The Hanover reports $118.9M in profit, same as year prior

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

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The Hanover Insurance Group Inc. in Worcester profited $118.9 million in the company’s third quarter, the same amount reported during the same quarter a year prior, according to an earnings report published Tuesday.

Its year-to-date earnings, however, were down significantly, with the company reporting $194.1 million in net income, compared to $315.3 million during the first nine months of 2019, a 38% decrease.

Revenue in the third quarter was up by $35 million, or nearly 3%, compared to a year ago, reaching more than $1.2 billion.

At the same time, the company has entered a $100-million accelerated stock buyback plan, according to the report. Hanover expects to receive 80% of the total shares expected to be delivered as of the initial settlement date, which is Thursday. The remaining shares are expected no later than February 2021.

In a statement, executive vice president and chief financial officer Jeffrey Farber said the stock buyback plan reinforces the company’s commitment to effectively managing its capital.

“This agreement further underscores the strength in our company's earnings power and ability to consistently generate excess capital," Farber said.

Still, company leadership remained optimistic about The Hanover’s financial future.

"Despite industry headwinds and weather challenges, we are driving robust and consistent earnings, enabled by the effectiveness of our exposure and risk management actions taken over the last several years and our outstanding distribution capability,” said CEO and president John Roche, in a statement.