Hanover Insurance Group Inc · NYSE:THG
Hanover Insurance — Q2 2025 Earnings Presentation
21 slides from Hanover Insurance's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Results
The Hanover Insurance Group, Inc. Second Quarter 2025 Results July 30, 2025 To be read in conjunction with the press release dated July 30, 2025, and conference call scheduled for July 31, 2025. Please also see important information regarding forward-looking statements and additional risks and uncer
Slide 2: Excellent Second Quarter 2025 Operating Results
Excellent Second Quarter 2025 Operating Results • Net and operating income(1) per diluted share of $4.30 and $4.35, respectively • Net and operating return on equity(2) of 20.1% and 18.7%, respectively • Combined ratio of 92.5%; combined ratio, excluding catastrophes(3), of 85.5% • Catastrophe losse
Slide 3: Consolidated Financial Results
Consolidated Financial Results Three months ended Six months ended ($ in millions, except per share amounts) June 30, June 30, June 30, June 30, 2024 2025 2024 2025 Net income $40.5 $157.1 $156.0 $285.3 Per diluted share $1.12 $4.30 $4.30 $7.80 Operating income before interest expense and income tax
Slide 4: Second Quarter 2025 Underwriting Results
Second Quarter 2025 Underwriting Results ($ in millions) Net premiums written and growth • Combined ratio (CR) of 92.5%, 6.7 points improved from the prior-year quarter ↑ 4.2% • Catastrophe losses of $107.5 million, or 7.0 points, ↑ 5.1% ↑ 3.9% ↑ 4.1% ↑ 7.4% favorable to second quarter assumption de
Slide 5: Core Commercial Underwriting Highlights
Core Commercial Underwriting Highlights Three months ended Six months ended June 30 June 30 ($ in millions) 2024 2025 2024 2025 • Combined ratio, ex-CAT, of 88.9%, was 0.2 Net premiums written $513.4 $536.0 $1,095.8 $1,140.6 points higher than the prior-year quarter, Growth 5.5% 4.4% 4.2% 4.1% drive
Slide 6: Core Commercial Growth Highlights
Core Commercial Growth Highlights ($ in millions) Net premiums written and growth $513.4 ↑ 4.4% $536.0 • Net premiums written increased 4.4% in the second quarter: $196.9 $201.7 • Growth of 5.6% in small commercial was an acceleration from the first quarter of 2025; encouraged by the momentum and ha
Slide 7: Specialty Underwriting Highlights
Specialty Underwriting Highlights Three months ended Six months ended June 30 June 30 ($ in millions) 2024 2025 2024 2025 Net premiums written $352.1 $368.2 $691.9 $726.5 • Combined ratio, ex-CAT, of 82.4%, an Growth 8.2% 4.6% 6.5% 5.0% improvement of 4.0 points from the prior-year Net premiums earn
Slide 8: Specialty Growth Highlights
Specialty Growth Highlights ($ in millions) Net premiums written and growth $368.2 • Net premiums written growth of 4.6% in the $352.1 ↑ 4.6% second quarter: $20.7 $23.4 • Delivered upper-single to double-digit $115.3 $123.1 growth across most profitable lines, including E&S, surety, and healthcare;
Slide 9: Personal Lines Underwriting Highlights
Personal Lines Underwriting Highlights Three months ended Six months ended June 30 June 30 ($ in millions) 2024 2025 2024 2025 Net premiums written $655.6 $679.6 $1,187.4 $1,227.5 • Combined ratio, ex-CAT, improved 5.1 points Growth 3.3% 3.7% 1.8% 3.4% from the prior-year quarter, driven by strong N
Slide 10: Personal Lines Growth Highlights
Personal Lines Growth Highlights ($ in millions) Net premiums written and growth ↑3.7% • Net premiums written growth of 3.7% in the second quarter, driven by strong pricing $655.6 $679.6 increases, improved retention, and meaningfully higher new business • Delivered approximately 8% growth in target
Slide 11: Net Investment Income Trends
Net Investment Income Trends ($ in millions) Net investment income* $106.1 $105.5 $100.7 $90.4 $91.8 $12.8 $7.1 • Net investment income of $105.5 million in the second $10.8 $9.5 quarter, up 16.7% from the prior-year quarter, reflecting $13.9 higher earned yields, as well as the continued investment
Slide 12: Investment Portfolio – Total Invested Assets and Cash
Investment Portfolio – Total Invested Assets and Cash of $10.2 Billion As of June 30, 2025 High-quality, well-diversified investment portfolio Fixed maturities: $9.1 billion Equities, cash and other: $1.1 billion 9% 5% Marketable Industrials Preferred 5% securities 26% ETFs and other 4% 9% 4% 2% 22%
Slide 13: About The Hanover
About The Hanover The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of ind
Slide 14: Forward-Looking Statements
Forward-Looking Statements Certain statements in this document and comments made by management may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words s
Slide 15: Additional Risks and Uncertainties
Additional Risks and Uncertainties Investors are further cautioned and should consider the risks and uncertainties in the company’s business that may affect such estimates and future performance that are discussed in the company’s most recently filed reports on Form 10-K and Form 10-Q and other docu
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures As discussed on page 39 of the company’s Annual Report on Form 10-K for the year ended December 31, 2024, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating inc
Slide 17: End notes
End notes (1) Operating income and operating income per diluted share are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings “Forward- Looking Statements” and “Non-GAAP Financial
Slide 18: End notes continued
End notes continued (2) Operating return on average equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see end note (1)), by average shareholders’ equity, excluding unrealized appreciation (depreciati
Slide 19: End notes continued
End notes continued (3) Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reco
Slide 20: End notes continued
End notes continued (4) Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risk
Slide 21: End notes continued
End notes continued (6) Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below. Period ended June 30 March 31 J
Hanover Insurance Group — Q2 2025 Earnings Presentation on 6ix