The Hanover Insurance Group is expected to post pre-tax losses of around $85m for the second quarter of 2010 resulting from hail, wind and other weather-related catastrophe events.
According to Hanover, the majority of losses were associated with six events including two hail and wind storms in Oklahoma in May, and also hail and thunderstorm events in Michigan, Tennessee, Ohio and Illinois in April and June.
The company expects catastrophe losses to add around 12 points to its combined ratio for the second quarter. The impact of bad weather exceeds 3.2 points that catastrophe losses added on average to its second quarter combined ratio over last 10 years, or 3.3 points it has added on average to its annual combined ratio over the same period.
Frederick Eppinger, CEO of The Hanover, said: “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.”