Cincinnati Financial Corp. expects decreased underwriting profitability at its property casualty insurance affiliates in the third quarter due to large losses from fires and commercial liability. The insurer’s property casualty operations combined ratio, excluding a previously announced one-time charge, is expected to be above 115 percent for the quarter.
The company would not comment on overall quarterly earnings per share, but analysts have predicted the company will book a an average third-quarter profit of 37 cents per share. Cincinnati Financial’s estimated combined ratio includes about three points from preliminary estimates of third-quarter catastrophe losses through Sept. 21, when a tornado in Xenia, Ohio, and storms in surrounding counties, caused roughly $8 million in policyholder claims.
The company thus far has the second-highest payout estimates in the state regarding those storms, falling just behind State Farm with estimates of $8.75 million. Meanwhile, the company said it also incurred 14 new claims in excess of $1 million during July and August, which are expected to result in $21.1 million in third-quarter property casualty operations net losses.
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