Top-News
Cincinnati Financial Reports Fourth-Quarter and Full-Year 2024 Results
CINCINNATI, Feb. 10, 2025 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
- Fourth-quarter 2024 net income of $405 million, or $2.56 per share, compared with $1.183 billion, or $7.50 per share, in the fourth quarter of 2023, after recognizing a $107 million fourth-quarter 2024 after-tax decrease in the fair value of equity securities still held.
- Full-year 2024 net income of $2.292 billion, or $14.53 per share, compared with $1.843 billion, or $11.66 per share, in 2023.
- $138 million or 38% increase in fourth-quarter 2024 non-GAAP operating income* to $497 million, or $3.14 per share, compared with $359 million, or $2.28 per share, in the fourth quarter of last year.
- $245 million or 26% increase in full-year 2024 non-GAAP operating income to $1.197 billion, or $7.58 per share, up from $952 million, or $6.03 per share, with increases of $141 million in after-tax property casualty underwriting profit and $104 million in net investment income.
- $778 million decrease in fourth-quarter 2024 net income reflected a $916 million decrease in after-tax net investment gains that offset increases of $79 million in after-tax property casualty underwriting profit and $33 million in net investment income.
- $89.11 book value per share at December 31, 2024, up $12.05 since year-end 2023.
- 19.8% value creation ratio for full-year 2024, compared with 19.5% for 2023.
Financial Highlights
| (Dollars in millions except per share data) | Three months ended December 31, | Twelve months ended December 31, | ||||||||||
| | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change | |
| Revenue Data | | | | | | | | | | | | |
| Earned premiums | | $ 2,365 | | $ 2,064 | | 15 | | $ 8,889 | | $ 7,958 | | 12 |
| Investment income, net of expenses | | 280 | | 239 | | 17 | | 1,025 | | 894 | | 15 |
| Total revenues | | 2,538 | | 3,356 | | (24) | | 11,337 | | 10,013 | | 13 |
| Income Statement Data | | | | | | | | | | | | |
| Net income | | $ 405 | | $ 1,183 | | (66) | | $ 2,292 | | $ 1,843 | | 24 |
| Investment gains and losses, after-tax | | (92) | | 824 | | nm | | 1,095 | | 891 | | 23 |
| Non-GAAP operating income* | | $ 497 | | $ 359 | | 38 | | $ 1,197 | | $ 952 | | 26 |
| Per Share Data (diluted) | | | | | | | | | | | | |
| Net income | | $ 2.56 | | $ 7.50 | | (66) | | $ 14.53 | | $ 11.66 | | 25 |
| Investment gains and losses, after-tax | | (0.58) | | 5.22 | | nm | | 6.95 | | 5.63 | | 23 |
| Non-GAAP operating income* | | $ 3.14 | | $ 2.28 | | 38 | | $ 7.58 | | $ 6.03 | | 26 |
| | | | | | | | | | | | | |
| Book value | | | | | | | | $ 89.11 | | $ 77.06 | | 16 |
| Cash dividend declared | | $ 0.81 | | $ 0.75 | | 8 | | $ 3.24 | | $ 3.00 | | 8 |
| Diluted weighted average shares outstanding | | 158.1 | | 157.8 | | 0 | | 157.8 | | 158.1 | | 0 |
| | |
| * | The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures 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
- 84.7% fourth-quarter 2024 property casualty combined ratio, improved from 87.5% for the fourth quarter of 2023. Full-year 2024 property casualty combined ratio at 93.4%, with net written premiums up 15%.
- 17% growth in fourth-quarter 2024 net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
- $382 million fourth-quarter 2024 property casualty new business written premiums. Agencies appointed since the beginning of 2023 contributed $47 million or 12% of total fourth-quarter new business written premiums.
- $28 million of fourth-quarter 2024 life insurance subsidiary net income and 4% growth in fourth-quarter 2024 term life insurance earned premiums. Full-year 2024 non-GAAP operating income rose 18%.
Investment and Balance Sheet Highlights
- 17% or $41 million increase in fourth-quarter 2024 pretax investment income, including a 28% increase in bond interest income and a 4% decrease in stock portfolio dividends.
- 12% full-year increase in fair value of total investments at December 31, 2024, including a 17% increase for the bond portfolio and a 2% increase for the stock portfolio.
- $5.203 billion parent company cash and marketable securities at year-end 2024, up 7% from a year ago.
Achieving Planned Results
Stephen M. Spray, president and chief executive officer, commented: "As we previously disclosed, our first-quarter results will be impacted due to the California wildfires. I want to express my appreciation and gratitude to our claims associates who are working hard to deliver top-notch service to impacted policyholders. Through their efforts we've already made substantial payments to help those insured with Cincinnati Insurance start to piece their lives back together.
"Our 2024 year-end results show the importance and success of the initiatives we've undergone over the past decade to appropriately balance growth and profitability, ensuring we have the financial strength to answer the call of agents and insureds when a disaster strikes.
"Non-GAAP operating income finished the year strong, increasing 26% to $1.197 billion, compared with full-year 2023. While net income took a dip in the fourth quarter due to the challenged equity market, we still finished the year up 24% over full-year 2023, cresting the $2 billion mark.
"Property casualty underwriting achieved excellent fourth-quarter results. Underwriting profit for the quarter increased 40% over 2023's strong result, boosting full-year underwriting profit to $580 million. Our full-year 2024 combined ratio improved 1.5 points to 93.4%, benefiting from sound underwriting judgement and catastrophe losses staying in line with the prior year. Our 2024 core combined ratio on a current accident year before catastrophe loss basis was 1.9 points better than full-year 2023."
Focusing on Profitable Growth
"We believe our property casualty net written premium growth was healthy, accelerating in part due to our strategy of increasing agency appointments. Thanks to the hard work by our associates and the steady contributions of our independent agency partners, we increased net written premiums by 15% for the year to more than $9 billion. For our life insurance business, earned premiums rose 3%.
"We continue to refine pricing precision on accounts we underwrite. Our ability to price on a policy-by-policy basis will support our efforts to maintain appropriate pricing as we navigate a challenging market environment in 2025. We believe that appropriate pricing, combined with our hallmarks of strong agency relationships and fast, fair and empathetic claims service, will help our agents attract and retain high-quality business.
"Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM continue to perform as planned and were very profitable in 2024, remaining nimble and taking advantage of market opportunities as they arise."
Financial Strength for the Future
"At December 31, 2024, our book value per share climbed 16% from a year ago, to $89.11, bolstered by record net pretax investment income of more than $1 billion for the year.
"Consolidated cash and total investments reached more than $29 billion. Our ample capital allows us to execute on our long-term strategies and, at the same time continue to pay dividends to shareholders. Our value creation ratio for 2024, which considers the dividends we pay as well as growth in book value, was 19.8%, ahead of last year and our 10% to 13% average annual target for this measure."
| Insurance Operations Highlights | ||||||||||||
| | ||||||||||||
| Consolidated Property Casualty Insurance Results | ||||||||||||
| (Dollars in millions) | Three months ended December 31, | | Twelve months ended December 31, | |||||||||
| | | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change |
| Earned premiums | | $ 2,284 | | $ 1,984 | | 15 | | $ 8,568 | | $ 7,645 | | 12 |
| Fee revenues | | 3 | | 3 | | 0 | | 12 | | 11 | | 9 |
| Total revenues | | 2,287 | | 1,987 | | 15 | | 8,580 | | 7,656 | | 12 |
| | | | | | | | | | | | | |
| Loss and loss expenses | | 1,255 | | 1,118 | | 12 | | 5,436 | | 4,958 | | 10 |
| Underwriting expenses | | 680 | | 617 | | 10 | | 2,564 | | 2,297 | | 12 |
| Underwriting profit | | $ 352 | | $ 252 | | 40 | | $ 580 | | $ 401 | | 45 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Loss and loss expenses | | 55.0 % | | 56.4 % | | (1.4) | | 63.5 % | | 64.9 % | | (1.4) |
| Underwriting expenses | | 29.7 | | 31.1 | | (1.4) | | 29.9 | | 30.0 | | (0.1) |
| Combined ratio | | 84.7 % | | 87.5 % | | (2.8) | | 93.4 % | | 94.9 % | | (1.5) |
| | | | | | | | | | | | | |
| | | | | | | % Change | | | | | | % Change |
| Agency renewal written premiums | | $ 1,759 | | $ 1,534 | | 15 | | $ 7,080 | | $ 6,261 | | 13 |
| Agency new business written premiums | | 382 | | 310 | | 23 | | 1,541 | | 1,177 | | 31 |
| Other written premiums | | 102 | | 76 | | 34 | | 622 | | 608 | | 2 |
| Net written premiums | | $ 2,243 | | $ 1,920 | | 17 | | $ 9,243 | | $ 8,046 | | 15 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Current accident year before catastrophe losses | | 51.0 % | | 54.6 % | | (3.6) | | 56.6 % | | 58.4 % | | (1.8) |
| Current accident year catastrophe losses | | 5.0 | | 1.9 | | 3.1 | | 9.6 | | 9.3 | | 0.3 |
| Prior accident years before catastrophe losses | | (0.0) | | 0.5 | | (0.5) | | (1.6) | | (2.2) | | 0.6 |
| Prior accident years catastrophe losses | | (1.0) | | (0.6) | | (0.4) | | (1.1) | | (0.6) | | (0.5) |
| Loss and loss expense ratio | | 55.0 % | | 56.4 % | | (1.4) | | 63.5 % | | 64.9 % | | (1.4) |
| | | | | | | | | | | | | |
| Current accident year combined ratio before | | | | | | | | | | | | |
| catastrophe losses | | 80.7 % | | 85.7 % | | (5.0) | | 86.5 % | | 88.4 % | | (1.9) |
| | | | | | | | | | | | | |
- 17% and 15% growth in fourth-quarter and full-year 2024 property casualty net written premiums, reflecting price increases, premium growth initiatives and a higher level of insured exposures. The contribution to growth from Cincinnati Re and Cincinnati Global in total was 2 percentage points for fourth-quarter and 1 point for the full year.
- 23% and 31% increase in fourth-quarter and full-year 2024 new business premiums written by agencies, compared with a year ago. The full-year increase included a $116 million increase in standard market property casualty production from agencies appointed since the beginning of 2023.
- 304 new agency appointments in full-year 2024, including 102 that market only our personal lines products.
- 2.8 percentage-point fourth-quarter 2024 combined ratio improvement, compared with 2023, despite an increase of 2.7 points for losses from catastrophes.
- 1.5 percentage-point full-year 2024 combined ratio improvement, including a decrease of 0.2 points for losses from catastrophes.
- 1.0 and 2.7 percentage-point fourth-quarter and full-year 2024 benefit from favorable prior accident year reserve development of $25 million and $236 million, compared with 0.1 points or $2 million for fourth-quarter 2023 and 2.8 points or $215 million of favorable development for full-year 2023.
- 1.8 percentage-point improvement, to 56.6%, for the full-year 2024 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 1.4 points for the portion estimated as reserves for claims incurred but not reported (IBNR) and a decrease of 3.2 points for the case incurred portion.
- 0.1 percentage-point decrease in full-year 2024 underwriting expense ratio, compared with the same period of 2023, reflecting ongoing expense management efforts and higher earned premiums.
| Commercial Lines Insurance Results | ||||||||||||
| (Dollars in millions) | Three months ended December 31, | | Twelve months ended December 31, | |||||||||
| | | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change |
| Earned premiums | | $ 1,160 | | $ 1,080 | | 7 | | $ 4,486 | | $ 4,264 | | 5 |
| Fee revenues | | 1 | | 1 | | 0 | | 4 | | 4 | | 0 |
| Total revenues | | 1,161 | | 1,081 | | 7 | | 4,490 | | 4,268 | | 5 |
| | | | | | | | | | | | | |
| Loss and loss expenses | | 624 | | 651 | | (4) | | 2,795 | | 2,787 | | 0 |
| Underwriting expenses | | 356 | | 345 | | 3 | | 1,384 | | 1,313 | | 5 |
| Underwriting profit | | $ 181 | | $ 85 | | 113 | | $ 311 | | $ 168 | | 85 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Loss and loss expenses | | 53.8 % | | 60.3 % | | (6.5) | | 62.3 % | | 65.4 % | | (3.1) |
| Underwriting expenses | | 30.7 | | 31.9 | | (1.2) | | 30.9 | | 30.8 | | 0.1 |
| Combined ratio | | 84.5 % | | 92.2 % | | (7.7) | | 93.2 % | | 96.2 % | | (3.0) |
| | | | | | | | | | | | | |
| | | | | | | % Change | | | | | | % Change |
| Agency renewal written premiums | | $ 1,001 | | $ 936 | | 7 | | $ 4,087 | | $ 3,876 | | 5 |
| Agency new business written premiums | | 179 | | 153 | | 17 | | 741 | | 584 | | 27 |
| Other written premiums | | (37) | | (29) | | (28) | | (138) | | (124) | | (11) |
| Net written premiums | | $ 1,143 | | $ 1,060 | | 8 | | $ 4,690 | | $ 4,336 | | 8 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Current accident year before catastrophe losses | | 53.8 % | | 58.8 % | | (5.0) | | 59.3 % | | 60.8 % | | (1.5) |
| Current accident year catastrophe losses | | 1.8 | | 1.3 | | 0.5 | | 6.1 | | 7.4 | | (1.3) |
| Prior accident years before catastrophe losses | | (0.9) | | 1.0 | | (1.9) | | (2.4) | | (2.6) | | 0.2 |
| Prior accident years catastrophe losses | | (0.9) | | (0.8) | | (0.1) | | (0.7) | | (0.2) | | (0.5) |
| Loss and loss expense ratio | | 53.8 % | | 60.3 % | | (6.5) | | 62.3 % | | 65.4 % | | (3.1) |
| | | | | | | | | | | | | |
| Current accident year combined ratio before | | | | | | | | | | | | |
| catastrophe losses | | 84.5 % | | 90.7 % | | (6.2) | | 90.2 % | | 91.6 % | | (1.4) |
| | | | | | | | | | | | | |
- 8% growth in both fourth-quarter and full-year 2024 commercial lines net written premiums, primarily due to higher agency renewal written premiums. Fourth-quarter and full-year 2024 commercial lines average renewal pricing increased near the low end of the high-single-digit percent range, with the fourth-quarter increase slightly lower than third-quarter 2024.
- 17% and 27% increase in fourth-quarter and full-year 2024 new business written premiums, as we continue to carefully underwrite each policy in a highly competitive market.
- 7.7 percentage-point fourth-quarter 2024 combined ratio improvement, compared with 2023, despite an increase of 0.4 points for losses from catastrophes.
- 3.0 percentage-point full-year 2024 combined ratio improvement, including a decrease of 1.8 points for losses from catastrophes.
- 1.8 and 3.1 percentage-point fourth-quarter and full-year 2024 benefit from favorable prior accident year reserve development of $21 million and $138 million, compared with 0.2 points or $2 million of unfavorable development for fourth-quarter 2023 and 2.8 points or $123 million of favorable development for full-year 2023.
- 1.5 percentage-point improvement, to 59.3%, for the full-year 2024 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 2.2 points in the ratio for current accident year losses of $2 million or more per claim.
| Personal Lines Insurance Results | ||||||||||||
| (Dollars in millions) | Three months ended December 31, | | Twelve months ended December 31, | |||||||||
| | | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change |
| Earned premiums | | $ 726 | | $ 560 | | 30 | | $ 2,623 | | $ 2,044 | | 28 |
| Fee revenues | | 1 | | 1 | | 0 | | 5 | | 4 | | 25 |
| Total revenues | | 727 | | 561 | | 30 | | 2,628 | | 2,048 | | 28 |
| | | | | | | | | | | | | |
| Loss and loss expenses | | 374 | | 304 | | 23 | | 1,795 | | 1,442 | | 24 |
| Underwriting expenses | | 208 | | 169 | | 23 | | 762 | | 610 | | 25 |
| Underwriting profit (loss) | | $ 145 | | $ 88 | | 65 | | $ 71 | | $ (4) | | nm |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Loss and loss expenses | | 51.5 % | | 54.3 % | | (2.8) | | 68.5 % | | 70.5 % | | (2.0) |
| Underwriting expenses | | 28.7 | | 30.4 | | (1.7) | | 29.0 | | 29.9 | | (0.9) |
| Combined ratio | | 80.2 % | | 84.7 % | | (4.5) | | 97.5 % | | 100.4 % | | (2.9) |
| | | | | | | | | | | | | |
| | | | | | | % Change | | | | | | % Change |
| Agency renewal written premiums | | $ 625 | | $ 486 | | 29 | | $ 2,495 | | $ 1,957 | | 27 |
| Agency new business written premiums | | 154 | | 109 | | 41 | | 604 | | 416 | | 45 |
| Other written premiums | | (26) | | (16) | | (63) | | (100) | | (71) | | (41) |
| Net written premiums | | $ 753 | | $ 579 | | 30 | | $ 2,999 | | $ 2,302 | | 30 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Current accident year before catastrophe losses | | 49.7 % | | 51.5 % | | (1.8) | | 53.9 % | | 56.4 % | | (2.5) |
| Current accident year catastrophe losses | | 1.8 | | 4.6 | | (2.8) | | 15.6 | | 17.3 | | (1.7) |
| Prior accident years before catastrophe losses | | 1.6 | | (1.4) | | 3.0 | | 0.7 | | (1.0) | | 1.7 |
| Prior accident years catastrophe losses | | (1.6) | | (0.4) | | (1.2) | | (1.7) | | (2.2) | | 0.5 |
| Loss and loss expense ratio | | 51.5 % | | 54.3 % | | (2.8) | | 68.5 % | | 70.5 % | | (2.0) |
| | | | | | | | | | | | | |
| Current accident year combined ratio before | | | | | | | | | | | | |
| catastrophe losses | | 78.4 % | | 81.9 % | | (3.5) | | 82.9 % | | 86.3 % | | (3.4) |
| | | | | | | | | | | | | |
- 30% growth in both fourth-quarter and full-year 2024 personal lines net written premiums, including higher renewal written premiums that benefited from rate increases in the low-double-digit percent range in addition to new business premium growth. Cincinnati Private ClientSM full-year 2024 net written premiums from our agencies' high net worth clients grew 37%, to $1.719 billion.
- 41% and 45% increase in fourth-quarter and full-year 2024 new business premiums written by agencies, including higher amounts for both private client and our middle-market personal lines.
- 4.5 percentage-point fourth-quarter 2024 combined ratio improvement, compared with 2023, including a decrease of 4.0 points for losses from catastrophes.
- 2.9 percentage-point full-year 2024 combined ratio improvement, including a decrease of 1.2 points for losses from catastrophes.
- Less than $1 million of fourth-quarter 2024 unfavorable prior accident year reserve development, compared with $10 million of favorable development for fourth-quarter 2023.
- 1.0 percentage-point full-year 2024 benefit from favorable prior accident year reserve development of $26 million, compared to 3.2 points or $64 million for full-year 2023.
- 2.5 percentage-point improvement, to 53.9%, for the full-year 2024 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 0.7 points in the ratio for current accident year losses of $2 million or more per claim.
| Excess and Surplus Lines Insurance Results | ||||||||||||
| (Dollars in millions) | Three months ended December 31, | | Twelve months ended December 31, | |||||||||
| | | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change |
| Earned premiums | | $ 168 | | $ 148 | | 14 | | $ 615 | | $ 542 | | 13 |
| Fee revenues | | 1 | | 1 | | 0 | | 3 | | 3 | | 0 |
| Total revenues | | 169 | | 149 | | 13 | | 618 | | 545 | | 13 |
| | | | | | | | | | | | | |
| Loss and loss expenses | | 112 | | 93 | | 20 | | 411 | | 350 | | 17 |
| Underwriting expenses | | 45 | | 40 | | 13 | | 167 | | 141 | | 18 |
| Underwriting profit | | $ 12 | | $ 16 | | (25) | | $ 40 | | $ 54 | | (26) |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Loss and loss expenses | | 66.5 % | | 62.6 % | | 3.9 | | 66.9 % | | 64.5 % | | 2.4 |
| Underwriting expenses | | 26.6 | | 27.2 | | (0.6) | | 27.1 | | 26.1 | | 1.0 |
| Combined ratio | | 93.1 % | | 89.8 % | | 3.3 | | 94.0 % | | 90.6 % | | 3.4 |
| | | | | | | | | | | | | |
| | | | | | | % Change | | | | | | % Change |
| Agency renewal written premiums | | $ 133 | | $ 112 | | 19 | | $ 498 | | $ 428 | | 16 |
| Agency new business written premiums | | 49 | | 48 | | 2 | | 196 | | 177 | | 11 |
| Other written premiums | | (11) | | (10) | | (10) | | (40) | | (35) | | (14) |
| Net written premiums | | $ 171 | | $ 150 | | 14 | | $ 654 | | $ 570 | | 15 |
| | | | | | | | | | | | | |
| Ratios as a percent of earned premiums: | | | | | | Pt. Change | | | | | | Pt. Change |
| Current accident year before catastrophe losses | | 63.1 % | | 60.5 % | | 2.6 | | 64.2 % | | 65.9 % | | (1.7) |
| Current accident year catastrophe losses | | 1.0 | | 0.5 | | 0.5 | | 1.3 | | 0.7 | | 0.6 |
| Prior accident years before catastrophe losses | | 2.3 | | 1.4 | | 0.9 | | 1.4 | | (2.0) | | 3.4 |
| Prior accident years catastrophe losses | | 0.1 | | 0.2 | | (0.1) | | (0.0) | | (0.1) | | 0.1 |
| Loss and loss expense ratio | | 66.5 % | | 62.6 % | | 3.9 | | 66.9 % | | 64.5 % | | 2.4 |
| | | | | | | | | | | | | |
| Current accident year combined ratio before | | | | | | | | | | | | |
| catastrophe losses | | 89.7 % | | 87.7 % | | 2.0 | | 91.3 % | | 92.0 % | | (0.7) |
| | | | | | | | | | | | | |
- 14% and 15% growth in fourth-quarter and full-year 2024 excess and surplus lines net written premiums, including fourth-quarter 2024 renewal price increases averaging in the high-single-digit percent range.
- 2% and 11% increase in fourth-quarter and full-year 2024 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
- 3.3 percentage-point fourth-quarter 2024 combined ratio increase, primarily due to an increase of 2.6 points from current accident year loss and loss expenses before catastrophes.
- 3.4 percentage-point full-year 2024 combined ratio increase, primarily due to an increase of 3.4 points from prior accident year loss and loss expenses before catastrophes.
- 2.4 percentage-point fourth-quarter 2024 unfavorable prior accident year reserve development of $3 million, compared with 1.6 points or $3 million for fourth-quarter 2023.
- 1.4 percentage-point full-year 2024 unfavorable prior accident year reserve development of $8 million, compared with favorable development of 2.1 points or $11 million for full-year 2023.
- 1.7 percentage-point improvement, to 64.2%, for the full-year 2024 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 0.7 points in the ratio for current accident year losses of $2 million or more per claim.
| Life Insurance Subsidiary Results | ||||||||||||
| (Dollars in millions) | Three months ended December 31, | | Twelve months ended December 31, | |||||||||
| | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change | |
| Term life insurance | | $ 59 | | $ 57 | | 4 | | $ 233 | | $ 227 | | 3 |
| Whole life insurance | | 13 | | 13 | | 0 | | 52 | | 50 | | 4 |
| Universal life and other | | 9 | | 10 | | (10) | | 36 | | 36 | | 0 |
| Earned premiums | | 81 | | 80 | | 1 | | 321 | | 313 | | 3 |
| Investment income, net of expenses | | 48 | | 47 | | 2 | | 190 | | 184 | | 3 |
| Investment gains and losses, net | | 2 | | (8) | | nm | | (7) | | (9) | | 22 |
| Fee revenues | | 1 | | 2 | | (50) | | 5 | | 10 | | (50) |
| Total revenues | | 132 | | 121 | | 9 | | 509 | | 498 | | 2 |
| Contract holders' benefits incurred | | 75 | | 86 | | (13) | | 301 | | 316 | | (5) |
| Underwriting expenses incurred | | 23 | | 23 | | 0 | | 93 | | 87 | | 7 |
| Total benefits and expenses | | 98 | | 109 | | (10) | | 394 | | 403 | | (2) |
| Net income before income tax | | 34 | | 12 | | 183 | | 115 | | 95 | | 21 |
| Income tax | | 6 | | 2 | | 200 | | 24 | | 20 | | 20 |
| Net income of the life insurance subsidiary | | $ 28 | | $ 10 | | 180 | | $ 91 | | $ 75 | | 21 |
| | | | | | | | | | | | | |
- $8 million or 3% increase in full-year 2024 earned premiums, including a 3% increase for term life insurance, our largest life insurance product line.
- $16 million or 21% increase in full-year 2024 life insurance subsidiary net income, primarily due to more favorable impacts from the unlocking of interest rate and other actuarial adjustments and more favorable mortality experience.
- $183 million or 16% full-year 2024 increase to $1.307 billion in GAAP shareholders' equity for The Cincinnati Life Insurance Company, primarily from net income and the impact of an increase in market value discount rates on life policy and investment contract reserves.
| Investment and Balance Sheet Highlights | ||||||||||||
| | ||||||||||||
| Investments Results | ||||||||||||
| (Dollars in millions) | | Three months ended December 31, | | Twelve months ended December 31, | ||||||||
| | 2024 | | 2023 | | % Change | | 2024 | | 2023 | | % Change | |
| Investment income, net of expenses | | $ 280 | | $ 239 | | 17 | | $ 1,025 | | $ 894 | | 15 |
| Investment interest credited to contract holders | | (31) | | (30) | | (3) | | (125) | | (121) | | (3) |
| Investment gains and losses, net | | (116) | | 1,043 | | nm | | 1,391 | | 1,127 | | 23 |
| Investment profit (loss) | | $ 133 | | $ 1,252 | | (89) | | $ 2,291 | | $ 1,900 | | 21 |
| | | | | | | | | | | | | |
| Investment income: | | | | | | | | | | | | |
| Interest | | $ 204 | | $ 159 | | 28 | | $ 733 | | $ 600 | | 22 |
| Dividends | | 74 | | 77 | | (4) | | 283 | | 282 | | 0 |
| Other | | 7 | | 7 | | 0 | | 25 | | 25 | | 0 |
| Less investment expenses | | 5 | | 4 | | 25 | | 16 | | 13 | | 23 |
| Investment income, pretax | | 280 | | 239 | | 17 | | 1,025 | | 894 | | 15 |
| Less income taxes | | 47 | | 39 | | 21 | | 172 | | 145 | | 19 |
| Total investment income, after-tax | | $ 233 | | $ 200 | | 17 | | $ 853 | | $ 749 | | 14 |
| | | | | | | | | | | | | |
| Investment returns: | | | | | | | | | | | | |
| Average invested assets plus cash and cash equivalents | | $ 29,987 | | $ 26,174 | | | | $ 28,374 | | $ 25,685 | | |
| Average yield pretax | | 3.73 % | | 3.65 % | | | | 3.61 % | | 3.48 % | | |
| Average yield after-tax | | 3.11 | | 3.06 | | | | 3.01 | | 2.92 | | |
| Effective tax rate | | 17.0 | | 16.3 | | | | 16.8 | | 16.2 | | |
| Fixed-maturity returns: | | | | | | | | | | | | |
| Average amortized cost | | $ 16,554 | | $ 14,206 | | | | $ 15,697 | | $ 13,670 | | |
| Average yield pretax | | 4.93 % | | 4.48 % | | | | 4.67 % | | 4.39 % | | |
| Average yield after-tax | | 4.03 | | 3.68 | | | | 3.83 | | 3.62 | | |
| Effective tax rate | | 18.3 | | 17.7 | | | | 18.0 | | 17.5 | | |
| | | | | | | | | | | | | |
- $41 million or 17% rise in fourth-quarter 2024 pretax investment income, including a 28% increase in interest income from fixed-maturity securities and a 4% decrease in equity portfolio dividends.
- $466 million fourth-quarter decrease and $1.408 billion full-year 2024 increase in pretax total investment gains, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio.
| (Dollars in millions) | | Three months ended | | Twelve months ended | ||||
| | 2024 | | 2023 | | 2024 | | 2023 | |
| Investment gains and losses on equity securities sold, net | | $ — | | $ 7 | | $ 181 | | $ (17) |
| Unrealized gains and losses on equity securities still held, net | | (136) | | 1,043 | | 1,275 | | 1,168 |
| Investment gains and losses on fixed-maturity securities, net | | (2) | | (16) | | (116) | | (22) |
| Other | | 22 | | 9 | | 51 | | (2) |
| Subtotal - investment gains and losses reported in net income | | (116) | | 1,043 | | 1,391 | | 1,127 |
| Change in unrealized investment gains and losses - fixed maturities | | (350) | | 637 | | 17 | | 277 |
| Total | | $ (466) | | $ 1,680 | | $ 1,408 Für dich aus unserer Redaktion zusammengestelltHinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Weitere Artikel des AutorsThemen im Trend | ||