CINF - Cincinnati Financial expects Q3 non-GAAP EPS to trail consensus

Cincinnati Financial ( NASDAQ: CINF ) said Thursday it expects Q3 operating income of $0.70-$0.76 per share, reflecting high catastrophe losses from Hurricane Ian, and falling short of the $0.83 consensus .

CINF stock has slipped 1.8% in Thursday after-hours trading.

Q3 results are expected to include pretax catastrophe losses of ~$252M, representing an impact on its Q3 combined ratio of 13.9 percentage points, based on estimated property casualty earned premiums, the insurer said.

The catastrophe loss estimate includes $220M from Hurricane Ian, excluding any effects of reinstatement premiums assumed or ceded, in addition to less severe storms.

Estimated losses and expenses from catastrophe-related claims are expected to bring Cincinnati Financial's ( CINF ) Q3 property casualty combined ratio to ~104%.

The combined ratio before catastrophe losses continues to reflect increased uncertainty of estimated ultimate losses, due in part to elevated paid losses reflecting economic or other forms of inflation, the company said. Net written premium growth it estimated to be ~14% for the quarter.

Allstate ( ALL ) stock slid 12% in Thursday trading after saying it expects a Q3 adjusted net loss of $400M-$450M, impacted by a $875M charge for u nfavorable prior-year reserve reestimates.

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