NYSE$THG

The Hanover Insurance Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

The Hanover reported record fourth quarter net income and operating income, driven by strong performance across all segments and effective execution of strategic priorities.

The Hanover Insurance Group reported a record fourth quarter with net income of $167.9 million, or $4.59 per diluted share, and operating income of $194.6 million, or $5.32 per diluted share. The company's combined ratio was 89.2%, and net premiums written increased by 7.4%.

  • Net income reached $167.9 million, or $4.59 per diluted share, compared to $107.9 million, or $2.98 per diluted share, in the prior-year quarter.
  • Operating income was $194.6 million, or $5.32 per diluted share, up from $113.1 million, or $3.13 per diluted share, in the prior-year quarter.
  • The combined ratio improved to 89.2%, with a combined ratio excluding catastrophes of 87.5%.
  • Net premiums written increased by 7.4%.

Headline financials

Total Revenue

$1.45B

Previous: $1.53B-5.6%
EPS (adj)

$5.32

Previous: $3.13+70.0%
Combined Ratio

89.2%

No prior period
Combined Ratio ex-CAT

87.5%

No prior period
Catastrophe Losses

$27M

No prior period
Catastrophe Ratio

1.7%

No prior period
Net Investment Income

$101M

No prior period
Book Value / Share

$79.18

No prior period
Capital Expenditures

-$3M

Previous: $2.2M-236.4%
Net Income

$168M

Previous: $108M+55.6%
Operating Income

$195M

Previous: $113M+72.1%

Revenue & EPS history

Hanover · Revenue · Quarterly

$1.45B

Q4 2024-5.6%vs Q4 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 anticipates continued progress in 2025, leveraging targeted growth initiatives and capitalizing on emerging opportunities, expecting strong pricing to optimize geographic mix and achieve broad-based profitability.

Tailwinds

  • Expects continued progress in 2025.
  • Leveraging targeted growth initiatives.
  • Capitalizing on emerging opportunities.
  • Strong pricing will enable optimization of geographic mix.
  • Achieving broad-based profitability across all segments.

Headwinds

  • Potential impacts of inflation.
  • Claims severity from higher cost of repairs due to supply chain disruptions.
  • Potential impacts of economic activity.
  • Competition in the insurance industry.
  • Uncertainties in estimating indemnification liabilities.

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 2024

Historical avgQ4 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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