Courtesy of Benzinga.
The Hanover Insurance Group, Inc. (NYSE: THG) today announced a preliminary loss estimate from Storm Sandy, which produced widespread damage along the East Coast of the United States in late October.
The Hanover currently estimates the net after-tax earnings impact of this storm to be in the range of $120 to $140 million, or $2.65 to $3.09 per share(1).
The majority of losses from Storm Sandy resulted from The Hanover’s domestic Commercial and Personal lines segments. Based on these preliminary estimates, the Company believes it is unlikely to exceed the retention on its domestic property catastrophe reinsurance program. The domestic losses are primarily from commercial multiple peril and homeowners policies in the states of New York and New Jersey. Given the complexity of the claims process and the nature of the damage caused by Sandy, the actual amount of losses from this storm may differ materially from current estimates.
