The Hanover business insurance

Overview

The Hanover is a Worcester, Massachusetts, property and casualty insurer that sells only through independent agents and brokers, with a commercial book aimed squarely at small and midsize businesses. The group was ranked No. 29 among U.S. business insurers by 2025 commercial lines direct premiums written, with $4.21 billion, based on NAIC market share data, or about 0.87% of the national commercial market. It does not hold a national top-10 position in any single commercial line; its largest is commercial multiple peril (package policies), at $1.50 billion.

Commercial lines are a little under 60% of the company. In 2025 The Hanover wrote about $6.3 billion of net premiums: 41% personal lines, 36% Core Commercial (small commercial and middle market) and 23% Specialty. Michigan, where it also operates as Citizens Insurance, accounted for 18.7% of 2025 premium and Massachusetts for 8.0%.

The NAIC group includes The Hanover Insurance Company, Citizens Insurance Company of America and its Illinois, Ohio and Midwest affiliates, Massachusetts Bay, Hanover American, Hanover Casualty, Allmerica Financial Alliance and Allmerica Financial Benefit, Verlan Fire, Campmed Casualty & Indemnity, NOVA Casualty and the surplus lines carrier AIX Specialty. The parent, The Hanover Insurance Group, Inc., trades on the NYSE as THG.

Do not confuse it with Hanover Fire & Casualty Insurance Company of King of Prussia, Pennsylvania, an unrelated personal property insurer now owned by Mid-Hudson Co-Operative, which AM Best downgraded to B+ (Good) in September 2026.

History

The Hanover Fire Insurance Company opened in 1852 at Hanover Square in Manhattan and appointed its first independent agent, in Cleveland, the same year. It paid claims through the Portland, Chicago and Boston fires of 1866 to 1872 and the 1906 San Francisco earthquake, expanded into marine and auto coverage in 1911, and took the name The Hanover Insurance Group in 1958. The home office moved from New York to Worcester in 1969, and in 1974 The Hanover bought all shares of Citizens Mutual Insurance Company in Michigan, which is still its largest state.

The modern company was reshaped by deals. It bought OneBeacon's commercial business in 2009 to expand in the Western U.S., made U.S. specialty acquisitions and bought the Lloyd's insurer Chaucer in 2010 and 2011, and crossed $5 billion of written premium in 2013. After John C. Roche became CEO in 2017, The Hanover agreed in 2018 to sell Chaucer to China Re and returned $850 million of the proceeds to shareholders in 2019, refocusing entirely on U.S. independent agents. The holding company also once owned life insurance businesses, which it has since exited.

On July 15, 2026, The Hanover announced that Roche will retire on December 31, 2026, and that Richard W. Lavey, the chief operating officer and president of Hanover Agency Markets, will succeed him.

Business insurance products

Small commercial (policies up to about $50,000 of annual premium). A business owner's policy with industry-specific options for more than 500 classes and built-in data breach coverage, plus workers' compensation, commercial auto, umbrella and professional liability. Agents quote and issue on The Hanover's TAP Sales platform; Workers' Comp Advantage, launched in July 2025, returns a bindable comp quote in under two minutes, with up to 90% straight-through processing in many target classes.

Middle market (about $50,000 to $500,000 per policy). Account-based commercial package programs with auto, comp and umbrella, built around industry segments. In 2025, Core Commercial net premiums were $2.27 billion: 51% commercial multiple peril, 19% commercial auto, 18% workers' comp and 12% umbrella, monoline liability and property.

Specialty ($1.44 billion in 2025). Four divisions:

• Professional and executive lines (32%): D&O, E&O, EPL and medical liability. See Management liability packages: D&O, EPLI, fiduciary and crime.
• Marine (32%): inland and ocean marine, including contractors' equipment, builders risk, goods in transit, jewelers block and fine art.
• Specialty property and casualty (29%): Hanover Programs, excess and surplus lines property and liability, higher-hazard admitted general liability, and Hanover Specialty Industrial, which insures small and midsize chemical, paint, solvent and other manufacturers and distributors. Its HSIP Advantage admitted property product launched in October 2025.
• Surety and other (7%): contract and commercial surety bonds.

Merit Specialty is the brand for wholesale brokers, offering admitted and non-admitted property, casualty, marine, professional, management liability, healthcare and cyber coverage.

Who it insures

The Hanover's industry pages cover construction, cultural institutions, educational institutions, financial institutions, healthcare, human services, life sciences, Manufacturer insurance, professional services, real estate, retail, technology, and wholesale and distribution. Its 2025 annual report names technology, human services and educational institutions as profitable middle-market segments it is growing, while taking a "measured approach" in more challenging ones.

Geographically, it actively markets commercial and specialty lines in 44 states and D.C. through 33 local offices in 23 states, and personal lines in 19 states. It is working to reduce its dependence on Michigan and Massachusetts.

How to buy

Through an appointed independent agent; The Hanover's site sends business buyers to "contact an agent" rather than quoting directly. Some specialty business comes through MGAs and wholesalers. The Hanover says it appoints agencies selectively and pays them base commissions plus bonuses tied to premium, growth and profitability, and it publishes a producer compensation disclosure.

Its sales pitch is "account" business: package, auto, comp and umbrella together, with one point of contact for service, billing, renewals and claims. Policyholders manage policies through a My Hanover Policy account or the Hanover Mobile app. Hanover Risk Solutions consultants (the company cites 20-plus years of experience) work on property, liability, auto and comp exposures, using tools such as drone roof surveys, IoT water and freeze sensors, infrared electrical surveys, wearable ergonomic sensors and a slip-resistance tester, and a partner network offers safety products at no cost or a discount.

Claims

Report claims at 800-628-0250, online through My Hanover Policy (which supports text updates and real-time tracking), on the Hanover Mobile app, or through your agent. The Hanover runs both field and virtual adjusters. For workers' comp, its NT24 nurse triage program connects injured employees with a nurse, Optum manages the pharmacy network, Medata handles medical bill review and utilization review, and the company publishes state claim kits for employers. California comp policyholders have a separate forms and appeals process.

Financial strength and ratings

AM Best affirmed the A (Excellent) financial strength rating of The Hanover's property and casualty companies in July 2025, with a stable outlook. AM Best rated the balance sheet strongest but operating performance only adequate, noting that pre-tax operating earnings have trailed the commercial casualty composite over the long term, and cited higher premium and underwriting leverage and regional catastrophe exposure. As of March 19, 2026, The Hanover Insurance Company was also rated A by S&P Global and A2 by Moody's.

Recent results are the best in its history. In 2025 the combined ratio improved to 91.6% from 94.8%, net income reached $662.5 million, and operating return on equity was a record 20.1%. Core Commercial ran a 96.1% combined ratio in the fourth quarter, with higher loss picks in commercial auto liability and comp. In the second quarter of 2026, the company posted a 91.2% combined ratio and 4.6% premium growth.

Strengths and weaknesses

The Hanover is a solidly profitable, agency-only carrier with an unusually deep specialty shelf for its size. The caveats are an A rather than A+ rating and a business still weighted toward personal lines and two home states.

• Strengths: Record 2025 results (91.6% combined ratio, 20.1% operating ROE). Specialty lines most regional carriers lack, including marine, surety, professional and management liability, high-hazard industrial property and E&S. Fast small business tools for agents, including two-minute bindable comp quotes. Commercial and specialty lines marketed in 44 states and D.C.
• Weaknesses: AM Best rating of A (Excellent), a notch below many large competitors, with operating performance judged only adequate. Concentration in Michigan and Massachusetts. A CEO transition at the end of 2026. No direct buying; agents must be appointed, and appointments are selective.

How to contact The Hanover