Cincinnati Financial Corp (CINF) Reports Q3 2023 Earnings
Third-quarter 2023 net loss of $99 million, a significant improvement from a net loss of $416 million in the third quarter of 2022.
Non-GAAP operating income increased by 125% to $261 million in Q3 2023, compared to $116 million in the same period last year.
Book value per share rose to $67.72 at the end of September 2023, up $0.51 since year-end.
Property casualty combined ratio improved to 94.4% in Q3 2023, from 103.9% in Q3 2022.
Released on October 26, 2023, Cincinnati Financial Corp (NASDAQ:CINF) reported a net loss of $99 million for the third quarter of 2023, a significant improvement from a net loss of $416 million in the same period last year. The company also reported a 125% increase in non-GAAP operating income to $261 million, compared to $116 million in Q3 2022.
Financial Performance
The company's total revenues for Q3 2023 stood at $1.811 billion, a 28% increase from $1.410 billion in Q3 2022. The increase in revenue was driven by an 8% increase in earned premiums and a 17% increase in net investment income. The company's book value per share also increased by $0.51 to $67.72 at the end of September 2023.
Insurance Operations Highlights
The company reported a property casualty combined ratio of 94.4% for Q3 2023, an improvement from 103.9% in Q3 2022. Net written premiums grew by 12%, and new business written premiums increased by 19% to $313 million. The life insurance subsidiary's net income increased by $2 million from Q3 2022, with a 2% growth in term life insurance earned premiums.
Investment and Balance Sheet Highlights
Third-quarter 2023 saw a 17% increase in pretax investment income, including a 19% increase in bond interest income and a 5% increase in stock portfolio dividends. The fair value of total investments decreased by 2% in the three months to September 30, 2023. The parent company's cash and marketable securities stood at $4.512 billion at the end of September 2023, up 8% from year-end 2022.
Executive Commentary
Steven J. Johnston, chairman and chief executive officer, commented:
Non-GAAP operating income for the third quarter was $261 million, up significantly compared to last years third-quarter, driven by underwriting profits as well as pretax investment income that increased 17% for the quarter."
He also expressed confidence in the company's ongoing ability to produce value for shareholders.
Looking Ahead
Despite the challenges in the market, Cincinnati Financial Corp (NASDAQ:CINF) continues to see positive momentum in its financial performance. The company is optimistic about its growth opportunities as it continues to appoint new agencies and enter new states. The company plans to open Nevada for commercial lines business in the fourth quarter.
Explore the complete 8-K earnings release (here) from Cincinnati Financial Corp for further details.
This article first appeared on GuruFocus.
