Hanover Insurance Group (THG) has reported 42.20 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $45.20 million in the quarter, compared with $78.20 million for the same period last year.
Revenue during the quarter went up marginally by 2.71 percent to $1,260.90 million from $1,227.60 million in the previous year period. Net premium earned for the quarter went up marginally by 2.61 percent or $30 million to $1,181.30 million.
Total expenses move upBenefits, losses and expenses for the quarter were at $1,201.90 million, or 101.74 percent of premium earned from $1,119.50 million or 97.24 percent of premium earned in the last year period. Operating income for the quarter was $59 million, compared with $108.10 million in the previous year period. Net investment income was at $71.10 million for the quarter, up 4.10 percent or $2.80 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved up marginally by 1.54 percent or $0.10 million to $6.60 million. The company has recorded a gain on investments of $1.90 million in the quarter compared with a gain of $1.50 million for the previous year period.
"We are pleased with our solid operating earnings in the face of higher-than-expected catastrophe losses in our domestic business, said Joseph M. Zubretsky, president and chief executive officer at The Hanover. "Underlying trends were stable across each of our business segments and in line with our expectations, which reflect our disciplined approach to pricing and risk selection. We are also pleased with our responsible top-line growth of 3.7%, driven by continued strong momentum in Personal Lines, pricing and retention strategies in Commercial Lines, and thoughtful management of our international specialty business. Given our position with our agency partners and sustained strong results, we are well prepared to deliver on the 2017 business performance we presented at our Investor Day in February, subject to the uncertainty of catastrophe losses."
Liabilities outpace assets growthTotal assets increased 3.30 percent or $463.10 million to $14,490.80 million on Mar. 31, 2017. On the other hand, total liabilities were at $11,577.30 million as on Mar. 31, 2017, up 4.58 percent or $506.60 million from year-ago. Return on assets stood at 0.39 percent in the quarter, down 0.27 from 0.66 percent in the last year period. At the same time, return on equity was at 1.55 percent in the quarter, down 1.09 from 2.64 percent in the last year period.
Investments move upInvestments stood at $8,530.10 million as on Mar. 31, 2017, up 6.49 percent or $520.20 million from year-ago. Meanwhile, yield on investments went down 2 basis points to 0.83 percent in the quarter. Net premiums and other receivables increased 5.19 percent or $75.10 million over the year to $1,522.20 million on Mar. 31, 2017. Meanwhile, reinsurance recoverables were almost stable over the year to $2,726.10 million on Mar. 31, 2017.
Total debt was at $786.60 million as on Mar. 31, 2017, down 2.09 percent or $16.80 million from year-ago. Shareholders equity stood at $2,913.50 million as on Mar. 31, 2017, down 1.47 percent or $43.50 million from year-ago. As a result, debt to equity ratio was almost stable at 0.27 percent in the quarter, when compared with the last year period.
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