Q2 2024 Hanover Insurance Group Inc Earnings Call Transcript
Key Points
- The Hanover Insurance Group Inc (THG) reported a strong operating return on equity of 9% for the second quarter and 12% for the first half of the year.
- The company achieved significant improvement in underlying margins for personal lines, with an ex-cat combined ratio of 88.5% compared to 92.8% year over year.
- Specialty segment experienced top-line growth of 8.2%, driven by strong retention and double-digit new business growth.
- Core commercial segment delivered solid net written premium growth of 5.5%, with an 8.5% increase in small commercial.
- The company successfully renewed its property reinsurance treaties with favorable market responses, maintaining a consistent structure and securing full capacity across its catastrophe reinsurance program.
- The Hanover Insurance Group Inc (THG) faced significant catastrophe losses, with a combined ratio of 99.2% including 10.7 points of catastrophe losses.
- Personal lines experienced pressure from elevated personal umbrella losses stemming from auto bodily injury coverage.
- The company noted a slowdown in claims emergence in workers' compensation, which merits caution in current year loss selections.
- The expense ratio increased by 20 basis points year-over-year, reflecting talent and technology investments as well as increased variable compensation.
- The company continues to face challenges from social inflation and evolving liability trends, requiring ongoing vigilance and proactive management.
Good day, and welcome to the Hanover Insurance Group's Second Quarter Earnings Conference Call. My name is Betsy, and I'll be your operator for today's call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.
Thank you, operator. Good morning, and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; and Jeff Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Dick Lavey, President of Agency Markets; and Bryan Salvatore, President of Specialty Lines.
Before I turn the call over to Jack, let me note that our earnings press release, financial supplement and a complete slide presentation for today's call are available in the Investors section of our website at
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