NU Online News Service, July 14, 11:55 a.m.EDT

Meadowbrook Insurance Group Inc. says its second-quarter resultswill include higher-than-average storm-related losses, net ofreinsurance, of approximately $12.5 million pre-tax.

The Southfield, Mich.-based carrier says the amount isapproximately $6.3 million pre-tax higher than normal, and that thelosses will add 3.5 percentage points to the combined ratio andreduce earnings per share by approximately 8 cents per share in thequarter.

“Our underwriting approach to property exposures focuses onspread of risks, avoiding those areas most frequently exposed tosevere weather and maintaining a low catastrophe-reinsuranceretention level,” says Meadowbrook President and CEO Robert S.Cubbin in a statement. “None of the storms this quarter were severeenough to trigger our catastrophe-reinsurance program as no singleevent resulted in losses greater than $2.4 million.”

“That said, the frequency of storm losses was very high, with 12ISO-designated storms occurring during the quarter,” he says. “Thecumulative effect of the storms led to this greater-than-usual lossfor us in the quarter. Our relatively lower-than-industry exposureto property catastrophes reduced our potential for even greaterlosses despite the significant number of severe storms thatdevastated many parts of the country.”