Cincinnati Financial Q3 Earnings and Revenues Top, Premiums Rise Y/Y

Cincinnati Financial Corporation CINF reported third-quarter 2025 operating income of $2.85 per share, which surpassed the Zacks Consensus Estimate by 41.8%. The bottom line increased 100.7% 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 $2.9 billion, which improved 12.1% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. The top line beat the consensus mark by 0.8%.Cincinnati Financial Corporation Price, Consensus and EPS Surprise Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation QuoteNet written premiums climbed 9% year over year to $2.5 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 14% year over year to $295 million and was higher than our estimate of $291.6 million. It was due to an increase in interest income from fixed-maturity securities and an increase in equity portfolio dividends. The Zacks Consensus Estimate was pegged at $300.3 million. Total benefits and expenses of Cincinnati Financial increased 14.5% year over year to $2.3 billion, primarily due to higher underwriting, acquisition and insurance expenses. Our estimate was $2.5 billion. In its property & casualty (P&C) insurance business, CINF witnessed an underwriting income of $293 million, which increased nearly fivefold from the year-ago period.  The combined ratio, a measure of underwriting profitability, improved 920 basis points (bps) year over year to 88.2. Our estimate was pinned at 98.Quarterly Segment UpdateCommercial Lines Insurance: Total revenues of $1.2 billion increased 8% year over year, driven by an 8% rise in premiums earned. Our estimate was $1.3 billion and the Zacks Consensus Estimate was $1.2 billion.Underwriting income was $111 million, which jumped nearly 37% year over year. The combined ratio improved 190 bps year over year to 91.9. Our estimate was pegged at 92.7.Personal Lines Insurance: Total revenues of $839 million increased 23% year over year on account of a 24% rise in premiums earned. Our estimate was $900.9 million, while the Zacks Consensus Estimate was pegged at $852.6 million. The company reported an underwriting profit of $99 million against an underwriting loss of $22 million incurred in the year-earlier period.  The combined ratio improved 2210 bps year over year to 88.2. Excess and Surplus Lines Insurance: Total revenues of $157 million grew 11% year over year, aided by 11% higher earned premiums. Our estimate was $168.7 million, while the Zacks Consensus Estimate was pegged at $178.8 million. Underwriting profit jumped 138% year over year to $19 million. Our estimate was pinned at $14.2 million. The combined ratio improved 550 bps year over year to 98.8. Our estimate was 92.1.Life Insurance: Total revenues were $135 million, up 5% year over year. The Zacks Consensus Estimate was pegged at $95.1 million. Our estimate was $83.5 million. Total benefits and expenses decreased 4% year over year to $99 million due to lower contract holders’ benefits incurred and lower underwriting expenses incurred.Financial UpdateAs of Sept. 30, 2025, Cincinnati Financial had total assets worth $40.6 billion, up 11.1% from the level at the end of 2024. Total debt was $815 million as of Sept. 30, 2025, which remained unchanged from the 2024-end level. The company’s debt-to-capital ratio was 5% as of Sept. 30, 2025, which improved 50 bps from the end of 2024. As of Sept. 30, 2025, CINF’s book value per share was $98.76, up 12% from 2024-end.Zacks RankCINF 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 InsurersThe Progressive Corporation’s PGR third-quarter 2025 earnings per share of $4.05 missed the Zacks Consensus Estimate by 20.3%. Operating revenues of $22.2 billion missed the Zacks Consensus Estimate by 0.6%. However, the bottom line increased 13.1% year over year while the top line increased 12.7%. Net premiums written were $21.3 billion in the quarter, up 10% from $19.5 billion a year ago. Net premiums earned grew 14% to $20.8 billion, missing the Zacks Consensus Estimate of $21.1 billion.The Travelers Companies TRV reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.W.R. Berkley Corporation's WRB third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion.  The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access 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 The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report The Progressive Corporation (PGR): 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