Hanover Insurance Group reported third quarter income fell 215 percent on the combination of weather related and investment losses, but management said it expects to do well for the year.
The company reported third quarter income dropped $116 million to income loss of $62 million, or loss per share of $1.21, compared to net income last year of $54 million or $1.03 a share.
The results were on total revenues in the period of $642 million, down 4 percent, or $30 million, from the comparative quarter of $672 million.
For the nine months, income loss was 108 percent, or $191 million, going from $177 million, or $3.39 a share, to a loss of $14 million, or loss per share of 26-cents.
Revenues for the nine months grew 1 percent, or $22 million, to $2.02 billion.
The combined ratio for the third quarter rose 12.5 points to 108.4 compared to 95.9 last year. For the nine months, the combined ratio was up 4.9 points, going from 94.8 last year to 99.7 this year.
In a statement, Frederick H. Eppinger, chief executive officer for the Worcester, Mass., insurer said that while the third quarter results reflect extreme storm activity and recent turmoil in the financial markets, the company still expects "to generate very solid results for the year."
The company reported third quarter catastrophe losses of $98.2 million pre-tax; realized losses on investments of $52.8 million, and a loss from discontinued operations of $18.3 million.
Realized losses included previously disclosed impairments related to Lehman Brothers and Washington Mutual holdings of $36.7 million.
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