The Hanover Insurance (THG) - 2024 Q4 - Annual Results

Financial Performance - Gross premiums written for Q4 2024 reached $1,625.8 million, an increase from $1,502.4 million in Q4 2023, representing a growth of 8.2% year-over-year[7] - Net premiums earned in Q4 2024 were $1,511.6 million, up from $1,440.3 million in Q4 2023, reflecting a year-over-year increase of 4.9%[7] - Operating income after taxes for Q4 2024 was $194.6 million, compared to $113.1 million in Q4 2023, marking a significant increase of 72.0%[7] - Total revenues for the year ended December 31, 2024, increased by 4.1% to $6,237.4 million compared to $5,993.5 million in 2023[10] - Net income for Q4 2024 was $167.9 million, a 55.6% increase from $107.9 million in Q4 2023[10] - Operating income before income taxes improved to $111.3 million in 2024 from a loss of $304.3 million in 2023, indicating a turnaround in profitability[36] - The company reported a GAAP underwriting loss of $4.1 million in 2024, a significant improvement from a loss of $411.6 million in 2023[36] - The net income for the year ended December 31, 2024, was $426.0 million, compared to $35.3 million in 2023, indicating a significant growth[58] - The diluted earnings per share for the year ended December 31, 2024, was $11.70, compared to $0.98 in 2023, reflecting a substantial increase[58] Assets and Equity - Total assets as of December 31, 2024, were $15,367.0 million, up from $14,612.6 million at the end of 2023, indicating a growth of 5.2%[7] - Total shareholders' equity increased to $2,841.8 million by December 31, 2024, compared to $2,465.6 million at the end of 2023, a rise of 15.2%[7] - The company reported a book value per share of $79.18 as of December 31, 2024, up from $68.93 a year earlier, reflecting a growth of 14.0%[7] - Total assets as of December 31, 2024, increased by 4.8% to $15,317.2 million compared to $14,612.6 million in 2023[12] - Cash and cash equivalents rose by 49.3% to $471.8 million in 2024 from $316.1 million in 2023[12] Premiums and Underwriting - Gross premiums written increased to $6,732.9 million in 2024, up from $6,432.9 million in 2023, representing a growth of 4.67%[18] - Net premiums written rose to $6,083.6 million in 2024, compared to $5,810.2 million in 2023, reflecting an increase of 4.69%[18] - Net premiums earned reached $5,912.6 million in 2024, up from $5,663.1 million in 2023, indicating a growth of 4.39%[18] - The combined ratio for 2024 was 94.8%, an improvement from 103.5% in 2023, indicating enhanced operational efficiency[20] - The combined ratio for Q4 2024 was 95.0%, compared to 89.2% in Q4 2023, indicating a deterioration in underwriting performance[15] Investment Performance - Net investment income rose by 23.4% to $100.7 million in Q4 2024 from $81.6 million in Q4 2023[10] - Net investment income increased to $372.6 million in 2024, compared to $332.1 million in 2023, marking a growth of 12.2%[20] - Net investment income for Q1 2024 was $40.8 million, up from $36.1 million in Q1 2023[22] - The total investments as of December 31, 2024, were valued at $9,881.6 million, with a net unrealized loss of $509.3 million[47] Operational Efficiency - The expense ratio for 2024 was 31.3%, slightly improved from 30.5% in 2023, indicating effective cost control measures[20] - The expense ratio for Q1 2024 was 37.0%, up from 35.3% in Q1 2023, reflecting increased operational costs[27] - The current year loss and LAE ratio, excluding catastrophe losses, was 58.2% in 2024, down from 61.1% in 2023, reflecting better loss management[20] - The loss and LAE ratio for Q1 2024, excluding catastrophe losses, was 48.7%, compared to 53.5% in Q1 2023, indicating improved loss management[27] Future Outlook and Strategy - The company plans to continue expanding its market presence through new product offerings and strategic acquisitions in 2025[6] - The company aims to enhance its technology capabilities to improve customer experience and operational efficiency in the upcoming fiscal year[6] Ratings and Stock Information - The Hanover Insurance Group, Inc. has a financial strength rating of A from A.M. Best and an S&P rating of A[76] - The company's senior debt is rated bbb+ by A.M. Best, BBB by S&P, and Baa2 by Moody's[76] - The subordinated debentures have a rating of bbb- from A.M. Best, BB+ from S&P, and Baa3 from Moody's[76] - The Hanover Insurance Group's common stock is traded on the New York Stock Exchange under the symbol "THG"[77]