The Hanover sees Q2 catastrophe losses $262M

The Hanover Insurance Group announced a preliminary estimate for Q2 quarter catastrophe losses of approximately $262M, before taxes, or 18.5 points of net earned premium. Q2 catastrophe losses stemmed from 19 convective storms across multiple states, with hail damage representing the majority of reported losses and primarily impacting the company’s Personal Lines business. “We experienced significant catastrophe losses in the second quarter, which according to industry estimates, is expected to be the worst Q2 for U.S. catastrophe losses since 2011, and potentially the industry’s costliest quarter for hail losses in history,” said John C. Roche, president and CEO. “Our CAT losses reflect the impact of severe weather, notably the prevalence and severity of hailstorms in Michigan, where we have our largest Personal Lines presence. Excluding catastrophes, our second quarter results are in line with our expectations, due to solid net investment income and strong results in our Specialty and Core Commercial businesses, partially offset by the continuing impact of inflationary trends in Personal Lines.” Taking catastrophe loss estimates and other currently available information into account, The Hanover expects to report a Q2 combined ratio of 111.3%, and combined ratio, excluding catastrophes, of 92.8%. The Hanover also expects to report an after-tax net loss per basic share of ($1.94) and operating loss per basic share of $(1.91) for the Q2.