Cincinnati Financial Expects Pretax Catastrophe Losses Of About $266 Mln In Q3

(RTTNews) - Cincinnati Financial Corp. (CINF) said that it expects its third-quarter results will include pretax catastrophe losses of about $266 million, representing an impact on the third-quarter 2020 combined ratio of about 18.3 percentage points.

The August 2020 Midwest derecho caused about $103 million of losses, after an estimated reinsurance recovery of $17 million. Hurricane Laura caused about $46 million in losses, including $30 million for Cincinnati Global Underwriting Ltdsm and $12 million for Cincinnati Re.

The estimate for total third-quarter 2020 catastrophe losses incurred includes about $128 million for the commercial lines insurance segment; $83 million for the personal lines insurance segment; $1 million for the excess and surplus lines insurance segment; $10 million for Cincinnati Re and $44 million for Cincinnati Global.

Net written premium growth is estimated to be about 3% for the quarter.