NYSE$THG

The Hanover Insurance Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported a net loss due to Winter Storm Elliott, made progress toward recapturing margins in property lines, and advanced long-term strategic and business priorities.

The Hanover Insurance Group reported a net loss of $11.6 million for Q4 2022, impacted by Winter Storm Elliott. Despite this, the company increased Personal Lines pricing and saw strong performance in its Specialty business.

  • Combined ratio was 108.0%, and 94.1% excluding catastrophes.
  • Catastrophe losses were $189.6 million, including $165 million from Winter Storm Elliott.
  • Net premiums written increased by 9.1%, with contributions from each segment.
  • Renewal price changes were 10.2% in Core Commercial, 13.2% in Specialty, and 10.1% in Personal Lines.

Headline financials

Total Revenue

$1.33B

Previous: $1.22B+9.1%
EPS (adj)

-$1.05

Previous: $3.38-131.1%
Capital Expenditures

$3.9M

Previous: $2.3M+69.6%
Free Cash Flow

$195M

Previous: $226M-13.9%
Net Income

-$11.6M

Previous: $164M-107.1%
Operating Income

-$37.4M

Previous: $122M-130.6%
Gross Profit

$1.48B

Previous: $1.36B+9.0%
Cash & Equivalents

$305M

Previous: $231M+32.1%
Total Assets

$14B

Previous: $14.3B-1.8%
Stock-Based Comp

$7.2M

Previous: $6.1M+18.0%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.33B

Q4 2022+9.1%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hanover · $861M total across 2 segments · Q4 2022

  • Personal Lines
    $552M+11.2%
  • Specialty
    $308M

Forward guidance

The company has entered 2023 in a robust financial position and has strong visibility into improved margins and investment income, as we deliver comprehensive and innovative insurance solutions to our agent partners and customers, which should drive sustainable, profitable growth in the year ahead.

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 Q4 2022

Historical avgQ4 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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