The tornado that ripped through Joplin, Mo., last month, spring storms that hit southern states in late April and storms earlier this year will take a toll on United Fire & Casualty Co.’s second-quarter earnings.
The insurer on Tuesday said it expects its second-quarter results through May to include pre-tax catastrophe losses, net of reinsurance, of approximately $30 million to $35 million. The impact on after-tax earnings is estimated to be between 75 cents and 87 cents per share.
United Fire said the losses include $7 million to $9 million in storm losses previously reported in the company’s first quarter news release; $5 million to $6 million from storms that hit southern states in late April, and $15 million to $20 million from a devastating May storm and tornado in Joplin.
Randy Ramlo, United Fire president and chief executive officer, said second-quarter losses from storms have averaged $8 million over the last 10 years. Ramlo said the spring storms and tornado that slammed into Joplin have had a far more disastrous impact.
“Hundreds of people have lost their lives, and the road to rebuilding the affected communities will be a long one,” he said. “Our claims staff has been hard at work helping policyholders recover from the storms.
“Meeting the needs of our Joplin policyholders was a particular challenge for our teams, as only medical and rescue personnel were allowed to enter the affected areas prior to Wednesday, May 25.”