Worcester-based The Hanover Insurance Group Inc. today reported second-quarter net income of $20.8 million, up dramatically from a net loss of $32.2 million in the same period a year ago.

"Our diversified business delivered profitable results in the quarter, despite the higher than expected catastrophe losses and unfavorable loss development in certain lines," Frederick H. Eppinger, chief executive officer at The Hanover, said in a statement.  "This quarter marks one full year since the acquisition of Chaucer Holdings plc on July 1, 2011.  During this period, Chaucer has delivered strong pre-tax earnings of $88 million, including its highest contribution this quarter, at $30 million.

Eppinger said the company is addressing "the unfavorable development in our U.S. surety and automobile liability lines of business." But he said the company continues to see positive trends in its domestic business.

"Most importantly, we achieved even greater price increases while maintaining strong retention levels. We believe the market and our agents and broker partners will continue to support additional pricing and continued targeted underwriting actions," he said.