Hanover annual net income up 17%

Grant Welker The Hanover Insurance Group's Worcester campus.

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The Hanover Insurance Group in Worcester is reporting a strong fourth quarter and year, with net income of $51.5 million and $186.2 million, respectively.

Both marks are improvements over the prior year despite a third quarter marred by more than $200 million in catastrophe losses mostly due to Hurricane Harvey and Hurricane Maria.

The year’s income was up from last year’s $155.1 million, and the per share number grew to $4.33 from $3.59.

The company reported a combined ratio of 95.1 percent in the quarter and 98.7 percent in the year, including 3.8 and 7.9 points of catastrophe losses, as well as 0.3 and 0.9 points of favorable prior-year development, respectively.

Catastrophe losses in Hanover's commercial lines for the quarter were $29.5 million, most of which was due to losses from wildfires in California.

Hanover also incurred a one-time tax expense of $22.3 million due to the Republican-backed Tax Cuts and Jobs Act, consisting primarily of a revaluation of deferred tax balances and income taxes on previously untaxed foreign income.

CORRECTION: A previous version of this article incorrectly said Hanover's total catastrophe losses in the fourth quarter were $29.5 million. That figure is only for its commercial lines.