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Why Is Cincinnati Financial (CINF) Up 0.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Cincinnati Financial (CINF - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cincinnati Financial due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Cincinnati Financial Corporation before we dive into how investors and analysts have reacted as of late.
Cincinnati Financial Q2 Earnings Top on Higher Investment Income
Cincinnati Financial Corporation 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%. 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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Cincinnati Financial has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cincinnati Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, First American Financial (FAF - Free Report) , a stock from the same industry, has gained 8.5%. The company reported its results for the quarter ended June 2025 more than a month ago.
First American Financial reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $1.53 for the same period compares with $1.27 a year ago.
First American Financial is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +7.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for First American Financial. Also, the stock has a VGM Score of A.
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Why Is Cincinnati Financial (CINF) Up 0.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Cincinnati Financial (CINF - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cincinnati Financial due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Cincinnati Financial Corporation before we dive into how investors and analysts have reacted as of late.
Cincinnati Financial Q2 Earnings Top on Higher Investment Income
Cincinnati Financial Corporation 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%. 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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Cincinnati Financial has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cincinnati Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, First American Financial (FAF - Free Report) , a stock from the same industry, has gained 8.5%. The company reported its results for the quarter ended June 2025 more than a month ago.
First American Financial reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $1.53 for the same period compares with $1.27 a year ago.
First American Financial is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +7.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for First American Financial. Also, the stock has a VGM Score of A.