Jun 30, 2020

Hanover Q2 2020 Earnings Report

Reported second quarter results, with net income of $115.2 million and operating income of $62.7 million.

Key Takeaways

The Hanover Insurance Group reported a net income of $115.2 million, or $3.01 per diluted share, for the second quarter of 2020, compared to a net income of $74.0 million, or $1.79 per diluted share, in the prior-year quarter. Operating income was $62.7 million, or $1.63 per diluted share, compared to $77.7 million, or $1.88 per diluted share, in the prior-year quarter. The combined ratio was 96.2%, and the combined ratio excluding catastrophes was 82.7%.

Net income was $115.2 million, or $3.01 per diluted share, compared to $74.0 million, or $1.79 per diluted share, in the prior-year quarter.

Operating income was $62.7 million, or $1.63 per diluted share, compared to $77.7 million, or $1.88 per diluted share, in the prior-year quarter.

The combined ratio was 96.2%, and the combined ratio excluding catastrophes was 82.7%.

Book value per share increased 12.6% to $81.10.

Total Revenue
$1.08B
Previous year: $1.14B
-5.0%
EPS
$1.63
Previous year: $1.88
-13.3%
Core Commercial Price Increase
5.1%
Personal Lines Price Increase
4.8%
Gross Profit
$1.1B
Previous year: $1.07B
+3.2%
Cash and Equivalents
$183M
Previous year: $180M
+1.6%
Free Cash Flow
$185M
Previous year: $111M
+66.6%
Total Assets
$12.8B
Previous year: $12.2B
+5.6%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company updated full-year 2020 outlook, including an improved combined ratio, excluding catastrophes, between 89.5% and 90.5%, compared to the prior outlook of 91% to 92%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income