NASDAQ$CINF

Cincinnati Financial Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cincinnati Financial reported net income of $820 million, or $5.20 per share, and non-GAAP operating income of $224 million, or $1.42 per share, for the third quarter of 2024.

Cincinnati Financial Corporation reported a strong third quarter with a significant increase in net income driven by gains in the fair value of equity securities. The company's book value per share reached a record high, and the value creation ratio for the first nine months of the year exceeded the company's target range.

  • Third-quarter net income was $820 million, or $5.20 per share, compared to a net loss of $99 million, or $0.63 per share, in the third quarter of 2023.
  • Third-quarter non-GAAP operating income was $224 million, or $1.42 per share, compared to $261 million, or $1.66 per share, in the third quarter of last year.
  • Book value per share at September 30, 2024, was $88.32, up $11.26 since year-end.
  • Value creation ratio for the first nine months of 2024 was 17.8%, compared with 4.4% for the same period of 2023.

Headline financials

Total Revenue

$3.32B

Previous: $1.81B+83.3%
EPS

$5.20

Previous: $1.66+213.3%
Combined Ratio

97.4%

Previous: 94.4%+3.2%
Book Value Per Share

$88.32

Previous: $67.72+30.4%
Net Written Premiums

$2.29B

Previous: $1.96B+17.2%
Property Casualty Underwriting Profit

$62M

Previous: $112M-44.6%
Capital Expenditures

-$18M

Previous: -$10M-80.0%
Free Cash Flow

$802M

Previous: -$109M+835.8%
Net Income

$820M

Previous: -$99M+928.3%
Operating Income

$1.3B

Previous: $101M+1188.1%
Gross Profit

$1.31B

Previous: $106M+1133.0%
Cash & Equivalents

$1.75B

Previous: $899M+94.9%
Total Assets

$37B

Previous: $30.9B+19.7%

Revenue & EPS history

Cincinnati Financial · Revenue · Quarterly

$3.32B

Q3 2024+83.3%vs Q3 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 safe harbor statement discusses risks and uncertainties that may cause actual results to differ materially from forward-looking statements, including potential impacts from pandemics, catastrophe losses, market conditions, and regulatory changes.

Tailwinds

  • Ongoing focus on increasing product and geographic diversification.
  • Fine-tuning pricing precision.
  • Applying underwriting expertise.
  • Rising investment income.
  • Responsiveness and stability as options for new business opportunities.

Headwinds

  • Effects of any future pandemic, or the resurgence of the COVID-19 pandemic
  • Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns
  • Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance, due to inflationary trends or other causes
  • Declines in overall stock market values negatively affecting our equity portfolio and book value
  • Domestic and global events resulting in insurance losses, capital market or credit market uncertainty

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 2024

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro