3 More Insurers Report Q2 Cat Losses

Earlier this week, INN reported that The Cincinnati Insurance Companies' property/casualty group expects its second-quarter results— after the April and May severe weather—to include pre-tax catastrophe losses, net of reinsurance, of approximately $240 million to $290 million. Three more insurers have reported expected losses from recent storms.

State Auto Financial Corp. estimates second quarter 2011 earnings will include between $45 million and $50 million in pre-tax catastrophe losses related to May storms.

Three catastrophes affected 23 of State Auto’s operating states in May, resulting in auto and property claims caused by tornadoes, wind and hail, including the tornado that struck Joplin, Mo., on May 22. State Auto anticipates that more than 9,000 claims will be filed as a result of the storms.

Additionally, the company confirmed its earlier estimated impact of $75 million to $85 million in catastrophe losses related to April storm activity. Prior to 2011, State Auto’s historic five-year average catastrophe loss ratio for the second quarter is 18 percentage points or $50 million of losses.

Travelers Cos. estimates its range of catastrophe losses relating to the numerous and severe catastrophes in April and May to be approximately $1 billion to $1.05 billion, after-tax and net of reinsurance. These losses resulted from multiple tornadoes and hail storms, primarily in the Midwest and Southeast regions of the United States, the largest of which occurred in the last week of April and impacted 13 states. These catastrophe losses were concentrated in the company's Business Insurance and Personal Insurance segments.

XL Group plc announced preliminary net loss estimates related to the severe weather that affected the Midwest and Southeast United States over the periods April 22-28 and May 20-23, 2011. The company's preliminary loss estimates related to the storms, pretax and net of reinsurance and reinstatement premiums, range from approximately $50 million to $75 million, with the majority attributable to XL's reinsurance segment.

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