Jun 30, 2021

Hanover Q2 2021 Earnings Report

Reported strong second-quarter results driven by exceptional growth and a customer-centric strategy.

Key Takeaways

The Hanover Insurance Group reported a strong second quarter with net income of $128.5 million, or $3.52 per diluted share, and operating income of $104.0 million, or $2.85 per diluted share. The combined ratio was 94.4%, and the combined ratio excluding catastrophes was 87.9%.

Net premiums written increased by 11.7%, or 8.6% excluding the impact of premium returns in 2020, reflecting strong growth in all segments.

The combined ratio was 94.4%, and the combined ratio excluding catastrophes was 87.9%.

Catastrophe losses were $76.8 million, or 6.5% of net premiums earned, primarily due to wind, rain, and hail events in the Midwest.

Net investment income was $75.6 million, up 31.0% from the prior-year quarter, primarily from higher partnership income.

Total Revenue
$1.21B
Previous year: $1.08B
+11.7%
EPS
$2.85
Previous year: $1.63
+74.8%
Core Commercial Price Increase
6.5%
Previous year: 5.1%
+27.5%
Personal Lines Price Increase
2.8%
Previous year: 4.8%
-41.7%
Gross Profit
$1.16B
Previous year: $1.1B
+5.1%
Cash and Equivalents
$106M
Previous year: $183M
-41.7%
Free Cash Flow
$166M
Previous year: $185M
-10.1%
Total Assets
$13.7B
Previous year: $12.8B
+6.9%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company did not provide specific forward guidance in this earnings report.

Revenue & Expenses

Visualization of income flow from segment revenue to net income