Property and casualty (P&C) insurance company The Hanover Insurance Group has published select historical quarterly and annual financial information reflecting the planned changes to the company’s segment reporting.
Beginning with first quarter 2022 reporting, the company will disaggregate the former Commercial Lines segment into Core Commercial and Specialty segments, including expenses, allocated net investment income, and other income and expenses for each.
Additionally, the company will expand its reporting of top-line measures to include line of business and sub-segment net premiums written, renewal price change, retention, and other such measures.
Concurrently, the company will no longer report supplemental loss ratio information by product line for its Core Commercial segment.
Finally, although the company’s Personal Lines segment definition did not change, in order to streamline reporting and better align with industry practice, its homeowners sub-segment will be combined with other personal lines, which is primarily comprised of the company’s personal umbrella product.
Jeffrey Farber, chief financial officer at The Hanover commented: “We are excited to provide further transparency and visibility into additional growth and profitability levers of our business.
“We believe the changes we have made to our reporting will give our investors and analysts an enhanced view of both our Specialty and Core Commercial businesses.
“Over the last decade, we have built a successful Specialty business, which has now surpassed $1 billion in net premiums written, while our Core Commercial business is approaching $2 billion in net premiums written.
“We are excited about the prospects within each of these businesses and look forward to discussing the financials of each in more detail on our first quarter earnings call.”
