Harleysville Group sees weather cutting 2Q profit

The company said it expects catastrophe losses, which includes the impact of severe weather, will reduce operating income by 52 cents per share to 57 cents per share.

"While responding to catastrophes is a normal part of our business, this is the most we've experienced in a quarter since becoming a public company in 1986," said President and Chief Executive Michael L. Browne in a statement.

Analysts expect the company to post a profit of 83 cents per share for the quarter, according to a Thomson Financial survey.

In the year-ago quarter, Harleysville Group reported operating income of 81 cents per share. It took total catastrophe losses of about 9 cents in the second quarter of 2007.

Over the past eight quarters, the company's catastrophe losses averaged 6 cents per share.

Harleysville Group is scheduled to announce second-quarter results on Aug. 4.

Shares fell 85 cents, or 2.4 percent, to $34 in aftermarket trading. The stock earlier closed down 79 cents, or 2.2 percent, at $34.85.