The Hanover Insurance Group Inc

Latest Results (19.11.2025):

The Hanover Insurance Group Inc reported strong financial results for the fourth quarter and full year 2024. In the fourth quarter, net income rose to $167.9 million (or $4.59 per diluted share) compared to $107.9 million last year, and operating income increased to $194.6 million (or $5.32 per diluted share) from $113.1 million. For the full year, net income surged to $426.0 million (or $11.70 per diluted share) versus $35.3 million in the prior period, with operating income reaching $485.9 million (or $13.34 per diluted share). Additionally, the company achieved strong returns on equity, improved combined ratios, premium growth, and enhanced shareholder returns.

Profitability and Returns

In the fourth quarter of 2024, The Hanover Insurance Group Inc achieved a net return on equity of 23.5% and an operating return on equity of 24.4%, while the full year figures reflected returns of 16.1% and 15.8% respectively. Notable increases in net income and operating income underscore the company’s strong profitability.

Operating and Combined Ratios

The fourth quarter combined ratio stood at 89.2%, improving further to 87.5% when excluding catastrophe effects. For the full year 2024, the combined ratio was 94.8% (88.4% excluding catastrophes). In addition, the loss and loss adjustment expense ratio improved by 6.7 points in the fourth quarter relative to the prior-year quarter, demonstrating effective cost management and underwriting discipline.

Premium Growth and Pricing Strategies

Net premiums written increased by 7.4% in the fourth quarter of 2024, with strong performance across segments. Renewal price increases were impressive, registering 14.2% in Personal Lines, 11.8% in Core Commercial, and 9.5% in Specialty, complemented by significant rate increases. This robust pricing strategy has continued to drive premium growth and solidify market positioning.

Investment Income and Shareholder Returns

The Hanover reported net investment income of $100.7 million in the fourth quarter—up 23.4% from the prior-year quarter—and $372.6 million for the full year, reflecting the benefits of higher reinvestment rates and cash flows. Additionally, the Board of Directors increased the regular quarterly dividend by 5.9% on December 2, 2024, marking another milestone in the company’s commitment to shareholder value.