HANOVER INSURANCE GROUP, INC.
For the period ended Oct 28, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A notice of a major event between regular reports, such as results, a deal or a change of executives. It is often the first formal record of the news.
Oct 28, 2026 · Filed Oct 28, 2026
Use the contents to explore the available documents and sections.
Contents
EX-99.1 · Endnotes
Endnotes
(1)
Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings “Forward-Looking Statements" and "Non-GAAP Financial Measures.” The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP combined ratio to the combined ratio, excluding catastrophes, and to the current accident year combined ratio, excluding catastrophes, is shown below.
| Three months ended | ||||
|---|---|---|---|---|
| Core Commercial · Specialty · Personal Lines · Total | ||||
| Total combined ratio (GAAP) | 100.5% | 84.0% | 89.7% | 92.3% |
| Less: Catastrophe ratio | 7.8% | 3.4% | 7.9% | 6.8% |
| Combined ratio, excluding catastrophe losses (non-GAAP) | 92.7% | 80.6% | 81.8% | 85.5% |
| Less: Prior-year reserve development ratio | (0.5)% | (4.0)% | (0.1)% | (1.1)% |
| Current accident year combined ratio, excluding catastrophe losses (non-GAAP) | 93.2% | 84.6% | 81.9% | 86.6% |
| Total combined ratio (GAAP) | 97.3% | 84.9% | 89.2% | 91.1% |
| Less: Catastrophe ratio | 3.2% | 1.7% | 3.5% | 3.0% |
| Combined ratio, excluding catastrophe losses (non-GAAP) | 94.1% | 83.2% | 85.7% | 88.1% |
| Less: Prior-year reserve development ratio | (0.2)% | (2.8)% | (0.1)% | (0.8)% |
| Current accident year combined ratio, excluding catastrophe losses (non-GAAP) | 94.3% | 86.0% | 85.8% | 88.9% |
| Nine months ended | ||||
| Core Commercial · Specialty · Personal Lines · Total | ||||
| Total combined ratio (GAAP) | 97.7% | 85.6% | 90.0% | 91.8% |
| Less: Catastrophe ratio | 5.9% | 2.9% | 8.5% | 6.3% |
| Combined ratio, excluding catastrophe losses (non-GAAP) | 91.8% | 82.7% | 81.5% | 85.5% |
| Less: Prior-year reserve development ratio | (0.3)% | (3.6)% | (1.0)% | (1.4)% |
| Current accident year combined ratio, excluding catastrophe losses (non-GAAP) | 92.1% | 86.3% | 82.5% | 86.9% |
| Total combined ratio (GAAP) | 97.8% | 86.3% | 91.4% | 92.6% |
| Less: Catastrophe ratio | 5.2% | 3.4% | 6.7% | 5.4% |
| Combined ratio, excluding catastrophe losses (non-GAAP) | 92.6% | 82.9% | 84.7% | 87.2% |
| Less: Prior-year reserve development ratio | (0.3)% | (3.7)% | (0.3)% | (1.1)% |
| Current accident year combined ratio, excluding catastrophe losses (non-GAAP) | 92.9% | 86.6% | 85.0% | 88.3% |
(2)
Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. Rate increases in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. Renewal price change in Personal Lines represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms. Rate change in Personal Lines is the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed.
Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.
(3)
Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. The following is a reconciliation of the GAAP loss ratio to the current accident year loss ratio, excluding catastrophe losses.
| Three months ended | ||||
|---|---|---|---|---|
| Core Commercial · Specialty · Personal Lines · Total | ||||
| Total loss and LAE ratio | 67.8% | 47.1% | 63.8% | 61.4% |
| Less: | ||||
| Prior-year reserve development ratio | (0.5)% | (4.0)% | (0.1)% | (1.1)% |
| Catastrophe ratio | 7.8% | 3.4% | 7.9% | 6.8% |
| Current accident year loss and LAE ratio, excluding catastrophes | 60.5% | 47.7% | 56.0% | 55.7% |
| Total loss and LAE ratio | 63.6% | 47.7% | 63.2% | 59.8% |
| Less: | ||||
| Prior-year reserve development ratio | (0.2)% | (2.8)% | (0.1)% | (0.8)% |
| Catastrophe ratio | 3.2% | 1.7% | 3.5% | 3.0% |
| Current accident year loss and LAE ratio, excluding catastrophes | 60.6% | 48.8% | 59.8% | 57.6% |
| Nine months ended | ||||
| Core Commercial · Specialty · PersonalLines · Total | ||||
| Total loss and LAE ratio | 65.0% | 48.8% | 64.0% | 60.9% |
| Less: | ||||
| Prior-year reserve development ratio | (0.3)% | (3.6)% | (1.0)% | (1.4)% |
| Catastrophe ratio | 5.9% | 2.9% | 8.5% | 6.3% |
| Current accident year loss and LAE ratio, excluding catastrophes | 59.4% | 49.5% | 56.5% | 56.0% |
| Total loss and LAE ratio | 64.5% | 49.3% | 66.0% | 61.7% |
| Less: | ||||
| Prior-year reserve development ratio | (0.3)% | (3.7)% | (0.3)% | (1.1)% |
| Catastrophe ratio | 5.2% | 3.4% | 6.7% | 5.4% |
| Current accident year loss and LAE ratio, excluding catastrophes | 59.6% | 49.6% | 59.6% | 57.4% |
(4)
Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below.
| Period ended | |||
|---|---|---|---|
| June 30 · September 30 | |||
| 2026 · 2026 | |||
| Book value per share | $105.40 | $99.69 | |
| Less: Net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, per share | (5.86) | (14.57) | |
| Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | $111.26 | $114.26 | |
| Versus prior quarter | |||
| Change in book value per share | (5.4)% | ||
| Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | 2.7 % | ||
(5)
Operating income and operating income per diluted share are non-GAAP measures. Operating income before income taxes, as referenced in the results of the reporting segments, is defined as, with respect to such segment, operating income before interest expense and income taxes. The reconciliation of operating income and operating income per diluted share to the closest GAAP measures, income from continuing operations and income from continuing operations per diluted share, respectively, and to net income and net income per diluted share, respectively, is provided on the preceding pages of this news release.
(6)
Operating return on equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see under the heading in this news release “Non-GAAP Financial Measures” and end note (5)), by average shareholders’ equity, excluding unrealized appreciation (depreciation) on fixed maturity investments, net of tax, for the period presented. Total shareholders’ equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is also a non-GAAP measure. Total shareholders’ equity is the most directly comparable GAAP measure and is reconciled in the following table. For the calculation of operating ROE, the average of beginning and ending shareholders’ equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is used for the period as shown and reconciled in the following table.
| Period Ended | ||||
|---|---|---|---|---|
| ($ in millions) | December 31 | March 31 | June 30 | September 30 |
| 2025 · 2026 · 2026 · 2026 | ||||
| Total shareholders' equity (GAAP) | $3,571.5 | $3,570.4 | $3,672.5 | $3,441.5 |
| Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | (117.1) | (185.0) | (204.1) | (502.9) |
| Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | $3,688.6 | $3,755.4 | $3,876.6 | $3,944.4 |
| Quarter Averages | ||||
| Average shareholders' equity (GAAP) | $3,557.0 | |||
| Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | $3,910.5 | |||
| Year-to-date Averages | ||||
| Average shareholders' equity (GAAP) | $3,564.0 | |||
| Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | $3,816.3 | |||
| ($ in millions) | Three months ended | Nine months ended |
|---|---|---|
| September 30 · September 30 | ||
| Net Income ROE | 2026 | 2026 |
| Net income (GAAP) | $172.6 | $551.0 |
| Annualized net income* | 690.4 | 734.7 |
| Average shareholders' equity (GAAP) | $3,557.0 | $3,564.0 |
| Return on equity | 19.4% | 20.6% |
| Operating Income ROE (non-GAAP) | ||
| Operating income after taxes | $183.1 | $560.8 |
| Annualized operating income, net of tax* | 732.4 | 747.7 |
| Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax | $3,910.5 | $3,816.3 |
| Operating return on equity | 18.7% | 19.6% |
*For three months ended September 30, 2026, annualized net income and operating income after taxes is calculated by multiplying three months ended net income and operating income after taxes, respectively, by 4. For nine months ended September 30, 2026, annualized net income and operating income after taxes is calculated by dividing nine months ended net income and operating income after taxes, respectively, by 3 and multiplying by 4.
(7)
Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation.
(8)
The separate financial information of each reporting segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned reporting segments without consideration of interest expense on debt and on a pre-tax basis.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.