The Hanover Reports Q1 Profits

May 3, 2011

Massachusetts-based insurer The Hanover posted first-quarter profits of $29.3 million, down slightly from the $41.8 million seen in the year-ago period.

Profits came on an increase in net premiums written to $749.9 million, up from the $725.2 million in the first quarter of 2010.

“Winter weather resulted in elevated catastrophe and non-catastrophe losses, but our core performance improved over prior quarters, as we continued to benefit from our focus on key profitability levers,” said CEO Frederick H. Eppinger.

Pre-tax income at The Hanover’s commercial lines segment was $18.4 million, down from $22.8 million in the year-ago period. Catastrophe-related losses were $27.5 million, or 6.9 points, of the first quarter combined ratio, which was 103.7. Last year, cat losses were $18.6 million, or 6.2 points, of the 102.7 combined ratio last year.

Its personal lines segment generated $30.1 million in pre-tax income, a little less than the $34.5 million seen last year. The Personal lines combined ratio was 97.5 in the current quarter, compared to 97.3 in the prior-year quarter. Catastrophe-related losses were $22.2 million, or 6.2 points, of the first quarter combined ratio in 2011, compared to $15.8 million, or 4.3 points, in the prior-year quarter.

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