The Hanover Insurance Group, Inc. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Impairment Charges for the Fourth Quarter of 2017; Provides Financial Guidance for Fiscal 2018
January 31, 2018 at 04:15 pm
Share
The Hanover Insurance Group, Inc. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported total revenues of $1,332.2 million against $1,255.0 million a year ago. Income from continuing operations before income taxes was $122.6 million against loss of $32.8 million a year ago. Income from continuing operations was $67.1 million against loss of $12.2 million a year ago. Net income was $51.5 million or $1.20 per diluted share against loss of $13.5 million or $0.32 per diluted share a year ago. Operating income was $86.0 million against loss of $19.7 million a year ago. Net investment income was $78.1 million against $74.2 million a year ago.
For the year, the company reported total revenues of $5,184.4 million against $4,945.8 million a year ago. Income from continuing operations before income taxes was $301.5 million against $192.3 million a year ago. Income from continuing operations was $203.0 million against $156.1 million a year ago. Net income was $186.2 million or $4.33 per diluted share against $155.1 million or $3.59 per diluted share a year ago. Book value per share as on December 31, 2017 was $70.59 against $67.40 a year ago. Operating income was $203.8 million against $184.4 million a year ago. Net investment income was $298.1 million against $279.4 million a year ago. Operating income before taxes and interest expenses was $336.3 million.
For the fourth quarter of 2017, the company reported impairment charges of $1.4 million.
For fiscal year 2018, the company anticipates overall net written premium growth of mid-single digits. NII should be relatively flat as increased cash flows are offset by non-recurrence of some one-time benefits in 2017, such as higher investment partnership returns. Domestic expense ratio should improve by 0.5 point from 2017, while Chaucer's expense ratio will return to a more normal level of approximately 45%. Combined ratio excluding catastrophes should be 90% to 91%, plus a catastrophe load of approximately 5% for the year. Company expects an effective tax rate of 21%.
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. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Impairment Charges for the Fourth Quarter of 2017; Provides Financial Guidance for Fiscal 2018
THE HANOVER INSURANCE GROUP, INC. 
