Cincinnati Financial Corp. announced a preliminary estimate of about $48 million for second-quarter pre-tax catastrophe losses resulting from severe weather through May 11. The storm losses, which affected policyholders of the Cincinnati Insurance Cos., are expected to add a total of about 7.5 percentage points to the second-quarter property casualty combined ratio. The expected impact on after-tax earnings per share for the second quarter would be approximately 19 cents.
The preliminary second-quarter estimate includes an updated estimate of approximately $13 million for April storm losses, which were previously estimated at $9 million, and an initial estimate of $35 million, net of reinsurance, for storm damage on May 2-11. Cincinnati’s policyholders across 16 Midwestern and mid-Atlantic states have reported more than 2,800 claims as a result of severe weather over these 10 days.
The $48 million total for storm losses through May 11 compares with reported pre-tax catastrophe losses for the full second quarter of 2002 of $47 million, which added 8.1 percentage points to the combined ratio and reduced after-tax earnings per share by 19 cents. For the comparable 2001 period, catastrophe losses were $35 million, adding 6.9 percentage points to the combined ratio and reducing earnings per share by 14 cents.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Trucking App Trucker Path Launches Retail Insurance Agency 
Suspects in Louvre Heist in Custody After Week-Long Manhunt 
GEICO Sues Medical Firms in Florida, NY Over Alleged No-Fault Auto Fraud 
New York Hospital Insurer Files for Bankruptcy, Citing Child Sex Abuse Claims 
