Q1 operating EPS of $3.87 beats $3.45 consensus, up from $3.08 per share in Q1 2024
Combined ratio of 94.1% down from 95.5% in Q1 2024
Net premiums written up 3.9% to $1.51 billion
By Mia MacGregor
April 30 - (The Insurer) - The Hanover Insurance Group has reported an earnings beat for the first quarter, with results that included its combined ratio improving 1.4 percentage points to 94.1%.
The Hanover reported first-quarter 2025 operating income of $141.8 million, or $3.87 per diluted share, beating the average estimate of $3.45 per share from eight MarketWatch analysts. The operating income was up from $111.9 million, or $3.08 per diluted share, in the same period last year.
The Worcester, Massachusetts-based insurer posted a combined ratio of 94.1%, an improvement from 95.5% a year earlier. Excluding catastrophes, the combined ratio was 87.8%, compared to 89.5% in the prior-year quarter.
The current accident year combined ratio, excluding catastrophes, improved to 89.1% from 90.2% in 2024.
The company reported catastrophe losses of $95.6 million, or 6.3 points of the combined ratio.
Net premiums written rose 3.9% to $1.51 billion, up from $1.45 billion in the first quarter of 2024.
The current accident year loss and loss adjustment expense ratio, excluding catastrophes, declined to 58.3% from 59.3% in the same period last year, driven by “outstanding improvement in personal lines” according to the company.
"Our performance in the quarter is a testament to the effectiveness of the catastrophe mitigation actions and the margin enhancement initiatives we have implemented over the past two years,” said John Roche, president and chief executive officer at The Hanover.
“Market conditions remain favorable across most of our business segments, as we achieved low double-digit price increases in personal lines and small commercial, and high single-digit price increases in specialty and middle market,” he added.
"Our reserve position remains strong, underscored by favorable prior-year development across each major segment, and prudent IBNR reserves,” said Jeffrey Farber, executive vice president and chief financial officer at The Hanover.
The Hanover also reported renewal price increases for Q1 of 13.1% in personal lines (compared with 14.2% in Q4 2024), 11.1% in core commercial (11.8%), and 8.4% in specialty (9.5%). Rate increases were 11.8% in personal lines (13.1%), 9.1% in core commercial (9.2%), and 5.9% in specialty (6.1%).