- Adjusted operating EPS for Cincinnati Financial came in at $1.72, beating the estimated $1.71.
- The premiums earned were $2.07 billion, a year on year increase of 8%, slightly below the estimated $2.12 billion.
- P&C net premiums written increased by 11% to $2.25 billion, surpassing the estimate of $2.2 billion.
- Investment income, net of expenses, rose by 17% year on year to $245 million, beating the $240.5 million estimate.
- The combined ratio came in at 93.6%, an improvement from 100.7% in the same period the previous year and better than the estimated 94.1%.
- Underwriting expenses ratio was slightly higher at 29.8% compared to a year ago at 29.1% and slightly above the estimated 29.7%.
- The combined ratio before catastrophe losses was 91.1%, a slight increase from 90.1% a year ago.
- The Commercial Lines accident ratio before catastrophe losses was at 63% which is favourable compared to 63.9% a year ago but came above the 60.9% estimate.
- The book value per share increased to $80.83 from $68.33 the previous year and beating the estimate of $78.46.
- The Loss and Loss expense ratio was 63.8%, better than the estimated 64.2%.
- The Personal Lines accident ratio before catastrophe losses value was 57.7%, an improvement compared to 59.9% the previous year but came in above the estimated 55.8%.
- Lower catastrophe losses contributed to most of the improvement while the business saw new business premiums increase by 54% compared to the same period the previous year.
- This performance showcases the company’s ability to attract a broad range of new business, including Cincinnati private Client℠ policies, middle-market accounts and homes that qualify for the tailored coverage of the excess and surplus lines company.
- Based on reviews, Cincinnati Financial was given a scorecard of 5 buys, 6 holds, and zero sells.
A look at Cincinnati Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
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
Analysing the Smart Scores for Cincinnati Financial Corporation provides an optimistic long-term outlook for the company. With strong scores in Value, Growth, Resilience, and Momentum, the company is positioned favorably across key factors. A high score in Momentum suggests positive market sentiment and potential for future growth. The company’s solid fundamentals, coupled with a good value proposition and growth prospects, indicate resilience in the face of challenges. Investors may see Cincinnati Financial as a promising opportunity for sustainable returns.
Cincinnati Financial Corporation, known for its property and casualty insurance offerings, as well as life insurance products, continues to demonstrate strength across various financial metrics. The balanced scores across Value, Growth, Resilience, and Momentum highlight the company’s well-rounded performance and strategic positioning in the insurance sector. Additionally, the company’s commitment to providing leasing and financing services further enhances its diversification and revenue streams. Overall, Cincinnati Financial Corporation appears well-equipped to navigate changing market conditions and deliver value to shareholders in the long run.
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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