The Hanover Insurance Group Inc. reported a net loss of $9.7 million for the third quarter of 2011, driven mostly by catastrophe losses of $64.7 million after tax.
The Hanover’s net income for the same period in 2010 was $52.3 million.
The third quarter 2011 combined ratio for Hanover was 106.8 percent, however, excluding catastrophe the combined ratio was 97.0 percent.
Net premiums written surpassed $1 billion, 30.8 percent higher than the prior-year quarter, Hanover reported. The insurer said net premiums written grew 5.6 percent in commercial lines with $222.3 million in net premiums written coming from the Chaucer acquisition this year. The third quarter 2011 results include the operations of Chaucer from July 1, 2011.
Segment loss before interest expense and taxes was $7.6 million in the third quarter of 2011, which included $99.6 million in catastrophe losses. In the third quarter 2010, the company reported segment income before interest expense and taxes of $79.2 million, which was impacted by $24.1 million in catastrophes losses.
“While our bottom line in the quarter was largely defined by catastrophes, particularly Hurricane Irene, and unusually bad weather, we have continued to improve and diversify our business. Our strong capital base and the progress we have made on our strategic priorities position us very well to take advantage of future market opportunities,” said Frederick H. Eppinger, CEO at The Hanover.
Topics Profit Loss
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