Hanover Insurance Group Inc · NYSE:THG
Hanover Insurance — Q1 2026 Earnings Presentation
29 slides from Hanover Insurance's earnings presentation, Apr 30, 2026
Slide 1: Conference Call on Q1/2026 financial results
Conference Call on Q1/2026 financial results Hannover, 11 May 2026
Slide 2: Agenda
Group overview 3 1 Group overview 3 Property Casualty reinsurance 6 2 Property & Casualty reinsurance 6 Life Health reinsurance 9 3 Life & Health reinsurance 9 Investments 12 4 Investments 12 Reserving update 14 5 Reserving update 14 Outlook 2026 16 6 Outlook 2026 16 Appendix 19 Appendix 19 2 Confer
Slide 3: Group overview
1 Group overview 3 Conference Call on Q1/2026 financial results
Slide 4: Strong underlying profitability allowed for continued increase in reserve resiliency
| 1 Group overview | 2 | 3 | 4 | 5 | 6 | Strong underlying profitability allowed for continued increase in reserve resiliency Business development in Q1/2026 supports targets for 2026 Group P&C reinsurance Reinsurance revenue Group net income Reinsurance revenue (gross) Combined ratio 6,970 6,523 71
Slide 5: Shareholder's equity increased by 7.3%, driven by Q1 earnings and currency translation
| 1 Group overview | 2 | 3 | 4 | 5 | 6 | Shareholder’s equity increased by 7.3%, driven by Q1 earnings and currency translation Increase in CSM and RA mainly reflects successful January renewals in P&C Change in shareholders' equity Contractual Service Margin (CSM) and Risk Adjustment (RA) Total +8.
Slide 6: Property & Casualty reinsurance
2 Property & Casualty reinsurance 6 Conference Call on Q1/2026 financial results
Slide 7: Strong underlying profitability allowed for additional reserve resiliency
| 1 | 2 Property & Casualty reinsurance | 3 | 4 | 5 | 6 | Strong underlying profitability allowed for additional reserve resiliency Growth target in traditional business remains achievable, supported by strong April 2026 renewals Property & Casualty R/I Q1/2025 Q1/2026 ∆-% YTD Reinsurance revenue (g
Slide 8: Seasonal strong increase in CSM driven by January 2026 renewals
| 1 | 2 Property & Casualty reinsurance | 3 | 4 | 5 | 6 | Seasonal strong increase in CSM driven by January 2026 renewals Reinsurance service result reflects strong underlying profitability and additional reserve resiliency Reinsurance Service Result Contractual Service Margin (net) 27 124 731 1,126
Slide 9: Life & Health reinsurance
3 Life & Health reinsurance 9 Conference Call on Q1/2026 financial results
Slide 10: L&H performance fully supports full-year target and reflects favourable underlying profitability
| 1 | 2 | 3 Life & Health reinsurance | 4 | 5 | 6 | L&H performance fully supports full-year target and reflects favourable underlying profitability Strong growth reflected in pleasing new CSM generation of 249 m. Life & Health R/I Q1/2025 Q1/2026 ∆-% YTD Reinsurance revenue (gross) 1,883 2,043 +8.5
Slide 11: Reinsurance Service result on track to meet full-year target
| 1 | 2 | 3 Life & Health reinsurance | 4 | 5 | 6 | Reinsurance Service result on track to meet full-year target CSM release slightly ahead of expectations Reinsurance Service Result Contractual Service Margin (net) 113 249 46 16 6,461 6,275 100 -225 49 254 225 -133 +6.6% CSM release RA change Exper
Slide 12: Investments
4 Investments 12 Conference Call on Q1/2026 financial results
Slide 13: Resilient investment portfolio delivers RoI above target
| 1 | 2 | 3 | 4 Investments | 5 | 6 | Resilient investment portfolio delivers RoI above target in m. EUR Q1/2025 Q1/2026 RoI YTD 1) Ordinary investment income 645 625 3.7% − Ordinary income reflects higher income from fixed income and Realised gains/losses 6 13 0.1% lower distributions from Alternat
Slide 14: Reserving update
5 Reserving update 14 Conference Call on Q1/2026 financial results
Slide 15: Undiscounted LIC resiliency reserves substantially increased to EUR 3,237 m.
| 1 | 2 | 3 | 4 | 5 Reserving update | 6 | Undiscounted LIC resiliency reserves substantially increased to EUR 3,237 m. Additional risk adjustment of 850m. brings prudency level to 8.6% of nominal net reserves Development of resiliency reserves reviewed by WTW 3,237 2,523 2,057 1,887 1,865 1,813 1,6
Slide 16: Outlook 2026
6 Outlook 2026 16 Conference Call on Q1/2026 financial results
Slide 17: Continued opportunities for profitable growth
| 1 | 2 | 3 | 4 | 5 | 6 Outlook 2026 | Continued opportunities for profitable growth (+18.8%), ytd 2026 renewals growth of 5.6% Reinsurance rates remain adequate despite overall risk-adjusted price change of -3.6% 2 Jan – 1 Apr 2026: Traditional Treaty Business Estimated premium income Americas1) −
Slide 18: Unchanged guidance for FY 2026
| 1 | 2 | 3 | 4 | 5 | 6 Outlook 2026 | Unchanged guidance for FY 2026 Strong earnings contribution from all three “profit engines” Expected contribution Group financial guidance 2026 Revenue growth1) mid-single-digit % Property & Casualty Combined ratio2) < 87% Group net income3) EUR ≥ 2.7 bn. Life
Slide 19: Appendix
Appendix 19 Conference Call on Q1/2026 financial results
Slide 20: Our business groups at a glance
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Our business groups at a glance Q1/2025 vs. Q1/2026 Property & Casualty R/I Life & Health R/I Total in m. EUR Q1/2025 Q1/2026 D-% Q1/2025 Q1/2026 D-% Q1/2025 Q1/2026 D-% Reinsurance revenue (gross) 5,087 4,480 -11.9% 1,883 2,043 8.5% 6,970 6,523 -6.4% Reinsurance
Slide 21: Large losses Q1/2026 EUR 273 m. below budget of EUR 480 m.
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Large losses Q1/2026 EUR 273 m. below budget of EUR 480 m. Natural and man-made catastrophe losses in excess of EUR 10 m. gross in m. EUR Gross Net Large loss budget (net) Large loss budget YTD (net) 2,944 2,649 2700 2,506 2,563 2,127 1,970 1,790 1,722 1,725 1800
Slide 22: Large losses from natural catastrophes and man-made large losses below expectation
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Large losses from natural catastrophes and man-made large losses below expectation Catastrophe losses1) in m. EUR Date Gross Net Wildfires, Australia 7 - 16 Jan 11.9 11.8 Flood, Southern Africa 9 - 19 Jan 11.5 11.5 Storm "Fern", USA, Canada 23 - 27 Jan 155.8 124.
Slide 23: Ordinary income from fixed income benefiting from loss realisation in 2025
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Ordinary income from fixed income benefiting from loss realisation in 2025 Asset class 2024 2025 Q1/2026 Ordinary income split Q1/2026 Fixed Income 86% 87% 86% STI / Others Governments 38% 36% 36% Real Assets 0% 12 % Semi-governments 10% 12% 11% Private and Gover
Slide 24: High-quality fixed-income book well-balanced
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | High-quality fixed-income book well-balanced Geographical allocation mainly in accordance with our broad business diversification Semi- Pfandbriefe, Short-term Governments governments Corporates Covered bonds, ABS investments Total AAA 24% 62% 0% 80% - 27% AA 55%
Slide 25: Duration and currency mix of assets driven by asset-liability management
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Duration and currency mix of assets driven by asset-liability management Currency split of investments Others − Modified duration of fixed-income mainly congruent 11% with liability- and capital-driven targets CAD EUR 4% 26% 3.7 AUD 3.4 7% 4.9 4.9 Modified durati
Slide 26: Scenario analysis
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Scenario analysis Credit and Alternatives risks in focus Change in market Change in market Portfolio Scenario value value through P&L in m. EUR in m. EUR +50 bps -1,235 -31 Fixed-income securities +100 bps -2,415 -62 Credit spreads +50% -810 -74 Equity (listed an
Slide 27: Our Investor Relations contacts and financial calendar
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Our Investor Relations contacts and financial calendar 12-13 May 2026 Karl Steinle UBS Best of Europe Virtual One-on-One Director Investor & Rating Agency Relations Conference 2026 Tel: +49 511 5604 - 1500 20 May 2026 karl.steinle@hannover-re.com Berenberg Europe
Slide 28: Details on reserve review by WTW
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Details on reserve review by WTW − WTW’s review of the LIC claim reserves as at 31 December 2025 covered 98.7% of the gross and 99.7% of the net undiscounted Liability for Incurred Claims (“LIC”). Life reinsurance and health reinsurance business are excluded from
Slide 29: Disclaimer
| 1 | 2 | 3 | 4 | 5 | 6 | Appendix | Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investin
Hanover Insurance Group — Q1 2026 Earnings Presentation on 6ix