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THE HANOVER INSURANCE COMPANY 1992 SECOND QUARTER EARNINGS

 THE HANOVER INSURANCE COMPANY 1992 SECOND QUARTER EARNINGS
 WORCESTER, Mass., July 30 /PRNewswire/ -- The Hanover Insurance Company (NASDAQ: HINS) today reported net income for the first six months of $73.2 million, or $3.55 per share for 1992 compared to net income of $27.5 million, or $1.33 per share for 1991. Net income for the second quarter was $36.7 million for 1992, or $1.78 per share compared to net income of $21.9 million, or $1.06 per share in 1991. Year-to-date results
 In 1992, income from operations, excluding net realized capital gains was $66.8 million, or $3.24 per share. In 1991, income from operations, excluding net realized capital gains and the "fresh start" benefit was $25.8 million, or $1.25 per share. Last year's earnings included an assessment from the National Workers' Compensation Reinsurance Pool which was $8 million higher than the first six months of this year.
 The company's combined ratio, including policyholders' dividends was 100.9 percent in 1992 compared to 108.1 percent in 1991 and 99.5 percent in the first quarter of 1992. Net weather-related catastrophes for the first six months of 1992 were $18.8 million adding 2.3 points to the combined ratio, compared to $14.9 million in 1991, which added 1.9 points.
 Net investment income before taxes increased 7.9 percent over 1991. Declining interest rates have been offset by the investment of cash provided from operations.
 Net premiums written increased 3.5 percent over 1991 while net premiums earned increased 1.9 percent.
 For 1992 the investment portfolio showed a net capital gain before taxes of $10.4 million consisting if realized capital gains of $9.7 million and unrealized capital gains of $.7 million. In the same period of 1991, the investment portfolio showed a net capital gain before taxes of $20.9 million consisting of realized capital gains of $1.0 million and unrealized capital gains of $19.9 million. A Review of the Second Quarter's Results
 For the second quarter of 1992, net income from operations, excluding net realized capital gains was $30.6 million, or $1.48 per share. In 1991, income from operations, excluding net realized capital gains and the "fresh star" benefit was $20.3 million, or $.98 per share. Improved underwriting results were the primary reason for the growth in earnings. Premium rate increases during the past year contributed to the improved results in the second quarter. Additionally, 1991 included significant reserve strengthening on our voluntary business.
 The company's combined ratio, including policy holders' possessive dividends, was 102.3 percent in the second quarter of 1992 compared to 107.3 percent in 1991. Net weather-related catastrophes impacted the second quarter by approximately $17.9 million in 1992 adding 4.3 points to the combined ratio, compared to $6.5 million in 1991 which added 1.6 points.
 Net investment income increased 7.1 percent over the second quarter 1991.
 Net premiums written increased 4.7 percent over the second quarter of 1991 while net premiums earned increased 2.8 percent in the same period.
 The investment portfolio showed a net capital gain before taxes of $7.8 million consisting of realized capital gains of $9.3 million and an unrealized capital loss of $1.5 million. In the same period of 1991, the investment portfolio showed a net capital gain before taxes of $.1 million consisting of realized capital gains of $1.6 million and unrealized capital losses of $1.5 million. A Review of the Balance Sheet
 Fixed maturity investments represented 94 percent of total invested assets of $2.7 billion. On June 30, 1992, the carrying value of bonds whose credit rating had fallen below investment grade was $54.6 million, or 2 percent of invested assets. This has not changed significantly from year end 1991. The estimated market value of these bonds was also $54.6 million. There are no investments in real estate or mortgages secured by real estate.
 Shareholders' equity increased $33.4 million in the second quarter of 1992 from $870.0 million ($42.17 per share) at March 31, 1992 to $903.4 million ($43.79 per share) at June 30, 1992.
 All quarterly figures are unaudited and reported in accordance with generally accepted accounting principles (GAAP) with the exception of the combined ratio and underwriting exhibits which are on a statutory basis following industry practice.
 When realized and unrealized capital gains, fresh start and net investment income are reported net of tax for 1992 and 1991, the amounts are calculated at the statutory federal income tax rate of 34 percent without regard to alternative minimum tax (AMT).
 The Hanover Insurance Company is a property and liability insurance and financial services organization. The company's common stock is traded "over the counter" under the symbol "HINS."
 HANOVER INSURANCE CO.
 Financial Tables
 Quar. June 30: 1992 1991
 Net income $36,670,000 $21,928,000
 Earnings Per Share (a) $1.78 $1.06
 Average No. Shares 20,632,000 20,632,000
 Six months June 30:
 Net income $73,156,000 $27,523,000
 Earnings Per Share (a) $3.55 $1.33
 Average No. Shares 20,632,000 20,632,000
 All figures are reported in accordance with generally accepted accounting principles (GAAP).
 (a) Includes net realized gain on investments, net of federal income taxes at the statutory rate of 34 percent, without regard for alternative minimum tax (AMT) in 1992 and 1991, as follows:
 Y-T-D 2nd Qtr
 1992 1991 1992 1991
 Net realized gain on
 investments net of
 applicable federal
 income taxes 31 cents 3 cents 30 cents 5 cents
 -0- 7/30/92
 /CONTACT: Joseph C. Henry, vice president of finance/administration and treasurer, or Pamela D. Gencarella of Hanover Insurance Company, 508-855-7200/
 (HINS) CO: Hanover Insurance ST: Massachusetts IN: INS SU: ERN


TM -- NE020 -- 5327 07/30/92 17:33 EDT
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Date:Jul 30, 1992
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