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CINCINNATI - Cincinnati Financial Corporation (NASDAQ:CINF) shares rose 2.6% after the property and casualty insurer reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong underwriting improvements and robust investment income growth.
The company posted adjusted earnings of $1.97 per share for the second quarter, beating the analyst consensus of $1.41 by $0.56. Revenue reached $3.25 billion, well above the consensus estimate of $2.53 billion. The company’s property casualty combined ratio improved to 94.9% from 98.5% in the same quarter last year, reflecting better underwriting results.
Cincinnati Financial’s net written premiums grew 11% to $2.73 billion in the second quarter, fueled by price increases and premium growth initiatives. Investment income rose 18% to $285 million, with bond interest income jumping 24% YoY.
"I’m pleased with our overall second-quarter 2025 results. It was a solid quarter, showing the strength of our agent-centered strategy and the value of our long-term plans," said Stephen M. Spray, president and chief executive officer.
The company maintained underwriting discipline with commercial lines price increases near the high end of the mid-single-digit range, while personal lines homeowner prices increased in the low-double digit range. Despite higher catastrophe events continuing from the first quarter, the company’s current accident year combined ratio before catastrophe losses improved 3.1 percentage points to 85.1%.
Book value per share reached a new record high of $91.46 as of June 30, up 2.6% since the end of 2024. The company’s value creation ratio, which considers dividends and book value growth, was 4.6% for the first half of 2025.
"Our ample capital allows us to execute on our long-term strategies and, at the same time, pay dividends to shareholders," Spray added.
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