Hanover Q4 2023 Earnings Report
Key Takeaways
The Hanover reported a strong fourth quarter with net income of $107.9 million, or $2.98 per diluted share, and operating income of $113.1 million, or $3.13 per diluted share. The combined ratio was 94.2%, and the operating return on equity was 15.7%.
Combined ratio of 94.2%, excluding catastrophes, was 90.2%.
Renewal price increases were 20.6% in Personal Lines, 12.4% in Core Commercial, and 11.6% in Specialty.
Net investment income increased by 7.5% to $81.6 million due to higher bond reinvestment rates.
Book value per share rose by 16.4% from September 30, 2023, to $68.93, driven by increased fair value of fixed maturity investments and strong earnings.
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Hanover Revenue by Segment
Forward Guidance
The company is optimistic about its position and confident in its strong outlook for 2024, including further enhancement of its ex-CAT combined ratio, supported by robust improvement in Personal Lines, continued strong profitability in Specialty and Core Commercial, and overall solid growth for the enterprise, led by Specialty.
Positive Outlook
- Further enhancement of ex-CAT combined ratio.
- Robust improvement in Personal Lines.
- Continued strong profitability in Specialty and Core Commercial.
- Overall solid growth for the enterprise, led by Specialty.
- Expect investment income to continue to meaningfully augment operating results in the years ahead.