Hanover Says Winter Claims To Effect 1Q Results

WORCESTER, Mass. (AP) — Insurance holding company Hanover Insurance Group Inc. said Friday it will record more claims related to severe winter weather in its first quarter.

The company said the effect of the unusually severe winter will boost its losses by about $30 million to $35 million compared with last year's first quarter.

The insurer said much of the higher claim activity came from Michigan, its largest market, other Midwestern states and New England.

Hanover said due to the weather impact, it expects first-quarter segment income of about $40 million to $45 million. Segment income excludes corporate interest expenses, federal income taxes and realized gains and losses.

The company will report its first-quarter financial results on May 8.

Hanover shares fell 4 cents to $30.10 in electronic after-hours trading. The shares were unchanged during regular trading to close at $30.14.