Hanover Q4 2024 Earnings Report
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.