PR Newswire
CINCINNATI, Oct. 12, 2017
CINCINNATI, Oct. 12, 2017 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today 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, representing an impact on the third-quarter 2017 combined ratio of 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 our assumed reinsurance operations known as Cincinnati Resm, $5 million for our commercial lines insurance segment and $3 million for our 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.
Steven J. Johnston, president and chief executive officer, commented, "Our agents and policyholders across the southeast United States felt the impacts from hurricanes Harvey and Irma. When your community experiences an event of this magnitude, you value the difference professional, knowledgeable Cincinnati claims representatives bring as they inspect your property quickly and in-person.
"We take the responsibility of paying our claims seriously and manage our capital to ensure we have ample capacity to pay insured losses promptly. Our long-term focus allows us to partner with the best independent agents in the country and to provide the highest quality service during the claims handling process."
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.
About Cincinnati Financial
Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.
Mailing Address: | Street Address: |
P.O. Box 145496 | 6200 South Gilmore Road |
Cincinnati, Ohio 45250-5496 | Fairfield, Ohio 45014-5141 |
Safe Harbor Statement
This is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2016 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 29.
Factors that could cause or contribute to such differences include, but are not limited to:
Further, the company's insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.
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SOURCE Cincinnati Financial Corporation
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