Hanover reports Q3 2024 results

The Hanover hosted its Q3 2024 earnings call on October 31. Key highlights:

• Hanover’s profitability in Q3 resulted from strategic initiatives implemented over the past 18 months, including enhanced pricing, insurance-to-value adjustments, refined terms and conditions, and targeted underwriting actions.
• Personal Lines achieved target returns for auto on both a written and earned rate basis, while home hit its target on a written basis. Premium growth reached 6.8%, driven by pricing adjustments, although policies in force continued to decline as expected.

• Small Commercial experienced 6% growth, boosted by Hanover’s TAP Sales platform and expanded sales force. The upcoming integration of workers’ compensation in TAP Sales is anticipated to provide further growth opportunities. “We are particularly excited about the integration of workers’ compensation in TAP Sales next year, which we believe will further enhance our opportunities.”
• New platforms in E&S, Marine, and surety have been introduced to improve underwriting, response times, and market visibility, with investments in field talent to capitalize on business opportunities. “In E&S, for example, we have introduced a new policy quote and issue platform to enhance underwriting, response times and operating efficiencies. In Marine, we have enhanced and further strengthened our team and are deploying new technology and processes to improve ease of use. In surety, we are investing in an additional field talent and ensuring strong market visibility to stay connected with our customers and agents and to seize new business opportunities.”
• Hanover’s limited exposure to Florida’s wind risk and exclusion of Personal Lines in the state are expected to keep October’s Hurricane Milton losses minimal.
• Hanover anticipates moderating PIF shrinkage next quarter, with modest positive PIF growth throughout 2025 across all 20 states.