NU Online News Service, Aug. 05, 3:36 p.m. EDT
Second-quarter net income for The Hanover Insurance Group Inc. dropped to $2.3 million from $64.4 million a year ago as the personal and commercial lines insurer absorbed $85 million in catastrophe losses.
The personal lines segment posted a combined ratio of 107.5 during the quarter while commercial lines had a 104.7 combined ratio, the Worcester, Mass.-based insurer said.
The Hanover Group's personal lines took a $3.5 million 2010 second-quarter loss compared to income of $25.6 million a year ago. Commercial lines recorded a profit of $16.9 million compared to $50.9 million last year in the 2009 second quarter.
Excluding catastrophes the insurer posted a 93.9 consolidated combined ratio. Net premiums were up 21 percent from the second quarter last year to $802 million.
Commercial lines net premiums written shot up 46 percent to $426.1 million compared with 2009, reflecting profits from the renewal rights transaction entered into with OneBeacon Insurance Group in last December.
Through the agreement The Hanover said it expected to acquire access to up to $400 million in OneBeacon middle market commercial business at renewal.
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