The Hanover expects $148m Q2 catastrophe losses

US-based property/casualty insurer Hanover Insurance Group expects to report pre-tax catastrophe losses of $148 million ($117 million after taxes) driven primarily by hail and wind storms in the Midwest in April and property losses from civil unrest across the US.

The second quarter 2020 estimate does not include COVID-19-related exposures or favorable overall loss frequency, which will be reported in the ex-cat current accident year loss and loss adjustment expense line.

The company's updated view of COVID-19-related losses, which has been expanded to include workers' compensation, is "not expected to be material" to its second quarter results.

The insurer also expects to report lower than expected current accident year losses, excluding catastrophes, due to lower frequency, while still reflecting prudent reserves.

This favorability will offset to a large degree the higher than expected catastrophe losses in the quarter.