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Jun 30, 2023
Cincinnati Financial Q2 2023 Earnings Report
Cincinnati Financial reported a net income of $534 million, or $3.38 per share, and non-GAAP operating income increased by 103% to $191 million, or $1.21 per share, compared to the second quarter of last year. The property casualty combined ratio was 97.6%, down from 103.2% in the second quarter of 2022.
Key Takeaways
Cincinnati Financial Corporation reported a significant increase in net income for the second quarter of 2023, driven by higher insurance underwriting profits and a rise in investment portfolio income. The company's combined ratio improved, and net written premiums grew, reflecting disciplined growth and strategic expansion.
Net income for the second quarter of 2023 was $534 million, or $3.38 per share, compared to a net loss of $818 million, or $5.12 per share, in the second quarter of 2022.
Non-GAAP operating income increased by 103% to $191 million, or $1.21 per share, compared to $94 million, or $0.59 per share, in the second quarter of last year.
The property casualty combined ratio improved to 97.6% in the second quarter of 2023, down from 103.2% in the second quarter of 2022.
Net written premiums grew by 9% in the second quarter of 2023, driven by premium growth initiatives, price increases, and a higher level of insured exposures.
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.com Forward Guidance
Cincinnati Financial aims to grow profitably through all market cycles by combining personal service with data-driven analytics, focusing on disciplined growth and precision in pricing and risk management.
Positive Outlook
- Strategic expansion of the independent agency force.
- Overall insured exposure growth.
- Price increases in commercial lines, excess and surplus lines, and personal lines.
- Opportunities in Cincinnati Global Underwriting Ltd.SM and Cincinnati Re®.
- Investments in pricing and risk management expertise.
Challenges Ahead
- Storms continued to increase in frequency, impacting policyholders across the country.
- Weather-related catastrophes contributed approximately 12 points to the second quarter combined ratio of 97.6%.
- Competition in the market is heating up.
- Personal Lines Underwriting profit (loss) $(36) million
- Excess and Surplus Lines Insurance Underwriting profit $11 million, down (42)%
Revenue & Expenses
Visualization of income flow from segment revenue to net income