The Hanover Q1 Financial Results

3 May 2018

The Hanover Q1 Financial Results
  • WORCESTER, Mass., May 2, 2018 - The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $67.7 million, or $1.57 per diluted share, in the first quarter of 2018, compared to $45.2 million, or $1.05 per diluted share, in the prior-year quarter. Operating income(1) was $84.0 million, or $1.95 per diluted share, for the first quarter of 2018, compared to operating income of $40.8 million, or $0.95 per diluted share, in the prior-year quarter. The difference between net and operating income in the first quarter of 2018 was primarily due to the decline in fair value of equity securities of $23.0 million, which is recognized in net income following a new accounting standard effective January 1, 2018.

First Quarter Highlights

  • Combined ratio of 96.9%, including 5.6 points of catastrophe losses and 0.7 points of favorable prior year development
  • Catastrophe losses of $71.2 million, or 5.6 points of the combined ratio, driven primarily by winter weather events in the Northeast and Midwest in January and March, in the domestic business
  • Combined ratio, excluding catastrophes(2), of 91.3%, an improvement of 1.1 points over the prior-year quarter
  • Net premiums written increased 6.6%, driven by strong growth in Personal and Commercial Lines
  • Net investment income of $82.9 million, up 16.6% from the prior-year quarter, aided by growth in partnership income and higher operating cashflows
  • Book value per share of $68.56, down 2.9% from December 31, 2017, primarily due to change in fair value of the fixed income portfolio due to interest rate movements, partially offset by earnings

The Hanover Q1 Financial Results


Share this:

Media enquiries

Greer Stead

Marketing Manager

work, pref T +44 (0)20 7105 8258
website

Mili Sultana

Marketing & Comms Executive

work, pref T +44 (0)20 7105 8098
website
You are currently offline. Some pages or assets may fail to load.