Management struck a bullish tone as it outlined expectations of capped Covid-19 losses while asserting that lower claim frequencies would likely benefit the loss ratio more than falling premiums.
On its quarterly earnings call the Floridian insurer updated investors and analysts on how it has responded to the Covid-19 crisis and disclosed $50mn of Irma reserve development.
Cincinnati’s management team covered a broad range of topics on its earnings call yesterday including potential Covid-19 exposure and steps taken to mitigate customers’ cash flow pressures.
Benign frequency due to fewer miles driven in personal helped offset a weaker underlying loss ratio in commercial driven by one large fire loss and an unquantified Covid-19 loss reserve.
