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
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