Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
In 1Q16, $CINF said its consolidated property casualty agency new business written premiums rose $9MM versus 1Q15. New business written premiums for both commercial lines and personal lines insurance segments were higher, while it was flat for the excess and surplus insurance segment.
$CINF said that The Cincinnati Insurance Companies' property casualty group expects its 3Q17 results to include pretax catastrophe losses of approx. $102-114MM, representing 3Q17 combined ratio of approx. 8.6-9.6 percentage points. The company also expects its 3Q17 property casualty combined ratio to be in the range of 98.5-101.5%.
$CINF's shareholders elected all directors for one-year terms to the 14-member board, based on preliminary voting results at its annual meeting on May 6, 2017. Shareholders also ratified the selection of Deloitte & Touche LLP as independent registered public accounting firm for 2017.
$CINF said that The Cincinnati Insurance Companies' property casualty group expects its 1Q results to include pretax catastrophe losses of about $106MM, representing an impact on 1Q17 combined ratio of about 9.2 percentage points, based on estimated property casualty earned premiums.
$CINF said its lead property casualty insurance subsidiary, The Cincinnati Insurance Co., began marketing personal lines products in Texas by expanding the availability of its Executive Capstone program for high net worth clients to the state.
$CINF's book value increased 10% for 2016 to $42.95 per share at December 31, 2016. $CINF finished 2016 with a value creation ratio of 14.5%, exceeding its long-term objective of a 10-13% annual average. Pretax investment income rose to $153MM for 4Q16 and $595MM for 2016, up 2% and 4%, respectively.
Insurance company $CINF reported a $56MM decrease in 4Q16 net income, reflecting the after-tax net effect of a $63MM reduction in contribution from property casualty underwriting that included an increase of $45MM in catastrophe losses. Net income was $100MM or $0.60 per share versus $156MM or $0.94 per share in 4Q15. Total revenues were $1.3Bil.
$CINF expects its 4Q16 property casualty combined ratio of 96-98%, including the effect of catastrophe losses. Its 4Q combined ratio before catastrophe loss effects is estimated to be about 3 percentage points higher than the result for the first 9 months of 2016, largely due to less favorable reserve development on prior accident years.
$CINF said The Cincinnati Insurance Companies' property casualty group expects its 4Q16 results to include pretax catastrophe losses of about $75-85MM, representing an impact on the 4Q16 combined ratio of about 6.5-7.5 percentage points, based on estimated property casualty earned premiums.
$CINF saw good performance in its Commercial Line segment, with 3Q16 combined ratio near 90%. Also, Excess and Surplus lines segment reported positive results with a combined ratio below 70%. For the Life Insurance subsidiary, earned premiums rose double digits for the quarter & YTD, despite change in interest rate slowing YTD growth and income.
$CINF said Charles Stoneburner II, SVP, commercial lines for its lead subsidiary, The Cincinnati Insurance Co., will retire within the next six months, completing the transition plan set in motion last November. As previously announced, Stephen Spray, SVP, will be the next head of Cincinnati's commercial lines.
$CINF said the funds generated from net operating cash flow for 1H16 rose 4% YoverY to $490MM and helped generate $292MM of net purchases of securities for the investment portfolio. $CINF added that it declared a dividend of $0.48 to shareholders, giving a net effect of a book value increase of $1.41 during 2Q16 to a record $42.37 per share.
Property & casualty insurance company $CINF said it is pleased to report satisfactory operating performance, despite 2Q16 catastrophe loss effects that were slightly higher than the long term avg. $CINF added, higher investment income for 1H16 offset a small decline in property casualty underwriting profit, leading to a 3% rise in operating income.