The Hanover Insurance Group reported third‑quarter 2025 results, posting net income of $178.7 million, or $4.90 per diluted share, and operating income of $185.6 million, or $5.09 per diluted share. Net and operating return on equity rose to 21.5% and 21.1%, respectively, the highest levels the company has achieved in a quarter.
Net premiums written for the quarter reached $1,738.9 million, up 4.5% year‑over‑year, while net premiums earned climbed to $1,550.7 million. Operating income before taxes increased to $186.4 million, a $36.7 million jump from the same period in 2024, driven by stronger underwriting performance and higher investment yields. The company’s combined ratio fell to 91.1%, with an 88.1% ratio excluding catastrophes, reflecting improved loss control and pricing power.
Net investment income rose 27.5% to $117.0 million, supported by a 4.31% earned yield on the investment portfolio. The company completed a $55 million share‑repurchase program during the quarter, reducing outstanding shares and supporting shareholder value. These results reinforce the company’s long‑term growth trajectory and margin‑recapture strategy.
The earnings beat analyst consensus estimates for earnings per share, which ranged from $3.79 to $4.26, but revenue of $1.67 billion was slightly below the consensus range of $1.68 billion to $1.77 billion. The company did not provide new forward guidance at the time of the release.
Management highlighted disciplined underwriting, pricing power, and higher earned yields as key drivers of the improved results. The company emphasized its focus on maintaining a strong balance sheet and returning value to shareholders through dividends and share repurchases.
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