The impact of catastrophes, large loss activity and foreign exchange movements are expected to bring an underwriting loss for Chaucer in the second quarter, when it will report a combined ratio in the range of 103 to 105 percent, according to its parent company, The Hanover Insurance Group Inc.
“The most notable catastrophe and large loss events [affecting] Chaucer’s results in the quarter include the Alberta wildfires and the Ecuador and Japan earthquakes, as well the Jubilee Oil Field turret malfunction and the Brussels Airport terrorist attack losses, which occurred in the first quarter,” The Hanover said in a statement.
The results also were hit by loss activity in trade credit insurance within the marine line, as well as foreign exchange movements – in particular weakening of pound sterling, which also resulted in a net negative impact on the combined ratio, The Hanover said.
“Chaucer continues to manage its exposures very well,” said Eugene M. Bullis, chief financial officer at The Hanover. “Volatility from time to time is expected and entirely consistent with our long-term outlook for this business. Losses from these market-wide events were generally proportionate to our underwriting appetite and market-wide experience.”
Source: The Hanover Insurance Group