The Hanover Insurance Group, Inc (THG) has reported 12.90 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $88.40 million in the quarter, compared with $78.30 million for the same period last year. Revenue during the quarter went up marginally by 0.62 percent to $1,241.20 million from $1,233.50 million in the previous year period. Net premium earned for the quarter went up marginally by 0.94 percent or $10.80 million to $1,160.90 million.
Total expenses come down marginally
Benefits, losses and expenses for the quarter were at $1,117.10 million, or 96.23 percent of premium earned from $1,123.10 million or 97.65 percent of premium earned in the last year period. Operating income for the quarter was $124.10 million, compared with $110.40 million in the previous year period. Net investment income was at $67.80 million for the quarter, down 0.73 percent or $0.50 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 16.90 percent or $1.20 million to $8.30 million. The company has recorded a gain on investments of $4.20 million in the quarter compared with a gain of $8 million for the previous year period.
“We are pleased with our performance in the quarter, generating operating earnings per share of $1.83 and a return on equity of 11.6%,” said Joseph M. Zubretsky, president and chief executive officer at The Hanover. “Our results reflect a modest level of catastrophe losses, stable accident year loss ratios across all businesses, healthy and controlled net written premium growth and continuing pricing increases in domestic lines. While challenges remain, we are pleased with the execution of our business strategies, growth momentum and risk selection in the current difficult market, and excited about the strategic prospects that lie ahead.”
Assets outpace liabilities growth
Total assets increased 2.30 percent or $322.70 million to $14,363.70 million on Sep. 30, 2016. On the other hand, total liabilities were at $11,318 million as on Sep. 30, 2016, up 1.38 percent or $154.50 million from year-ago. Return on assets stood at 0.70 percent in the quarter, up 0.05 from 0.66 percent in the last year period. At the same time, return on equity was at 2.90 percent in the quarter, up 0.18 from 2.72 percent in the last year period.
Investments move up
Investments stood at $8,496.10 million as on Sep. 30, 2016, up 6.59 percent or $525.60 million from year-ago. Meanwhile, yield on investments went down 6 basis points to 0.80 percent in the quarter. Net premiums and other receivables increased 2.66 percent or $39.80 million over the year to $1,534.90 million on Sep. 30, 2016. Meanwhile, reinsurance recoverables moved down 2.79 percent or $76.30 million over the year to $2,655.10 million on Sep. 30, 2016.
Total debt was at $797.90 million as on Sep. 30, 2016, down 1.83 percent or $14.90 million from year-ago. Shareholders equity stood at $3,045.70 million as on Sep. 30, 2016, up 5.85 percent or $168.20 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.26 percent in the quarter from 0.28 percent in the last year period.
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