CINCINNATI – Cincinnati Financial Corporation (NASDAQ:) reported third-quarter 2024 results that beat revenue expectations but fell short on earnings per share.
The property and casualty insurer posted non-GAAP operating income of $1.42 per share, missing analyst estimates of $1.46. However, revenue came in at $2.3 billion, surpassing the consensus forecast of $2.24 billion.
Cincinnati Financial saw strong premium growth in the quarter, with net written premiums increasing 17% to $2.29 billion. This was driven by a 30% jump in new business premiums written by agencies to $406 million.
The company’s combined ratio, a key measure of underwriting profitability, deteriorated to 97.4% from 94.4% in the year-ago quarter. This was largely due to higher catastrophe losses, which added 13.8 percentage points to the combined ratio compared to 9.4 points last year.
“We responded to 20 weather-related catastrophes across the U.S. in the third quarter, including Hurricane Helene, which swept through 11 states at the end of September,” said Stephen M. Spray, president and CEO.
Despite the higher catastrophe losses, Cincinnati Financial’s book value per share increased 15% year-to-date to $88.32 as of September 30.
The company’s investment income rose 15% to $258 million, helped by a 21% increase in bond interest income.
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