Mission Statement, Vision, & Core Values (2024) of The Hanover Insurance Group, Inc. (THG).

An Overview of The Hanover Insurance Group, Inc. (THG)

General Summary of The Hanover Insurance Group, Inc. (THG)

The Hanover Insurance Group, Inc. (THG) has a rich history dating back to 1852, when it was founded as the Hanover Fire Insurance Company in Worcester, Massachusetts. Over the years, THG has evolved into a leading provider of property and casualty insurance products and services in the United States. The company operates through four primary segments: Core Commercial, Specialty, Personal Lines, and Other, offering a range of insurance solutions including commercial multiple peril, workers’ compensation, personal automobile, and homeowners insurance.

As of 2024, THG reported net premiums written of $4,638.5 million for the nine months ended September 30, 2024, reflecting a growth of 3.6% compared to the same period in 2023, primarily driven by renewal price increases across its segments.

Company's Financial Performance in the Latest Financial Reports

In the latest financial reports for the nine months ended September 30, 2024, The Hanover Insurance Group achieved significant improvements in its financial performance:

• Consolidated net income was $258.1 million, a substantial increase from a net loss of $72.6 million in the same period of 2023.
• Operating income before interest expense and income taxes reached $395.7 million, compared to an operating loss of $52.5 million in the prior year.
• Pre-tax catastrophe losses were $349.9 million, down from $632.4 million for the same period in 2023, marking a decrease of $282.5 million.
• Net premiums written increased by $173.8 million for the nine months ended September 30, 2024, primarily due to renewal price increases.

The following table summarizes the underwriting results for each reporting segment:

Introduction to The Hanover Insurance Group as a Leading Company in the Industry

The Hanover Insurance Group stands out as one of the leading companies in the property and casualty insurance industry. Its strategic focus on independent agents and commitment to underwriting discipline have allowed it to achieve consistent growth and profitability. The company’s comprehensive suite of products and robust distribution network enables it to effectively address the diverse needs of its customers.

THG's emphasis on specialty markets and continuous investment in technology further solidify its position in the industry. With a strong financial foundation and a proactive approach to risk management, The Hanover Insurance Group is well-positioned to navigate the evolving insurance landscape and meet the challenges of the future.

Mission Statement of The Hanover Insurance Group, Inc. (THG)

Mission Statement Overview

The Hanover Insurance Group, Inc. (THG) aims to deliver high-quality insurance products and services that meet the diverse needs of its clients. The mission statement serves as a guiding principle for the organization, ensuring alignment with its long-term objectives and customer-focused strategies. This commitment to excellence is reflected in its robust financial performance and market positioning.

Core Component 1: Customer Commitment

THG emphasizes a strong commitment to its customers, striving to provide tailored insurance solutions that address individual needs. This focus is evident in their strategic partnerships with independent agents, which enables personalized service and support. In the nine months ended September 30, 2024, THG reported net premiums written of $4,638.5 million, reflecting a 3.3% increase from the prior year, primarily driven by renewal price increases and enhanced customer engagement.

Core Component 2: Innovation and Quality

Innovation plays a pivotal role in THG's mission, as the company continually seeks to enhance its offerings through technological advancements and product development. For example, in 2024, THG increased its investment in technology to improve underwriting processes and customer service capabilities. The company reported an operating income of $395.7 million for the nine months ended September 30, 2024, compared to an operating loss of $52.5 million in the same period in 2023, illustrating significant improvements in operational efficiency and product quality.

Core Component 3: Community and Ethical Standards

THG is dedicated to maintaining high ethical standards and contributing positively to the communities it serves. The company's commitment to social responsibility is reflected in its various community engagement initiatives and sustainability efforts. As of September 30, 2024, THG reported total statutory capital and surplus of $2,893.5 million, an increase of $250.8 million from the previous year, which supports its capacity to invest in community programs while ensuring financial stability.

Vision Statement of The Hanover Insurance Group, Inc. (THG)

Vision Statement Components

The Hanover Insurance Group, Inc. (THG) articulates its vision through several key components that guide its strategy and operations. Each element reflects the company's commitment to excellence, customer satisfaction, and sustainable growth.

THG emphasizes a strong customer-centric approach, aiming to provide tailored insurance solutions that meet the diverse needs of its clients. In 2024, the company reported net premiums written of $4.64 billion, reflecting a 5.4% increase from the previous year, driven by its focus on customer satisfaction and retention strategies.

THG continues to innovate within the insurance sector, introducing new products and services that leverage technology. The company invested significantly in technology enhancements, which contributed to improved underwriting processes and customer engagement. For example, the underwriting profit for the Core Commercial segment reached $142.2 million for the nine months ended September 30, 2024, compared to $149.7 million in the same period of 2023.

THG is dedicated to sustainability and responsible business practices. The company reported a total statutory capital and surplus of $2.89 billion as of September 30, 2024, up from $2.64 billion in the prior year. This increase underscores THG's ability to maintain financial strength while adhering to sustainable practices.

THG recognizes that employee development is crucial to achieving its vision. The company has invested in talent development programs, aiming to enhance employee skills and engagement. This strategic focus is reflected in the increase in operational income before interest and taxes, which improved to $395.7 million for the nine months ended September 30, 2024, from an operating loss of $52.5 million in 2023.

Engaging with the community is a vital aspect of THG's vision. The company actively participates in various community initiatives, reinforcing its commitment to social responsibility. As a result, THG has built a strong reputation and trust within the communities it serves, further enhancing its brand value and customer loyalty.

These components collectively illustrate The Hanover Insurance Group's vision for 2024, emphasizing a commitment to serving customers, innovating in the insurance space, and fostering a responsible and engaged workforce.

Core Values of The Hanover Insurance Group, Inc. (THG)

Integrity

The Hanover Insurance Group, Inc. (THG) emphasizes integrity as a core value, highlighting the importance of honesty and ethical behavior in all its dealings. This commitment is evident in the company's transparent communication with stakeholders and adherence to regulatory standards.

In 2024, THG maintained a strong focus on ethical underwriting practices, which is reflected in its underwriting profit. For the nine months ended September 30, 2024, the company reported a Core Commercial underwriting profit of $88.3 million, a significant increase from $1.0 million in the same period in 2023.

Customer-Centric Approach

THG prioritizes a customer-centric approach, ensuring that the needs of policyholders are at the forefront of its operations. This is demonstrated through its initiatives aimed at enhancing customer service and satisfaction.

The company reported net premiums written in Personal Lines of $1,901.4 million for the nine months ended September 30, 2024, up from $1,834.8 million in the previous year. This increase was primarily driven by renewal price increases, which reflect THG’s commitment to delivering value to its customers.

Innovation

Innovation is a fundamental value at THG, as the company continuously seeks to improve its products and services through technology and creative solutions. This commitment is crucial for staying competitive in the insurance industry.

In 2024, THG increased its investment in technology, which contributed to a $2.2 million increase in Specialty current accident year underwriting profit, excluding catastrophes. This reflects the company's focus on leveraging innovation to enhance operational efficiency.

Collaboration

THG fosters a culture of collaboration, recognizing that teamwork is essential for achieving business goals. This value is particularly evident in its relationships with independent agents and partners.

During the nine months ended September 30, 2024, THG reported a 3.3% increase in net premiums written across its Core Commercial segment, underscoring the effectiveness of its collaborative efforts with retail agents.

Accountability

The value of accountability is integral to THG’s operations, as the company holds itself responsible for its actions and performance. This is reflected in its financial results and adherence to regulatory requirements.

For the nine months ended September 30, 2024, THG’s total statutory capital and surplus increased to $2,893.5 million, up from $2,642.7 million, indicating robust financial health and a commitment to responsible management.

Article updated on 8 Nov 2024

Resources:

• The Hanover Insurance Group, Inc. (THG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Hanover Insurance Group, Inc. (THG)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View The Hanover Insurance Group, Inc. (THG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.