Cincinnati Financial Corporation Estimates Sept. 11 Losses at $8.7 Million

Cincinnati Financial Corporation, which offers property and casualty insurance through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company, reported that Sept. 11 pre-tax catastrophe losses, including assumed reinsurance, are now estimated at $8.7 million.

The company said the combined ratio for its property casualty insurance affiliates for the third quarter ending Sept. 30 will be approximately 109 percent, reflecting a pure loss ratio of 72.7 percent. This estimate includes total catastrophe losses, net of reinsurance and before taxes, of $13.4 million, accounting for 2.6 points of the combined ratio, with an estimated after-tax earnings impact of 5 cents per share. The largest net catastrophe loss for the third quarter, currently estimated at $8.7 million, arose from the events of Sept. 11 and the company’s participation in an aviation pool and other reinsurance agreements providing coverage for those events. Reported direct losses included in the $8.7 million estimate are approximately $0.3 million.

Chairman and CEO John J. Schiff, Jr. noted that even with the Sept. 11 losses, the company’s total third-quarter catastrophe losses will be within the expected range for a typical quarter. Non-catastrophe claims are expected to be at or above the high end of the company’s anticipated range.