Hanover Insurance Group (NYSE: THG) shares jumped 1% in early trading. Why? The property-casualty insurer crushed fourth-quarter and full-year 2025 earnings expectations. First, let’s check the stock’s story: it traded between $70 and over $100 in the past 52 weeks. Recently, the trend pointed sharply higher before results.
Quarterly Results Shine
Hanover posted net income of $198.5 million, or $5.47 per diluted share, for the quarter ended December 31, 2025. This beat last year’s $167.9 million, or $4.59 per share. Moreover, operating income climbed to $210.1 million, or $5.79 per share, from $194.6 million, or $5.32 per share in Q4 2024. The combined ratio improved slightly to 89.0%, despite a 1.7-point hit from catastrophes. Meanwhile, net premiums written rose 3.0% year-over-year. Plus, net investment income surged nearly 25%. As a result, book value per share hit $100.90, up from $79.18 a year earlier.
Full-Year Wins Build Momentum
For all of 2025, Hanover reported net income of $662.5 million, or $18.16 per diluted share. That’s a big leap from 2024’s $426.0 million, or $11.70 per share. Operating income reached $696.2 million, or $19.09 per share, versus $485.9 million, or $13.34 per share last year. Additionally, full-year net premiums written grew 3.9% to $6.3 billion. The combined ratio sharpened to 91.6% from 94.8%. Net investment income jumped about 22% year-over-year. Consequently, book value per share expanded 27.4% from end-2024.
Key Business Boosts
Hanover delivered strong operating and net returns on equity in Q4 2025. Underwriting margins gained across segments. Renewal prices and rates kept rising, especially in core commercial and personal lines. On top of that, the company hiked its quarterly dividend by 5.6%. It also pushed ahead with share repurchases in the quarter.
Analyst View and Outlook
No big analyst upgrades, downgrades, or price-target shifts hit with earnings. Still, management highlighted disciplined underwriting and solid pricing trends. Looking ahead, investors watch closely: how will Hanover balance growth, expenses, and catastrophe risks in 2026?
