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Cincinnati Financial (CINF) Reports Q3 Earnings: What Key Metrics Have to Say

For the quarter ended September 2023, Cincinnati Financial (CINF) reported revenue of $2.27 billion, up 8.9% over the same period last year. EPS came in at $1.66, compared to $0.73 in the year-ago quarter.

The reported revenue represents a surprise of +1.17% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $1.07, the EPS surprise was +55.14%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Cincinnati Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Commercial Lines Insurance - Combined ratio: 95.2% compared to the 95.2% average estimate based on four analysts.

  • Excess and surplus lines insurance - Combined ratio: 90.5% versus 90.9% estimated by four analysts on average.

  • Personal Lines Insurance - Combined ratio: 99.9% compared to the 102.5% average estimate based on four analysts.

  • Commercial Lines Insurance - Loss and loss expenses: 64% versus the four-analyst average estimate of 64.5%.

  • Revenue- Excess and surplus lines insurance- Earned premiums: $135 million versus $139.38 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8% change.

  • Total revenues- Property Casualty Insurance: $1.96 billion versus $1.96 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change.

  • Total revenues- Life Insurance Subsidiary: $125 million versus $101.76 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.8% change.

  • Total revenues- Commercial lines insurance: $1.06 billion versus the four-analyst average estimate of $1.09 billion. The reported number represents a year-over-year change of +3.3%.

  • Total revenues- Personal lines insurance: $528 million versus the four-analyst average estimate of $502.63 million. The reported number represents a year-over-year change of +22.2%.

  • Revenues- Commercial lines insurance- Fee revenues: $1 million versus $1 million estimated by four analysts on average.

  • Revenues- Property Casualty Insurance- Earned premiums: $1.96 billion versus the four-analyst average estimate of $1.96 billion. The reported number represents a year-over-year change of +8%.

  • Revenues- Personal Lines Insurance- Earned premiums: $527 million compared to the $501.88 million average estimate based on four analysts. The reported number represents a change of +22.3% year over year.

View all Key Company Metrics for Cincinnati Financial here>>>

Shares of Cincinnati Financial have returned -6% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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