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The Hanover Insurance Group's Third Quarter Performance

Overview of Financial Results

On October 28, 2026, The Hanover Insurance Group, Inc. (NYSE: THG) announced its third quarter financial results, reporting a net income of $172.6 million, translating to $4.86 per diluted share. This is a slight decrease from the $178.7 million, or $4.90 per diluted share, earned during the same period last year. Conversely, their operating income saw a rise to $183.1 million, or $5.15 per diluted share, compared to $185.6 million, or $5.09, in Q3 2025.

The company's net return on equity was an impressive 19.4%, while the operating return was 18.7% in this quarter, down from 20.6% and 19.6%, respectively, for the first nine months of 2026. These figures underline the company's robust financial health and strategic execution.

Key Takeaways from Q3

The third quarter was marked by significant highlights:

• - The combined ratio stood at 92.3%, with an improved ratio of 85.5% when hazardous events were excluded.
• - Catastrophe losses registered at $109.7 million, or 6.8 points on the combined ratio, which reflects a critical challenge that impacted their overall performance.
• - Notably, the net premiums written rose by 3.1%, driven by rate increases averaging 8.7% in personal lines, 7.4% in core commercial, and 4.3% in specialty segments.

Strategic Insights

John C. Roche, the company’s president and CEO, expressed confidence in The Hanover's ability to execute strategic initiatives that foster growth across diverse sectors. He emphasized, “With an operational return on equity of 18.7% and record earnings per share, our performance showcases excellent underwriting execution, which is critical in dynamically changing market conditions.”

Furthermore, Roche mentioned the investments made in technology and artificial intelligence, which are set to strengthen future operations and profitability.

Jeffrey M. Farber, Executive Vice President and Chief Financial Officer, also highlighted the 12.7% increase in net investment income, totaling $131.9 million. Increased earned yields, robust cash flows, and enhanced partnership income were major contributors to this growth.

The company's capital management strategies were evident through the repurchase of approximately $86 million in stock during the quarter, with totalYear-to-date repurchases reaching approximately $263 million by the end of October.

Detailed Segment Performance

Core Commercial

The Core Commercial segment reported operating income before taxes of $55.5 million, though this marked a decline from $65.1 million a year prior. The combined ratio rose to 100.5%, impacted by catastrophe losses amounting to $45.3 million in the quarter.

Specialty

The Specialty segment showcased resilience, with operating income reaching $88.1 million — an increase from $78.2 million year-on-year. The combined ratio improved to 84.0%, aided by favorable reserve developments.

Personal Lines

Personal Lines operating income before taxes was $103.6 million, slightly better than the $101.1 million recorded in Q3 2025, with a combined ratio of 89.7%.

Conclusion

As The Hanover Insurance Group moves forward into the next quarters of 2026, its consistent performance, strategic foresight, and investment in technology suggest a robust trajectory for long-term profitability and stakeholder value creation. Stakeholders can look ahead with optimism as the company maintains its commitment to delivering exceptional insurance solutions through select independent agents and brokers.

For further inquiries, investors can access the quarterly earnings conference call on October 29, at 10:00 AM ET via The Hanover's website.

About The Hanover

Founded to provide innovative insurance solutions, The Hanover Insurance Group has established itself as a key player in the property and casualty insurance industry, ensuring its services meet the diverse needs of small and mid-sized businesses, households, and individuals.