The Hanover Insurance Group Inc. (THG, Financial) filed Quarterly Report for the period ended 2010-06-30.
The Hanover Insurance Group Inc. has a market cap of $1.99 billion; its shares were traded at around $44.42 with a P/E ratio of 13.7 and P/S ratio of 0.7. The dividend yield of The Hanover Insurance Group Inc. stocks is 2.2%. The Hanover Insurance Group Inc. had an annual average earning growth of 12.1% over the past 5 years.THG is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, NWQ Managers of NWQ Investment Management Co, Chuck Royce of Royce& Associates, Diamond Hill Capital of Diamond Hill Capital Management Inc.
Our investment holdings totaled approximately $5.3 billion at June 30, 2010 and consist primarily of investment grade fixed maturities with a net unrealized gain position of approximately $224.1 million, and cash and cash equivalents.
Our consolidated net income for the second quarter of 2010 was $2.3 million, compared to $64.4 million for the same period in 2009. The $62.1 million decrease in income is primarily due to a decline in after-tax segment income of $42.2 million, primarily driven by increased catastrophe losses, lower favorable development of prior years loss and LAE reserves and higher underwriting expenses, partially offset by favorable current accident year results. Results in 2009 included a $34.3 million pre-tax gain ($22.3 million, net of taxes) associated with our tender offer whereby we repurchased a portion of our mandatorily redeemable preferred securities and our senior debentures during the second quarter of 2009 (see also Significant Transactions).
Our consolidated net income for the first six months of 2010 was $44.1 million, compared to $90.2 million for the same period in 2009. The $46.1 million decrease is primarily due to a $36.6 million decline in after-tax segment income, primarily driven by increased catastrophe losses, lower favorable development of prior years loss and LAE reserves, and higher underwriting expenses, partially offset by more favorable current accident year results. Results in 2009 included the $34.3 million pre-tax gain ($22.3 million net of taxes) related to the aforementioned tender offer which we recognized in the first half of 2009. In addition, earnings from our discontinued operations decreased by $7.2 million. Partially offsetting these decreases was a $20.8 million improvement in our net realized investment position from a loss of $9.7 million in the first half of 2009 to a gain of $11.1 million in the first half of 2010.
The Property and Casualty groups segment income decreased $61.7 million, or 80.9%, to $14.6 million, in the second quarter of 2010, compared to $76.3 million in the second quarter of 2009. Catastrophe related activity increased by $54.8 million in the quarter, to $85.0 million, from $30.2 million in the same period of 2009. Excluding the impact of catastrophe related activity, earnings would have decreased by $6.9 million. This decrease was primarily due to lower favorable development on prior years loss and LAE reserves and higher expenses, partially offset by more favorable current accident year results. Favorable development on prior years loss and LAE reserves decreased by approximately $20 million. Additionally, underwriting and other operating expenses increased, primarily due to costs associated with our Commercial Lines westward expansion initiative and increased costs in our specialty business, including our recently acquired subsidiaries, and higher technology costs, partially offset by lower pension costs. These declines were partially offset by more favorable current accident year results of approxima
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The Hanover Insurance Group Inc. has a market cap of $1.99 billion; its shares were traded at around $44.42 with a P/E ratio of 13.7 and P/S ratio of 0.7. The dividend yield of The Hanover Insurance Group Inc. stocks is 2.2%. The Hanover Insurance Group Inc. had an annual average earning growth of 12.1% over the past 5 years.THG is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, NWQ Managers of NWQ Investment Management Co, Chuck Royce of Royce& Associates, Diamond Hill Capital of Diamond Hill Capital Management Inc.
Highlight of Business Operations:
With respect to segment results, during the first six months of 2010, our pre-tax segment earnings declined from the same period in 2009. Pre-tax catastrophe losses increased $51.8 million, to $119.4 million for the first six months of 2010, compared to $67.6 million for the same period in 2009. The industry experienced a high level of catastrophes during the past few months, and we were no exception. We recorded catastrophe losses of approximately $85 million in the second quarter of 2010, which were associated with severe hail and wind storms in Oklahoma and Michigan, as well as wind, hail and flooding in Tennessee, Ohio, Illinois and other states. In addition, decreased favorable development on prior years loss and loss adjustment expense (LAE) reserves and higher underwriting expenses contributed to the overall decline. These results were partially offset by more favorable current accident year results.Our investment holdings totaled approximately $5.3 billion at June 30, 2010 and consist primarily of investment grade fixed maturities with a net unrealized gain position of approximately $224.1 million, and cash and cash equivalents.
Our consolidated net income for the second quarter of 2010 was $2.3 million, compared to $64.4 million for the same period in 2009. The $62.1 million decrease in income is primarily due to a decline in after-tax segment income of $42.2 million, primarily driven by increased catastrophe losses, lower favorable development of prior years loss and LAE reserves and higher underwriting expenses, partially offset by favorable current accident year results. Results in 2009 included a $34.3 million pre-tax gain ($22.3 million, net of taxes) associated with our tender offer whereby we repurchased a portion of our mandatorily redeemable preferred securities and our senior debentures during the second quarter of 2009 (see also Significant Transactions).
Our consolidated net income for the first six months of 2010 was $44.1 million, compared to $90.2 million for the same period in 2009. The $46.1 million decrease is primarily due to a $36.6 million decline in after-tax segment income, primarily driven by increased catastrophe losses, lower favorable development of prior years loss and LAE reserves, and higher underwriting expenses, partially offset by more favorable current accident year results. Results in 2009 included the $34.3 million pre-tax gain ($22.3 million net of taxes) related to the aforementioned tender offer which we recognized in the first half of 2009. In addition, earnings from our discontinued operations decreased by $7.2 million. Partially offsetting these decreases was a $20.8 million improvement in our net realized investment position from a loss of $9.7 million in the first half of 2009 to a gain of $11.1 million in the first half of 2010.
The Property and Casualty groups segment income decreased $61.7 million, or 80.9%, to $14.6 million, in the second quarter of 2010, compared to $76.3 million in the second quarter of 2009. Catastrophe related activity increased by $54.8 million in the quarter, to $85.0 million, from $30.2 million in the same period of 2009. Excluding the impact of catastrophe related activity, earnings would have decreased by $6.9 million. This decrease was primarily due to lower favorable development on prior years loss and LAE reserves and higher expenses, partially offset by more favorable current accident year results. Favorable development on prior years loss and LAE reserves decreased by approximately $20 million. Additionally, underwriting and other operating expenses increased, primarily due to costs associated with our Commercial Lines westward expansion initiative and increased costs in our specialty business, including our recently acquired subsidiaries, and higher technology costs, partially offset by lower pension costs. These declines were partially offset by more favorable current accident year results of approxima
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