The Hanover Insurance Group Inc. posted Thursday net income of $77.6 million for the 2015 fourth quarter, down 13 percent from $89.9 million net income during the 2014 fourth quarter.
The Worcester, Massachusetts-based insurer said net income for the full-year 2015 was $331.5 million, up 17 percent from $282.0 million net income during 2014.
Net premiums written for the 2015 fourth quarter was $1.046 billion, down 6 percent from $1.117 billion during the 2014 fourth quarter. For the full-year 2015, net premiums written were $4.754 billion, down 1 percent from $4.810 billion from 2014. The company said the decrease from the prior year was principally driven by the Chaucer unit’s disposal of its U.K. motor business in June 2015.
The combined ratio for the 2015 fourth quarter was 95.0, compared to 94.3 during the 2014 fourth quarter. The full-year 2015 combined ratio was 95.7, compared to 96.9 for 2014.
The net investment income for the latest fourth quarter was $70.0 million, up slightly from $68.8 million for the 2014 fourth quarter. The full-year 2015 net investment income was $279.1 million, rising 3 percent from $270.3 million for 2014.
“We are pleased with our strong results in the quarter, closing out another successful year,” said Hanover President and CEO Frederick H. Eppinger.
“All of our business segments performed well during the year, as we continued to solidify our market position, setting the stage for continued strong results,” Eppinger said.
Eppinger said that in Commercial Lines, the company reported 6 percent growth in net premiums written for the year to $2.28 billion, improved retention, sustained new business momentum, and maintained strong pricing throughout the year, with increases of 5.2 percent in core Commercial Lines in the 2015 fourth quarter.
In Personal Lines, the company reached an important milestone, successfully growing the book after three years of carefully planned exposure management initiatives, Eppinger said. “We remained disciplined in our rate actions, ending the year up 5 percent, with strong retention, while further improving the underlying profitability of this business,” he said.