Worcester, Mass.-based Hanover Insurance Group Inc. reportedfirst-quarter net income dropped 8 percent, but the firm's chiefexecutive said he remains optimistic about growth for the rest ofthe year.
|The company reported net income dropped $5 million to $59million, which translated into a 10 cent reduction in earnings pershare to $1.12 compared to the same period last year. The resultsbeat analyst's estimates by 9 cents.
|Earnings were affected by a reported loss on investments of $5million and a drop in property-casualty pretax income of $3 millionto $98 million.
|The company's combined ratio grew 1.2 points to 95 during theperiod.
|During an analyst's conference call today, company executivessaid catastrophe losses in the personal lines area related toweather events caused the loss. Personal lines pretax net impact ofcatastrophes stood at $11 million.
|Net premium written in the quarter rose 3 percent, or $17million, to $629 million.
|During the conference call Frederick H. Eppinger, chiefexecutive officer of Hanover, said he is bullish about the futureprospects for the company over the rest of this year and expectedto see modest growth.
|He said there would be more consolidation among insurers,principally among the larger companies, and that would meanopportunities for Hanover to step in where agents have lost marketsbecause of the consolidations. He also indicated that Hanover wouldlook for its own acquisition opportunities.
|"We have built this company to take advantage of disruption,"said Mr. Eppinger. "One of the best days of my life was when St.Paul and Travelers merged. We were able to acquire a lot of greattalent, and this [Safeco-Liberty Mutual merger] creates an enormousopportunity for us."
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