Cincinnati Financial(CINF) - 2024 Q3 - Quarterly Results

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]