Posted on 14 Jul 2010
The Hanover Insurance Group, Inc. on Tuesday announced estimated second quarter losses from hail, wind and other weather-related catastrophe events.
The Hanover estimated its pre-tax losses resulting from catastrophe events in the second quarter of 2010 to be approximately $85 million. The majority of the losses were associated with six significant events, including two severe hail and wind storms in Oklahoma in May, as well as hail and thunderstorm events in Michigan, Tennessee, Ohio and Illinois in April and June.
“We estimate that our catastrophe losses will add approximately 12 points to our combined ratio for the second quarter,” said Frederick H. Eppinger, chief executive officer at The Hanover. “Our experience reflects the impact of unusually bad weather, and far exceeds the 3.2 points that catastrophe losses added on average to our second quarter combined ratio over the last 10 years, or the 3.3 points they have added on average to our annual combined ratio over the same period.
“While this is disappointing, we know weather is going to have an adverse impact on our business from time to time. We also recognize the toll the catastrophes have taken on many of our policyholders, and we are committed to helping them recover as quickly as possible. We will be there when our agent partners and their customers need us, and we believe that our performance after these types of events ultimately will build value in our business that benefits all of our constituents,” said Eppinger.