v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

9. Segment Information

The Company’s primary business operations include insurance products and services provided through four reporting segments: Core Commercial, Specialty, Personal Lines and Other. Core Commercial includes commercial multiple peril, commercial automobile, workers’ compensation, and other commercial coverages provided to small and mid-sized businesses. Specialty includes four divisions of business: Marine and Industrial Property, Professional and Executive Lines, E&S and Alternative Markets, and Surety and Other. E&S and Alternative Markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses) and specialty general liability coverage. Personal Lines includes personal automobile, homeowners and other personal coverages. The Other segment includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits related to employees and agents of the Company’s former life insurance subsidiaries; and run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools, and run-off product liability business.

The Company reports interest expense related to debt separately from the earnings of its reporting segments. This consists primarily of interest on the Company’s senior and subordinated debentures.

The separate financial information is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Results of the reporting segments are evaluated based on operating income before interest expense and income taxes, which excludes certain items that are included in net income, such as net realized and unrealized investment gains and losses. Such gains and losses are excluded since they are determined by interest rates, financial markets and the timing of sales. Also, operating income before interest expense and income taxes excludes net gains and losses on disposals of businesses, gains and losses related to the repayment of debt, discontinued operations, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes and certain other items. Although the items excluded from operating income before interest expense and income taxes may be important components in understanding and assessing the Company’s overall financial performance, management believes that the presentation of operating income before interest expense and income taxes enhances an investor’s understanding of the Company’s results of operations by highlighting net income attributable to the core operations of the business. However, operating income before interest expense and income taxes should not be construed as a substitute for income before income taxes or income from continuing operations or as a substitute for net income.

Summarized below is financial information with respect to the Company’s reporting segments.

 

 

Three Months Ended

 

 

 

March 31, 2026

 

(in millions)

 

 

Core Commercial

 

 

Specialty

 

 

Personal Lines

 

 

Other

 

 

Total

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

 

563.8

 

$

 

359.9

 

$

 

646.9

 

$

 

—

 

$

 

1,570.6

 

Net investment income

 

 

 

58.3

 

 

 

28.7

 

 

 

35.2

 

 

 

4.7

 

 

 

126.9

 

Fees and other income

 

 

 

1.4

 

 

 

1.2

 

 

 

3.6

 

 

 

—

 

 

 

6.2

 

Total operating revenues

 

$

 

623.5

 

$

 

389.8

 

$

 

685.7

 

$

 

4.7

 

 

 

1,703.7

 

Net realized and unrealized investment losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.3

)

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

1,701.4

 

Operating income before interest expense
   and income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

 

563.8

 

$

 

359.9

 

$

 

646.9

 

$

 

—

 

$

 

1,570.6

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year losses and LAE

 

 

 

331.2

 

 

 

176.8

 

 

 

375.7

 

 

 

—

 

 

 

883.7

 

Prior year favorable development,
   excluding catastrophes

 

 

 

(1.6

)

 

 

(14.2

)

 

 

(9.2

)

 

 

—

 

 

 

(25.0

)

Current year catastrophe losses

 

 

 

52.1

 

 

 

15.4

 

 

 

80.2

 

 

 

—

 

 

 

147.7

 

Prior year favorable catastrophe development

 

 

 

(21.7

)

 

 

(5.8

)

 

 

(21.3

)

 

 

—

 

 

 

(48.8

)

    Total losses and LAE

 

 

 

360.0

 

 

 

172.2

 

 

 

425.4

 

 

 

—

 

 

 

957.6

 

Amortization of deferred acquisition costs and other
   underwriting expenses(1)

 

 

 

186.0

 

 

 

131.6

 

 

 

169.2

 

 

 

—

 

 

 

486.8

 

Underwriting income

 

 

 

17.8

 

 

 

56.1

 

 

 

52.3

 

 

 

—

 

 

 

126.2

 

Net investment income

 

 

 

58.3

 

 

 

28.7

 

 

 

35.2

 

 

 

4.7

 

 

 

126.9

 

Fees and other income

 

 

 

1.4

 

 

 

1.2

 

 

 

3.6

 

 

 

—

 

 

 

6.2

 

Other segment items(2)

 

 

 

(2.7

)

 

 

(2.0

)

 

 

(1.9

)

 

 

(2.5

)

 

 

(9.1

)

Operating income before interest expense
   and income taxes

 

$

 

74.8

 

$

 

84.0

 

$

 

89.2

 

$

 

2.2

 

 

 

250.2

 

Interest on debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10.8

)

Operating income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

239.4

 

Non-operating income (loss) items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized investment losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.3

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

237.1

 

 

(1)
Includes expenses directly incurred by each reporting segment, as well as corporate and other general expenses that are allocated using a consistent and reasonable approach, generally based on net premiums earned.
(2)
Other segment items in Core Commercial, Specialty and Personal Lines primarily includes uncollectible premium charge-offs and non-insurance agency operating expenses, whereas other segment items in the Other segment includes operating costs related to certain of THG’s former life insurance businesses, including defined benefit pension-related costs, as well as holding company expenses.

 

 

Three Months Ended

 

 

 

March 31, 2025

 

(in millions)

 

 

Core Commercial

 

 

Specialty

 

 

Personal Lines

 

 

Other

 

 

Total

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

 

541.0

 

$

 

339.6

 

$

 

627.9

 

$

 

—

 

$

 

1,508.5

 

Net investment income

 

 

 

48.0

 

 

 

24.3

 

 

 

30.5

 

 

 

3.3

 

 

 

106.1

 

Fees and other income

 

 

 

1.3

 

 

 

1.3

 

 

 

3.7

 

 

 

0.1

 

 

 

6.4

 

Total operating revenues

 

$

 

590.3

 

$

 

365.2

 

$

 

662.1

 

$

 

3.4

 

 

 

1,621.0

 

Net realized and unrealized investment losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17.8

)

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

1,603.2

 

Operating income (loss) before interest expense
   and income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

 

541.0

 

$

 

339.6

 

$

 

627.9

 

$

 

—

 

$

 

1,508.5

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year losses and LAE

 

 

 

334.2

 

 

 

173.3

 

 

 

372.2

 

 

 

—

 

 

 

879.7

 

Prior year favorable development,
   excluding catastrophes

 

 

 

(1.3

)

 

 

(15.9

)

 

 

(2.8

)

 

 

—

 

 

 

(20.0

)

Current year catastrophe losses

 

 

 

54.5

 

 

 

17.2

 

 

 

35.9

 

 

 

—

 

 

 

107.6

 

Prior year favorable catastrophe development

 

 

 

(8.5

)

 

 

(2.5

)

 

 

(1.0

)

 

 

—

 

 

 

(12.0

)

    Total losses and LAE

 

 

 

378.9

 

 

 

172.1

 

 

 

404.3

 

 

 

—

 

 

 

955.3

 

Amortization of deferred acquisition costs and other
   underwriting expenses(1)

 

 

 

182.1

 

 

 

126.3

 

 

 

161.9

 

 

 

—

 

 

 

470.3

 

Underwriting income (loss)

 

 

 

(20.0

)

 

 

41.2

 

 

 

61.7

 

 

 

—

 

 

 

82.9

 

Net investment income

 

 

 

48.0

 

 

 

24.3

 

 

 

30.5

 

 

 

3.3

 

 

 

106.1

 

Fees and other income

 

 

 

1.3

 

 

 

1.3

 

 

 

3.7

 

 

 

0.1

 

 

 

6.4

 

Other segment items(2)

 

 

 

(2.5

)

 

 

(2.2

)

 

 

(1.7

)

 

 

(2.6

)

 

 

(9.0

)

Operating income before interest expense
   and income taxes

 

$

 

26.8

 

$

 

64.6

 

$

 

94.2

 

$

 

0.8

 

 

 

186.4

 

Interest on debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8.5

)

Operating income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

177.9

 

Non-operating income (loss) items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized investment losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17.8

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

160.1

 

 

(1)
Includes expenses directly incurred by each reporting segment, as well as corporate and other general expenses that are allocated using a consistent and reasonable approach, generally based on net premiums earned.
(2)
Other segment items in Core Commercial, Specialty and Personal Lines primarily includes uncollectible premium charge-offs and non-insurance agency operating expenses, whereas other segment items in the Other segment includes operating costs related to certain of THG’s former life insurance businesses, including defined benefit pension-related costs, as well as holding company expenses.

 

The following table provides identifiable assets for the Company’s segments and discontinued operations:

 

(in millions)

 

March 31, 2026

 

 

December 31, 2025

 

Property and Casualty

 

$

16,444.4

 

 

$

16,862.3

 

Assets of discontinued businesses

 

 

83.3

 

 

 

83.6

 

Total

 

$

16,527.7

 

 

$

16,945.9

 

 

The Company reviews the assets of its insurance subsidiaries collectively and does not allocate them among the Core Commercial, Specialty, Personal Lines and Other segments.