The Hanover Insurance Group has announced its preliminary estimate for first-quarter 2023 catastrophe losses of approximately $175 million, before taxes or 12.7 points of net earned premium.
Widespread wind and tornadic activity impacted nearly half of the U.S. in mid-to-late March. The first quarter catastrophe losses were caused by over 20 weather events, including severe freeze events in the Northeast and Midwest America in February.
John C. Roche, president and chief executive officer at The Hanover commented on the catastrophe losses, “Heightened catastrophe activity turned what was a very solid quarter for The Hanover into one of approximately break-even operating results.”
Roche also mentioned that the company has taken into account the recent severity of catastrophe losses, and has started preparing for winter weather and convective storms in the coming months.
The Hanover is going to be taking quick and decisive responses, with critical adjustments to exposure management and risk mitigation strategies, both for the company and industry. The company is moving with a sense of urgency as it execute its action plans.
“We fully expect the steps we have already taken, and those we continue to take – accelerating price and deductible increases in our property lines and applying even more disciplined underwriting and risk prevention measures – will enable us to adjust to the changing weather patterns and effectively manage our catastrophe exposures consistent with our track record over the last decade,” added Roche.
The Hanover in a statement also mentioned that its claims organization is working to help its impacted clients recover as quickly as possible.
