Cincinnati Financial Surpasses Expectations With Strong Q4 Earnings

Cincinnati Financial Corporation has reported impressive fourth-quarter earnings for 2024, showcasing a significant increase in operating income and total revenues. The company’s strong performance is attributed to solid underwriting practices and a rise in premiums, reflecting its robust market position.<\/p>

• Operating Income<\/strong>: $3.14 per share, exceeding estimates by 65.3%.<\/li>
• Total Revenues<\/strong>: $2.6 billion, a 14.7% year-over-year increase.<\/li>
• Underwriting Income<\/strong>: $352 million, up 40% from the previous year.<\/li>
• Combined Ratio<\/strong>: Improved to 84.7, indicating better underwriting profitability.<\/li>
• Dividend Increase<\/strong>: Quarterly cash dividend raised by 7% to 87 cents per share.<\/li><\/ul>

Cincinnati Financial reported an operating income of $3.14 per share for Q4 2024, which not only surpassed the Zacks Consensus Estimate but also marked a 38% increase compared to the same quarter last year. The total operating revenues reached $2.6 billion, reflecting a 14.7% growth year-over-year and beating the consensus mark by 1.1%.<\/p>

The strong quarterly results were driven by:<\/p>

• Higher earned premiums, which climbed 15% year-over-year to $2.3 billion.<\/li>
• A 17% increase in net investment income, totaling $280 million.<\/li>
• An improved combined ratio, which is a key indicator of underwriting profitability.<\/li><\/ul>

Cincinnati Financial’s operational metrics showed significant improvement:<\/p>

• Earned Premiums<\/strong>: Increased due to premium growth initiatives and price hikes.<\/li>
• Investment Income<\/strong>: Boosted by a 28% rise in interest income from fixed-maturity securities.<\/li>
• Total Benefits and Expenses<\/strong>: Rose 10.3% year-over-year to $2 billion, primarily due to higher insurance losses and operational expenses.<\/li><\/ul>

The company’s performance across various segments was noteworthy:<\/p>

1. Commercial Lines Insurance<\/strong>: Revenues of $1.2 billion, up 7% year-over-year.<\/li>
2. Personal Lines Insurance<\/strong>: Revenues surged 30% to $727 million.<\/li>
3. Excess and Surplus Lines Insurance<\/strong>: Revenues grew 13% to $169 million.<\/li>
4. Life Insurance<\/strong>: Revenues rose 9% to $132 million.<\/li><\/ol>

As of December 31, 2024, Cincinnati Financial reported total assets of $36.5 billion, an 11.4% increase from the previous year. The company maintained a stable long-term debt of $790 million, resulting in a debt-to-capital ratio of 5.5%, which improved from the end of 2023.<\/p>

The book value per share reached $89.11, up 16% year-over-year, supported by record net pretax investment income exceeding $1 billion for the year.<\/p>

In a positive move for shareholders, Cincinnati Financial’s board of directors announced a 7% increase in the regular quarterly cash dividend to 87 cents per share. This dividend will be payable on April 15, 2025, to shareholders of record as of March 24.<\/p>

Cincinnati Financial’s strong Q4 performance underscores its effective underwriting strategies and solid market position, setting a positive tone for the upcoming fiscal year.<\/p>

• Cincinnati Financial Q4 Earnings Top on Solid Underwriting<\/a>, Yahoo Finance.<\/li><\/ul>