Hanover Insurance Group Inc · NYSE:THG
Hanover Insurance — Q4 2025 Earnings Presentation
24 slides from Hanover Insurance's earnings presentation, Feb 4, 2026
Slide 1: Fourth Quarter and Full-Year 2025 Results
The Hanover Insurance Group, Inc. Fourth Quarter and Full-Year 2025 Results February 3, 2026 To be read in conjunction with the press release dated February 3, 2026, and conference call scheduled for February 4, 2026. Please also see important information regarding forward-looking statements and add
Slide 2: Excellent Fourth Quarter and Full-Year 2025 Operating Results
Excellent Fourth Quarter and Full-Year 2025 Operating Results Fourth quarter highlights • Record fourth quarter net and operating income(1) per diluted share of $5.47 and $5.79, respectively • Net and operating return on equity(2) of 22.7% and 23.1%, respectively • Combined ratio of 89.0%; combined
Slide 3: Consolidated Financial Results
Consolidated Financial Results Three months ended Year ended ($ in millions, except per share amounts) December 31, December 31, December 31, December 31, 2024 2025 2024 2025 Net income $167.9 $198.5 $426.0 $662.5 Per diluted share $4.59 $5.47 $11.70 $18.16 Operating income before interest expense a
Slide 4: Fourth Quarter 2025 Underwriting Results
Fourth Quarter 2025 Underwriting Results ($ in millions) Net premiums written and growth • Combined ratio (CR) of 89.0%, 0.2 points improved ↑ 4.5% from the prior-year quarter ↑ 3.9% ↑ 4.1% ↑ 7.4% ↑ 3.0% • Catastrophe losses of $27.0 million, or 1.7%, which was favorable to the company’s fourth quar
Slide 5: Full-Year 2025 Underwriting Results
Full-Year 2025 Underwriting Results ($ in millions) Net premiums written and growth • Combined ratio of 91.6% in the full year 2025, 3.2 points improved from the prior year ↑ 4.7% ↑ 3.9% • Catastrophe losses of $276.3 million, or 4.5%, which was lower than the prior year and the company’s CAT load a
Slide 6: Core Commercial Underwriting Highlights
Core Commercial Underwriting Highlights Three months ended Year ended • Combined ratio, ex-CAT, of 91.3%, improved Fourth quarter results December 31 December 31 ($ in millions) 2024 2025 2024 2025 2.2 points from the prior-year quarter Net premiums written $500.5 $512.8 $2,195.5 $2,273.7 • Current
Slide 7: Core Commercial Growth Highlights
Core Commercial Growth Highlights • Net premiums written increased 2.5% in the ($ in millions) Net premiums written and growth fourth quarter, or 4.1% excluding reinstatement premiums ↑ 2.5% $512.8 $500.5 $2,195.5 ↑ 3.6% $2,273.7 • Growth of 4.8% in small commercial, Fourth quarter results reflectin
Slide 8: Specialty Underwriting Highlights
Specialty Underwriting Highlights Three months ended Year ended December 31 December 31 • Combined ratio, ex-CAT, of 84.2%, compared Fourth quarter results ($ in millions) 2024 2025 2024 2025 to 80.4% in the prior-year quarter Net premiums written $331.8 $335.8 $1,373.9 $1,441.5 • Current accident y
Slide 9: Specialty Growth Highlights
Specialty Growth Highlights • Net premiums written increased 1.2% in ($ in millions) Net premiums written and growth the fourth quarter, or 3.6% excluding reinstatement premiums $331.8 ↑ 1.2% ↑ 4.9% $335.8 $1,373.9 $1,441.5 • The company’s emphasis on the small $19.7 $26.3 $85.4 $100.6 account space
Slide 10: Personal Lines Underwriting Highlights
Personal Lines Underwriting Highlights Three months ended Year ended • Combined ratio, ex-CAT, of 85.3%, compared to December 31 December 31 85.9% in the prior-year quarter ($ in millions) 2024 2025 2024 2025 Net premiums written $612.8 $640.0 $2,514.2 $2,606.9 • Current accident year loss and LAE r
Slide 11: Personal Lines Growth Highlights
Personal Lines Growth Highlights ($ in millions) Net premiums written and growth ↑4.4% ↑ 3.7% • Net premiums written growth of 4.4% in the fourth quarter, a sequential acceleration, driven $640.0 $2,514.2 $2,606.9 by strong pricing increases and higher Fourth quarter results $612.8 retention • Deliv
Slide 12: Net Investment Income Trends
Net Investment Income Trends ($ in millions) Net investment income* • Net investment income of $125.8 million in the fourth quarter, up 24.9% from the prior-year quarter, reflecting higher earned $125.8 Fourth quarter $117.0 yields and the continued investment of cashflows $100.7 $106.1 $105.5 $13.7
Slide 13: Investment Portfolio – Total Invested Assets and Cash of $11.5 Billion
Investment Portfolio – Total Invested Assets and Cash of $11.5 Billion As of December 31, 2025 High-quality, well-diversified investment portfolio Fixed maturities: $9.5 billion Equities, cash and other: $2.0 billion Marketable 3% securities ETFs Preferred and 10% 6% 3% 1%other Industrials 5% 27% 12
Slide 14: The Hanover Insurance Group 2026 Outlook
The Hanover Insurance Group 2026 Outlook* Metric Full-year 2026 expectations** Net premiums written growth • Mid-single digit Expense ratio • 30.3% Combined ratio, ex-CAT*** • 88% – 89% Catastrophe loss ratio • 6.5% Net investment income growth • Mid- to upper-single digits * Based on year-end 2025
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: End notes continued
End notes continued (4) Net premiums written, excluding reinstatement premiums, is a non-GAAP measure. Net premiums written (which includes reinstatement premiums) is the most directly comparable GAAP measure. A reconciliation of GAAP net premiums written to net premiums written, excluding reinstate
Slide 23: End notes continued
End notes continued (6) Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losse
Slide 24: End notes continued
End notes continued (7) 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 December 31 Septem
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