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The Hanover Insurance Group THG Specialty Lines — Policyholder Benefits And Claims Incurred Net

Other segment segments

Personal Lines
$408.4M-8.8%
Core Commercial Lines
$366.4M+9.9%
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:PolicyholderBenefitsAndClaimsIncurredNet.

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 development, excluding catastrophes(0.6)(10.8)(10.1)(21.5)
Current year catastrophe losses34.213.257.3104.7
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

ITEM 1 - FINANCIAL STATEMENTS

FAQ

What is The Hanover Insurance Group's specialty lines — policyholder benefits and claims incurred net?
The Hanover Insurance Group (THG) reported specialty lines — policyholder benefits and claims incurred net of $187.7M in Q2 2026.
How has The Hanover Insurance Group's specialty lines — policyholder benefits and claims incurred net changed year-over-year?
The Hanover Insurance Group's specialty lines — policyholder benefits and claims incurred net increased by 6.4% year-over-year, from $176.4M to $187.7M.
What is the long-term trend for The Hanover Insurance Group's specialty lines — policyholder benefits and claims incurred net?
Over 3 years (2022 to 2025), The Hanover Insurance Group's specialty lines — policyholder benefits and claims incurred net has grown at a 1.8% compound annual growth rate (CAGR), from $641.8M to $676.9M.
What does specialty lines — policyholder benefits and claims incurred net mean?
This represents the total net cost of claims and associated benefits paid or reserved for policyholders during the period. It is the primary expense component for an insurance segment and directly impacts the underwriting margin. High levels of incurred claims relative to premiums can signal deteriorating underwriting performance or adverse loss trends.

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