The Hanover Insurance Group, Inc. expects to incur catastrophe losses of approximately $133 million, pre-tax ($105m after-tax), for the first-quarter of 2021, primarily as a result of the impacts of Winter storms Uri and Viola.
For the carrier, the largest impact from the severe weather was in Texas, where it estimates catastrophe losses related to the two storms to be roughly $90 million, pre-tax, primarily in its commercial multi-peril line.
“Winter storms Uri and Viola brought the worst freezing events the region has experienced in over a century, causing devastation in an area typically unaffected by severe winter conditions. Our thoughts are with those who have suffered from these unprecedented catastrophe events,” said John C. Roche, President and Chief Executive Officer (CEO).
“We remain committed to providing our customers and agents with the responsive support they deserve. Despite heavy industrywide catastrophe losses during the quarter, The Hanover expects to report strong underlying financial performance, which is a reflection of its diversified business mix, leading market position, and broad-based underwriting profitability,” he added.
In light of the significant impacts of the severe weather in the U.S. during February, The Hanover is the latest carrier to report on estimated catastrophe losses ahead of the Q1 2021 results season.
Yesterday, RenRe warned of a net loss for the first-quarter of the year amid Uri losses of $180 million, while AXIS Capital said that combined, Uri and Viola are expected to drive Q1 cat losses of between $80 million and $90 million for the firm.