Primary insurer Cincinnati’s third-quarter results are expected to include pretax catastrophe losses of approximately $266 million.
This figure represents an impact on the company’s Q3 combined ratio of approximately 18.3%, based on estimated property casualty earned premiums.
In August, a midwest derecho caused approximately $103 million of losses, after an estimated reinsurance recovery of $17 million.
Hurricane Laura caused approximately $46 million in losses, including $30 million for Cincinnati Global Underwriting Ltdsm and $12 million for Cincinnati Re.
Cincinnati’s overall Q3 estimate also includes catastrophe losses from several less severe storms.
$128 million falls within the commercial lines insurance segment while $83 million is in personal lines, $1 million in excess and surplus, $10 million in Cincinnati Re and $44 million in Cincinnati Global.
“2020 has brought many challenges, and I’m proud of the way our associates have answered the call, serving our agents and their clients with empathy and compassion,” said Steven J. Johnston, chairman, president and CEO.
“We deployed teams of our own field claims associates who volunteered to travel to the parts of our country where catastrophe struck.
“Through their consistent and coordinated approach, we were able to quickly review claims to determine the appropriate payment based on the policy contract. Our solid financial position ensures our ability to help the families and businesses in our agents’ communities on the road to recovery after a covered loss.”
Cincinnati says the estimated losses and expenses from catastrophe-related claims are expected to bring its Q3 property casualty combined ratio to approximately 102.6% to 104.6%.
Net written premium growth is estimated to be approximately 3% for the quarter.
