INCOME - Net investment income rose 13.4% from prior-year quarter, due to higher earned yields and increased operating cash flows
PREMIUM GROWTH AND PRICING - Net premiums written increased 4.6%, supported by higher renewal price and rate increases across all segments

Company press release: ID:nPn563cTda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Premiums Written
 
$1.66 bln
 
Q2 EPS
 
$5.38
 
Q2 Net Income
 
$191.60 mln
 
Q2 Adjusted Combined Ratio
 
85.50%
 
Q2 Combined Ratio
 
91.20%
 
Q2 Expense Ratio
 
31.00%
 
Q2 Operating Income
 
$189.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Hanover Insurance Group Inc is $220.00, about 0.2% above its July 27 closing price of $219.52
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
July 27 - Cincinnati Financial's quarterly profit falls on higher catastrophe losses
July 27 - Brown & Brown's second-quarter profit rises on fee, commission growth
July 27 - Principal Financial profit rises on higher premiums, strength in retirement business

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)