HANOVER INSURANCE GROUP INC
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
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Other Items
Net income (loss) also included the following items:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| (in millions) | Core Commercial | Specialty | PersonalLines | Other | Discontinued Operations | Total |
| Net realized and unrealized investment losses | $(16.1) | $(8.0) | $(10.1) | $(0.3) | $— | $(34.5) |
| Other non-operating | — | — | — | (1.0) | — | (1.0) |
| Discontinued life businesses | — | — | — | — | 0.1 | 0.1 |
| Net realized and unrealized investment gains (losses) | $(1.9) | $(0.9) | $(1.1) | $1.2 | $— | $(2.7) |
| Discontinued Chaucer business | — | — | — | — | 0.8 | 0.8 |
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| (in millions) | Core Commercial | Specialty | PersonalLines | Other | Discontinued Operations | Total |
| Net realized and unrealized investment losses | $(13.5) | $(6.7) | $(8.5) | $(0.3) | $— | $(29.0) |
| Other non-operating | — | — | — | (2.4) | — | (2.4) |
| Discontinued life businesses | — | — | — | — | 0.1 | 0.1 |
| Net realized and unrealized investment losses | $(12.3) | $(5.8) | $(7.6) | $— | $— | $(25.7) |
| Other non-operating | — | — | 0.2 | 0.6 | — | 0.8 |
| Discontinued Chaucer business | — | — | — | — | 0.8 | 0.8 |
We manage investment assets for our Core Commercial, Specialty, Personal Lines and Other segments based on the requirements of our combined property and casualty insurance companies. We allocate the investment income, expenses, and net realized and unrealized investment gains and losses to our Core Commercial, Specialty, Personal Lines and Other segments based on actuarial information related to the underlying businesses.
Net realized and unrealized investment losses were $34.5 million for the three months ended June 30, 2024, compared to $2.7 million for the three months ended June 30, 2023. For the three months ended June 30, 2024, net realized and unrealized investment losses were primarily due to $30.4 million of net realized losses from sales of investments and, to a lesser extent, from impairment losses on investments, including $3.5 million of credit-related impairments and $1.7 million of losses related to intent to sell securities, partially offset by changes in the fair value of equity securities. Net realized investment losses were primarily due to the sale of lower coupon fixed income securities, in consideration of expiring tax gains from 2021. For the three months ended June 30, 2023, net realized and unrealized investment losses were primarily due to credit-related impairment losses on investments and, to a lesser extent, the change in the fair value of equity securities.
Net realized and unrealized investment losses were $29.0 million for the six months ended June 30, 2024, compared to $25.7 million for the six months ended June 30, 2023. For the six months ended June 30, 2024, net realized and unrealized investment losses were primarily due to $31.7 million of net realized losses from sales of investments, primarily fixed maturities, and, to a lesser extent, from impairment losses on investments, including $3.2 million of credit-related impairments and $1.7 million of losses related to intent to sell securities. These investment losses were partially offset by changes in the fair value of equity securities of $7.6 million. For the six months ended June 30, 2023, net realized and unrealized investment losses were primarily due to impairment losses on investments, including $10.3 million of losses related to intent to sell securities and $6.2 million of credit-related impairments and, to a lesser extent, from changes in the fair value of equity securities of $8.2 million.
Income
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