The Hanover’s net income rises 75% as CoR strengthens in Q3’25

Property and casualty insurer, The Hanover Insurance Group, saw its net income rise 75% year-on-year to $178.7 million in the third quarter of 2025, as the firm’s combined ratio strengthened by 4.4 percentage points to 91.1% on the back of a lower loss and loss adjustment expense (LAE) ratio of 59.8%, reflecting lower catastrophe losses in the period.

The Hanover has generated another solid quarter of results, including a 5% year-on-year increase in net premiums written (NPW) to $1.8 billion, while for the nine month period ended September 30th, 2025, NPW rose by 4% to $4.8 billion. Net premiums earned also improved for both periods, increasing by 5% to $1.6 billion in Q3’25, and by 5% to $4.6 billion for 9M’25.

For the third quarter, NPW growth of 3.5% was achieved in Core Commercial, while the Specialty segment saw NPW rise 8.3%, and the Personal Lines business saw its premiums rise by 3.6% year-on-year.

The Hanover reports a renewal price increase of 9.9% in Core Commercial, 10.5% in Personal Lines, and 8.3% in Specialty, with rate increase of 8.7% in Core Commercial, 6.8% in Personal Lines, and 5.8% in Specialty.

Group-wide, as mentioned, the loss and LAE ratio declined in Q3’25 as the catastrophe ratio fell to 3% from 7.2% for the quarter, while the expense ratio increased slightly to 31.3%, reflected in the improved combined ratio for the period. For 9M’25 the carrier’s combined ratio strengthened by 4.1 percentage points to 92.6%, again supported by a lower catastrophe ratio of 5.4%, compared with 8% a year earlier.

The Hanover experienced catastrophe losses of $46.2 million in Q3’25, $17.8 million of which is attributable to its Core Commercial business, $6 million attributable to Specialty, and $22.4 million attributable to Personal Lines.

During the third quarter, The Hanover also benefited from net favourable prior year reserve development of $1.2 million in its Core Commercial business, as well as net favourable prior year reserve development in Specialty and Personal Lines of $10 million and $0.9 million, respectively.

Group-wide, net investment income increased by 27.5% year-on-year to $117 million for Q3’25, which the firm attributes to higher earned yields and higher cashflows. For 9M’25, net investment income increased to $328.6 million from $271.9 million in 9M’24.

As previously discussed, net income for the quarter increased significantly for The Hanover in Q3’25, and also rose by 80% for the nine month period, reaching $464 million.