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What's in Store for Cincinnati Financial (CINF) in Q1 Earnings?
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Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report first-quarter 2022 earnings on Apr 28, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 38.48%.
Factors at Note
In the first quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, price increases and a higher level of insured exposures. Contributions from Cincinnati Re are likely to have added to the upside.
Cincinnati Re’s premiums are likely to have gained from improved conditions in the reinsurance market.
Net investment income in the to-be-reported quarter is likely to have benefited from strong cash flow from operating activities and growth in equity portfolio dividends and interest income.
The Zacks Consensus Estimate for investment income, net of expenses is pegged at $180 million, indicating an increase of 3.4% from the year-ago reported figure.
The Zacks Consensus Estimate for first-quarter revenues stands at $1.74 billion, suggesting an increase of 1.01% from the prior-year quarter.
The insurer’s first-quarter underwriting profit and combined ratio are likely to have benefited from lower losses from natural catastrophe events and benefit from net favorable reserve development on prior accident years before catastrophe losses. Higher pricing and continued initiatives to improve pricing precision and loss experience related to claims and loss control practices are also likely to have boosted underwriting profit.
The Zacks Consensus Estimate for combined ratio at the Property and Casualty Insurance segment is pegged at 90, indicating an improvement from the year-ago reported figure of 91.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders’ benefits and higher underwriting, acquisition and insurance expenses.
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.48, indicating an increase of 8% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Cincinnati Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cincinnati Financial Corporation Price and EPS Surprise
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +4.77% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four quarters of 2021.
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What's in Store for Cincinnati Financial (CINF) in Q1 Earnings?
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report first-quarter 2022 earnings on Apr 28, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 38.48%.
Factors at Note
In the first quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, price increases and a higher level of insured exposures. Contributions from Cincinnati Re are likely to have added to the upside.
Cincinnati Re’s premiums are likely to have gained from improved conditions in the reinsurance market.
Net investment income in the to-be-reported quarter is likely to have benefited from strong cash flow from operating activities and growth in equity portfolio dividends and interest income.
The Zacks Consensus Estimate for investment income, net of expenses is pegged at $180 million, indicating an increase of 3.4% from the year-ago reported figure.
The Zacks Consensus Estimate for first-quarter revenues stands at $1.74 billion, suggesting an increase of 1.01% from the prior-year quarter.
The insurer’s first-quarter underwriting profit and combined ratio are likely to have benefited from lower losses from natural catastrophe events and benefit from net favorable reserve development on prior accident years before catastrophe losses. Higher pricing and continued initiatives to improve pricing precision and loss experience related to claims and loss control practices are also likely to have boosted underwriting profit.
The Zacks Consensus Estimate for combined ratio at the Property and Casualty Insurance segment is pegged at 90, indicating an improvement from the year-ago reported figure of 91.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders’ benefits and higher underwriting, acquisition and insurance expenses.
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.48, indicating an increase of 8% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Cincinnati Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cincinnati Financial Corporation Price and EPS Surprise
Cincinnati Financial Corporation price-eps-surprise | Cincinnati Financial Corporation Quote
Zacks Rank: Cincinnati Financial carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +4.77% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.