CINF - Earnings call transcript Q3 2020 | Cincinnati Financial Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Cincinnati Financial Corporation's Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Dennis McDaniel, Investor Relations Officer. you. Thank sir. ahead, go Please

Dennis McDaniel

on far This is these call, results call for menu you'll earnings Financial. shortest you Senior news made Sewell. Chief at hear call. supplemental be Marty Chairman, with ask Officer, financial package, investment Officer, and the time, may Dennis route with that us room may for McDaniel others Mike investors Officer, After portfolio. of information including then Finance, the release and copies a Claims joining Chief issued Executive XXXX yesterday, Cincinnati Marty President President and Steve remarks, results our along by us, On link our first navigation visit questions. Late left. is Chief Investment Steve including our At Thank we Hello. our of and Theresa Hoffer. find third Johnston; Cincinnati conference quarter-end please the website, quarterly in Vice Insurance to Spray; Officer, Officer, on the responses our any of the from To documents, Chief Insurance's some this their cinfin.com/investors. the Financial quarter Corporate Hollenbeck; on in from Mullen prepared Chief The participating

prepared release. with reconciled uncertainties, these therefore, and accounting forward-looking provided forward-looking. measures Statutory please certain filings is First, statutory risks GAAP. be not news data to Also, non-GAAP is direct rules was risks accordance respect note release that to with to some reconciliation statements the our the a SEC. involve These to uncertainties. matters in and our today news are your of discussed and of to accounting with the and various attention With we

over the turn Steve. call to Now I'll

Steve Johnston

Dennis. and joining Good morning, thank today. you, everyone, for us you Thank

agency our confidently book to execute our see in by centered core improvement of steady bolstered we business. continue strategy We the

our legal court majority We setbacks, more with fair higher XXXX have Non-GAAP we'll rendered past business have interruption executing remain the compared of in believe while our and dismiss landscape on policy initial of of developments motions interruption some granted that terms in plaintiffs. to dismissed not some the without active physical that property does proceeded courts quarter third confident decide in courts property, loss does weather voluntarily a lack under the we business not trigger that damage policy have coverage third plans. with XX% on understanding our that and reducing been given interruption in alone for And We're others the litigation motions, continue the to business continue under our on ultimately the to pandemic-related basis. million Recently, third of quarter and the of should alteration for cases cases of coverage was than by law judicial in it ago, income extent, our a quarter the operating year increases we of To was $XXX long-term last the quarter losses focused after-tax security portfolio. value Net million year strategy, our an pursue catastrophe rose to-date. income process. have down of $XXX the The by physical events of based economic equity to decisions reflecting apply insurance. property the of claims.

loss underwrite segmentation accident a was and ratio improve the benefit casualty We increase. points by higher XX.X to X.X ago and diversify an before from percentage product and and catastrophe from and than representing on continue year current ongoing was catastrophe elevated policies. nine year year property of basis. risks XXX.X% see The a X.X geography risks losses price expense line as loss efforts likewise ratio combined percentage to points better results points Our than we the our last month with to losses of

the economic continue in independent remain our net growing the pandemic discipline very premiums agents the relationships who While strong. X% with our of of property are represent and business to XXXX. we pricing effects casualty our slow profitably in believe premium we third quarter us rose growth, Consolidated written

experiencing pricing a little higher of As quarter again, third And year see our during for each and average quarter in of continued during good to be quarter X% discipline. growth cost property. the second the ahead pricing commercial one, comparison underwriting in for We quarter the our estimated price range quarter property single-digit business, full estimate range. largest increases. each was those segment of Average the casualty and commercial lines renewing than the policies mid first XXXX. single-digit trends perspective property casualty indicators both and the percent XX% year pricing in second of Renewal for high a averaged loss with and was for the

third again higher growth, us volume were slower year. written policies overall New last for was quote while agencies during key premium than for from premiums the quarter a submissions causing business premium factor to

ago, at combined increase ratio the For our catastrophe commercial the higher lines loss risks, rate. our for commercial The XX.X percentage X.X underwriters quarter point a a higher declined third segment with reflecting submissions compared in year ratio. points was

our quarter for progress segment quarter with to the performance lines underlying continues third a X% were points by net ago, was The that improved higher worth than planned. lines premiums points by personal percentage catastrophe and masked as losses net higher. X.X business combined third grew year high Our written personal ratio XX.X

to profit and third by X%. written quarter premiums net returned ratio surplus underwriting grew and combined an producing excess with XX.X% Our segment an lines

Global third is $X catastrophe reported, their catastrophe losses. Laura, exceeded and Hurricane losses Cincinnati XXX%. their XX% total As from agency experienced had previously both Nearly million were business of of losses and where XXXX combined produced significant our only Cincinnati Re catastrophe quarter

last XX% subsidiary earned year performance. insurance and conclude life with by up non-GAAP our of remarks with life the value premium measure prepared primary results It X%. third My insurance XX%. from up income Our operating creation long-term ratio, quarter reported income grew term outstanding financial net

percentage the quarter of XXXX, first year. of by points portfolio. for brought of X.X including valuation VCR was our nine That the improved for third months X.X% X.X% our investment this Our to VCR contributed

will other Mike Chief Now of important Officer, our comment our areas Sewell on Financial financial results.

Mike Sewell

you, Steve. today. you Thank us And to all for of joining thanks

Our third nine for Dividend of growing for year quarter income good, income rate XXXX investment including a full and the on XX% both investment the basis, growth XXXX. quarter. X% performance quarter matching was rose for month third the by

bond income months pre-tax a for the purchases For grew net of equity $XXX from portfolio compared with quarter portfolio ago. X% The the our nine the totaled year same XXXX, million. first purchased The Interest average last bonds third yield and for yield was total third of quarter the the year. during quarter X.XX%, exempt X.XX%. tax the taxable pre-tax was matching of average

fixed-maturity our our during of of the portfolios. $XXX including to $XXX the The bond gain months million for was portfolio first We stock portfolio quarter $XXX invest year the XXXX changes favorable with our $XXX nine portfolio. continue were and valuation for in overall million million ended net million. before totaling and third equity the portfolio bond the again and quarter Investment very purchases billion, remains from of billion help expense business net We us priority both XXXX for for tax we billion, a first controls. Cash was nearly nine balance worked appreciated investments strategic up months ago. year operating value $X.X good continues equity portfolio investment of $X with a total grow income. the net almost including Expense activities from as flow generated to XX% $X.X the our in portfolio. with investment management for flow Cash effects,

The several business X.X year's quarter. items, lower lower such as casualty quarter travel. percentage property The XXXX for expense ratio has third underwriting pandemic third spending caused was than points last

some to a quarters return rate of as those governmental expect We ease. in expenses normal future restrictions to

agency closer addition, average losses sharing a to our to to level. In return cause more at catastrophe usual ratios profit historical levels should

loss reserves. to Turning

Our consistent the loss range actually net for in expense net approach reserves. aimed of loss the half and estimated upper of amount

net quarter but was loss overall, the ultimate consider X.X% estimate of and paid year $XX During and accident line ratio and property experienced favorable or Each for than new informations, lower the years. and accident of we quarter quarter. combined typical by effect quarter, was XXXX, development on losses third we The prior casualty still favorable a expenses business. losses as such million

As estimates needed. during update we we as the study year, data obtain and new

of While most reserve excess favorable other business major our $XX and during business. development the amount and updated our of quarter, we segment, in lines for commercial line of million unfavorable surplus an experienced third estimates resulted the auto line

first an most $XX and by was by think plenty by the year kept reserves with large ultimate and While two for losses XXXX less for recent accident for that We months dollar million total The periods On year, quarter $XX incurred development took XXXX the for reserve years ratio years function, company we case our the prior financial losses believe were of XXXX Capital accident we remains X% flexibility. excellent, a was reserves $XX IBNR to commercial auto. management I again financial the unfavorable there is including nine effect basis for net for favorable level at development noticeable, all those the the important amount loss action driven for auto prudent outstanding of Because of XXXX. was lines is the million was XXXX. accident strength In than total another higher estimated our aggregate, that million. than commercial accident and years. were expected. for those increased for

share. the book value share. book investment for the we And equity The book share added third income our main always Net investment remarks Life gains value increased quarter the ratio, quarter property book by Net net turn prepared back the over $XX.XX the summary creation underwriting insurance losses Steve. to I a do, $X.XX in dividends insurance the per $X.XX $X.XX. $X.XX. value of losses drivers my Investment a share increased portfolio I'll decreased was by call with by of declared represent other for now per non-insurance and shareholders. fixed value per $X.XX. casualty income during I'll book As than by They increase effect reduced to operations to of life increased gains operations and contributions $X.XX. high to record end value third value $X.XX. book value per portfolio per a And share

Steve Johnston

reasons Severe by Mike. weather our challenged one reason demonstrated The I'm results, optimistic. again our associates see we is optimism. you, for Thank dedication

to equipped providing associates While are their most of clients. work to agents our are and proving that they continue from continue they and to service motivated home, headquarters outstanding

for needs have a IVANS The modern September. efforts, technology digital connectivity we committed independent move applied are initiatives are associates digital IVANS, carriers Our two of announced program in continued insurer to Through to division that supporting in awards agents were systems IT forward. using from technologies. their that recognizes

We silver lines. are in of personal lines only gold also seven and award in commercial winners one winner a award

to Our covered our service associates outstanding agents, continue we to hole able for manage clients to their field after time for building strength with work empathetic help risk future. agents our or efforts, each the a make closely inspired financial a policyholder delivering and We're loss. refocus are

with Marty me As Hollenbeck, Mike the Hoffer. and Steve Theresa a call Mullen, and Marty are Spray, open reminder today for please questions. Jason,

Operator

Your first line question Phil Bank. Stefano the Instructions] from comes [Operator of Deutsche from

is open. line Your

Phil Stefano

Thanks color commercial something hoping I but the improved for the drop-off commercial opposing we – And these we points. was look lines. XX a have be reconciliation at underlying points like and about loss of or auto, the for development of X.X quarter, a Yes. thinking good if trends? I the little as ratio to on morning. points seemingly and two should XX in How look, example, get favorable more adverse

Mike Sewell

looking effects adverse points being really This it our for When the Great for million. is larger to of at as favorable the I commercial overall, down one auto XX question. Yes. X.X quarter noted, Mike. obviously development was having of

And older larger was really I that in some as accident of some years. losses, from indicated

case incurred for out. until see really those so we payments we what play we IBNR the And to as there, ultimate kept up the the did is

that seeing in it So year and improving, what XXXX, is were was XXXX causing current really that. was we accident

basis X.X the If now out. X X.X about plays So development. year points the how was of year-to-day to development XXXX reserve rest favorable think last we'll several say on Full X.X. overall we've of year for years, been points at we're I'll the see right I running,

us follow a and see actuaries fourth wait to basis, going and has we're let's the consistent store So for what quarter our consistent follow in approach.

Phil Stefano

through loss think about should more this to thinking benefit in excess we the versus us Maybe that environment generally loss the of rate make about waiting pricing Can indeed in contemplating the what extent to ratios. underlying sure the trend you was and how conservatism to Okay. for underlying remind an coming you're current business season trend? versus and

Steve Johnston

key rates mentioned a by book loss ex-CAT Phil. That’s I believe. improving we've of costs seen trends. we've do loss point, are accident improvement underlying as as ratio points and Johnston that continued core we're ahead our think Steve And is we This combined we feel our cost core seeing with – the year in our that X.X

taking effective appropriate level for this in key key to point actions perspective, the of improvement I now the think period and kind seen it's to point years experience dates working number in a right, that what rate that is think making are the blend right difficult over improve together. And of actuaries be the between the should precisely bifurcate perspectively, we've they're COVID that experience, loss filed our I been we've the to is XXXX. this loss look on

be they’ll trends, so coverage-by-coverage a of of looking a come – at rates. up they'll past to the up on state-by-state, state-by-state quarters with come number And that granular, doing very with data their be to basis,

we've industry to point the lower in we years. than So as with grow go that position nine faster several eight now. adequate and rates continue as in We've industry growing last the just key also in an been the we the our is a ratio position in can row for years than combined have here we're confident or the a had that we which forward

profitably. sweet I our is use grow rates understand we in period forward, pandemic there key during have are the look to there sure And hit in that we next some of to the this so, that grow distortions year spot that a make position think data the just that and with put and can us

Phil Stefano

Got it.

that How into of is in obviously against Okay. Have dug change And truly broke the about, opening forward? in one a the claims any ask But defense against this. here seats? re-filed now seen from plaintiff we kind should the you potentially get your judgment you. you I'll comfortable last Any start How that moving could we you? it with works there potential the of color our posturing get provide be to Carolina this appreciated. argument exposure that remarks North have does will

Steve Johnston

that qualify appeal continue our there in we question. we Good policy plan coverage And apply does has no structural legal alteration that to alone property. the under we The in prevailing view interruption business remain Sure. this the case by courts our coverage. position, decision, damage was economic confident property, around the not to the doesn't interruption to been for believe because business of or country physical trigger is direct as loss loss which

to change the in is we in no any point reported. being claims this legal there And uptick strategy. So also haven't

Phil Stefano

Thank Okay, luck. watching been closely. of thanks. I've much and conjunctions my more you best guys

Steve Johnston

you. Thank

Operator

comes line Newsome from question Sandler. Paul Your next the from of Piper

is open. line Your

Paul Newsome

Congrats on quarter. Hey, morning. good the

Steve Johnston

Paul. Good morning,

Paul Newsome

just little issue the revisit bit. a to reserve wanted I

that I torts that's sort any little Could back reported. talk to different were prior the are or us of historically that than a XXXX that, have negative. or think there XXXX in And trends you you would I what number? reserves the you’d there – and in heard anything prior section? that an like you aggregate disordered specialist about bit that Could mass take say

Steve Johnston

years. I was And think again. large prior generated Steve losses it really is some in those This accident by

of been. as booked they've So little bit our It's our estimate always we've full X.X%. seen as in we're year-to-date in than showing out reserve are we that development previous we've less good the far still position that not the reserves And where years. we a a that of that's in quarters been that estimate best our range still in feel at confident always other favorable

we've I think couple been range to X% go where of back the a we've development. if favorable had XXXX, we in of years

year comp, – third So for to lines. also bigger workers’ reserved just the But year this I a It it and of one ago in which this year a it’s is is developed dollars big when quarter last. a one thing quarter, between quarter note think a compare difference our favorably a the in number you terms big of X.X% quarter. third strong a difference still that's at that's XX%, by of ago

Paul Newsome

losses XXXX torts mass big distort okay. no prior, would [indiscernible] that But that

Steve Johnston

Thank a that I and you. it's yes, no identify question failed to torts. mass

Paul Newsome

I Great. these the business Any updates assume business. on are of some like reinsurance new business increased having the the that impact businesses in [indiscernible] and quarter notable on

Steve Johnston

both, lines XX%, they're nicely, some in than in business done to really I've going business, we're the for I affirming be take through that is bit market basis there they're an volatility those confident a ways looking of breakeven feel results, time businesses. of for we in inception from new about tough date terms underwriting. this better both numbers up and can a little Both growing as good mean, are or confident of breakeven. to both the of total We you in both about very right to Yes. there those at they know saw even advantage

Paul Newsome

So much. thank very you

Steve Johnston

you, Paul. Thank

Operator

comes next Mike Your from question Suisse. line from the of Credit Zaremski

is Zaremski next Once the your Credit comes line again, of question Mike line Your Suisse. from from open.

open. is line Your

Mike Zaremski

A so previous some of follow-ups the Thanks on of questions. much. couple

of year great it's ratio lot clearly a loss in underlying lines. So accident

at little we be good a bit benefit I near kind trying distortions, rate from Just so looked? be or of frequencies get shouldn't been you is lesser tail given that And to color, some so terms there a kind lower how it for of – level that more a assuming of right to maybe just longer we potential in in and of term? the there clear, kind COVID do I you the a maybe especially just some somewhat in think want a of be lines, sustainable think that, should that to is said of take of

Steve Johnston

Yes.

that the that related and talk from little think want benefit to to may everything of spray is and core COVID want see be improving been those book of is bit the our We've hard that slow environment, on pandemic – on And the of improve this by Steve people is not touch Steve through focus I a down to that's distracted in some we was again, this I really just our this period reasons. mantra think working whole also some that's Steve would we've to really business. you about working, out core been there that all the more. been results can

think to a lot is of we So slow from just seen improvement independent hard split into pandemic two down, the that the those accurately what of pieces. we've it's

So going Steve, growth hit confident might we're we've communicated you some the want targets you forward can comment long-term. that the of to targets and over the specifics. And profitability that we to on

Steve Spray

a account-by-account, right, on retaining is Yes basis to account. rate and and a more continued by headquarters And risk Mike. we're feel rate line on right Steve opportunity of business then underwriters underwriters sure, feel the just difficult segmenting a us on at getting our profit. getting And give business both that us focusing it, and adjusted for book really we margin. on that at seeing making shot those the bifurcate it's that gives hi then by better focused we less execution field but our that and

the continue and underwriters better to continues execution get at evolve, with our better working it to agents. So

agents our to those is our communities well. And there as making us that for advantage that relationships care their locally. work of the the going help an in almost we homes that with is with growth decisions deep X,XXX to that's already from where are and contact, that are fact agents like think think profitability. this associates something Mike fewer I

Mike Zaremski

And got it's I difficult. And Okay, is it. this understand helpful.

you town talked the – up a down the So when then even to, slowed would about tie has of you submissions in were though declined of little bit, it kind a in XX-Q kind metrics this the bit and more. seems on like little some of growth

was when So be seems little it it little bit which volatility? this bit Anything are change felt of like you read is versus should a a into a cautious tone trying like just offense. last little normal playing more quarter to quarter, it I guys more or now,

Steve Spray

Yes.

of normal grow. its looking but playing tell think offense. we plenty got would I I there are to volatility, still capital, we We've agents out this, help are you our

these question to goes discipline prior – think look to back precision your book pricing Mike, got underwriters, executing walk we we a is I away. such that tools just field your both are – into better and with headquarters sophistication, and to pricing continue of kind our just it on the to evolve

be. ratio would it's underwriter could to just don't renewal lot risk So terms declination be talking get higher. adjusted decline distressed of conditions, from a do is what indication premises of and it is an that's are pricing losses, can find prior return, a that, inspection say feel by be risk, why they reasons the and many risk times risk. be that the could an just And would There to they a an before they'll that why going like unacceptable. just we make and A they

pricing that based on think see that's market you'll some of firm on based we – the of it's in business, is kind it’s of the bouncing where creating account, marketplace. more mix size around, So

think way state to – some I creating that's So a it's it. volatility fair is

Mike Zaremski

hear color could North on process, a before quarters Okay. or And take is any something appeals follow-up – kind appeals the on resolution – this – on there? we process does in Carolina could the the that color many any year-end, of

Steve Johnston

Good question. And I'm not lawyer.

notice in then we’ve of in notice would just into early say expect the after here the I know don't first lawyer But understanding part appeals, that. I'd we'll We I'm like XXXX. due and of get is of a decision part here for after that's is in November. that's the that My that not the until And – uncertain, of court by say, appeal all, is maybe first appeal establish oral Carolina that uncertain court the will it's briefing November. a thing I I arguments. our – of schedule North our just a think one

Mike Zaremski

And great. did one. pay-to-incurred change last we less on guess got already we're what you trend of talked to, I on the used haven't maybe the yet. one and Okay, guys to levels kind a give release enough Any wise enough of than loss you kind that kind or guys I on that little checked call of happened? caused to this disclosure

Steve Johnston

That's a good question.

that think that pay-to-incurred do not I the looking necessarily something I with older ratios to there accident be the had do just losses was in some that at in would of this. in think that larger years it's being and more of prudent the regard.

Mike Zaremski

you much. very Thank

Operator

Your next Meyer KBW. from Shields of question comes the from line

open. Your line is

Meyer Shields

that I Thanks. And One quarter. better follow-up the had than personal year-over-year quarter. in quarter probably is the both question. Phil third and improvement ratio commercial general we third more second in there’s can saw on the loss And in auto, I the driving underlying think if Stefano’s we've sense is,

improvement clarify sequential improvement? year-over-year drove you’d in what that hoping the just whether, So

Steve Johnston

information. see follow uptick That's – did a quarter. what good in report activity there of Meyer. through point, Google was And public Analytics the that's they terms the driving we an in driving And third we in

cautious overconfident want confidence or we taking our taking And little go why being maybe actions that's we subdued and that's what in and also be to in bit or don't that influence. a some having good that a the comments. that route just We gives we're as – forward so a us we're

Meyer Shields

in adjustment auto first fair. lines year in that's the the loss ratio? the the third Was half of any No, to quarter there

Steve Johnston

don't third any usually number. have at I sure development I'm year second prior Well, quarter. We not look and from that quarter about first into developments.

Meyer Shields

of question request. a guess Okay. way business be we documents how so then any of appeals how out. the there's that say the plays there that's to, can in it's a other let's just a interruption see Obviously, lot filing, access more playing broader we the get or out? I Is And you'll or interest could

Steve Johnston

but into on lawyers I'm lawyers me us, they that got where not sure – our I falls – don't tell my get know Meyer. lawyer, being one. sure. – I'm you've not I me it. would That not a

Meyer Shields

enough. you much. Fair so lawyer. Not Okay. a Thank

Steve Johnston

Thank you.

Operator

of Markets. question [Operator from comes from Capital the Instructions] Your RBC line next Mark Dwelle

open. is line Your

Mark Dwelle

Yes. Good morning.

lot I the of been around think same a people asking question. have

personal other when are point to but quarter do try of about in the expense of XX me commercial ratio, looking quarter improved a improvement to the expense year And quarter third one relates factors to ratio. a the ratio, similar points the the the quarter, from different accident Let little improvement? five with There's it points. lines Five again, what in combined I’m segment, margin the way, that second at it. the second a third to by

So I'm was second just the two quarter? than third trying to reconcile better the quarter those points. Why

Steve Johnston

loss out. Yes. it's It's know just us them a We ahead separate mixture got difficult know trend. that of for of that things cost just to we rate, we that was that

we talk lines lines, bit been a know they've personal about working in hard in quite the in as We commercial our side the segmentation well. but lines, even that personal really also the

write modeling Casualty new the getting called have new growth we're that best generation, up to writing that Cincinnati predictive in company We on really rating focuses really that we’re deploying a new good takes risks, trying to our – a company.

in in regard, it's the is that for So I precisely point attribute just this improvement think or one mix difficult us to helping the environment really to, to another.

Mark Dwelle

like notable that? differences non-cat in any anything weather there things or like Were

Steve Johnston

stable. fairly in maybe the in a third was bit non-cat And non-cat less fact, weather The quarter. little

So little could I a of bit explanation. guess have an that

Mark Dwelle

Okay.

Steve Spray

see we've we've well, is books of a And to in the stringent the action culminating, that labor specific getting those underwriting and been quarters, several – this that's through in starting just taking we we've of Steve too. as that states. Mark, we're more Spray for personal that lines think – is fruits kind we think

Mark Dwelle

continuing second improving would but Okay. maybe the there. return guess, would little lines maybe the And drill I the quarter of was hood? business, I thought was a going you submissions would incurred result a quarter. you on are a premiums, some contrary a that not conditions, trend, new you going premium thought I what negative That's I out most not that economic to little you about economic Could helpful. an down see in of of cancellations, help bit had, talked it of have people On certainly in to have guess, whatever. mean, expectations have a trend, underneath graph the third the I business. lot commercial – bit on as of

Mike Sewell

Hey, this Mike. is

premiums. then Let generating I'll $X in, just maybe we've if me bit but is and $X that that was about million about the per previous audit has If million start little $X so And per third from audit to about want – in so chime during quarters. premium. quarter at the month down premiums second been we're few look it – comments that down to make audit gone. or where and to back maybe related with a million month the $X quarter, so a million others $X-plus I million, And probably to

impacted audit were but the we're the largest seeing pandemic comp not general policies as the there we're decreases into E&S audit so getting has from the The So premiums in are workers' as also deeper liability coming in really declining area premiums auditing also. lines, we're during been period. far. the decreases

did third that down in a out the look it it coming $X quarter we second million do take in We total accrual And $XX affecting by most this accrual for so decrease gotten during quarter. and also. future million accrual with of had $X at that's audit. we've that we million the So so taken quarter

if is others other it audit on where that's comments. let’s have So see premiums,

Steve Johnston

Well put, Mike.

Operator

question next go apologies, the please line. My ahead. comes Your from

Steve Johnston

Mark, are you on? still

Operator

still is on. Mr. Dwelle

Mark Dwelle

loss for the degree that ask you claims to IBNR primarily primarily resolved? derecho The or wasn't significant surprised there on. We I million Sorry, of large And the thought I event losses, question is was the process in guess, I but guess, single $XXX the a ratio related I unusual that losses. question had that the moved understand losses, thought and of, being Iowa guys last sufficiently I scope. is that in of it was to I tally is are event were pipeline in that all I that terms fairly what are I'd well

Steve Johnston

I any information just have hurricane process Iowa have being – right they're the through its right those where Mullen on going that winds going that. towards would think we're in exposure. have but – resolved, went company the Chicago up of – type may Marty some that But in we're were in think – writes and in to Midwest to the right I

that the but from think there, time a I good here that we're magnitude loss a exposure doing we're job to to managing have in going Midwest. in time, our of pretty

Marty Mullen

hurricane of and event actual for in for winds, claims Yes, It’s commercial Mark. XX% account for the with Midwest, unusual on the personal along This XX% the is an lines was the those Marty. kind us lines account.

lines. when loss, incurred look commercial the at XX% loss was However, of the you

hit us Midwest and presence a of more we were in So where type of commercial an than that of loss. severe losses area the in it where a the nature a just belt for might had we were wind expect they

ultimately think and been the event behind Losses have I forward. great can in So we've on handle one got I inspected, move and that reserved, us that you think put we established saw that's release. And as event. a

Mark Dwelle

additional appreciate color. that Thanks. I

questions. all my that's So

Steve Johnston

you, Thank Mark.

Operator

question comes Suisse. next from from Zaremski Your line Mike the of Credit

is line Your open.

Mike Zaremski

Thanks a for follow-up. for allowing in me

appealed policies? Cincinnati – you and that a is that decision would Financial appealed, fair the being being Or in kind that of an one outlier? say say North one Just policy is sorry, more is the maybe similar to follow-up, lot of it Carolina, unique policy to the

Steve Johnston

on one. an Well, we're that we’re I and this think, given appeal litigation that filing in

to just to, understand, advice provisions want specific the policies. of specifics the can the anything of the of don't you think counsel talk any I on I about

Mike Zaremski

we've Understood. figured ask. I – and got I Yes. just questions, so I'd some Okay. try

all again insights. you Thank for the Okay.

Steve Johnston

Mike. you, Thank

Operator

to at time. the There turn call back I’ll remarks. Johnston for closing questions Mr. further this are no

Steve Johnston

and Jason, us on forward all thanks you, joining a great look again you Thank our to of to Have speaking with day. quarter for you call. fourth We today.

Cincinnati Financial (CINF) 27 Oct 202020 Q3 Earnings call transcript