The Hanover Insurance Group Inc. announced its preliminary loss estimate from Superstorm Sandy. The Worcester, Mass.-based insurer said it currently estimates the net after-tax earnings impact of the storm to be in the range of $120 to $140 million.
Based on preliminary estimates, the company said the losses are unlikely to exceed the retention on its domestic property catastrophe reinsurance program. The domestic losses are primarily from commercial multiple peril and homeowners policies in New York and New Jersey.
Given the complexity of the claims process and the nature of the damage caused by Sandy, the actual amount of losses from this storm may differ materially from current estimates, The Hanover said.
“While this storm impacted a major market for us, our initial review and analysis of losses, relative to the level of our market presence, demonstrated that the diversification strategy and exposure management efforts we’ve implemented over the last several years have been effective,” said The Hanover CEO Frederick Eppinger.
“The scope of this storm was unprecedented and caused tremendous hardship for many. We continue to support our agents and their customers, ensuring the highest level of service as families and businesses get back on their feet in the wake of this event. Our entire claims organization is committed to resolving claims effectively and efficiently, and we are proud of the great work they are doing,” CEO Eppinger said.