NYSE$THG

The Hanover Insurance Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Hanover's financial performance was impacted by significant catastrophe losses, particularly from severe freeze events and widespread wind and tornadic activity, but underlying results reflected strong performance across segments with robust price increases.

The Hanover reported a net loss of $12.0 million for Q1 2023, compared to a net income of $104.9 million in the prior-year quarter. The combined ratio was 104.4%, with catastrophe losses significantly impacting results. However, the underlying performance showed strength in Specialty, Core Commercial, and Personal Lines segments.

  • Combined ratio was 104.4%, but 91.7% excluding catastrophes.
  • Catastrophe losses totaled $175.0 million, impacting the combined ratio by 12.7 points.
  • Net premiums written increased by 8.3%, with contributions from each segment.
  • Renewal price changes were 11.5% in Core Commercial, 12.6% in Specialty, and 12.7% in Personal Lines.

Headline financials

Total Revenue

$1.44B

Previous: $1.33B+8.5%
EPS (adj)

$0.13

Previous: $3.26-96.0%
Capital Expenditures

-$3.5M

Previous: -$4.9M+28.6%
Free Cash Flow

-$15.5M

Previous: $99.9M-115.5%
Net Income

-$12M

Previous: $105M-111.5%
Operating Income

$13.2M

Previous: $154M-91.5%
Gross Profit

$138M

Previous: $280M-50.9%
Cash & Equivalents

$182M

Previous: $272M-33.3%
Total Assets

$14.1B

Previous: $13.8B+1.8%
Stock-Based Comp

$7.1M

Previous: $6.7M+6.0%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.44B

Q1 2023+8.5%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hanover · $856M total across 2 segments · Q1 2023

  • Personal Lines
    $532M+10.1%
  • Specialty
    $324M+7.1%

Forward guidance

The Hanover did not provide a specific financial outlook in its earnings report.

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 2023

Historical avgQ1 2023

+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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