Don't Know Your Password?
New to Zacks? Get started here.
Don't Know Your Password?
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Equity Research
TRV WRB CINF PGR
Trades from $1
You follow Analyst Blog – edit
You follow Zacks Equity Research – edit
Cincinnati Financial Corporation (CINF – Free Report) reported first-quarter 2023 operating income of 89 cents per share, which beat the Zacks Consensus Estimate by 30.9% and our estimate of 61 cents. However, the bottom line decreased 43.7% year over year.
Total operating revenues in the quarter under review were $2,135 million, which beat the Zacks Consensus Estimate by 5.4% and our estimate of $1,820.8 million. The top line improved 13.5% year over year. This improvement was driven by higher earned premiums, other revenues and investment income.
The insurer’s results benefited from improved earned premiums and investment income, partly offset by escalating costs, poor underwriting results and deteriorated combined ratio.
Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation Quote
Net written premiums climbed 6% year over year to $2,019 million, attributable largely to premium growth initiatives, a higher level of insured exposures and price increases. However, the figure was lower than our estimate of $2,080 million.
Investment income, net of expenses, increased 14% year over year to $210 million, driven by growth in equity portfolio dividends and interest income. The figure is higher than our estimate of $196.3 million.
Total benefits and expenses of Cincinnati Financial increased 25.7% year over year to $1,973 million, primarily because of higher insurance losses and contract holders’ benefits and underwriting, acquisition and insurance expenses. The figure came in higher than our estimate of $1,698.6 million.
In its property & casualty insurance business, Cincinnati Financial witnessed an underwriting loss of $10 million, which plunged by a huge margin year over year. However, the figure was narrower than our estimate of $22.4 million underwriting loss.
Combined ratio — a measure of underwriting profitability — deteriorated 1080 basis points (bps) year over year to 100.7%.
Commercial Lines Insurance: Total revenues of $1,057 million increased 10% year over year. This metric beat the Zacks Consensus Estimate by 1.7% and our estimate by a significant margin. This upside was primarily driven by solid premiums earned. The segment reported an underwriting loss of $2 million, which plunged by a significant margin year over year. The combined ratio deteriorated 810 bps year over year to 100.4%.
Personal Lines Insurance: Total revenues of $465 million rose 15% year over year due to a 15% increase in premiums earned. Total revenues beat the Zacks Consensus Estimate by 5% and our estimate by a significant margin. The segment reported an underwriting loss of $57 million, which declined significantly from the prior-year quarter. The combined ratio deteriorated 2860 bps year over year to 112.5%.
Excess and Surplus Lines Insurance: Total revenues of $127 million grew 12% year over year, aided by 13% higher earned premiums. The metric missed the Zacks Consensus Estimate by 0.9% and our estimate by a significant margin. The segment’s underwriting profit decreased 19% year over year to $13 million. The combined ratio deteriorated 400 bps year over year to 89.9%.
Life Insurance: Total revenues were $125 million, up 6% year over year due to a 3% rise in earned premiums and a 7% rise in investment income. Total revenues beat the Zacks Consensus Estimate by 15.7% and our estimate by a significant margin. Total benefits and expenses increased 5% year over year to $101 million due to higher contract holders’ benefits incurred.
As of Mar 31, 2023, Cincinnati Financial had total assets worth $30,474 million, up from $29,732 million at 2022-end. The total debt remained flat year over year at $839 million.
Cincinnati Financial’s debt-to-capital ratio was 7.2% as of Mar 31, 2023, which improved 20 bps from 2022-end.
As of Mar 31, 2023, Cincinnati Financial’s book value per share was $ 68.33, up 1.7% from 2022-end.
Cincinnati Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Travelers Companies, Inc. (TRV – Free Report) reported first-quarter 2023 core income of $4.11 per share, which beat the Zacks Consensus Estimate of $3.64 and our estimate of $3.41.
However, the bottom line decreased 2.6% year over year. The year-over-year decline reflects higher catastrophe losses and lower net favorable prior-year reserve developments. However, a higher underlying underwriting gain and higher net investment income partially offset the same.
The Progressive Corporation’s (PGR – Free Report) first-quarter 2023 earnings per share of 65 cents missed the Zacks Consensus Estimate of $1.44 and our estimate of $1.50. The bottom line declined 20.7% year over year.
Net premiums written were $16.1 billion in the quarter, rising 22% from $13.2 billion a year ago and beating our estimate of $14.6 billion.Net premiums earned grew 15% to $13.5 billion and beat our estimate of $12.6 billion.
W.R. Berkley Corporation’s (WRB – Free Report) first-quarter 2023 operating income of $1 per share missed the Zacks Consensus Estimate by about 16%. The bottom line declined 9.1% year over year and missed our estimate of $1.19.
The insurer benefited from higher premiums, driven by strong rate increases in nearly all lines of business, exposure growth fueling continued strong underwriting performance, and a surge in investment income.
The Travelers Companies, Inc. (TRV) – free report >>
W.R. Berkley Corporation (WRB) – free report >>
Cincinnati Financial Corporation (CINF) – free report >>
The Progressive Corporation (PGR) – free report >>
Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next 30-90 days.
Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. See our report’s 7 new picks today, absolutely FREE.
This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research 10 S Riverside Plaza Suite #1600 Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.27% per year. These returns cover a period from January 1, 1988 through April 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.