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Hanover Insurance (THG)
NYSE:THG
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
4.36Last Year’s EPS
3.87Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a strongly positive operational and financial story: record earnings metrics, meaningful improvement in combined ratios (especially ex-CAT), robust investment income growth, book value appreciation, active capital returns, and constructive 2026 guidance. Challenges discussed were mostly tactical and manageable — competitive pressures in pockets of the portfolio, some reserve and severity adjustments (notably personal auto BI and commercial casualty), modestly elevated expense ratio due to investments and variable compensation, and ongoing CAT uncertainty. Overall, the company emphasized disciplined underwriting, portfolio management, and continued investments to support profitable growth.Company Guidance
Record Earnings and Strong ROE
Delivered record quarterly operating EPS and an all-time high annual operating return on equity (Jack: 20% full year) with an exceptional operating ROE reported at 23.1% in the fourth quarter (Jeff).
Improved Combined Ratios and Underlying Profitability
Fourth quarter combined ratio of 89.0% and full year combined ratio of 91.6%, with full-year combined ratio ex-CAT at 87.1% (1.3 points better vs. 2024) and Q4 underlying consolidated loss ratio improving 1.1 points to 57.1%.
Personal Lines Margin and Price Strength
Personal Lines net written premium growth: Q4 +4.4%, full year +3.7%. Personal Lines current accident year ex-CAT combined ratio: 85.3% (year) and 85.4% (Q4). Renewal pricing in the quarter averaged 9.2% (auto +6.9%, home +12.3%, umbrella ~20%). Homeowners ex-CAT loss ratio improved 6.4 points to 45.8% for the year (Q4 36.6%, down 4.6 points).
Core Commercial Profitability and Growth
Core Commercial net written premiums grew +3.6% for the year and +2.5% for the quarter (or +4.1% Q4 excluding reinstatement premium impact). Q4 ex-CAT current accident year combined ratio improved 2.4 points YoY to 91.6% and ex-CAT loss ratio improved to 57.4% in Q4 (down 1.5 points). Retention strong at 85.3% (up ~1 point from Q3).
Small Commercial Outperformance
Small Commercial delivered nearly +5% net written premium growth in the quarter and year, with double-digit new business growth, double-digit renewal price increases, and expanded distribution and product rollout (Workers' Compensation Advantage in 17 states, national rollout targeted by end of 2026).
Specialty Segment Strength and Execution
Specialty current accident year combined ratio ex-CAT: 87.4% (year) and 89.5% (Q4); ex-CAT loss ratio ~50.1% for the year (in line with low-50s expectation). Specialty saw robust double-digit growth in E&S and surety and accelerated management liability growth; Q4 favorable prior-year reserve development of 5.3 points in Specialty.
Investment Income and Portfolio Positioning
Net investment income increased +22% for the year to $454.4 million (Q4 +24.9%), benefiting from higher reinvestment yields, partnership income and portfolio repositioning. Fixed maturity portfolio carries A+ weighted average rating with 95% investment grade; portfolio duration ~4.3 years.
Capital Returns and Balance Sheet Strength
Book value rose ~27% in 2025 to $100.90 (ex-unrealized +15% to $104.21). Raised quarterly dividend +5.6% to $0.95 (21st consecutive increase). Repurchased ~754,000 shares for $130M in 2025 (Q4: 307,000 shares/$55M) and repurchased ~$44M of shares through Jan 30.
Conservative Reserving and Prior-Year Favorability
Favorable prior-year reserve development ex-CAT across each segment in Q4 and full year; company emphasized prudent reserving with additions for PL auto BI severity when appropriate and higher IBNR added for recent years to support balance sheet strength.
Positive 2026 Guidance
Guidance calls for accelerated consolidated net written premium growth to mid-single-digits in 2026, net investment income growth mid- to upper-single-digits, combined ratio ex-CAT targeted 88%-89%, and maintained CAT load guidance at 6.5% for the year (Q1 CAT load 6.1%).
THG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
THG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $174.05 | $175.07 | +0.59% |
Oct 29, 2025 | $167.52 | $169.38 | +1.11% |
Jul 30, 2025 | $163.58 | $169.90 | +3.87% |
Apr 30, 2025 | $163.57 | $163.07 | -0.31% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Hanover Insurance (THG) report earnings?
Hanover Insurance (THG) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is Hanover Insurance (THG) earnings time?
Hanover Insurance (THG) earnings time is at May 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is THG EPS forecast?
THG EPS forecast for the fiscal quarter 2026 (Q1) is 4.36.