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Cincinnati Financial expects Q3 pretax catastrophe losses up to $114M

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Cincinnati Financial expects Q3 pretax catastrophe losses up to $114M

Cincinnati Financial Corp.'s Cincinnati Insurance Cos. property and casualty group expects to include pretax catastrophe losses of about $102 million to $114 million in its third-quarter results.

The estimated losses represent an impact to the third-quarter combined ratio of about 8.6 to 9.6 percentage points, based on estimated P&C 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.

The catastrophe loss estimates include about $20 million for Hurricane Harvey, which consists of $12 million for the assumed reinsurance operations Cincinnati Re, $5 million for the commercial lines insurance segment, and $3 million for the personal lines insurance segment.

Related to Hurricane Irma, the estimates include $54 million to $66 million, including $18 million to $30 million for Cincinnati Re, about $15 million for commercial lines and about $20 million for personal lines. The estimates include about $6 million for Cincinnati Re related to Hurricane Maria. The estimate for all other third-quarter catastrophe losses incurred is about $11 million each for commercial and personal lines.

Cincinnati Financial expects its third-quarter P&C combined ratio to be 98.5% to 101.5%, including the effect of catastrophe losses.