The Hartford and Hanover Insurance Group released their Superstorm Sandy loss estimates today, with both estimates reaching to dollar figures in the hundreds of millions.

Hartford, Conn.-based The Hartford says its initial gross loss and loss adjustment expenses estimate from Sandy is approximately $370 million, before tax.

Losses and loss adjustment expense net of reinsurance are estimated at $350 million, before tax, the company says.

About 60 percent of the loses are in the property and casualty commercial segment and 40 percent in personal lines.

Fourth quarter 2012 net-catastrophe losses through Nov. 30 are currently estimated to be approximately $230 million, after tax.

The Hartford cautioned that the catastrophe numbers from Sandy are subject to change “due to the number of affected policyholders, the nature of the claims, the preliminary assumptions used to estimate gross losses and other factors.” The ultimate amount, the carrier says, “could be materially different” from the initial estimate.

Worcester, Mass.-based The Hanover Insurance Group says it estimates the after-tax earnings impact of Sandy will be in the range of $120 million to $140 million.

Based on its preliminary estimates, the company says “it is unlikely to exceed the retention on its domestic property and catastrophe reinsurance program.”

The company adds, “The domestic losses are primarily from commercial multiple peril and homeowners policies in the states of New York and New Jersey. Given the complexity of the claims process and the nature of the damage caused by Sandy, the actual amount of losses from this storm may differ materially from current estimates.”

Special Reports /

Hartford and Hanover Report Sandy Losses in Hundreds of Millions

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