Massachusetts-based Allmerica Financial Corporation has incurred approximately $19 million in pre-tax catastrophe losses to date in the second quarter.
The losses are primarily the result of hail, high winds, and tornadoes, principally in the Midwest and South from April 1 through May 11, 2003. Combined with the $11.2 million in pre-tax catastrophe losses incurred in the first quarter, the company estimates that year-to-date pre-tax catastrophe losses for 2003 have been approximately $30.2 million.
Allmerica assumes a certain amount of annual catastrophe losses when it develops its annual budgets, and for 2003 such losses were assumed to be approximately three percent of assumed premium for the year. This level of assumed catastrophe losses varies by quarter due to seasonal variations in expected loss patterns.
The $19 million of pre-tax catastrophe losses incurred to date in the second quarter approximates the assumed amount for the full second quarter, and the year-to-date pre-tax amount of $30.2 million is below the assumed level for the first and second quarters of 2003 combined.
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