Ohio-based State Auto Financial Corporation estimates that storms would contribute between $20 to $22 million to losses in the second quarter, adding 9 to 10 direct loss ratio points to second quarter results.
The company stated that high winds, tornados and hail caused severe damage in 13 of its operating states between April 27 and May 1. An F5 tornado that touched down in La Plata, Md. proved to be the most serious single event, resulting in claims in excess of $8 million.
“Conclusively estimating the ultimate loss from storms such as these is difficult because of uncertainties surrounding the impact of business interruption, debris removal and other extra expense coverages,” State Auto chairman Robert Moone commented. “Likewise, the ‘long tail’ nature of hailstorm losses complicates the process. However, we are far enough along with our claims work to be comfortable with these loss projections.”
Moone praised the work of the State Auto claims group and agency force.
“This is the side of our business that matters the most. We put a very effective team in the field—thorough and professional in every sense. I’m always impressed that such a major effort can be that coordinated and executed so efficiently.”
Topics Auto Profit Loss Windstorm
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