The Hanover expects up to $225m cat hit

The Hanover Insurance Group said on Oct. 5 that it estimates third quarter catastrophe losses to be in the range of $185 million to $225 million before taxes and net of reinsurance.

This estimate includes anticipated losses from hurricanes Harvey, Irma, Maria and the two Mexico earthquakes, as well as other catastrophe activity in the quarter.

The company's international specialty group, Chaucer, are is expected to contribute to the overall losses in the range of $115 million to $135 million before taxes, net of reinsurance. The largest losses are the result of hurricanes Harvey and Irma, predominantly in the company's treaty, direct property, marine and energy lines.

Losses in the company's domestic business are expected to be in the range of $70 million to $90 million before taxes and net of reinsurance, predominantly in the commercial lines business, largely from Hurricane Harvey.

"The unprecedented catastrophe activity in the quarter has caused tragic losses for many," said Joseph Zubretsky, CEO of The Hanover. "We are hard at work, providing our partners and customers with the responsive service and support they expect and deserve."

"Our initial loss estimates are in line with what we would expect for events of this magnitude, and are a reflection of our disciplined underwriting and risk management practices," said chief financial officer Jeffrey Farber.

Updated loss estimates will be reflected in The Hanover's third quarter financial results.

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