Cincinnati Financial Sees Q1 Catastrophe Losses Of About $235 Mln

(RTTNews) - Cincinnati Financial Corp. (CINF) announced Monday that its consolidated first-quarter results are expected to include pretax catastrophe losses of around $235 million. This represents an impact on the first-quarter 2023 combined ratio of around 12.8 percentage points, based on estimated property casualty earned premiums.

The catastrophe loss estimate includes $171 million in aggregate for three March storms that produced tornadoes in several states, in addition to less severe storms. The estimate includes around $110 million for the commercial lines insurance segment and $115 million for the personal lines insurance segment.

It also includes $1 million for the excess and surplus lines insurance segment, $3 million for Cincinnati Re, and $6 million for Cincinnati Global Underwriting Ltd.

Steven J. Johnston, chairman and CEO, said, "We take the responsibility of paying our claims seriously and manage our capital to ensure we have ample capacity to absorb insured losses. 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."

Estimated losses and expenses from catastrophe-related claims would bring the first-quarter 2023 property casualty combined ratio to around 99 percent to 103 percent. Net written premium growth is estimated to be approximately 6 percent for the quarter.

Cincinnati Financial plans to report first-quarter results on April 27.