(Reuters) – Property and casualty insurer Cincinnati FinancialCorp estimated a significantly lower impact due to catastrophelosses during the second quarter and said it expects to continue tobenefit from favorable pricing trends.
|The company estimated pretax catastrophe losses of about $140million to $160 million during the quarter, of which its commerciallines insurance segment accounted for almost two-thirds, it said ina statement.
|It estimated an impact of 17 to 19 percentage points on thecombined ratio due to catastrophe losses in the quarter, lower thanthe 40 points recorded a year earlier. The combined ratio is thepercentage of premium revenue an insurer has to pay out in claimsand expenses.
|It expects a combined ratio of 108 percent to 112 percent forthe quarter, Cincinnati Financial said in a statement.
|A combined ratio of less than 100 percent indicates underwritingprofitability, while anything over 100 indicates an underwritingloss.
|“We expect to continue benefiting from improved pricingprecision and loss cost containment, as well as improving marketconditions,” Chief Executive Steven Johnston said in astatement.
|Shares of the company, which is scheduled to releasesecond-quarter results on July 26, were down 2 percent at $37.46 inearly trade on Monday on the Nasdaq.
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