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Cincinnati Financial (CINF) Q2 Earnings Top Estimates, Up Y/Y
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Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2018 operating income of 81 cents per share, beating the Zacks Consensus Estimate of 54 cents by a whopping 50%. Also, the bottom line improved 26.6% year over year, mainly on higher revenues, favorable underwriting performance and solid segmental results.
Cincinnati Financial Corporation Price, Consensus and EPS Surprise
Including net realized investment gains of 51 cents per share, the company’s net income came in at $1.32, which skyrocketed 120% from the year-ago quarter’s level.
Operational Update
Total operating revenues in the quarter under review were $1.5 billion, up 4% year over year. This improvement was driven by 4.3% higher premiums earned and a 1.9% rise in investment income. Also, the top line beat the Zacks Consensus Estimate by 0.6%.
Total benefits and expenses of Cincinnati Financial increased 2.9% year over year to $1.3 billion, primarily due to higher insurance loss and contract holders’ benefits plus underwriting, acquisition as well as insurance expenses.
Combined ratio — a measure of underwriting profitability — improved 110 basis points (bps) year over year to 97.2%.
Cincinnati Financial had 1,735 agency relationships as of Jun 30, 2018 compared with 1,675 as of Jun 30, 2017.
Quarterly Segment Update
Commercial Lines Insurance: Total revenues of $812 million grew 1.9% year over year. This upside was primarily driven by higher premiums earned. The company delivered an underwriting profit of $47 million, which soared 95.8% from the year-ago quarter. Combined ratio also improved 290 bps year over year to 94.2%.
Personal Lines Insurance: Total revenues of $333 million rose 8.1% year over year owing to a substantial increase in premiums earned along with a slight improvement in fee revenues. The segment incurred an underwriting loss of $32 million, considerably wider than the year-ago loss of $24 million. Moreover, combined ratio deteriorated 170 bps year over year to 110.1%.
Excess and Surplus Lines Insurance: Total revenues of $58 million increased 9.4% year over year, aided by higher earned premiums. The segment’s underwriting profit of $13 million declined 31.6% year over year. Combined ratio deteriorated 1140 bps year over year to 77.6%.
Life Insurance: Total revenues of $103 million gained 4% year over year. Total benefits and expenses inched up 1.3% year over year to $81 million.
Financial Update
As of Jun 30, 2018, Cincinnati Financial had total assets worth $21.8 billion, down 0.4% from the level at 2017 end.
Cincinnati Financial’s debt-to-capital ratio was 9.7% as of Jun 30, 2018, reflecting a marginal deterioration from 9% at the end of 2017.
As of Jun 30, 2018, Cincinnati Financial’s book value per share was $48.68, down 3.2% from the tally on Dec 31, 2017.
Zacks Rank
Cincinnati Financial carries a Zacks Rank #4 (Sell).
Among other players from the insurance industry, which have already reported second-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) outpaced the respective Zacks Consensus Estimate while The Travelers Companies, Inc.’s (TRV - Free Report) metric missed the same.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Cincinnati Financial (CINF) Q2 Earnings Top Estimates, Up Y/Y
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2018 operating income of 81 cents per share, beating the Zacks Consensus Estimate of 54 cents by a whopping 50%. Also, the bottom line improved 26.6% year over year, mainly on higher revenues, favorable underwriting performance and solid segmental results.
Cincinnati Financial Corporation Price, Consensus and EPS Surprise
Cincinnati Financial Corporation Price, Consensus and EPS Surprise | Cincinnati Financial Corporation Quote
Including net realized investment gains of 51 cents per share, the company’s net income came in at $1.32, which skyrocketed 120% from the year-ago quarter’s level.
Operational Update
Total operating revenues in the quarter under review were $1.5 billion, up 4% year over year. This improvement was driven by 4.3% higher premiums earned and a 1.9% rise in investment income. Also, the top line beat the Zacks Consensus Estimate by 0.6%.
Total benefits and expenses of Cincinnati Financial increased 2.9% year over year to $1.3 billion, primarily due to higher insurance loss and contract holders’ benefits plus underwriting, acquisition as well as insurance expenses.
Combined ratio — a measure of underwriting profitability — improved 110 basis points (bps) year over year to 97.2%.
Cincinnati Financial had 1,735 agency relationships as of Jun 30, 2018 compared with 1,675 as of Jun 30, 2017.
Quarterly Segment Update
Commercial Lines Insurance: Total revenues of $812 million grew 1.9% year over year. This upside was primarily driven by higher premiums earned. The company delivered an underwriting profit of $47 million, which soared 95.8% from the year-ago quarter. Combined ratio also improved 290 bps year over year to 94.2%.
Personal Lines Insurance: Total revenues of $333 million rose 8.1% year over year owing to a substantial increase in premiums earned along with a slight improvement in fee revenues. The segment incurred an underwriting loss of $32 million, considerably wider than the year-ago loss of $24 million. Moreover, combined ratio deteriorated 170 bps year over year to 110.1%.
Excess and Surplus Lines Insurance: Total revenues of $58 million increased 9.4% year over year, aided by higher earned premiums. The segment’s underwriting profit of $13 million declined 31.6% year over year. Combined ratio deteriorated 1140 bps year over year to 77.6%.
Life Insurance: Total revenues of $103 million gained 4% year over year. Total benefits and expenses inched up 1.3% year over year to $81 million.
Financial Update
As of Jun 30, 2018, Cincinnati Financial had total assets worth $21.8 billion, down 0.4% from the level at 2017 end.
Cincinnati Financial’s debt-to-capital ratio was 9.7% as of Jun 30, 2018, reflecting a marginal deterioration from 9% at the end of 2017.
As of Jun 30, 2018, Cincinnati Financial’s book value per share was $48.68, down 3.2% from the tally on Dec 31, 2017.
Zacks Rank
Cincinnati Financial carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
Among other players from the insurance industry, which have already reported second-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) outpaced the respective Zacks Consensus Estimate while The Travelers Companies, Inc.’s (TRV - Free Report) metric missed the same.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>