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News Release ● Hänover Insurance Group The Hanover Reports Third Quarter Net Income and Operating Income of $ 0.94 and $ 0.85 per Diluted Share , Respectively ; Combined Ratio of 102.3 % ; Combined Ratio , Excluding Catastrophes , of 89.4 % WORCESTER , Mass . , October 27 , 2021 - The Hanover Insurance Group , Inc. ( NYSE : THG ) today reported net income of $ 34.0 million , or $ 0.94 per diluted share , in the third quarter of 2021 , compared to $ 118.9 million , or $ 3.13 per diluted share , in the prior - year quarter . Operating income ( 1 ) was $ 30.8 million , or $ 0.85 per diluted share , for the third quarter of 2021. This compared to operating income of $ 93.5 million , or $ 2.46 per diluted share , in the prior - year quarter . Third Quarter Highlights Net premiums written increase of 8.4 % * , reflecting strong growth in all segments Combined ratio of 102.3 % ; combined ratio , excluding catastrophes ( ² ) of 89.4 % Catastrophe losses of $ 153.5 million , or 12.9 % of net premiums earned , including the impact of Hurricane Ida of $ 75.0 million Rate increases ( 3 ) of 6.9 % in Core Commercial lines ( 4 ) and 2.1 % in Personal Lines Current accident year loss and loss adjustment expense ( “ LAE ” ) ratio , excluding catastrophes ( 5 ) , of 60.1 % , an increase from the third quarter of 2020 , driven by auto losses , primarily in Personal Lines Net investment income of $ 78.8 million , up 16.6 % from the prior - year quarter , primarily from higher partnership income Book value per share of $ 87.04 , down 1.3 % from June 30 , 2021 , primarily driven by a decrease in net unrealized gains on fixed maturity investments , net of tax , and ordinary dividends , partially offset by net income Expense ratio ( 6 ) of 31.1 % improved 0.7 points from the prior - year quarter " We are very pleased with our strong , sustained growth in the quarter , as well as our solid bottom line performance in the face of considerable catastrophe activity , " said John C. Roche , president and chief executive officer at The Hanover . " We increased net premiums written by 8.4 % , powered by the successful execution of our agency- and customer - focused strategy , with important contributions from each segment . Our growth reflects continued strong rate in Commercial Lines and a more measured pricing strategy intended to build long - term value in Personal Lines . ( 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 . * Unless otherwise stated , net premiums written growth and other growth comparisons are to the same period of the prior year .