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News Release The Hanover Insurance Group® The Hanover Reports First Quarter Net Income and Operating Income of $ 2.51 and $ 1.66 per Diluted Share , Respectively ; Combined Ratio of 98.8 % ; Combined Ratio , Excluding Catastrophes , of 87.3 % WORCESTER , Mass . , April 29 , 2021 - The Hanover Insurance Group , Inc. ( NYSE : THG ) today reported net income of $ 92.7 million , or $ 2.51 per diluted share , in the first quarter of 2021 , compared to a net loss of $ 40.0 million , or $ 1.04 per basic share * , in the prior - year quarter . Operating income ( 1 ) was $ 61.4 million , or $ 1.66 per diluted share , for the first quarter of 2021. This compared to operating income of $ 86.8 million , or $ 2.23 per diluted share , in the prior - year quarter . The difference between net and operating income in the first quarter of 2021 was primarily due to an after - tax increase in the fair value of equity securities of $ 30.9 million , or $ 0.84 per diluted share , which is excluded from operating income . First Quarter Highlights • • • Net premiums written increase of 5.2 % ** , reflecting growth in all segments Combined ratio of 98.8 % ; combined ratio , excluding catastrophes ( 2 ) of 87.3 % Consistent with the pre - announcement , catastrophe losses of $ 133.3 million , or 11.5 % of net premiums earned , primarily due to freeze events in Texas and surrounding states Rate increases of 6.1 % in core commercial lines ( 3 ) and 3.1 % in Personal Lines ( 4 ) Improved current accident year loss and loss adjustment expense ( " LAE ” ) ratio , excluding catastrophes ( 5 ) , of 56.4 % , due to continued favorable loss frequency , particularly in personal and commercial auto Net investment income of $ 76.8 million , up 10.3 % from the prior - year quarter , primarily from higher partnership income • Book value per share of $ 84.21 , down 4.3 % from December 31 , 2020 , primarily driven by a decrease in net unrealized gains on fixed maturity investments , net of tax , partially offset by net income . Excluding net unrealized gains on fixed maturity investments , net of tax , book value per share ( 6 ) increased 1.7 % from December 31 , 2020 ( 1 ) See information about this and other non - GAAP measures and definitions used throughout this press release on the final pages of this document . The Hanover Insurance Group , Inc. may also be referred to as " The Hanover " or " the Company " interchangeably throughout this press release . * Operating income per share metrics are calculated using diluted shares outstanding ; prior year non - operating items , loss from continuing and discontinued operations and net loss per share metrics were calculated using basic shares outstanding due to antidilution . Basic shares outstanding consist of the daily weighted average number of common shares outstanding during the period . Diluted shares outstanding consist of the daily weighted average number of basic and dilutive common equivalent shares ( employee stock options and non - vested stock grants ) outstanding . ** Unless otherwise stated , net premiums written growth and other growth comparisons are to the same period of the prior year