Cincinnati Financial Expects Strong Quarter

Cincinnati Financial Expects Strong Quarter

NU Online News Service, July 14, 11:37 a.m. EDT?The Fairfield, Ohio-based Cincinnati Financial Corp. said it expects to release robust second-quarter figures on July 29, thanks to the company's increasing net written premiums and improving underwriting profitability.

The insurer also noted that a positive momentum has been carried over from last year and this year's first quarter. Based on preliminary data, Cincinnati Financial said it is expecting second-quarter property-casualty net written premiums to jump by some 16 percent compared to a year ago.

The company said its statutory combined ratio is expected to improve to around 99 percent, which includes 7.1 percentage points due to catastrophe losses, reflecting preliminary storm loss estimates of $48 million. In comparison, the company had posted 107.2 percent in the 2002 second quarter.

"With an excellent second half of 2002 and a very healthy first quarter of 2003, we see the anticipated second-quarter results as further indication that our actions of the past two years have begun to bear fruit," said John Schiff Jr., chairman and chief executive officer at Cincinnati Financial.

Mr. Schiff also noted that his company continues to focus on "profitable growth."

"It demonstrates that we are finding an effective balance between growth and profitability that will allow us to achieve our long-term goals," he said.

Mr. Schiff also offered a robust outlook for the latter half of this year, noting that his company will "remain comfortable" with its target for the full-year combined ratio of 99 percent or below on a Generally Accepted Accounting Principles basis. "We are pleased with the continuing improvement in our non-catastrophe underwriting results and are determined to achieve further improvements," he said.

Cincinnati Financial Corporation--through its flagship Cincinnati Insurance and with subsidiaries Cincinnati Casualty and Cincinnati Indemnity--offers commercial property, liability, auto, bond and fire insurance. The company's personal lines include homeowners and liability products. Last year, the company posted $238 million in net income with more than $2.8 billion in sales.