The Hanover Insurance Group (THG) Investor Day 2026 summary

Strategic Direction, Vision, and Leadership Transition

• New CEO-elect outlines a vision focused on scaling with resiliency and durability, emphasizing a distinctive market position built on national capabilities, local agency intimacy, and a diversified, profitable portfolio targeting advice-seeking customers.

• Pursuing a strategy focused on scaling with resilience and durability, emphasizing portfolio diversification and technology-driven operating models to enhance earnings stability and growth through 2031.

• Leadership transition is highlighted as seamless, with a strong, tech-savvy team and a culture recognized for high engagement and performance.

• High-performance, people-centric culture and leadership depth underpin transformation and execution.

• The company’s culture and leadership standards are seen as foundational to sustainable financial success.

Business Model Transformation, Technology, and Innovation

• Operating model transformation is underway, prioritizing process improvement before technology, with AI and automation embedded in underwriting, claims, and service workflows.

• Proprietary Agency Insight platform deepens agency relationships, providing data-driven growth roadmaps and competitive advantage.

• AI and digital transformation have reduced underwriting turnaround time by up to 60%, increased quote-to-bind ratios, and improved claims adjuster productivity.

• Technology investments are now incremental, leveraging a modernized core system and focusing on scalable AI capabilities.

• Digital pay adoption and predictive analytics have enhanced customer experience, reduced payment inquiries, and improved claims outcomes.

Financial Targets and Performance

• Achieved ~14% operating ROE over the last 12-18 months ending Q2 2026, with a long-term target of mid-to-high teens through 2031.

• Net premiums written (NPW) grew at a 7% CAGR from 2021 to 2026, with a new target of ~7% annual growth through 2031.

• Operating EPS and book value per share (ex-unrealized) targeted to grow 10%+ annually through 2031.

• Expense ratio is targeted to decline to 28.5% by 2031, driven by scale, technology, and AI-enabled efficiencies.

• Catastrophe volatility and reserve prudence have improved, supporting earnings durability.