A competitive and challenging market left The Hanover Insurance Group with lower net income and net premiums written in 2015. OneBeacon Insurance Group also saw lower net premiums written, after exiting some businesses, but its 2015 fourth quarter reflected a turnaround of sorts.


THE HANOVER INSURANCE GROUP, INC. LOGOThe Hanover Insurance Group ended its 2015 fourth on a mixed note, with lower net income and net premiums written, but an uptick in net investment income.

For the quarter, the Massachusetts property/casualty insurance holding company generated $77.7 million in net income, or $1.76 per diluted share. That’s down from $89.9 million, or $2.00 per diluted share over the same period last year.

The Hanover’s combined ratio came in at 95, slightly higher than the 94.3 generated in the 2014 fourth quarter.

Net premiums written were just over $1 billion, but they surpassed $1.1 billion in the 2014 fourth quarter. Net investment income landed at $70 million, up from $68.8 million in Q4 2014.

For the year, The Hanover booked more than $4.7 billion in net premiums written, versus $4.8 billion in 2014. Net income for the year hit $331.5 million, or $7.40 per diluted share, versus $282 million, or $6.28 per diluted share in 2014.

The Hanover enjoyed $279.1 million in net investment income in 2015, versus $270.3 million in 2014. Its combined ratio for 2015 came in at 95.7, slightly better than the 96.9 million in 2014.


OneBeacon Insurance Group’s streamlining and higher investment income helped the insurer end 2015 in the black. But net premiums earned declined.

boardroom financialsCEO Mike Miller said that the insurer’s exit from its crop and lawyers professional liability businesses during the year adversely affected premium volume, though he added that other lines are doing well despite competitive pressures.

“Most of our ongoing businesses are well positioned in an increasingly competitive markets,” Miller said in prepared remarks. “We are focused on maintaining underwriting discipline.”

The Massachusetts property/casualty insurer booked $22.1 million in net income during Q4, or $0.24 per share. That compares to a $49.4 million net loss, or a loss of $0.26 per share, in the 2014 fourth quarter.

OneBeacon said the combined ratio for its insurance operations was 93.3 for the quarter and 2015 calendar year, versus 122.8 for the 2014 fourth quarter and 101.7 for the previous year.

Here’s a rundown of OneBeacon’s Q4 2015 and full-year 2015 results:

  • Q4 net earned premiums of $288.9 million, versus $304.3 million in the 2014 fourth quarter.
  • Q4 Net investment income was just under $13 million, up from $10 million over the same period last year.
  • For the full year, net earned premiums landed at more than $1.17 billion, essentially the same compared to 2014.
  • Net investment income for 2015 nearly reached $46 million, compared to $43.4 million in 2014.
  • 2015 net income came in at $36.8 million for 2015 or $0.38 per share, versus $20.9 million, or $0.55 per share in 2014.

Sources: The Hanover Insurance Group, OneBeacon Insurance Group

Topics Profit Loss