Hurricane Sandy is expected to cost The Hartford $370 million in total claims, before tax, the property-casualty insurer said Tuesday.
The Hartford Financial Services Group has reinsurance to cover part of that, and expects the company’s losses from the storm will be $350 million before tax, net of reinsurance.
Roughly 60 percent of the losses are in the commercial segment, which is property-casualty insurance for businesses, while 40 percent is in Consumer Markets, which includes homeowners and auto coverage.
The company expects losses, which is the amount paid on insurance claims, to be about $230 million, after tax, for the first two months of the fourth quarter, which runs from Oct. 1 through Dec. 31.
The initial estimates are expected to change because of the number of policyholders who had damage from the storm, the nature of the claims and other factors.
Last week, The Travelers Cos. estimated its cost for Hurricane Sandy to be $650 million after tax and reinsurance. Before tax and reinsurance, Travelers estimated losses to be $1.1 billion.
Estimates of overall losses to insurance companies and the economy in general have varied since the storm hit on Oct. 29. Most recently, Sandy is estimated to have caused a total of $16 billion to $22 billion in damage covered by insurance companies, according to a Nov. 26 estimate by AIR Worldwide, a catastrophe modeling company.
The Allstate Corp. said on Nov. 28 that it estimated catastrophe losses to be $1.08 billion, before tax and net of reinsurance. Allstate automobile claims accounted for 40 percent of the total. Two-thirds of Allstate’s losses are in New York state and 20 percent are in New Jersey. The remaining 14 percent is in “other states,” the company said.
Liberty Mutual and Chubb Corp. have not released estimates of loss.
Liberty Mutual is the top insurer of homes in Connecticut, based on premium revenue, followed by Travelers and Chubb. Travelers is the leading insurer of businesses in Connecticut, followed by Liberty Mutual and American International Group.