Core Insights - The Hanover Insurance Group reported a preliminary estimate of $157.1 million in catastrophe losses for Q2 2024, equating to 10.7 points of net earned premium, primarily affecting the Personal Lines business [1][2] - The property and casualty insurance industry experienced significant catastrophe losses in Q2 2024, with the highest losses for May in over a decade, highlighting the importance of the company's catastrophe management plan initiated last year [2] - The company expects a combined ratio of 99.2% for Q2 2024, with an ex-CAT combined ratio of 88.5%, indicating strong underlying performance despite the catastrophe losses [2][3] Financial Performance - The Hanover anticipates after-tax net income of $1.12 per diluted share and operating income of $1.88 per diluted share for Q2 2024, reflecting a solid bottom line despite the impact of catastrophe losses [2][16] - The company reported a significant year-over-year improvement in the ex-CAT Personal Lines loss ratio, driven by enhanced profitability in auto and homeowners lines [2] - The Core and Specialty segments showed continued strength, with effective navigation of liability trends and execution of property portfolio initiatives [2] Underwriting Ratios - The combined ratio (GAAP) for Q2 2024 is expected to be 99.2%, with a catastrophe ratio of 10.7% and a combined ratio excluding catastrophes (non-GAAP) of 88.5% [3][15] - The loss and LAE ratio (GAAP) will also reflect the impact of catastrophe losses, with a focus on current accident year loss ratios excluding catastrophes [4][17] Company Overview - The Hanover Insurance Group is a major player in the U.S. property and casualty insurance market, providing insurance solutions through independent agents and brokers for small to midsized businesses, homes, and automobiles [6]

SOURCE The Hanover Insurance Group, Inc. WORCESTER, Mass., July 1, 2024 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) expects to issue its second quarter financial results after the market closes on Wednesday, July 31, 2024. The company expects to webcast a discussion of its results on Thursday, August 1, at 10:00 a.m. ET, through its website at hanover.com. The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitu ...

WORCESTER, Mass., June 20, 2024 /PRNewswire/ -- According to the 2024 Home Maintenance Report released today by The Hanover Insurance Group, Inc. (NYSE: THG), many homeowners don't know how to properly upkeep and maintain their homes to help avoid significant and costly damage. The report highlights opportunities for improving risk mitigation efforts related to areas susceptible to common losses. While the 2024 Home Maintenance Report found homeowners are actively taking care of their homes, the data did sh ...

The Hanover Insurance Group's (THG) growth in the Core Commercial and Specialty segments, stable retention, better pricing, strong market presence and solid capital position poise it well for growth. Shares have gained 6.5% year to date, compared with the industry's increase of 16.6%. The insurer carries a Zacks Rank #3 (Hold). It has a VGM Score of B. Image Source: Zacks Investment Research Return on Equity Hanover Insurance believes that it is well-positioned to achieve a long-term return on equity target ...

Group 1 - The Hanover Insurance Group, Inc. declared a quarterly dividend of $0.85 per share on its common stock, payable on June 28, 2024, to shareholders of record as of June 14, 2024 [1] - The Hanover Insurance Group is one of the largest property and casualty insurance businesses in the United States, providing insurance solutions through independent agents and brokers [3] Group 2 - The company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and personal items [3]

Financial Data and Key Metrics Changes - The company reported an after-tax operating income of $112 million, or $3.08 per diluted share, with an operating return on equity of 15% [59] - The combined ratio for the first quarter was 95.5%, showing a more than 2-point improvement in the ex-CAT combined ratio [67] - The expense ratio for the first quarter was 30.9%, slightly above the full-year target of 30.7% due to timing of certain expenses [40][59] Business Line Data and Key Metrics Changes - Specialty business achieved a combined ratio of 87.6%, with net written premium growth expected in the upper single digits for 2024 [28][32] - Core Commercial segment's net written premiums grew by 3% in the first quarter, with a combined ratio of 90.0% [41][43] - Personal Lines showed improved profitability with a current accident year loss ratio of 65.6%, and pricing increases of 18.2% for Auto and 30.2% for Home [71][73] Market Data and Key Metrics Changes - The Commercial P&C market remains rational, supporting necessary price increases amid recent property loss trends [34] - The Personal Lines market is robust, with expectations for premium growth to accelerate and pricing to remain firm in 2024 [37] - The company is seeing a shift in claims towards more complex claims, contributing to increased loss severity [42] Company Strategy and Development Direction - The company is focused on margin recapture and catastrophe mitigation plans while repositioning its Personal Lines business for improved earnings resiliency [31][38] - Investments are being made in technology and resources for the Specialty business, particularly in E&S, Industrial Property, Marine, and Healthcare [84] - The company aims to optimize its liability mix and maintain a disciplined approach to pricing and reserving [63][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to improve the loss ratio going forward, despite some fluctuations in individual losses [10] - The company is cautious about liability coverages in auto, reflecting an elevated loss expectation due to catastrophic claims [45] - Overall, management is confident in the company's ability to deliver stronger results and execute on strategic priorities [38][76] Other Important Information - The company plans to transition the management of its investment-grade fixed maturity assets to an external manager to optimize investment portfolio contributions [47] - Catastrophe activity accounted for 6% of net earned premium in the quarter, with specific events contributing to losses [40] Q&A Session Summary Question: Insights on Core Commercial loss ratio expectations - The core loss ratio for commercial was flat year-over-year, with expectations for continued performance in line with current trends [22] Question: Comments on Small Commercial growth and competitive landscape - The company is experiencing strong growth in Small Commercial, with a competitive advantage in this area despite increased interest from competitors [18] Question: Clarification on Personal Auto reserve charge - The slight reserve charge in Personal Auto was not a concern, with overall favorable development in Auto and slight adverse development in Home [12] Question: Impact of social inflation on liability lines - The company is managing its liability profile carefully, with a focus on maintaining low policy limits and avoiding high-severity areas [63] Question: Progress on Personal Lines deconcentration strategy - The company is actively reducing concentration in the Midwest while maintaining higher retention in the Northeast, with a focus on improving terms and conditions [80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbols | Name of each exchange on which registered | | --- | - ...

Exhibit 99.2 FINANCIAL SUPPLEMENT FIRST QUARTER 2024 | Segment Descriptions | 1 | | --- | --- | | Financial Highlights | 2 | | Consolidated Financial Statements | | | Income Statements | 3 | | Balance Sheets | 4 | | Pre-tax Operating Results and Related Metrics | | | Consolidated | 5-6 | | Core Commercial | 7-8 | | Specialty | 9-10 | | Personal Lines | 11-13 | | Investments | | | Net Investment Income and Yields | 14 | | Investment Portfolio | 15 | | Credit Quality and Duration of Fixed Maturities | 16 | | ...

Premiums and Segments - The Hanover Insurance Group generated approximately $5.8 billion in net premiums written for 2023, reflecting a 6.1% increase from the previous year[11]. - The Core Commercial segment accounted for $2.1 billion, or 36.3%, of net premiums written, with commercial multiple peril coverage representing 50.9% of this segment[16][17]. - The Specialty segment generated $1.3 billion, or 22.2%, of net premiums written, with Professional and Executive Lines contributing 32.5% of this total[24][25]. - The Personal Lines segment produced $2.4 billion, or 41.5%, of net premiums written, with personal automobile coverage making up 58.3% of this segment[30][31]. - In 2023, the total net premiums written amounted to $5,810.2 million, with Core Commercial contributing $2,107.0 million (36.2%), Specialty $1,293.3 million (22.2%), and Personal Lines $2,409.9 million (41.6%)[39]. - Approximately 88% of the policies in force are account business, with 52% of Personal Lines net premiums written generated in Michigan and Massachusetts combined[40]. Geographic Focus and Market Position - The company aims to diversify its geographic mix beyond its historical core states of Michigan and Massachusetts to improve profitability over time[32]. - In Michigan, the company underwrites approximately 7% of the state's total personal lines market, with 62% of Personal Lines net premiums written in the personal automobile line[41]. - Approximately 64% of Massachusetts Personal Lines net premiums written is in the personal automobile line, representing 13% of total personal automobile net premiums written[43]. - For the year ended December 31, 2023, approximately 19.6% of net premiums written were generated in Michigan, and 8.3% in Massachusetts, indicating significant geographic concentration[125]. Claims and Loss Management - Persistent supply chain disruptions and inflation have led to higher claims costs, particularly in automobile and homeowners lines, impacting future financial results[14]. - Claims management is a significant focus, with the largest expenditures being claim payments and related loss adjustment expenses[49]. - Actual losses from claims may exceed reserves, which are based on estimates and actuarial projections[131]. - The company is experiencing extensions of claim "tails" and increased loss costs due to the pandemic and shifts in claim settlement patterns[133]. - Catastrophe losses, particularly from weather-related events, have historically generated the majority of claims, impacting financial performance[143]. - Climate change may lead to increased unpredictability and severity of weather events, adversely affecting future profits and cash flows[146]. Reinsurance and Risk Management - The company utilizes a variety of reinsurance agreements to protect against large or unusual losses, including catastrophe excess of loss reinsurance[53]. - The reinsurance program for 2024 is fundamentally similar to the 2023 program, covering Core Commercial, Specialty, and Personal Lines segments[57]. - The property catastrophe occurrence excess of loss reinsurance policy provides coverage up to $1.3 billion with a retention of $200 million, and additional coverage for northeast named storm catastrophes up to $1.6 billion[58]. - The estimated reinsurance recoverable from the Michigan Catastrophic Claims Association (MCCA) was $911.7 million as of December 31, 2023[166]. - The company evaluates the financial strength of reinsurers based on ratings from agencies and historical collections[58]. - The company bears counterparty risk with respect to reinsurers, including risks from over-concentration of exposures within the industry[152]. Financial Performance and Reserves - The statutory reserve for losses and loss adjustment expenses (LAE) was $5,618.7 million as of December 31, 2023, compared to $5,371.0 million in 2022[96]. - Total GAAP reserve for losses and LAE was $7,308.1 million as of December 31, 2023, an increase from $7,012.6 million in 2022[96]. - The reserve for uncollectible reinsurance was established at $6.9 million, representing 0.3% of the total reinsurance recoverable balance[83]. - The company has established standards requiring reinsurers to have a minimum policyholder surplus of $500 million and a rating of "A" or better from A.M. Best or S&P Global[84]. Employee and Organizational Structure - Employee headcount stood at approximately 4,800 as of December 31, 2023, with a focus on positive employee relations and engagement[109]. - The company has transitioned to a fully hybrid work environment to enhance employee engagement and retention[119]. - Management is committed to fostering an inclusive and diverse workforce, with ongoing initiatives to support equity and collaboration[111]. Competitive Landscape and Strategic Initiatives - The company faces intense competition from various insurers and new entrants, which could negatively impact revenues and profitability[192]. - The company is making significant investments in its Core Commercial, Specialty, and Personal Lines businesses to achieve sustained growth, but there is no assurance of success[180]. - New product introductions and geographic expansions present increased underwriting risks, which could adversely affect profitability[181]. - The introduction of new technologies and reliance on data-driven solutions are critical for maintaining competitiveness in the market[186]. Regulatory and Compliance Risks - The company is subject to evolving privacy and data security regulations, which could impose significant compliance burdens and affect operations[191]. - Regulatory authorities may require additional capital to maintain appropriate levels of statutory surplus, impacting business growth[200]. - The Michigan Insurance Department enacted regulations for mandated PIP premium rate reductions with an eight-year premium rate freeze effective July 2, 2020[165].

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.2% for Q4 2023, outperforming expectations, with year-over-year margin improvements across all segments [4][25] - Net investment income increased by $5.7 million to $81.6 million in Q4, with an annual growth of 12.1% for 2023, exceeding original guidance [15][16] - Book value per share rose 16.4% in Q4 to $68.93, driven by improved unrealized loss positions and strong earnings [16] Segment Data and Key Metrics Changes - Core Commercial segment achieved a current accident year ex-CAT combined ratio of 91.4%, improving by 1.7 points year-over-year [6] - Specialty segment's current accident year ex-CAT combined ratio improved to 85.9%, with an underlying loss ratio of 49.5% [7] - Personal Lines saw a current accident year ex-CAT combined ratio of 93%, improving nearly 6 points from the previous year, with auto loss ratio improving by 7.1 points to 78.5% [8][10] Market Data and Key Metrics Changes - The company anticipates net written premium growth in the mid-single digits, with Specialty expected to grow in the upper single digits [23] - The expense ratio for 2023 was 30.5%, better than the guidance of 30.8%, with expectations for a slight improvement to 30.7% in 2024 [24][123] Company Strategy and Development Direction - The company is focused on margin recapture initiatives and has implemented a multifaceted margin recapture plan to drive sustainable profitable growth [25][53] - There is a strategic shift towards increasing liability lines while managing catastrophe exposure, with expectations for a gradual change in business mix [30][32] - The company plans to enhance its catastrophe management capabilities and has made significant progress in diversifying its portfolio [52][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2024 and beyond, citing strong operational and financial momentum [58][89] - The company expects significant improvements in Personal Lines loss ratios in 2024 due to earned pricing benefits and moderating property loss trends [13][70] - Management remains cautious about liability coverages in auto, reflecting elevated loss expectations [10][12] Other Important Information - The company completed its multiline casualty reinsurance renewals with reduced co-participation and lower-than-expected price increases [14] - The CAT load for 2024 is set at 7%, with expectations for a decrease in 2025, reflecting a comprehensive reevaluation of catastrophe risks [20][22] Q&A Session Summary Question: On the favorable development in Core Commercial, what offset the benefits? - Management noted that favorable development in Core Commercial was offset by a small amount of liability unfavorability in commercial auto and umbrella [29] Question: Can you elaborate on the shift to more liability lines? - Management indicated that the shift would be incremental, with a focus on diversifying the business mix thoughtfully over the next 12 to 18 months [30][31] Question: What is the size of the personal umbrella book? - The personal umbrella book is approximately $60 million [35][36] Question: Can you break down the $2.2 million reserve releases? - Management stated that the details would be published at year-end, but the releases were not significant [39] Question: What are the expectations for specialty growth and non-renewals? - Management expects specialty growth to ramp up throughout 2024, with a return to upper-single-digit growth [73] Question: What is the outlook for the expense ratio? - The expense ratio for 2024 is expected to be 30.7%, with improvements attributed to reduced variable compensation [24][123]