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Dec 31, 2024
Hanover Q4 2024 Earnings Report
The Hanover reported record fourth quarter net income and operating income, driven by strong performance across all segments and effective execution of strategic priorities.
Key Takeaways
The Hanover Insurance Group reported a record fourth quarter with net income of $167.9 million, or $4.59 per diluted share, and operating income of $194.6 million, or $5.32 per diluted share. The company's combined ratio was 89.2%, and net premiums written increased by 7.4%.
Net income reached $167.9 million, or $4.59 per diluted share, compared to $107.9 million, or $2.98 per diluted share, in the prior-year quarter.
Operating income was $194.6 million, or $5.32 per diluted share, up from $113.1 million, or $3.13 per diluted share, in the prior-year quarter.
The combined ratio improved to 89.2%, with a combined ratio excluding catastrophes of 87.5%.
Net premiums written increased by 7.4%.
Hanover
Hanover
Forward Guidance
The company anticipates continued progress in 2025, leveraging targeted growth initiatives and capitalizing on emerging opportunities, expecting strong pricing to optimize geographic mix and achieve broad-based profitability.
Positive Outlook
- Expects continued progress in 2025.
- Leveraging targeted growth initiatives.
- Capitalizing on emerging opportunities.
- Strong pricing will enable optimization of geographic mix.
- Achieving broad-based profitability across all segments.
Challenges Ahead
- Potential impacts of inflation.
- Claims severity from higher cost of repairs due to supply chain disruptions.
- Potential impacts of economic activity.
- Competition in the insurance industry.
- Uncertainties in estimating indemnification liabilities.