The Hanover Insurance Group produced higher net income and experienced lower catastrophe losses in its 2019 third quarter. Investment income growth, premium hikes and growth in more profitable segments helped make the difference.
The Massachusetts-based insurer booked nearly $119 million in net income, or $2.96 per diluted share during the quarter, compared to $100.4 million, or $2.33 per diluted share, over the same period a year ago.
The Hanover said its net premiums written grew by 5.6 percent, reflecting growth in more profitable segments. As well, the insurer achieved price increases of 5.5 percent in core commercial lines and 5 percent in personal lines.
Additionally, the combined ratio hit 94.4, an improvement over 95.1 in the 2018 third quarter. Catastrophe losses for the 2019 third quarter reached $35.2 million due to a number of wind and hail events in the upper Midwest. But that’s down from nearly $45 million in catastrophe losses over the same period in 2018.
Net investment income came in at $68.8 million, an increase of 3.6 percent from the 2018 third quarter.
The Hanover President and CEO John Roche said that the results continue positive momentum the company has established over the first half of the year, noting the company has achieved “solid price increases” in “a dynamic market environment.”
“Our performance reflects the breadth and relevance of our product mix, deep industry expertise and our unique partnership approach with agents,” Roche added in prepared remarks.
Source: The Hanover