The Hanover announces second quarter catastrophe losses
The Hanover Insurance Group announced it expects its second quarter catastrophe losses to be approximately $148 million, before taxes, or $117 million after taxes, driven primarily by hail and wind storms in the Midwest in April and, to a lesser extent, property losses from civil unrest across the United States. The estimate also includes approximately $7 million of favorable prior-year development on several events from recent accident years. The estimate does not include COVID-19-related exposures or favorable overall loss frequency, which will continue to be reported in the ex-cat current accident year loss and loss adjustment expense line. The company’s updated view of COVID-19-related losses, which has been expanded to include workers’ compensation, is not expected to be material to its second quarter results. The company also expects to report lower than expected current accident year losses, excluding catastrophes, due to lower frequency, while still reflecting prudent reserves. This favorability will offset to a large degree the higher than expected catastrophe losses in the quarter.
The Hanover expects to issue its second quarter financial results after the market closes on Tuesday, July 28.