Hanover Insurance Group (THG) Tops Q4 EPS by 4c

Hanover Insurance Group (NYSE: THG) reported Q4 EPS of $1.51, $0.04 better than the analyst estimate of $1.47. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $1.04 billion.

Fourth Quarter and Full Year Highlights

• Fourth quarter combined ratio of 97.4%, including 4.6 points of catastrophe losses
• Net premiums written increased 6.5% for the fourth quarter and 6.7% for the year, with growth in more profitable Personal Lines, Specialty, and Small Commercial businesses
• Continued price increases in both Commercial and Personal Lines, with an increase of 6.1% in Core Commercial Lines in the fourth quarter
• Net investment income of $69.4 million in the fourth quarter, up 10.9% from the prior-year quarter, and $267.4 million for the full year, up 9.6% from 2017, driven by higher cash flows from operations and higher partnership income
• Book value per share of $69.81, down 0.8% from September 30, 2018; book value per share up 5.9%, adding back the impact of the $4.75 special dividend, declared on December 30, 2018(2)
• Following the close of the Chaucer sale on December 28, 2018, the Board of Directors approved a special dividend of $4.75 per common share and an Accelerated Share Repurchase ("ASR") agreement for $250 million; the company retired 1.8 million shares as of the ASR settlement date on January 2, 2019
• Repurchased approximately 117,400 shares of common stock for $13.5 million during the fourth quarter and approximately 497,200 shares for $57.7 million during the full year 2018
• On December 7, 2018, the Board of Directors approved an increase to the quarterly common dividend of 11%, to $0.60 per common share
• Fourth Quarter and Full Year Highlights
• Fourth quarter combined ratio of 97.4%, including 4.6 points of catastrophe losses
• Net premiums written increased 6.5% for the fourth quarter and 6.7% for the year, with growth in more profitable Personal Lines, Specialty, and Small Commercial businesses
• Continued price increases in both Commercial and Personal Lines, with an increase of 6.1% in Core Commercial Lines in the fourth quarter
• Net investment income of $69.4 million in the fourth quarter, up 10.9% from the prior-year quarter, and $267.4 million for the full year, up 9.6% from 2017, driven by higher cash flows from operations and higher partnership income
• Book value per share of $69.81, down 0.8% from September 30, 2018; book value per share up 5.9%, adding back the impact of the $4.75 special dividend, declared on December 30, 2018(2)
• Following the close of the Chaucer sale on December 28, 2018, the Board of Directors approved a special dividend of $4.75 per common share and an Accelerated Share Repurchase (\"ASR\") agreement for $250 million; the company retired 1.8 million shares as of the ASR settlement date on January 2, 2019
• Repurchased approximately 117,400 shares of common stock for $13.5 million during the fourth quarter and approximately 497,200 shares for $57.7 million during the full year 2018
• On December 7, 2018, the Board of Directors approved an increase to the quarterly common dividend of 11%, to $0.60 per common share

For earnings history and earnings-related data on Hanover Insurance Group (THG) click here.

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