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Jun 30, 2024
Hanover Q2 2024 Earnings Report
Reported strong second quarter with net income and operating income per diluted share.
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
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 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income