Hanover Insurance Profit Falls

Shares drop 4% on an earnings miss.
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Hanover Insurance Group

(THG) - Get Report

second-quarter earnings fell 29.3% from the year-ago period.

The company earned $50.9 million, or 99 cents a share, in the quarter, compared with $72 million, or $1.34 a share, a year ago. Second-quarter income from continuing operations fell 6% from a year ago to $53.7 million, or $1.04 a share. Analysts polled by Thomson First Call were expecting earnings of $1.14 a share in the most recent quarter.

The Worcester, Mass.-based company said that the last year's second-quarter results include a a federal income tax benefit of $12.9 million, or 23 cents a share, related to its discontinued variable life insurance and annuity business.

By segment, second-quarter pre-tax income from the property and casualty segment fell 4.3% from a year ago to $86.2 million, pre-tax income from personal lines fell 6.5% to $53.7 million, and pre-tax income from commercial lines fell 2.6% to $30.2 million. However, pre-tax income from the other property & casualty segment rose 35.3% to $2.3 million.

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