HIGHER CATASTROPHE AND OTHER CLAIMS CUT INTO ERIE’S INCOME

Pennsylvania-based Erie Insurance Group’s net earnings for the first six months of the year dropped 55% to $212m, as core p/c premiums grew 9.1% to $2.57bn and claims costs jumped 27% to $2.11bn. The rise in incurred losses was driven a higher volume of non-catastrophic weather-related losses during the first quarter and several large commercial claims during the second quarter. Catastrophe losses for the six months rose to $337m from $72m. A large hail storm that hit eastern Pennsylvania in May accounted for the bulk of the second quarter’s $244m in cat losses, up from the year-earlier $45m. The year-to-date combined ratio rose to 111.1% from 99%. Results also reflected a 39% decline in realised investment gains to $184m.