Hanover Insurance’s $34M income, falls short compared to prior-year

Photo | Grant Welker The Hanover Insurance Group's Worcester headquarters

Write a Comment

By Sloane M. Perron

The Hanover Insurance Group, Inc., headquartered in Worcester, reported a net income of $34 million for the company’s third quarter earnings, during a Wednesday announcement.

The new net income shows a nearly $90 million decline when compared to the previous year’s earning of $119 million.

On Thursday morning, Hanover's stock price was down about 2% to $126.54 per share on the New York Stock Exchange.

Commercial lines operating income totaled $42 million, which again showed a decrease compared to the $62 million reported in the third quarter of 2020.

According to the Wednesday release, on Sept. 30, book value per share was $87.04, down 1.3% from June 30, 2021, primarily driven by a decrease in net unrealized gains on fixed maturity investments, net of tax and by ordinary dividends, partially offset by net income.

"Our underlying loss performance was in line with our expectations. Remaining favorable personal auto loss frequency was offset by the increase in auto severity, while lower loss experience in specialty property coverages offset elevated property large loss activity in commercial multiple peril. The effectiveness and balanced approach of our prior actions in personal lines demonstrate our ability to react quickly and thoughtfully to environmental changes,” said Jeffrey Farber, executive vice president and chief financial officer of Hanover Insurance, in a press release.