NU Online News Service, Feb. 9, 10:55 a.m. EST
Hanover Insurance Group says 2011 fourth-quarter net income fell slightly to $49.3 million, compared to $58.4 million the prior year.
Results include Chaucer Holdings' operations as of July 2011, says Hanover, which completed its $474 million purchase of Chaucer, a specialist Lloyd's insurance group, that month.
Pre-tax catastrophe losses of $55.6 million are also included within results for the last quarter of 2011.
The Worcester, Mass.-based insurer says its efforts to improve geographic diversification and business mix is working, especially in commercial lines.
Chief Executive Officer Frederick H. Eppinger says pricing trends continue to improve. Prices increased 4 percent in commercial lines and more than 5 percent in personal lines.
Net premiums written in commercial lines were $415.7 million during the fourth quarter, up 12.6 percent from the same time period in 2010. The increase was driven by growth in specialty and core commercial businesses,Hanoversays.
Rate increases in home and auto insurance helped drive a 2 percent increase in personal lines net premiums written, to $354.9 million.
Much of the catastrophe losses—$35.9 million—was attributable to Chaucer. Favorable prior-year reserve adjustments slightly offset $38.5 million in losses from the flooding inThailand,Hanoverreports.
For the year,Hanover's net income was down 76 percent to $37.1 million, as catastrophe losses in domestic businesses were $312.1 million compared to $160.3 million the prior year. Total pre-tax catastrophe losses for the year were $361.6 million.
Cincinnati Financial Corp. says it turned in its best quarterly underwriting profit since 2007.
Fourth-quarter underwriting profit was $98 million before taxes, which also marked the company's first underwriting profit in 2011.
"Strong fourth-quarter results reflected better core underwriting as well as recently reported favorable impacts from lower catastrophe loss estimates, improving pricing trends for commercial insurance and higher securities valuations in our investment portfolio," says Steven J. Johnson, president and chief executive officer, in a statement.
Net income for the last quarter of 2011 was $134 million, a 6 percent increase compared to net income of $126 million during the 2010 fourth quarter.
Cincinnati Financial reports an 87.6 fourth-quarter combined ratio and a 109.2 combined ratio for the year, as yearly net income fell 56 percent to $166 million.
The company recorded pre-tax catastrophe losses of $402 million in 2011.
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