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Jun 30, 2021
Cincinnati Financial Q2 2021 Earnings Report
Cincinnati Financial reported strong non-GAAP operating income and property casualty underwriting results.
Key Takeaways
Cincinnati Financial Corporation reported a decrease in net income but a significant increase in non-GAAP operating income for the second quarter of 2021. The property casualty insurance operations led the way with strong underwriting profit, and investment income continued to grow.
Second-quarter net income was $703 million, or $4.31 per share.
Non-GAAP operating income increased by 311% to $292 million, or $1.79 per share.
Book value per share at June 30, 2021, was $73.57, up $6.53 since year-end.
The property casualty combined ratio improved to 85.5%.
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 did not provide specific forward guidance but highlighted strategies for growth and profitability.
Positive Outlook
- Excitement for the future among independent agencies.
- Record high in property casualty new business written premiums.
- Underwriters confidently select and price new business.
- Satisfactory renewal pricing trends.
- Ample capital to execute long-term strategies and pay dividends.
Challenges Ahead
- Accounting rule changes cause volatility in net income results.
- Net income decreased compared to the second quarter of 2020 due to investment gains.
- Continued need to hone abilities in pricing precision and policy segmentation.
- Competitive market requires careful underwriting of each policy.
- Uncertainty in the insurance market due to technology innovations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income