United Fire Group estimates storm losses at $13 million to $16 million [The Gazette, Cedar Rapids, Iowa]

March 20--CEDAR RAPIDS -- The storms and tornadoes that tore through Midwestern and Southeastern states in the last week of February will cause United Fire Group to report catastrophic losses of approximately $13 million to $16 million in its financial results for the first quarter of 2012.

The preliminary loss estimate was released Tuesday by the Cedar Rapids-based insurer, which has catastrophe claims teams working in the affected areas.

Powerful storms spawned multiple tornadoes that ravaged communities in Alabama, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio and Tennessee. More than 35 people were killed in the five states and hundreds were injured.

Insured losses from the tornadoes, hail and high winds that struck in late February and early March may climb into the $1 billion to $2 billion range, according to catastrophe risk modeling firm EQECAT.

It is estimated that more than 150 tornadoes touched down in two distinct systems between February 28 and March 3, with the majority occurring in Alabama, Kentucky, Illinois, Indiana and Tennessee, according to EQECAT.

Eqecat said last year's tornadoes caused more than $26 billion in economic losses throughout the U.S. The firm says that it is likely that this year's tornadoes could cause even more financial damage.

The storm and tornado losses in February follow a year that saw United Fire and other insurers incurring direct and indirect losses from domestic and international disasters.

United Fire Group incurred $80.8 million of pretax catastrophic losses in 2011, including $21.1 million from the company's assumed reinsurance business, which experienced significant losses from natural disasters in New Zealand and Japan.

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(c)2012 The Gazette (Cedar Rapids, Iowa)

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