Hanover Insurance Group reports first quarter results

WORCESTER -- The Hanover Insurance Group reported a net loss Tuesday of $40 million or $1.04 per basic share in the first quarter of 2020, but indicates it remains finacially strong.

The company posted a net income of $122.4 million, or $2.97 per diluted share in the prior-year first quarter.

Operating income for the first quarter of 2020 was $86.8 million, up from $80.7 million in the prior year quarter.

The difference between the net loss and operating income this past quarter was primarily due to an after-tax decrease in fair value of equity securities of $107.6 million, or $2.81 per basic share, and after tax impairment losses on investments of $22.5 million, both of which follow the dramatic downturn in financial markets in March, according to the company. They are excluded from operating income.

The results, according to a press release from the company, show the company closed out a strong first quarter, strong growth across the organization and in its most profitable businesses and excellent underwriting results while assessing the impact of COVID-19 related issues.

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