Posted On: October 2, 2008, 4:15 am CDT

Posted By: LaTrue

And THIS is only what they admit to. What will they say during their 3rd Quarter announcements? I'm sure it will only be bits of where they are really heading?

-- Property and casualty insurer Cincinnati Financial Corp. said Tuesday its 2008 results will be hurt by investments in troubled financial institutions Lehman Brothers, Fannie Mae, Freddie Mac and AIG.

The company said it is making "modest revisions" to its full-year outlook as a consequence of recent events, including the economy's decline. It said it will disclose more specifics at an investor conference later this week and at investor meetings next week.

Full-year investment income is now expected to decline more than 10 percent from 2007, the company said.

President and CEO Kenneth Stecher also said in the statement that continued pressure on the economy and insurance prices is weighing on its property and casualty business. He said the company's earlier estimate that full-year 2008 premiums would decline no more than 5 percent now appears overly optimistic, although he did not provide a new estimate.

-- so, sharply declining investment income, lower than expected premium volume or growth, storm losses that are the worst in 5 years (don't forget the $500 mill in Ohio storms 2 weeks ago). Life is not good if you're an Ohio regional these days. Can Lib Mutual pull the trigger again, so soon after being downgraded for their Safeco acquisition?