The Hanover Insurance Group, Inc. Provides Earnings Guidance for the Fourth Quarter of 2018
January 15, 2019 at 04:17 pm
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The Hanover Insurance Group, Inc. provided earnings guidance for the fourth quarter of 2018. The company estimated catastrophe activity would impact fourth quarter operating results by approximately $50 million before taxes, or 4.6% of net premiums earned, compared to its fourth quarter catastrophe assumption of 3.6%. Catastrophe losses in the quarter stemmed primarily from the Camp and Woolsey wildfires in California, as well as Hurricane Michael. Additionally, the company's fourth quarter results will be impacted by higher than expected current accident year losses, driven by elevated property activity, partly due to large losses and non-catastrophe weather, as well as increases in auto bodily injury loss severity. Taking these factors into account, the company expects its fourth quarter combined ratio to be in the range of 97.4% to 97.8%. This would bring its full year combined ratio to approximately 96.2%, and 91.0%, excluding catastrophes.
The Hanover Insurance Group, Inc. is the holding company, which is engaged in the business of property and casualty insurance products and services. The Company operates through three segments: Core Commercial, Specialty, Personal Lines and Other. Core Commercial product suite provides agents and customers with products designed for small and mid-sized businesses. Core Commercial segment coverages include commercial multiple peril, workersâ compensation, and other core commercial. Specialty segment offers a comprehensive suite of products focused predominately on small to mid-sized businesses. This includes various specialized products that are organized into four distinct divisions: Professional and Executive Lines, Specialty Property & Casualty, Marine, and Surety and Other. Personal Lines segment coverages include Personal automobile, and Homeowners and other personal lines. The Other segment primarily includes Opus, which provides investment advisory services to affiliates.
THE HANOVER INSURANCE GROUP, INC. 
