Reuters logo
Insurer Hanover beats on lower catastrophe losses
August 1, 2012 / 9:20 PM / 5 years ago

Insurer Hanover beats on lower catastrophe losses

* Q2 segment income/shr $0.22 vs est $0.19

* Q2 net premiums written $1.2 bln, up 47 pct

Aug 1 (Reuters) - Property and casualty insurer Hanover Insurance Group Inc posted a quarterly profit above Wall Street estimates for the fourth straight time on lower catastrophe losses and higher premiums.

The 160-year old company, which insured U.S. ships carrying cargo across the Atlantic during the World War I, earned $20.8 million, or 46 cents per share, in the second quarter, compared with a loss of $32.2 million, or 71 cents per share, a year earlier.

Segment income, which excludes certain investment gains and losses, was $22 per share, above analysts’ average estimate of 19 cents per share, according to Thomson Reuters I/B/E/S.

Net premiums written jumped 47 percent to $1.2 billion.

Catastrophe losses fell to $74.1 million for the second quarter from $156.7 million in the year ago period, which witnessed severe spring storms in the United States and a devastating earthquake in New Zealand.

Chaucer made a strong contribution to earnings, delivering pre-tax segment income of $88 million.

Hanover completed the acquisition of Lloyd’s of London insurer Chaucer in July last year after agreeing to buy it for 292 million pounds ($474 million) in April.

The company, which provided auto insurance to legendary baseball player Babe Ruth, earned $68.5 million from its investments, compared to $61 million, a year earlier.

Hanover’s shares, which have fallen more than 10 percent in the last month, closed at $34.47 on Wednesday on the New York Stock Exchange.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below