NASDAQ$CINF
Cincinnati Financial Corp · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Cincinnati Financial experienced a net loss and a decrease in non-GAAP operating income due to a reduction in the fair value of equity securities and increased catastrophe losses.
Cincinnati Financial Corporation reported a net loss of $808 million for the second quarter of 2022, compared to a net income of $703 million in the same period last year. Non-GAAP operating income decreased by 64% to $104 million. The company's book value per share decreased to $66.30. The combined ratio for the property casualty business was 103.2%.
- Second-quarter net loss was $808 million, or $5.06 per share, compared to net income of $703 million, or $4.31 per share, in the second quarter of 2021.
- Non-GAAP operating income decreased 64% to $104 million, or 65 cents per share, compared with $292 million, or $1.79 per share, in the second quarter of last year.
- Book value per share at June 30, 2022, was $66.30, down $15.42 since year-end.
- The property casualty combined ratio for the second quarter of 2022 was 103.2%, up from 85.5% for the second quarter of 2021.
Headline financials
Revenue & EPS history
Cincinnati Financial · Revenue · Quarterly
$820M
Revenue by segment
Cincinnati Financial · $1.65B total across 4 segments · Q2 2022
- Commercial Lines Insurance$995M+9.1%60.2%
- Personal Lines Insurance$414M+8.1%25.1%
- Excess and Surplus Lines Insurance$124M+29.2%7.5%
- Life Insurance$119M-5.6%7.2%
Forward guidance
Cincinnati Financial is optimistic that continuing to adjust their predictive models and staying focused on pricing segmentation can lead to improved results, allowing them to again produce a full-year combined ratio in the low- to mid-90s.
Tailwinds
- Continuing to adjust predictive models
- Staying focused on pricing segmentation
- New small business program, CinergySM, introduced to agents in Illinois, Indiana and Ohio, with additional states planned for the remainder of 2022
- Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM boosted growth, contributing 3 points and 1 point, respectively, to the six-month total, while also contributing meaningful amounts of underwriting profit.
- The Cincinnati Life Insurance Company had a strong first half of the year, increasing term insurance earned premiums 7% and reaching a record $31 million in operating income.
Headwinds
- Investment income increased nicely producing our main source of profits in the second quarter and bringing our total non-GAAP operating income to $357 million for the first half of the year.
- Our insurance business experienced an underwriting loss for the second quarter with a 103.2% combined ratio, resulting in part from an 8.5-point increase in catastrophe losses compared with second quarter 2021.
- Took prudent reserving action in the quarter, reflecting elevated inflation in assorted forms and our belief that various pandemic effects have distorted paid loss cost trends.
- Commercial umbrella coverages – part of our commercial casualty line of business – had a particularly large impact, despite representing only 7% of our full-year 2021 property casualty earned premiums.
- Continued downward pressure in both the equity and bond markets contributed to a decline in book value per share.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+0.0%
Avg return
Earnings day
-0.1%
Avg return
5 days after
+2.7%
Avg return
30 days after
51%
35 / 69 earnings
Positive
+10.9%
Q4 2022
Best reaction
-14.0%
Q2 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.2% | -2.2% | -4.0% | |
| Q4 2025 | -3.3% | -3.5% | -2.6% | |
| Q3 2025 | -3.8% | -1.9% | +6.9% | |
| Q2 2025 | -2.0% | -0.3% | +1.8% | |
| Q1 2025 | +2.9% | +5.7% | +10.4% | |
| Q4 2024 | +2.8% | +1.0% | +4.7% | |
| Q3 2024 | +1.7% | +2.2% | +12.7% | |
| Q2 2024 | +3.3% | +8.5% | +10.6% | |
| Q1 2024 | -7.5% | -3.5% | -1.9% | |
| Q4 2023 | -4.2% | -2.6% | +4.9% | |
| Q3 2023 | -0.8% | +1.3% | +4.4% | |
| Q2 2023 | +5.8% | +4.6% | +0.6% | |
| Q1 2023 | +4.6% | +1.8% | -3.4% | |
| Q4 2022 | +10.9% | +9.2% | +13.7% | |
| Q3 2022 | -3.2% | -2.6% | +8.3% | |
| Q2 2022 | -14.0% | -16.5% | -11.3% | |
| Q1 2022 | -9.1% | -9.5% | -4.9% | |
| Q4 2021 | +7.2% | +5.1% | +10.7% | |
| Q3 2021 | +2.5% | -2.1% | -4.7% | |
| Q2 2021 | +1.4% | +2.6% | +7.2% | |
| Q1 2021 | +2.8% | +6.0% | +12.2% | |
| Q4 2020 | +4.8% | +6.0% | +23.4% | |
| Q3 2020 | -4.6% | -8.6% | +1.5% | |
| Q2 2020 | +0.2% | -6.4% | -5.7% | |
| Q1 2020 | -8.6% | -22.4% | -21.8% | |
| Q4 2019 | +6.4% | +7.6% | -7.4% | |
| Q3 2019 | -2.0% | -2.3% | -7.2% | |
| Q2 2019 | +1.0% | -0.0% | +6.0% | |
| Q1 2019 | +7.6% | +9.2% | +14.6% | |
| Q4 2018 | +2.1% | +1.8% | +2.3% | |
| Q3 2018 | +7.2% | +9.8% | +10.4% | |
| Q2 2018 | +4.4% | +6.1% | +7.3% | |
| Q1 2018 | -4.7% | -6.2% | -6.0% | |
| Q4 2017 | -3.1% | +2.4% | +6.1% | |
| Q3 2017 | -6.2% | -7.4% | -4.3% | |
| Q2 2017 | +5.3% | +4.5% | +0.6% | |
| Q1 2017 | +1.7% | -1.0% | -2.7% | |
| Q4 2016 | -0.3% | +1.9% | +5.0% | |
| Q3 2016 | -1.4% | -2.4% | +5.5% | |
| Q2 2016 | -0.1% | -0.3% | +2.6% | |
| Q1 2016 | +2.7% | — | — | |
| Q4 2015 | +3.9% | — | — | |
| Q3 2015 | +2.7% | — | — | |
| Q2 2015 | +2.3% | — | — | |
| Q1 2015 | -2.4% | — | — | |
| Q4 2014 | -0.4% | — | — | |
| Q3 2014 | +0.9% | — | — | |
| Q2 2014 | -2.7% | — | — | |
| Q1 2014 | -2.8% | — | — | |
| Q4 2013 | -4.3% | — | — | |
| Q3 2013 | +0.1% | — | — | |
| Q2 2013 | +0.9% | — | — | |
| Q1 2013 | -1.7% | — | — | |
| Q4 2012 | +2.0% | — | — | |
| Q3 2012 | +2.9% | — | — | |
| Q2 2012 | +2.6% | — | — | |
| Q1 2012 | +1.2% | — | — | |
| Q4 2011 | -1.2% | — | — | |
| Q4 2008 | -1.2% | — | — | |
| Q3 2011 | +1.4% | — | — | |
| Q2 2011 | -2.1% | — | — | |
| Q1 2010 | -2.5% | — | — | |
| Q1 2011 | +0.1% | — | — | |
| Q4 2010 | +2.0% | — | — | |
| Q3 2009 | -2.3% | — | — | |
| Q3 2010 | -2.3% | — | — | |
| Q4 2009 | -0.6% | — | — | |
| Q2 2010 | -0.6% | — | — | |
| Q2 2009 | -0.6% | — | — |
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