The Commerce Group Earnings Rise

NU Online News Service, Oct. 27, 2:40 p.m.EST?The Commerce Group Inc., a Webster, Mass.-basedinsurer, posted $22.9 million in profit for its third quarter,nearly doubling the $12.6 million in income it posted one yearago?thanks to improved investment income and higher earnedpremiums, the company said.

The company, the largest personal auto insurer in Massachusetts,had net realized investment gains of $2.6 million for the thirdquarter. In contrast, the insurer had recorded $13.4 million in netrealized investment loss during the corresponding period lastyear.

The insurer's earned premiums for the quarter also improved to$372.7 million, higher than $309.1 million posted one year ago.

The Commerce Group's statutory combined ratio forproperty-casualty operations for the third quarter was 98.9percent, down from 99.4 percent recorded during the year-agoperiod. The company said the drop in the combined ratio wasprimarily a result of a decrease in the loss ratio, which declinedto 74.9 percent from 76 percent during the past year.

The Commerce Group gets nearly half of its premiums through itsaffinity marketing program with Massachusetts's AAA clubs. Thecompany also offers homeowners, earthquake, flood, business andpersonal umbrella insurance products. Additionally, AmericanCommerce Insurance, The Commerce Group's joint venture with AAASouthern New England, writes auto and homeowners insurance in some25 states.