Hanover Insurance, based in Worcester, Massachusetts, has announced that it anticipates a loss in the second quarter of this year. The losses are a result of significant catastrophe losses linked to an unusually stormy season.
The company estimates that it will record approximately $262 million in catastrophe losses for the quarter. These losses are mainly attributed to 19 convective storms that occurred across multiple states, with hail being the primary cause.
In light of these losses, Chief Executive John Roche highlighted that industry estimates indicate that this could potentially be the most expensive quarter for hail-related losses in history. Furthermore, it is expected to be the worst quarter for catastrophe losses in the United States since 2011.
Analysts surveyed by FactSet initially projected a second-quarter profit of $1.65 per share, or $1.18 per share on an adjusted basis. However, Hanover Insurance now expects to report an after-tax loss of $1.94 per share for the quarter.
To address the increasingly severe weather trends and evolving risks, the company is implementing adjustments to its underwriting and risk-management strategies.
The news follows Travelers, another property-casualty insurer, also reporting a loss in the second quarter due to significant catastrophe losses totaling $1.5 billion.