Hanover Insurance Soars

Shares rise 5% after a strong quarter.
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Hanover Insurance Group

(THG) - Get Report

said Monday that it swung to profit in its third-quarter, as the year-ago period included losses from the sale of the variable life insurance and annuity business and catastrophe losses related to Hurricane Katrina.

The Worcester, Mass.-based company earned $33.4 million, or 65 cents a share, in the quarter, compared with a loss of $562.4 million, or $10.51 a share, a year ago. Third-quarter results included a charge of $34 million, or 66 cents a share, related to Hurricane Katrina. Income from continuing operations was $28.5 million, or 56 cents a share, in the quarter, compared with a loss of $105.4 million, or $1.97 a share. Analysts polled by Thomson First Call were expecting earnings of 38 cents a share in the most recent quarter.

By segment, third-quarter pre-tax income from the property and casualty segment was $52.8 million compared to a loss of $127.7 million in the year-ago period, pre-tax income from personal lines was $35 million in the quarter compared with a loss of $27.8 million, and pre-tax income from commercial lines was $7.7 million compared to a loss of $101 million a year ago. However, pre-tax income from the other property & casualty segment increased to $10.1 million from $1.1 million a year-ago.

Shares rose $2.21 to $46.26.

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