United Fire projects losses from spring storms

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."