HANOVER’S INCOME RISES 11.5% ON IMPROVED UNDERWRITING

US property/casualty insurer Hanover Insurance Group’s second-quarter net earnings rose 11.5% to $128.5m, as underwriting income grew 64% to $63.0m on a near halving of catastrophe losses. Adjusted earnings per share rose to $2.85 from $1.63 and beat analysts’ forecast of $2.24. The improved underwriting result led to a 1.8-point improvement in the combined ratio to 94.4%. Gross written premiums for the quarter grew 9.7% to $1.34bn, with increases in both commercial and personal lines. For the first half of the year, the Massachusetts-based group’s net income nearly tripled to $221.2m, reflecting a 19.7% increase in investment income to $152.4m and a positive $166.5m swing in realised and unrealised investment gains. The six-month combined ratio added 0.9 points to 96.6%, as underwriting income fell 19.2% to $72.3m. Gross written premiums grew 6.6% to $2.68bn.