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Jun 30, 2024
Cincinnati Financial Q2 2024 Earnings Report
Reported strong non-GAAP operating income results driven by contributions from underwriting and investment operations.
Key Takeaways
Cincinnati Financial Corporation reported a decrease in net income for Q2 2024, primarily due to a decrease in net investment gains. However, non-GAAP operating income increased. The company's book value per share reached a record high, and the value creation ratio showed positive performance.
Second-quarter net income was $312 million, or $1.98 per share.
Non-GAAP operating income increased by 7% to $204 million, or $1.29 per share.
Book value per share reached $81.79, up $4.73 since year-end.
Property casualty new business written premiums topped $400 million for the first time in any single quarter, growing 34% compared with last year.
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's confidence in pricing, risk selection, and agent relationships supports a belief in balancing growth and profitability.
Positive Outlook
- Second-quarter property casualty new business written premiums topped $400 million, growing 34% compared with last year.
- Total property casualty net written premiums saw double-digit growth, increasing 13% compared with the first half of 2023.
- Renewal pricing remained robust with commercial, personal and excess & surplus lines seeing average renewal pricing increases in the high-single-digit percent range.
- Book value again reached a record high, increasing 6.1% since December 31, 2023.
- Consolidated cash and total investments also reached a new high, surpassing $27 billion.
Challenges Ahead
- Ongoing developments concerning business interruption insurance claims and litigation related to the COVID-19 pandemic that affect estimates of losses and loss adjustment expenses
- Effects of any future pandemic, or the resurgence of the COVID-19 pandemic, that could affect results
- An unusually high level of catastrophe losses due to risk concentrations, changes in weather patterns (whether as a result of global climate change or otherwise), environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes
- Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect business
- Events, such as an epidemic, natural catastrophe or terrorism, that could hamper ability to assemble workforce at headquarters location or work effectively in a remote environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income