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The loss was driven in part by a $56 million after-tax reduction in the fair value of equity securities still held in Q1\u201925.<\/p>\nCincinnati Financial Corporation has reported a net loss of $90 million for the first quarter of 2025, compared with net income of $755 million for the same period a year earlier.<\/p>\n
The loss was driven in part by a $56 million after-tax reduction in the fair value of equity securities still held in Q1\u201925.<\/p>\n
The company also attributed the $845 million year-over-year decline in net income to the after-tax net effect of a $536 million decrease in net investment gains and a $356 million increase in after-tax catastrophe losses.<\/p>\n
Cincinnati posted a non-GAAP operating loss of $37 million for the quarter, compared with operating income of $272 million in Q1\u201924.<\/p>\n
The company\u2019s property and casualty segment reported a combined ratio of 113.3%, up significantly from 93.6% in the first quarter of 2024.<\/p>\n
The increased combined ratio reflected an underwriting loss of $298 million, compared with an underwriting profit of $131 million a year earlier. The loss was driven by $1.9 billion in loss and loss expenses and $679 million in underwriting expenses.<\/p>\n The company recorded 11% growth in Q1\u201925 property casualty net written premiums to $247 million, reflecting premium growth initiatives, price increases, and a higher level of insured exposures.<\/p>\n Cincinnati Re and Cincinnati Global Underwriting Ltd together contributed 2 percentage points to Q1 growth.<\/p>\n Within commercial lines, underwriting profit rose to $97 million in Q1\u201925, up from $39 million the year prior.<\/p>\n However, personal lines deteriorated to an underwriting loss of $357 million, compared with a profit of $37 million a year earlier.<\/p>\n Excess and surplus lines reported an underwriting profit of $20 million, up from $12 million.<\/p>\n The company\u2019s life insurance subsidiary generated a net income of $21 million, slightly up from $19 million.<\/p>\n Cincinnati reported total investment income after-tax of $232 million for the quarter, up 14% from $204 million in Q1\u201924.<\/p>\n Stephen M. Spray, President and CEO, commented, “The Cincinnati Insurance Companies were prepared for the unprecedented losses our policyholders suffered from the wildfires in California and powerful spring storms that impacted communities in 21 states. Assured by the strength of our balance sheet, we were able to focus on what was important: outstanding claims service and our ongoing initiatives to profitably grow our business.<\/p>\n “For 75 years, our capital and risk management strategies have consistently provided a strong foundation for long-term success. We met these catastrophes equipped with a strong reinsurance program; ample cash flow and liquidity; solid loss reserves and property casualty surplus; and the financial flexibility that comes from holding $5 billion of cash and marketable securities at our parent company.<\/p>\n “Our first-quarter 2025 combined ratio of 113.3% included 25 points related to natural catastrophe losses, three times our 10-year first-quarter average. Importantly, our property casualty current accident year combined ratio before catastrophe loss effects continued to improve. That 90.5% ratio would have been about 2 points better without the impact of the reinstatement premiums we paid to replenish our property catastrophe reinsurance program.<\/p>\n “The confidence we have in our pricing capabilities and segmentation strategy allows us to keep our focus on our long-term profitable growth plans even in the face of turbulent weather and volatile economic markets. With a deep understanding of the fundamentals of insurance, supported by sophisticated underwriting tools, our field marketing teams help the independent agents who partner with Cincinnati Insurance to find solutions for their clients.<\/p>\n “We were founded by four independent agents, and our goal remains to have the breadth of products and services agents need to serve their clients \u2013 even as those needs evolve. We’ve added excess and surplus lines solutions, eased access to the Lloyd’s of London market for our agencies and continue to expand our standard commercial and personal lines products. Our life insurance company rounds out these services.<\/p>\n “We again recorded double-digit growth in new business written premiums and strong renewal pricing, increasing total property casualty net written premiums by 11%. We believe we can continue growing premiums at a healthy pace throughout 2025.<\/p>\n “Downward pressure in the equity market contributed to a decline of less than 1% in book value per share at March 31 compared with year-end 2024. Despite this movement, our quarter-end equity portfolio still had more than $7 billion in appreciated value before taxes.<\/p>\n “We maintain a long-term perspective with our investment philosophy and aren’t swayed by periodic market swings. Our insurance business continues to provide cash that we invest in high-quality bonds and dividend-paying stocks. We are poised to further benefit from these purchases when the markets rebound.”<\/p>\n The post Cincinnati posts net loss of $90m in Q1\u201925<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Cincinnati Financial Corporation has reported a net loss of $90 million for the first quarter of 2025, compared with net income of $755 million for the same period a year earlier. The loss was driven in part by a $56 million after-tax reduction in the fair value of equity securities still held in Q1\u201925. The […]<\/p>\n","protected":false},"author":1,"featured_media":3415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3413"}],"collection":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=3413"}],"version-history":[{"count":3,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3413\/revisions"}],"predecessor-version":[{"id":3417,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3413\/revisions\/3417"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/3415"}],"wp:attachment":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=3413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=3413"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=3413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"http:\/\/calebdewey.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
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