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.
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).
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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.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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