Hanover Q3 2023 Earnings Report
Key Takeaways
The Hanover reported a net income of $8.6 million, or $0.24 per diluted share, in Q3 2023, compared to $0.5 million, or $0.01 per diluted share, in the prior-year quarter. The combined ratio was 104.4%, impacted by catastrophe losses of $195.8 million. However, the combined ratio excluding catastrophes was 90.7%.
Combined ratio was 104.4%, but 90.7% excluding catastrophes.
Catastrophe losses totaled $195.8 million, driven by severe convective storm activity.
Net premiums written increased by 6.0%, with contributions from each segment.
Net investment income increased by 15.3% to $84.2 million.
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Hanover Revenue by Segment
Forward Guidance
The Hanover is well-positioned in the market with a proven business strategy, broad and innovative capabilities, tremendous distribution partners, strong balance sheet, and exceptional talent, which will enable it to execute on long-term targets while delivering increased value for shareholders.
Positive Outlook
- Achieve additional price increases in the personal lines market.
- Reshape the book of business.
- Reach target profitability objectives.
- Deliver adjustments on renewals in early 2024.
- Drive additional growth in net investment income in the future.
Challenges Ahead
- Severe weather affecting results.
- Elevated catastrophe loss trends.
- Elevated homeowners current accident year loss and LAE ratio, excluding catastrophes.
- Decrease in the fair value of fixed maturity investments.
- Uncertainty around ultimate losses incurred, especially for “longer-tail” liability businesses