We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cincinnati Financial Q2 Earnings Top on Higher Investment Income
Read MoreHide Full Article
Key Takeaways
CINF posted Q2 operating EPS of $1.97, beating estimates by 41.7% and rising 52.7% year over year.
Net written premiums rose 11.14% to $2.7B on growth initiatives, pricing, and global business gains.
P&C underwriting income rose 265.7% to $128M as the combined ratio improved 360 bps to 94.9.
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year.
The quarterly results of CINF were aided by premium growth initiatives, price increases and higher interest income from fixed-maturity securities.
Operational Update
Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%.
Cincinnati Financial Corporation Price, Consensus and EPS Surprise
Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.
Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million. It was due to an increase in interest income from fixed-maturity securities and a decrease in equity portfolio dividends. The Zacks Consensus Estimate was pegged at $279 million.
Total benefits and expenses of Cincinnati Financial increased 10.9% year over year to $2.4 billion, primarily due to higher insurance losses and contract holders' benefits, underwriting, acquisition and insurance expenses, interest expenses and other operating expenses. Our estimate was $2.5 billion.
In its property & casualty (P&C) insurance business, CINF witnessed an underwriting income of $128 million, which increased 265.7% from the year-ago period. Our estimate was pegged at $69.4 million.
The combined ratio, a measure of underwriting profitability, improved 360 basis points (bps) year over year to 94.9. Our estimate was pinned at 97.3.
Quarterly Segment Update
Commercial Lines Insurance: Total revenues of $1.2 billion increased 9.4% year over year, which missed our estimate by 3% and the Zacks Consensus Estimate by 0.4%. Underwriting income was $87 million, which jumped nearly nine-fold year over year. The combined ratio improved 620 bps year over year to 92.9. Our estimate was pegged at 93.5.
Personal Lines Insurance: Total revenues of $806 million increased 27.5% year over year on account of a 27% rise in premiums earned. Our estimate was $796.4 million, while the Zacks Consensus Estimate was pegged at $794 million.
The company reported an underwriting loss of $14 million, narrower than the underwriting loss of $42 million incurred in the year-earlier period. Our estimate was pegged at a loss of $57.4 million. The combined ratio improved 490 bps year over year to 102. Our estimate was 107.3.
Excess and Surplus Lines Insurance: Total revenues of $175 million grew 15% year over year, aided by 15% higher earned premiums. Our estimate was $166.8 million, while the Zacks Consensus Estimate was pegged at $172 million.
Underwriting profit dropped 100% year over year to $16 million. Our estimate was pinned at $11.9 million. The combined ratio improved 430 bps year over year to 91.1. Our estimate was 93.4.
Life Insurance: Total revenues were $130 million, up 6% year over year. The Zacks Consensus Estimate was pegged at $84 million. Our estimate was $82.7 million. Total benefits and expenses increased 5% year over year to $97 million due to higher contract holders’ benefits incurred.
Financial Update
As of June 30, 2025, Cincinnati Financial had total assets worth $38.8 billion, up 6.4% from the level at the end of 2024.
Total debt was $815 million as of June 30, 2025, which remained unchanged from the 2024-end level. The company’s debt-to-capital ratio was 5.4% as of June 30, 2025, which improved 10 bps from the end of 2024.
As of June 30, 2025, CINF’s book value per share was $91.46, up 2.6% from 2024-end.
Zacks Rank
Cincinnati Financial currently carries a Zacks Rank #3 (Hold).
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.
Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cincinnati Financial Q2 Earnings Top on Higher Investment Income
Key Takeaways
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year.
The quarterly results of CINF were aided by premium growth initiatives, price increases and higher interest income from fixed-maturity securities.
Operational Update
Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%.
Cincinnati Financial Corporation Price, Consensus and EPS Surprise
Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation Quote
Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.
Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million. It was due to an increase in interest income from fixed-maturity securities and a decrease in equity portfolio dividends. The Zacks Consensus Estimate was pegged at $279 million.
Total benefits and expenses of Cincinnati Financial increased 10.9% year over year to $2.4 billion, primarily due to higher insurance losses and contract holders' benefits, underwriting, acquisition and insurance expenses, interest expenses and other operating expenses. Our estimate was $2.5 billion.
In its property & casualty (P&C) insurance business, CINF witnessed an underwriting income of $128 million, which increased 265.7% from the year-ago period. Our estimate was pegged at $69.4 million.
The combined ratio, a measure of underwriting profitability, improved 360 basis points (bps) year over year to 94.9. Our estimate was pinned at 97.3.
Quarterly Segment Update
Commercial Lines Insurance: Total revenues of $1.2 billion increased 9.4% year over year, which missed our estimate by 3% and the Zacks Consensus Estimate by 0.4%. Underwriting income was $87 million, which jumped nearly nine-fold year over year. The combined ratio improved 620 bps year over year to 92.9. Our estimate was pegged at 93.5.
Personal Lines Insurance: Total revenues of $806 million increased 27.5% year over year on account of a 27% rise in premiums earned. Our estimate was $796.4 million, while the Zacks Consensus Estimate was pegged at $794 million.
The company reported an underwriting loss of $14 million, narrower than the underwriting loss of $42 million incurred in the year-earlier period. Our estimate was pegged at a loss of $57.4 million. The combined ratio improved 490 bps year over year to 102. Our estimate was 107.3.
Excess and Surplus Lines Insurance: Total revenues of $175 million grew 15% year over year, aided by 15% higher earned premiums. Our estimate was $166.8 million, while the Zacks Consensus Estimate was pegged at $172 million.
Underwriting profit dropped 100% year over year to $16 million. Our estimate was pinned at $11.9 million. The combined ratio improved 430 bps year over year to 91.1. Our estimate was 93.4.
Life Insurance: Total revenues were $130 million, up 6% year over year. The Zacks Consensus Estimate was pegged at $84 million. Our estimate was $82.7 million. Total benefits and expenses increased 5% year over year to $97 million due to higher contract holders’ benefits incurred.
Financial Update
As of June 30, 2025, Cincinnati Financial had total assets worth $38.8 billion, up 6.4% from the level at the end of 2024.
Total debt was $815 million as of June 30, 2025, which remained unchanged from the 2024-end level. The company’s debt-to-capital ratio was 5.4% as of June 30, 2025, which improved 10 bps from the end of 2024.
As of June 30, 2025, CINF’s book value per share was $91.46, up 2.6% from 2024-end.
Zacks Rank
Cincinnati Financial currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.
Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.