Cincinnati Financial Corp. has announced that the Cincinnati Insurance Companies’ property/casualty group expects its third-quarter results to include pretax catastrophe losses of approximately $102 million to $114 million. The company said the impact on the third-quarter 2017 combined ratio would be approximately 8.6 to 9.6 percentage points, based on estimated property casualty earned premiums.
The company’s 10‑year historical average contribution of catastrophe losses to the combined ratio is 4.8 percentage points for the third quarter. Losses from natural catastrophe events affect property casualty insurance underwriting income, one of the sources of consolidated net income along with profits from investment operations and life insurance operations.
This estimate for catastrophe losses includes approximately $20 million for Hurricane Harvey, including $12 million for the assumed reinsurance operations known as Cincinnati Re, $5 million for the commercial lines insurance segment and $3 million for the personal lines insurance segment.
For Hurricane Irma, it includes $54 million to $66 million, including $18 million to $30 million for Cincinnati Re, approximately $15 million for commercial lines and approximately $20 million for personal lines.
For Hurricane Maria, it includes approximately $6 million for Cincinnati Re. The estimate for all other third-quarter 2017 catastrophe losses incurred is approximately $11 million each for commercial lines and personal lines.
The company estimates its third-quarter 2017 property/casualty combined ratio will be in the range of 98.5 percent to 101.5 percent, including the effect of catastrophe losses.
Cincinnati Financial plans to report final results for third-quarter 2017 on Thursday, October 26, after the close of regular trading on the Nasdaq Stock Market. A conference call to discuss the results will be held at 11 a.m. ET on Friday, October 27, with a live, audio-only internet broadcast available at cinfin.com/investors.
Source: Cincinnati Financial Corp.