The Hanover Insurance Group has posted net income of $8.6m in the third quarter (Q3) of 2023, representing a significant increase from $0.5m a year ago.

Net income per diluted share was $0.24 as against $0.01 per diluted share in Q3 2022.

For the quarter that ended on 30 September 2023, total revenues were $1.51bn, up 10.9% from $1.36bn last year.

Operating income dropped to $6.8m or $0.19 per diluted share from $35.7m or $0.99 per diluted share a year ago.

Net premiums written grew by 6% to $1.59bn from $1.5bn in Q3 of the previous year.

The quarter’s net premiums written came in at $668.3m, a 9.5% increase over the same period last year.

Rate hikes were on average 10.7%, but Personal Lines renewal prices increased by an average of 18%. Comparing Q3 2023 with Q2, the policies that were in place were essentially unchanged.

Net investment income totalled $84.2m, an increase of 15.3% from $73m in the prior-year quarter.

The Hanover witnessed catastrophe losses of $195.8m or 13.7 points of the combined ratio in Q3 2023.

The Hanover president and CEO John Roche said: “We have taken decisive action to respond to elevated catastrophe loss trends. We introduced increased all-peril as well as wind and hail deductibles on targeted new business in Q3, and are on track to deliver these adjustments on renewals in early 2024.”

The Hanover CFO and executive vice-president Jeffrey Farber commented: “We expect a higher interest rate environment to help drive additional growth in net investment income in future, adding significant earnings power to our business.”