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What Awaits Cincinnati Financial (CINF) This Earnings Season?
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Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report second-quarter 2022 earnings on Jul 27, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 32.55%.
Factors at Note
In the second quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, higher new business written premiums and higher standard lines new business. Contributions from Cincinnati Re are likely to have added to the upside.
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 $182 million, indicating an increase of 4% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues stands at $1.93 billion, suggesting an increase of 64.4% from the prior-year quarter.
Favorable decrease in losses from catastrophes, price increases, ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices are likely to have boosted underwriting profit. However, per Colorado State University (CSU), the 2022 above-average hurricane season may have 19 named storms, including nine hurricanes and four major hurricanes. This year’s hurricane season could be about 130% of the average season per CSU. The estimated insured losses in the United States from catastrophes in the second quarter could be more than $4 billion per analysts at Goldman Sachs, published in Reinsurance News.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 94, indicating a deterioration of 800 basis points from the year-ago reported figure of 86.
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 second-quarter earnings per share is pegged at $1.05, indicating a decrease of 41.3% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati Financial this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of +2.86%. This is because the Most Accurate Estimate of $1.08 is pegged higher than the Zacks Consensus Estimate of $1.05. 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
Here are three other insurance stocks you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Argo Group International Holdings, Ltd. has an Earnings ESP of +2.98% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.12, indicating a decrease of 30% from the year-ago reported figure.
ARGO’s earnings beat estimates in each of the four trailing quarters.
CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.
CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
Arthur J. Gallagher & Co. (AJG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at $1.68, indicating an increase of 43.5% from the year-ago reported figure. AJG’s earnings beat estimates in each of the four trailing quarters.
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What Awaits Cincinnati Financial (CINF) This Earnings Season?
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report second-quarter 2022 earnings on Jul 27, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 32.55%.
Factors at Note
In the second quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, higher new business written premiums and higher standard lines new business. Contributions from Cincinnati Re are likely to have added to the upside.
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 $182 million, indicating an increase of 4% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues stands at $1.93 billion, suggesting an increase of 64.4% from the prior-year quarter.
Favorable decrease in losses from catastrophes, price increases, ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices are likely to have boosted underwriting profit. However, per Colorado State University (CSU), the 2022 above-average hurricane season may have 19 named storms, including nine hurricanes and four major hurricanes. This year’s hurricane season could be about 130% of the average season per CSU. The estimated insured losses in the United States from catastrophes in the second quarter could be more than $4 billion per analysts at Goldman Sachs, published in Reinsurance News.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 94, indicating a deterioration of 800 basis points from the year-ago reported figure of 86.
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 second-quarter earnings per share is pegged at $1.05, indicating a decrease of 41.3% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati Financial this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of +2.86%. This is because the Most Accurate Estimate of $1.08 is pegged higher than the Zacks Consensus Estimate of $1.05. 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.
Other Stocks to Consider
Here are three other insurance stocks you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Argo Group International Holdings, Ltd. has an Earnings ESP of +2.98% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.12, indicating a decrease of 30% from the year-ago reported figure.
ARGO’s earnings beat estimates in each of the four trailing quarters.
CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.
CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
Arthur J. Gallagher & Co. (AJG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at $1.68, indicating an increase of 43.5% from the year-ago reported figure.
AJG’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.