THG - Hanover Insurance expects to incur $90M in Q3 catastrophe losses
- The Hanover Insurance Group ( NYSE: THG ) has estimated its Q3 catastrophe losses to total ~$90M on a pretax basis, or 6.8 points of net earned premiums, it said Thursday.
- That estimate is ~$22M above the company's Q3 pretax catastrophe assumption, mostly due to the impacts of Hurricane Ian.
- Estimated pretax catastrophe losses from Hurricane Ian were approximately $28M, primarily in the THG's Commercial Lines book in Florida.
- Its Q3 results were also effected by ex-CAT loss activity in the company's Personal and commercial multiple peril ("CMP") property lines, largely fueled by continued inflationary pressures and big losses in CMP. In turn, the company's combined ratio, excluding catastrophes, is expected to be 94.2%.
- "In the third quarter, inflationary and supply chain pressures surpassed our expectations, and as such we are accelerating property price increases to improve margins in this unprecedented industry environment," said Hanover President and CEO John C. Roche.
- Overall, THG expects Q3 operating income to be $0.95-1.00 per share.
- For comparisons, see how Hanover Insurance fared during the second quarter .
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Hanover Insurance expects to incur $90M in Q3 catastrophe losses