Second-quarter net income at Hanover Insurance Group jumped to $53.4 million from $20.8 million a year ago on higher rates and better exposure management, the company says.
CEO Frederick H. Eppinger says the Worcester, Mass.-based saw price increases of 8 percent in commercial and 9 percent in personal during the second quarter.
Net premiums written in the commercial segment during the second quarter were up 5 percent to $521.5 million and catastrophe losses were down to $15.1 million from $38.4 million in 2012.
The line also booked less unfavorable prior-year reserve development—$500,000 compared to $14.5 million during the second quarter a year ago.
In personal lines, second-quarter NPW were $370.6 million—relatively flat compared to a year ago.
Second-quarter catastrophe losses were also flat ($32.2 million compared to $32.4 million).
Hanover's Chaucer subsidiary saw an increase in second-quarter catastrophe losses to $12.5 million from $3.3 million a year ago, but pretax operating income improved to $36.9 million from $29.8 million in the second quarter.
Results here were driven by favorable prior-year reserve development of $30.7, compared to $5.1 million a year ago, due to the “resolution of certain energy claims, better-than-expected experience in the casualty and property lines, and a favorable impact of foreign currency movement,” the company says in statement.
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