Cincinnati Financial(US:CINF)2025-04-28 20:14Premiums and Revenues - Earned premiums for Q1 2025 were $2,344 million, a 13% increase from $2,071 million in Q1 2024[94] - Total revenues decreased by $369 million, down 13% from $2,935 million in Q1 2024 to $2,566 million in Q1 2025[94] - Earned premiums for the first quarter of 2025 were $2.264 billion, a 14% increase from $1.992 billion in the same period of 2024[110] - Net written premiums for Q1 2025 grew by $247 million, reaching $2,495 million, representing an 11% increase compared to Q1 2024[119] - Earned premiums for the commercial lines segment grew by 9% to $1,179 million in Q1 2025, up from $1,082 million in Q1 2024[134] - Personal lines earned premiums increased by 19% to $698 million in Q1 2025, compared to $588 million in Q1 2024[148] - Excess and surplus lines earned premiums grew by 17% to $162 million in Q1 2025, compared to $139 million in Q1 2024[162] Investment Income - Net investment income increased by 14% to $280 million in Q1 2025, compared to $245 million in Q1 2024[94] - Total investment income increased by 14% to $280 million in Q1 2025, up from $245 million in Q1 2024[180] - Investment gains and losses turned negative at $67 million in Q1 2025, compared to a gain of $612 million in Q1 2024[180] - Average yield on fixed-maturity securities increased to 4.92% pretax for 2025 from 4.65% in 2024[185] Losses and Underwriting Performance - Net loss for Q1 2025 was $90 million, a significant decline from net income of $755 million in Q1 2024[94] - The underwriting loss for the first quarter of 2025 was $298 million, a decrease of $429 million from an underwriting profit of $131 million in the first quarter of 2024[110] - The combined ratio for the first quarter of 2025 was 113.3%, an increase of 19.7 percentage points from 93.6% in the same period of 2024, primarily due to catastrophe losses[110] - Total losses incurred in Q1 2025 reached $1,627 million, reflecting a 50% increase from $1,083 million in Q1 2024[131] - Catastrophe losses in Q1 2025 were $356 million higher after taxes, primarily due to wildfires in Southern California[96] - Catastrophe losses contributed 25.0 percentage points to the combined ratio in the first quarter of 2025, compared to 5.9 percentage points in the same period of 2024[125] Shareholders' Equity and Dividends - Shareholders' equity decreased by 2% to $13,718 million as of March 31, 2025, down from $13,935 million at year-end 2024[99] - Cash dividends declared per share increased by 7% to $0.87 in Q1 2025, compared to $0.81 in Q1 2024[98] - Cash dividends paid to shareholders totaled $125 million in the first three months of 2025, with an indicated annual rate of $3.48 per share[215] - The company did not declare dividends to the parent company in the first three months of 2025, compared to $145 million in the same period of 2024[198] Reserves and Capital Structure - Total gross reserves increased by $770 million from December 31, 2024, to March 31, 2025, driven by increases in homeowner and commercial casualty lines[217] - The total gross reserves at March 31, 2025, amounted to $10.707 billion, with case loss reserves at $3.783 billion and IBNR reserves at $5.064 billion[219] - The debt-to-total-capital ratio was 5.6% at March 31, 2025, significantly below the 35% covenant threshold[206] - The ratio of property casualty net written premiums to statutory surplus was 1.1-to-1 for the 12 months ended March 31, 2025, compared to 1.0-to-1 at year-end 2024[106] Agency and Market Activity - The company actively marketed through 2,199 agencies located in 46 states as of March 31, 2025[103] - Agency renewal written premiums for the first quarter of 2025 were $1.912 billion, a 14% increase from $1.683 billion in the same period of 2024[118] - Agency renewal written premiums increased by 7% to $1,152 million in Q1 2025, compared to $1,076 million in Q1 2024[142] - Agency renewal written premiums rose by 12% to $126 million in Q1 2025, while agency new business written premiums increased by 26% to $53 million[165] Catastrophe and Large Losses - Total catastrophe losses incurred for Q1 2025 amounted to $567 million, a significant increase from $117 million in Q1 2024[130] - Current accident year losses greater than $5 million totaled $26 million in Q1 2025, compared to none in Q1 2024[131] - Total large losses incurred in commercial lines for Q1 2025 were $66 million, significantly higher than the $23 million incurred in Q1 2024, with a notable increase attributed to the commercial property line[146] - Large losses incurred in Q1 2025 totaled $102 million, significantly higher than the $44 million reported in Q1 2024[132] Personal and Commercial Lines Performance - The personal lines combined ratio increased to 151.3% in Q1 2025, up 57.4 percentage points from 93.9% in Q1 2024, primarily due to increased catastrophe losses[154] - The combined ratio for commercial lines improved to 91.9% in Q1 2025, down from 96.5% in Q1 2024[134] - The net favorable reserve development for commercial lines in Q1 2025 was $43 million, up from $38 million in Q1 2024, primarily due to lower-than-anticipated loss emergence on known claims[144] - Personal lines new business written premiums increased by $5 million or 4% in Q1 2025, with agency renewal written premiums rising by 28%[151]