WORCESTER, Mass. - The Hanover Insurance Group, Inc. (NYSE: NYSE:THG) has reported a robust first quarter for 2024, with earnings surpassing analyst expectations. The company announced a first-quarter EPS of $3.18, which is $0.47 higher than the analyst consensus of $2.71.
Revenue also exceeded forecasts, coming in at $1.55 billion against an anticipated $1.47 billion. This performance marks a significant turnaround from the prior-year quarter, which saw a net loss.
The insurance provider's combined ratio stood at 95.5%, with the figure excluding catastrophes at an impressive 89.5%. Catastrophe losses amounted to $86.9 million, impacting the combined ratio by 6.0 points. Net premiums written saw a 2.3% increase, and the company achieved substantial renewal price increases across its Personal Lines, Core Commercial, and Specialty segments.
John C. Roche, president and CEO, attributed the strong quarter to disciplined growth and underwriting margins, particularly noting exceptional profitability in the Specialty segment. Jeffrey M. Farber, executive vice president and CFO, highlighted the effectiveness of pricing and margin recapture initiatives, which contributed to the improved combined ratio and a 14% increase in net investment income to $89.7 million.
The Hanover's book value per share also grew to $70.22, a 1.9% increase from the end of the previous year, largely thanks to solid earnings. While the stock movement percentage was not disclosed, the company's financial results and management's positive commentary suggest a well-received performance.
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