Cincinnati Financial Q4 2024 Earnings Report

Key Takeaways

Cincinnati Financial reported a strong Q4 2024 with a 15% increase in earned premiums, reaching $2.365 billion. However, net income declined to $405 million due to a $916 million decrease in after-tax net investment gains. Non-GAAP operating income increased 38% to $497 million, driven by higher underwriting profits and investment income.

Total Revenue

$2.54B

Previous year: $3.36B

-24.4%

EPS

$3.14

Previous year: $2.28

+37.7%

Combined Ratio

84.7%

Previous year: 87.5%

-3.2%

Book Value Per Share

$89.1

Previous year: $77.1

+15.6%

Net Written Premiums

$2.24B

Previous year: $1.92B

+16.8%

Cash and Equivalents

$983M

Previous year: $907M

+8.4%

Total Assets

$36.5B

Previous year: $32.1B

+13.8%

Cincinnati Financial Revenue

Cincinnati Financial EPS

Cincinnati Financial Revenue by Segment

Forward Guidance

The company expects continued premium growth, disciplined underwriting, and strong agency relationships to drive performance in 2025. Market conditions remain challenging, but Cincinnati Financial is focused on maintaining profitability through pricing precision and claims management.

Positive Outlook

Continued premium growth in all segments
Strong underwriting profitability with a lower combined ratio
Investment income growth from fixed-maturity securities
Increased agency appointments supporting expansion
Solid capital position with growing book value per share

Challenges Ahead

Potential for continued investment losses due to market volatility
Challenges in maintaining underwriting margins in a competitive market
Increased catastrophe losses impacting profitability
Regulatory pressures on insurance pricing and policy terms
Macroeconomic risks affecting overall insurance demand