Meadowbrook Insurance Group, Inc. Announces Preliminary Estimate Of Losses From Hurricane Sandy
SOUTHFIELD, Mich., Dec. 12, 2012 /PRNewswire/ -- Meadowbrook Insurance Group, Inc. (NYSE: MIG) today reported preliminary claim activity resulting from Hurricane Sandy.
The claims reported from Hurricane Sandy are primarily limited to Marine and properties in the Northeast. Currently, the Company has approximately $5.1 million of known claims. We expect our after-tax impact of claims related to Sandy to be between $3.5 and $4.5 million.
Meadowbrook purchases catastrophe reinsurance protection for aggregate claims above its retention of $4.0 million, plus 50% of $6.0 million in excess of the $4.0 million retained and $55.0 million in excess of $10.0 million.
Meadowbrook President and Chief Executive Officer Robert S. Cubbin commented, "Meadowbrook's programs have historically had limited exposure to property risks, and the property segment of Meadowbrook and its subsidiaries represents approximately 11.2% of its entire book of business. We generally structure our insurance programs to avoid geographic concentration that could result in large losses due to catastrophes. The reported claim activity is preliminary, and we expect to provide an updated estimate during our quarterly earnings announcement."
About Meadowbrook Insurance Group
Following the recent merger with ProCentury Corporation, Meadowbrook today includes several agencies, claims and loss prevention facilities, self-insured management organizations and seven property and casualty insurance underwriting companies, including one in Bermuda. Meadowbrook has twenty-six locations in the United States. A leader in the specialty program management market, Meadowbrook is a risk management organization, specializing in alternative risk management solutions for agents, professional and trade associations. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol "MIG". For further information, please visit Meadowbrook's corporate web site at http://www.meadowbrook.com .
Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words "believes," "expects," "anticipates," "estimates," or similar expressions. Please refer to the Company's most recent 10-K, 10-Q, and other filings with the Securities and Exchange Commission for more information on risk factors. Actual results could differ materially. These forward-looking statements involve risks and uncertainties including, but not limited to the following: the frequency and severity of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability or collectibility of reinsurance; increased rate pressure on premiums and on underwriting criteria; ability to obtain rate increases in current market conditions; investment rate of return and losses(whether realized or unrealized) in the Company's investment portfolio; changes in and adherence to insurance or other regulation; actions taken by regulators, rating agencies or lenders, including possible downgrade of the company's current A- financial strength rating; attainment of certain processing efficiencies; changing rates of inflation; impairment of intangibles; general economic conditions; the Company's possible ability to implement its capital raising and capital preservation strategies in a timely manner; and other risks identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, any of which may have a material and adverse effect on the Company's results of operations and financial condition. Meadowbrook is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Meadowbrook Insurance Group, Inc.