The Hartford and Hanover Insurance Group released their Superstorm Sandy loss estimates today, with both estimates reaching to dollar figures in the hundreds of millions.
Hartford, Conn.-based The Hartford says its initial gross loss and loss adjustment expenses estimate from Sandy is approximately $370 million, before tax.
Losses and loss adjustment expense net of reinsurance are estimated at $350 million, before tax, the company says.
About 60 percent of the loses are in the property and casualty commercial segment and 40 percent in personal lines.
Fourth quarter 2012 net-catastrophe losses through Nov. 30 are currently estimated to be approximately $230 million, after tax.
The Hartford cautioned that the catastrophe numbers from Sandy are subject to change “due to the number of affected policyholders, the nature of the claims, the preliminary assumptions used to estimate gross losses and other factors.” The ultimate amount, the carrier says, “could be materially different” from the initial estimate.
Worcester, Mass.-based The Hanover Insurance Group says it estimates the after-tax earnings impact of Sandy will be in the range of $120 million to $140 million.
Based on its preliminary estimates, the company says “it is unlikely to exceed the retention on its domestic property and catastrophe reinsurance program.”
The company adds, “The domestic losses are primarily from commercial multiple peril and homeowners policies in the states of New York and New Jersey. Given the complexity of the claims process and the nature of the damage caused by Sandy, the actual amount of losses from this storm may differ materially from current estimates.”
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
