Cincinnati Financial(US:CINF)2025-10-27 20:09Financial Performance - Earned premiums for Q3 2025 were $2,567 million, a 12% increase from $2,297 million in Q3 2024[102] - Net income for Q3 2025 increased by $302 million to $1,122 million, a 37% rise compared to $820 million in Q3 2024[104] - Total revenues for Q3 2025 reached $3,726 million, up 12% from $3,320 million in Q3 2024[102] - Investment income, net of expenses, increased by 14% to $295 million in Q3 2025 from $258 million in Q3 2024[102] - Total revenues for the third quarter of 2025 were $2,488 million, a 12% increase from $2,220 million in the same period of 2024[119] - The underwriting profit for Q3 2025 was $293 million, a significant increase of $231 million compared to $62 million in Q3 2024[119] - The underwriting profit for personal lines was $99 million in Q3 2025, compared to a loss of $69 million in Q3 2024[166] - The underwriting profit for excess and surplus lines increased by 138% to $19 million in Q3 2025, up from $8 million in Q3 2024[183] Assets and Equity - Total assets increased by 11% to $40,567 million as of September 30, 2025, compared to $36,501 million at year-end 2024[108] - Shareholders' equity rose by 11% to $15,406 million at September 30, 2025, up from $13,935 million at year-end 2024[108] - Cash and cash equivalents totaled $1.460 billion as of September 30, 2025, compared to $983 million at December 31, 2024[217] Premiums and Growth - For the first nine months of 2025, consolidated property casualty net written premium year-over-year growth was 10%, compared to the industry's 6% growth rate[113] - Net written premiums for Q3 2025 increased by $200 million, totaling $2.493 billion, and for the nine months ended September 30, 2025, increased by $721 million to $7.721 billion compared to the same periods in 2024[131] - Agency renewal written premiums rose by 13% to $2.037 billion in the third quarter of 2025, and by 14% to $6.084 billion for the nine months ended September 30, 2025[128] - Earned premiums for the commercial lines segment increased by 8% to $1,229 million in Q3 2025, compared to $1,137 million in Q3 2024[147] - Personal lines earned premiums increased by 24% to $838 million for Q3 2025, and by 23% to $2.34 billion for the first nine months of 2025 compared to the same periods in 2024[166] Losses and Expenses - Catastrophe losses for Q3 2025 were $152 million lower after taxes, positively impacting net income and underwriting profit[104] - Total losses incurred for the nine months ended September 30, 2025, were $4.147 billion, reflecting a 17% increase from $3.557 billion in the same period of 2024[145] - The total large loss ratio for the first nine months of 2025 was 4.4%, which is 1.1 percentage points higher than the 3.3% reported for the same period in 2024[145] - Loss and loss expenses from current accident year before catastrophe losses were $728 million, a 5% increase from $691 million in Q3 2024[147] - Catastrophe losses accounted for 7.1 percentage points of the combined ratio in Q3 2025, down from 26.6 points in the same period last year[175] Ratios and Performance Metrics - The GAAP combined ratio for the first nine months of 2025 was 98.4%, including 14.2 percentage points of current accident year catastrophe losses[113] - The combined ratio for Q3 2025 improved to 88.2%, a decrease of 9.2 percentage points from 97.4% in Q3 2024[124] - The combined ratio for personal lines improved to 50.9% in Q3 2025, compared to 71.7% in Q3 2024[179] - The combined ratio improved by 1.9 percentage points to 91.1% in Q3 2025, and by 4.2 percentage points to 92.0% for the first nine months of 2025, compared to the same periods in 2024[156] Investment and Cash Flow - Total investment income for the three months ended September 30, 2025, was $295 million, a 14% increase from $258 million in the same period of 2024[205] - Cash flow from operations rose by 19% to $992 million for the three months ended September 30, 2025, compared to $836 million in the same period of 2024[225] - Investment income received increased by 13% to $217 million for the three months ended September 30, 2025, compared to $192 million in the same period of 2024[225] Reinsurance and Catastrophe Management - The company purchased an additional layer on its property catastrophe reinsurance treaty effective July 1, 2025, increasing the total limit from $1.500 billion to $1.800 billion[139] - Net losses from catastrophes for the first nine months of 2025 included recoveries from reinsurers estimated at $429 million related to the California wildfires[138] - Total catastrophe losses incurred for the nine months ended September 30, 2025, amounted to $952 million, with a total of $661 million for the calendar year incurred[143] Dividends and Shareholder Returns - Cash dividends declared per share increased by 7% to $0.87 in Q3 2025 from $0.81 in Q3 2024[102] - The lead insurance subsidiary declared dividends of $350 million to the parent company in the first nine months of 2025, up from $290 million in the same period of 2024[219] - The company declared regular quarterly cash dividends of $0.87 per share, totaling $392 million in cash dividends paid to shareholders during the first nine months of 2025[237]