EX-99.2 3 thg-ex99_2.htm EX-99.2 EX-99.2

 

Exhibit 99.2

img13518483_0.jpg 

 

 

 

FINANCIAL SUPPLEMENT
FIRST QUARTER 2024

 

 

 

 

 

 

 

 

 

 

THE HANOVER INSURANCE GROUP

FINANCIAL SUPPLEMENT

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

Segment Descriptions....................................................................................................

1

Financial Highlights.........................................................................................................

2

Consolidated Financial Statements

 

Income Statements.............................................................................................................

3

Balance Sheets...................................................................................................................

4

Pre-tax Operating Results and Related Metrics

 

Consolidated.......................................................................................................................

5-6

Core Commercial...............................................................................................................

7-8

Specialty..............................................................................................................................

9-10

Personal Lines....................................................................................................................

11-13

Investments

 

Net Investment Income and Yields.....................................................................................

14

Investment Portfolio.............................................................................................................

15

Credit Quality and Duration of Fixed Maturities...............................................................

16

Top 25 Corporate and Municipal Fixed Maturity Holdings.............................................

17

Reconciliation of Operating Income (Loss) to Net Income (Loss)......................

18

Other Information

Non-GAAP Financial Measures........................................................................................

19

Premium Related Metric Definitions.................................................................................

20

Corporate Information.........................................................................................................

21

Market and Dividend Information......................................................................................

21

Financial Strength and Debt Ratings................................................................................

21

 

 

 

i

 

 

THE HANOVER INSURANCE GROUP

BASIS OF PRESENTATION

SEGMENT DESCRIPTIONS

 

 

 

 

 

 

 

 

CORE COMMERCIAL

 

 

 

 

 

 

 

 

Sub-segment

Customer and business type

 

Primary lines of business

Small Commercial

Coverage to small businesses, with annual premiums of $50,000 or less;
Products are tailored to specific industry segments as needed.

 

● Business owners’ policy/commercial multiple peril
● Commercial automobile
● Workers’ compensation
● Other (general liability, commercial umbrella, monoline property)

 

 

 

 

 

 

 

 

 

Middle Market

Coverage to mid-sized businesses with annual premiums starting at $50,000, focusing on those between $50,000 and $250,000. Products are tailored to certain specific industry segments, including technology, manufacturing, human services, retail, real estate, among others.

 

● Commercial multiple peril
● Commercial automobile
● Workers’ compensation
● Other (general liability, commercial umbrella, monoline property)

SPECIALTY

 

 

 

 

 

 

 

 

Sub-segment

Customer and business type

 

Primary lines of business

Professional and Executive Lines

Coverage to small to mid-sized non-public companies, including lawyer, engineer, accountant, and various other professional and advisory firms including healthcare; provide protection for directors, officers and employees against actual or alleged errors, negligence or bad faith, employment practices.

 

● Professional liability
● Management liability
● Fidelity and crime
● Other property and liability lines for healthcare firms

 

 

 

 

 

 

 

 

 

Specialty Property & Casualty

Program business - coverage to markets with specialty or risk management needs related to groups of similar businesses;
Hanover Specialty Industrial (HSI) - coverage to small and medium chemical, paint, solvent and other manufacturers and distributors;
Excess & Surplus - non-admitted general liability and property coverage to risks outside of the appetite of standard commercial lines;
Specialty General Liability - admitted coverage for higher-hazard liability risks

 

● Commercial multiple peril
● Commercial automobile
● Workers’ compensation
● Other (general liability, commercial umbrella, monoline property)

 

 

 

 

 

 

 

 

 

Marine

Includes coverage for inland and ocean marine, and insures against physical losses to property, such as contractor's equipment, builders' risk and goods in transit. Also covers jewelers block, fine art and other valuables.

 

● Inland/ocean marine
● Ancillary lines of business written through marine agents

 

 

 

 

 

 

 

 

 

Surety and Other

Provides coverage for construction and other firms, as well as sole proprietors in the event of claims for non-performance or non-payment, and commercial surety coverage related to fiduciary or regulatory obligations.

 

● Bond

PERSONAL LINES

 

 

 

 

 

 

 

 

Sub-segment

Customer and business type

 

Primary lines of business

Personal Automobile

Includes coverage for individuals against losses incurred from personal bodily injury, bodily injury to third parties, property damage to an insured's vehicle, and property damage to other vehicles and other property.

 

● Personal automobile

 

 

 

 

 

 

 

 

 

Homeowners and Other

Includes coverage for individuals for losses to their residences and personal property, such as those caused by fire, wind, hail, water damage (excluding flood), theft and vandalism, and against third-party liability claims.

 

● Homeowners
● Personal umbrella
● Inland Marine (jewelry, art, etc.)
● Other (fire, personal watercraft, other miscellaneous)

OTHER

 

 

 

 

 

 

 

 

Included in Other is Opus Investment Management, Inc. (“Opus”), which provides investment management services to The Hanover Insurance Group, Inc. and its subsidiaries (“THG”), as well as institutions, pension funds, and other organizations. We expect to exit substantially all of Opus’ business operations serving unaffiliated entities by the end of the second quarter of 2024. Investment management services provided by Opus to THG related to its investment-grade fixed maturities portfolio will also be transferred to an external manager. The Other segment also includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits due to our former life insurance employees and agents; and our run-off voluntary assumed property and casualty pools, run-off direct asbestos and environmental, and our product liability businesses.

 

 

1

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Q1

 

(In millions, except earnings per share)

 

 

2023 (1)

 

 

2023 (2)

 

 

2023

 

 

2023

 

 

2024

 

PREMIUMS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

1,577.3

 

$

1,589.9

 

$

1,763.3

 

$

1,502.4

 

$

1,625.8

 

Net premiums written

 

 

1,421.5

 

 

1,446.8

 

 

1,596.4

 

 

1,345.5

 

 

1,454.0

 

Net premiums earned

 

 

1,380.0

 

 

1,411.7

 

 

1,431.1

 

 

1,440.3

 

 

1,448.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) before interest and taxes

 

$

13.2

 

$

(79.4)

 

$

13.7

 

$

158.1

 

$

149.7

 

Operating income (loss) after taxes

 

 

4.6

 

 

(68.3)

 

 

6.8

 

 

113.1

 

 

111.9

 

Income (loss) from continuing operations

 

 

(12.0)

 

 

(70.0)

 

 

8.2

 

 

107.3

 

 

115.5

 

Net income (loss)

 

 

(12.0)

 

 

(69.2)

 

 

8.6

 

 

107.9

 

 

115.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA (DILUTED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) after taxes

 

$

0.13

 

$

(1.91)

 

$

0.19

 

$

3.13

 

$

3.08

 

Income (loss) from continuing operations

 

 

(0.34)

 

 

(1.96)

 

 

0.23

 

 

2.97

 

 

3.18

 

Net income (loss)

 

 

(0.34)

 

 

(1.94)

 

 

0.24

 

 

2.98

 

 

3.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive weighted average shares outstanding

 

 

36.1

 

 

36.0

 

 

36.1

 

 

36.2

 

 

36.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

35.6

 

 

35.7

 

 

35.8

 

 

35.8

 

 

35.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

March 31

 

(In millions, except per share data)

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2024

 

Total assets

 

$

14,091.7

 

$

14,186.7

 

$

14,315.0

 

$

14,612.6

 

$

14,594.1

 

Total loss and loss adjustment expense reserves

 

 

7,143.4

 

 

7,313.3

 

 

7,329.8

 

 

7,308.1

 

 

7,331.1

 

Total shareholders' equity

 

 

2,389.0

 

 

2,237.9

 

 

2,116.3

 

 

2,465.6

 

 

2,522.7

 

Total shareholders' equity, excluding net unrealized appreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(depreciation) on fixed maturity investments, net of tax

 

 

2,934.2

 

 

2,847.9

 

 

2,837.2

 

 

2,928.0

 

 

3,018.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and Casualty Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

2,674.5

 

$

2,508.3

 

$

2,501.9

 

$

2,642.7

 

$

2,762.3

 

Premium to surplus ratio

 

 

2.09:1

 

 

2.27:1

 

 

2.31:1

 

 

2.20:1

 

 

2.12:1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

66.89

 

$

62.62

 

$

59.21

 

$

68.93

 

$

70.22

 

Book value per share, excluding net unrealized appreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(depreciation) on fixed maturity investments, net of tax

 

$

82.16

 

$

79.68

 

$

79.38

 

$

81.86

 

$

84.01

 

Tangible book value per share (total book value excluding goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and intangibles)

 

$

61.44

 

$

57.17

 

$

53.76

 

$

63.49

 

$

64.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

35.7

 

 

35.8

 

 

35.8

 

 

35.8

 

 

35.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/equity

 

 

32.8 %

 

 

35.0 %

 

 

37.0 %

 

 

31.8 %

 

 

31.1 %

 

Total debt/total capital

 

 

24.7 %

 

 

25.9 %

 

 

27.0 %

 

 

24.1 %

 

 

23.7 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Operating income metrics are calculated using diluted shares outstanding; loss from continuing operations, net of taxes and net loss metrics are calculated using basic shares outstanding due to antidilution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Per share data is calculated using basic shares outstanding due to antidilution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

CONSOLIDATED INCOME (LOSS) STATEMENTS

 

 

 

 

 

 

 

 

 

Three Months ended March 31

(In millions)

 

 

2024

 

2023

% Change

 

 

 

 

 

 

 

 Premiums earned

 

$

1,448.6

$

1,380.0

5.0

 Net investment income

 

 

89.7

 

78.7

14.0

 Net realized and unrealized investment gains (losses):

 

 

 

 

 

 

       Net realized losses from sales and other

 

 

(1.3)

 

(1.1)

18.2

       Net change in fair value of equity securities

 

 

6.5

 

(7.1)

N/M

       Recoveries (impairments) on investments:

 

 

 

 

 

 

                 Credit-related recoveries (impairments)

 

 

0.3

 

(4.5)

N/M

                 Losses on intent to sell securities

 

 

-

 

(10.3)

N/M

 

 

 

0.3

 

(14.8)

N/M

 Total net realized and unrealized investment gains (losses)

 

 

5.5

 

(23.0)

N/M

 Fees and other income

 

 

7.3

 

8.0

(8.8)

 Total revenues

 

 

1,551.1

 

1,443.7

7.4

 

 

 

 

 

 

 LOSSES AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 Losses and loss adjustment expenses

 

 

935.2

 

1,017.4

(8.1)

 Amortization of deferred acquisition costs

 

 

299.0

 

288.8

3.5

 Interest expense

 

 

8.5

 

8.5

-

 Other operating expenses

 

 

163.1

 

146.5

11.3

 Total losses and expenses

 

 

1,405.8

 

1,461.2

(3.8)

 

 

 

 

 

 

 

 Income (loss) before income taxes

 

 

145.3

 

(17.5)

N/M

 Income tax expense (benefit)

 

 

29.8

 

(5.5)

N/M

 Net income (loss)

 

$

115.5

$

(12.0)

N/M

 

 

 

 

 

 

 

3

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

 

(In millions, except per share data)

 

2024

 

2023

 

% Change

ASSETS

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

Fixed maturities, at fair value (amortized cost of $8,645.4 and $8,573.9)

$

8,015.4

$

7,985.3

 

0.4

Equity securities, at fair value

 

137.4

 

130.9

 

5.0

Other investments

 

794.4

 

796.9

 

(0.3)

Total investments

 

8,947.2

 

8,913.1

 

0.4

Cash and cash equivalents

 

264.6

 

316.1

 

(16.3)

Accrued investment income

 

57.9

 

58.2

 

(0.5)

Premiums and accounts receivable, net

 

1,739.5

 

1,705.6

 

2.0

Reinsurance recoverable on paid and unpaid losses and unearned premiums

 

1,999.8

 

2,056.1

 

(2.7)

Deferred acquisition costs

 

619.3

 

620.8

 

(0.2)

Deferred income tax asset

 

180.2

 

173.3

 

4.0

Goodwill

 

178.8

 

178.8

 

-

Other assets

 

521.4

 

504.0

 

3.5

Assets of discontinued businesses

 

85.4

 

86.6

 

(1.4)

Total assets

$

14,594.1

$

14,612.6

 

(0.1)

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Loss and loss adjustment expense reserves

$

7,331.1

$

7,308.1

 

0.3

Unearned premiums

 

3,104.9

 

3,102.5

 

0.1

Expenses and taxes payable

 

679.1

 

775.9

 

(12.5)

Reinsurance premiums payable

 

61.6

 

64.3

 

(4.2)

Debt

 

783.4

 

783.2

 

-

Liabilities of discontinued businesses

 

111.3

 

113.0

 

(1.5)

Total liabilities

 

12,071.4

 

12,147.0

 

(0.6)

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Preferred stock, par value $0.01 per share;

 

 

 

 

 

 

20.0 million shares authorized; none issued

 

-

 

-

 

-

Common stock, par value $0.01 per share; 300.0 million shares

 

 

 

 

 

 

authorized; 60.5 million shares issued

 

0.6

 

0.6

 

-

Additional paid-in capital

 

1,941.3

 

1,939.2

 

0.1

Accumulated other comprehensive loss

 

(548.9)

 

(517.2)

 

6.1

Retained earnings

 

2,993.9

 

2,909.4

 

2.9

Treasury stock at cost (24.6 million and 24.7 million shares)

 

(1,864.2)

 

(1,866.4)

 

(0.1)

Total shareholders' equity

 

2,522.7

 

2,465.6

 

2.3

Total liabilities and shareholders' equity

$

14,594.1

$

14,612.6

 

(0.1)

 

4

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RATIOS

CONSOLIDATED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core

 

 

 

Personal

 

 

 

 

 

 

Core

 

 

 

Personal

 

 

 

 

(In millions, except percentage data)

 

 

Commercial

 

Specialty

 

Lines

 

Other

 

Total

 

 

Commercial

 

Specialty

 

Lines

 

Other

 

Total

Gross premiums written

 

$

660.0

$

408.4

$

557.4

$

-

$

1,625.8

 

$

634.1

$

392.5

$

550.7

$

-

$

1,577.3

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

Net premiums written

 

$

582.4

$

339.8

$

531.8

$

-

$

1,454.0

 

$

565.3

$

324.3

$

531.9

$

-

$

1,421.5

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

Net premiums earned

 

$

528.9

$

320.9

$

598.8

$

-

$

1,448.6

 

$

507.4

$

311.7

$

560.9

$

-

$

1,380.0

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

Current year, excluding catastrophe losses

 

 

309.4

 

156.6

 

392.7

 

-

 

858.7

 

 

296.9

 

166.8

 

381.7

 

-

 

845.4

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

 

(9.2)

 

(1.1)

 

(0.1)

 

-

 

(10.4)

 

 

3.5

 

(18.1)

 

11.6

 

-

 

(3.0)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Current year catastrophe losses

 

 

24.5

 

10.2

 

59.2

 

-

 

93.9

 

 

64.6

 

25.8

 

84.6

 

-

 

175.0

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Prior year unfavorable (favorable) catastrophe development

 

 

(3.8)

 

(3.2)

 

-

 

-

 

(7.0)

 

 

(0.7)

 

(4.3)

 

5.0

 

-

 

-

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Total losses and LAE

 

 

320.9

 

162.5

 

451.8

 

-

 

935.2

 

 

364.3

 

170.2

 

482.9

 

-

 

1,017.4

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Amortization of deferred acquisition costs and other underwriting expenses

 

 

177.1

 

119.5

 

156.1

 

-

 

452.7

 

 

167.9

 

110.8

 

150.2

 

-

 

428.9

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

GAAP underwriting profit (loss)

 

 

30.9

 

38.9

 

(9.1)

 

-

 

60.7

 

 

(24.8)

 

30.7

 

(72.2)

 

-

 

(66.3)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Net investment income

 

 

40.8

 

20.3

 

25.6

 

3.0

 

89.7

 

 

36.1

 

17.0

 

22.6

 

3.0

 

78.7

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Other income

 

 

1.3

 

1.3

 

4.0

 

0.7

 

7.3

 

 

1.2

 

1.8

 

4.3

 

0.7

 

8.0

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Other operating expenses

 

 

(1.5)

 

(1.7)

 

(1.6)

 

(3.2)

 

(8.0)

 

 

(1.3)

 

(1.2)

 

(1.3)

 

(3.4)

 

(7.2)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

-

 

 

Operating income (loss) before income taxes

 

$

71.5

$

58.8

$

18.9

$

0.5

$

149.7

 

$

11.2

$

48.3

$

(46.6)

$

0.3

$

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

 

58.5 %

 

48.7 %

 

65.6 %

 

N/M

 

59.3 %

 

 

58.5 %

 

53.5 %

 

68.0 %

 

N/M

 

61.2 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

 

(1.7)%

 

(0.3)%

 

-

 

N/M

 

(0.7)%

 

 

0.7 %

 

(5.8)%

 

2.1 %

 

N/M

 

(0.2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

 

4.6 %

 

3.2 %

 

9.9 %

 

N/M

 

6.5 %

 

 

12.7 %

 

8.3 %

 

15.1 %

 

N/M

 

12.7 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) catastrophe development

 

 

(0.7)%

 

(1.0)%

 

-

 

N/M

 

(0.5)%

 

 

(0.1)%

 

(1.4)%

 

0.9 %

 

N/M

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loss and LAE ratio

 

 

60.7 %

 

50.6 %

 

75.5 %

 

N/M

 

64.6 %

 

 

71.8 %

 

54.6 %

 

86.1 %

 

N/M

 

73.7 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

 

33.2 %

 

37.0 %

 

25.5 %

 

N/M

 

30.9 %

 

 

32.9 %

 

35.3 %

 

26.1 %

 

N/M

 

30.7 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

 

93.9 %

 

87.6 %

 

101.0 %

 

N/M

 

95.5 %

 

 

104.7 %

 

89.9 %

 

112.2 %

 

N/M

 

104.4 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RELATED RATIOS

CONSOLIDATED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

$

1,577.3

$

1,589.9

$

1,763.3

$

1,502.4

$

1,625.8

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

1,421.5

$

1,446.8

$

1,596.4

$

1,345.5

$

1,454.0

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

1,380.0

$

1,411.7

$

1,431.1

$

1,440.3

$

1,448.6

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

845.4

 

880.0

 

867.8

 

867.2

 

858.7

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable development, excluding catastrophe losses

 

(3.0)

 

(1.7)

 

(2.1)

 

(9.1)

 

(10.4)

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

175.0

 

261.6

 

195.8

 

57.7

 

93.9

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

-

 

-

 

-

 

-

 

(7.0)

 

 

 

 

 

 

 

 

 

 

 

Total losses and LAE

 

1,017.4

 

1,139.9

 

1,061.5

 

915.8

 

935.2

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs and other underwriting expenses

 

428.9

 

438.1

 

438.9

 

447.0

 

452.7

 

 

 

 

 

 

 

 

 

 

 

GAAP underwriting profit (loss)

 

(66.3)

 

(166.3)

 

(69.3)

 

77.5

 

60.7

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

78.7

 

87.6

 

84.2

 

81.6

 

89.7

 

 

 

 

 

 

 

 

 

 

 

Other income

 

8.0

 

7.8

 

7.4

 

7.6

 

7.3

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

(7.2)

 

(8.5)

 

(8.6)

 

(8.6)

 

(8.0)

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) before income taxes

$

13.2

$

(79.4)

$

13.7

$

158.1

$

149.7

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

61.2 %

 

62.3 %

 

60.6 %

 

60.2 %

 

59.3 %

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable development, excluding catastrophe losses

 

(0.2)%

 

(0.1)%

 

(0.1)%

 

(0.6)%

 

(0.7)%

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

12.7 %

 

18.5 %

 

13.7 %

 

4.0 %

 

6.5 %

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

-

 

-

 

-

 

-

 

(0.5)%

 

 

 

 

 

 

 

 

 

 

 

Total loss and LAE ratio

 

73.7 %

 

80.7 %

 

74.2 %

 

63.6 %

 

64.6 %

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

30.7 %

 

30.6 %

 

30.2 %

 

30.6 %

 

30.9 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

104.4 %

 

111.3 %

 

104.4 %

 

94.2 %

 

95.5 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio, excluding catastrophe losses

 

91.7 %

 

92.8 %

 

90.7 %

 

90.2 %

 

89.5 %

 

 

 

 

 

 

 

 

 

 

 

Current accident year combined ratio, excluding catastrophe losses

 

91.9 %

 

92.9 %

 

90.8 %

 

90.8 %

 

90.2 %

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RATIOS

CORE COMMERCIAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

Gross premiums written

$

634.1

$

553.8

$

667.4

$

539.1

$

660.0

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

565.3

$

486.8

$

589.4

$

465.5

$

582.4

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

507.4

$

515.6

$

517.4

$

519.9

$

528.9

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

296.9

 

289.9

 

291.1

 

301.0

 

309.4

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

3.5

 

0.7

 

2.7

 

(2.2)

 

(9.2)

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

64.6

 

38.3

 

44.6

 

30.5

 

24.5

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

(0.7)

 

(5.0)

 

-

 

(1.0)

 

(3.8)

 

 

 

 

 

 

 

 

 

 

 

Total losses and LAE

 

364.3

 

323.9

 

338.4

 

328.3

 

320.9

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs and other underwriting expenses

 

167.9

 

171.2

 

173.7

 

176.0

 

177.1

 

 

 

 

 

 

 

 

 

 

 

GAAP underwriting profit (loss)

 

(24.8)

 

20.5

 

5.3

 

15.6

 

30.9

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

36.1

 

39.7

 

38.4

 

37.6

 

40.8

 

 

 

 

 

 

 

 

 

 

 

Other income

 

1.2

 

1.1

 

1.3

 

1.1

 

1.3

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

(1.3)

 

(1.2)

 

(1.9)

 

(1.5)

 

(1.5)

 

 

 

 

 

 

 

 

 

 

 

Operating income before income taxes

$

11.2

$

60.1

$

43.1

$

52.8

$

71.5

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

58.5 %

 

56.2 %

 

56.3 %

 

57.8 %

 

58.5 %

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

0.7 %

 

0.1 %

 

0.5 %

 

(0.4)%

 

(1.7)%

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

12.7 %

 

7.5 %

 

8.6 %

 

5.9 %

 

4.6 %

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

(0.1)%

 

(1.0)%

 

-

 

(0.2)%

 

(0.7)%

 

 

 

 

 

 

 

 

 

 

 

Total loss and LAE ratio

 

71.8 %

 

62.8 %

 

65.4 %

 

63.1 %

 

60.7 %

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

32.9 %

 

33.0 %

 

33.3 %

 

33.6 %

 

33.2 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

104.7 %

 

95.8 %

 

98.7 %

 

96.7 %

 

93.9 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio, excluding catastrophe losses

 

92.1 %

 

89.3 %

 

90.1 %

 

91.0 %

 

90.0 %

 

 

 

 

 

 

 

 

 

 

 

Current accident year combined ratio, excluding catastrophe losses

 

91.4 %

 

89.2 %

 

89.6 %

 

91.4 %

 

91.7 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

THE HANOVER INSURANCE GROUP

PREMIUMS WRITTEN AND RELATED METRICS

 

 

 

 

 

 

 

 

 

 

 

CORE COMMERCIAL

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

Written Premium

 

 

 

 

 

 

 

 

 

 

Gross

$

634.1

$

553.8

$

667.4

$

539.1

$

660.0

Ceded

 

(68.8)

 

(67.0)

 

(78.0)

 

(73.6)

 

(77.6)

Net

$

565.3

$

486.8

$

589.4

$

465.5

$

582.4

Growth

 

7.3%

 

7.2%

 

4.2%

 

2.7%

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

Net premiums written by sub-segment

 

 

 

 

 

 

 

 

 

 

Small Commercial

$

311.9

$

291.8

$

292.0

$

275.7

$

336.0

Middle Market

 

253.4

 

195.0

 

297.4

 

189.8

 

246.4

Total

$

565.3

$

486.8

$

589.4

$

465.5

$

582.4

 

 

 

 

 

 

 

 

 

 

 

Net premiums written by line of business

 

 

 

 

 

 

 

 

 

 

Commercial Multiple Peril

$

277.8

$

241.5

$

312.2

$

241.1

$

287.0

Commercial Automobile

 

100.3

 

90.4

 

98.1

 

84.4

 

105.7

Workers’ Compensation

 

123.2

 

96.3

 

101.5

 

85.8

 

124.5

Other Core Commercial

 

64.0

 

58.6

 

77.6

 

54.2

 

65.2

Total

$

565.3

$

486.8

$

589.4

$

465.5

$

582.4

 

 

 

 

 

 

 

 

 

 

 

Related Metrics

 

 

 

 

 

 

 

 

 

 

Premium Retention

 

84.0%

 

83.5%

 

83.8%

 

83.6%

 

82.3%

Renewal Price Change

 

11.5%

 

11.3%

 

11.8%

 

12.4%

 

11.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

 

 

 

 

 

 

 

 

 

 

 

SPECIALTY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

$

392.5

$

381.5

$

400.5

$

362.8

$

408.4

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

324.3

$

325.4

$

338.7

$

304.9

$

339.8

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

311.7

$

319.8

$

321.7

$

321.0

$

320.9

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

166.8

 

172.5

 

153.4

 

158.5

 

156.6

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable development, excluding catastrophe losses

 

(18.1)

 

(11.7)

 

(5.0)

 

(14.0)

 

(1.1)

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

25.8

 

13.1

 

6.9

 

5.6

 

10.2

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

(4.3)

 

(4.0)

 

-

 

-

 

(3.2)

 

 

 

 

 

 

 

 

 

 

 

Total losses and LAE

 

170.2

 

169.9

 

155.3

 

150.1

 

162.5

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs and other underwriting expenses

 

110.8

 

113.8

 

113.7

 

117.5

 

119.5

 

 

 

 

 

 

 

 

 

 

 

GAAP underwriting profit

 

30.7

 

36.1

 

52.7

 

53.4

 

38.9

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

17.0

 

18.6

 

18.0

 

17.5

 

20.3

 

 

 

 

 

 

 

 

 

 

 

Other income

 

1.8

 

1.8

 

1.2

 

1.6

 

1.3

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

(1.2)

 

(2.1)

 

(1.6)

 

(2.0)

 

(1.7)

 

 

 

 

 

 

 

 

 

 

 

Operating income before income taxes

$

48.3

$

54.4

$

70.3

$

70.5

$

58.8

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

53.5%

 

54.0 %

 

47.8 %

 

49.5 %

 

48.7 %

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable development, excluding catastrophe losses

 

(5.8)%

 

(3.7)%

 

(1.6)%

 

(4.4)%

 

(0.3)%

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

8.3%

 

4.1 %

 

2.1 %

 

1.7 %

 

3.2 %

 

 

 

 

 

 

 

 

 

 

 

Prior year favorable catastrophe development

 

(1.4)%

 

(1.3)%

 

-

 

-

 

(1.0)%

 

 

 

 

 

 

 

 

 

 

 

Total loss and LAE ratio

 

54.6 %

 

53.1 %

 

48.3 %

 

46.8 %

 

50.6 %

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

35.3 %

 

35.3 %

 

35.1 %

 

36.4 %

 

37.0 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

89.9 %

 

88.4 %

 

83.4 %

 

83.2 %

 

87.6 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio, excluding catastrophe losses

 

83.0 %

 

85.6 %

 

81.3 %

 

81.5 %

 

85.4%

 

 

 

 

 

 

 

 

 

 

 

Current accident year combined ratio, excluding catastrophe losses

 

88.8 %

 

89.3 %

 

82.9 %

 

85.9 %

 

85.7%

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

PREMIUMS WRITTEN AND RELATED METRICS

 

 

 

 

 

 

 

 

 

 

 

SPECIALTY

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

Written Premiums

 

 

 

 

 

 

 

 

 

 

Gross

$

392.5

$

381.5

$

400.5

$

362.8

$

408.4

Ceded

 

(68.2)

 

(56.1)

 

(61.8)

 

(57.9)

 

(68.6)

Net

$

324.3

$

325.4

$

338.7

$

304.9

$

339.8

Growth

 

7.1%

 

7.6%

 

2.9%

 

-1.5%

 

4.8%

 

 

 

 

 

 

 

 

 

 

 

Net premiums written by sub-segment

 

 

 

 

 

 

 

 

 

 

Professional and Executive Lines

$

111.0

$

99.4

$

111.0

$

98.9

$

112.8

Specialty Property & Casualty

 

101.7

 

103.6

 

97.5

 

99.2

 

107.9

Marine

 

94.1

 

104.4

 

107.4

 

88.1

 

99.5

Surety and Other

 

17.5

 

18.0

 

22.8

 

18.7

 

19.6

Total

$

324.3

$

325.4

$

338.7

$

304.9

$

339.8

 

 

 

 

 

 

 

 

 

 

 

Related Metrics

 

 

 

 

 

 

 

 

 

 

Premium Retention

 

82.5%

 

80.5%

 

79.7%

 

76.0%

 

83.1%

Renewal Price Change

 

12.6%

 

11.4%

 

12.9%

 

11.6%

 

11.0%

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERSONAL LINES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

2023

(In millions, except percentage data)

 

Auto

 

Home and Other

 

Total

 

 

Auto

 

Home and Other

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

317.0

$

214.8

$

531.8

 

$

323.0

$

208.9

$

531.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

348.9

$

249.9

$

598.8

 

$

330.8

$

230.1

$

560.9

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Current year, excluding catastrophe losses

 

256.4

 

136.3

 

392.7

 

 

250.8

 

130.9

 

381.7

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

(5.8)

 

5.7

 

(0.1)

 

 

7.9

 

3.7

 

11.6

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Current year catastrophe losses

 

3.9

 

55.3

 

59.2

 

 

3.9

 

80.7

 

84.6

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Prior year unfavorable (favorable) catastrophe development

 

0.8

 

(0.8)

 

-

 

 

(0.2)

 

5.2

 

5.0

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Total losses and LAE

 

255.3

 

196.5

 

451.8

 

 

262.4

 

220.5

 

482.9

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Amortization of deferred acquisition costs and other underwriting expenses

 

 

 

 

 

156.1

 

 

 

 

 

 

150.2

 

 

 

 

 

 

-

 

 

 

 

 

 

-

GAAP underwriting loss

 

 

 

 

 

(9.1)

 

 

 

 

 

 

(72.2)

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Net investment income

 

 

 

 

 

25.6

 

 

 

 

 

 

22.6

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Other income

 

 

 

 

 

4.0

 

 

 

 

 

 

4.3

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Other operating expenses

 

 

 

 

 

(1.6)

 

 

 

 

 

 

(1.3)

 

 

 

 

 

 

-

 

 

 

 

 

 

-

Operating income (loss) before income taxes

 

 

 

 

$

18.9

 

 

 

 

 

$

(46.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

73.6 %

 

54.5 %

 

65.6 %

 

 

75.8 %

 

56.9 %

 

68.0 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

(1.7)%

 

2.3 %

 

-

 

 

2.4 %

 

1.6 %

 

2.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

1.1 %

 

22.1 %

 

9.9 %

 

 

1.2 %

 

35.0 %

 

15.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) catastrophe development

 

0.2 %

 

(0.3)%

 

-

 

 

(0.1)%

 

2.3 %

 

0.9 %

Total loss and LAE ratio

 

73.2 %

 

78.6 %

 

75.5 %

 

 

79.3 %

 

95.8 %

 

86.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

 

 

 

 

25.5 %

 

 

 

 

 

 

26.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

 

 

 

 

101.0 %

 

 

 

 

 

 

112.2 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RELATED RATIOS

PERSONAL LINES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

$

550.7

$

654.6

$

695.4

$

600.5

$

557.4

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

531.9

$

634.6

$

668.3

$

575.1

$

531.8

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

560.9

$

576.3

$

592.0

$

599.4

$

598.8

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

381.7

 

417.6

 

423.3

 

407.7

 

392.7

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable (favorable) development, excluding catastrophe losses

 

11.6

 

9.3

 

0.2

 

4.8

 

(0.1)

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

84.6

 

210.2

 

144.3

 

21.6

 

59.2

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable catastrophe development

 

5.0

 

9.0

 

-

 

1.0

 

-

 

 

 

 

 

 

 

 

 

 

 

Total losses and LAE

 

482.9

 

646.1

 

567.8

 

435.1

 

451.8

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs and other underwriting expenses

 

150.2

 

153.1

 

151.5

 

153.5

 

156.1

 

 

 

 

 

 

 

 

 

 

 

GAAP underwriting profit (loss)

 

(72.2)

 

(222.9)

 

(127.3)

 

10.8

 

(9.1)

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

22.6

 

26.4

 

24.3

 

23.5

 

25.6

 

 

 

 

 

 

 

 

 

 

 

Other income

 

4.3

 

4.1

 

4.2

 

4.1

 

4.0

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

(1.3)

 

(1.7)

 

(1.6)

 

(1.6)

 

(1.6)

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) before income taxes

$

(46.6)

$

(194.1)

$

(100.4)

$

36.8

$

18.9

 

 

 

 

 

 

 

 

 

 

 

Loss and LAE ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year, excluding catastrophe losses

 

68.0 %

 

72.5 %

 

71.5 %

 

68.0 %

 

65.6 %

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable development, excluding catastrophe losses

 

2.1 %

 

1.6 %

 

-

 

0.8 %

 

-

 

 

 

 

 

 

 

 

 

 

 

Current year catastrophe losses

 

15.1 %

 

36.4 %

 

24.4 %

 

3.6 %

 

9.9 %

 

 

 

 

 

 

 

 

 

 

 

Prior year unfavorable catastrophe development

 

0.9 %

 

1.6 %

 

-

 

0.2 %

 

-

 

 

 

 

 

 

 

 

 

 

 

Total loss and LAE ratio

 

86.1 %

 

112.1 %

 

95.9 %

 

72.6 %

 

75.5 %

 

 

 

 

 

 

 

 

 

 

 

Expense ratio

 

26.1 %

 

25.9 %

 

24.9 %

 

25.0 %

 

25.5 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

112.2 %

 

138.0 %

 

120.8 %

 

97.6 %

 

101.0 %

 

 

 

 

 

 

 

 

 

 

 

Combined ratio, excluding catastrophe losses

 

96.2 %

 

100.0 %

 

96.4 %

 

93.8 %

 

91.1 %

 

 

 

 

 

 

 

 

 

 

 

Current accident year combined ratio, excluding catastrophe losses

 

94.1 %

 

98.4 %

 

96.4 %

 

93.0 %

 

91.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

PREMIUMS WRITTEN AND RELATED METRICS

PERSONAL LINES

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

(In millions, except percentage data)

 

2023

 

2023

 

2023

 

2023

 

2024

Written Premiums

 

 

 

 

 

 

 

 

 

 

Gross

$

550.7

$

654.6

$

695.4

$

600.5

$

557.4

Ceded

 

(18.8)

 

(20.0)

 

(27.1)

 

(25.4)

 

(25.6)

Net

$

531.9

$

634.6

$

668.3

$

575.1

$

531.8

Growth

 

10.1%

 

10.1%

 

9.5%

 

2.1%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

Net premiums written by line of business

 

 

 

 

 

 

 

 

 

 

Personal Automobile

$

323.0

$

368.1

$

385.0

$

328.1

$

317.0

Homeowners and Other

 

208.9

 

266.5

 

283.3

 

247.0

 

214.8

Total

$

531.9

$

634.6

$

668.3

$

575.1

$

531.8

 

 

 

 

 

 

 

 

 

 

 

Related Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewal Price Change

 

 

 

 

 

 

 

 

 

 

Personal Automobile

 

8.9%

 

12.0%

 

14.3%

 

14.7%

 

18.2%

Homeowners

 

18.9%

 

21.7%

 

23.4%

 

29.1%

 

30.2%

Total (1)

 

12.7%

 

15.9%

 

18.0%

 

20.6%

 

22.8%

 

 

 

 

 

 

 

 

 

 

 

Policy Retention

 

 

 

 

 

 

 

 

 

 

Personal Automobile

 

84.5%

 

84.2%

 

83.8%

 

80.9%

 

79.6%

Homeowners

 

85.6%

 

85.7%

 

85.3%

 

82.2%

 

80.3%

Total (1)

 

85.0%

 

84.9%

 

84.6%

 

81.6%

 

79.9%

 

 

 

 

 

 

 

 

 

 

 

PIF change from prior year period

 

 

 

 

 

 

 

 

 

 

Personal Automobile

 

4.5%

 

2.7%

 

1.0%

 

-2.2%

 

-5.5%

Homeowners

 

4.6%

 

3.1%

 

1.7%

 

-1.4%

 

-4.7%

Total (1)

 

4.6%

 

2.9%

 

1.3%

 

-1.8%

 

-5.1%

 

 

 

 

 

 

 

 

 

 

 

(1) Related metrics exclude Other Personal Lines.

 

 

 

 

 

 

 

 

 

 

 

13

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

 

NET INVESTMENT INCOME AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

(In millions, except yields)

2023

 

2023

 

2023

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

$68.3

 

$69.4

 

$71.3

 

$74.2

 

$75.7

 

 

Limited partnerships

5.3

 

13.1

 

8.1

 

3.5

 

9.2

 

 

Mortgage loans

4.0

 

4.0

 

3.9

 

3.9

 

3.7

 

 

Equity securities

1.9

 

1.9

 

1.7

 

0.9

 

0.8

 

 

Other investments

2.5

 

2.7

 

2.6

 

2.8

 

3.8

 

 

Investment expenses

(3.3)

 

(3.5)

 

(3.4)

 

(3.7)

 

(3.5)

 

Total

$78.7

 

$87.6

 

$84.2

 

$81.6

 

$89.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Yields

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

3.27%

 

3.31%

 

3.37%

 

3.46%

 

3.52%

 

 

Total

3.34%

 

3.73%

 

3.55%

 

3.40%

 

3.70%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax yields represent annualized net investment income for the period divided by the monthly average invested assets at amortized cost or cost, which excludes accumulated changes in fair value for fixed maturities and equity securities.

 

14

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

INVESTMENT PORTFOLIO

March 31, 2024

(In millions)

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Weighted

Amortized

 

 

Net

Net

 

 

Average

Cost

Fair Value /

% of

Unrealized

Unrealized

Investment Type

 

Quality

or Cost (1)

Carry Value

Total

Gain (Loss)

YTD

 

 

 

 

 

 

 

 

Fixed maturities:

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

AA+

$520.0

$461.7

5.0%

$(58.3)

$(8.0)

Foreign governments

 

BBB-

3.5

3.5

-

-

-

Municipals:

 

 

 

 

 

 

 

Taxable

 

AA

1,246.8

1,117.7

12.1%

(129.1)

(2.5)

Tax-exempt

 

AA+

53.9

55.3

0.6%

1.4

(1.1)

Corporate:

 

 

 

 

 

 

 

NAIC 1

 

A

1,753.3

1,673.3

18.2%

(80.0)

(9.6)

NAIC 2

 

BBB

1,945.2

1,806.5

19.6%

(138.7)

(4.7)

NAIC 3 and below

 

B+

409.1

408.6

4.4%

(0.5)

(2.7)

Total corporate

 

BBB+

4,107.6

3,888.4

42.2%

(219.2)

(17.0)

Asset-backed:

 

 

 

 

 

 

 

Residential mortgage-backed

 

AA+

1,469.1

1,326.1

14.4%

(143.0)

(18.3)

Commercial mortgage-backed

 

AAA

873.0

805.6

8.8%

(67.4)

4.7

Other asset-backed

 

AA

371.5

357.1

3.9%

(14.4)

0.8

Total fixed maturities

 

A+

8,645.4

8,015.4

87.0%

(630.0)

(41.4)

Limited partnerships and other investments

 

 

433.0

433.0

4.7%

-

-

Mortgage and other loans

 

 

361.4

361.4

3.9%

-

-

Equity securities

 

 

137.4

137.4

1.5%

-

-

Total investments

 

 

9,577.2

8,947.2

97.1%

(630.0)

(41.4)

Cash and cash equivalents

 

 

264.6

264.6

2.9%

-

-

Total

 

 

$9,841.8

$9,211.8

100.0%

$(630.0)

$(41.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net of allowance for credit losses of $11.3 million.

 

 

 

 

 

 

 

 

15

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY AND DURATION OF FIXED MATURITIES

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY OF FIXED MATURITIES

 

 

 

Rating Agency

 

Amortized

 

 

Fair

 

% of Total

 

NAIC Designation

Equivalent Designation

 

Cost (1)

 

 

Value

 

Fair Value

 

1

Aaa/Aa/A

$

 

6,211.7

 

$

 

5,729.6

 

 

71.5

%

2

Baa

 

 

2,022.2

 

 

 

1,874.9

 

 

23.4

%

3

Ba

 

 

181.9

 

 

 

182.5

 

 

2.3

%

4

B

 

 

182.3

 

 

 

183.9

 

 

2.3

%

5

Caa and lower

 

 

29.1

 

 

 

26.7

 

 

0.3

%

6

In or near default

 

 

18.2

 

 

 

17.8

 

 

0.2

%

Total fixed maturities

 

$

 

8,645.4

 

$

 

8,015.4

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DURATION OF FIXED MATURITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized

 

 

Fair

 

% of Total

 

 

 

 

 

Cost (1)

 

 

Value

 

Fair Value

 

 

0-2 Years

$

 

2,021.1

 

$

 

1,985.1

 

 

24.8

%

 

2-4 Years

 

 

2,237.6

 

 

 

2,144.0

 

 

26.8

%

 

4-6 Years

 

 

2,246.7

 

 

 

2,062.7

 

 

25.7

%

 

6-8 Years

 

 

1,816.6

 

 

 

1,559.6

 

 

19.5

%

 

8-10 Years

 

 

170.4

 

 

 

140.0

 

 

1.7

%

 

10+ Years

 

 

153.0

 

 

 

124.0

 

 

1.5

%

Total fixed maturities

 

 

$

 

8,645.4

 

$

 

8,015.4

 

 

100.0

%

Weighted Average Duration

 

 

 

 

 

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net of allowance for credit losses of $1.6 million.

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

TOP 25 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS

March 31, 2024

 

 

 

 

 

(In millions, except percentage data)

 

 

 

 

Issuer

Amortized Cost

Fair Value

As a Percent of Invested Assets

Ratings (1)

Minnesota Housing Finance Agency

$42.8

$35.1

0.38%

AAA

Colorado Housing & Finance Authority

38.6

36.2

0.39%

AAA

Morgan Stanley

34.9

32.7

0.35%

A-

State of Ohio

34.2

27.7

0.30%

AAA

Energy Transfer LP

31.9

30.2

0.33%

BBB+

Bank of New York Mellon

31.6

30.6

0.33%

A

Massachusetts School Building Authority

30.9

26.1

0.28%

AA+

JPMorgan Chase

30.0

28.5

0.31%

A-

Bank of America

28.8

28.1

0.31%

A-

Mitsubishi Financial Group

28.0

26.7

0.29%

A-

Goldman Sachs

28.0

26.1

0.28%

BBB+

UnitedHealth Group

27.8

25.9

0.28%

A+

District of Columbia

27.0

22.8

0.25%

AAA

Capital One Financial

26.9

25.1

0.27%

BBB

US Bancorp

26.9

26.0

0.28%

A-

State of Oregon

26.8

22.6

0.25%

AA+

UBS Group

26.5

24.8

0.27%

A-

Westpac Banking

26.4

25.5

0.28%

A

Truist Financial

26.4

25.8

0.28%

A-

Citigroup

26.1

24.8

0.27%

BBB+

CVS Health

25.5

23.9

0.26%

BBB

California State University

25.0

20.7

0.22%

AA-

Charles Schwab

24.6

23.0

0.25%

A-

Wells Fargo

23.8

23.0

0.25%

BBB+

American Express

22.9

22.6

0.25%

BBB+

     Top 25 Corporate and Municipal

$722.3

$664.5

7.21%

 

 

 

 

 

 

(1) - Represents nationally recognized rating agency sources.

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended March 31

 

 

2024

 

2023

 (In millions, except per share data)

 

 

$

Per
Share (Diluted)

 

 

$

Per
Share (1)

 OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

Core Commercial

 

$

71.5

 

 

 

$

11.2

 

 

Specialty

 

 

58.8

 

 

 

 

48.3

 

 

Personal Lines

 

 

18.9

 

 

 

 

(46.6)

 

 

Other

 

 

0.5

 

 

 

 

0.3

 

 

 Total

 

 

149.7

 

 

 

 

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest expense

 

 

(8.5)

 

 

 

 

(8.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 Operating income before income taxes

 

 

141.2

$

3.89

 

 

4.7

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 Income tax expense on operating income

 

 

(29.3)

 

(0.81)

 

 

(0.1)

 

-

 

 

 

 

 

 

 

 

 

 

 

 Operating income after income taxes

 

 

111.9

 

3.08

 

 

4.6

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 Non-operating items:

 

 

 

 

 

 

 

 

 

 

 Net realized losses from sales and other

 

 

(1.3)

 

(0.04)

 

 

(1.1)

 

(0.03)

 Net change in fair value of equity securities

 

 

6.5

 

0.18

 

 

(7.1)

 

(0.20)

 Recoveries (impairments) on investments:

 

 

 

 

 

 

 

 

 

 

             Credit-related recoveries (impairments)

 

 

0.3

 

0.01

 

 

(4.5)

 

(0.13)

             Losses on intent to sell securities

 

 

-

 

-

 

 

(10.3)

 

(0.29)

 

 

 

0.3

 

0.01

 

 

(14.8)

 

(0.42)

 Other non-operating items

 

 

(1.4)

 

(0.04)

 

 

0.8

 

0.02

 Income tax benefit (expense) on non-operating items

 

 

(0.5)

 

(0.01)

 

 

5.6

 

0.16

 

 

 

 

 

 

 

 

 

 

 

 NET INCOME (LOSS)

 

$

115.5

$

3.18

 

$

(12.0)

$

(0.34)

 

 

 

 

 

 

 

 

 

 

 

 

(1) Per share data is calculated using basic shares outstanding due to antidilution.

 

 

 

 

 

 

 

18

 

THE HANOVER INSURANCE GROUP

 

Non-GAAP Financial Measures

 

The Hanover uses non-GAAP financial measures as important measures of the Company’s operating performance, which we believe provide investors with additional information regarding management’s evaluation of our results of operations and financial performance. The Company’s non-GAAP measures include operating income (loss) before interest expense and income taxes, total operating income (loss) after income taxes, total operating income (loss) after income taxes per diluted (basic) share, total book value per share, total book value per share excluding net unrealized gains and losses related to fixed maturity investments and market risk, net of tax, tangible book value per share and measures of operating income (loss) and combined ratios excluding catastrophe losses (catastrophe losses as discussed here and in all other measures include catastrophe loss development) and reserve development.

 

Operating income (loss) before interest expense and income taxes is net income (loss), excluding interest expense on debt, income taxes and net realized and unrealized investment gains and losses, which includes changes in the fair value of equity securities still held because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Operating income (loss) before interest expense and income taxes also excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, the cumulative effect of accounting changes and certain other items. Operating income (loss) before interest expense and income taxes is the sum of the operating income (loss) from: Core Commercial, Specialty, Personal Lines, and Other. After-tax operating income (loss) earnings per diluted (basic) share (sometimes referred to as “after-tax operating income (loss) per share”) is also a non-GAAP measure. It is defined as net income (loss) excluding the after-tax impact of net realized and unrealized investment gains (losses), as well as results from discontinued operations and other non-operating items for a period divided by the average number of diluted (basic) shares of common stock. The Hanover believes that measures of operating income (loss) before interest expense and income taxes provide investors with a valuable measure of the performance of the Company’s ongoing businesses because they highlight net income (loss) attributable to the core operations of the business.

 

Book value per share is total shareholders’ equity divided by the number of common shares outstanding. Book value per share excluding net unrealized gains and losses related to fixed maturity investments, net of tax, is total shareholders’ equity excluding the after-tax effect of unrealized investment gains and losses on fixed maturities and market risk divided by the number of common shares outstanding. Tangible book value per share is total shareholders’ equity, excluding goodwill and intangible assets, divided by the number of common shares outstanding.

 

The Hanover also provides measures of operating results and loss ratios that exclude the effects of catastrophe losses. A catastrophe is a severe loss, resulting from natural or manmade events. Catastrophes caused by various natural events include, among others, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fire, explosions, severe winter weather and other convective storms. Catastrophes caused by various manmade events include, among others, fire, explosions, riots, and terrorism. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance. The Hanover believes that providing certain financial metrics and trends excluding the effects of catastrophes is meaningful for investors to understand the variability of periodic earnings and loss ratios.

 

Prior year reserve development, which can be favorable or unfavorable, represents changes in our estimate of the costs to pay claims from prior years. We believe that a discussion of operating income (loss) excluding prior year reserve development is helpful to investors since it provides insight into both our estimate of current year accident results and changes to prior-year reserve estimates.

 

Operating income (loss) before and after interest expense and income taxes and measures of operating income (loss) that exclude the effects of catastrophe losses or reserve development should not be construed as substitutes for net income (loss) determined in accordance with GAAP. A reconciliation of income (loss) to operating income (loss) before interest expense and income taxes and income (loss) per diluted (basic) share to operating income (loss) after taxes per diluted (basic) share, which are then reconciled to net income (loss) and net income (loss) per diluted (basic) share, respectively, for the three months ended March 31, 2024 and 2023 is set forth on page 18 of this document. The presentation of loss ratios calculated excluding the effects of reserve development and/or catastrophe losses should not be construed as a substitute for loss ratios determined in accordance with GAAP.

 

Additional reconciliations are provided in the press release relating to the current period(s) financial results, which is available on the Company’s website, www.hanover.com.

 

 

 

19

 

THE HANOVER INSURANCE GROUP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PREMIUM RELATED METRIC DEFINITIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewal Price Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Personal Lines: Represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks. Actual written price changes may differ, as not all policies are retained.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Personal Lines: Represents the estimated cumulative premium effect of approved rate actions applied to policies at renewal. Actual written rate changes may differ, as not all policies are retained. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Core Commercial and Specialty: Represents the ratio of net retained premium for the noted period to the premium available to renew over the same period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

●

Personal Lines: Represents the ratio of net retained policies for the noted period to those policies available to renew over the same period and includes policies that were canceled and rewritten.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policies in Force (PIF) Change

 

 

 

 

 

 

 

 

 

 

●

Represents the change in the number of policies in force at the end of a given period from the end of the same period in the prior year.

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORPORATE OFFICES AND

 

 

INDUSTRY RATINGS AS OF May 1, 2024

 

 

TRANSFER AGENT

PRINCIPAL SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE HANOVER INSURANCE GROUP, INC.

 

 

 

A.M.

 

 

 

 

Computershare Investor Services

440 Lincoln Street

 

 

Financial Strength Ratings

Best

S&P Global

Moody's

 

 

PO Box 43006

Worcester, MA 01653

 

 

The Hanover Insurance

 

 

 

 

 

Providence, RI 02940-3006

 

 

 

Company

A

A

A2

 

 

1-800-317-4454

The Hanover Insurance Company

 

 

Citizens Insurance Company

 

 

 

 

 

 

440 Lincoln Street

 

 

of America

A

A

-

 

 

 

Worcester, MA 01653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON STOCK

Citizens Insurance Company of America

 

 

 

A.M.

 

 

 

 

 

808 North Highlander Way

 

 

Debt Ratings

Best

S&P Global

Moody's

 

 

Common stock of The Hanover Insurance Group, Inc. is traded

Howell, MI 48843

 

 

The Hanover Insurance Group, Inc.

 

 

 

 

on the New York Stock Exchange under the symbol “THG”.

 

 

 

Senior Debt

bbb+

BBB

Baa2

 

 

 

 

 

 

Subordinated Debentures

bbb-

BB+

Baa3

 

 

 

MARKET AND DIVIDEND INFORMATION

 

 

 

 

 

 

 

 

INQUIRIES

 

 

 

 

 

 

 

 

 

 

The following tables set forth the high and low closing

 

 

The above ratings are accurate as of May 1, 2024, and may be revised,

 

 

Oksana Lukasheva

sale prices of our common stock and quarterly cash

 

 

superseded or withdrawn by the respective rating agency at any time. For

 

 

Senior Vice President

dividends for the periods indicated:

 

 

the most current information concerning the financial ratings of The Hanover

 

 

Corporate Finance

 

 

 

 

 

 

Insurance Group and its subsidiaries, please visit the websites of the

 

 

olukasheva@hanover.com

Quarter Ended

2024

 

 

respective rating agencies.

 

 

 

 

Price Range

Dividends

 

 

 

 

 

 

 

 

 

 

High

Low

Per Share

 

 

 

 

 

 

 

 

 

March 31

$136.58

$122.20

$0.850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

2023

 

 

 

 

 

 

 

 

 

 

Price Range

Dividends

 

 

 

 

 

 

 

 

 

 

High

Low

Per Share

 

 

 

 

 

 

 

 

March 31

$148.20

$121.57

$0.810

 

 

 

 

 

 

 

 

 

June 30

$130.32

$110.25

$0.810

 

 

 

 

 

 

 

 

 

September 30

$114.26

$104.25

$0.810

 

 

 

 

 

 

 

 

 

December 31

$128.18

$109.40

$0.850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21