The Hanover Insurance Group, Inc. reported net income of $157.1 million, or $4.30 per diluted share, for the second quarter of 2025, a substantial increase from $40.5 million, or $1.12 per diluted share, in the prior-year quarter. Operating income reached a record $158.7 million, or $4.35 per diluted share, compared to $68.1 million, or $1.88 per diluted share, in Q2 2024. The company achieved a record operating return on equity of 18.7% for the quarter.
The company delivered one of its best underwriting performances ever, with a combined ratio of 92.5%, improving from 99.2% in the prior-year quarter. Excluding catastrophes, the combined ratio was 85.5%, an improvement from 88.5% in Q2 2024. Net premiums written grew by 4.1% to $1,583.8 million, reflecting firm pricing across all major business segments.
Net investment income increased by 16.7% year-over-year to $105.5 million, driven by higher earned yields and continued investment of operational cash flows. The Hanover returned approximately $124 million to shareholders through dividends and share repurchases year-to-date. Book value per share increased by 6.0% from March 31, 2025, reaching $89.62, driven by strong earnings and an improvement in the unrealized loss position on the fixed maturity portfolio.
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