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Cincinnati Financial Takes Steps to Grow Its Biggest Unit
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In an effort to expand and drive greater returns from its Commercial lines business, Cincinnati Financial Corp. (CINF - Free Report) has announced personnel changes at the unit.
Per the change, Stephen Fray – currently the senior vice president – will replace Charles (Bud) Stoneburner II.
Stoneburner is the acting senior vice president in charge of the Commercial Lines insurance segment of Cincinnati Financial’s main subsidiary, Cincinnati Insurance Co.
The change in leadership marks the completion of the company’s transition plan announced in Nov 2015.
These changes reflect management’s focus on expanding its Commercial Line insurance segment, which is one of the most profitable units and generates the major portion of the company’s revenues.
In the first half of 2016, the company’s Commercial Lines business produced $1.5 billion in revenues, which constituted more than half of Cincinnati Financial’s total revenue and about triple of the next-biggest category.
Historically, the Commercial Lines segment of the company has been displaying stellar top-line performance, with a three-year CAGR (2012–2015) of 29.2%. This improvement came on the back of several growth initiatives as well as a gradual increase in insurance rates. Further, the company has implemented the use of predictive analytics to boost its pricing precision, while leveraging local relationships with its agents. The gradual improvement in pricing has driven growth and the company anticipates a moderate increase in its top line in the future, as stiff competition will partially offset moderate price increases.
The P&C insurer’s commercial lines segment is not only thriving, but is also highly profitable. The unit generated $76 million in underwriting profit during the first half of the year. In the past, too, underwriting profit increased at a three-year CAGR (2012–2015) of 28.7%, thereby reflecting the company’s profitability.
Effective Jan 1, 2016, Stephen Spray transitioned to the company’s commercial insurance operations. This change established the leadership perpetuation plan for the segment.
Currently, Cincinnati Financial holds a Zacks Rank #2 (Buy). Investors interested in other stocks from the same space can consider Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corp. (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Cincinnati Financial Takes Steps to Grow Its Biggest Unit
In an effort to expand and drive greater returns from its Commercial lines business, Cincinnati Financial Corp. (CINF - Free Report) has announced personnel changes at the unit.
Per the change, Stephen Fray – currently the senior vice president – will replace Charles (Bud) Stoneburner II.
Stoneburner is the acting senior vice president in charge of the Commercial Lines insurance segment of Cincinnati Financial’s main subsidiary, Cincinnati Insurance Co.
The change in leadership marks the completion of the company’s transition plan announced in Nov 2015.
These changes reflect management’s focus on expanding its Commercial Line insurance segment, which is one of the most profitable units and generates the major portion of the company’s revenues.
In the first half of 2016, the company’s Commercial Lines business produced $1.5 billion in revenues, which constituted more than half of Cincinnati Financial’s total revenue and about triple of the next-biggest category.
Historically, the Commercial Lines segment of the company has been displaying stellar top-line performance, with a three-year CAGR (2012–2015) of 29.2%. This improvement came on the back of several growth initiatives as well as a gradual increase in insurance rates. Further, the company has implemented the use of predictive analytics to boost its pricing precision, while leveraging local relationships with its agents. The gradual improvement in pricing has driven growth and the company anticipates a moderate increase in its top line in the future, as stiff competition will partially offset moderate price increases.
The P&C insurer’s commercial lines segment is not only thriving, but is also highly profitable. The unit generated $76 million in underwriting profit during the first half of the year. In the past, too, underwriting profit increased at a three-year CAGR (2012–2015) of 28.7%, thereby reflecting the company’s profitability.
Effective Jan 1, 2016, Stephen Spray transitioned to the company’s commercial insurance operations. This change established the leadership perpetuation plan for the segment.
CINCINNATI FINL Price
CINCINNATI FINL Price | CINCINNATI FINL Quote
Zacks Rank and Stocks to Consider
Currently, Cincinnati Financial holds a Zacks Rank #2 (Buy). Investors interested in other stocks from the same space can consider Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corp. (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>