WORCESTER, Mass., Sept. 22, 2021 /PRNewswire/ -- The Hanover
Insurance Group, Inc. (NYSE: THG) today announced its
preliminary estimate for third quarter catastrophe losses, based on
information available to date, to be in the range of $150 to $165
million before taxes, or $119
to $130 million after taxes. The
midpoint of the estimate is approximately $97 million above the company's pre-tax third
quarter catastrophe load, driven primarily by the effects of
Hurricane Ida. Estimated losses from this storm are approximately
$75 million, before taxes, primarily
stemming from losses in the Northeast and, to a lesser extent, the
Gulf and Mid-Atlantic states. Hurricane Ida came in the midst of an
already active catastrophe season in July and August, which
included 18 industry catastrophe events impacting The Hanover's geographic footprint.
![The Hanover Insurance Group, Inc. Logo. (PRNewsFoto/The Hanover Insurance Group, Inc.) (PRNewsfoto/The Hanover Insurance Group, In) The Hanover Insurance Group, Inc. Logo. (PRNewsFoto/The Hanover Insurance Group, Inc.) (PRNewsfoto/The Hanover Insurance Group, In)](https://mma.prnewswire.com/media/511273/The_Hanover_Insurance_Group_Logo.jpg)
"Hurricane Ida caused widespread damage and tragic loss of life
from the Gulf Coast to the Northeast," said John C. Roche, president and chief executive
officer at The Hanover. "Our
thoughts are with all those who have been impacted. We are
committed to helping our customers and their communities recover
quickly. Our efforts to manage coastal exposure have been very
successful in the past and will continue as we and the industry
adjust to changing weather patterns. Catastrophes aside, we expect
our third quarter results to reflect our strong underlying
performance, highlighting our distinctive market position, as well
as our proven underwriting, pricing and risk management
expertise."
The Hanover expects to issue
its third quarter financial results after the market closes on
Wednesday, October 27. The company
expects to host a webcast discussion of its results on Thursday, October 28, at 10:00 a.m. ET, through its website at
hanover.com.
The company also will hold a virtual investor day on
Thursday, September 23 from
9:00 a.m. to 12:30 p.m. ET,
highlighting its strategic priorities and financial targets for the
next five years. The event will include two live question and
answer sessions. A live webcast of the investor day will be
available through the "Investors" section of the company's website.
Advance registration is required. Participants should register
through The Hanover Insurance Group - 2021 Investor
Day registration page, at least 15 minutes prior to the event.
A replay of the webcast will be available following the event.
Forward-Looking Statements
The Hanover Insurance Group, Inc.'s ("the company") estimate of
catastrophe losses is based on estimates and projections that are
subject to revision and uncertainty. Such estimates are
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. The company cautions investors that
such forward-looking statements are estimates and/or projections
which involve significant judgment and uncertainty, and actual
results could differ materially. Investors should consider the
risks and uncertainties in the company's business that may affect
such estimates, including (i) the inherent difficulties in arriving
at such estimates; (ii) variation in the company's current
estimates that may change as the company finalizes its financial
results; (iii) the impact of the COVID-19 outbreak and subsequent
global pandemic and related economic conditions on the company's
financial and operating results; (iv) legislative and regulatory
actions, as well as litigation and the possibility of adverse
judicial decisions; and (v) other risks and uncertainties that are
discussed in readily available documents, including the company's
latest annual report on Form 10-K, quarterly reports on Form 10-Q,
and other documents filed by the company with the Securities and
Exchange Commission, which are also available on hanover.com under
"Investors – Financials." The difficulties at arriving at estimates
with regard to catastrophes related to rain, wind, flooding, hail
and other losses may be caused by several factor, including
difficulties policyholders may experience when reporting claims,
The Hanover's ability to adjust
claims because of the devastation encountered or late discovery of
damages; difficulties accessing loss locations; the challenge of
making final estimates to repair or replace properties during the
early stages of examining damaged properties; applicable cause of
loss for certain policies; the effect of higher cost of repairs due
to, among other things, "demand surge" and supply chain
disruptions; potential latent damages, which are not discovered
until later; potential business interruption claims, the extent of
which cannot be known at the time, especially for customers who
have not fully resumed their operations; the inherent uncertainty
of estimating loss and loss adjustment reserves; uncertainties
related to litigation and policy interpretation; and other
factors.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for
several property and casualty insurance companies, which together
constitute one of the largest insurance businesses in the United States. The company provides
exceptional insurance solutions through a select group of
independent agents and brokers. Together with its agent partners,
The Hanover offers standard and
specialized insurance protection for small and mid-sized
businesses, as well as for homes, automobiles, and other personal
items. For more information, please visit hanover.com.
Contact Information
Investors:
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Media:
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Oksana
Lukasheva
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Michael F.
Buckley
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Abby M.
Clark
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Email:
olukasheva@hanover.com
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Email:
mibuckley@hanover.com
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Email:
abclark@hanover.com
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1-508-525-6081
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1-508-855-3099
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1-508-855-3549
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SOURCE The Hanover Insurance Group, Inc.