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Dec 31, 2019
Cincinnati Financial Q4 2019 Earnings Report
Cincinnati Financial's Q4 2019 net income increased, driven by investment gains and property casualty underwriting profit.
Key Takeaways
Cincinnati Financial Corporation reported a significant increase in fourth-quarter net income, reaching $626 million or $3.79 per share, compared to a net loss in the previous year. Non-GAAP operating income also rose, and the company's book value per share hit a record high. The increase in net income was largely due to investment gains and improved property casualty underwriting profit.
Net income for Q4 2019 was $626 million, or $3.79 per share, a substantial increase from the net loss in Q4 2018.
Non-GAAP operating income for Q4 2019 increased by 28% to $203 million, or $1.23 per share.
Book value per share reached a record high of $60.55 at the end of 2019, up 25.9% from the previous year.
The property casualty combined ratio improved to 91.6% in Q4 2019 from 93.9% in Q4 2018.
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, refining pricing precision, and leveraging agency relationships and claims service to attract and retain high-quality business. They anticipate recording new business from Cincinnati Global and will continue to increase regular annual dividends.
Positive Outlook
- Balance growth and profitability
- Refine pricing precision
- Leverage agency relationships
- Maintain strong claims service
- Increase regular annual dividends
Challenges Ahead
- Challenging market environment in 2020
- Volatility from accounting rule changes
- Potential for increased competition
- Risk of catastrophe losses
- Economic instability or recession
Revenue & Expenses
Visualization of income flow from segment revenue to net income