NASDAQ$CINF
Cincinnati Financial Corp · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Cincinnati Financial reported a net loss due to a reduction in the fair value of equity securities, while investment income continued to contribute to a positive operating profit.
Cincinnati Financial Corporation reported a net loss of $418 million for the third quarter of 2022, compared to a net income of $153 million in the same period last year. The decrease was primarily due to a $557 million after-tax reduction in the fair value of equity securities. Non-GAAP operating income also decreased by 45% to $114 million.
- Third-quarter net loss was $418 million, or $2.64 per share, compared to net income of $153 million, or 94 cents per share, in the third quarter of 2021.
- Non-GAAP operating income decreased by 45% to $114 million, or 73 cents per share.
- Book value per share was $60.01 at September 30, 2022, down $21.71 since year-end.
- The property casualty combined ratio increased to 103.9% for the third quarter of 2022, up from 92.6% in the third quarter of 2021.
Headline financials
Revenue & EPS history
Cincinnati Financial · Revenue · Quarterly
$1.41B
Revenue by segment
Cincinnati Financial · $1.59B total across 3 segments · Q3 2022
- Commercial Lines Insurance$1.03B+10.5%64.8%
- Personal Lines Insurance$432M+11.1%27.2%
- Excess and Surplus Lines Insurance$126M+18.9%7.9%
Forward guidance
Cincinnati Financial's management expressed confidence in their ongoing ability to produce value for shareholders, citing their multi-pronged strategy and dedicated associates working with independent agents to grow the insurance business profitably.
Tailwinds
- Talented and dedicated associates are working vigorously with the independent agents.
- Drive our multi-pronged strategy to continue growing our insurance business profitably.
- Sophisticated pricing models give us a robust view of the many factors impacting our business.
- Underwriters are focused on risk selection and pricing discipline for new or renewal business.
- Continued strong net written premium growth of 14% on both a quarterly and nine-month basis.
Headwinds
- Company reported a net loss of $418 million for the third quarter of 2022.
- Losses from Hurricane Ian pushed our third-quarter combined ratio to 103.9%.
- Combined ratios before catastrophes rose compared to 2021’s excellent results.
- Personal auto is one line of business where we see the need for rate increases nearly across the board.
- Inflation levels our industry hasn’t experienced in decades, combined with increasingly distracted drivers, continue to push both severity and frequency of claims higher.
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 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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