In This Article:
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Net Loss: $90 million for the first quarter of 2025.
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Non-GAAP Operating Loss: $37 million, a swing of $309 million from the previous year.
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Catastrophe Losses: $356 million increase in after-tax catastrophe losses.
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Property Casualty Combined Ratio: 113.3%, 19.7 percentage points higher than the previous year.
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Accident Year Combined Ratio (before catastrophe losses): 90.5%, improved by 0.6 percentage points compared to the previous year.
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Reinsurance Recovery: $429 million estimated recovery from primary property catastrophe reinsurance treaty.
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Net Written Premiums Growth: 11% for the quarter.
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Commercial Lines Combined Ratio: 91.9%, improved by 4.6 percentage points.
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Personal Lines Combined Ratio: 151.3%, 57.4 percentage points higher than the previous year.
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Excess and Surplus Lines Combined Ratio: 88.3%, improved by 3.6 percentage points.
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Investment Income Growth: 14% increase compared to the first quarter of 2024.
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Bond Interest Income Growth: 24% increase.
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Cash Flow from Operating Activities: $310 million for the first three months of 2025.
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Dividends Paid: $125 million in the first quarter of 2025.
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Share Repurchase: 300,000 shares at an average price of $139.96 per share.
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Book Value per Share: $87.78 at quarter-end.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cincinnati Financial Corp (NASDAQ:CINF) reported strong growth in investment income, up 14% compared to the first quarter of 2024.
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The commercial lines insurance segment produced a superb combined ratio of 91.9%, showing steady improvement over the past three years.
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Excess and surplus lines had an outstanding quarter with a combined ratio below 90%, indicating strong underwriting profitability.
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Consolidated property casualty net written premiums grew 11% for the quarter, with 14% growth in agency renewal premiums.
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Cincinnati Financial Corp (NASDAQ:CINF) maintained a strong financial position with a debt to total capital ratio under 10% and a quarter-end book value of $87.78 per share.
Negative Points
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Cincinnati Financial Corp (NASDAQ:CINF) reported a net loss of $90 million for the first quarter of 2025, driven by a $356 million increase in after-tax catastrophe losses.
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The property casualty combined ratio increased by 19.7 percentage points compared to the first quarter of last year, primarily due to higher catastrophe losses.
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Personal lines experienced a significant increase in the combined ratio to 151.3%, largely due to higher catastrophe losses and reinstatement premiums.
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Cincinnati Re reported an underwriting loss with a combined ratio of 137.4%, impacted by 63.9 percentage points from catastrophe losses.
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Cincinnati Global's net written premiums decreased by 9% from a year ago, reflecting underwriting discipline in a softening market.