The Hanover Insurance Group, Inc. announced a preliminary loss estimate from Storm Sandy, which produced widespread damage along the East Coast of the United States in late October.
The Hanover currently estimates the net after-tax earnings impact of this storm to be in the range of $120 to $140 million, or $2.65 to $3.09 per share.
The majority of losses from Storm Sandy resulted from The Hanover’s domestic commercial and personal lines segments. Based on these preliminary estimates, the company believes it is unlikely to exceed the retention on its domestic property catastrophe reinsurance program. 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.
“While this storm impacted a major market for us, our initial review and analysis of losses, relative to the level of our market presence, demonstrated that the diversification strategy and exposure management efforts we’ve implemented over the last several years have been effective,” said Frederick H. Eppinger, chief executive officer at The Hanover.
“The scope of this storm was unprecedented and caused tremendous hardship for many. We continue to support our agents and their customers, ensuring the highest level of service as families and businesses get back on their feet in the wake of this event. Our entire claims organization is committed to resolving claims effectively and efficiently, and we are proud of the great work they are doing,” Eppinger said.
Source: The Hanover Insurance Group