NU Online News Service, May 24, 1:41 p.m. EDT
Hanover Insurance Group says it expects between $70 million and $85 million in estimated losses for April.
The Worcester, Mass.-based insurer of businesses and individuals adds that the losses are primarily from April 22-28 storms in Tennessee and Arkansas, as well as other states.
According to a Highline Data ranking of the largest writers of personal-lines insurance in Arkansas, Hanover Insurance Group is 17th with a 1.2 percent market share. The group of insurance companies is 20th in Tennessee with a 0.7 percent market share.
ISO's Property Claims Services defined five catastrophes during April, Hanover points out. Of these, a storm system that produced hundreds of tornadoes during the last week of April was the most significant.
The tornado outbreak from April 22-28 could cause up to $5.5 billion in insurance losses for the industry, says catastrophe risk modeler AIR Worldwide. RMS says losses from April 25-28 could reach $6 billion. EQECAT adds an estimate of up to $5 billion in losses from April 26-28.
Other insurers have already begun to tell investors about potential losses from April. Allstate says it expects to pay $1.4 billion for April storms. Liberty Mutual says it expects up to $450 million in cat losses for April, and Nationwide says its second-quarter operating income will be challenged by losses during the month.
National Security Group Inc. says it expects insured losses in April to top $6.8 million. The Elba, Ala.-based insurer says it expects second-quarter net income to take a $4.2 million hit.
State Auto Financial Corp. expects the April storms to cause up to $85 million in second-quarter catastrophe losses, and Endurance Specialty Holdings says losses for April will be between $45 million and $55 million. Cincinnati Financial Corp. adds its estimate of second-quarter losses in the range of $150 million to $200 million.
Highline Data is a part of Summit Business Media, which also owns National Underwriter.
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