Hanover Estimates $85 Million Catastrophe Loss for Q2

July 14, 2010

Worcester, Mass.-based The Hanover estimated its pre-tax losses resulting from catastrophe events in the second quarter of 2010 to be approximately $85 million.

The majority of the losses were associated with six significant events, including two severe hail and wind storms in Oklahoma in May, as well as hail and thunderstorm events in Michigan, Tennessee, Ohio and Illinois in April and June, according to the company.

Frederick H. Eppinger, chief executive officer, said the catastrophe losses will add about 12 points to the insurer’s combined ratio for the quarter.

The impact of the unusually bad weather far exceeds the 3.2 points that catastrophe losses added on average to the company’s second quarter combined ratio over the last 10 years, or the 3.3 points added on average to its annual combined ratio over the same period.

“While this is disappointing, we know weather is going to have an adverse impact on our business from time to time,” said Eppinger.

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