04/25/2024 | Press release | Distributed by Public on 04/25/2024 14:06
CINCINNATI, April 25, 2024/PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Financial Highlights
(Dollars in millions, except per share data) |
Three months ended March 31, |
|
||||
|
|
2024 |
|
2023 |
|
% Change |
Revenue Data |
|
|
|
|
|
|
Earned premiums |
|
$ 2,071 |
|
$ 1,918 |
|
8 |
Investment income, net of expenses |
|
245 |
|
210 |
|
17 |
Total revenues |
|
2,935 |
|
2,241 |
|
31 |
Income Statement Data |
|
|
|
|
|
|
Net income |
|
$ 755 |
|
$ 225 |
|
236 |
Investment gains and losses, after-tax |
|
483 |
|
84 |
|
475 |
Non-GAAP operating income* |
|
$ 272 |
|
$ 141 |
|
93 |
Per Share Data (diluted) |
|
|
|
|
|
|
Net income |
|
$ 4.78 |
|
$ 1.42 |
|
237 |
Investment gains and losses, after-tax |
|
3.06 |
|
0.53 |
|
477 |
Non-GAAP operating income* |
|
$ 1.72 |
|
$ 0.89 |
|
93 |
|
|
|
|
|
|
|
Book value |
|
$ 80.83 |
|
$ 68.33 |
|
18 |
Cash dividend declared |
|
$ 0.81 |
|
$ 0.75 |
|
8 |
Diluted weighted average share outstanding |
|
157.9 |
|
158.5 |
|
0 |
|
|
|
|
|
|
|
* |
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures section defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles. |
|
Forward-looking statements and related assumptions are subject to the risks outlined in the company's safe harbor statement. |
Insurance Operations Highlights
Investment and Balance Sheet Highlights
A Strong Start to the Year
Steven J. Johnston, chairman and chief executive officer, commented: "Non-GAAP operating income nearly doubled last year's first-quarter results, reaching $272 million on steady contributions from our underwriting and investment operations. Pretax investment income rose $35 million in the first quarter as bond interest grew 21% and dividends from our equity portfolio increased 9%.
"Turning to our insurance operations, our first-quarter combined ratio improved 7.1 percentage points over last year's first quarter to 93.6%. Lower catastrophe losses contributed to most of the improvement and our current accident year combined ratio before catastrophe losses improved for our commercial, personal and excess and surplus lines business.
"The profitability of Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM remain excellent. The first quarter of 2023 was exceptionally profitable for these areas of our company with a current accident year combined ratio before catastrophe losses in the low 70s. In the first quarter of this year, that measure is in the low 90s - more in line with the rest of our property casualty insurance business."
Continuing to Balance Growth and Profitability
"We're pleased with our growth and with premium increases in the high-single-digit percent range reported by each of our property casualty segments. Consolidated property casualty first-quarter net written premiums grew 11%, including record new business of $346 million.
"The main driver for our growth continues to come from the excellent relationships we develop with our agencies. So far this year, we've appointed 88 agencies across the country, including 28 that market only our personal lines products.
"We're focused on balancing growth and profitability. In the beginning of last year, growth slowed as we chose to lean in to our underwriting discipline and walk away from business we believed was too thinly priced. As the market continued to firm over the course of 2023, our growth began to accelerate. In the first quarter of 2024, we continued to see the benefits of investing in pricing precision tools and data that allows us to finely segment our books of business, giving us confidence in our pricing as we consider each risk our agents submit to us.
"Our personal lines business saw new business premiums increase 54% compared to the same period a year ago, reflecting our ability to write new business for a broad range of our agents' clients, including Cincinnati Private Client℠ policies, middle-market accounts and homes that qualify for the tailored coverage of our excess and surplus lines company."
Book Value Reaches Record High
"Book value per share reached a record high of $80.83, an increase of 5% since the end of 2023, and consolidated cash and total investments neared $27 billion. Our ample capital allows us to execute on our long-term strategies and, at the same time, continue to pay dividends to shareholders.
"In January, the board of directors expressed its confidence in our financial strength by again raising the quarterly cash dividend. Our value creation ratio, which considers those dividends as well as growth in book value, was 5.9% for the first quarter. Our associates remain determined to do things just a little better every day, strengthening our ability to compete by enhancing the advantages of our local independent agencies. That has been and continues to be our plan for creating shareholder value far into the future."
Insurance Operations Highlights |
|
|||||
Consolidated Property Casualty Insurance Results |
||||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Earned premiums |
|
$ 1,992 |
|
$ 1,841 |
|
8 |
Fee revenues |
|
3 |
|
2 |
|
50 |
Total revenues |
|
1,995 |
|
1,843 |
|
8 |
|
|
|
|
|
|
|
Loss and loss expenses |
|
1,270 |
|
1,317 |
|
(4) |
Underwriting expenses |
|
594 |
|
536 |
|
11 |
Underwriting profit (loss) |
|
$ 131 |
|
$ (10) |
|
nm |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Loss and loss expenses |
|
63.8 % |
|
71.6 % |
|
(7.8) |
Underwriting expenses |
|
29.8 |
|
29.1 |
|
0.7 |
Combined ratio |
|
93.6 % |
|
100.7 % |
|
(7.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
Agency renewal written premiums |
|
$ 1,683 |
|
$ 1,535 |
|
10 |
Agency new business written premiums |
|
346 |
|
251 |
|
38 |
Other written premiums |
|
219 |
|
233 |
|
(6) |
Net written premiums |
|
$ 2,248 |
|
$ 2,019 |
|
11 |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Current accident year before catastrophe losses |
|
61.3 % |
|
61.0 % |
|
0.3 |
Current accident year catastrophe losses |
|
7.5 |
|
13.8 |
|
(6.3) |
Prior accident years before catastrophe losses |
|
(3.4) |
|
(2.2) |
|
(1.2) |
Prior accident years catastrophe losses |
|
(1.6) |
|
(1.0) |
|
(0.6) |
Loss and loss expense ratio |
|
63.8 % |
|
71.6 % |
|
(7.8) |
|
|
|
|
|
|
|
Current accident year combined ratio before catastrophe losses |
|
91.1 % |
|
90.1 % |
|
1.0 |
|
|
|
|
|
|
|
Commercial Lines Insurance Results |
|
|||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Earned premiums |
|
$ 1,082 |
|
$ 1,056 |
|
2 |
Fee revenues |
|
1 |
|
1 |
|
0 |
Total revenues |
|
1,083 |
|
1,057 |
|
2 |
|
|
|
|
|
|
|
Loss and loss expenses |
|
719 |
|
748 |
|
(4) |
Underwriting expenses |
|
325 |
|
311 |
|
5 |
Underwriting profit (loss) |
|
$ 39 |
|
$ (2) |
|
nm |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Loss and loss expenses |
|
66.4 % |
|
70.9 % |
|
(4.5) |
Underwriting expenses |
|
30.1 |
|
29.5 |
|
0.6 |
Combined ratio |
|
96.5 % |
|
100.4 % |
|
(3.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
Agency renewal written premiums |
|
$ 1,076 |
|
$ 1,041 |
|
3 |
Agency new business written premiums |
|
182 |
|
134 |
|
36 |
Other written premiums |
|
(35) |
|
(34) |
|
(3) |
Net written premiums |
|
$ 1,223 |
|
$ 1,141 |
|
7 |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Current accident year before catastrophe losses |
|
63.0 % |
|
63.9 % |
|
(0.9) |
Current accident year catastrophe losses |
|
7.0 |
|
10.0 |
|
(3.0) |
Prior accident years before catastrophe losses |
|
(2.8) |
|
(3.4) |
|
0.6 |
Prior accident years catastrophe losses |
|
(0.8) |
|
0.4 |
|
(1.2) |
Loss and loss expense ratio |
|
66.4 % |
|
70.9 % |
|
(4.5) |
|
|
|
|
|
|
|
Current accident year combined ratio before catastrophe losses |
|
93.1 % |
|
93.4 % |
|
(0.3) |
|
|
|
|
|
|
|
Personal Lines Insurance Results |
|
|||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Earned premiums |
|
$ 588 |
|
$ 464 |
|
27 |
Fee revenues |
|
1 |
|
1 |
|
0 |
Total revenues |
|
589 |
|
465 |
|
27 |
|
|
|
|
|
|
|
Loss and loss expenses |
|
379 |
|
386 |
|
(2) |
Underwriting expenses |
|
173 |
|
136 |
|
27 |
Underwriting profit (loss) |
|
$ 37 |
|
$ (57) |
|
nm |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Loss and loss expenses |
|
64.5 % |
|
83.3 % |
|
(18.8) |
Underwriting expenses |
|
29.4 |
|
29.2 |
|
0.2 |
Combined ratio |
|
93.9 % |
|
112.5 % |
|
(18.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
Agency renewal written premiums |
|
$ 494 |
|
$ 388 |
|
27 |
Agency new business written premiums |
|
122 |
|
79 |
|
54 |
Other written premiums |
|
(21) |
|
(19) |
|
(11) |
Net written premiums |
|
$ 595 |
|
$ 448 |
|
33 |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Current accident year before catastrophe losses |
|
57.7 % |
|
59.9 % |
|
(2.2) |
Current accident year catastrophe losses |
|
12.4 |
|
30.1 |
|
(17.7) |
Prior accident years before catastrophe losses |
|
(2.0) |
|
(1.3) |
|
(0.7) |
Prior accident years catastrophe losses |
|
(3.6) |
|
(5.4) |
|
1.8 |
Loss and loss expense ratio |
|
64.5 % |
|
83.3 % |
|
(18.8) |
|
|
|
|
|
|
|
Current accident year combined ratio before catastrophe losses |
|
87.1 % |
|
89.1 % |
|
(2.0) |
|
|
|
|
|
|
|
Excess and Surplus Lines Insurance Results |
|
|||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Earned premiums |
|
$ 139 |
|
$ 127 |
|
9 |
Fee revenues |
|
1 |
|
- |
|
nm |
Total revenues |
|
140 |
|
127 |
|
10 |
|
|
|
|
|
|
|
Loss and loss expenses |
|
90 |
|
81 |
|
11 |
Underwriting expenses |
|
38 |
|
33 |
|
15 |
Underwriting profit |
|
$ 12 |
|
$ 13 |
|
(8) |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Loss and loss expenses |
|
64.5 % |
|
64.2 % |
|
0.3 |
Underwriting expenses |
|
27.4 |
|
25.7 |
|
1.7 |
Combined ratio |
|
91.9 % |
|
89.9 % |
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
Agency renewal written premiums |
|
$ 113 |
|
$ 106 |
|
7 |
Agency new business written premiums |
|
42 |
|
38 |
|
11 |
Other written premiums |
|
(9) |
|
(8) |
|
(13) |
Net written premiums |
|
$ 146 |
|
$ 136 |
|
7 |
|
|
|
|
|
|
|
Ratios as a percent of earned premiums: |
|
|
|
|
|
Pt. Change |
Current accident year before catastrophe losses |
|
65.7 % |
|
69.2 % |
|
(3.5) |
Current accident year catastrophe losses |
|
0.9 |
|
1.5 |
|
(0.6) |
Prior accident years before catastrophe losses |
|
(1.7) |
|
(6.2) |
|
4.5 |
Prior accident years catastrophe losses |
|
(0.4) |
|
(0.3) |
|
(0.1) |
Loss and loss expense ratio |
|
64.5 % |
|
64.2 % |
|
0.3 |
|
|
|
|
|
|
|
Current accident year combined ratio before catastrophe losses |
|
93.1 % |
|
94.9 % |
|
(1.8) |
|
|
|
|
|
|
|
Life Insurance Subsidiary Results |
|
|||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Term life insurance |
|
$ 57 |
|
$ 56 |
|
2 |
Whole life insurance |
|
13 |
|
12 |
|
8 |
Universal life and other |
|
9 |
|
9 |
|
0 |
Earned premiums |
|
79 |
|
77 |
|
3 |
Investment income, net of expenses |
|
47 |
|
45 |
|
4 |
Investment gains and losses, net |
|
(2) |
|
1 |
|
nm |
Fee revenues |
|
1 |
|
2 |
|
(50) |
Total revenues |
|
125 |
|
125 |
|
0 |
Contract holders' benefits incurred |
|
79 |
|
81 |
|
(2) |
Underwriting expenses incurred |
|
22 |
|
20 |
|
10 |
Total benefits and expenses |
|
101 |
|
101 |
|
0 |
Net income before income tax |
|
24 |
|
24 |
|
0 |
Income tax provision |
|
5 |
|
5 |
|
0 |
Net income of the life insurance subsidiary |
|
$ 19 |
|
$ 19 |
|
0 |
|
|
|
|
|
|
|
Investment and Balance Sheet Highlights |
|
|||||
Investments Results |
||||||
(Dollars in millions) |
Three months ended March 31, |
|||||
|
|
2024 |
|
2023 |
|
% Change |
Investment income, net of expenses |
|
$ 245 |
|
$ 210 |
|
17 |
Investment interest credited to contract holders |
|
(31) |
|
(30) |
|
(3) |
Investment gains and losses, net |
|
612 |
|
106 |
|
477 |
Investments profit |
|
$ 826 |
|
$ 286 |
|
189 |
|
|
|
|
|
|
|
Investment income: |
|
|
|
|
|
|
Interest |
|
$ 169 |
|
$ 140 |
|
21 |
Dividends |
|
72 |
|
66 |
|
9 |
Other |
|
7 |
|
7 |
|
0 |
Less investment expenses |
|
3 |
|
3 |
|
0 |
Investment income, pretax |
|
245 |
|
210 |
|
17 |
Less income taxes |
|
41 |
|
34 |
|
21 |
Total investment income, after-tax |
|
$ 204 |
|
$ 176 |
|
16 |
|
|
|
|
|
|
|
Investment returns: |
|
|
|
|
|
|
Average invested assets plus cash and cash equivalents |
|
$ 27,164 |
|
$ 24,649 |
|
|
Average yield pretax |
|
3.61 % |
|
3.41 % |
|
|
Average yield after-tax |
|
3.00 |
|
2.86 |
|
|
Effective tax rate |
|
16.7 |
|
16.1 |
|
|
Fixed-maturity returns: |
|
|
|
|
|
|
Average amortized cost |
|
$ 14,535 |
|
$ 13,171 |
|
|
Average yield pretax |
|
4.65 % |
|
4.25 % |
|
|
Average yield after-tax |
|
3.82 |
|
3.52 |
|
|
Effective tax rate |
|
17.9 |
|
17.3 |
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
|
Three months ended March 31, |
|
|
|
|
2024 |
|
2023 |
Investment gains and losses on equity securities sold, net |
|
$ (11) |
|
$ (1) |
Unrealized gains and losses on equity securities still held, net |
|
613 |
|
106 |
Investment gains and losses on fixed-maturity securities, net |
|
(10) |
|
- |
Other |
|
20 |
|
1 |
Subtotal - investment gains and losses reported in net income |
|
612 |
|
106 |
Change in unrealized investment gains and losses - fixed maturities |
|
(55) |
|
163 |
Total |
|
$ 557 |
|
$ 269 |
|
|
|
|
|
Balance Sheet Highlights |
|
|||
(Dollars in millions, except share data) |
At March 31, |
At December 31, |
||
|
|
2024 |
|
2023 |
Total investments |
|
$ 26,249 |
|
$ 25,357 |
Total assets |
|
33,727 |
|
32,769 |
Short-term debt |
|
25 |
|
25 |
Long-term debt |
|
790 |
|
790 |
Shareholders' equity |
|
12,654 |
|
12,098 |
Book value per share |
|
80.83 |
|
77.06 |
Debt-to-total-capital ratio |
|
6.1 % |
|
6.3 % |
|
|
|
|
|
For additional information or to register for our conference call webcast, please visit cinfin.com/investors.
About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.
Mailing Address: |
Street Address: |
P.O. Box 145496 |
6200 South Gilmore Road |
Cincinnati, Ohio 45250-5496 |
Fairfield, Ohio 45014-5141 |
Safe Harbor Statement
This is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2023 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.
Factors that could cause or contribute to such differences include, but are not limited to:
Further, our insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. We also are subject to public and regulatory initiatives that can affect the market value for our common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.
* * *
Cincinnati Financial Corporation Condensed Consolidated Balance Sheets and Statements of Income (unaudited) |
|
|||
(Dollars in millions) |
|
March 31, |
|
December 31, |
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
Investments |
|
$ 26,249 |
|
$ 25,357 |
Cash and cash equivalents |
|
619 |
|
907 |
Premiums receivable |
|
2,805 |
|
2,592 |
Reinsurance recoverable |
|
617 |
|
651 |
Deferred policy acquisition costs |
|
1,143 |
|
1,093 |
Other assets |
|
2,294 |
|
2,169 |
Total assets |
|
$ 33,727 |
|
$ 32,769 |
|
|
|
|
|
Liabilities |
|
|
|
|
Insurance reserves |
|
$ 12,259 |
|
$ 12,118 |
Unearned premiums |
|
4,398 |
|
4,119 |
Deferred income tax |
|
1,460 |
|
1,324 |
Long-term debt and lease obligations |
|
848 |
|
849 |
Other liabilities |
|
2,108 |
|
2,261 |
Total liabilities |
|
21,073 |
|
20,671 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Common stock and paid-in capital |
|
1,843 |
|
1,834 |
Retained earnings |
|
13,712 |
|
13,084 |
Accumulated other comprehensive loss |
|
(442) |
|
(435) |
Treasury stock |
|
(2,459) |
|
(2,385) |
Total shareholders' equity |
|
12,654 |
|
12,098 |
Total liabilities and shareholders' equity |
|
$ 33,727 |
|
$ 32,769 |
|
|
|
|
|
(Dollars in millions, except per share data) |
|
Three months ended March 31, |
||
|
|
2024 |
|
2023 |
Revenues |
|
|
|
|
Earned premiums |
|
$ 2,071 |
|
$ 1,918 |
Investment income, net of expenses |
|
245 |
|
210 |
Investment gains and losses, net |
|
612 |
|
106 |
Other revenues |
|
7 |
|
7 |
Total revenues |
|
2,935 |
|
2,241 |
|
|
|
|
|
Benefits and Expenses |
|
|
|
|
Insurance losses and contract holders' benefits |
|
1,349 |
|
1,398 |
Underwriting, acquisition and insurance expenses |
|
616 |
|
556 |
Interest expense |
|
13 |
|
14 |
Other operating expenses |
|
4 |
|
5 |
Total benefits and expenses |
|
1,982 |
|
1,973 |
|
|
|
|
|
Income Before Income Taxes |
|
953 |
|
268 |
|
|
|
|
|
Provision for Income Taxes |
|
198 |
|
43 |
|
|
|
|
|
Net Income |
|
$ 755 |
|
$ 225 |
|
|
|
|
|
Per Common Share: |
|
|
|
|
Net income-basic |
|
$ 4.82 |
|
$ 1.43 |
Net income-diluted |
|
4.78 |
|
1.42 |
|
|
|
|
|
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; additional prior-period reconciliations available at cinfin.com/investors.)
Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners'(NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
Management uses certain non-GAAP financial measures to evaluate its primary business areas - property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management's control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
Cincinnati Financial Corporation |
|
|||
Net Income Reconciliation |
||||
|
||||
(Dollars in millions, except per share data) |
Three months ended March 31, |
|||
|
|
2024 |
|
2023 |
Net income |
|
$ 755 |
|
$ 225 |
Less: |
|
|
|
|
Investment gains and losses, net |
|
612 |
|
106 |
Income tax on investment gains and losses |
|
(129) |
|
(22) |
Investment gains and losses, after-tax |
|
483 |
|
84 |
Non-GAAP operating income |
|
$ 272 |
|
$ 141 |
|
|
|
|
|
Diluted per share data: |
|
|
|
|
Net income |
|
$ 4.78 |
|
$ 1.42 |
Less: |
|
|
|
|
Investment gains and losses, net |
|
3.88 |
|
0.67 |
Income tax on investment gains and losses |
|
(0.82) |
|
(0.14) |
Investment gains and losses, after-tax |
|
3.06 |
|
0.53 |
Non-GAAP operating income |
|
$ 1.72 |
|
$ 0.89 |
|
|
|
|
|
|
||||
Life Insurance Reconciliation |
||||
|
||||
(Dollars in millions) |
Three months ended March 31, |
|||
|
|
2024 |
|
2023 |
Net income of the life insurance subsidiary |
|
$ 19 |
|
$ 19 |
Investment gains and losses, net |
|
(2) |
|
1 |
Income tax on investment gains and losses |
|
- |
|
- |
Non-GAAP operating income |
|
21 |
|
18 |
|
|
|
|
|
Investment income, net of expenses |
|
(47) |
|
(45) |
Investment income credited to contract holders |
|
31 |
|
30 |
Income tax excluding tax on investment gains and losses, net |
|
5 |
|
5 |
Life insurance segment profit |
|
$ 10 |
|
$ 8 |
|
|
|
|
|
Property Casualty Insurance Reconciliation |
|
|||||||||||||
(Dollars in millions) |
Three months ended March 31, 2024 |
|||||||||||||
|
Consolidated |
Commercial |
Personal |
E&S |
|
Other* |
||||||||
Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net written premiums |
|
$ 2,248 |
|
|
$ 1,223 |
|
|
$ 595 |
|
|
$ 146 |
|
|
$ 284 |
Unearned premiums change |
|
(256) |
|
|
(141) |
|
|
(7) |
|
|
(7) |
|
|
(101) |
Earned premiums |
|
$ 1,992 |
|
|
$ 1,082 |
|
|
$ 588 |
|
|
$ 139 |
|
|
$ 183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting profit |
|
$ 131 |
|
|
$ 39 |
|
|
$ 37 |
|
|
$ 12 |
|
|
$ 43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
Three months ended March 31, 2023 |
|||||||||||||
|
Consolidated |
Commercial |
Personal |
E&S |
Other* |
|||||||||
Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net written premiums |
|
$ 2,019 |
|
|
$ 1,141 |
|
|
$ 448 |
|
|
$ 136 |
|
|
$ 294 |
Unearned premiums change |
|
(178) |
|
|
(85) |
|
|
16 |
|
|
(9) |
|
|
(100) |
Earned premiums |
|
$ 1,841 |
|
|
$ 1,056 |
|
|
$ 464 |
|
|
$ 127 |
|
|
$ 194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting profit (loss) |
|
$ (10) |
|
|
$ (2) |
|
|
$ (57) |
|
|
$ 13 |
|
|
$ 36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. *Included in Other are the results of Cincinnati Re and Cincinnati Global. |
Cincinnati Financial Corporation
Other Measures
Value Creation Ratio Calculations |
|
||||
(Dollars are per share) |
Three months ended March 31, |
||||
|
|
2024 |
|
|
2023 |
Value creation ratio: |
|
|
|
|
|
End of period book value* |
|
$ 80.83 |
|
|
$ 68.33 |
Less beginning of period book value |
|
77.06 |
|
|
67.01 |
Change in book value |
|
3.77 |
|
|
1.32 |
Dividend declared to shareholders |
|
0.81 |
|
|
0.75 |
Total value creation |
|
$ 4.58 |
|
|
$ 2.07 |
|
|
|
|
|
|
Value creation ratio from change in book value** |
|
4.9 % |
|
|
2.0 % |
Value creation ratio from dividends declared to shareholders*** |
|
1.0 |
|
|
1.1 |
Value creation ratio |
|
5.9 % |
|
|
3.1 % |
|
|
|
|
|
|
* Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding |
|||||
** Change in book value divided by the beginning of period book value |
|||||
*** Dividend declared to shareholders divided by beginning of period book value |
View original content to download multimedia:https://www.prnewswire.com/news-releases/cincinnati-financial-reports-first-quarter-2024-results-302127733.html
SOURCE Cincinnati Financial Corporation
Investor Contact: Dennis E. McDaniel, 513-870-2768, [email protected], or Media Contact: Betsy E. Ertel, 513-603-5323, [email protected]