Worcester’s The Hanover Insurance Group Inc. has reported $37.1 million in net income in 2011, slipping from $154.8 million reported a year earlier.

In the fourth quarter, the insurer reported $49.3 million in net income, also down from $58.4 million in the fourth quarter of 2010.

Segment income before interest expense and taxes was $77.1 million in the fourth quarter of 2011, which included $55.6 million in pre-tax catastrophe losses. In the fourth quarter 2010, the company reported segment income before interest expense and taxes of $76.2 million, which included $16.8 million in pre-tax catastrophes losses.

"We are pleased to report solid results for the quarter," said Frederick H. Eppinger, chief executive officer at The Hanover. "Our performance reflects the benefit of our strategy to improve the geographic diversification and mix of our business, especially with respect to commercial lines."

He added: "2011 was an unprecedented year, as it was impacted by global catastrophes, low interest rates and a challenging market environment. However, we continued to improve our position in the market. We enhanced our product portfolio, grew in targeted states and strengthened our already strong position with winning agents. We also integrated Chaucer into our organization, further diversifying our business and penetrating attractive specialty markets.