The Hanover Insurance Group Inc

Latest Results (03.04.2026):

The Hanover Insurance Group, Inc. reported strong Fourth Quarter 2024 results: net income of $167.9 million ($4.59 per diluted share) and operating income after tax of $194.6 million ($5.32 per diluted share), producing record quarterly net and operating ROE of 23.5% and 24.4%, respectively. The company delivered an underwriting combined ratio of 89.2% (87.5% excluding catastrophes), net premiums written growth of 7.4% in the quarter, and net investment income of $100.7 million (up 23.4% year-over-year). The Board raised the regular quarterly dividend 5.9% in December 2024 and repurchased ~170,000 shares for $26.7 million.

Profitability

Q4 2024 net income $167.9M ($4.59/share); operating income after tax $194.6M ($5.32/share). Net ROE 23.5% and operating ROE 24.4% — both quarterly records.

Underwriting results

Combined ratio 89.2% in Q4 (87.5% ex-CAT), a 5.0-point improvement versus prior-year quarter; catastrophe losses were modest at $26.0M (1.7 points). Current accident year loss & LAE ratio, ex-CAT, was 56.9%, materially better than a year ago.

Top-line growth & pricing

Net premiums written increased 7.4% in Q4. Renewal price increases: Personal Lines +14.2%, Core Commercial +11.8%, Specialty +9.5%. Reported rate increases were similarly strong across businesses.

Core Commercial (Q4 2024)

Net premiums written +7.5% in the quarter; small commercial grew ~9.3% and middle market ~5.0%. Combined ratio ex-CAT was modestly higher versus prior year (driven by conservative IBNR adjustments in some liability lines); prior-year reserve development slightly favorable.

Specialty (Q4 2024)

Net premiums written +8.8% (Q4); combined ratio ex-CAT improved about 1.1 points year-over-year. The segment benefitted from favorable prior-year reserve development (~$46.2M full-quarter favorability reported across periods) and earned pricing above loss trend.

Personal Lines (Q4 2024)

Net premiums written +6.6% in Q4 driven by pricing and new business. Combined ratio ex-CAT improved ~7.9 points year-over-year with sizable loss-ratio improvements (auto and homeowners both helped). Policies-in-force softened sequentially and year-over-year as management pursued margin improvement and CAT mitigation.

Investments

Q4 net investment income $100.7M (up 23.4% YoY), helped by higher bond reinvestment yields and cashflows. Total invested assets ~$9.9B (fixed maturities ~$8.6B), ~95% investment grade, weighted average quality A+, duration ~4.4 years.

Capital management & balance sheet

Board increased the regular quarterly dividend by 5.9% (Dec 2, 2024). Repurchased ~170,000 shares for $26.7M in Q4. Book value per share was $79.18 (up from $68.93 at 12/31/2023); book value per share excluding net unrealized on fixed maturities was $90.35. Debt/total capital ~21.6% at year-end.

Outlook (management guidance)

For full-year 2025 the company expects net premiums written growth 6–7%, expense ratio ~30.5%, combined ratio ex-CAT ~88.5–89.5%, catastrophe ratio ~6.5%, effective tax rate ~21%, and net investment income growth ~12–14%. Q1 2025 CAT load is 6.0% (company noted January CATs — largely California wildfires — were expected to be < $10M above the monthly plan).