Hanover Insurance Profit Soars 61% in 3d Quarter

October 30, 2007

With fewer catastrophe claims to pay, Hanover Insurance Group Inc.’s profit jumped 61 percent in the third quarter, the company reported this week.

Net income for the third quarter of $53.9 million, or $1.03 per share, compared to a net income of $33.4 million, or $0.65 per share, in the third quarter of last year.

The current quarter’s results include a $17.0 million pre-tax charge, or $0.21 per share of after-tax net losses related to 2005 Hurricane Katrina. Results for the third quarter of last year also include a pre-tax charge of $52.1 million for Hurricane Katrina losses, or $0.66 per share after taxes.

Income from continuing operations was $53.0 million for the third quarter, or $1.01 per share, compared to $28.5 million, or $0.56 per share, in the third quarter of last year. Results for both quarters include the impact of the catastrophe losses related to Hurricane Katrina.

Total property and casualty pre-tax segment income was $92.8 million in the quarter, compared to $52.8 million in the third quarter of last year.

The personal lines segment reported pre-tax segment earnings of $49.4 million in the third quarter of 2007, compared to $35.0 million in the third quarter of 2006, while the commercial lines segment reported pre-tax segment earnings of $39.4 million in the quarter, versus $7.7 million in the third quarter of 2006.

Source: Hanover
www.hanover.com

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