NASDAQ$CINF

Cincinnati Financial Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong non-GAAP operating income results driven by contributions from underwriting and investment operations.

Cincinnati Financial Corporation reported a decrease in net income for Q2 2024, primarily due to a decrease in net investment gains. However, non-GAAP operating income increased. The company's book value per share reached a record high, and the value creation ratio showed positive performance.

  • Second-quarter net income was $312 million, or $1.98 per share.
  • Non-GAAP operating income increased by 7% to $204 million, or $1.29 per share.
  • Book value per share reached $81.79, up $4.73 since year-end.
  • Property casualty new business written premiums topped $400 million for the first time in any single quarter, growing 34% compared with last year.

Headline financials

Total Revenue

$2.54B

Previous: $2.61B-2.3%
EPS (adj)

$1.29

Previous: $1.21+6.6%
Capital Expenditures

-$12M

Previous: -$8M-50.0%
Free Cash Flow

$300M

Previous: $526M-43.0%
Net Income

$312M

Previous: $534M-41.6%
Operating Income

$654M

Previous: $901M-27.4%
Gross Profit

$663M

Previous: $908M-27.0%
Cash & Equivalents

$771M

Previous: $748M+3.1%
Total Assets

$34.8B

Previous: $31.4B+11.0%

Revenue & EPS history

Cincinnati Financial · Revenue · Quarterly

$2.54B

Q2 2024-2.3%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Cincinnati Financial · $1.73B total across 3 segments · Q3 2023

  • Commercial Lines Insurance
    $1.06B+3.3%
  • Personal Lines Insurance
    $528M+22.2%
  • Excess and Surplus Lines Insurance
    $136M+7.9%

Forward guidance

The company's confidence in pricing, risk selection, and agent relationships supports a belief in balancing growth and profitability.

Tailwinds

  • Second-quarter property casualty new business written premiums topped $400 million, growing 34% compared with last year.
  • Total property casualty net written premiums saw double-digit growth, increasing 13% compared with the first half of 2023.
  • Renewal pricing remained robust with commercial, personal and excess & surplus lines seeing average renewal pricing increases in the high-single-digit percent range.
  • Book value again reached a record high, increasing 6.1% since December 31, 2023.
  • Consolidated cash and total investments also reached a new high, surpassing $27 billion.

Headwinds

  • Ongoing developments concerning business interruption insurance claims and litigation related to the COVID-19 pandemic that affect estimates of losses and loss adjustment expenses
  • Effects of any future pandemic, or the resurgence of the COVID-19 pandemic, that could affect results
  • An unusually high level of catastrophe losses due to risk concentrations, changes in weather patterns (whether as a result of global climate change or otherwise), environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes
  • Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect business
  • Events, such as an epidemic, natural catastrophe or terrorism, that could hamper ability to assemble workforce at headquarters location or work effectively in a remote environment

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 2024

Historical avgQ2 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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