NYSE$THG

The Hanover Insurance Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong first quarter with increased net income and operating income.

The Hanover Insurance Group reported a strong first quarter with net income of $104.8 million, or $2.90 per diluted share, and operating income of $117.7 million, or $3.26 per diluted share. The company's operating return on equity was 15.7%, and net premiums written increased by 9.7% across all segments. The ex-CAT combined ratio was 89.8%, marking the eighth consecutive quarter below 90%.

  • Operating income increased 91.6% from the prior-year quarter.
  • Combined ratio of 93.4%; combined ratio, excluding catastrophes of 89.8%.
  • Net premiums written increased by 9.7%, with strong growth from each segment.
  • Renewal price change up 9.7% in Core Commercial, 12.6% in Specialty and 4.3% in Personal Lines.

Headline financials

Total Revenue

$1.33B

Previous: $1.28B+3.7%
EPS (adj)

$3.26

Previous: $1.66+96.4%
Capital Expenditures

-$4.9M

Previous: -$2.3M-113.0%
Free Cash Flow

$99.9M

Previous: $90.4M+10.5%
Net Income

$105M

Previous: $92.7M+13.1%
Operating Income

$154M

Previous: $85.1M+81.4%
Gross Profit

$280M

Previous: $262M+7.1%
Cash & Equivalents

$272M

Previous: $112M+142.6%
Total Assets

$13.8B

Previous: $13.4B+3.0%
Stock-Based Comp

$6.7M

Previous: $5.6M+19.6%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.33B

Q1 2022+3.7%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Hanover · $786M total across 2 segments · Q1 2022

  • Personal Lines
    $483M+10.1%
  • Specialty
    $303M

Forward guidance

The company remains on track with its long-term targets for underwriting returns and operating ROE, which will likely be augmented by stronger net investment income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+3.0%

Avg return

30 days after

66%

45 / 68 earnings

Positive

+8.2%

Q4 2016

Best reaction

-4.6%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.6%+4.0%+4.9%
Q4 2025+0.6%-1.4%+2.1%
Q3 2025+1.2%+4.0%+10.2%
Q1 2025-0.3%+0.7%+5.9%
Q4 2024+4.8%+5.9%+8.8%
Q3 2024-0.0%-0.8%+11.2%
Q2 2024-2.8%-3.8%+5.9%
Q1 2024+0.7%+3.8%+1.6%
Q4 2023-1.1%-1.9%-3.0%
Q3 2023-0.5%-0.1%+6.7%
Q2 2023-1.9%+0.1%-4.5%
Q1 2023+1.3%-0.4%-6.2%
Q4 2022+2.3%+0.3%+8.9%
Q3 2022-3.4%-1.5%-0.7%
Q2 2022-4.6%-5.5%-3.5%
Q1 2022+3.7%+2.2%+0.4%
Q4 2021+3.5%+4.0%+5.1%
Q3 2021-3.5%-3.4%-4.5%
Q2 2021+0.4%+2.8%+5.3%
Q1 2021+2.8%+4.4%+3.7%
Q4 2020+0.7%-0.4%+7.6%
Q3 2020-4.4%-3.8%+17.9%
Q2 2020+2.7%+3.6%+5.9%
Q1 2020+5.3%-3.7%+3.8%
Q4 2019+0.2%-0.5%-14.6%
Q3 2019+3.0%+2.0%+6.3%
Q2 2019+0.0%-1.2%+2.5%
Q1 2019+0.5%+1.3%+1.3%
Q4 2018+2.8%+3.3%+8.4%
Q3 2018-3.3%-2.3%+1.5%
Q2 2018-0.9%+0.3%-2.3%
Q1 2018-0.7%+1.2%+3.7%
Q4 2017+0.3%-2.4%-5.9%
Q3 2017+3.7%+7.1%+8.8%
Q2 2017+2.1%+2.2%+2.7%
Q1 2017-1.6%-4.0%-5.8%
Q4 2016+8.2%+4.5%+8.7%
Q3 2016+5.7%+4.2%+16.0%
Q2 2016-1.0%-2.4%-7.0%
Q1 2016-1.2%
Q4 2015-0.6%
Q3 2015+5.1%
Q2 2015+4.2%
Q1 2015+4.0%
Q4 2014+2.4%
Q3 2014+0.3%
Q2 2014+1.5%
Q1 2014+0.4%
Q4 2013+2.7%
Q3 2013-1.6%
Q2 2013+3.8%
Q1 2013+2.5%
Q4 2012+1.7%
Q3 2012-4.0%
Q2 2012-3.1%
Q1 2012-0.3%
Q4 2011+0.6%
Q3 2011-2.4%
Q2 2011+0.0%
Q1 2010+0.5%
Q1 2011-0.1%
Q4 2008+0.9%
Q4 2010+0.9%
Q3 2009+4.0%
Q3 2010+4.0%
Q2 2010+1.5%
Q2 2009+1.5%
Q4 2009+1.5%

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