The Hanover Insurance (THG) - 2025 Q1 - Quarterly Results

Financial Performance - Gross premiums written for Q1 2025 were $1,689.9 million, a 3.9% increase from Q1 2024's $1,625.8 million[8] - Net premiums earned in Q1 2025 reached $1,508.5 million, reflecting a 4.1% growth compared to $1,448.6 million in Q1 2024[10] - Operating income after taxes for Q1 2025 was $141.8 million, up 27.5% from $111.9 million in Q1 2024[8] - Net income for Q1 2025 increased to $128.2 million, an 11.0% rise from $115.5 million in Q1 2024[10] - Total revenues for Q1 2025 were $1,603.2 million, a 3.4% increase from $1,551.1 million in Q1 2024[10] - Total assets as of March 31, 2025, were $15,470.3 million, up from $14,594.1 million a year earlier[8] - Total shareholders' equity increased to $3,044.4 million in Q1 2025, compared to $2,522.7 million in Q1 2024[8] - Net investment income for Q1 2025 was $106.1 million, an 18.3% increase from $89.7 million in Q1 2024[10] - Total liabilities slightly decreased by 0.1% to $12,425.9 million from $12,432.7 million[12] - Shareholders' equity increased by 7.1% to $3,044.4 million from $2,841.8 million[12] Underwriting and Loss Ratios - GAAP underwriting profit for Q1 2025 was $82.9 million, an increase from $60.7 million in Q1 2024[16] - Loss and LAE ratio for Q1 2025 was 63.3%, compared to 64.6% in Q1 2024[16] - Current year catastrophe losses in Q1 2025 amounted to $107.6 million, up from $93.9 million in Q1 2024[16] - The combined ratio for Q1 2025 was 94.1%, an improvement from 95.5% in Q1 2024[16] - The current year loss and LAE ratio, excluding catastrophe losses, was 59.2% for Q1 2025, down from 65.6% in Q1 2024[31] Investment Performance - Total investments rose by 3.0% to $9,689.5 million compared to $9,409.8 million[12] - Net investment income for Q1 2025 was $30.5 million, an increase from $25.6 million in Q1 2024[35] - The total fixed maturities were valued at $8,808.3 million, with a fair value of $9,178.7 million, representing 88.0% of total investments[38] - The weighted average duration of fixed maturities is 4.5 years, with 30.5% of the maturities falling within the 6-8 year range[42] - The total unrealized loss in fixed maturities year-to-date was $(370.4) million, with a net unrealized gain of $138.9 million[38] Shareholder Information - The Hanover Insurance Group's common stock price ranged from $174.61 to $147.13 in Q1 2025, with a dividend of $0.900 per share[63] - In 2024, the stock price ranged from $136.58 to $122.20 in Q1, with consistent dividends of $0.850 per share for Q2 and Q3, and $0.900 in Q4[63] Ratings and Financial Strength - The Hanover Insurance Company holds an A rating from A.M. Best and an A rating from S&P for financial strength[64] - The company's senior debt is rated bbb+ by A.M. Best, BBB by S&P, and Baa2 by Moody's[64] - The subordinated debentures are rated bbb- by A.M. Best, BB+ by S&P, and Baa3 by Moody's[64] Strategic Initiatives - New product development and market expansion strategies are being prioritized to enhance growth in 2025[20]