Cincinnati Insurance hit by $106m cat loss in Q1

Cincinnati Financial Corporation said that its Cincinnati Insurance Companies' property/casualty group expects a pre-tax impact from catastrophe losses of approximately $106 million in its first-quarter 2017 results.

Cincinnati Financial Corporation offers business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property/casualty companies.

"Spring seemed to come early in the Midwest and South this year, causing an uptick in hail and wind losses in February and March," said Steven Johnston, president and CEO.

The cat losses will have an effect on the combined ratio of approximately 9.2 percentage points, based on estimated property casualty earned premiums.

The company estimates its first-quarter 2017 property/casualty combined ratio in the range of 99 percent to 101 percent, including the effect of catastrophe losses.

Around $100 million of the storm losses were from three separate events occurring between February 28 and March 22, primarily in states located in the Midwest or in the South. Slightly more than half of the first-quarter catastrophe loss total affected the companies' commercial lines insurance results and just under half affected its personal lines insurance results.

Today’s top stories

Fidelity & Guaranty Life terminates merger agreement with Anbang

Japan sees single-digit rate reductions in April renewals

Swiss Re sets up Asia headquarters in Singapore

Pioneer appoints vice president for special risk division

Pro Global hires from Crawford to boost German business

Grinnell Mutual launches national reinsurance programme

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.