(RTTNews) - Hanover Insurance Group, Inc. (THG: News ) Monday reported a profit for the third quarter, compared to a loss last year, reflecting higher property and casualty revenues as well as lower interest expense on corporate debt and pre-tax catastrophe losses.

Income from continuing operations for the third quarter was $48.6 million, compared to a loss of $43.5 million in the previous year.

Net income was $49.7 million or $0.97 per share, compared to a loss of $61.8 million or $1.21 per share last year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Net premiums written for the quarter were $688.8 million, up 5.7% from the prior-year quarter.

Total property and Casualty revenues for the quarter increased to $73.6 million from $13.8 million a year ago. Segment income after tax was $45.3 million or $0.89 per share, compared to $3.3 million or $0.07 per share in the prior-year quarter.

Personal Lines pre-tax segment income was $27.4 million for the third quarter of 2009, compared to $18.1 million in the third quarter of 2008. Commercial Lines pre-tax segment income was $38.7 million in the third quarter of 2009, compared to a loss of $6.6 million last year. Other property & casualty's pre-tax segment income was $7.5 million, compared to $2.3 million in the prior-year quarter.
Pre-tax catastrophe losses for the third quarter were $24.7 million, compared to $98.2 million in the prior-year quarter. Excluding the pre-tax net impact of catastrophes, property and casualty pre-tax segment income would have been $98.3 million in the third quarter of 2009, compared to $112.0 million in the third quarter of 2008.

Income tax benefit on non-segment income for the quarter was $3.1 million, compared to an expense of $0.4 million in the previous year.

For the third quarter of 2008, the company reported net realized investment losses of $52.8 million.

For the nine-month period, net income was $139.9 million or $2.72 per share, compared to a loss of $13.5 million or $0.26 per share last year.

The company noted that it has $5.3 billion in cash and investment assets at September 30, 2009, including cash and investment assets associated with the discontinued accident and health business.

THG closed Monday's regular trading at $41.80, down 0.27 or 0.64%, on a volume of 299K shares on the NYSE.

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by RTT Staff Writer

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