The Hanover Insurance Group Inc., based in Worcester, Mass., reported a big increase in net income for the fourth quarter of $114.5 million, or $2.11 per share, compared to net income of $63.1 million, or $1.18 per share in the fourth quarter of last year.
The results showed strong performance by both personal and commercial lines segments.
For the full year, the company reported a net loss of $329.4 million, or $6.10 per share, compared to net income of $125.3 million, or $2.34 per share in 2004. The net loss for the year is attributed to the $444.4 million net loss on the sale of the variable life and annuity business and the $162 million net catastrophe loss related to Hurricane Katrina.
Total property and casualty pre-tax segment income was $89.5 million in the quarter, compared to $73.6 million in the fourth quarter of last year. The current quarter’s results include $35 million of additional reserves related to the third quarter Hurricane Katrina losses. For the full year, total property and casualty pre-tax segment income was $113.7 million, compared to $198.0 million in 2004.
“I am very pleased with our strong fourth quarter results,” said Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group, Inc. “We continue to effectively execute to our key business strategies in both our personal lines and commercial lines segments, which were up significantly on an ex-catastrophe basis over the fourth quarter of last year. Our underlying loss trends continue to improve and remain strong.”
The company’s stock soared to its highest point of the year on the fourth quarter results. Shares of the company rose $3.20, or 7.1 percent, to $48.25 in Tuesday afternoon trading on the New York Stock Exchange.
The company was formerly known as Allmerican Financial Corp.
Was this article valuable?
Here are more articles you may enjoy.