WORCESTER, Mass., /PRNewswire/ —
The Hanover Insurance Group, Inc. (NYSE: THG) today reported fourth quarter and full year 2010 results.
Fourth Quarter 2010 Financial Highlights
- Net income of $58.4 million, or $1.27 per share
- Segment income after tax of $43.7 million, or $0.95 per share(1)
- Combined ratio of 97.8%; ex-catastrophe combined ratio(2) of 95.6%
- Net premiums written of $717.1 million, 14.4% higher than the prior-year quarter
Full Year 2010 Financial Highlights
- Net income of $154.8 million, or $3.34 per share
- Segment income after tax of $122.2 million, or $2.64 per share(1)
- Combined ratio of 100.1%; ex-catastrophe combined ratio(2) of 94.5%
- Net premiums written of $3,048.0 million, compared to $2,608.7 million in the prior year, an increase of 16.8%
- Book value per share of $54.74 at December 31, 2010, up 10% from year end 2009
“Our fourth quarter results reflect a continuation of the positive trends we saw during 2010,” said Frederick H. Eppinger, chief executive officer at The Hanover. “Our ex-catastrophe accident year loss ratio improved by 3 points compared to the prior-year quarter, and we grew ex-catastrophe P&C earnings by 20%, all while achieving significant net written premium growth.
“Our differentiated partner agency strategy allows us to improve margins while growing at rates above industry averages,” Eppinger said. “In 2010, for the first time in our nearly 160-year history, our written premium volume passed the $3 billion mark, driven by the success of our renewal rights transaction and strong growth in specialty commercial lines. This was also the first year our commercial premiums accounted for more than half of our business overall, reflecting the success of our diversification efforts.
“We closed the year with a book value per share of $54.74, an increase of 10% from December 2009, as we continue to build value for our shareholders,” he said.
“Our strong results for the quarter and the year provide further confirmation that our strategy is succeeding and that we are well positioned to capitalize on continuing market opportunities.”
The full Hanover Group Fourth Quarter and Full Year 2010 Results can be found here.