NU Online News Service, Aug. 9, 2:25 p.m. EST
The Hanover Insurance Group reports a second-quarter net loss of $31.8 million, as the commercial- and personal-lines insurer says after-tax catastrophe losses during the period, mainly from tornadoes, were $103.4 million.
Results compare to a net income of $2.3 million during the 2010 second quarter.
Pretax catastrophe losses were $156.7 million compared to $85 million a year ago during the same time.
The consolidated combined ratio for the second quarter was 113.3. Broken down by commercial and personal segments, the ratio was 114.3 and 112.2, respectively.
Net premiums written in personal lines was $374.6 million compared to $376.9 in the 2010 second quarter. Hanover says the decline was due to actions it took in Louisiana and Florida.
Driven by growth in specialty business, commercial lines net premiums written increased 3.6 percent to $440.5 million in the second quarter, compared to the same period a year ago.
One day after the second quarter ended, Hanover closed on its acquisition of Chaucer Holdings. Hanover says it realized an $11.1 million loss during the quarter for transaction expenses, primarily related to the Chaucer transaction.
Catastrophes also struck Des Moines, Iowa-based EMC Insurance Group.
The company reports a $12.5 million loss for the second quarter as catastrophe losses were about $41.1 million. The P&C insurer and reinsurer recorded a $3.3 million profit a year ago during the same time.
Catastrophe losses accounted for 40.7 points of EMC's quarterly combined ratio of 132.9. The company is predicting an operating loss for 2011.
Nevertheless, President and CEO Bruce G. Kelley says EMC is "attaining commercial lines rate level increases and continues to achieve a higher level of rate adequacy in our personal lines."
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