Worcester, MA – The Hanover Insurance Group, Inc. (NYSE: THG) recently reported net income of $8.6 million, or $0.24 per diluted share, in the third quarter of 2023, compared to net income of $0.5 million, or $0.01 per diluted share, in the prior-year quarter. Operating income(4) was $6.8 million, or $0.19 per diluted share, in the third quarter of 2023, compared to operating income of $35.7 million, or $0.99 per diluted share, in the prior-year quarter.
“While severe weather adversely impacted third quarter results for us and the industry, we are pleased with our underlying performance, which demonstrates the inherent strengths of our business and the effectiveness of our margin recapture plan,” said John C. Roche, president and chief executive officer at The Hanover.
“Our positive momentum is reflective of our enhanced underlying margins in Core Commercial, the continuing strength of our Specialty franchise and improvements in personal auto. These achievements give us even greater confidence in our ability to dramatically enhance performance in Personal Lines and the company overall. The personal lines market remains exceptionally firm, positioning us to achieve additional price increases, reshape our book of business and reach our target profitability objectives.”
“We also have taken decisive action to respond to elevated catastrophe loss trends,” said Roche. “We introduced increased all-peril as well as wind and hail deductibles on targeted new business in the third quarter, and are on track to deliver these adjustments on renewals in early 2024.”
“Our 90.7% third quarter combined ratio, excluding catastrophes, represented an improvement of 3.5 points, compared to the third quarter of 2022, and an improvement of two points sequentially,” said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover.
“This result was driven by markedly improved property loss experience in Core Commercial, as well as exceptional performance in our Specialty segment, which delivered an ex-CAT combined ratio of 81.3%. We achieved personal auto and home renewal price changes of 14% and 23%, respectively. In addition, we delivered net investment income of $84.2 million in the quarter, driven by an approximate 19% increase in net investment income in our fixed maturity portfolio. We expect the higher interest rate environment to help drive additional growth in net investment income in the future, adding significant earnings power to our business. Looking ahead, we are 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 us to execute on our long-term targets while delivering increased value for our shareholders.”
The complete results release is available here: The Hanover Third Quarter 2023 Results
Source: The Hanover