The Hanover Q1 Net Income Climbs 46% to $186.8M, Combined Ratio at 91.7%
The Hanover posted Q1 net income of $186.8M ($5.20 per diluted share), up from $128.2M, and operating income of $188.5M ($5.25), lifting return on equity to 20.9%. Combined ratio improved to 91.7% (85.4% ex-cat), net premiums written grew 3.2% to $1.56B, and net investment income rose 19.6% to $126.9M.
1. Record First Quarter Financial Results
The Hanover reported net income of $186.8 million in Q1 2026, or $5.20 per diluted share, compared with $128.2 million, or $3.50 per share, in Q1 2025. Operating income reached $188.5 million, or $5.25 per share, driving net and operating returns on equity of 20.9% and 20.3%, respectively.
2. Underwriting Performance and Premium Growth
The company achieved a 91.7% combined ratio, improving from 94.1% a year earlier, and an 85.4% ex-cat combined ratio, up from 87.8%. Net premiums written grew 3.2% to $1.56 billion, backed by renewal price increases of 8.6% in core commercial, 8.4% in personal lines, and 4.6% in specialty.
3. Investment Income and Capital Actions
Net investment income rose 19.6% to $126.9 million, driven by higher cash flows and yields. Book value per share increased to $101.86, excluding unrealized investment depreciation up 2.8%. The Hanover repurchased 580,000 shares for $101 million year-to-date through April 28, bolstering shareholder value.