The Hanover Insurance (US:THG) Prnewswireยท2024-07-18 20:14Core 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]