NU Online News Service, July 14, 12:20 p.m. EDT
Insurers Hanover Insurance group, State Auto Financial Corp. and Argo Group International Holdings Ltd. announced tens of million of dollars in losses due to catastrophes in the 2010 second quarter.
Hail, wind and other weather-related events hit Hanover for $85 million in second quarter losses, which will add about 12 points to the company's combined ratio during that time, said Chief Executive Officer Frederick H. Eppinger.
Mr. Eppinger said the loss activity during the second quarter far exceeds the Worcester, Mass.-based company's average of 3.2 points added to the second quarter combined ratio over the last decade.
Losses were from six events, including two severe hail and wind storms in Oklahoma in May and hail and thunderstorms in Michigan, Ohio and Illinois during the three-month span, Hanover said.
Columbus, Ohio-based State Auto said it felt the brunt of 13 catastrophes in the second quarter, resulting in between $55 million and $60 million in catastrophe losses--above its five-year second quarter average of $40 million.
Chief Executive Bob Restrepo said 60 percent of the weather-related losses were in four of State Auto's largest operating states: Indiana, Minnesota, Ohio and Tennessee.
For the state of Ohio, severe weather, including a strong tornado in early June, caused at least $22.1 million in damages, according to estimates from the Ohio Insurance Institute (OII), a state trade association.
About 2,830 homeowners claims, 525 automobile claims and 275 business claims were filed. Losses reported by the insurers were as high as $4.6 million, OII said.
About 14.6 percent of State Auto's direct written premiums are derived from Ohio, according to Highline Data, part of the National Underwriter Company.
Storms in the United States, as well as the Deepwater Horizon oil rig incident and additional reports related to the Chilean earthquake in February, are expected to result in between $20 million and $25 million is pre-tax losses for specialty insurer and reinsurer Argo of Hamilton, Bermuda.
State Auto will release its second quarter earnings the morning of July 29. Hanover will release its earnings on Aug. 4 after the market closes. Argo has not announced a date for the release of its second quarter earnings.
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