Shares of Cincinnati Financial (NASDAQ: CINF ) have been a solid performer over the past year, gaining over 38%. The insurer has benefited from improving underwriting results, given favorable premium inflation. Additionally, its relatively unique investment portfolio, which has a largeOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or ...

Cincinnati Financial Corporation (NASDAQ:CINF) Q3 2024 Earnings Conference Call October 25, 2024 11:00 AM ET Company Participants Dennis McDaniel - IRO Steve Spray - President and CEO Mike Sewell - EVP and CFO Steve Soloria - Chief Investment Officer Conference Call Participants Michael Phillips - Oppenheimer Michael Zaremski - BMO Capital Markets Gregory Peters - Raymond James Jing Li - KBW Grace Carter - Bank of America Merrill Lynch Operator Good day and welcome to the Cincinnati Financial Corporation’s ...

Cincinnati Financial Corporation (CINF) reported third-quarter 2024 operating income of $1.42 per share, which missed the Zacks Consensus Estimate by 2.7%. The bottom line decreased 14% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The quarterly results of CINF were aided by higher bond interest income, premium growth initiatives, price increases and a higher level of insured exposures. However, the upside was partly offset by poor underwriting income and escalating ...

Cincinnati Financial Corporation Supplemental Financial Data for the period ending September 30, 2024 6200 South Gilmore Road Fairfield, Ohio 45014-5141 cinfin.com Investor Contact: Media Contact: Shareholder Contact: Dennis E. McDaniel Betsy E. Ertel Brandon McIntosh 513-870-2768 513-603-5323 513-870-2696 | --- | --- | --- | --- | --- | |---------------------------------------------------------|--------------------|---------------|---------------------------|---------------------| | Cincinnati Financial Co ...

Cincinnati Financial (CINF) reported $2.56 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 13%. EPS of $1.42 for the same period compares to $1.66 a year ago.The reported revenue represents a surprise of +1.32% over the Zacks Consensus Estimate of $2.53 billion. With the consensus EPS estimate being $1.46, the EPS surprise was -2.74%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Company Performance - Cincinnati Financial reported quarterly earnings of $1.42 per share, missing the Zacks Consensus Estimate of $1.46 per share, and down from $1.66 per share a year ago, representing an earnings surprise of -2.74% [1] - The company posted revenues of $2.56 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.32%, and up from $2.27 billion year-over-year [1] - Over the last four quarters, Cincinnati Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Stock Performance - Cincinnati Financial shares have increased approximately 34.2% since the beginning of the year, outperforming the S&P 500's gain of 21.5% [2] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.20 on revenues of $2.59 billion, and for the current fiscal year, it is $6.55 on revenues of $10 billion [4] - The estimate revisions trend for Cincinnati Financial is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Insurance - Property and Casualty industry is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - FNF Group, another company in the same industry, is expected to report quarterly earnings of $1.41 per share, reflecting a year-over-year change of +14.6%, with revenues anticipated to be $3.34 billion, up 20.3% from the previous year [5]

Financial Performance - Total revenues for Q3 2024 increased by $1.509 billion (83%) compared to Q3 2023, driven by higher earned premiums, investment income, and net investment gains [61]. - Net income for Q3 2024 was $820 million, a significant increase of $919 million compared to a net loss of $99 million in Q3 2023 [63]. - Comprehensive income for Q3 2024 reached $1.140 billion, up from a loss of $300 million in Q3 2023, marking a substantial recovery [61]. - Cash dividends declared per share increased by 8% to $0.81 in Q3 2024 compared to $0.75 in Q3 2023, continuing a 63-year trend of annual dividend increases [65]. - Total revenues for the first nine months of 2024 were $6,293 million, an 11% increase from $5,669 million in the same period of 2023 [76]. - Cash flow from operations increased by 39% to $836 million for the three months ended September 30, 2024, compared to $602 million in the same period of 2023 [136]. Assets and Equity - Total assets as of September 30, 2024, increased by 13% to $37.009 billion compared to $32.769 billion at year-end 2023 [66]. - Shareholders' equity rose by 14% to $13.804 billion, with book value per share increasing by 15% to $88.32 [67]. - The debt-to-total-capital ratio improved to 5.6% from 6.3% at year-end 2023, indicating stronger financial stability [67]. - The debt-to-total-capital ratio was reported at 5.6% as of September 30, 2024 [72]. - As of September 30, 2024, the company held $5.419 billion in cash and cash equivalents and invested assets at the parent company level [72]. Investment Performance - Investment income, net of expenses, for Q3 2024 was $258 million, a 15% increase from $225 million in Q3 2023 [61]. - Pretax investment income for the first nine months of 2024 was $745 million, reflecting a 14% increase compared to the same period in 2023 [71]. - Total investment gains and losses reported in net income reached $758 million for Q3 2024, a significant increase from a loss of $456 million in Q3 2023 [125]. - The average yield on fixed-maturity securities acquired during the first nine months of 2024 was 5.68%, higher than the 6.15% average yield for the same period in 2023 [122]. - Dividend income decreased by $1 million to $68 million in Q3 2024, while it increased by $4 million to $209 million for the first nine months of 2024 [124]. Underwriting Performance - The underwriting profit for the third quarter of 2024 was $62 million, a decrease of $50 million compared to the third quarter of 2023, primarily due to an increase in catastrophe losses [75]. - The combined ratio for Q3 2024 rose to 97.4%, an increase of 3.0 percentage points from 94.4% in Q3 2023 [78]. - Catastrophe losses contributed 13.0 percentage points to the combined ratio in Q3 2024, compared to 9.1 percentage points in Q3 2023 [84]. - The underwriting profit for Q3 2024 was $81 million, a 56% increase from $52 million in Q3 2023 [92]. - The combined ratio improved by 2.2 percentage points to 93.0% in Q3 2024, with a decrease of 1.3 points in catastrophe losses [96]. Premiums and Growth - Earned premiums for Q3 2024 were $2,217 million, a 13% increase from $1,957 million in Q3 2023 [80]. - Net written premiums for Q3 2024 increased by $336 million, reaching $2,293 million, a 17% growth compared to Q3 2023 [81]. - Consolidated property casualty net written premium growth for the first nine months of 2024 was 14%, exceeding the industry average growth rate of 10% reported by A.M. Best [71]. - Agency renewal written premiums for Q3 2024 were $1,795 million, reflecting a 16% increase from $1,549 million in Q3 2023 [80]. - Personal lines earned premiums increased by 29% to $678 million in Q3 2024 compared to $527 million in Q3 2023 [100]. Catastrophe Losses - Catastrophe losses for Q3 2024 were $282 million, up 66% from $170 million in the third quarter of 2023 [89]. - The total losses incurred for the third quarter of 2024 were $1,266 million, a 19% increase from $1,067 million in the same period of 2023 [89]. - Catastrophe losses accounted for 26.6 percentage points of the combined ratio in Q3 2024, compared to 13.9 points in Q3 2023 [104]. - The personal lines underwriting expense ratio improved due to premium growth outpacing expense growth [104]. - The company plans to remain prudent in reserving for estimated ultimate losses until long-term loss cost trends become clearer [104]. Reserves and Liabilities - The incurred but not reported (IBNR) portion of net loss and loss expense reserves increased by $917 million compared to year-end 2023 [77]. - Total gross reserves increased by $891 million compared to December 31, 2023, primarily due to commercial casualty and homeowner lines of business [146]. - As of September 30, 2024, total gross reserves for property casualty insurance amounted to $9.866 billion, with commercial lines accounting for 63.5% of the total [147]. - Life policy and investment contract reserves were reported at $3.069 billion, slightly up from $3.068 billion at year-end 2023 [148]. - The company discussed its life insurance reserving practices in detail in its 2023 Annual Report, indicating a focus on transparency and accuracy in financial reporting [149].

Financial Performance - Total earned premium for the nine months ended September 30, 2024, was $6,524 million, with property casualty premiums contributing $6,594 million[6] - Net income for the current year was $1,887 million, compared to $660 million for the prior year, reflecting a significant increase[6] - Investment income, net of expenses, totaled $745 million, with investment gains and losses netting $1,507 million[6] - The company reported a total revenue of $8,799 million for the nine months ended September 30, 2024[6] - Total revenues for the third quarter of 2024 reached $3,320 million, an increase from the previous year[7] - Net income for the current year was reported at $820 million, compared to a net loss of $164 million in the prior year[7] - The company reported a capital gains of $162 million for the quarter[7] - The company maintains strong ratings from various agencies, including an A+ rating from A.M. Best for its insurance subsidiaries[1] Losses and Expenses - Losses and contract holders' benefits amounted to $4,464 million, with underwriting, acquisition, and insurance expenses at $1,954 million[6] - Total expenses for the quarter were $2,280 million, with losses and contract holders' benefits accounting for $1,610 million[7] - Underwriting, acquisition, and insurance expenses were $683 million, reflecting the company's operational costs[7] - Total losses incurred for the third quarter of 2024 amounted to $1,266 million, compared to $1,083 million in the same quarter of the previous year, representing a 17% increase[8] - Losses incurred but not reported reached $185 million in the third quarter of 2024, up from $122 million in the same quarter of 2023, indicating a 52% increase[8] - Catastrophe losses for the third quarter were $282 million, a significant rise from $20 million in the same quarter last year, reflecting a 1,310% increase[8] - The total incurred losses for the nine months ended September 30, 2024, were $3,557 million, compared to $3,259 million for the same period in 2023, representing a 9% increase[8] - The company reported a total of $1,252 million in losses for the six months ended June 30, 2024, compared to $1,214 million for the same period in 2023, reflecting a 3% increase[8] Premiums and Growth - The company’s property casualty written premium is recognized on an annualized basis at the effective date of the policy, with trends analyzed to assess business efforts[5] - Net written premiums for the commercial casualty segment were $364 million in Q3 2024, reflecting a year-over-year increase of 10%[13] - Earned premiums for the commercial property segment reached $361 million, with a year-over-year growth of 13%[13] - The company anticipates continued growth in net written premiums across all segments, driven by market expansion strategies[13] - Net written premiums for personal auto increased to $296 million, reflecting a year-over-year change of 30%[15] - Earned premiums for personal auto reached $242 million, with a year-over-year increase of 31%[15] - Homeowner net written premiums rose to $442 million, showing a year-over-year growth of 30%[15] - Net written premiums for the nine months ended September 30, 2024, reached $483 million, reflecting a year-over-year increase of 14%[16] Ratios and Metrics - The total loss ratio for the twelve months ended December 31, 2024, was 54.7%, compared to 57.6% for the previous year[9] - The overall loss expense ratio for the company was 50.9%, an increase from 41.0% in the prior year[14] - Total loss and loss expense ratio improved to 68.6% for the nine months ended September 30, 2024, compared to 64.5% in the prior year[16] - The statutory combined ratio for Q4 2024 was 97.8%, compared to 89.4% in Q4 2023, indicating a deterioration in underwriting performance[20] - The loss ratio for Q4 2024 was 58.3%, slightly improved from 59.1% in Q3 2024 but higher than 54.9% in Q4 2023[19] - The GAAP combined ratio for Q4 2024 was 97.4%, compared to 87.5% in Q4 2023, highlighting a significant increase in overall loss and expense ratios[20] Investment Performance - Net investment income earned reached $168 million, up 25% from $143 million in Q3 2023[27] - Net investment gains (net of tax) surged to $453 million, a 287% increase from $117 million in Q3 2023[27] Other Operations - The total noninsurance operations loss for the company was $(16) million in Q3 2024, compared to $(19) million in Q2 2024[30] - Interest and fees on loans and leases amounted to $3 million in Q3 2024, up from $2 million in Q2 2024[30] - Operating expenses for the company were $6 million in Q3 2024, a decrease from $9 million in Q2 2024[30]

Cincinnati Financial Corporation (CINF) is scheduled to report third-quarter 2024 earnings on Oct. 24, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 27.01%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Factors to NotePremiums are likely to have benefited from improved exposure, better pricing, increased property casualty agency and new business written premiums, higher standard lines new business a ...

CINCINNATI, Oct. 8, 2024 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) plans to release its third-quarter 2024 results on Thursday, October 24, 2024, after the close of regular trading on the Nasdaq Stock Market. The company will hold a conference call to discuss third-quarter 2024 results on Friday, October 25, at 11 a.m. ET. To access the call webcast, please visit investors.cinfin.com. A replay will be available approximately two hours after the event's completion. About Cincinnati Fina ...