The Hanover Insurance Group has announced that the estimated impact of catastrophe activity on its first quarter 2018 results is in the range of US $66 to $76 million before taxes.
The Hanover announced the results in line with their recently implemented policy of releasing quarterly catastrophe loss estimates if they exceed the company’s catastrophe assumptions by more than 50 basis points in a given period.
These reported losses were equivalent to approximately 5.5% of earned premium at the midpoint of the range.
The winter storms throughout January and March in the Midwestern and Northeastern U.S contributed significantly to The Hanover’s loss estimates.
The Hanover also factored into its Q1 estimate the favourable development of around $9.5 million on prior-year catastrophe losses, primarily relating to the 2017 Atlantic hurricanes and California wildfires.
Updated loss estimates will be reflected in The Hanover’s first quarter financial results on May 2.
The Hanover is the holding company for several property and casualty (P&C) re/insurance companies, which together constitute one the largest re/insurance businesses in the U.S.