(Reuters) – Property and casualty insurer Cincinnati Financial Corp estimated a significantly lower impact due to catastrophe losses during the second quarter and said it expects to continue to benefit from favorable pricing trends.
The company estimated pretax catastrophe losses of about $140 million to $160 million during the quarter, of which its commercial lines insurance segment accounted for almost two-thirds, it said in a statement.
It estimated an impact of 17 to 19 percentage points on the combined ratio due to catastrophe losses in the quarter, lower than the 40 points recorded a year earlier. The combined ratio is the percentage of premium revenue an insurer has to pay out in claims and expenses.
It expects a combined ratio of 108 percent to 112 percent for the quarter, Cincinnati Financial said in a statement.
A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss.
“We expect to continue benefiting from improved pricing precision and loss cost containment, as well as improving market conditions,” Chief Executive Steven Johnston said in a statement.
Shares of the company, which is scheduled to release second-quarter results on July 26, were down 2 percent at $37.46 in early trade on Monday on the Nasdaq.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
