EarningsQ2 2026 Earnings Report
DE:AF4 Q2 2026 EPS Results
Actual EPS€4.74
Consensus EPS€3.43
Beat/MissBeat by +€1.31
One Year Ago EPS€3.88
DE:AF4 Q2 2026 Revenue Results
Actual Revenue€1.54B
Expected Revenue€1.47B
Beat/MissBeat by +€68.47M
YoY Revenue Growth+4.34%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeAfter Close
Conference CallTuesday, July 28, 2026
DE:AF4 Upcoming Earnings
Hanover Insurance's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:AF4 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed predominantly positive momentum: record second-quarter performance driven by disciplined underwriting, portfolio diversification, strong pricing in Personal and Core Commercial, Specialty strength, successful reinsurance renewals and rising investment income. Headwinds are manageable and primarily relate to a modestly higher expense ratio, variability in partnership income, prudent increases in casualty liability picks, and some competitive/market softness in property-exposed niches. Management emphasized capital returns (share buybacks) and continued investment in technology and distribution, positioning the company to sustain profitable growth.Company Guidance
Record Quarterly Financial Performance
Operating return on equity ~20%; operating earnings of $5.31 per diluted share; GAAP combined ratio 91.2% (improved 1.3 pts YoY) and ex-CAT combined ratio 85.5%; net written premium growth of about 4.4%–4.6% year-over-year; book value per share up 3.5% sequentially to $105.40 (3.8% ex-unrealized).
Strong Personal Lines Profitability and Pricing
Personal Lines current accident year ex-CAT combined ratio 81.9% (improved 2.9 pts YoY); Homeowners ex-CAT loss ratio 43.7% (improved 7.4 pts YoY); Personal Auto ex-CAT loss ratio 64.7% (improved 1.5 pts YoY); Personal Lines grew 2.6% in the quarter; renewal pricing: auto +7.1%, home +10.9%, umbrella ~19%; Prestige offering scale increasing and ~100 new distribution points added YTD (75% in targeted states).
Core Commercial Momentum and Growth
Core Commercial net written premiums increased ~7.2% in the quarter (up from 4.3% in Q1); Small Commercial +6% premium growth with retention ~86%; Middle Market top-line growth 9.4% (≈7% excluding timing/nonrecurring items); pricing described as robust (generally high single-digits) and underwriting margins improved versus 2025.
Specialty Segment Driving Profitable Growth
Specialty current accident year ex-CAT combined ratio ~85.6% with a loss ratio ex-CAT of 51.6%; strong new business in management liability and surety; disciplined capacity deployment and product/technology tools (e.g., Triage Pro) supporting targeted growth.
Successful Reinsurance and Catastrophe Management Actions
Completed property treaty renewals; issued and upsized a new CAT bond to $150 million; CAT occurrence program exhausts at $2.05 billion with $200 million retention; expanded per-risk limit by $25 million and achieved better-than-expected, risk‑adjusted reinsurance cost outcomes.
Investment Income and Capital Returns
Net investment income increased 13.4% quarter-over-quarter; fixed income investment income up 16.3% YoY; earned yield on fixed maturities 4.45% (vs 4.24% a year ago); ~88% of invested assets in cash and investment‑grade fixed income (A+ weighted avg, 95% IG); repurchased ~291k shares for $55M in Q2 and announced $700M repurchase authorization.
Reserve Development and Balance Sheet Discipline
Favorable ex-CAT prior year reserve development of $21.5 million in the quarter (Specialty $10.8M / ~3 pts; Personal Lines $10.1M / ~1.5 pts; Core Commercial $0.6M); management emphasizes strong reserve positioning and prudent liability reserving practices.
Operational / Technology Progress
Ongoing enterprise transformation: expanded TAP no-touch flows for small commercial, full-country rollout of TAP workers' compensation product on track, and deployment of AI-driven tools (Triage Pro) and new underwriter workbench tools to improve productivity and decisioning.
DE:AF4 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed