Cincinnati Financial Q2 Earnings Top on Higher Investment Income

Cincinnati Financial Corporation CINF reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year.The quarterly results of CINF were aided by premium growth initiatives, price increases and higher interest income from fixed-maturity securities.Operational Update         Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%.Cincinnati Financial Corporation Price, Consensus and EPS Surprise Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation QuoteNet written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million. It was due to an increase in interest income from fixed-maturity securities and a decrease in equity portfolio dividends. The Zacks Consensus Estimate was pegged at $279 million.Total benefits and expenses of Cincinnati Financial increased 10.9% year over year to $2.4 billion, primarily due to higher insurance losses and contract holders' benefits, underwriting, acquisition and insurance expenses, interest expenses and other operating expenses. Our estimate was $2.5 billion. In its property & casualty (P&C) insurance business, CINF witnessed an underwriting income of $128 million, which increased 265.7% from the year-ago period. Our estimate was pegged at $69.4 million. The combined ratio, a measure of underwriting profitability, improved 360 basis points (bps) year over year to 94.9. Our estimate was pinned at 97.3.Quarterly Segment UpdateCommercial Lines Insurance: Total revenues of $1.2 billion increased 9.4% year over year, which missed our estimate by 3% and the Zacks Consensus Estimate by 0.4%. Underwriting income was $87 million, which jumped nearly nine-fold year over year. The combined ratio improved 620 bps year over year to 92.9. Our estimate was pegged at 93.5.Personal Lines Insurance: Total revenues of $806 million increased 27.5% year over year on account of a 27% rise in premiums earned. Our estimate was $796.4 million, while the Zacks Consensus Estimate was pegged at $794 million.The company reported an underwriting loss of $14 million, narrower than the underwriting loss of $42 million incurred in the year-earlier period. Our estimate was pegged at a loss of $57.4 million. The combined ratio improved 490 bps year over year to 102. Our estimate was 107.3.Excess and Surplus Lines Insurance: Total revenues of $175 million grew 15% year over year, aided by 15% higher earned premiums. Our estimate was $166.8 million, while the Zacks Consensus Estimate was pegged at $172 million.Underwriting profit dropped 100% year over year to $16 million. Our estimate was pinned at $11.9 million. The combined ratio improved 430 bps year over year to 91.1. Our estimate was 93.4.Life Insurance: Total revenues were $130 million, up 6% year over year. The Zacks Consensus Estimate was pegged at $84 million. Our estimate was $82.7 million. Total benefits and expenses increased 5% year over year to $97 million due to higher contract holders’ benefits incurred.Financial UpdateAs of June 30, 2025, Cincinnati Financial had total assets worth $38.8 billion, up 6.4% from the level at the end of 2024.Total debt was $815 million as of June 30, 2025, which remained unchanged from the 2024-end level. The company’s debt-to-capital ratio was 5.4% as of June 30, 2025, which improved 10 bps from the end of 2024.As of June 30, 2025, CINF’s book value per share was $91.46, up 2.6% from 2024-end.Zacks RankCincinnati Financial currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersFirst American Financial FAF reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.Kinsale Capital Group KNSL delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chubb Limited (CB): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report First American Financial Corporation (FAF): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks