Allmerica Expects $13 Million Loss from Storms

Allmerica Financial Corporation announced that it currently expects to incur approximately $13 million in pre-tax catastrophe losses resulting from severe thunderstorms, hail and tornadoes.

The storms occurred mainly in Michigan between May 20-27, and bring the company’s total estimated pre-tax catastrophe losses to approximately $16 million for the quarter to date, or $0.26 per share after taxes. The anticipated charges will be reflected in the company’s second quarter results.

“Citizens and Hanover activated their catastrophe management team and are responding with prompt claims service to our customers,” stated Frederick H. Eppinger, president and CEO.

He added that “catastrophe losses of this magnitude are not unusual to our business, and total catastrophe losses remain in-line with our expectations for both the quarter and year-to-date.”