CEDAR RAPIDS — United Fire Group on Monday said it expects its fourth quarter results to reflect a net loss of $13 million to $22.5 million for insurance claims from Hurricane Sandy.
United Fire Group said its expects after-tax net losses of $13 million to $19.5 million, or 51 cents to 76 cents per share, in the quarter that ends on Dec. 31.
The company added that it estimates after-tax losses of $2 million to $3 million, or 8 cents to 12 cents per share, for its assumed book of business, the insurance it provides other insurance companies.
The Cedar Rapids-based insurer reported earnings Monday indicating net income of $8.7 million, or 34 cents per share, for the quarter that ended on Sept. 30, compared with a net loss of $4.8 million, or 19 cents per share, for the third quarter of 2011. Last year’s storm losses in July and August negatively affected the third quarter earnings .
A number of policyholders were affected by the storm that slammed into New Jersey and New York before dumping snow further inland, the company said. United Fire Group’s Pennington, N.J. office was affected by the storm and is not expected to reopen until later this week.
“Right now, our storm teams are on the ground and working to help policyholders recover from the storm,” said Randy Ramlo, president and chief executive officer. “Our home office staff in Cedar Rapids is providing additional support to our East Coast agencies and personnel.”
According to early estimates, insurers face a claims bill of up to $20 billion, potentially making Hurricane Sandy the nation’s fourth-costliest natural catastrophe.