Reinsurance News

The Hanover estimates $66mn in Q3 cat losses

14th October 2020 - Author: Charlie Wood

The Hanover Insurance Group expects its third quarter catastrophe losses to total approximately $66 million.

the-hanover-insurance-group-logoThis pre-tax figure ($52 million after taxes) is driven primarily by hurricane Isaias and wildfires in California and Oregon.

The estimate also includes roughly $10 million of favourable prior-year development on several events from recent accident years.

The Hanover says overall cat losses in the quarter are estimated to be approximately 5.8% of net premiums earned, one point above the company’s third quarter catastrophe budget of 4.8%.

The Hanover previously registered $148 million in pre-tax cat losses for Q2, primarily driven by hail and wind storms in the Midwest in April and, to a lesser extent, property losses from riots across the US.

The company anticipates the slightly elevated cat losses in the quarter will be offset by lower than expected ex-cat current accident year losses, primarily due to moderating, but still lower than usual frequency in personal auto.

The Hanover expects to issue its third quarter financial results after the market closes on Tuesday, October 27.

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