Cincinnati Financial Reports First-Quarter 2023 Results

CINCINNATI, April 27, 2023

• First-quarter 2023 net income of $225 million, or $1.42 per share, compared with a net loss of $266 million, or $1.66 per share, in the first quarter of 2022, after recognizing an $84 million first-quarter 2023 after-tax increase in the fair value of equity securities still held.
• $119 million or 46% decrease in non-GAAP operating income* to $141 million, or $0.89 per share, compared with $260 million, or $1.62 per share, in the first quarter of last year.
• $491 million increase in first-quarter 2023 net income, compared with first-quarter 2022, reflecting the after-tax net effect of a $610 million increase in net investment gains and a $138 million decrease in after-tax property casualty underwriting income.
• $68.33 book value per share at March 31, 2023, up $1.12 since year-end.
• 3.1% value creation ratio for the first three months of 2023, compared with negative 6.9% for the same period of 2022.
• $7 million difference in adjusted first-quarter 2022 net loss compared with originally reported $273 million, due to adoption of an accounting standards update for long-duration contracts.

    Financial Highlights

(Dollars in millions, except per share data)	Three months ended March 31,
		2023			2022			% Change ARIVA.DE Börsen-Geflüster Kurse Cincinnati Financial 120,83 $ -0,11%
Revenue Data
Earned premiums		$	1,918		$	1,693		13
Investment income, net of expenses			210			185		14
Total revenues			2,241			1,218		84
Income Statement Data
Net income (loss)		$	225		$	(266)		nm
Investment gains and losses, after-tax			84			(526)		nm
Non-GAAP operating income*		$	141		$	260		(46)
Per Share Data (diluted)
Net income (loss)		$	1.42		$	(1.66)		nm
Investment gains and losses, after-tax			0.53			(3.28)		nm
Non-GAAP operating income*		$	0.89		$	1.62		(45)
Book value		$	68.33		$	74.31		(8)
Cash dividend declared		$	0.75		$	0.69		9
Diluted weighted average shares outstanding			158.5			160.4		(1)
*      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

• 100.7% first-quarter 2023 property casualty combined ratio, up from 89.9% for the first quarter of 2022.
• 6% growth in first-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
• $251 million first-quarter 2023 property casualty new business written premiums, up 3%. Agencies appointed since the beginning of 2022 contributed $13 million or 5% of total new business written premiums.
• $19 million first-quarter 2023 life insurance subsidiary net income, up $2 million from the first quarter of 2022, and 4% growth in first-quarter 2023 term life insurance earned premiums.

Investment and Balance Sheet Highlights

• 14% or $25 million increase in first-quarter 2023 pretax investment income, including a 14% increase for bond interest income and a 2% increase for stock portfolio dividends.
• Three-month increase of 3% in fair value of total investments at March 31, 2023, including a 5% increase for the bond portfolio and a 1% increase for the stock portfolio.
• $4.321 billion parent company cash and marketable securities at March 31, 2023, up 3% from year-end 2022.

Investment Income Leads Profitability
Steven J. Johnston, chairman and chief executive officer, commented: "Rising income in our investment portfolio offset a small first-quarter underwriting loss as we helped policyholders recover from widespread spring storms. Pretax investment income rose 14% driven primarily by higher interest income from our bond portfolio. Consolidated operating income was $141 million or $0.89 per share compared with $260 million or $1.62 per share in last year's first quarter.

"Turning to our insurance operations, our first-quarter 2023 combined ratio of 100.7% included 12.8 percentage points related to natural catastrophe losses, more than double our five-year historical first-quarter average.

"The increase in weather-related catastrophes masked the steady improvements we are making to our underlying business. Before catastrophe loss effects, our property casualty combined ratio improved by 0.2 points to 87.9% compared with last year's first quarter. The current accident year combined ratio before catastrophe loss effects also improved, lowering 0.1 points to 90.1% compared with full-year 2022.

"We continued to build on our record of 34 consecutive years of overall favorable reserve development with first-quarter net favorable reserve development on prior accident years up 0.7 points compared with first-quarter 2022."

Maintaining Underwriting Discipline
"We're pleased with the premium increases reported by each of our property casualty segments. Consolidated property casualty first-quarter net written premiums grew 6%, including higher average pricing than the fourth quarter of 2022. Commercial lines pricing rose on average at percentages near the high end of the mid-single-digit range. Excess and surplus lines pricing rose on average at a high-single-digit percentage rate, while personal lines improved to average mid-single-digit percentage rate increases. Ongoing efforts to segment policies should also help improve profitability, as we seek more adequate pricing on individual policies based on their specific characteristics. 

"The main driver for our growth continues to come from the excellent relationships we develop and nurture with our agencies. To keep the momentum going, we continue to look for opportunities to appoint new agents while still delivering the superior service that our agents value. So far this year, we've appointed 66 agencies that sell most or all of our property casualty products.

"Our diversified product portfolio also supports our ability to grow profitably. Combined, Cincinnati Global Underwriting Ltd.^SM and Cincinnati Re^® contributed $294 million to net written premiums and $36 million to our first-quarter underwriting profit. The Cincinnati Life Insurance Company also had a strong first-quarter, contributing $19 million of net income."

Book Value Rises
"Book value increased $1.12 since year-end 2022 to $68.33, and consolidated cash and total investments topped $24 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 3.1% for the first quarter. Our associates remain committed to continual improvement, 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,
	2023			2022			% Change
Earned premiums	$	1,841		$	1,618		14 Werbung Mehr Nachrichten zur Cincinnati Financial Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: 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. Andere Nutzer interessierten sich auch für folgende News 23.04.24 - PR Newswire BlackRock Throgmorton Trust Plc - Transaction in Own Shares 23.04.24 - PR Newswire Ashtead Group Plc - Transaction in Own Shares 23.04.24 - PR Newswire Rightmove Plc - Transaction in Own Shares Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59