NU Online News Service, July 30, 12:26 p.m. EDT
Harleysville, Pa.-based insurer Harleysville Group Inc. said it expects second-quarter catastrophe losses will increase its combined ratio by 3.8 points and reduce operating income.
The commercial and personal insurance company experienced "significantly greater frequency" of severe weather with 12 storms classified as catastrophes, said Michael L. Browne, chief executive officer, in a statement.
In comparison, catastrophe losses last year during the second quarter added 1.7 points to an overall 99.5 statutory combined ratio. Harleysville recorded net income of $20.1 million for the second quarter of 2009.
Harleysville said it experienced an "unusually" high number of catastrophe losses in first-quarter 2010, reporting a 107.8 combined ratio and $8 million in net income.
The insurer of small and midsize business is scheduled to release second-quarter earnings on Aug. 6 and hold a conference call on Aug. 9.
Yesterday, several insurers said storm losses contributed to sending their combined ratios over 100. State Auto Financial Corp. reported a 2010 second-quarter net loss of $26.2 million, driven by catastrophe losses of $57.5 million. The company's combined ratio for the second quarter was 115.2.
EMC Insurance Group Inc. said second-quarter storm losses added 17.2 points to its combined ratio of 108.3, and commercial and personal insurer Selective Insurance Group Inc. reported a combined ratio of 100.9, with 4.5 points added from $16 million in storm losses.
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