Price Increases, Investment Income, Organic Growth Propel The Hanover’s Q2

August 2, 2018

Price increases, a jump in net investment income and organic business growth helped give The Hanover Insurance Group a strong second quarter.

The Hanover booked $99.3 million in net income during Q2 2018, or $2.31 per diluted share. That’s a healthy increase from $78.4 million, or $1.83 per diluted share over the same period the year before.

The insurer said its net premiums written grew nearly 7 percent, with gains strongest in personal lines, small commercial and target specialty businesses. Net investment income is nearly 9 percent higher than in the 2017 second quarter. Also, the Hanover’s combined ratio of 95.5 was a tick better than the 95.6 reported in Q2 2017.

John Roche, The Hanover’s president and CEO, said that the Massachusetts-based insurer is succeeding, in part because of its focus on agents.

“We continued to demonstrate the value of our company’s agency-centered strategy and distinctive business model, generating an operating return on average equity of approximately 13 percent, and overall growth of 7 percent, notably, in our most profitable businesses,” Roche said in prepared remarks.

Some further result highlights:

Source: The Hanover