Q2 2024 Cincinnati Financial Corp Earnings Call Transcript
Key Points
- Cincinnati Financial Corp (CINF) reported a net income of $312 million for Q2 2024, including a $112 million after-tax increase in the fair value of equity securities.
- Non-GAAP operating income for Q2 2024 was $204 million, up $13 million from the previous year.
- Investment income grew by 10% in Q2 2024 compared to Q2 2023, with bond interest income increasing by 18%.
- Consolidated property casualty net written premiums grew by 14% for the quarter, with agency renewal premiums up 12% and new business premiums up 34%.
- The life insurance subsidiary had an outstanding quarter, with net income of $24 million and operating income growth of 26%.
- The property casualty combined ratio for Q2 2024 was 98.5%, which is 0.9 percentage points higher than Q2 2023.
- Prior accident year reserve development was favorable but 3.6 points lower than the previous year, indicating some uncertainty in ultimate losses.
- The commercial lines combined ratio increased by 2.2 percentage points to 99.1%, partly due to less favorable prior accident year reserve development.
- Personal lines combined ratio was 106.9%, only 0.7 percentage points better than last year, despite an increase of 1.2 points from higher catastrophe losses.
- The expense ratio for property casualty underwriting increased by 0.5 percentage points, reflecting higher profit-sharing commissions and employee-related expenses.
Good morning and welcome to the Cincinnati Financial second quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded.
I'd now like to turn the conference over to Dennis McDaniel, Investor Relations Officer. Please go ahead.
Hello. This is Dennis McDaniel at Cincinnati Financial. Thank you for joining us for our second quarter 2024 earnings conference call. Late yesterday, we issued a news release on our results, along with our supplemental financial package, including our quarter-end investment portfolio. To find copies of any of these documents, please visit our investor website, cinfin.com/investors. The shortest route to the information is the Quarterly Results link in the navigation menu on the far left.
On this call, you'll first hear from President and Chief Executive Officer, Steve Spray; and then from Executive Vice President and Chief Financial Officer, Mike Sewell. After their prepared remarks, investors
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