Hanover Insurance Group (THG) Reports Prelim Q2 Catastrophe Losses and Results

The Hanover Insurance Group, Inc. (NYSE: THG) today announced a preliminary estimate for second quarter catastrophe losses⁽¹⁾ of $157.1 million, before taxes, or 10.7 points of net earned premium. The losses primarily resulted from severe convective storm activity and mostly impacted the company's Personal Lines business.

"The property and casualty insurance industry sustained very significant catastrophe losses in the second quarter, including the highest CAT losses for the month of May in over a decade," said John C. Roche, president and chief executive officer at The Hanover. "These losses underscore the vital importance of the catastrophe management plan we initiated last year. We continue to diligently execute on this plan in targeted geographies, revising terms and conditions, increasing all-peril deductibles, and adding wind and hail deductibles (applied to renewal policies effective beginning April 1, 2024), while implementing rate increases and applying risk prevention measures, particularly in the Midwest."

"We are pleased with our overall bottom-line results, which are close to our second quarter expectations, despite the impact of catastrophe losses. Our results reflect outstanding underlying underwriting performance, including massive year-over-year improvement in our ex-CAT Personal Lines loss ratio, driven by enhanced profitability in our auto and homeowners lines," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "Additionally, our Core and Specialty segments demonstrated continued strength as we further executed our property portfolio initiatives and continued to navigate liability trends very well."

Taking catastrophe loss estimates and other currently available information into account, the company expects to report a second quarter combined ratio of 99.2%, and an ex-CAT combined ratio⁽²⁾ of 88.5%. The company also expects to generate after-tax net income of $1.12 per diluted share and operating income⁽³⁾ of $1.88 per diluted share for the second quarter. The difference between net income and operating income per share is due to the sale of some lower coupon fixed income securities, in consideration of expiring tax gains from 2021.

You May Also Be Interested In

• loanDepot receives NYSE non-compliance notice over stock price
• Alzamend Neuro (ALZN) files for 98.4M share offering by selling stockholders
• Nu Skin EVP of global sales takes medical leave