Cincinnati Financial Corp. says it expects a $25 million to $35million loss to be recorded in the fourth quarter thanks to claimsgenerated by Superstorm Sandy.

The insurer of homes, autos and businesses says about two-thirdsof the expected pretax catastrophe loss will come from thecommercial lines segment.

President and CEO Steven J. Johnston says the effect of theselosses on the company's combined ratio will be about three timeshigher than its historical 10-year average of 1.1 points for thefourth quarter, provided that Cincinnati Insurance Co. experiencesno additional effects from Sandy during the last quarter of2012.

About 60 percent of claims from Sandy originate from Cleveland,Ohio and about 20 percent are from Pennsylvania, says theCincinnati-based insurer. Claims were from wind damage, leakingroofs, and clogged drains.

Sandy made landfall in Southern New Jersey before heading inlandand up toward Maine. Most estimates have indicated a majority ofinsured losses occurred in New Jersey and New York. Catastrophemodelers have provided a wide range of predicted insured losses.Eqecat says losses will be $10 billion to $20 billion. AIRWorldwide just updated its expected range of insured losses fromthe storm to between $16 billion and $22 billion. Risk ManagementSolutions says insured losses could reach $25 billion.

Johnston says Cincinnati Insurance has the capitalstrength to absorb the losses.

Yesterday reinsurer Swiss Re said Sandy could cause the company$900 million in pretax catastrophe losses.

Ohio's Progressive Corp. says it sustained catastrophe losses ofabout $55 million in October due to Superstorm Sandy.

Tower Group says it expects an after-tax net loss fromSuperstorm Sandy of between $55 million and $68 million in the fourth quarter.