The Hanover Insurance Group estimates 2nd-quarter catastrophe-related losses at $85 million

Hanover sees $85 million in 2Q catastrophe losses

WORCESTER, Mass. — The Hanover Insurance Group Inc. said Tuesday that severe weather in the second quarter will drive up its catastrophe losses for the period.

The insurer expects to book about $85 million in second-quarter losses from hail, wind and other weather-related events. Most of the losses were associated with claims from six major events, including hail and wind storms in Oklahoma in May, and hail and thunderstorms in Michigan, Tennessee, Ohio and Illinois in April and June.

The losses will add about 12 points to the company’s combined ratio, versus the 3.2 points that such losses added on average in the second quarter over the last 10 years, CEO Frederick H. Eppinger said in a statement. Hanover did not offer a specific combined ratio forecast.

The combined ratio measures the sum of an insurance company’s losses, or money paid out in claims, and expenses. A ratio above 100 means that for every premium dollar taken in, more than a dollar was spent covering claims, expenses and commissions, while a ratio under 100 indicates an underwriting profit.

Shares of The Hanover Insurance Group ended Tuesday trading up 76 cents, at $45.88.