Press release
Cincinnati Financial Corporation Announces Preliminary Estimate for Losses from Spring Storms, Civil Unrest and Pandemic
CINCINNATI, July 14, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that its consolidated second-quarter results are
About this update from Cincinnati Financial Corporation
[{"type":"text","content":"CINCINNATI, July 14, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that its consolidated second-quarter results are expected to include pretax catastrophe losses of approximately $231 million – adding 16.5 percentage points to the quarterly combined ratio based on estimated property casualty earned premiums. \nTwo multi-state storms in early April each caused approximately $50 million in losses, in addition to catastrophe losses from several less severe storms. Damaged property due to civil unrest resulted in $29 million in losses, including $8 million for Cincinnati Global Underwriting Ltdsm. The estimate for total second-quarter 2020 catastrophe losses incurred includes approximately: $122 million for the commercial lines insurance segment; $91 million for the personal lines insurance segment; $3 million for the excess and surplus lines insurance segment; and $15 million for Cincinnati Global. \nSteven J. Johnston, chairman, president and CEO, commented: \"Cincinnati Insurance was built to withstand challenging quarters thanks to our strong balance sheet and resilient business model. Our field claims associates rose to the occasion this spring, serving policyholders with empathy in the midst of the global pandemic. They continued to thoroughly and 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.\" \nThe company also estimates second-quarter 2020 pandemic-related incurred losses and expenses to total approximately $65 million, impacting the quarterly combined ratio by approximately 4.6 percentage points. The total includes: \n$15 million for Cincinnati Re® and $9 million for Cincinnati Global losses. Approximately half of the losses for Cincinnati Re represent its estimated share from reinsurance treaties with companies that provided affirmative coverage for pandemic-related business interruption, and most of the remainder is an estimated share of treaties covering professional liability. Most of the losses for Cincinnati Global represent its share of potential losses from business interruption coverage for large risks with customized policy terms and conditions $6 million for credit losses rela...