CINCINNATI – Cincinnati Financial Corporation (NASDAQ reported third-quarter 2024 results that beat revenue expectations but missed earnings per share.
The property and casualty insurer posted non-GAAP operating income of $1.42 per share, missing analyst estimates of $1.46. However, revenue came in at $2.3 billion, beating the consensus forecast of $2.24 billion.
Cincinnati Financial saw strong premium growth in the quarter, with net written premiums increasing 17% to $2.29 billion. This was driven by a 30% increase in agency-written new business premiums to $406 million.
The company's combined ratio, a key measure of underwriting profitability, deteriorated to 97.4% from 94.4% in the prior-year quarter. This was largely due to higher catastrophe losses, which added 13.8 percentage points to the combined index compared to 9.4 points last year.
“We responded to 20 weather-related disasters across the United States in the third quarter, including Hurricane Helene, which devastated 11 states in late September,” said Stephen M. Spray, president and CEO.
Despite the higher catastrophe losses, Cincinnati Financial's book value per share rose 15% year to date to $88.32 as of September 30.
The company's investment income rose 15% to $258 million, helped by a 21% increase in bond interest income.
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