Many insurance companies across the nation felt the harsh effects of the spring storms throughout April and May including Donegal Insurance. Donegal Group, INC, expects to feel a $13 million to $15 million hit in the 2nd quarter from all of the recent claims brought upon by the devastating storms the swept the mid-west and affecting many areas of the US.
The article “Donegal Sees $13M-$15M Effect From Claims” by Tim Stuhldreher on CentralPennBusiness.com points out that claims of about $7 million to $8 million will be paid due to mid-Atlantic hail and storm damages and another $4 million to $5 million paid to the South due to the tornadoes that hit this area. Another $2 million is going to the mid-west for wind and hail.
Donegal plans on covering additional losses through their reinsurance programs. This is to help the blow of the loss be less painful. Their subsidiaries will give about $3 million to keep their reinsurance coverage throughout the rest of 2011. Many companies have felt the impact of all of these home and auto insurance claims, but Donegal remains positive that they are handling the situation and their preparation for such events has paid off.
Written by Sara Smart
Follow me on Twitter: http://twitter.com/#!/SaraSmart55