The Hartford said that it expects to report current accident year catastrophe losses of $280 million to $300 million before tax in the second quarter of 2012, as compared to $447 million before tax in the second quarter of 2011.
The company said second quarter 2012 losses resulted from 13 catastrophe events, including several major hailstorms and the June 28 storms that produced widespread losses in the Ohio River Valley and Mid-Atlantic states.
The company also announced its estimate of property/ casualty prior accident year loss reserve development, including the results of its annual asbestos and environmental (A&E) reserve studies. Second quarter 2012 financial results are expected to include unfavorable P/C prior accident year loss reserve development of approximately $45 million to $55 million, before tax ($30 million to $35 million, after tax). This includes approximately $50 million, before tax ($33 million after tax), for unfavorable A&E loss reserve development as compared with unfavorable asbestos loss reserve development of $290 million, before tax ($189 million, after tax) in the second quarter of 2011. The second quarter 2012 A&E unfavorable loss reserve development is largely due to higher estimates for certain existing asbestos policyholders.
In a recent report, Munich Re said that natural catastrophe losses were relatively moderate in the first six months of 2012 for the industry as a whole. It cited $12 billion of global insured losses from catastrophes, a figure dominated by tornadoes and wildfires and other natural hazard events in the U.S. The insured losses for the first six months of 2012 were also well below the 10-year global average of $19.2 billion.
The Hartford said it will release its second quarter 2012 financial results on Aug. 1, 2012.
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