Eastern Insurance (EIHI) 8-K/A Pro Forma Financial Statements

Exhibit 99.1

PRO FORMA FINANCIAL STATEMENTS

The following Unaudited Pro Forma Statements of Operations give effect to the disposition by Eastern Insurance Holdings, Inc. (“EIHI”) of Eastern Life and Health Insurance Company (“ELH”). These pro forma presentations have been prepared utilizing historical financial statements and notes thereto, as well as pro forma adjustments as described in the Notes to the Unaudited Pro Forma Financial Statements. A Pro Forma Balance Sheet has not been presented as EIHI’s June 30, 2010 balance sheet, filed with the Securities and Exchange Commission on August, 5, 2010, reflects the sale of ELH.

The Unaudited Pro Forma Statements of Operations for the three and six months ended June 30, 2010 and 2009 and for the years ended December 31, 2009, 2008 and 2007 include the operating results of EIHI and ELH assuming the disposition occurred on January 1, 2007. The disposition has been accounted for as a discontinued operation.

The Unaudited Pro Forma Statements of Operations are presented for illustrative purposes only and do not purport to represent what EIHI’s results of operations or financial position would have been had the disposition of ELH occurred on the dates indicated or the results of operations or financial position which may be obtained in the future. Such pro forma financial statements are qualified in their entirety by reference to, and should be read in conjunction with, the historical audited consolidated financial statements of EIHI. The pro forma financial statements should also be read in conjunction with the accompanying notes thereto.

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Three Months Ended June 30, 2010

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)			ELH (b)		Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	35,004		$	9,086	$	—		$	25,918
Net investment income		1,120			146		—			974
Change in equity interest in limited partnerships		35			40		—			(5	)
Net realized investment gains (losses)		1,762			1,417		1,065	(c)		(720	)
Other revenue		147			2		—			145
Total revenue		38,068			10,691		1,065			26,312
Expenses
Losses and loss adjustment expenses incurred		28,103			7,425		—			20,678
Acquisition and other underwriting expenses		3,858			1,320		—			2,538
Other expenses		7,680			1,785		620	(d)		5,275
Amortization of intangibles		321			—		—			321
Policyholder dividend expense		221			—		—			221
Segregated portfolio dividend expense		(885	)		—		—			(885	)
Total expenses		39,298			10,530		620			28,148
Income (loss) before income taxes		(1,230	)		161		445			(1,836	)
Income tax expense (benefit)		219			41		303			(125	)
Net income (loss)	$	(1,449	)	$	120	$	142		$	(1,711	)
Basic earnings per share	$	(0.16	)						$	(0.19	)
Diluted earnings per share	$	(0.16	)						$	(0.19	)
Basic shares outstanding		9,048,929								9,048,929
Diluted shares outstanding		9,048,929								9,048,929

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Three Months Ended June 30, 2009

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)			ELH (b)		Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	34,018		$	8,927	$	—		$	25,091
Net investment income		1,728			415		—			1,313
Change in equity interest in limited partnerships		443			131		—			312
Net realized investment gains (losses)		(140	)		830		—			(970	)
Other revenue		124			—		—			124
Total revenue		36,173			10,303		—			25,870
Expenses
Losses and loss adjustment expenses incurred		21,297			5,966		—			15,331
Acquisition and other underwriting expenses		4,376			1,352		—			3,024
Other expenses		6,344			1,522		(125	)(e)		4,947
Amortization of intangibles		433			—		—			433
Policyholder dividend expense		(62	)		—		—			(62	)
Segregated portfolio dividend expense		87			—		—			87
Total expenses		32,475			8,840		(125	)		23,760
Income before income taxes		3,698			1,463		125			2,110
Income tax expense		721			486		44			191
Net income	$	2,977		$	977	$	81		$	1,919
Basic earnings per share	$	0.32							$	0.20
Diluted earnings per share	$	0.32							$	0.20
Basic shares outstanding		9,008,967								9,008,967
Diluted shares outstanding		9,008,967								9,008,967

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Six Months Ended June 30, 2010

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)			ELH (b)		Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	69,526		$	18,262	$	—		$	51,264
Net investment income		2,795			469		—			2,326
Change in equity interest in limited partnerships		327			73		—			254
Net realized investment gains		3,096			1,754		1,065	(c)		277
Other revenue		296			5		—			291
Total revenue		76,040			20,563		1,065			54,412
Expenses
Losses and loss adjustment expenses incurred		51,455			13,626		—			37,829
Acquisition and other underwriting expenses		8,537			2,713		—			5,824
Other expenses		14,255			3,272		614	(d)		10,369
Amortization of intangibles		642			—		—			642
Policyholder dividend expense		399			—		—			399
Segregated portfolio dividend expense		(702	)		—		—			(702	)
Total expenses		74,586			19,611		614			54,361
Income before income taxes		1,454			952		451			51
Income tax expense		1,001			301		305			395
Net income (loss)	$	453		$	651	$	146		$	(344	)
Basic earnings per share	$	0.05							$	(0.04	)
Diluted earnings per share	$	0.05							$	(0.04	)
Basic shares outstanding		9,081,716								9,081,716
Diluted shares outstanding		9,130,773								9,130,773

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Six Months Ended June 30, 2009

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)			ELH (b)		Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	67,756		$	17,818	$	—		$	49,938
Net investment income		3,672			874		—			2,798
Change in equity interest in limited partnerships		277			58		—			219
Net realized investment gains (losses)		(1,739	)		1,292		—			(3,031	)
Other revenue		363			—		—			363
Total revenue		70,329			20,042		—			50,287
Expenses
Losses and loss adjustment expenses incurred		43,884			12,614		—			31,270
Acquisition and other underwriting expenses		8,956			2,716		—			6,240
Other expenses		12,876			3,044		(250	)(e)		10,082
Amortization of intangibles		866			—		—			866
Policyholder dividend expense		123			—		—			123
Segregated portfolio dividend expense		(652	)		—		—			(652	)
Total expenses		66,053			18,374		(250	)		47,929
Income before income taxes		4,276			1,668		250			2,358
Income tax expense		1,854			522		88			1,244
Net income	$	2,422		$	1,146	$	162		$	1,114
Basic earnings per share	$	0.27							$	0.12
Diluted earnings per share	$	0.26							$	0.12
Basic shares outstanding		8,931,101								8,931,101
Diluted shares outstanding		9,046,738								9,046,738

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Year Ended December 31, 2009

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)		ELH (b)			Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	134,986	$	35,937		$	—		$	99,049
Net investment income		7,097		1,590			—			5,507
Change in equity interest in limited partnerships		1,261		195			—			1,066
Net realized investment gains (losses)		952		3,021			—			(2,069	)
Other revenue		645		2			—			643
Total revenue		144,941		40,745			—			104,196
Expenses
Losses and loss adjustment expenses incurred		84,552		24,936			—			59,616
Acquisition and other underwriting expenses		18,183		5,389			—			12,794
Other expenses		26,382		6,263			(500	)(e)		20,619
Amortization of intangibles		1,732		—			—			1,732
Policyholder dividend expense		432		—			—			432
Segregated portfolio dividend expense		1,238		—			—			1,238
Total expenses		132,519		36,588			(500	)		96,431
Income before income taxes		12,422		4,157	��		500			7,765
Income tax expense		4,021		1,349			175			2,497
Net income	$	8,401	$	2,808		$	325		$	5,268
Basic earnings per share	$	0.92							$	0.58
Diluted earnings per share	$	0.91							$	0.57
Basic shares outstanding		8,984,644								8,984,644
Diluted shares outstanding		9,051,701								9,051,701

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Year Ended December 31, 2008

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)			ELH (b)			Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	135,807		$	36,723		$	—		$	99,084
Net investment income		9,631			2,578			—			7,053
Change in equity interest in limited partnerships		(3,970	)		(430	)		—			(3,540	)
Net realized investment gains (losses)		(11,117	)		(5,366	)		—			(5,751	)
Other revenue		853			—			—			853
Total revenue		131,204			33,505			—			97,699
Expenses
Losses and loss adjustment expenses incurred		99,188			24,444			—			74,744
Acquisition and other underwriting expenses		18,918			5,602			—			13,316
Other expenses		25,338			5,698			(500	)(e)		20,140
Amortization of intangibles		1,373			—			—			1,373
Policyholder dividend expense		551			—			—			551
Segregated portfolio dividend expense		2,155			—			—			2,155
Total expenses		147,523			35,744			(500	)		112,279
Income (loss) before income taxes		(16,319	)		(2,239	)		500			(14,580	)
Income tax expense (benefit)		1,064			(1,083	)		175			1,972
Net income (loss)	$	(17,383	)	$	(1,156	)	$	325		$	(16,552	)
Basic earnings per share	$	(1.90	)							$	(1.81	)
Diluted earnings per share	$	(1.90	)							$	(1.81	)
Basic shares outstanding		8,954,098									8,954,098
Diluted shares outstanding		8,954,098									8,954,098

Eastern Insurance Holdings, Inc.

Pro Forma Statement of Operations - Sale of ELH

For the Year Ended December 31, 2007

(Unaudited, in thousands, except share and per share data)

	EIHI Consolidated (a)		ELH (b)			Pro Forma Adjustments			EIHI Pro Forma
Revenue
Net premiums earned	$	129,495	$	35,863		$	—		$	93,632
Net investment income		11,669		3,277			—			8,392
Change in equity interest in limited partnerships		759		(39	)		—			798
Net realized investment gains		2,888		1,531			—			1,357
Other revenue		683		—			—			683
Total revenue		145,494		40,632			—			104,862
Expenses
Losses and loss adjustment expenses incurred		73,588		23,253			—			50,335
Acquisition and other underwriting expenses		17,056		5,556			—			11,500
Other expenses		21,801		5,073			(500	)(e)		17,228
Amortization of intangibles		1,738		—			—			1,738
Policyholder dividend expense		543		—			—			543
Segregated portfolio dividend expense		4,423		—			—			4,423
Total expenses		119,149		33,882			(500	)		85,767
Income before income taxes		26,345		6,750			500			19,095
Income tax expense		7,662		1,973			175			5,514
Net income	$	18,683	$	4,777		$	325		$	13,581
Basic earnings per share	$	1.78							$	1.29
Diluted earnings per share	$	1.72							$	1.25
Basic shares outstanding		10,264,369								10,264,369
Diluted shares outstanding		10,604,349								10,604,349

NOTES TO THE UNAUDITED PRO FORMA FINANCIAL STATEMENTS (dollars in thousands)

(a) Represents the historical consolidated statement of operations of EIHI as appropriate.

(b) Reflects the removal of ELH’s statement of operations from the EIHI historical consolidated statement of operations.

(c) Represents the gain on sale of ELH of $645 and gain related to the transfer of ELH’s benefit plan liabilities to EIHI totaling $420. A corresponding loss of $420 is included in ELH’s results of the operations for the three and six months ended June 30, 2010.

The ELH benefit plans were excluded from the transaction and, therefore, the related liabilities were transferred to EIHI.

(d) Represents transaction expenses related to the sale of ELH of $745 and $864 for the three and six months ended June 30, 2010, reduced by corporate overhead allocation of $125 and $250, respectively, to continuing operations.

(e) Represents corporate overhead allocation to continuing operations.