WORCESTER, Mass., May 3, 2017 - The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $45.2 million, or $1.05 per diluted share, for the first quarter of 2017, compared to $78.2 million, or $1.80 per diluted share, in the prior-year quarter. Operating income was $40.8 million, or $0.95 per diluted share, for the first quarter of 2017, compared to $71.5 million, or $1.64 per diluted share, in the prior-year quarter.
First Quarter Highlights
- Catastrophe losses of $84.1 million before taxes, or 7.1% of earned premiums, primarily from domestic catastrophe events in the Midwest; this compared to $31.2 million, or 2.7%, in the prior-year quarter
- Combined ratio, excluding catastrophes(2) of 92.4%, in line with the first quarter of 2016
- No domestic prior-year loss reserve development
- Net premiums written up 3.7%, driven by growth in domestic businesses
- Continued price increases in Personal and Commercial Lines
- Net investment income of $71.1 million in the first quarter, up 4.1% compared to the prior-year period
- Book value per share of $68.44, up 1.5% from December 31, 2016; book value per share excluding net unrealized gains on investments(3) of $63.62, up 1.0%
