Meadowbrook Insurance, a Michigan-based specialty property and casualty insurance holding firm, has said that higher than average storm losses of about $12.5m pre-tax will hurt its second-quarter results.
The insurer said the estimated amount is about double the normal loss ($6.3m) total before taxes and will reduce earnings by about $0.08 per share in the quarter.
None of the losses from a dozen storms was severe enough to trigger the company’s catastrophe reinsurance program as no single event resulted in losses greater than $2.4m.
Meadowbrook president and CEO Robert Cubbin said the underwriting approach to property exposures focuses on spread of risks, avoiding those areas most frequently exposed to severe weather and maintaining a low catastrophe reinsurance retention level.
"Our relatively lower than industry exposure to property catastrophes reduced our potential for even greater losses despite the significant number of severe storms that devastated many parts of the country," Cubbin said.