Cincinnati Financial Corp.
) reported second quarter 2013 operating earnings of 61 cents per
share, significantly exceeding the Zacks Consensus Estimate of 32
cents per share. Earnings per share were 3.6 times higher than 17
cents reported in the year-ago quarter.
The earnings beat came on the back of increased underwriting
profits from each of the three property casualty segments.
Revenue for Cincinnati Financial was $1.1 billion, up 8% year
over year. The increase was driven by higher premiums earned (up
9% year over year).
Investment income of Cincinnati Financial decreased 1% year
over year from $131 million.
Total benefits and expenses for Cincinnati Financial in the
quarter decreased 3.5% year over year to $956 million.
Cincinnati Financial had 1437 agency relationships as of Jun
30, 2013, compared to 1408 agency relationships at year-end 2012.
During the second quarter 63 new agency appointments were made by
Quarterly Segment Update
Commercial Lines Insurance:
Net premiums written in the segment increased 8% year over year
to $678 million in the reported quarter. The improvement was
driven by premium growth strategies, higher average pricing and
increasing insured exposures.
Loss and loss expense ratio improved 820 basis points year
over year to 61.9% in the quarter. Underwriting profit of $34
million was in contrast with underwriting loss of $20 million in
the year-ago quarter.
Personal Lines Insurance
: Net premiums written in the segment increased 9% year over year
to $273 million, due to higher renewal written premiums that
reflect rate increases. Loss and loss expense ratio improved 2840
basis points year over year to 69.5%.
Excess and Surplus Lines Insurance
: Net premiums written increased 22% year over year to $33
million due to average renewal price increases. Loss and loss
expense ratio improved 1190 basis points year over year to
: Premiums earned in the segment decreased 14% year over year to
$44 million, led by a decrease in Universal Life Insurance partly
offset by an increase in premiums from Term Life Insurance
and other life insurance, annuity and disability income
Cincinnati Financial exited the quarter with cash and cash
equivalents of $382 million, down 22% from $487 million at Dec
As of Jun 30, 2013, Cincinnati Financial had assets worth $17
billion, up 3% from $16.5 billion as of Dec 31, 2012.
Long-term debt of Cincinnati Financial was in line with the
prior-year period. However, the debt to capital ratio improved 50
basis points to 13.6% from 14.1% at year end 2012.
As of Jun 30, 2013, book value per share of Cincinnati
Financial was $34.83, up 4% from Dec 31, 2012.
CINF carries Zacks Rank #4 (Sell).
Travelers Companies Inc.
) have reported second quarter earnings ahead of the Zacks
Consensus Estimate, like
State Auto Financial Corp.
) are scheduled to report their second quarter earnings
CINCINNATI FINL (CINF): Free Stock Analysis
PROASSURANCE CP (PRA): Free Stock Analysis
STATE AUTO FINL (STFC): Free Stock Analysis
TRAVELERS COS (TRV): Free Stock Analysis
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