The Commerce Group Inc., a Webster-based insurance company, reported that its second quarter net earnings had fallen to $41.5 million from $58.6 million in the same period a year ago.
The group attributed the earnings decrease to shrinking cash reserves, decreases in earned premiums due to state mandated rate decreases in and outside Massachusetts, and increases in bodily injury claim severity.
Commerce also said it saw higher expenses related to the agent stock option program at its American Commerce Insurance Co. division.
The group reported earned premiums of $453.5 million for the quarter, up from $414.5 million a year ago. Written premiums were down to $469.7 million from $476.6 million last year, the company said.
