From the December 2012 issue of Claims Magazine • Subscribe!

CinFin Forecasts $35M Loss From Sandy in Q4

Cincinnati Financial Corp. expects a loss between $25 million and $35 million to be recorded in the fourth quarter because of claims generated by Superstorm Sandy. 

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

President and CEO Steven J. Johnston says the effect of these losses on the company’s combined ratio will be about three times higher than its historical 10-year average of 1.1 points for the fourth quarter, provided that Cincinnati Insurance Co. experiences no additional effects from Sandy during the last quarter of 2012. 

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

Sandy made landfall in Southern New Jersey before heading inland and up toward Maine. Most estimates have indicated a majority of insured losses occurred in New Jersey and New York. Catastrophe modelers have provided a wide range of predicted insured losses. Eqecat says losses will be $10 billion to $20 billion. AIR Worldwide just updated its expected range of insured losses from the storm to between $16 billion and $22 billion. Risk Management Solutions says insured losses could reach $25 billion. 

Johnston says Cincinnati Insurance has the capital strength to absorb the losses. 

On Nov. 26, Swiss Re estimated Sandy could cause the reinsurer $900 million in pre-tax catastrophe losses. Meanwhile, Ohio’s Progressive Corp. says it sustained catastrophe losses of about $55 million in October from the storm. 

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

Comments

Resource Center

View All »

Making Coverage Letters Work for Your Clients

If you're a broker or insurance buyer with any length of service in the commercial...

Complimentary White Paper: The Compression of Workplace Time

How brokers and carriers respond to the compression of workplace time will create significant competitive...

The Changing Insurance Consumer: 6 Ways to Create Profitable Relationships

Today’s mobile and web-savvy consumers have new expectations when it comes to interacting with your...

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Claims Connection eNewsletter

Breaking news on disasters, fraud, legal trends, technology, and CE initiatives for the P&C claim professional – FREE. Sign Up Now!

Claims-Handling Guidelines

Claims Magazine is providing the following free guidelines and regulations in order to help adjusting professionals stay abreast of each state’s unique property and casualty claim-handling requirements.

View our State Guidelines »

Advertisement. Closing in 15 seconds.