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Mar 31, 2023

Cincinnati Financial Q1 2023 Earnings Report

Cincinnati Financial reported a mixed first quarter, with investment income offsetting underwriting losses due to widespread spring storms.

Key Takeaways

Cincinnati Financial Corporation reported a first-quarter 2023 net income of $225 million, or $1.42 per share, a significant improvement compared to the net loss in the first quarter of 2022. However, non-GAAP operating income decreased by 46% to $141 million, or $0.89 per share. The increase in net income was primarily due to higher net investment gains, which offset a decrease in property casualty underwriting income. The combined ratio for the property casualty segment was 100.7%, impacted by elevated catastrophe losses.

Net income was $225 million, or $1.42 per share, compared to a net loss of $266 million, or $1.66 per share, in the first quarter of 2022.

Non-GAAP operating income decreased by 46% to $141 million, or $0.89 per share, compared with $260 million, or $1.62 per share, in the first quarter of last year.

Book value per share increased to $68.33 at March 31, 2023, up $1.12 since year-end.

The property casualty combined ratio was 100.7%, up from 89.9% for the first quarter of 2022, impacted by higher catastrophe losses.

Total Revenue
$2.14B
Previous year: $1.88B
+13.5%
EPS
$0.89
Previous year: $1.58
-43.7%
Combined Ratio
100.7%
Previous year: 89.9%
+12.0%
Book Value per Share
$68.3
Previous year: $75.4
-9.4%
Net Written Premiums
$2.02B
Previous year: $1.9B
+6.3%
Gross Profit
$2.24B
Previous year: $1.22B
+84.0%
Cash and Equivalents
$955M
Previous year: $987M
-3.2%
Free Cash Flow
$246M
Previous year: $194M
+26.8%
Total Assets
$30.5B
Previous year: $30.3B
+0.7%

Cincinnati Financial

Cincinnati Financial

Cincinnati Financial Revenue by Segment

Forward Guidance

No specific forward guidance was provided in the press release.

Revenue & Expenses

Visualization of income flow from segment revenue to net income