NU Online News Service, June 1, 2:35 p.m. EDT
United Fire & Casualty Co. (UFCS) says it expects second-quarter catastrophe losses of between $30 million and $35 million due to spring storms that have spawned deadly tornadoes in the U.S.
Cedar Rapids, Iowa-based UFCS says the losses include around $7 million to $9 million in storm losses reported in the company’s first-quarter news release, $5 million to $6 million from April storms in Southern states, and $15 million to $20 million from the May 22 Joplin, Mo. storm.
The company says the storms will likely contribute between 21.9 and 25.5 points toward the second-quarter combined ratio.
Describing the magnitude of losses the storms have caused, UFCS President and CEO Randy A. Ramlo says, “Over the past 10 years, catastrophe losses for the second quarter have averaged $8 million, compared with a full-year expected average of $25 million.”
He notes, though, that the lost lives and devastation have had a far greater impact.
Yesterday, State Farm said it has doled out nearly $916 million in claims payments from the storms, and added that recent destructive storms and tornadoes in Joplin, Oklahoma and Texas continue to be processed.
More than 120 people died in the Joplin tornado, making it the deadliest in more than 60 years. Catastrophe risk modeling firm EQECAT says insured losses for the Joplin tornado could be between $1 billion and $3 billion.