The Hanover Insurance Group, Inc., a property and casualty insurer, has announced its financial results for the first quarter of 2026, reporting a net operating income of $186.8 million, up from the $128.2 million reported in the same period the year.
The company achieved a combined ratio of 91.7% in Q1 2026, an improvement compared to the 94.1% recorded in Q1 2025.
Excluding the impact of catastrophe losses, the Q1 2026 combined ratio stood at 85.4%. Catastrophe losses amounted to $98.9 million, contributing 6.3 points to the overall combined ratio.
Net and operating return on equity was strong, standing at 20.9% and 20.3%, respectively, in the first quarter of 2026.
Operating income rose to $188.5 million in Q1 2026, compared to $141.8 million in the prior-year quarter. Net premiums written stood at $1.6 billion, a 3.2% year-on-year increase.
Core Commercial operating income before income taxes saw year-on-year improvement, standing at $74.8 million in Q1 2026, with a combined ratio of 96.6%.
The segment’s net premiums written were $630.4 million in Q1 2026, up 4.3% from the prior-year quarter, reflecting growth of 6.4% in small commercial and 1.5% in middle market, both accelerating from the fourth quarter of 2025.
At $84 million, the Specialty segment experienced operating income before income taxes year-on-year increase, with a combined ratio of 84.2%.
Catastrophe losses stood at $9.6 million in the quarter, inclusive of $15.4 million of current year losses, and $5.8 million of favourable prior-year catastrophe reserve development.
Net premiums written were $366.7 million in the first quarter of 2026, up 2.3% from the prior-year quarter.
Personal Lines operating income before income taxes saw a slight year-on-year decrease, to $89.2 million, with a combined ratio of 91.5%.
Catastrophe losses were $58.9 million, inclusive of $80.2 million of current year losses, and $21.3 million of favourable prior-year catastrophe reserve development primarily due to lower-than-estimated loss severity, largely from 2025 events.
Net premiums written were $562.6 million in the first quarter of 2026, up 2.7% compared to the prior-year quarter.
According to The Hanover, renewal price increases of 8.6% in Core Commercial, 8.4% in Personal Lines, and 4.6% in Specialty.
John C. Roche, president and chief executive officer at The Hanover, commented: “We delivered excellent first quarter results, with an operating return on equity of over 20% while generating balanced top‑line growth and building for the future. Our performance underscores disciplined execution and the cumulative impact of prior pricing and property underwriting actions that are now bearing fruit. In Personal Lines, we sustained strong margins, delivering solid growth and demonstrating the effectiveness of our state‑specific growth strategies.
“Core Commercial performance remained strong, with healthy margins, resilient pricing, and balanced and accelerating premium growth, particularly in Small Commercial. Specialty once again delivered exceptional profitability and robust premium increases in targeted segments – Management Liability, Surety, Specialty GL and E&S – as our team navigated pockets of soft property market conditions through pricing rigor and a continued focus on disciplined risk selection. Supported by strong recent results, a diversified portfolio, and an experienced, agile team, we remain focused on executing effectively and delivering strong returns in a dynamic market environment.”
