Hanover Insurance Swings To 3Q Profit; Claims Down

WORCESTER, Mass. (AP) — The Hanover Insurance Group Inc. on Monday posted a third-quarter profit, reversing a year-ago loss, as it paid out fewer storm claims and had no investment losses to report.

The property and casualty insurer earned $49.7 million, or 97 cents per share in the quarter ended Sept. 30. The results included a 6-cent per share gain from a tax benefit.

Analysts polled by Thomson Reuters, on average, expected profit of 99 cents per share. Analysts typically exclude one-time items from their estimates.

In the year ago period, the company posted a loss of $61.8 million, or $1.21 per share, weighed down by losses related to claims, investments and discontinued operations.

Hanover's investment results broke even in the 2009 quarter, compared with net realized investment losses of $52.8 million last year.

In the current quarter, pretax catastrophe losses totaled $24.7 million, compared with $98.2 million last year, as claims spiked following Hurricanes Ike and Gustav.