NYSE$THG

The Hanover Insurance Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Hanover's Q3 2022 results were impacted by inflationary environment and Hurricane Ian, but delivered solid underwriting results and strong investment performance.

The Hanover Insurance Group, Inc. reported net income of $0.2 million, or $0.01 per diluted share, in the third quarter of 2022. Operating income was $35.7 million, or $0.99 per diluted share, for the third quarter of 2022. Net premiums written increased of 9.5%.

  • Combined ratio of 101.0%; combined ratio, excluding catastrophes, of 94.2%
  • Catastrophe losses of $90.1 million, or 6.8 points of the combined ratio, including the impact from Hurricane Ian of $28.0 million
  • Net premiums written increase of 9.5%, with contributions from each segment
  • Renewal price change of 11.2% in Core Commercial, 12.4% in Specialty and 7.3% in Personal Lines, driven by homeowners renewal price change of 12.1%

Headline financials

Total Revenue

$1.37B

Previous: $1.28B+7.0%
EPS (adj)

$0.99

Previous: $0.85+16.5%
Capital Expenditures

-$13.9M

Previous: -$5.7M-143.9%
Free Cash Flow

-$13.7M

Previous: $28.3M-148.4%
Net Income

$200K

Previous: $34M-99.4%
Operating Income

$53.9M

Previous: $47M+14.7%
Gross Profit

$150M

Previous: $188M-20.6%
Cash & Equivalents

$165M

Previous: $171M-3.7%
Total Assets

$13.7B

Previous: $14.1B-2.5%
Stock-Based Comp

$7.7M

Previous: $5.8M+32.8%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.37B

Q3 2022+7%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hanover · $839M total across 2 segments · Q3 2022

  • Personal Lines
    $535M+9.8%
  • Specialty
    $303M

Forward guidance

The company is focused on long-term target for operating ROE and responsible capital management for the benefit of its valued shareholders.

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 Q3 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro