Hanover Insurance Group (THG) Tops Q4 EPS by 74c, Revenues Beat
- Futures muted ahead of jobless claims data, AT&T rises after results
- Credit Suisse (CS) Falls 6% on 'Unacceptable Loss' as Exposure to Archegos Grew to More Than $20 Billion, Set to Raise Over $2 Billion to Support Liquidity
- Oil extends losses on U.S. stock build, pandemic concerns
- Cathie Wood's ARK Buys Over 5M Shares of Skillz (SKLZ), Nearly 3M Shares of IPO UiPath (PATH)
- Chipotle Mexican Grill (CMG) Tops Q1 Profit Views, Analysts Maintain Bullishness For 2021
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Hanover Insurance Group (NYSE: THG) reported Q4 EPS of $3.02, $0.74 better than the analyst estimate of $2.28. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.12 billion.
"In a year marked by a global pandemic and the related economic recession, very active weather and social unrest, we delivered outstanding results, rising to the occasion, posting record operating earnings and generating an operating return on equity(6) of 16.2% in the fourth quarter and 13.1% for the full year," said John C. Roche, president and chief executive officer at The Hanover.
"We are greatly encouraged by the positive underlying growth trends across our business, with fourth quarter rate increases of 6.4% in core commercial and 8.9% in specialty lines, as well as a rebound in customers' exposure bases. We continue to be intently focused on providing our agent partners and customers the high-quality insurance solutions and the pricing consistency they expect and deserve.
"Our performance in 2020 reflects the strength of our company, effectiveness of our strategy and versatility of our business model. We begin 2021 with a building growth momentum, an experienced team, a broad and innovative portfolio of products and services, and an unmatched distribution capability, exceptionally well-positioned to take advantage of the opportunities ahead," he concluded.
"We delivered excellent underwriting results during the year, reporting an all-in combined ratio of 94.4% and 88.1% excluding catastrophes, due in part to an improved mix, favorable development, as well as loss frequency benefits, primarily in our auto lines," said Jeffrey M. Farber, executive vice president and chief financial officer. "Our profitability was broad-based, with each of our business segments delivering target profitability, underscoring the diversification and resiliency of our businesses. Although 2020 was a particularly active catastrophe year, our full-year catastrophe losses were appreciably lower than industry averages, reflecting the effectiveness of our prior underwriting actions and prudent risk management practices. We also achieved our cost management and efficiency targets in 2020, identifying areas of permanent expense savings, and providing a clear line of sight to a 30-basis-point improvement in our expense ratio for 2021. In addition, we continued to be great stewards of our capital, returning approximately $312 million to shareholders through share repurchases and dividends during the year, and growing book value per share by nearly 16% to a record level of $87.96. We start the new year in an excellent financial position, backed by a strong balance sheet, ample liquidity and a high-quality investment portfolio."
For earnings history and earnings-related data on Hanover Insurance Group (THG) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- The Hartford (HIG) Reports Q1 EPS of $0.56; Rejects Additional Proposal from Chubb (CB), Raises Buyback
- East-West Bancorp (EWBC) Tops Q1 EPS by 20c
- Old Dominion Freight Line (ODFL) Tops Q1 EPS by 12c, Revenues Beat
Create E-mail Alert Related CategoriesCorporate News, Earnings, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!