The Midland Company, an Ohio-based provider of specialty insurance products and services, announced its losses to date from Hurricane Charley.
“Widespread power outages and the fact that many residents spend less time in Florida during the summer months may have made it difficult for victims of the storm to file claims. As a result, it’s too soon to say with certainty what the ultimate financial impact on Midland will be,” according to John Hayden, president and CEO. “Through mid-day on Wednesday, August 18, 2004, losses of approximately $4.0 million from Hurricane Charley had been reported to the company. Given the favorable results that we continue to experience in our core lines of business, our profit outlook for the remainder of the year is virtually unchanged.”
Hayden added that, “Fortunately, the strong underwriting results we were experiencing prior to the storm should help mitigate the bottom line impact of the hurricane. So far in the third quarter, we’ve seen a continuation of the encouraging results experienced in the first half of the year in our site- built dwelling, motorcycle, watercraft and manufactured housing lines of business,” he said. “Those results will help temper the financial impact of Charley on our operating results.”
American Modern Insurance Group, Midland’s insurance subsidiary, has set up catastrophe claim offices in Lakeland, Florida and Lake City, Florida. The company currently has 21 employee adjusters manning the on-site offices to process claims and get customers back into their homes as quickly as possible.
“Given the level of catastrophe losses that we’ve experienced in the third quarter and assuming normalized weather throughout the remainder of the year, we reaffirm our full-year combined ratio to be in the targeted range of 96.5 to 98.0 percent and we would also reaffirm our previously reported full-year earnings per share guidance in the range of $2.40 to $2.60 per share, which includes 18 cents of capital gains realized through June 30, 2004,” Hayden added.
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