Q2 2026 Hanover Insurance Group Inc Earnings Call Transcript
Key Points
- The Hanover Insurance Group Inc (THG) delivered record second quarter performance with an operating return on equity of approximately 20% and operating earnings of $5.31 per diluted share.
- Net written premium growth accelerated to 4.6%, led by core commercial and specialty lines, while personal lines continued to generate strong margins.
- The company's Personal Lines business is benefiting from prudent underwriting and strong execution, with renewal pricing remaining above long-term loss cost trends.
- Core commercial segment delivered healthy growth and solid profitability, with net written premiums increasing by 7.2% in the second quarter.
- Specialty segment remains a key driver of profitable growth, with strong new business production and continued gains in underwriting execution.
- The expense ratio for the quarter was modestly elevated due to higher variable compensation for agents and employee incentive costs.
- Catastrophe losses were 5.7 points of the combined ratio, although this was below modeled expectations.
- The current accident year loss ratio for core commercial, excluding catastrophes, was 2.2 points higher than the prior year quarter.
- Partnership income was lower than expectations for the quarter, impacting overall investment performance.
- The company has been raising its casualty loss picks over several quarters, reflecting a cautious approach to potential industry-wide trends.
Good day, and welcome to the Hanover Insurance Group's second quarter earnings conference call. My name is Chris, and I will be your operator for today's call. (Operator Instructions) Please note that today's event is being recorded.
I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.
Thank you, operator. Good morning, and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; and Jeff Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Dick Lavey, our Chief Operating Officer and CEO elect; and Bryan Salvatore, President of Specialty Lines.
Before I turn the call over to Jack, let me note that our earnings press release financial supplement and a complete slide presentation for today's call are available in the Investors section of our website at
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