Dec 31, 2022

Hanover Q4 2022 Earnings Report

Reported a net loss due to Winter Storm Elliott, made progress toward recapturing margins in property lines, and advanced long-term strategic and business priorities.

Key Takeaways

The Hanover Insurance Group reported a net loss of $11.6 million for Q4 2022, impacted by Winter Storm Elliott. Despite this, the company increased Personal Lines pricing and saw strong performance in its Specialty business.

Combined ratio was 108.0%, and 94.1% excluding catastrophes.

Catastrophe losses were $189.6 million, including $165 million from Winter Storm Elliott.

Net premiums written increased by 9.1%, with contributions from each segment.

Renewal price changes were 10.2% in Core Commercial, 13.2% in Specialty, and 10.1% in Personal Lines.

Total Revenue
$1.33B
Previous year: $1.22B
+9.1%
EPS
-$1.05
Previous year: $3.38
-131.1%
Core Commercial Price Increase
117.2%
Previous year: 6.3%
+1760.3%
Personal Lines Price Increase
109.1%
Previous year: 2%
+5355.0%
Gross Profit
$1.48B
Previous year: $1.36B
+9.0%
Cash and Equivalents
$305M
Previous year: $231M
+32.1%
Free Cash Flow
$195M
Previous year: $226M
-13.9%
Total Assets
$14B
Previous year: $14.3B
-1.8%

Hanover

Hanover

Hanover Revenue by Segment

Forward Guidance

The company has entered 2023 in a robust financial position and has strong visibility into improved margins and investment income, as we deliver comprehensive and innovative insurance solutions to our agent partners and customers, which should drive sustainable, profitable growth in the year ahead.