Hanover Q2 2024 Earnings Report
Key Takeaways
The Hanover Insurance Group reported a net income of $40.5 million, or $1.12 per diluted share and an operating income of $68.1 million, or $1.88 per diluted share for the second quarter of 2024. The company's combined ratio was 99.2%, and the combined ratio excluding catastrophes was 88.5%.
Combined ratio of 99.2%; combined ratio, excluding catastrophes, of 88.5%.
Catastrophe losses of $157.1 million, or 10.7 points of the combined ratio.
Net premiums written increase of 5.1%.
Renewal price increases of 18.5% in Personal Lines, 11.7% in Core Commercial and 11.7% in Specialty.
Hanover
Hanover
Hanover Revenue by Segment
Forward Guidance
The company expects underwriting margins to continue to improve as past and current rate increases earn-in, and further execute against catastrophe exposure initiatives. The current interest rate environment is expected to continue to provide an accumulating benefit of higher investment yields.
Positive Outlook
- Underwriting margins are expected to continue to improve as past and current rate increases earn-in.
- Further execution against catastrophe exposure initiatives.
- The current interest rate environment is expected to continue to provide an accumulating benefit of higher investment yields.
- Confident positive trajectory will continue.
- Committed to delivering value to stakeholders through sustainable, profitable growth and top-tier performance.
Challenges Ahead
- Dynamic environment requires financial discipline.
- Maintaining robust reserving process due to current casualty market dynamics.
- Doubling down on data and analytics tools to inform pricing and underwriting.
- Remaining diligent with investment portfolio.
- Unspecified risks and uncertainties in the company’s business that may affect future performance.