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Dec 31, 2023
Cincinnati Financial Q4 2023 Earnings Report
Cincinnati Financial's Q4 2023 net income increased, driven by property casualty underwriting profit and investment gains.
Key Takeaways
Cincinnati Financial Corporation reported a strong fourth quarter with net income of $1.183 billion, or $7.50 per share, compared to $1.013 billion, or $6.41 per share, in Q4 2022. Non-GAAP operating income increased by 78% to $359 million, or $2.28 per share. The property casualty combined ratio improved to 87.5%. Book value per share rose to $77.06, and the full-year value creation ratio was 19.5%.
Net income for Q4 2023 was $1.183 billion, or $7.50 per share, compared to $1.013 billion, or $6.41 per share, in Q4 2022.
Non-GAAP operating income increased by 78% to $359 million, or $2.28 per share.
The property casualty combined ratio improved to 87.5% from 94.9% in Q4 2022.
Book value per share increased to $77.06, up $9.85 since year-end 2022.
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 maintaining appropriate pricing in a challenging market environment in 2024, leveraging strong agency relationships and claims service to attract and retain high-quality business.
Positive Outlook
- Pricing precision on accounts underwritten will be refined.
- Strong agency relationships will be maintained.
- Overwhelming claims service will be provided.
- Efforts to attract and retain high-quality business will be supported.
- Cincinnati Re and Cincinnati Global Underwriting Ltd.SM are expected to continue to perform as planned.
Challenges Ahead
- Navigating a challenging market environment in 2024.
- Potential impact of technology innovations such as driverless cars on decreasing consumer demand for insurance products.
- Competition in the insurance industry and changing customer preferences.
- Consolidation of independent insurance agencies may alter competitive advantages.
- Unforeseen departure of certain executive officers or other key employees.
Revenue & Expenses
Visualization of income flow from segment revenue to net income