Property and casualty insurer Cincinnati Financial Corporation has announced that its consolidated first-quarter results are expected to include pre-tax catastrophe losses of approximately $235 million.
This will represent an impact on its Q1 combined ratio of 12.8 percentage points, based on estimated earned premiums.
For reference, the company’s 5-year historical average contribution of catastrophe losses to the combined ratio is 6.3 percentage points for the first quarter.
Cincinnati notes that the catastrophe loss estimate includes $171 million in aggregate for three March storms that produced tornadoes in several states, in addition to less severe storms.
The overall figure includes approximately $110 million for the company’s commercial lines insurance segment, $115 million for the personal lines insurance segment, and $1 million for its excess and surplus lines insurance segment, as well as $3 million for Cincinnati Re and $6 million for Cincinnati Global Underwriting LtdSM.
“March roared in and left just as loudly with storm systems that impacted at least a dozen states each,” said Cincinnati Chairman and CEO Steven J. Johnston. “Our claims service, delivered by teams of Cincinnati associates, continues to support agents and lead to satisfied policyholders as we quickly inspected losses and issued payments.”
“We take the responsibility of paying our claims seriously and manage our capital to ensure we have ample capacity to absorb insured losses,” Johnston continued. “Our long-term focus allows us to partner with the best independent agents in the country and to provide the highest quality service during the claims handling process.”
Estimated losses and expenses from catastrophe-related claims are expected to bring Cincinnati’s Q1 2023 property casualty combined ratio to approximately 99% to 103%, with net written premium growth estimated at 6%.
These estimates remain preliminary for now and will be reported on in further detail once Cincinnati releases its final results for the quarter later this month.
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