Hanover Insurance Group, Inc. (NYSE: THG)

The Hanover Insurance Group, Inc. is a holding company incorporated in Delaware in 1995 that traces its origins to the founding of The Hanover Fire Insurance Company in 1852. The company’s primary business is the underwriting of property and casualty insurance products and services. It markets these policies through a network of independent agents and brokers operating across the United States. The Hanover Insurance Group, Inc. consolidates the financial results of its principal insurance subsidiaries, The Hanover Insurance Company and Citizens Insurance Company of America, together with other insurance and non insurance entities. The firm also manages a substantial investment portfolio that supports its insurance operations and contributes to overall earnings.

Revenue for The Hanover Insurance Group, Inc. is derived chiefly from net premiums written on its property and casualty policies. In the year ended December 31 2025 the company reported net premiums written of approximately 6.3 billion dollars, reflecting a 3.9 percent increase from the prior year. The Core Commercial segment contributed about 2.3 billion dollars of net premiums written, the Specialty segment contributed about 1.4 billion dollars and the Personal Lines segment contributed about 2.6 billion dollars. The Other segment includes earnings from holding company assets and runoff operations. In addition to premium income the company earns investment income from its diversified portfolio which amounted to 11.5 billion dollars of investment assets and cash at the end of 2025. This combination of underwriting and investment results forms the total revenue base of the firm.

The Hanover Insurance Group, Inc. operates through the following segments: Core Commercial, Specialty, Personal Lines and Other. Interest expense related to corporate debt is reported separately from the earnings of these reporting segments.

• The Core Commercial segment underwrites property and casualty coverage for small and mid sized businesses. In 2025 it generated 2.3 billion dollars of net premiums written which represented 36.0 percent of the company’s total. The segment’s lines of business include commercial multiple peril, commercial automobile, workers compensation and other core commercial coverages such as commercial umbrella and monoline general liability. The business is divided into small commercial and middle market divisions with small commercial targeting accounts up to 50 000 dollars in annual premium and middle market focusing on accounts between 50 000 and 500 000 dollars. Core Commercial emphasizes account business through independent agents, leverages digital platforms like the TAP Sales quote and issue system and invests in localized field expertise to improve underwriting and claims outcomes.

• The Specialty segment provides specialized property and casualty products for businesses with distinct risk profiles. In 2025 it produced 1.4 billion dollars of net premiums written representing 22.8 percent of the company’s total. The segment is organized into four divisions: Professional and Executive Lines, Marine, Specialty Property and Casualty and Surety and Other. Professional and Executive Lines includes professional management and medical liability coverages. Marine covers inland and ocean marine risks such as contractor’s equipment and goods in transit. Specialty Property and Casualty encompasses Hanover Programs, excess and surplus, specialty industrial and specialty general liability lines. Surety and Other offers construction related surety and fiduciary coverage. The Specialty segment emphasizes a diversified product suite, a strong service center and a distribution model that relies on retail agents supplemented by select specialists to complement Core Commercial accounts.

• The Personal Lines segment focuses on personal automobile and homeowners insurance for individual consumers. In 2025 it generated 2.6 billion dollars of net premiums written which was 41.2 percent of the company’s total. The segment’s offerings consist of personal automobile coverage and homeowners and other personal lines coverages such as personal umbrella, inland marine, cyber and miscellaneous protections. Personal Lines strategy emphasizes account oriented business, seeking to write both automobile and homeowners policies for the same customer when appropriate. The segment pursues geographic diversification beyond its historical concentrations in Michigan and Massachusetts and works with high value agents who provide consultative selling and policy rounding to increase customer retention and cross selling opportunities.

• The Other segment comprises primarily holding company earnings and expenses, costs associated with retirement benefits for former life insurance subsidiary employees and agents and the results of runoff businesses. These runoff operations include direct asbestos and environmental liabilities, assumed product liability and voluntary assumed property and casualty pools. The Other segment does not underwrite active insurance policies but contributes to consolidated earnings through investment income and the management of legacy liabilities.

The Hanover Insurance Group, Inc. positions itself as one of the leading property and casualty insurers that concentrates on the independent agency distribution channel in the United States. The company competes with national and regional insurers, mutual companies, direct writers and brokerage platforms that offer similar property and casualty products. Its competitive advantages stem from a long history of agency relationships, a localized field office network that fosters close collaboration with agents, disciplined underwriting and pricing practices, a broad array of specialized product offerings and a strong claims handling organization. The firm also benefits from a diversified business mix across commercial, specialty and personal lines which reduces reliance on any single line and helps stabilize underwriting results throughout the economic cycle. Additionally the company invests in technology and data analytics to improve agent efficiency and customer service while maintaining a focus on prudent risk management and capital preservation.

The Hanover Insurance Group, Inc. serves a varied customer base that includes small and mid sized businesses across numerous industries such as technology, human services, educational institutions and construction firms. It also provides personal automobile and homeowners insurance to individual consumers throughout the United States. The company’s policyholders consist of commercial accounts that rely on its Core Commercial and Specialty segments and personal lines customers that are served through its Personal Lines segment. While the filing does not disclose specific customer names, the description indicates that the company works with a broad base of independent agents who in turn place coverage for a diverse range of insureds ranging from small shop owners to large municipal entities and from young drivers to families seeking home protection.