Hanover Insurance Group (THG) Reports Record-Breaking Financial Results

By Chris Stiles • Wednesday, February 04 12:11 • Permanent Link

The Hanover Insurance Group, Inc. has reported record-breaking financial results for the fourth quarter and full year of 2025 compared to the same periods in 2024.

In the fourth quarter of 2025, the company reported a net income of $198.5 million, or $5.47 per diluted share, compared to $167.9 million, or $4.59 per diluted share, in the fourth quarter of 2024. Operating income for the same period was $210.1 million, or $5.79 per diluted share, compared to $194.6 million, or $5.32 per diluted share, in the prior-year quarter.

For the full year 2025, The Hanover reported net income of $662.5 million, or $18.16 per diluted share, compared to $426.0 million, or $11.70 per diluted share, in 2024. Operating income for the full year was $696.2 million, or $19.09 per diluted share, compared to $485.9 million, or $13.34 per diluted share, in the prior year.

The company achieved record annual operating return on equity of 20.1% and 23.1% in the fourth quarter. Net written premiums for the year were $6.3 billion, reflecting solid year-over-year growth of approximately 4%.

The combined ratio for the full year 2025 was 91.6%, a significant improvement from 94.8% in the prior year. Catastrophe losses in 2025 amounted to $276.3 million, or 4.5 points of the combined ratio, while in 2024, catastrophe losses accounted for 6.4 points of the combined ratio.

The company also reported growth in net premiums written, with a 3.0% increase in the fourth quarter of 2025 compared to the same period in 2024 and a 3.9% increase for the full year 2025 compared to 4.7% in 2024.

Furthermore, The Hanover's book value per share increased by 27.4% from December 31, 2024, and net investment income increased by 22.0% from the prior year.

The company's disciplined execution across its businesses has led to a strong financial performance, with a robust balance sheet, significant financial flexibility, and an investment portfolio positioned to enhance future earnings.

Following these announcements, the company's shares moved -0.11%, and are now trading at a price of $169.96. For more information, read the company's full 8-K submission here.

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