The Hanover Insurance Group Inc.
03/28/2022 | Press release | Distributed by Public on 03/28/2022 06:16
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Title Page
| PERIOD | Product Qualifier | Summary Centers | VERSION | Consolidated BU Rollup | All Products |
Select Historical Financial Information 2019 - 2021
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| THE HANOVER INSURANCE GROUP | |
| SELECT HISTORICAL FINANCIAL INFORMATION | |
| TABLE OF CONTENTS | |
| Segment Descriptions | 1 |
| Pre-tax Operating Results and Related Metrics | |
| Consolidated Eight Quarter Trending | 2 |
| Core Commercial | 3-4 |
| Specialty | 5-6 |
| Personal Lines | 7-10 |
| Other Information | |
| Non-GAAP Financial Measures | 11 |
| Premium Related Metric Definitions | 12 |
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| THE HANOVER INSURANCE GROUP | ||
| BASIS OF PRESENTATION | ||
| SEGMENT DESCRIPTIONS | ||
| CORE COMMERCIAL | ||
| Sub-segment | Customer and business type | Primary lines of business |
| Small Commercial | Coverage to small businesses with annual premiums of $50,000 or less. Products are tailored to specific industry segments as needed. | l Business owners' policy/commercial multiple peril l Commercial automobile l Workers' compensation l Other (general liability, commercial umbrella, monoline property) |
| Middle Market | Coverage to mid-sized businesses with annual premiums starting at $50,000, focusing on those between $50,000 and $250,000. Products are tailored to certain specific industry segments, including technology, manufacturing, human services, retail, real estate, among others. | l Commercial multiple peril l Commercial automobile l Workers' compensation l Other (general liability, commercial umbrella, monoline property) |
| SPECIALTY | ||
| Sub-segment | Customer and business type | Primary lines of business |
| Professional and Executive Lines | Coverage to small to mid-sized non-public companies, including lawyer, engineer, accountant, and various other professional and advisory firms including healthcare; provide protection for directors, officers and employees against actual or alleged errors, negligence or bad faith, and employment practices. | l Professional liability l Management liability l Fidelity and crime l Other property and liability lines for healthcare firms |
| Specialty Property & Casualty | Program business - coverage to markets with specialty or risk management needs related to groups of similar businesses; Hanover Specialty Industrial (HSI) - coverage to small and medium chemical, paint, solvent and other manufacturers and distributors; Excess & Surplus - non-admitted general liability and property coverage to risks outside of the appetite of standard commercial lines; Specialty General Liability - admitted coverage for higher-hazard liability risks | l Commercial multiple peril l Commercial automobile l Workers' compensation l Other (general liability, commercial umbrella, monoline property) |
| Marine | Includes coverage for inland and ocean marine, and insures against physical losses to property, such as contractor's equipment, builders' risk and goods in transit. Also covers jewelers block, fine art and other valuables. | l Inland/ocean marine l Ancillary lines of business written through marine agents |
| Surety and Other | Provides coverage for construction and other firms, as well as sole proprietors in the event of claims for non-performance or non-payment, and commercial surety coverage related to fiduciary or regulatory obligations. | l Bond |
| PERSONAL LINES | ||
| Sub-segment | Customer and business type | Primary lines of business |
| Personal Automobile | Includes coverage for individuals against losses incurred from personal bodily injury, bodily injury to third parties, property damage to an insured's vehicle, and property damage to other vehicles and other property. | l Personal automobile |
| Homeowners and Other | Includes coverage for individuals for losses to their residences and personal property, such as those caused by fire, wind, hail, water damage (excluding flood), theft and vandalism, and against third-party liability claims. | l Homeowners l Personal umbrella l Inland marine (jewelry, art, etc.) l Other (fire, personal watercraft, other miscellaneous) |
| OTHER | ||
| Included in Other are Opus, which provides investment advisory services to affiliates and also manages assets for unaffiliated institutions such as insurance companies, retirement plans and foundations; earnings on holding company assets; holding company and other expenses; and our run-off voluntary assumed property and casualty pools business. | ||
| 100000 |
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| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| CONSOLIDATED | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Gross premiums written | $ | 1,288.9 | $ | 1,224.0 | $ | 1,406.1 | $ | 1,235.5 | $ | 1,337.6 | $ | 1,342.8 | $ | 1,493.2 | $ | 1,170.7 | $ | 5,118.5 | $ | 5,154.5 | $ | 5,344.3 |
| Net premiums written | $ | 1,136.9 | $ | 1,081.0 | $ | 1,268.5 | $ | 1,112.1 | $ | 1,196.1 | $ | 1,207.2 | $ | 1,375.2 | $ | 1,214.9 | $ | 4,581.7 | $ | 4,598.5 | $ | 4,993.4 |
| Net premiums earned | $ | 1,141.4 | $ | 1,096.6 | $ | 1,135.4 | $ | 1,154.0 | $ | 1,161.8 | $ | 1,179.8 | $ | 1,186.0 | $ | 1,242.6 | $ | 4,474.5 | $ | 4,527.4 | $ | 4,770.2 |
| Losses and LAE: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 692.3 | 569.1 | 645.7 | 666.2 | 656.2 | 680.9 | 711.4 | 739.2 | 2,696.2 | 2,573.3 | 2,787.7 | |||||||||||
| Prior year favorable development, excluding catastrophe losses | (2.0) | (4.9) | (2.6) | (6.0) | (8.2) | (12.6) | (20.9) | (14.4) | (0.9) | (15.5) | (56.1) | |||||||||||
| Current year catastrophe losses | 37.9 | 154.8 | 75.5 | 35.6 | 133.3 | 91.8 | 153.5 | 39.0 | 196.8 | 303.8 | 417.6 | |||||||||||
| Prior year favorable catastrophe development | - 0 | (7.0) | (9.6) | (0.5) | - 0 | (15.0) | - 0 | - 0 | (27.5) | (17.1) | (15.0) | |||||||||||
| Total losses and LAE | 728.2 | 712.0 | 709.0 | 695.3 | 781.3 | 745.1 | 844.0 | 763.8 | 2,864.6 | 2,844.5 | 3,134.2 | |||||||||||
| Amortization of deferred acquisition costs and other underwriting expenses | 362.0 | 346.3 | 365.0 | 374.7 | 371.2 | 371.7 | 372.9 | 394.2 | 1,430.6 | 1,448.0 | 1,510.0 | |||||||||||
| GAAP underwriting profit (loss) | 51.2 | 38.3 | 61.4 | 84.0 | 9.3 | 63.0 | (30.9) | 84.6 | 179.3 | 234.9 | 126.0 | |||||||||||
| Net investment income | 69.6 | 57.7 | 67.6 | 70.2 | 76.8 | 75.6 | 78.8 | 79.5 | 281.3 | 265.1 | 310.7 | |||||||||||
| Other income | 6.7 | 6.1 | 8.1 | 6.4 | 6.0 | 5.8 | 6.1 | 6.0 | 25.5 | 27.3 | 23.9 | |||||||||||
| Other operating expenses | (10.4) | (13.2) | (8.7) | (10.3) | (7.0) | (7.1) | (7.0) | (7.2) | (32.5) | (42.6) | (28.3) | |||||||||||
| Operating income before income taxes | 117.1 | $ | 88.9 | $ | 128.4 | $ | 150.3 | $ | 85.1 | $ | 137.3 | $ | 47.0 | $ | 162.9 | $ | 453.6 | $ | 484.7 | $ | 432.3 | |
| Loss and LAE ratio: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 60.7 % | 51.8 % | 56.8 % | 57.8 % | 56.4 % | 57.8 % | 60.1 % | 59.6 % | 60.2 % | 56.8 % | 58.5 % | |||||||||||
| Prior year favorable development, excluding catastrophe losses | (0.2)% | (0.4)% | (0.2)% | (0.5)% | (0.7)% | (1.1)% | (1.8)% | (1.2)% | - | (0.3)% | (1.2)% | |||||||||||
| Current year catastrophe losses | 3.3 % | 14.1 % | 6.6 % | 3.0 % | 11.5 % | 7.8 % | 12.9 % | 3.1 % | 4.4 % | 6.7 % | 8.7 % | |||||||||||
| Prior year favorable catastrophe development | - | (0.6)% | (0.8)% | - | - | (1.3)% | - | - | (0.6)% | (0.4)% | (0.3)% | |||||||||||
| Total loss and LAE ratio | 63.8 % | 64.9 % | 62.4 % | 60.3 % | 67.2 % | 63.2 % | 71.2 % | 61.5 % | 64.0 % | 62.8 % | 65.7 % | |||||||||||
| Expense ratio | 31.4 % | 31.3 % | 31.8 % | 32.1 % | 31.6 % | 31.2 % | 31.1 % | 31.4 % | 31.6 % | 31.6 % | 31.3 % | |||||||||||
| Combined ratio | 95.2 % | 96.2 % | 94.2 % | 92.4 % | 98.8 % | 94.4 % | 102.3 % | 92.9 % | 95.6 % | 94.4 % | 97.0 % | |||||||||||
| Combined ratio, excluding catastrophe losses | 91.9 % | 82.7 % | 88.4 % | 89.4 % | 87.3 % | 87.9 % | 89.4 % | 89.8 % | 91.8 % | 88.1 % | 88.6 % | |||||||||||
| Combined ratio, excluding catastrophe losses and prior year development | 92.1 % | 83.1 % | 88.6 % | 89.9 % | 88.0 % | 89.0 % | 91.2 % | 91.0 % | 91.8 % | 88.4 % | 89.8 % |
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| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| CORE COMMERCIAL | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Gross premiums written | $ | 517.3 | $ | 431.4 | $ | 547.4 | $ | 453.3 | $ | 539.9 | $ | 473.6 | $ | 601.1 | $ | 484.9 | $ | 1,928.5 | $ | 1,949.4 | $ | 2,099.5 |
| Net premiums written | $ | 460.6 | $ | 378.6 | $ | 486.4 | $ | 400.6 | $ | 480.6 | $ | 421.7 | $ | 534.6 | $ | 427.9 | $ | 1,727.0 | $ | 1,726.2 | $ | 1,864.8 |
| Net premiums earned | $ | 431.0 | $ | 417.4 | $ | 420.1 | $ | 435.2 | $ | 435.2 | $ | 447.6 | $ | 459.7 | $ | 468.4 | $ | 1,689.9 | $ | 1,703.7 | $ | 1,810.9 |
| Losses and LAE: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 275.8 | 218.5 | 250.4 | 254.8 | 250.6 | 258.2 | 281.7 | 271.9 | 1,001.1 | 999.5 | 1,062.4 | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | 0.1 | (2.8) | (3.6) | (6.3) | (2.7) | (4.6) | (3.3) | (7.2) | (37.8) | (12.6) | (17.8) | |||||||||||
| Current year catastrophe losses | 20.2 | 57.9 | 22.0 | 4.2 | 94.5 | 22.5 | 57.3 | 10.9 | 80.8 | 104.3 | 185.2 | |||||||||||
| Prior year favorable catastrophe development | (2.9) | (4.7) | (7.0) | (0.1) | (0.1) | (8.7) | (0.9) | - 0 | (12.2) | (14.7) | (9.7) | |||||||||||
| Total losses and LAE | 293.2 | 268.9 | 261.8 | 252.6 | 342.3 | 267.4 | 334.8 | 275.6 | 1,031.9 | 1,076.5 | 1,220.1 | |||||||||||
| Amortization of deferred acquisition costs and other underwriting expenses | 141.5 | 140.2 | 141.9 | 146.1 | 144.2 | 145.1 | 150.6 | 158.4 | 565.0 | 569.7 | 598.3 | |||||||||||
| GAAP underwriting profit (loss) | (3.7) | 8.3 | 16.4 | 36.5 | (51.3) | 35.1 | (25.7) | 34.4 | 93.0 | 57.5 | (7.5) | |||||||||||
| Net investment income | 32.9 | 26.8 | 31.5 | 33.0 | 36.9 | 35.0 | 37.0 | 37.6 | 124.0 | 124.2 | 146.5 | |||||||||||
| Other income | 1.1 | 0.9 | 1.3 | 1.0 | 0.8 | 0.8 | 0.9 | 0.8 | 4.6 | 4.3 | 3.3 | |||||||||||
| Other operating expenses | (2.4) | (3.8) | (1.7) | - 0 | (1.2) | (1.0) | (1.2) | (0.9) | (5.2) | (7.9) | (4.3) | |||||||||||
| Operating income (loss) before income taxes | $ | 27.9 | $ | 32.2 | $ | 47.5 | $ | 70.5 | $ | (14.8) | $ | 69.9 | $ | 11.0 | $ | 71.9 | $ | 216.4 | $ | 178.1 | $ | 138.0 |
| Loss and LAE ratio: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 64.0 % | 52.4 % | 59.6 % | 58.5 % | 57.6 % | 57.6 % | 61.2 % | 58.0 % | 59.2 % | 58.6 % | 58.7 % | |||||||||||
| Prior year favorable development, excluding catastrophe losses | - | (0.7)% | (0.9)% | (1.4)% | (0.6)% | (1.0)% | (0.7)% | (1.5)% | (2.2)% | (0.7)% | (1.0)% | |||||||||||
| Current year catastrophe losses | 4.7 % | 13.8 % | 5.3 % | 0.9 % | 21.7 % | 5.0 % | 12.5 % | 2.3 % | 4.8 % | 6.2 % | 10.2 % | |||||||||||
| Prior year favorable catastrophe development | (0.7)% | (1.1)% | (1.7)% | - | - | (1.9)% | (0.2)% | - | (0.7)% | (0.9)% | (0.5)% | |||||||||||
| Total loss and LAE ratio | 68.0 % | 64.4 % | 62.3 % | 58.0 % | 78.7 % | 59.7 % | 72.8 % | 58.8 % | 61.1 % | 63.2 % | 67.4 % | |||||||||||
| Expense ratio | 32.6 % | 33.4 % | 33.5 % | 33.4 % | 33.0 % | 32.2 % | 32.6 % | 33.6 % | 33.2 % | 33.2 % | 32.9 % | |||||||||||
| Combined ratio | 100.6 % | 97.8 % | 95.8 % | 91.4 % | 111.7 % | 91.9 % | 105.4 % | 92.4 % | 94.3 % | 96.4 % | 100.3 % | |||||||||||
| Combined ratio, excluding catastrophe losses | 96.6 % | 85.1 % | 92.2 % | 90.5 % | 90.0 % | 88.8 % | 93.1 % | 90.1 % | 90.2 % | 91.1 % | 90.6 % | |||||||||||
| Combined ratio, excluding catastrophe losses and prior year development | 96.6 % | 85.8 % | 93.1 % | 91.9 % | 90.6 % | 89.8 % | 93.8 % | 91.6 % | 92.4 % | 91.8 % | 91.6 % |
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| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| PREMIUMS WRITTEN AND RELATED METRICS | ||||||||||||||||||||||
| CORE COMMERCIAL | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Written Premiums | ||||||||||||||||||||||
| Gross | $ | 517.3 | $ | 431.4 | $ | 547.4 | $ | 453.3 | $ | 539.9 | $ | 473.6 | $ | 601.1 | $ | 484.9 | $ | 1,928.5 | $ | 1,949.4 | $ | 2,099.5 |
| Ceded | (56.7) | (52.8) | (61.0) | (52.7) | (59.3) | (51.9) | (66.5) | (57.0) | (201.5) | (223.2) | (234.7) | |||||||||||
| Net | $ | 460.6 | $ | 378.6 | $ | 486.4 | $ | 400.6 | $ | 480.6 | $ | 421.7 | $ | 534.6 | $ | 427.9 | $ | 1,727.0 | $ | 1,726.2 | $ | 1,864.8 |
| Growth | 5.0 % | (5.0)% | 0.1 % | (0.9)% | 4.3 % | 11.4 % | 9.9 % | 6.8 % | 3.8 % | - | 8.0 % | |||||||||||
| ` | ||||||||||||||||||||||
| Net premiums written by segment | ||||||||||||||||||||||
| Small Commercial | $ | 237.2 | $ | 220.0 | $ | 233.1 | $ | 222.3 | $ | 257.1 | $ | 246.8 | $ | 256.3 | $ | 243.2 | $ | 872.4 | $ | 912.6 | $ | 1,003.4 |
| Middle Market | 223.4 | 158.6 | 253.3 | 178.3 | 223.5 | 174.9 | 278.3 | 184.7 | 854.6 | 813.6 | 861.4 | |||||||||||
| Total | $ | 460.6 | $ | 378.6 | $ | 486.4 | $ | 400.6 | $ | 480.6 | $ | 421.7 | $ | 534.6 | $ | 427.9 | $ | 1,727.0 | $ | 1,726.2 | $ | 1,864.8 |
| Net premiums written by line of business | ||||||||||||||||||||||
| Commercial Multiple Peril | $ | 230.3 | $ | 199.6 | $ | 269.5 | $ | 204.7 | $ | 237.2 | $ | 219.0 | $ | 284.2 | $ | 217.3 | $ | 893.5 | $ | 904.1 | $ | 957.7 |
| Commercial Automobile | 87.9 | 76.0 | 87.0 | 78.0 | 90.0 | 80.6 | 92.9 | 77.3 | 329.6 | 328.9 | 340.8 | |||||||||||
| Workers' Compensation | 95.5 | 64.0 | 77.8 | 78.2 | 95.7 | 76.6 | 92.7 | 84.3 | 329.6 | 315.5 | 349.3 | |||||||||||
| Other Core Commercial | 46.9 | 39.0 | 52.1 | 39.7 | 57.7 | 45.5 | 64.8 | 49.0 | 174.3 | 177.7 | 217.0 | |||||||||||
| Total | $ | 460.6 | $ | 378.6 | $ | 486.4 | $ | 400.6 | $ | 480.6 | $ | 421.7 | $ | 534.6 | $ | 427.9 | $ | 1,727.0 | $ | 1,726.2 | $ | 1,864.8 |
| Related Metrics | ||||||||||||||||||||||
| Premium Retention | 85.3% | 86.9% | 87.1% | 85.3% | 87.3% | 84.9% | 87.8% | 86.7% | 83.4% | 86.2% | 86.7% | |||||||||||
| Renewal Price Change | 6.0% | 1.2% | 4.9% | 6.7% | 6.3% | 9.3% | 9.4% | 9.5% | 6.2% | 4.7% | 8.6% |
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| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| SPECIALTY | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Gross premiums written | $ | 313.2 | $ | 295.0 | $ | 337.3 | $ | 306.1 | $ | 344.1 | $ | 332.1 | $ | 327.2 | $ | 346.0 | $ | 1,198.8 | $ | 1,251.6 | $ | 1,349.4 |
| Net premiums written | $ | 247.0 | $ | 236.3 | $ | 274.1 | $ | 249.5 | $ | 276.8 | $ | 265.1 | $ | 292.2 | $ | 284.8 | $ | 980.2 | $ | 1,006.9 | $ | 1,118.9 |
| Net premiums earned | $ | 244.9 | $ | 241.2 | $ | 245.0 | $ | 248.5 | $ | 257.7 | $ | 255.8 | $ | 238.9 | $ | 277.5 | $ | 964.3 | $ | 979.6 | $ | 1,029.9 |
| Losses and LAE: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 137.9 | 131.3 | 134.7 | 130.7 | 138.3 | 145.7 | 125.8 | 145.7 | 554.0 | 534.6 | 555.5 | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | (3.8) | (2.3) | (0.3) | - 0 | (0.6) | (3.3) | (8.1) | (4.2) | 9.1 | (6.4) | (16.2) | |||||||||||
| Current year catastrophe losses | 6.9 | 12.9 | 20.5 | 6.4 | 24.3 | 7.7 | 17.5 | 4.6 | 27.0 | 46.7 | 54.1 | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | (0.4) | (1.3) | (1.9) | (0.5) | 0.1 | (3.3) | 0.9 | - 0 | (12.4) | (4.1) | (2.3) | |||||||||||
| Total losses and LAE | 140.6 | 140.6 | 153.0 | 136.6 | 162.1 | 146.8 | 136.1 | 146.1 | 577.7 | 570.8 | 591.1 | |||||||||||
| Amortization of deferred acquisition costs and other underwriting expenses | 90.2 | 87.6 | 89.7 | 92.5 | 93.6 | 90.3 | 87.3 | 98.2 | 358.1 | 360.0 | 369.4 | |||||||||||
| GAAP underwriting profit | 14.1 | 13.0 | 2.3 | 19.4 | 2.0 | 18.7 | 15.5 | 33.2 | 28.5 | 48.8 | 69.4 | |||||||||||
| Net investment income | 13.5 | 11.1 | 12.9 | 13.6 | 14.9 | 16.0 | 15.9 | 16.1 | 56.1 | 51.1 | 62.9 | |||||||||||
| Other income | 1.2 | 1.3 | 1.5 | 1.4 | 1.6 | 1.7 | 1.6 | 1.5 | 4.6 | 5.4 | 6.4 | |||||||||||
| Other operating expenses | (2.1) | (2.3) | (1.9) | (1.7) | (1.5) | (1.9) | (1.6) | (1.8) | (5.5) | (8.0) | (6.8) | |||||||||||
| Operating income before income taxes | $ | 26.7 | $ | 23.1 | $ | 14.8 | $ | 32.7 | $ | 17.0 | $ | 34.5 | $ | 31.4 | $ | 49.0 | $ | 83.7 | $ | 97.3 | $ | 131.9 |
| Loss and LAE ratio: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 56.3 % | 54.5 % | 54.9 % | 52.6 % | 53.6 % | 57.0 % | 52.7 % | 52.4 % | 57.5 % | 54.7 % | 54.0 % | |||||||||||
| Prior year favorable development, excluding catastrophe losses | (1.6)% | (1.0)% | (0.1)% | - | (0.2)% | (1.3)% | (3.4)% | (1.5)% | 0.9 % | (0.7)% | (1.6)% | |||||||||||
| Current year catastrophe losses | 2.9 % | 5.3 % | 8.4 % | 2.6 % | 9.5 % | 3.0 % | 7.3 % | 1.7 % | 2.8 % | 4.7 % | 5.2 % | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | (0.2)% | (0.5)% | (0.8)% | (0.2)% | - | (1.3)% | 0.4 % | - | (1.3)% | (0.4)% | (0.2)% | |||||||||||
| Total loss and LAE ratio | 57.4 % | 58.3 % | 62.4 % | 55.0 % | 62.9 % | 57.4 % | 57.0 % | 52.6 % | 59.9 % | 58.3 % | 57.4 % | |||||||||||
| Expense ratio | 36.6 % | 36.1 % | 36.3 % | 36.9 % | 35.9 % | 34.9 % | 36.2 % | 35.1 % | 37.0 % | 36.5 % | 35.5 % | |||||||||||
| Combined ratio | 94.0 % | 94.4 % | 98.7 % | 91.9 % | 98.8 % | 92.3 % | 93.2 % | 87.7 % | 96.9 % | 94.8 % | 92.9 % | |||||||||||
| Combined ratio, excluding catastrophe losses | 91.3 % | 89.6 % | 91.1 % | 89.5 % | 89.3 % | 90.6 % | 85.5 % | 86.0 % | 95.4 % | 90.5 % | 87.9 % | |||||||||||
| Combined ratio, excluding catastrophe losses and prior year development | 92.9 % | 90.6 % | 91.2 % | 89.5 % | 89.5 % | 91.9 % | 88.9 % | 87.5 % | 94.5 % | 91.2 % | 89.5 % |
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| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| PREMIUMS WRITTEN AND RELATED METRICS | ||||||||||||||||||||||
| SPECIALTY | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Written Premiums | ||||||||||||||||||||||
| Gross | $ | 313.2 | $ | 295.0 | $ | 337.3 | $ | 306.1 | $ | 344.1 | $ | 332.1 | $ | 327.2 | $ | 346.0 | $ | 1,198.8 | $ | 1,251.6 | $ | 1,349.4 |
| Ceded | (66.2) | (58.7) | (63.2) | (56.6) | (67.3) | (67.0) | (35.0) | (61.2) | (218.6) | (244.7) | (230.5) | |||||||||||
| Net | $ | 247.0 | $ | 236.3 | $ | 274.1 | $ | 249.5 | $ | 276.8 | $ | 265.1 | $ | 292.2 | $ | 284.8 | $ | 980.2 | $ | 1,006.9 | $ | 1,118.9 |
| Growth | 3.4 % | (4.1)% | 5.3 % | 6.3 % | 12.1 % | 12.2 % | 6.6 % | 14.1 % | 3.5 % | 2.7 % | 11.1 % | |||||||||||
| Net premiums written by segment | ||||||||||||||||||||||
| Professional and Executive Lines | $ | 86.0 | $ | 75.3 | $ | 88.5 | $ | 81.0 | $ | 94.4 | $ | 81.3 | $ | 98.0 | $ | 93.3 | $ | 306.4 | $ | 330.8 | $ | 367.0 |
| Specialty Property & Casualty | 73.1 | 72.6 | 84.1 | 80.9 | 79.3 | 79.8 | 87.1 | 101.4 | 319.6 | 310.7 | 347.6 | |||||||||||
| Marine | 72.7 | 72.8 | 85.2 | 73.6 | 91.1 | 86.6 | 90.4 | 77.1 | 288.6 | 304.3 | 345.2 | |||||||||||
| Surety and Other | 15.2 | 15.6 | 16.3 | 14.0 | 12.0 | 17.4 | 16.7 | 13.0 | 65.6 | 61.1 | 59.1 | |||||||||||
| Total | $ | 247.0 | $ | 236.3 | $ | 274.1 | $ | 249.5 | $ | 276.8 | $ | 265.1 | $ | 292.2 | $ | 284.8 | $ | 980.2 | $ | 1,006.9 | $ | 1,118.9 |
| Related Metrics | ||||||||||||||||||||||
| Premium Retention | 82.4% | 83.2% | 84.0% | 84.4% | 82.3% | 83.1% | 85.5% | 84.8% | 80.9% | 83.5% | 83.9% | |||||||||||
| Renewal Price Change | 8.9% | 5.8% | 7.9% | 10.1% | 8.7% | 11.3% | 10.8% | 12.7% | 6.1% | 8.1% | 10.9% |
7
| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| PERSONAL LINES | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Gross premiums written | $ | 458.4 | $ | 497.6 | $ | 521.4 | $ | 476.1 | $ | 453.6 | $ | 537.1 | $ | 564.9 | $ | 339.8 | $ | 1,991.2 | $ | 1,953.5 | $ | 1,895.4 |
| Net premiums written | $ | 429.3 | $ | 466.1 | $ | 508.0 | $ | 462.0 | $ | 438.7 | $ | 520.4 | $ | 548.4 | $ | 502.2 | $ | 1,874.5 | $ | 1,865.4 | $ | 2,009.7 |
| Net premiums earned | $ | 465.5 | $ | 438.0 | $ | 470.3 | $ | 470.3 | $ | 468.9 | $ | 476.4 | $ | 487.4 | $ | 496.7 | $ | 1,820.3 | $ | 1,844.1 | $ | 1,929.4 |
| Losses and LAE: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 278.6 | 219.2 | 260.6 | 280.7 | 267.3 | 277.0 | 303.9 | 321.6 | 1,141.0 | 1,039.1 | 1,169.8 | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | (1.6) | (0.1) | 1.0 | -0 | (5.2) | (5.0) | (9.9) | (3.0) | 26.6 | (0.7) | (23.1) | |||||||||||
| Current year catastrophe losses | 10.8 | 84.0 | 33.0 | 25.0 | 14.5 | 61.6 | 78.7 | 23.5 | 89.0 | 152.8 | 178.3 | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | 3.3 | (1.0) | (0.7) | 0.1 | - 0 | (3.0) | - 0 | - 0 | (2.9) | 1.7 | (3.0) | |||||||||||
| Total losses and LAE | 291.1 | 302.1 | 293.9 | 305.8 | 276.6 | 330.6 | 372.7 | 342.1 | 1,253.7 | 1,192.9 | 1,322.0 | |||||||||||
| Amortization of deferred acquisition costs and other underwriting expenses | 130.3 | 118.5 | 133.4 | 136.1 | 133.4 | 136.3 | 135.0 | 137.6 | 507.5 | 518.3 | 542.3 | |||||||||||
| GAAP underwriting profit (loss) | 44.1 | 17.4 | 43.0 | 28.4 | 58.9 | 9.5 | (20.3) | 17.0 | 59.1 | 132.9 | 65.1 | |||||||||||
| Net investment income | 20.3 | 16.5 | 19.5 | 20.4 | 22.1 | 21.8 | 22.6 | 22.9 | 80.1 | 76.7 | 89.4 | |||||||||||
| Other income | 2.7 | 1.8 | 3.5 | 2.6 | 2.3 | 2.2 | 2.6 | 2.6 | 11.4 | 10.6 | 9.7 | |||||||||||
| Other operating expenses | (2.2) | (3.1) | (1.8) | (0.6) | (1.5) | (1.3) | (1.3) | (1.6) | (5.7) | (7.7) | (5.7) | |||||||||||
| Operating income before income taxes | $ | 64.9 | $ | 32.6 | $ | 64.2 | $ | 50.8 | $ | 81.8 | $ | 32.2 | $ | 3.6 | $ | 40.9 | 144.9 | 212.5 | $ | 158.5 | ||
| Loss and LAE ratio: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 59.8 % | 50.1 % | 55.4 % | 59.7 % | 57.0 % | 58.1 % | 62.4 % | 64.8 % | 62.7 % | 56.3 % | 60.6 % | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | (0.3)% | - | 0.2 % | - | (1.1)% | (1.0)% | (2.0)% | (0.6)% | 1.5 % | - | (1.2)% | |||||||||||
| Current year catastrophe losses | 2.3 % | 19.1 % | 7.0 % | 5.3 % | 3.1 % | 12.9 % | 16.1 % | 4.7 % | 4.9 % | 8.3 % | 9.3 % | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | 0.7 % | (0.2)% | (0.1)% | - | - | (0.6)% | - | - | (0.2)% | 0.1 % | (0.2)% | |||||||||||
| Total loss and LAE ratio | 62.5 % | 69.0 % | 62.5 % | 65.0 % | 59.0 % | 69.4 % | 76.5 % | 68.9 % | 68.9 % | 64.7 % | 68.5 % | |||||||||||
| Expense ratio | 27.5 % | 26.7 % | 27.9 % | 28.4 % | 28.0 % | 28.2 % | 27.3 % | 27.3 % | 27.4 % | 27.7 % | 27.7 % | |||||||||||
| Combined ratio | 90.0 % | 95.7 % | 90.4 % | 93.4 % | 87.0 % | 97.6 % | 103.8 % | 96.2 % | 96.3 % | 92.4 % | 96.2 % | |||||||||||
| Combined ratio, excluding catastrophe losses | 87.0 % | 76.8 % | 83.5 % | 88.1 % | 83.9 % | 85.3 % | 87.7 % | 91.5 % | 91.6 % | 84.0 % | 87.1 % | |||||||||||
| Combined ratio, excluding catastrophe losses and prior year development | 87.3 % | 76.8 % | 83.3 % | 88.1 % | 85.0 % | 86.3 % | 89.7 % | 92.1 % | 90.1 % | 84.0 % | 88.3 % |
8
| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| PERSONAL LINES - AUTOMOBILE | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Net premiums written | $ | 279.4 | $ | 276.8 | $ | 311.6 | $ | 283.7 | $ | 280.7 | $ | 318.6 | $ | 330.8 | $ | 300.3 | $ | 1,186.1 | $ | 1,151.5 | $ | 1,230.4 |
| - 0 | ||||||||||||||||||||||
| Net premiums earned | $ | 293.3 | $ | 263.9 | $ | 295.2 | $ | 293.4 | $ | 291.1 | $ | 295.6 | $ | 301.8 | $ | 305.3 | $ | 1,152.4 | $ | 1,145.8 | $ | 1,193.8 |
| - 0 | ||||||||||||||||||||||
| Losses and LAE: | ||||||||||||||||||||||
| - 0 | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 196.6 | 131.8 | 177.6 | 197.1 | 174.7 | 183.6 | 207.9 | 226.3 | 825.3 | 703.1 | 792.5 | |||||||||||
| - 0 | ||||||||||||||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | 2.9 | - 0 | (0.1) | 1.7 | (5.3) | (3.8) | (10.0) | (4.4) | 22.0 | 4.5 | (23.5) | |||||||||||
| - 0 | ||||||||||||||||||||||
| Current year catastrophe losses | 0.8 | 5.2 | 3.2 | 1.0 | 0.6 | 9.4 | 7.5 | 2.5 | 5.7 | 10.2 | 20.0 | |||||||||||
| - 0 | ||||||||||||||||||||||
| Prior year unfavorable (favorable) catastrophe development | 0.9 | (0.1) | - 0 | (0.1) | - 0 | (0.7) | (0.3) | (0.3) | (0.4) | 0.7 | (1.3) | |||||||||||
| - 0 | ||||||||||||||||||||||
| Total losses and LAE | 201.2 | 136.9 | 180.7 | 199.7 | 170.0 | 188.5 | 205.1 | 224.1 | 852.6 | 718.5 | 787.7 | |||||||||||
| 0 | ||||||||||||||||||||||
| - | ||||||||||||||||||||||
| Loss and LAE ratio: | ||||||||||||||||||||||
| -0 | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 67.0 % | 50.0 % | 60.1 % | 67.2 % | 60.0 % | 62.2 % | 68.9 % | 74.1 % | 71.6 % | 61.3 % | 66.4 % | |||||||||||
| - | ||||||||||||||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | 1.0 % | - | - | 0.6 % | (1.8)% | (1.3)% | (3.3)% | (1.4)% | 1.9 % | 0.4 % | (2.0)% | |||||||||||
| - | ||||||||||||||||||||||
| Current year catastrophe losses | 0.3 % | 1.9 % | 1.1 % | 0.3 % | 0.2 % | 3.1 % | 2.5 % | 0.8 % | 0.5 % | 0.9 % | 1.7 % | |||||||||||
| - | ||||||||||||||||||||||
| Prior year unfavorable (favorable) catastrophe development | 0.3 % | - | - | - | - | (0.2)% | (0.1)% | (0.1)% | - | 0.1 % | (0.1)% | |||||||||||
| Total loss and LAE ratio | 68.6 % | 51.9 % | 61.2 % | 68.1 % | 58.4 % | 63.8 % | 68.0 % | 73.4 % | 74.0 % | 62.7 % | 66.0 % |
9
| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS | ||||||||||||||||||||||
| PERSONAL LINES - HOME & OTHER | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Net premiums written | $ | 149.9 | $ | 189.3 | $ | 196.4 | $ | 178.3 | $ | 158.0 | $ | 201.8 | $ | 217.6 | $ | 201.9 | $ | 688.4 | $ | 713.9 | $ | 779.3 |
| Net premiums earned | $ | 172.2 | $ | 174.1 | $ | 175.1 | $ | 176.9 | $ | 177.8 | $ | 180.8 | $ | 185.6 | $ | 191.4 | $ | 667.9 | $ | 698.3 | $ | 735.6 |
| Losses and LAE: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 82.0 | 87.4 | 83.0 | 83.6 | 92.6 | 93.4 | 96.0 | 95.3 | 315.7 | 336.0 | 377.3 | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | (4.5) | (0.1) | 1.1 | (1.7) | 0.1 | (1.2) | 0.1 | 1.4 | 4.6 | (5.2) | 0.4 | |||||||||||
| Current year catastrophe losses | 10.0 | 78.8 | 29.8 | 24.0 | 13.9 | 52.2 | 71.2 | 21.0 | 83.3 | 142.6 | 158.3 | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | 2.4 | (0.9) | (0.7) | 0.2 | - 0 | (2.3) | 0.3 | 0.3 | (2.5) | 1.0 | (1.7) | |||||||||||
| Total losses and LAE | 89.9 | 165.2 | 113.2 | 106.1 | 106.6 | 142.1 | 167.6 | 118.0 | 401.1 | 474.4 | 534.3 | |||||||||||
| Loss and LAE ratio: | ||||||||||||||||||||||
| Current year, excluding catastrophe losses | 47.6 % | 50.2 % | 47.4 % | 47.3 % | 52.1 % | 51.7 % | 51.6 % | 49.8 % | 47.3 % | 48.1 % | 51.2 % | |||||||||||
| Prior year unfavorable (favorable) development, excluding catastrophe losses | (2.6)% | (0.1)% | 0.6 % | (1.0)% | 0.1 % | (0.7)% | 0.1 % | 0.7 % | 0.7 % | (0.7)% | 0.1 % | |||||||||||
| Current year catastrophe losses | 5.8 % | 45.3 % | 17.0 % | 13.6 % | 7.8 % | 28.9 % | 38.4 % | 11.0 % | 12.5 % | 20.4 % | 21.5 % | |||||||||||
| Prior year unfavorable (favorable) catastrophe development | 1.4 % | (0.5)% | (0.4)% | 0.1 % | - | (1.3)% | 0.2 % | 0.2 % | (0.4)% | 0.1 % | (0.2)% | |||||||||||
| Total loss and LAE ratio | 52.2 % | 94.9 % | 64.6 % | 60.0 % | 60.0 % | 78.6 % | 90.3 % | 61.7 % | 60.1 % | 67.9 % | 72.6 % |
10
| THE HANOVER INSURANCE GROUP | ||||||||||||||||||||||
| PREMIUMS WRITTEN AND RELATED METRICS | ||||||||||||||||||||||
| PERSONAL LINES | ||||||||||||||||||||||
| YTD | YTD | YTD | ||||||||||||||||||||
| (In millions, except percentage data) | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | 2019 | 2020 | 2021 | |||||||||||
| Written Premiums | ||||||||||||||||||||||
| Gross | $ | 458.4 | $ | 497.6 | $ | 521.4 | $ | 476.1 | $ | 453.6 | $ | 537.1 | $ | 564.9 | $ | 339.8 | $ | 1,991.2 | $ | 1,953.5 | $ | 1,895.4 |
| Ceded | (29.1) | (31.5) | (13.4) | (14.1) | (14.9) | (16.7) | (16.5) | 162.4 | (116.7) | (88.1) | 114.3 | |||||||||||
| Net | $ | 429.3 | $ | 466.1 | $ | 508.0 | $ | 462.0 | $ | 438.7 | $ | 520.4 | $ | 548.4 | $ | 502.2 | $ | 1,874.5 | $ | 1,865.4 | $ | 2,009.7 |
| Growth | 2.1% | -5.5% | 2.3% | -0.5% | 2.2% | 11.6% | 8.0% | 8.7% | 5.7% | -0.5% | 7.7% | |||||||||||
| Net premiums written by line of business | ||||||||||||||||||||||
| Personal Automobile | $ | 279.4 | $ | 276.8 | $ | 311.6 | $ | 283.7 | $ | 280.7 | $ | 318.6 | $ | 330.8 | $ | 300.3 | $ | 1,186.1 | $ | 1,151.5 | $ | 1,230.4 |
| Homeowners and Other | 149.9 | 189.3 | 196.4 | 178.3 | 158.0 | 201.8 | 217.6 | 201.9 | 688.4 | 713.9 | 779.3 | |||||||||||
| Total | $ | 429.3 | $ | 466.1 | $ | 508.0 | $ | 462.0 | $ | 438.7 | $ | 520.4 | $ | 548.4 | $ | 502.2 | $ | 1,874.5 | $ | 1,865.4 | $ | 2,009.7 |
| Related Metrics | ||||||||||||||||||||||
| Renewal Price Change | ||||||||||||||||||||||
| Personal Automobile | 6.4 % | 5.7 % | 6.4 % | 6.3 % | 4.2 % | 3.5 % | 1.5 % | 1.2 % | 6.2 % | 6.2 % | 2.6 % | |||||||||||
| Homeowners | 9.0 % | 8.9 % | 8.6 % | 7.9 % | 6.2 % | 5.7 % | 5.9 % | 6.9 % | 8.7 % | 8.6 % | 6.2 % | |||||||||||
| Total (1) | 7.4 % | 6.9 % | 7.2 % | 6.9 % | 4.9 % | 4.4 % | 3.2 % | 3.4 % | 7.1 % | 7.1 % | 4.0 % | |||||||||||
| Policy Retention | ||||||||||||||||||||||
| Personal Automobile | 83.9 % | 86.5 % | 81.0 % | 82.0 % | 84.0 % | 85.8 % | 88.0 % | 88.4 % | 84.8 % | 83.4 % | 86.5 % | |||||||||||
| Homeowners | 84.1 % | 87.3 % | 83.3 % | 83.4 % | 84.2 % | 86.9 % | 89.3 % | 89.6 % | 85.7 % | 84.5 % | 87.6 % | |||||||||||
| Total (1) | 84.0 % | 86.8 % | 82.1 % | 82.7 % | 84.1 % | 86.4 % | 88.6 % | 89.0 % | 85.2 % | 83.9 % | 87.1 % | |||||||||||
| PIF change from prior year period | ||||||||||||||||||||||
| Personal Automobile | 0.7 % | (0.1)% | (1.7)% | (2.8)% | (2.7)% | (0.9)% | 2.7 % | 6.1 % | 1.4 % | (2.8)% | 6.1 % | |||||||||||
| Homeowners | 1.5 % | 0.8 % | (0.2)% | (1.1)% | (0.9)% | 0.6 % | 3.4 % | 6.0 % | 2.1 % | (1.1)% | 6.0 % | |||||||||||
| Total (1) | 1.1 % | 0.4 % | (0.9)% | (1.9)% | (1.8)% | (0.1)% | 3.1 % | 6.1 % | 1.8 % | (1.9)% | 6.1 % | |||||||||||
| (1) Related metrics exclude Other Personal Lines. |
11
| THE HANOVER INSURANCE GROUP |
| NON-GAAP FINANCIAL MEASURES |
| The Hanover uses non-GAAP financial measures as important measures of the Company's operating performance, which we believe provide investors with additional information regarding management's evaluation of our results of operations and financial performance. The Company's non-GAAP measures include operating income before interest expense and income taxes, total operating income after income taxes, and measures of operating income and loss and combined ratios excluding catastrophe losses (catastrophe losses as discussed here and in all other measures include catastrophe loss development) and reserve development. |
| Operating income before interest expense and income taxes is net income (loss), excluding interest expense on debt, income taxes and net realized and unrealized investment gains and losses, which includes changes in the fair value of equity securities still held because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Operating income before interest expense and income taxes also excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, the cumulative effect of accounting changes and certain other items. Operating income before interest expense and income taxes is the sum of the operating income (loss) from: Core Commercial, Specialty, Personal Lines, and Other. The Hanover believes that measures of operating income before interest expense and income taxes provide investors with a valuable measure of the performance of the Company's ongoing businesses because they highlight net income (loss) attributable to the core operations of the business. |
| The Hanover also provides measures of operating income (loss) and loss ratios that exclude the effects of catastrophe losses. A catastrophe is a severe loss, resulting from natural or manmade events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, severe winter weather, fire, explosions and terrorism. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance. The Hanover believes that providing certain financial metrics and trends excluding the effects of catastrophes is meaningful for investors to understand the variability of periodic earnings and loss ratios. |
| Prior year reserve development, which can be favorable or unfavorable, represents changes in our estimate of the costs to pay claims from prior years. We believe that a discussion of operating income (loss) excluding prior year reserve development is helpful to investors since it provides insight into both our estimate of current year accident results and changes to prior-year reserve estimates. |
12
| THE HANOVER INSURANCE GROUP | |
| PREMIUM RELATED METRIC DEFINITIONS | |
| Renewal Price Change | |
| l | Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the estimated net |
| effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. | |
| l | Personal Lines: Represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, |
| inflation adjustments or other changes in policy level exposure or insured risks. Actual written price changes may differ, as not all | |
| policies are retained. | |
| Rate | |
| l | Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the base rate |
| changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. | |
| l | Personal Lines: Represents the estimated cumulative premium effect of approved rate actions applied to policies at renewal. |
| Actual written rate changes may differ, as not all policies are retained. Personal Lines rate changes do not include inflation or changes | |
| in policy level exposure or insured risks. | |
| Retention | |
| l | Core Commercial and Specialty: Represents the ratio of net retained premium for the noted period to the premium available |
| to renew over the same period. | |
| l | Personal Lines: Represents the ratio of net retained policies for the noted period to those policies available to renew over the |
| same period and includes policies that were canceled and rewritten. | |
| Policies in Force (PIF) Change | |
| l | Represents the change in the number of policies in force at the end of a given period from the end of the same period in the prior year. |