Shares in Hanover Insurance Group were little changed Tuesday after the Worcester insurer reported it expected Hurricane Sandy to cost the company $120 million to $140 million in losses after taxes — more than it earned through the first nine months of the year.
The company said in a statement late Tuesday that the losses were primarily on its commercial and personal insurance policies in New York and New Jersey, which were squarely in the center of the storm. Shares in the company closed Tuesday at $37.87, down 29 cents.
Though the storm was downgraded from hurricane strength before it made landfall, it caused significant damage in New York City and other densely populated areas.
AIR Worldwide, a hurricane modeling firm, estimated the storm caused an estimated $16 billion to $22 billion in insured losses overall.
Hanover sells policies across the United States, but roughly one-quarter of its revenue comes from other countries. About 11 percent of its business is in New York and New Jersey.
Boston-based Liberty Mutual, which also has a large number of customers in New York and other states hit hard by the storm, has not released any estimates of how Sandy will affect its profits.
Many other Bay State insurers are not expected to be significantly hurt by Sandy, since the storm generally caused light damage in Massachusetts, compared to states like New York and New Jersey.
The Division of Insurance expects to report more detailed data on the impact on local insurers later this month.
Todd WallackTodd Wallack can be reached at email@example.com. Follow him on Twitter @twallack.
Correction: Because of an editing error, a headline on an earlier version of this story misidentified an insurer that expected a loss from Hurricane Sandy. Hanover Insurance Group expects the storm will cost it $120 million to $140 million after taxes.