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Cincinnati Financial
🇺🇸 NASDAQ:CINF
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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.

Total Revenue
$2.17B
Previous year: $1.97B
+10.0%
EPS
$1.21
Previous year: $0.65
+86.2%
Combined Ratio
97.6%
Previous year: 103.2%
-5.4%
Net Written Premiums
$2.15B
Previous year: $1.96B
+9.5%
Gross Profit
$2.61B
Previous year: $820M
+217.7%
Cash and Equivalents
$748M
Previous year: $1.1B
-31.9%
Free Cash Flow
$571M
Previous year: $553M
+3.3%
Total Assets
$31.4B
Previous year: $29.2B
+7.4%

Cincinnati Financial

Cincinnati Financial

Cincinnati Financial Revenue by Segment

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

Company Overview

Full financial data and analysis

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