Cincinnati Financial Corporation Announces Reduced Estimate for Prior-Quarter Storm Losses, Stronger Pricing Trends and Higher Investment Valuations
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The property casualty group reduced its pre-tax loss estimate for several catastrophe events that occurred prior to the fourth quarter of 2011. As a result of that lower estimate, along with better weather during the fourth quarter, the group expects to report a positive contribution of approximately
The property casualty group also continued to experience stronger pricing in its commercial lines segment, which accounts for nearly three-quarters of its property casualty premiums. During the fourth quarter of 2011, the group's commercial lines average renewal pricing increased in the low- to mid-single-digit range.
Johnston continued, "We continue to improve our pricing precision through expanded use of pricing analytics tools and data. Our personal lines and excess and surplus lines segments also continued to see rate increases, improving over third-quarter trends. Consolidated property casualty fourth-quarter 2011 net written and earned premiums grew approximately 5 percent, with commercial lines and personal lines segments up approximately 4 percent and 7 percent respectively. Our excess and surplus lines segment continued to grow at a healthy double-digit pace, with estimated fourth-quarter net written premiums reaching approximately
Johnston added, "Over the course of 2011, 30 events were classified by Property Claims Services as catastrophes, and our field claims representatives responded promptly and professionally to affected policyholders. Only two of those events actually occurred during the fourth quarter. They caused approximately
"The 2011 fourth-quarter catastrophe loss ratio further benefitted from a reduced estimate of losses due to our participation in assumed reinsurance treaties that spread the risk of very high catastrophe losses among many insurers. We reduced that estimate by approximately
Investment Portfolio Listing at
Johnston concluded, "Providing this investment data prior to our quarterly earnings announcement will give investors a preview of an important component of our book value, which will reflect the favorable impact of improved market valuations for the securities in our investment portfolio as of
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