Sep 30, 2022

Hanover Q3 2022 Earnings Report

Hanover's Q3 2022 results were impacted by inflationary environment and Hurricane Ian, but delivered solid underwriting results and strong investment performance.

Key Takeaways

The Hanover Insurance Group, Inc. reported net income of $0.2 million, or $0.01 per diluted share, in the third quarter of 2022. Operating income was $35.7 million, or $0.99 per diluted share, for the third quarter of 2022. Net premiums written increased of 9.5%.

Combined ratio of 101.0%; combined ratio, excluding catastrophes, of 94.2%

Catastrophe losses of $90.1 million, or 6.8 points of the combined ratio, including the impact from Hurricane Ian of $28.0 million

Net premiums written increase of 9.5%, with contributions from each segment

Renewal price change of 11.2% in Core Commercial, 12.4% in Specialty and 7.3% in Personal Lines, driven by homeowners renewal price change of 12.1%

Total Revenue
$1.51B
Previous year: $1.38B
+9.5%
EPS
$0.99
Previous year: $0.85
+16.5%
Core Commercial Price Increase
101.3%
Previous year: 6.9%
+1368.1%
Personal Lines Price Increase
107.3%
Previous year: 2.1%
+5009.5%
Gross Profit
$1.23B
Previous year: $1.14B
+7.6%
Cash and Equivalents
$165M
Previous year: $171M
-3.7%
Free Cash Flow
$311M
Previous year: $284M
+9.4%
Total Assets
$13.7B
Previous year: $14.1B
-2.5%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company is focused on long-term target for operating ROE and responsible capital management for the benefit of its valued shareholders.