Earnings

The Hanover swung back to underwriting profit of $88mn after a cat-heavy Q3.

The carrier shifted to average Q3 rate hikes of 7.1%, after trimming rates to start 2021 in response to drop in frequency, improvements to expense structure.

The firm is an outlier on the negative side both in its state mix and the speed of its rating actions.

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The insurer also took a $187mn reserve charge, as it's core loss ratio spiked, and catastrophe losses rose from Q4 in 2020.

Chubb had previously recorded more than $1.4bn in pandemic claims, most in the form of IBNR, and its Q4 claims takedown is the most substantial reserve release to date by a publicly-traded insurer.

The two brokers reported quarterly earnings and were optimistic about the coming year.

The company’s 79% jump in underwriting income to $109mn benefitted from $61mn in reserve releases.

The Chicago-based insurer also grew NPW by 11.1%, its fastest clip in recent memory.

Both firms posted results and looked towards future pricing, loss cost trends, and renewals.

CFO Douglas Howell told analysts that the giant broker currently has $4bn to spend on M&A opportunities over the next four years.

The CEO said he so far had seen no slowdown of business moving into the non-admitted channel.