The Hanover reports sharp net income decrease in Q2 of 2016 due to cat losses
The Hanover Insurance Group has said that its net income for the second quarter of 2016 was $2 million, a sharp fall from the $120.7 million it reported for the second quarter of 2015.
The company saw its combined ratio increase from 95.7 percent in the second quarter of 2015 to 97.3 percent in the same period of 2016.
The Hanover’s net written premiums (NWP) totalled $1.2 billion for the second quarter of this year, down slightly on the $1.3 billion it reported in the second quarter of 2015.
However, the most affected sector of the company was subsidiary Chaucer which reported a combined ratio of 103.2 percent. In 2015 it reported a combined ratio of 90.6 percent for the same period.
Chaucer’s NWP was $246.4 million for the second quarter of 2016, down on the $346 million NWP figure it made in the second quarter of 2015.
Chaucer’s results were impacted by catastrophe and large losses, as well as movement in foreign exchange rates.
"The underlying fundamentals of the business remain very strong despite some specific, but isolated operating challenges in the U.S. and global large loss volatility at Chaucer," said Joseph Zubretsky, president and chief executive officer at The Hanover.
"More broadly, The Hanover has an innovative underwriting platform, strong distribution plant and top-notch talent domestically and globally, which we will leverage for margin expansion, growth, and superior value creation."
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk