(Reuters) – Property and casualty insurer Hanover Insurance Group Inc posted a quarterly profit above Wall Street estimates for the third time on the trot, helped by lower catastrophe losses and firming insurance rates.
Catastrophe losses fell to $40.6 million for the first quarter from $49.7 million in the year-ago period, which witnessed severe winter weather in the United States and devastating earthquakes in the Asia-Pacific region.
The 160-year-old insurer, which insured U.S. ships carrying cargo across the Atlantic during the World War I, posted a profit of $49.7 million, or $1.09 per share, up from $29.3 million, or 64 cents per share, last year.
Segment income, which excludes certain investment gains and losses, was $46 million, or $1.01 per share, above analysts' average estimate of 98 cents per share, according to Thomson Reuters I/B/E/S.
For the third straight quarter, Chaucer made a strong contribution to Hanover's earnings, delivering pre-tax segment income of $25 million.
Hanover had acquired Lloyd's of London insurer Chaucer in April last year for 292 million pounds ($474 million).
Net premiums written rose 36 percent to $1.02 billion.
The company, which provided auto insurance to legendary baseball player Babe Ruth, earned $68.8 million from its investments, compared to $60.4 million, last year.
The company's shares, which have risen about 16 percent this year, closed at $40.36 on Monday on the New York Stock Exchange.
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