Hanover Insurance's net premiums written for the second quarter was $1.08bn, compared to $1.13bn for the same period of 2019
Hanover announces second quarter results. (Credit: Pixabay/Csaba Nagy)
The Hanover Insurance Group has reported a net income of $115.2m, or $3.01 per diluted share, for the second quarter of 2020, a 56% increase compared to $74m, or $1.79 per diluted share, for the same period of last year.
The insurance firm has reported total revenues of $1.22bn for the second quarter of 2020, compared to $1.19bn for the corresponding period of the previous year.
The second-quarter operating income was decreased to $62.7m from $77.7m for the corresponding period of last year.
The insurance firm stated the difference between net and operating income in the second quarter was due to an after-tax increase in the fair value of equity securities.
The net premiums written for the quarter was $1.08bn, decreasing from $1.13bn, compared to last year’s second quarter.
Hanover Insurance president and CEO comments on Q2 results
The Hanover Insurance president and CEO John Roche said: “Although our second-quarter net premiums written were down 5%, impacted by the significant and sudden slowdown in economic activity and premium returns, we saw flat premium growth in the month of June, and we began to see growth resume in July.”
Total losses and expenses for the second quarter amounted to $1.081bn, decreasing slightly from $1.088bn from last year’s corresponding period.
Roche added: “We’re very pleased with our performance in the second quarter, particularly in light of the elevated catastrophe loss experience for us and across the industry.
“We delivered operating earnings per share of $1.63 and a solid operating ROE of 9.5%, demonstrating our ability to operate successfully even in the most challenging of environments. In light of our diverse and high-quality underwriting mix, Covid-19-related loss activity remains limited and we believe future exposure is manageable.”
Under the commercial lines division, the operating income before tax was $55.3m for the quarter, compared to $72.8m for the same period of 2019.
Catastrophe losses for the period were recorded as $64.8m, compared to $23m in the previous-year quarter.