The Hanover Reports 11% Growth in Q1 Net Income

First quarter net income for The Hanover Group grew to $128.2 million compared to $115.5 million during the same period a year ago.

The Worcester, Massachusetts-based insurer’s Q1 combined ratio was 94.1, and improvement over 95.5 a year ago during the same time.

“Our performance in the quarter is a testament to the effectiveness of the catastrophe mitigation actions and the margin enhancement initiatives we have implemented over the past two years,” said John C. Roche, president and chief executive officer at The Hanover, in a statement.

The largest Q1 improvement was in the personal lines segment, where pretax income was $92.2 million compared to $18.9 million for Q1 2024. The combined ratio came in at 89.7 compared to 101, as there were $34.9 million in catastrophe losses during the first three months of 2025 compared to $59.2 million last year.

Net premiums written were $547.9 million in the quarter, up 3.0% compared to Q1 2024.

“In Personal Lines, we will continue to take advantage of our improved profitability to drive increasing policy counts and premium growth in states targeted for expansion,” Roche said. “Market conditions remain favorable across most of our business segments, as we achieved low double-digit price increases in personal lines and small commercial, and high single-digit price increases in specialty and middle market.

The Hanover’s core commercial segment logged pretax income of $26.8 million compared to $71.5 million a year ago. The Q1 combined ratio here was 103.4 on catastrophe losses of $46 million compared to $20.7 million last year. Net premiums were up 3.8% to $604.6 million for Q1 2025—with 6.7% growth in middle market.

Net premiums were up 5.4% in The Hanover’s specialty segment to $358.3 million as renewal price increases average 8.4%. Pretax income for specialty lines was $64.6 million compared to $58.8 million for Q1 2024 though catastrophe losses for the quarter more than doubled to $14.7 million.

Topics
Profit Loss