Hanover Insurance (THG) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - Hanover Insurance Group (THG) reported $1.66 billion in revenue for the quarter ended June 2025, reflecting a year-over-year increase of 5.5% [1] - The earnings per share (EPS) for the same period was $4.35, a significant increase from $1.88 a year ago, resulting in an EPS surprise of +41.69% compared to the consensus estimate of $3.07 [1] Financial Performance Metrics - GAAP Loss and LAE Ratio was reported at 61.9%, better than the average estimate of 66% from three analysts [4] - GAAP Expense Ratio matched the average estimate at 30.6% [4] - GAAP Combined Ratio was 92.5%, outperforming the estimated average of 96.6% [4] - Core Commercial - Loss and LAE Ratio was 60.1%, compared to the average estimate of 63.7% [4] - Operating Revenues for Core Commercial - Net Investment Income was $47.7 million, slightly above the estimate of $47.34 million [4] - Operating Revenues for Personal Lines - Net Premiums Earned was $635.1 million, representing a year-over-year change of +4.9% [4] - Total Revenues from Premiums earned was $1.55 billion, consistent with the average estimate, also showing a +4.9% year-over-year change [4] - Net investment income was reported at $105.5 million, a +16.7% increase compared to the year-ago quarter [4] Stock Performance - Hanover Insurance shares have returned -0.5% over the past month, while the Zacks S&P 500 composite increased by +3.4% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]