Cincinnati Insurance reports Q3 2024 results

Cincinnati Insurance held its earnings call on Oct 25, 2024. Key highlights:

• The company reported an EPS of $1.42, slightly below the consensus of $1.48, reflecting a 4.05% surprise.
• Q3 2024 revenue reached $3.32 billion, a 31.2% increase year-over-year.
• Combined Ratio: The property casualty combined ratio was 97.4%, higher by 3 points than the previous year, with catastrophe losses contributing 3.9 points.
• Premium Growth: Consolidated net written premiums grew by 17% year-over-year, with agency renewal premiums up by 16% and new business premiums up by 30%.
• Catastrophe Losses: Catastrophe losses for the quarter included $38 million from Hurricane Helene, with an expected impact of $75 million to $125 million for Hurricane Milton in Q4.
• Commercial Lines Growth: Net written premiums for commercial lines grew by 11%, with a combined ratio of 93%, showing a 2.2 percentage point improvement.
• Personal Lines Performance: Personal lines grew 29% in net written premiums, though the combined ratio rose to 110.3% due to an increase in catastrophe losses.
• Life Insurance Subsidiary: Cincinnati’s life insurance subsidiary posted net income of $20 million and a 4% increase in term life insurance earned premiums.