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Mar 31, 2024
Cincinnati Financial Q1 2024 Earnings Report
Cincinnati Financial's first quarter performance in 2024 was marked by substantial growth in net income and non-GAAP operating income, driven by improvements in underwriting and investment operations.
Key Takeaways
Cincinnati Financial Corporation reported a strong first quarter in 2024, with significant increases in net income and non-GAAP operating income. The company benefited from improved underwriting results and higher investment income, leading to a substantial increase in earnings per share and book value.
Net income increased to $755 million, or $4.78 per share, compared to $225 million, or $1.42 per share, in the first quarter of 2023.
Non-GAAP operating income rose by 93% to $272 million, or $1.72 per share, from $141 million, or $0.89 per share, in the same period last year.
The property casualty combined ratio improved to 93.6% from 100.7% in the first quarter of 2023.
Book value per share reached a record high of $80.83, up $3.77 since the end of 2023.
Cincinnati Financial
Cincinnati Financial
Cincinnati Financial Revenue by Segment
Revenue by Segment
Commercial Lines Revenue
CapyFin.comPersonal Lines Revenue
CapyFin.comE&S Lines Revenue
CapyFin.comLife Insurance Revenue
CapyFin.com Forward Guidance
The company is focused on balancing growth and profitability, leveraging pricing precision tools and data to effectively segment business books and ensure confidence in pricing strategies. Cincinnati Financial aims to enhance its competitive advantages through local independent agencies and create shareholder value.
Positive Outlook
- Reported premium increases in the high-single-digit percent range across all property casualty segments.
- Consolidated property casualty net written premiums grew by 11%, driven by record new business.
- Appointed 88 new agencies so far this year, including 28 focused on personal lines products.
- Personal lines business saw a 54% increase in new business premiums compared to the same period last year.
- The company's ample capital allows it to execute on long-term strategies and continue paying dividends to shareholders.
Challenges Ahead
- Growth slowed at the beginning of last year as the company focused on underwriting discipline.
- The first quarter of 2023 was exceptionally profitable for Cincinnati Re and Cincinnati Global, making this year's comparison more challenging.
- There was an increase of 0.7 percentage points in the underwriting expense ratio for the first three months of 2024, primarily due to higher levels of profit-sharing commissions for agencies.
- The contribution to first-quarter growth from Cincinnati Re and Cincinnati Global in total was negative by less than 1 percentage point.
- The excess and surplus lines insurance results saw a 2.0 percentage-point first-quarter 2024 combined ratio increase, primarily due to lower favorable reserve development on prior accident year loss and loss expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income