Mar 31, 2022

Hanover Q1 2022 Earnings Report

Reported strong first quarter with increased net income and operating income.

Key Takeaways

The Hanover Insurance Group reported a strong first quarter with net income of $104.8 million, or $2.90 per diluted share, and operating income of $117.7 million, or $3.26 per diluted share. The company's operating return on equity was 15.7%, and net premiums written increased by 9.7% across all segments. The ex-CAT combined ratio was 89.8%, marking the eighth consecutive quarter below 90%.

Operating income increased 91.6% from the prior-year quarter.

Combined ratio of 93.4%; combined ratio, excluding catastrophes of 89.8%.

Net premiums written increased by 9.7%, with strong growth from each segment.

Renewal price change up 9.7% in Core Commercial, 12.6% in Specialty and 4.3% in Personal Lines.

Total Revenue
$1.31B
Previous year: $1.2B
+9.7%
EPS
$3.26
Previous year: $1.66
+96.4%
Core Commercial Price Increase
93%
Previous year: 6.1%
+1424.6%
Personal Lines Price Increase
97.1%
Previous year: 3.1%
+3032.3%
Gross Profit
-$127M
Previous year: $1.14B
-111.1%
Cash and Equivalents
$272M
Previous year: $112M
+142.6%
Free Cash Flow
$195M
Previous year: $140M
+39.9%
Total Assets
$13.8B
Previous year: $13.4B
+3.0%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company remains on track with its long-term targets for underwriting returns and operating ROE, which will likely be augmented by stronger net investment income.