Hanover Q4 net income rises to $198.5 mln

Overview

• U.S. insurance firm's Q4 net income rose to $198.5 mln, driven by strong underwriting

• Operating income for Q4 increased to $210.1 mln, reflecting disciplined execution

• Company raised quarterly dividend by 5.6% and repurchased $130 mln in shares

Outlook

• Company enters 2026 with robust balance sheet and significant financial flexibility

• Company expects investment portfolio to enhance earnings in 2026

• Company sees attractive opportunities in small-to-middle-market Core Commercial segment

Result Drivers

• PREMIUM GROWTH - Net premiums written increased by 3.0%, with renewal price increases of 9.4% in Core Commercial, 9.2% in Personal Lines, and 6.4% in Specialty

• INVESTMENT INCOME - Net investment income rose 24.9% from the prior-year quarter, driven by higher earned yields and portfolio repositioning

• UNDERWRITING PERFORMANCE - Combined ratio, excluding catastrophes, improved to 87.3%, reflecting effective underwriting and cost management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Hanover Insurance Group Inc is $200.00, about 14.6% above its February 2 closing price of $174.50

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn3nLBYra

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