Sep 30, 2021

Hanover Q3 2021 Earnings Report

Reported net income and operating income with a combined ratio, excluding catastrophes.

Key Takeaways

The Hanover Insurance Group reported a net income of $34.0 million, or $0.94 per diluted share, for the third quarter of 2021. The company's net premiums written increased by 8.4%, and the combined ratio, excluding catastrophes, was 89.4%.

Net premiums written increased by 8.4%, reflecting strong growth in all segments.

The combined ratio was 102.3%, while the combined ratio, excluding catastrophes, was 89.4%.

Catastrophe losses amounted to $153.5 million, or 12.9% of net premiums earned, including the impact of Hurricane Ida of $75.0 million.

Rate increases of 6.9% were achieved in Core Commercial lines and 2.1% in Personal Lines.

Total Revenue
$1.38B
Previous year: $1.27B
+8.4%
EPS
$0.85
Previous year: $2.46
-65.4%
Core Commercial Price Increase
6.9%
Previous year: 5.7%
+21.1%
Personal Lines Price Increase
2.1%
Previous year: 4.7%
-55.3%
Gross Profit
$1.14B
Previous year: $1.11B
+2.4%
Cash and Equivalents
$171M
Previous year: $232M
-26.0%
Free Cash Flow
$284M
Previous year: $317M
-10.2%
Total Assets
$14.1B
Previous year: $13.4B
+5.3%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company remains committed to managing its business for sustainable long-term, profitable performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income