The Hanover Insurance (US:THG) Prnewswire·2025-04-30 20:10Core Financial Performance - The Hanover Insurance Group reported net income of $128.2 million, or $3.50 per diluted share, for Q1 2025, an increase from $115.5 million, or $3.18 per diluted share, in Q1 2024 [2][4] - Operating income was $141.8 million, or $3.87 per diluted share, compared to $111.9 million, or $3.08 per diluted share, in the prior-year quarter [2][4] - The company achieved a net return on equity of 17.4% and an operating return on equity of 17.2% in Q1 2025 [2][4] Underwriting and Premiums - Net premiums written increased by 3.9% to $1,510.8 million in Q1 2025, compared to $1,454.0 million in Q1 2024 [4][5] - The combined ratio improved to 94.1% from 95.5% in the prior-year quarter, with a combined ratio excluding catastrophes at 87.8% compared to 89.5% [4][5] - Catastrophe losses amounted to $95.6 million, contributing 6.3 points to the combined ratio [5] Segment Performance - Core Commercial operating income before taxes was $26.8 million, down from $71.5 million in Q1 2024, with a combined ratio of 103.4% compared to 93.9% [6][9] - Specialty segment operating income before taxes increased to $64.6 million from $58.8 million, with a combined ratio of 87.7% [10][13] - Personal Lines operating income before taxes surged to $94.2 million from $18.9 million, with a combined ratio of 89.7% [15][19] Investment Income - Net investment income rose by 18.3% to $106.1 million, driven by higher earned yields and cash flows from operations [20][21] - The total pre-tax earned yield on the investment portfolio increased to 4.14% from 3.70% in the prior-year quarter [20] Shareholder Actions - The company repurchased approximately 173,000 shares of common stock for a total of $28.4 million year-to-date through April 29, 2025 [25] - Book value per share increased by 6.8% to $84.56 from December 31, 2024, reflecting strong earnings and a decrease in unrealized losses [23]