Third-quarter net income for The Hanover Insurance Group grew to $178.7 million, compared to $102.1 million during the same period a year ago.
The Worcester, Massachusetts-based insurer’s Q3 combined ratio improved to 91.1 from 95.5 a year ago during the same time, as catastrophe losses during Q3 fell to $46.2 million, compared to losses of about $106 million for Q3 2024.
Net premiums written across all businesses increased 4.5% to about $1.74 billion.
“Our underlying performance was strong, driven by the cumulative impact of prior pricing and underwriting actions, which continue to yield excellent results,” said CEO John C. Roche in a statement.
“Market dynamics in our chosen segments remain constructive, with consistent pricing gains in Core Commercial and Specialty thanks to our focus on smaller, less cyclical sectors, while in personal lines, our whole-account strategy provides good insulation from the competitive auto market.”
The Hanover personal lines business recorded 3.6% growth in NPW to about $739 million, as the combined ratio improved to 89.2 from 100.6 a year ago during the third quarter. The insurer said the NPW growth was due to strong price increases and higher new business. Renewal price increases averaged a 10.5%.
The highest NPW growth was in the group’s specialty business. NPW increased 8.3%. This segment saw an increase in catastrophe losses compared to Q3 2024–$6 million versus $4.4 million. The combined ratio worsened a point to 84.9.
The Category 5 hurricane made landfall in southwestern Jamaica last week, the Caribbean nation’s strongest-ever storm to directly hit its shores, and the first major hurricane since 1988.
Verisk’s Extreme Event Solutions unit said most modeled losses were due to wind damage, with flooding from heavy rain also contributing. Montego Bay, a popular tourist location, also sustained major damage.
Extreme weather, intensified by climate change, challenges the insurance industry with mounting costs from frequent and severe natural disasters. Rising claims have pressured underwriting results and forced insurers to reassess risk models and pricing strategies.