Cincinnati Financial (CINF) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $820 million ($5.20 per share), reversing a $99 million loss in Q3 2023, driven by a $645 million after-tax increase in the fair value of equity securities held.

• Non-GAAP operating income for Q3 2024 was $224 million, down 14% year-over-year due to higher catastrophe losses.

• Book value per share reached $88.32 at September 30, 2024, up 15% since year-end 2023, with shareholders' equity up 14% to $13.8 billion.

• Value creation ratio for the first nine months of 2024 was 17.8%, up from 4.4% in 2023, mainly due to higher investment gains.

• Cash dividends declared per share increased 8% year-over-year, marking the 64th consecutive year of dividend increases.

Financial highlights

• Total Q3 2024 revenues were $3.32 billion, up 83% year-over-year; earned premiums grew 13% in Q3 and 11% for the nine months.

• Property casualty net written premiums grew 17% year-over-year in Q3, with 16% growth in renewals and 30% in new business.

• Investment income rose 15% year-over-year; bond interest income up 21%.

• Combined ratio for property casualty was 97.4% in Q3 2024 (up 3.0 points year-over-year), with catastrophe losses contributing 3.9 points.

• Debt-to-total-capital ratio decreased to 5.6% from 6.3% at year-end 2023.

Outlook and guidance

• Management expects continued benefit from price increases and ongoing initiatives to improve pricing precision and loss experience.

• Estimated pre-tax incurred losses from Hurricane Milton in Q4 are expected between $75 million and $125 million, with Cincinnati Re representing more than half.

• Dividend increases and share repurchases remain a priority, supported by strong capital and liquidity.

• Combined ratio for the first nine months of 2024 was 96.5%, within the long-term target range of 92% to 98%.

• Fitch Ratings revised outlook to positive, affirming financial strength.