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THE HANOVER INSURANCE COMPANY REPORTS 1992 FIRST QUARTER EARNINGS

 THE HANOVER INSURANCE COMPANY REPORTS 1992 FIRST QUARTER EARNINGS
 WORCESTER, Mass., April 30 /PRNewswire/ -- The Hanover Insurance Company today reported first quarter net income of $36.5 million, or $1.77 per share for 1992, compared to net income of $5.6 million, or 27 cents per share in 1991.
 A Review of the First Quarter's Results
 In 1992, income from operations, excluding net realized capital gains was $36.2 million, or $1.76 per share. In 1991, income from operations, excluding net realized capital losses and the "fresh start" benefit was $5.5 million, or 27 cents per share.
 Improved underwriting results were the primary reason for the growth in earnings. Mild weather in our major markets and the absence of significant catastrophes favorably impacted underwriting results. Premium rate increases to more adequate levels, achieved during the past year, also are reflected in the improved performance during the first quarter of this year. In addition, our first quarter 1991 results were burdened by an assessment from the National Workers' Compensation Reinsurance Pool (NWCRP), which was $8 million higher than the first quarter of 1992.
 The company's combined ratio, including policyholders' dividends, was 99.5 percent in 1992 compared to 108.8 percent in 1991. Net weather-related catastrophes approximated $.9 million in 1992 adding .2 points to the combined ratio, compared to $8.4 million in 1991 which added 2.1 points to the combined ratio. The charge for NWCRP added 2.3 points to the combined ratio in 1991 versus .3 points in 1992.
 Net investment income before taxes was $52.5 million, an increase of 8.8 percent over net investment income of $48.3 million in 1991. The growth in investment income reflects our continued movement away from non-taxable to taxable securities.
 Net premiums written increased 2.4 percent from $420.7 million in 1991 to $430.7 million in 1992 while net premiums earned increased 1.0 percent in the same period.
 For 1992, the investment portfolio showed a net capital gain before taxes of $2.6 million consisting of realized capital gains of $.4 million and unrealized capital gains of $2.2 million. In the same period of 1991, the investment portfolio showed a net capital gain before taxes of $20.7 million consisting of realized capital losses of $.6 million and unrealized capital gains of $21.3 million.
 A Review of the Balance Sheet
 Fixed maturity investments represented 92 percent of total invested assets of $2.7 billion. On March 31, 1992, the carrying value of bonds whose credit rating had fallen below investment grade was $34.8 million or 1.2 percent of invested assets. This has not changed significantly from year end 1991. The estimated market value of these bonds was $34.1 million. There are no investments in real estate or mortgages secured by real estate.
 Shareholders' equity increased $35.7 million in the first quarter of 1992 from $834.3 million ($40.44 per share) at Dec. 31, 1991 to $870 million ($42.17 per share) at March 31, 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."
 The Hanover Insurance Companies include: The Hanover Insurance Company; Massachusetts Bay Insurance Company; The Hanover American Insurance Company; Citizens Insurance Company of America; Beacon Insurance Company of America; American Select Insurance Company; Hanover Lloyd's Insurance Company; AMGRO, Inc.; Citizen's Management, Inc.
 THE HANOVER INSURANCE COMPANY
 Financial Summary
 Quarter ended March 31: 1992 1991
 Net income $36,486,000 $5,595,000
 Earnings per share-(a) $1.77 27 cents
 Average no. shares 20,632,000 20,632,000
 ---
 All figures are reported in accordance with generally accepted accounting principles (GAAP).
 Note (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:
 1992 1991
 Net realized gain
 (loss) on investments
 net of applicable
 federal income tax 1 cent (2 cents)
 -0- 4/30/92
 /CONTACT: Joseph C. Henry of Hanover Insurance, 508-855-7200/
 (HINS) CO: The Hanover Insurance Company ST: Massachusetts IN: INS SU: ERN


SH-TM -- NE009 -- 5104 04/30/92 16:06 EDT
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Date:Apr 30, 1992
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