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Cincinnati Financial Hits New 52-Week High on Strong Q2

On Aug 11, 2015, shares of Cincinnati Financial Corp.CINF hit a new 52-week high of $56.03 on solid second-quarter results. With about 0.6 million shares exchanging hands in the last trading session, the stock finally closed at $55.96 per share gaining 0.2%. Year to date, the stock has returned 7.96%, above the 6.34% returned by the Nasdaq.

Cincinnati Financial delivered operating earnings of 83 cents per share in the second quarter that breezed past the Zacks Consensus Estimate of 38 cents and surged 80.4% year over year. The stellar performance came on the back of solid underwriting results in the reported quarter.

Driven by higher premiums earned and increased investment income, the company's top line improved year over year. The higher revenues were also supported by excellent results from the four segments of Cincinnati Financial.

Total benefits and expenses of Cincinnati Financial decreased due to lower insurance losses and policyholder benefits. Combined ratio of the company also improved on the back of lower weather-related catastrophe losses, pricing precision and segmentation.

With respect to its performance, this Zacks Rank #3 (Hold) property and casualty insurer delivered positive earnings surprises in three of last four quarters with an average beat of 39.88%.

The company's low leverage, ample capital, steady cash flow generation, favorable reserve release, share repurchases and consistent dividend hikes should drive growth, going forward.

An impressive second-quarter performance drove the Zacks Consensus Estimates for 2015 higher by 17% to $2.75 in the last 30 days.

Stocks to Consider

Some better-ranked players from the property and casualty insurance space are First American Financial Corporation FAF , NMI Holdings, Inc. NMIH and Selective Insurance Group Inc. SIGI . All these stocks sport a Zacks Rank #1 (Strong Buy).

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CINCINNATI FINL (CINF): Free Stock Analysis Report

FIRST AMER FINL (FAF): Free Stock Analysis Report

SELECT INS GRP (SIGI): Free Stock Analysis Report

NMI HOLDINGS-A (NMIH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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