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THE HANOVER INSURANCE COMPANY REPORTS 1992 THIRD QUARTER RESULTS

 THE HANOVER INSURANCE COMPANY REPORTS 1992 THIRD QUARTER RESULTS
 WORCESTER, Mass., Oct. 26 /PRNewswire/ -- The Hanover Insurance Company (NASDAQ-NMS: HINS) today reported net income for the first nine months of $107.7 million, or $5.22 per share for 1992 compared to net income of $33.0 million, or $1.60 per share for 1991. Net income for the third quarter was $34.5 million for 1992, or $1.67 per share compared to net income of $5.5 million, or 27 cents per share, in 1991. Year-to-Date Results
 In 1992, income from operations, excluding net realized capital gains was $95.3 million, or $4.62 per share. In 1991, income from operations, excluding net realized capital gains and the "fresh start" benefit was $29.2 million, or $1.41 per share.
 The company's combined ratio, including policy holders' dividends was 102.7 percent in 1992 compared to 109.3 percent in 1991 and 100.9 percent in the second quarter of 1992. Net weather-related catastrophes for the first nine months were approximately $30 million for both 1992 and 1991, adding 2.5 points to the combined ratio.
 Net investment income before taxes was $158.0 million in 1992, an increase of 6.9 percent over net investment income of $147.8 million in 1991.
 Net premiums written increased 3.4 percent, while net premiums earned increased 2.4 percent in the same period. A Review of the Third Quarter's Results
 For the third quarter of 1992, net income from operations, excluding net realized capital gains, was $28.5 million, or $1.38 per share. Citizens Insurance Company of America, our Michigan subsidiary, contributed income of $11 million, or 53 cents per share, for the third quarter. In 1991, income from operations excluding net realized capital gains and the "fresh start" benefit was $3.4 million, or 16 cents per share. Improved underwriting results in the personal lines was the primary reason for the growth in earnings. Premium rate increases during the past year contributed to the improved results in the third quarter. Additionally, 1991 included significant reserve strengthening on our voluntary liability lines of business.
 The company's combined ratio, including policy holders' dividends, was 106.3 percent in the third quarter of 1992 compared to 111.8 percent in 1991. Net weather-related catastrophes including the impact from Hurricane Andrew, were $11.6 million in 1992, adding 2.8 points to the combined ratio. This compares favorably to $15.3 million in 1991, which added 3.8 points to the combined ratio.
 Net investment income increased 5.1 percent over the third quarter of 1991. The decline in interest rates has been offset by cash flows from operations.
 Net premiums written increased 3.2 percent over the third quarter of 1991. Commercial lines premiums continue to decline in the face of competition while personal lines premium growth has more than offset this decline. A Review of The Balance Sheet
 Fixed maturity investments represented 94 percent of total invested assets of $2.9 billion. On Sept. 30, 1992, the carrying value of bonds whose credit rating had fallen below investment grade was $54.4 million, or 2.0 percent of invested assets. This has not changed significantly from year-end 1991. The estimated market value of these bonds is approximately $2.0 million higher than the carrying value. There are no investments in real estate or mortgages secured by real estate.
 Shareholders' equity increased $30.9 million in the third quarter of 1992 from $903.4 million ($43.79 per share) at June 30, 1992, to $934.3 million ($45.29 per share) at Sept. 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".
 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.; and Citizens Management, Inc.
 THE HANOVER INSURANCE COMPANY
 Quarterly Results
 Quarter Sept. 30: 1992 1991
 Net income $34,506,000 $5,463,000
 Earnings per share(a) $1.67 27 cents
 Average number of shares 20,632,000 20,632,000
 Nine months Sept. 30: 1992 1991
 Net income $107,662,000 $32,986,000
 Earnings per share(a) $5.22 $1.60
 Average number of 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:
 Y-T-D 3rd Quarter
 1992 1991 1992 1991
 Net realized gain
 on investments
 net of applicable
 federal income taxes 60 cents 12 cents 29 cents 9 cents
 -0- 10/26/92
 /CONTACT: Henry St. Cyr, Hanover investor relations, 508-855-2959/
 (HINS) CO: The Hanover Insurance Company ST: Massachusetts IN: FIN SU: ERN


CH -- NE017 -- 4860 10/26/92 13:47 EST
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Date:Oct 26, 1992
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