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Cincinnati Financial expects Q3 pretax catastrophe losses of $120M

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Cincinnati Financial expects Q3 pretax catastrophe losses of $120M

The property and casualty group of Cincinnati Financial Corp.'s Cincinnati Insurance Cos. record pretax catastrophe losses of about $120 million in its third-quarter results.

The estimated losses represent an impact to the third-quarter combined ratio of about 9.5 to 10.0 percentage points, based on estimated P&C earned premiums. The company's 10-year historical average contribution of catastrophe losses to the combined ratio for the third quarter is 5.6 percentage points.

The catastrophe loss estimates include about $92 million for Hurricane Florence, which consists of $7 million for the assumed reinsurance operations known as Cincinnati Re, $77 million for the commercial lines insurance segment, $34 million for the personal lines insurance segment, and $9 million for Cincinnati Re.

The company expects its third-quarter P&C combined ratio to be 96% to 98%, including the effect of catastrophe losses. The ratio also reflects net favorable reserve development on prior accident years for the company's commercial casualty line of business.