The Hanover Insurance has reported that its net income rose by 70% to $49.7m, or $1.09 per diluted share during the first quarter of current fiscal, against a net income of $29.3m, or $0.64 per diluted share, in the first quarter of 2011.
During the latest quarter period, its segment income before interest expense and taxes was $85.7m, which included $40.6m in pre-tax catastrophe losses, against segment income before interest expense and taxes of $49.8m, which included $49.7m in pre-tax catastrophes losses during the corresponding quarter last fiscal.
For the quarter period ended on 31 March 2012, its net premiums written of $1bn, with an increase of 36% over the prior-year quarter, boosted by $200.2m of the Chaucer acquisition, growth of 15% in commercial lines, continuing and accelerating improvement in commercial lines pricing trends and strong retention, said the insurer.
The Hanover Insurance Group chief executive officer Frederick Eppinger said the firm is pleased to start 2012 with solid results and positive momentum in their businesses, which overall was in line with their expectations.
"We are encouraged by the momentum of pricing increases of 6% in core Commercial Lines and 5% in Personal Lines, while maintaining strong retention in both businesses," Eppinger said.
"Additionally, for the third quarter in a row, Chaucer made a strong contribution to our earnings, delivering pre-tax segment income of $25 million in the first quarter 2012."
According to Eppinger, at quarter-end, the firm's book value per share stood at $57.65, which represents an increase of 6% from the first quarter of last year, and approximately 4% from year-end.
