NYSE$THG

The Hanover Insurance Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong second quarter with net income and operating income per diluted share.

The Hanover Insurance Group reported a net income of $40.5 million, or $1.12 per diluted share and an operating income of $68.1 million, or $1.88 per diluted share for the second quarter of 2024. The company's combined ratio was 99.2%, and the combined ratio excluding catastrophes was 88.5%.

  • Combined ratio of 99.2%; combined ratio, excluding catastrophes, of 88.5%.
  • Catastrophe losses of $157.1 million, or 10.7 points of the combined ratio.
  • Net premiums written increase of 5.1%.
  • Renewal price increases of 18.5% in Personal Lines, 11.7% in Core Commercial and 11.7% in Specialty.

Headline financials

Total Revenue

$1.54B

Previous: $1.5B+2.1%
EPS (adj)

$1.88

Previous: -$1.91+198.4%
Capital Expenditures

-$4.8M

Previous: -$6.8M+29.4%
Free Cash Flow

$35.7M

Previous: -$76M+147.0%
Net Income

$40.5M

Previous: -$69.2M+158.5%
Operating Income

$95.4M

Previous: -$79.4M+220.2%
Gross Profit

$226M

Previous: $71.8M+214.2%
Stock-Based Comp

$8.1M

Previous: $8.2M-1.2%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.54B

Q2 2024+2.1%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hanover · $914M total across 2 segments · Q3 2023

  • Personal Lines
    $592M+10.6%
  • Specialty
    $322M+6.1%

Forward guidance

The company expects underwriting margins to continue to improve as past and current rate increases earn-in, and further execute against catastrophe exposure initiatives. The current interest rate environment is expected to continue to provide an accumulating benefit of higher investment yields.

Tailwinds

  • Underwriting margins are expected to continue to improve as past and current rate increases earn-in.
  • Further execution against catastrophe exposure initiatives.
  • The current interest rate environment is expected to continue to provide an accumulating benefit of higher investment yields.
  • Confident positive trajectory will continue.
  • Committed to delivering value to stakeholders through sustainable, profitable growth and top-tier performance.

Headwinds

  • Dynamic environment requires financial discipline.
  • Maintaining robust reserving process due to current casualty market dynamics.
  • Doubling down on data and analytics tools to inform pricing and underwriting.
  • Remaining diligent with investment portfolio.
  • Unspecified risks and uncertainties in the company’s business that may affect future performance.

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 Q2 2024

Historical avgQ2 2024

+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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