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The Hanover Insurance Group THG Core Commercial Lines — Underwriting Income Loss

Other segment segments

Personal Lines
$69.4M+175%
Specialty Lines
$42.2M-11.7%
All Other Segments
$0-100%

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Other financials

Income statement

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Revenue$1.7B+4.3%
Operating income$251.9M+20.0%
Net income$191.6M+22.0%
EPS (diluted)$5.38+25.1%

Balance sheet

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Cash & equivalents$266.1M+9.0%
Total debt$844.0M+7.6%
Total equity$3.7B+14.2%
Total assets$16.9B+7.2%

Cash flow

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Operating cash flow$212.3M+2.8%
CapEx$2.9M+70.6%
Free cash flow$209.4M+2.2%

Valuation

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Market cap$7.98B+28.5%
Enterprise value$8.56B+26.8%
P/E10.6×-0.6×
P/S1.2×+0.2×

Profitability

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Operating margin14.2%
Net margin11.2%+2.5pp
FCF margin18.5%+5.3pp

Returns & leverage

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Return on equity21.9%+2.7pp
Debt / equity0.2×0.0×

Where this comes from

Reported directly by The Hanover Insurance Group in its filing.

Tagged under the XBRL concept us-gaap:UnderwritingIncomeLoss.

The source filing: The Hanover Insurance Group’s 10-Q, filed July 29, 2026.

Filed
Jul 29, 2026, 5:02 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000944695-26-000014
(in millions)Three Months Ended / Core CommercialThree Months Ended / SpecialtyThree Months Ended / Personal LinesThree Months Ended / OtherThree Months Ended / Total
Prior year favorable catastrophe development(7.8)(3.2)(1.9)(12.9)
Total losses and LAE366.4187.7408.4962.5
Amortization of deferred acquisition costs and other underwriting expenses(1)189.7135.9174.7500.3
Underwriting income23.242.269.4134.8
Net investment income55.327.233.33.8119.6
Fees and other income1.31.23.76.2
Other segment items(2)(2.3)(2.2)(1.5)(2.7)(8.7)
Operating income before interest expense and income taxes$$77.5$68.4$104.91.1251.9

ITEM 1 - FINANCIAL STATEMENTS

FAQ

What is The Hanover Insurance Group's core commercial lines — underwriting income loss?
The Hanover Insurance Group (THG) reported core commercial lines — underwriting income loss of $23.2M in Q2 2026.
How has The Hanover Insurance Group's core commercial lines — underwriting income loss changed year-over-year?
The Hanover Insurance Group's core commercial lines — underwriting income loss decreased by 37.6% year-over-year, from $37.2M to $23.2M.
What is the long-term trend for The Hanover Insurance Group's core commercial lines — underwriting income loss?
Over 3 years (2022 to 2025), The Hanover Insurance Group's core commercial lines — underwriting income loss has grown at a 22.1% compound annual growth rate (CAGR), from -$28.7M to $52.2M.
What does core commercial lines — underwriting income loss mean?
This metric represents the profit or loss generated by the insurance underwriting activities of the commercial lines segment before investment income. It is calculated by subtracting incurred losses, loss adjustment expenses, and underwriting expenses from earned premiums. It serves as a primary indicator of the segment's core pricing discipline and risk selection effectiveness.

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