NASDAQ$CINF

Cincinnati Financial Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Cincinnati Financial reported a net income of $484 million, or $2.99 per share, for the third quarter of 2020, and a book value per share of $60.57 as of September 30, 2020.

Cincinnati Financial Corporation reported a significant increase in net income for the third quarter of 2020, primarily due to a substantial increase in the fair value of equity securities held. However, non-GAAP operating income decreased due to elevated catastrophe losses, despite improvements in other areas of performance. The company remains confident in its balance sheet and risk management decisions, with a focus on providing outstanding claims service.

  • Third-quarter net income increased to $484 million, or $2.99 per share, compared to $248 million, or $1.49 per share, in Q3 2019.
  • Non-GAAP operating income decreased by 65% to $63 million, or $0.39 per share, from $179 million, or $1.08 per share, in the same period last year.
  • Book value per share at September 30, 2020, rose to $60.57, up $0.02 since year-end.
  • The combined ratio for the third quarter of 2020 was 103.6%, up from 94.2% in the third quarter of 2019, primarily due to catastrophe losses.

Headline financials

Total Revenue

$2.23B

Previous: $1.7B+31.0%
EPS (adj)

$0.39

Previous: $1.08-63.9%
Combined Ratio

103.6%

Previous: 94.2%+10.0%
Book Value Per Share

$60.57

No prior period
Net Written Premiums

$1.39B

No prior period
Capital Expenditures

-$16M

Previous: -$22M+27.3%
Free Cash Flow

$468M

Previous: $226M+107.1%
Net Income

$484M

Previous: $248M+95.2%
Operating Income

$793M

Previous: $493M+60.9%
Gross Profit

$798M

Previous: $498M+60.2%
Cash & Equivalents

$914M

Previous: $787M+16.1%
Total Assets

$26.4B

Previous: $24.7B+6.6%
Stock-Based Comp

$8M

Previous: $7M+14.3%

Revenue & EPS history

Cincinnati Financial · Revenue · Quarterly

$2.23B

Q3 2020+31%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cincinnati Financial · $1.43B total across 4 segments · Q3 2020

  • Commercial Lines Insurance
    $866M
  • Personal Lines Insurance
    $368M
  • Life Insurance
    $114M+6.5%
  • Excess and Surplus Lines Insurance
    $82M

Forward guidance

Company did not provide specific forward guidance, but expressed confidence in future value growth through operational initiatives.

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 Q3 2020

Historical avgQ3 2020

+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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