Sandy will cost insurer Hanover $120M to $140M

Hanover Insurance Group expects to take $120M to $140M in Superstorm Sandy losses

Associated Press

WORCESTER, Mass. (AP) -- Hanover Insurance Group Inc. said Monday that it expects to take $120 million to $140 million in after-tax losses related to Superstorm Sandy.

The company said the losses will reduce its annual net income by $2.65 to $3.09 per share. Most of the losses come from commercial and homeowners policies in New York and New Jersey.

Hanover's losses are far smaller than those reported by some other insurers. On Friday American Insurance Group Inc. said it expects to take $1.3 billion in losses related to the late-October storm, after taxes and reinsurance recoveries. Allstate Corp. said it had $1.08 billion in catastrophe losses during October, mostly from damage to homes and autos from Sandy. Travelers Cos. expects $650 million in Sandy-related losses after taxes and insurance recoveries.

Hanover shares rose 80 cents, or 2.1 percent, to close at $38.16.

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