Q4 2015 Financial Results - The Hanover reports record results

5 February 2016

Q4 2015 Financial Results - The Hanover reports record results

WORCESTER, Mass., February 4, 2016 - The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $77.6 million, or $1.76 per diluted share, for the fourth quarter of 2015, compared to net income of $89.9 million, or $2.00 per diluted share, in the prior-year quarter. Operating income was $80.3 million, or $1.82 per diluted share, in the fourth quarter of 2015, compared to $79.6 million, or $1.77 per diluted share, in the prior-year quarter.

Net income for the full year 2015 was $331.5 million, or $7.40 per diluted share, compared to net income of $282.0 million, or $6.28 per diluted share, in 2014. Operating income was $280.0 million, or $6.25 per diluted share, in 2015, compared to operating income of $232.7 million, or $5.19 per diluted share, in 2014.

Fourth Quarter and Full Year Highlights

  • Growth in operating income per share of 3% in the fourth quarter and 20% for the year
  • Combined ratio of 95.0% in the fourth quarter and 95.7% for the full year, including 2.3 and 3.9 points of catastrophe losses, respectively
  • Net premiums written(2) of $1.0 billion in the quarter, and $4.8 billion for the year; the decrease from the prior year was principally driven by Chaucer’s disposal of its U.K. motor business in June 2015; U.S. net premiums written grew 2.1% in the quarter and 4.2% during the year
  • Continued price increases in Commercial and Personal Lines in the fourth quarter
  • Net investment income of $70.0 million in the fourth quarter and $279.1 million for the full year, up 1.7% and 3.3% over 2014, respectively
  • Book value per share of $66.21, down 0.5% from September 30, 2015, and up 2.1% from December 31, 2014; excluding the impact of net unrealized investments gains, book value per share up 1.2% from September 30, 2015, and up 8.2% from December 31, 2014
  • During 2015, repurchased approximately 1.6 million common shares for approximately $127.3 million, at an average price of $77.76 per share
  • On December 7, 2015, the Board of Directors increased the quarterly dividend on common shares by 12%, to $0.46 per common share

Q4 2015 Financial Results  - The Hanover reports Record results


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