- Adjusted Operating EPS: $1.29, higher than the estimated $0.96.
- Premiums Earned: $2.16 billion, an 11% year-over-year increase but slightly below the $2.2 billion estimate.
- P&C Net Premiums Written: $2.46 billion, up 14% year-over-year, beating the $2.41 billion estimate.
- Investment Income: $242 million, a 10% increase year-over-year, though short of the $250 million estimate.
- Combined Ratio: 98.5%, compared to 97.6% last year and an estimate of 102%.
- Underwriting Expenses Ratio: 30.4%, up from 29.9% last year, against an estimate of 29.8%.
- Combined Ratio Before Catastrophe Losses: 88.2% versus 90.4% last year.
- Commercial Lines Accident Ratio Before Catastrophe Losses: 60%, compared to 60.3% last year and beating the 61% estimate.
- Book Value Per Share: $81.79, an increase from $70.33 last year, slightly above the $81.12 estimate.
- Loss and Loss Expense Ratio: 68.1%, better than the 72.3% estimate.
- Personal Lines Accident Ratio Before Catastrophe Losses: 54.9%, lower than 58.9% last year and the 56.2% estimate.
- Analyst Ratings: 6 buy ratings, 4 hold ratings, and 0 sell ratings.
Cincinnati Financial on Smartkarma
Analyst coverage of Cincinnati Financial on Smartkarma has been positive, particularly with Baptista Research‘s recent report titled “Cincinnati Financial Corporation: Initiation of Coverage – A Story Of Expansion and Diversification in Reinsurance and Global Operations! – Major Drivers”. The research highlights the company’s strong financial results for the first quarter of 2024, showcasing progress in underwriting profitability and growth in investment income. Cincinnati Financial reported a net income of $755 million, with a substantial gain from the increase in the fair value of equity securities. The non-GAAP operating income also nearly doubled from the previous year to $272 million, attributed to a reduction in catastrophe losses and robust operating performance.
A look at Cincinnati Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have given Cincinnati Financial a strong overall outlook based on their Smart Scores. With high scores in value, resilience, and momentum, the company is positioned well for the long term. This indicates that the company is seen as offering good value for investors, maintaining steady performance even in challenging conditions, and showing consistent upward movement.
Cincinnati Financial Corporation, known for its property and casualty insurance offerings, has also garnered moderate scores in dividend and growth categories. While not the highest, these scores still indicate a decent outlook in terms of dividend payments and potential for growth. Investors may view Cincinnati Financial as a reliable choice with a solid foundation and room for advancement in the foreseeable future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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