PR Newswire
WORCESTER, Mass., Nov. 3, 2016
WORCESTER, Mass., Nov. 3, 2016 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $88.4 million, or $2.06 per diluted share, for the third quarter of 2016, compared to net income of $78.3 million, or $1.74 per diluted share, in the prior-year quarter. Operating income was $78.6 million, or $1.83 per diluted share, for the third quarter of 2016, compared to $72.2 million, or $1.61 per diluted share, in the prior-year quarter.
Third Quarter Highlights
| | | | | | | | |
| Three months ended | | Nine months ended | | ||||
| September 30 | | September 30 | | ||||
($ In millions, except per share data) | 2016 | | 2015 | | 2016 | | 2015 | |
Net premiums written | $ 1,250.9 | | $ 1,199.6 | | $ 3,616.8 | | $ 3,708.1 | |
Operating income | 78.6 | | 72.2 | | 204.1 | | 199.7 | |
per diluted share | 1.83 | | 1.61 | | 4.71 | | 4.43 | |
Net income | 88.4 | | 78.3 | | 168.6 | | 253.9 | |
per diluted share | 2.06 | | 1.74 | | 3.89 | | 5.64 | |
Net investment income | 67.8 | | 68.3 | | 205.2 | | 209.1 | |
Book value per share | $ 72.08 | | $ 66.55 | | $ 72.08 | | $ 66.55 | |
Ending shares outstanding | 42.3 | | 43.2 | | 42.3 | | 43.2 | |
Combined ratio | 94.2% | | 94.9% | | 95.5% | | 95.9% | |
Combined ratio, excluding catastrophes(3) | 91.9% | | 90.9% | | 92.3% | | 91.6% | |
"We are pleased with our performance in the quarter, generating operating earnings per share of $1.83 and a return on equity of 11.6%," said Joseph M. Zubretsky, president and chief executive officer at The Hanover. "Our results reflect a modest level of catastrophe losses, stable accident year loss ratios across all businesses, healthy and controlled net written premium growth and continuing pricing increases in domestic lines. While challenges remain, we are pleased with the execution of our business strategies, growth momentum and risk selection in the current difficult market, and excited about the strategic prospects that lie ahead."
"We achieved a combined ratio of 94.2% in the quarter and a stable stream of net investment income despite the ongoing low interest rate environment," commented Eugene Bullis, interim chief financial officer at The Hanover. "The strength of our capital position provides a solid foundation on which to grow our business. Book value per share was up 2.1% in the quarter and up 8.9% from year end, as we remained focused on delivering shareholder value."
Third Quarter Operating Highlights
Commercial Lines
Commercial Lines operating income before taxes was $42.5 million, compared to $47.1 million in the third quarter of 2015. The Commercial Lines combined ratio was 99.2%, compared to 98.3% in the prior-year quarter. Catastrophe losses were $17.7 million, or 3.0 points of the combined ratio, compared to $13.8 million, or 2.5 points, in the prior-year quarter. Third quarter 2016 results also reflected net unfavorable prior-year loss reserve development of $19.3 million, or 3.3 points of the combined ratio, compared to $11.8 million, or 2.1 points, in the third quarter of 2015. The unfavorable development in the third quarter of 2016 was driven by Other commercial lines, primarily related to terminated AIX program business, as well as liability coverages in the commercial multi-peril line.
Commercial Lines current accident year combined ratio, excluding catastrophe losses(4), improved by 0.8 points to 92.9%, compared to 93.7% in the prior-year quarter, due to prior pricing, business mix initiatives and favorable property loss experience in commercial multi-peril.
Net premiums written were $647.3 million in the quarter, up 4.8% from the prior-year quarter, driven by pricing increases and improved retention. Core commercial(5) business pricing increases remained consistent with the second quarter 2016 at 3.9%.
The following table summarizes premiums and the components of the combined ratio for Commercial Lines:
| | | | | | | | |
| Three months ended | | Nine months ended | | ||||
| September 30 | | September 30 | | ||||
($ in millions) | 2016 | | 2015 | | 2016 | | 2015 | |
Net premiums written | $ 647.3 | | $ 617.6 | | $ 1,831.5 | | $ 1,768.6 | |
Net premiums earned | 587.2 | | 560.4 | | 1,733.3 | | 1,663.6 | |
Operating income before taxes | 42.5 | | 47.1 | | 129.2 | | 126.5 | |
Loss and LAE ratio | 63.5% | | 62.5% Werbung Mehr Nachrichten zur Hanover Insurance Group Aktie kostenlos abonnieren
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