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Mar 31
Hanover Q1 2025 Earnings Report
Reported Excellent First Quarter Net Income and Operating Income
Key Takeaways
The Hanover reported strong first quarter 2025 results with net income of $128.2 million and operating income of $141.8 million, resulting in net and operating return on equity of 17.4% and 17.2%, respectively. The combined ratio improved to 94.1%, and net premiums written grew by 3.9%.
Achieved a combined ratio of 94.1%, with an ex-catastrophe combined ratio of 87.8%.
Reported net income of $128.2 million ($3.50 per diluted share) and operating income of $141.8 million ($3.87 per diluted share).
Experienced 3.9% growth in net premiums written compared to the prior-year quarter.
Delivered strong net investment income of $106.1 million, an 18.3% increase from the prior year.
Hanover
Hanover
Hanover Revenue by Segment
Revenue by Segment
Core Commercial Net Premiums Earned Revenue
CapyFin.comSpecialty Net Premiums Earned Revenue
CapyFin.comPersonal Lines Net Premiums Earned Revenue
CapyFin.com Forward Guidance
The company anticipates accelerating premium growth through the year by leveraging market position, product offerings, and strategic initiatives in Specialty, Core Commercial, and Personal Lines. Market conditions are expected to remain favorable.
Positive Outlook
- Expects to accelerate premium growth throughout the year.
- Anticipates increasing growth in most profitable lines within Specialty.
- Expects a more nuanced pricing strategy to capitalize on opportunities in Core Commercial, particularly Small Commercial.
- Will continue to leverage improved profitability to drive increasing policy counts and premium growth in targeted Personal Lines states.
- Market conditions remain favorable across most business segments.
Challenges Ahead
- Navigating an uncertain economic landscape.
- Elevated property large losses in Core Commercial.
- Increase in the loss ratio in Specialty primarily due to a more normal level of property large losses.
- Policies in force in Personal Lines decreased slightly compared to the previous quarter.
- Potential impacts of general economic and socioeconomic conditions on operating and financial results.