The Group has released its initial projection for the first quarter of 2023 catastrophe losses of roughly $175 million, before taxes, or 12.7 percent of net earned premium.
Nearly half of the United States was affected by widespread wind and tornadic activity in mid-to late March. Over 20 weather-related incidents, including severe freeze events in the Northeast and Midwest of America in February, contributed to the first quarter’s catastrophe losses.
In response to the disaster losses, The Hanover’s president and chief executive officer, John C. Roche, said, “Heightened catastrophe activity turned what was a very solid quarter for The Hanover into one of approximately break-even operating results.”
Roche added that the business has begun preparing for winter weather and convective storms in the upcoming months after considering the recent severity of catastrophic losses.
In order to reduce risk and minimize exposure for the company and the industry as a whole, The Hanover will act swiftly and decisively and make important adjustments to its strategy. In carrying out its action plans, the corporation is moving quickly.
According to Roche, “We fully expect the steps we have already taken and those we continue to take – accelerating price and deductible increases in our property lines and applying even more disciplined underwriting and risk prevention measures – will enable us to adjust to the changing weather patterns and effectively manage our catastrophe exposures consistent with our track record over the last ten years.
Our claims organization is working hard to help those impacted recover as quickly as possible,” said Roche.
