WAVE 3 TV Louisville, KY | Hanover Insurance swings to 3Q profit; claims down
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WORCESTER, Mass. (AP) - The Hanover Insurance Group Inc. on Monday posted a third-quarter profit, reversing a year-ago loss, as it paid out fewer storm claims and had no investment losses to report.
The property and casualty insurer earned $49.7 million, or 97 cents per share in the quarter ended Sept. 30. The results included a 6-cent per share gain from a tax benefit.
Analysts polled by Thomson Reuters, on average, expected profit of 99 cents per share. Analysts typically exclude one-time items from their estimates.
In the year ago period, the company posted a loss of $61.8 million, or $1.21 per share, weighed down by losses related to claims, investments and discontinued operations.
Hanover's investment results broke even in the 2009 quarter, compared with net realized investment losses of $52.8 million last year.
In the current quarter, pretax catastrophe losses totaled $24.7 million, compared with $98.2 million last year, as claims spiked following Hurricanes Ike and Gustav.
Net premiums written rose 6 percent to $688.8 million from $651.6 million in the year-ago quarter. In its personal lines, net premiums written edged down to $396.7 million from $397.5 million, reflecting a reduction in the average policy premium. In its commercial lines, net premiums written rose to $292.1 million, from $254.1 million last year. The boost came from its specialty businesses, Hanover said.
Hanover's combined ratio improved to 97.6 percent, from 107.8 percent.
Combined ratio reflects an insurance company'slosses and expenses. A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and other expenses. A figure below 100 means the company made a profit on its insurance operations.
Hanover shares closed down 27 cents at $41.80.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
