The Hanover Insurance Group, Inc. reported net income of $128.2 million, or $3.50 per diluted share, for the first quarter of 2025, an increase from $115.5 million, or $3.18 per diluted share, in the prior-year quarter. Operating income reached a record $141.8 million, or $3.87 per diluted share, up from $111.9 million, or $3.08 per diluted share, in Q1 2024. The company achieved a 17.2% operating return on equity despite significant industry catastrophe activity.
The Personal Lines segment showed substantial improvement, with operating income before income taxes increasing to $94.2 million in Q1 2025 from $18.9 million in Q1 2024. This turnaround was driven by earned pricing outpacing loss trends and lower loss frequency, particularly in auto physical damage and homeowners. The Personal Lines combined ratio improved to 89.7% from 101.0% in the prior-year quarter.
Overall, the combined ratio improved to 94.1% from 95.5% in the prior-year quarter, with the ex-catastrophe combined ratio improving by 1.7 points to 87.8%. Net premiums written grew by 3.9% to $1,510.8 million. Net investment income increased by 18.3% to $106.1 million, driven by higher earned yields and cash flows. The company repurchased approximately 173,000 shares of common stock for $28.4 million year-to-date through April 29, 2025.
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