WORCESTER, Mass., August 2, 2017- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $78.4 million, or $1.83 per diluted share, for the second quarter of 2017, compared to net income of $2.0 million, or $0.05 per diluted share, in the prior-year quarter, which included a non-operating charge of $56.0 million, net of tax, on the retirement of debt. Operating income was $72.3 million, or $1.69 per diluted share, for the second quarter of 2017, compared to $54.0 million, or $1.24 per diluted share, in the prior-year quarter.
Second Quarter Highlights
- Combined ratio, excluding catastrophes (3), of 90.8%, an improvement of 2.0 points over the prior-year quarter
- Catastrophe losses of $57.1 million before taxes, or 4.8% of earned premiums, primarily in Commercial Lines
- Net premiums written of $1.3 billion; up 4.4%, driven primarily by growth in Personal Lines
- Continued price increases in Commercial and Personal Lines
- Net investment income of $72.3 million, up 4.6% compared to the prior-year quarter
- Book value per share of $70.18, up 2.5% from the first quarter of 2017; book value per share, excluding net unrealised gains on investments (4), of $64.87, up 2.0%
- Repurchased approximately 275,000 shares of common stock for $23.4 million
- Initiated expense actions to generate annualised pre-tax savings of approximately $50 million to accelerate strategic expense leverage initiative and to reinvest in the business.