NU Online News Service, July 28, 3:17 p.m.EDT

Two regional insurers took earnings hits in the 2011 secondquarter due to catastrophe losses.

Cincinnati Financial Corp. records a second-quarter net loss of$49 million compared to net income of $27 million for the sameperiod last year. The company’s combined ratio jump 29 points to136.6.

Total revenues grew 11 percent, or $97 million, to 975 millionfor the quarter.

For the 2011 first half, net income declined 86 percent, or $82million, to $13 million.

The company says after-tax property and casualty losses fromnatural catastrophes in the second quarter were $189 million.

Net realized investment gains rose $60 million during thequarter.

Steven J. Johnston, president and chief executive officer ofCincinnati, says in a statement that the company was prepared“operationally and financially for the pounding our ownpolicyholders and the [property and casualty] insurance industrytook from this spring’s powerful storms.”

He says reinsurance covered $220 million, reducing the netpretax loss to $290 million.

Branchville, N.J.-based Selective Insurance says its net incomedropped 88 percent in the second quarter, or more than $16 million,to over $2 million. The company’s combined ratio jumped 8.5 pointsto 109.5.

Total revenues for the quarter increased 3 percent, or $12million, to $400 million.

For the 2011 first half, net income fell 3 percent, or $695,000,to $24 million.

“The industry experienced unprecedented catastrophe lossesdue to severe storms thus far this year, but on a relative basisours were not of the same magnitude,” says Gregory E. Murphy,chairman, president and CEO.

The company’s catastrophe losses for the quarter were $38million.

On a positive note for Selective, Murphy says the markets “arefirming.” He notes that commercial lines renewal price increasedclose to 3 percent for the quarter, the ninth consecutive quarter“of positive commercial lines renewal pricing.”