On May 22, a devastating tornado ripped through Joplin, Mo., putting an exclamation point on a spring that has seen deadly and costly storms in several states.
Catastrophe modeler EQECAT estimates between $1 billion and $3 billion in insured losses from the Joplin tornado alone, and other figures are rolling in from insurers regarding storm losses that have occurred from April through to this month.
Most recently, a June 1 storm over Massachusetts spawned tornadoes in the state that, according to the Associated Press, left at least four dead.
The Joplin tornado is said to have killed more than 120 people, making it the deadliest tornado in more than 60 years.
"It went right through the heart of Joplin," says State Farm spokesman Jeff Davis, who called the damage "severe." The tornado destroyed residences, a hospital and commercial structures—including those that housed a Wal-Mart and a Home Depot, he adds.
State Farm, the nation's largest homeowners insurer, says its overall claims payments through May have eclipsed $2.5 billion, with payments from storm losses approaching $1 billion and rising.
The "unprecedented succession of horrible weather and horrific losses" can be characterized as akin to a "spring hurricane" for the insurer, says Brian Boyden, State Farm executive vice president, in a statement.
April's weather events, when grouped together, will go down as the 90-year-old company's seventh most costly homeowners catastrophe.
About 300,000 home, business and automobile claims have come in for damage related to events in April and May, says State Farm. More than 4,300 claims professionals have been sent to 147 separate claims offices, the company adds.
Risk modelers AIR Worldwide, Risk Management Solutions and EQECAT have put a price to insurers of between $2 billion and $6 billion from late-April storms.
Hanover Insurance Group says it expects between $70 million and $85 million in estimated losses for April.
The Worcester, Mass.-based insurer of businesses and individuals adds that the losses are primarily from April 22-28 storms in Tennessee and Arkansas, as well as other states.
Other insurers have already begun to tell investors about potential losses from April. Allstate says it expects to pay $1.4 billion for April storms. Liberty Mutual says it expects up to $450 million in cat losses for April, and Nationwide says its second-quarter operating income will be challenged by losses during the month.
National Security Group Inc. says it expects insured losses in April to top $6.8 million. The Elba, Ala.-based insurer says it expects second-quarter net income to take a $4.2 million hit.
State Auto Financial Corp. expects the April storms to cause up to $85 million in second-quarter catastrophe losses, and Endurance Specialty Holdings says losses for April will be between $45 million and $55 million. Cincinnati Financial Corp. adds its estimate of second-quarter losses in the range of $150 million to $200 million.
United Fire & Casualty Co. (UFCS) says it expects second-quarter catastrophe losses of between $30 million and $35 million. The Cedar Rapids, Iowa-based insurer 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 Joplin tornado. 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."
According to the Ohio Insurance Institute (OII), the state suffered $123 million in damages from two severe storms in April, with the month likely to be known as one of the "most active and destructive months for severe weather in U.S. history."
OII officials say in a preliminary estimate that the storms generated 23,600 claims. "This has been an unusually harsh quarter for storms across the U.S.," says Daniel J. Kelso, OII president. "We're seeing estimated losses [for the U.S.] from the April 22-28 severe thunderstorm outbreak in the $3.7 billion to $5.5 billion range…, not including other weather-related disasters."
Arthur D. Postal and Phil Gusman contributed to this story
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