Harleysville Group Expects to Report Q1 EPS of $0.28

Harleysville Group Inc. HGIC today announced that unusually severe winter weather losses will impact its first quarter results. The company expects to report first quarter diluted operating income approximating last year's first quarter results of $0.28 per share after taxes. The current quarter's results will be reduced $0.21 per share by catastrophe losses, while the prior year's quarter was reduced $0.49 per share by catastrophe losses. At the same time, Harleysville Group anticipates a statutory combined ratio2—adjusted for the non-recurring impact of the pool change effective January 1, 2011— approximating the level reported in the first quarter of 2010. The combined ratio will reflect significant winter losses not meeting the catastrophe definition, as well as 4.5 points of catastrophe losses for the quarter. In the first quarter of 2010, Harleysville Group reported a statutory combined ratio of 107.8 percent, which reflected 10.0 points of catastrophe losses. Both years' catastrophe losses exceed the company's long-term average. Harleysville Group expects to announce its first quarter results on April 26.