June 13, 2011 / 2:07 PM / in 9 years

UPDATE 1-Cincinnati sees Q2 catastrophe losses of $240-$290 mln

* April, May events to reduce Q2 earned premiums by $33-$40 mln

* April, May events to impact Q2 loss ratio by 33-40 percentage points (Follows alerts)

June 13 (Reuters) - Cincinnati Financial Corp said it expects to record a pre-tax catastrophe loss of $240-$290 million, net of reinsurance, in the second quarter due to thunderstorms and tornadoes in the United States in April and May.

The current loss estimate includes the U.S. Midwestern property and casualty insurer’s prior loss estimate of $155-$190 million from April storm losses.

Severe thunderstorms and tornadoes in late May might result in $4-$7 billion in insured losses for the industry, according to risk modelling firm AIR Worldwide.

Cincinnati also expects reinsurance coverage for catastrophes in April and May to cut into second-quarter earned premiums by about $33-$40 million.

On its reinsurance program, Chief Executive Steven Johnston said though the company might not buy coverage for 2011 single-event catastrophe losses between $45-$105 million, it might do so for losses between $105-$200 million.

Shares of the Fairfield, Ohio-based firm were trading at $29.00 on Monday on Nasdaq. (Reporting by Rachel Chitra in Bangalore; Editing by Don Sebastian)

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