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Cincinnati Financial Q3 adj EPS beats estimates

By Reuters News


Overview

  • US property and casualty insurer's Q3 revenue rose 5%, slightly beating analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Combined ratio increased to 90.9% due to higher catastrophe losses


Outlook

  • Company says it is balancing growth with underwriting discipline amid a competitive market

  • Cincinnati Financial expects continued benefit from pricing segmentation and diversification initiatives


Result Drivers

  • CATASTROPHE LOSSES - Co said Q3 combined ratio rose 2.7 percentage points, mainly due to a 7.0 point increase in catastrophe losses

  • PREMIUM GROWTH - Q3 net written premiums rose 2%, driven by price increases, premium growth initiatives and higher insured exposures

  • FAVORABLE RESERVE DEVELOPMENT - Q3 results benefited from favorable prior accident year reserve development, contributing 3.6 percentage points to the combined ratio


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$3.05 bln

$3.03 bln (4 Analysts)

Q3 Adjusted EPS

Beat

$2.86

$1.99 (8 Analysts)

Q3 EPS

$2.96

Q3 Combined Ratio

90.90%

Q3 Underwriting Profit

$240 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "hold"

  • Wall Street's median 12-month price target for Cincinnati Financial Corporation is $192.50, about 9.2% above its October 23 closing price of $176.30

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

  • Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

  • Oct 26 - Alliance Resource Partners Q3 profit jumps on record royalty revenues


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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