Ahead of its third quarter earnings announcement early next month, The Hanover Insurance Group released a preliminary estimate of catastrophe losses of nearly $196 million primarily from multiple convective storms in the Midwest.
“Severe weather represented a formidable challenge in the third quarter for us and the industry, generating significant catastrophe losses and adversely impacting bottom line results,” said John C. Roche, president and chief executive officer at The Hanover, in a statement.
The Hanover said hail and wind damage – mostly to the personal lines segment – accounted for the majority of Q3’s $195.8 million in catastrophe losses.
The CEO of the Worcester, Massachusetts-based insurer said it has “taken decisive action” across its personal and commercial books of business including “strengthening terms and conditions, increasing all-peril deductibles, introducing wind and hail deductibles in additional states, applying aged roof amortization schedules in certain geographies, and reinforcing our emphasis on risk prevention measures.”
Roche said Hanover is “implementing double-digit price increases and executing underwriting actions in property lines.”
Hanover said it expects to report a Q3 combined ratio of 104.4, with 13.7 points added from the catastrophe losses.
Topics Catastrophe Profit Loss
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