3 More Midwest Insurers Issue Charley Loss Estimates

August 31, 2004

Three more insurers issued their loss estimates related to Hurricane Charley, which hit the Southeastern United States three weeks ago.
Springfield, Ill.-based insurer Horace Mann Educators Corp. estimates its financial impact from Hurricane Charley, net of anticipated reinsurance, will total about $12 million to $14 million pretax. The estimate’s relatively narrow range is due to the company’s participation in the Florida Hurricane Catastrophe Fund and anticipated recoveries from an underlying catastrophe reinsurance program.

“As a result of lower than normal catastrophe losses in the first half of 2004 and continuing favorable non-catastrophe property and casualty underwriting results, our earnings outlook for the full year—net income before realized investment gains and losses of between $1.45 and $1.55 per share—is unchanged by the estimated impact of Hurricane Charley,” said CEO Louis G. Lower II.

Cincinnati-based American Financial Group Inc., the parent company of the Great American Insurance Group, estimated its Charley-related losses at about $8 million, or 10 cents per share, net of reinsurance.

Substantially all of the claims reported thus far are from commercial policies covering businesses located in Florida. The company reiterated its 2004 core earnings guidance of $2.85 to $3.10 per share, including the impact of the hurricane losses.

Meanwhile, Southfield, Mich.-based Meadowbrook Insurance Group said it does not expect its net after-tax losses to exceed $50,000.
“Generally, our programs avoid geographic concentration of risks that might lead to natural or intentionally caused catastrophic events,” Meadowbrook CEO Robert S. Cubbin explained in a statement.

Topics Carriers Catastrophe Profit Loss Hurricane

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