CINCINNATI, April 27, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Financial Highlights
(Dollars in millions, except per share data) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Revenue Data | |||||||||||
Earned premiums | $ | 1,456 | $ | 1,333 | 9 | ||||||
Investment income, net of expenses | 165 | 157 | 5 | ||||||||
Total revenues | (99) | 2,159 | nm | ||||||||
Income Statement Data | |||||||||||
Net income (loss) | $ | (1,226) | $ | 695 | nm | ||||||
Investment gains and losses, after-tax | (1,363) | 523 | nm | ||||||||
Non-GAAP operating income* | $ | 137 | $ | 172 | (20) | ||||||
Per Share Data (diluted) | |||||||||||
Net income (loss) | $ | (7.56) | $ | 4.22 | nm | ||||||
Investment gains and losses, after-tax | (8.40) | 3.17 | nm | ||||||||
Non-GAAP operating income* | $ | 0.84 | $ | 1.05 | (20) | ||||||
Book value | $ | 50.02 | $ | 52.88 | (5) | ||||||
Cash dividend declared | $ | 0.60 | $ | 0.56 | 7 | ||||||
Diluted weighted average shares outstanding | 162.2 | 164.6 | (1) | ||||||||
* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles. | |||||||||||
** Forward-looking statements and related assumptions are subject to the risks outlined in the company's safe harbor statement. |
Insurance Operations Highlights
Investment and Balance Sheet Highlights
Resilient Steven J. Johnston, president and chief executive officer, commented: "This COVID-19 pandemic is something none of us ever expected to experience. Our thoughts go out to all of those who are suffering personally and professionally as our country faces this new enemy.
"As insurance professionals we are in the business of planning for the unexpected. Our robust business continuity plans allowed us to quickly and seamlessly transition 95% of our headquarters associates to working from their homes. Our field associates, who work from their homes as standard practice, ensured that service levels remained high, supporting our agents and responding to policyholders. I thank all of our associates for their dedication and innovation over the past few weeks.
"Understanding the stress this puts on our policyholders, we are offering many options for relief: a 15% Stay-at-Home credit per policy in April and May for personal lines auto policyholders; pausing cancellations due to nonpayment of premium and waiving late fees until at least May 31 for personal and commercial policyholders; waiving restrictions on policyholders now performing delivery services in efforts to protect the wellbeing of your communities; waiving vacancy clauses for buildings temporarily closed due to the pandemic; providing credits, when requested, on commercial policies for vehicles not being used; and providing additional risk management advice to businesses considering adapting their operations to manufacture personal protective equipment. Additionally, on April 15 we paid a 60-cents-per-share dividend to shareholders, providing an additional source of much needed income.
"This spring also brought an active storm season, especially within our traditional Midwestern footprint. Our experienced and professional claims associates rose to the occasion, finding creative ways to settle claims while keeping themselves and our policyholders safe."
Experienced"The work we've done in pricing segmentation and product and geographic diversification continues to yield benefits. Our insurance operations produced a 98.5% combined ratio and $24 million of underwriting profit, even with a first-quarter catastrophe impact of 9.1 percentage points compared to a 10‑year historical average of 5.6 percentage points.
"Looking beyond the noise created by weather and reserve development, our underlying – or core – combined ratio improved 1.2 points compared with last year's first quarter to 91.5%.
"We maintained our trend of industry-leading growth, increasing net written premiums by 10% compared with the first quarter of 2019. New business from our agencies reached a new first-quarter record, growing 19% to $215 million. Renewal written premium growth continued with generally higher average renewal price increases for our commercial, personal and excess & surplus lines of business.
"Newer initiatives to diversify our premium base continue to support overall first-quarter 2020 net written premium growth: Cincinnati ReSM contributed 2%; Cincinnati Global Underwriting LtdSM contributed 1%; we wrote $101 million in premiums for our agency's high net worth personal lines clients; and our E&S homeowner product – launched last fall – reached nearly $1 million in net written premium."
Focused on the Future"We have the financial strength to answer the call of the many stakeholders who depend on us – our policyholders, shareholders, agents and associates. Even with the recent volatility of the stock market, our equity portfolio still holds $2.5 billion in appreciated value before taxes. And, our $11.3 billion bond portfolio covers our outstanding insurance liabilities, ensuring we can pay all that is due under our policy contracts.
"While we will evaluate each claim based on the specific facts and circumstances involved, our commercial property policies do not provide coverage for business interruption claims unless there is direct physical damage or loss to property. Because a virus does not produce direct physical damage or loss to property, no coverage exists for this peril.
"Some loss events, such as this global pandemic, are not insured because they are uninsurable due to their size and scope. Efforts to retroactively rewrite insurance contracts to add coverage are unconstitutional, threaten the ability of the insurance industry to pay covered claims and cannot be the solution. A crisis of this magnitude calls for bold solutions from our Federal government. We stand ready to do our part to support the families and businesses in our agents' communities, helping them to proactively manage risks and promptly paying covered claims with empathy and compassion."
Insurance Operations Highlights | |||||||||||
Consolidated Property Casualty Insurance Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Earned premiums | $ | 1,389 | $ | 1,267 | 10 | ||||||
Fee revenues | 3 | 3 | 0 | ||||||||
Total revenues | 1,392 | 1,270 | 10 | ||||||||
Loss and loss expenses | 930 | 790 | 18 | ||||||||
Underwriting expenses | 438 | 389 | 13 | ||||||||
Underwriting profit | $ | 24 | $ | 91 | (74) | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Loss and loss expenses | 66.9 | % | 62.3 | % | 4.6 | ||||||
Underwriting expenses | 31.6 | 30.7 | 0.9 | ||||||||
Combined ratio | 98.5 | % | 93.0 | % | 5.5 | ||||||
% Change | |||||||||||
Agency renewal written premiums | $ | 1,198 | $ | 1,130 | 6 | ||||||
Agency new business written premiums | 215 | 181 | 19 | ||||||||
Other written premiums | 105 | 70 | 50 | ||||||||
Net written premiums | $ | 1,518 | $ | 1,381 | 10 | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Current accident year before catastrophe losses | 59.9 | % | 62.0 | % | (2.1) | ||||||
Current accident year catastrophe losses | 9.4 | 5.6 | 3.8 | ||||||||
Prior accident years before catastrophe losses | (2.1) | (5.5) | 3.4 | ||||||||
Prior accident years catastrophe losses | (0.3) | 0.2 | (0.5) | ||||||||
Loss and loss expense ratio | 66.9 | % | 62.3 | % | 4.6 | ||||||
Current accident year combined ratio before catastrophe losses | 91.5 | % | 92.7 | % | (1.2) | ||||||
Commercial Lines Insurance Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Earned premiums | $ | 863 | $ | 810 | 7 | ||||||
Fee revenues | 1 | 1 | 0 | ||||||||
Total revenues | 864 | 811 | 7 | ||||||||
Loss and loss expenses | 608 | 481 | 26 | ||||||||
Underwriting expenses | 276 | 254 | 9 | ||||||||
Underwriting profit (loss) | $ | (20) | $ | 76 | nm | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Loss and loss expenses | 70.5 | % | 59.4 | % | 11.1 | ||||||
Underwriting expenses | 32.0 | 31.4 | 0.6 | ||||||||
Combined ratio | 102.5 | % | 90.8 | % | 11.7 | ||||||
% Change | |||||||||||
Agency renewal written premiums | $ | 842 | $ | 799 | 5 | ||||||
Agency new business written premiums | 154 | 120 | 28 | ||||||||
Other written premiums | (24) | (23) | (4) | ||||||||
Net written premiums | $ | 972 | $ | 896 | 8 | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Current accident year before catastrophe losses | 61.0 | % | 63.0 | % | (2.0) | ||||||
Current accident year catastrophe losses | 10.2 | 4.1 | 6.1 | ||||||||
Prior accident years before catastrophe losses | (0.3) | (6.9) | 6.6 | ||||||||
Prior accident years catastrophe losses | (0.4) | (0.8) | 0.4 | ||||||||
Loss and loss expense ratio | 70.5 | % | 59.4 | % | 11.1 | ||||||
Current accident year combined ratio before catastrophe losses | 93.0 | % | 94.4 | % | (1.4) | ||||||
Personal Lines Insurance Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Earned premiums | $ | 359 | $ | 344 | 4 | ||||||
Fee revenues | 1 | 1 | 0 | ||||||||
Total revenues | 360 | 345 | 4 | ||||||||
Loss and loss expenses | 231 | 250 | (8) | ||||||||
Underwriting expenses | 108 | 99 | 9 | ||||||||
Underwriting profit (loss) | $ | 21 | $ | (4) | nm | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Loss and loss expenses | 64.2 | % | 72.5 | % | (8.3) | ||||||
Underwriting expenses | 30.1 | 28.8 | 1.3 | ||||||||
Combined ratio | 94.3 | % | 101.3 | % | (7.0) | ||||||
% Change | |||||||||||
Agency renewal written premiums | $ | 294 | $ | 282 | 4 | ||||||
Agency new business written premiums | 34 | 35 | (3) | ||||||||
Other written premiums | (9) | (8) | (13) | ||||||||
Net written premiums | $ | 319 | $ | 309 | 3 | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Current accident year before catastrophe losses | 60.0 | % | 60.6 | % | (0.6) | ||||||
Current accident year catastrophe losses | 12.0 | 10.9 | 1.1 | ||||||||
Prior accident years before catastrophe losses | (6.5) | (1.4) | (5.1) | ||||||||
Prior accident years catastrophe losses | (1.3) | 2.4 | (3.7) | ||||||||
Loss and loss expense ratio | 64.2 | % | 72.5 | % | (8.3) | ||||||
Current accident year combined ratio before catastrophe losses | 90.1 | % | 89.4 | % | 0.7 | ||||||
Excess and Surplus Lines Insurance Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Earned premiums | $ | 78 | $ | 63 | 24 | ||||||
Fee revenues | 1 | 1 | 0 | ||||||||
Total revenues | 79 | 64 | 23 | ||||||||
Loss and loss expenses | 45 | 33 | 36 | ||||||||
Underwriting expenses | 25 | 20 | 25 | ||||||||
Underwriting profit | $ | 9 | $ | 11 | (18) | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Loss and loss expenses | 57.4 | % | 51.5 | % | 5.9 | ||||||
Underwriting expenses | 31.7 | 32.0 | (0.3) | ||||||||
Combined ratio | 89.1 | % | 83.5 | % | 5.6 | ||||||
% Change | |||||||||||
Agency renewal written premiums | $ | 62 | $ | 49 | 27 | ||||||
Agency new business written premiums | 27 | 26 | 4 | ||||||||
Other written premiums | (4) | (4) | 0 | ||||||||
Net written premiums | $ | 85 | $ | 71 | 20 | ||||||
Ratios as a percent of earned premiums: | Pt. Change | ||||||||||
Current accident year before catastrophe losses | 55.7 | % | 55.5 | % | 0.2 | ||||||
Current accident year catastrophe losses | 0.5 | 0.3 | 0.2 | ||||||||
Prior accident years before catastrophe losses | 0.7 | (4.2) | 4.9 | ||||||||
Prior accident years catastrophe losses | 0.5 | (0.1) | 0.6 | ||||||||
Loss and loss expense ratio | 57.4 | % | 51.5 | % | 5.9 | ||||||
Current accident year combined ratio before catastrophe losses | 87.4 | % | 87.5 | % | (0.1) | ||||||
Life Insurance Subsidiary Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Term life insurance | $ | 47 | $ | 45 | 4 | ||||||
Universal life insurance | 8 | 10 | (20) | ||||||||
Other life insurance, annuity, and disability income products | 12 | 11 | 9 | ||||||||
Earned premiums | 67 | 66 | 2 | ||||||||
Investment income, net of expenses | 39 | 38 | 3 | ||||||||
Investment gains and losses, net | (32) | (1) | nm | ||||||||
Fee revenues | — | 1 | (100) | ||||||||
Total revenues | 74 | 104 | (29) | ||||||||
Contract holders' benefits incurred | 73 | 70 | 4 | ||||||||
Underwriting expenses incurred | 18 | 22 | (18) | ||||||||
Total benefits and expenses | 91 | 92 | (1) | ||||||||
Net income (loss) before income tax | (17) | 12 | nm | ||||||||
Income tax provision (benefit) | (4) | 2 | nm | ||||||||
Net income (loss) of the life insurance subsidiary | $ | (13) | $ | 10 | nm | ||||||
Investment and Balance Sheet Highlights | |||||||||||
Investments Results | |||||||||||
(Dollars in millions) | Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | |||||||||
Investment income, net of expenses | $ | 165 | $ | 157 | 5 | ||||||
Investment interest credited to contract holders' | (26) | (24) | (8) | ||||||||
Investment gains and losses, net | (1,725) | 663 | nm | ||||||||
Investments profit (loss) | $ | (1,586) | $ | 796 | nm | ||||||
Investment income: | |||||||||||
Interest | $ | 112 | $ | 111 | 1 | ||||||
Dividends | 53 | 46 | 15 | ||||||||
Other | 3 | 3 | 0 | ||||||||
Less investment expenses | 3 | 3 | 0 | ||||||||
Investment income, pretax | 165 | 157 | 5 | ||||||||
Less income taxes | 26 | 24 | 8 | ||||||||
Total investment income, after-tax | $ | 139 | $ | 133 | 5 | ||||||
Investment returns: | |||||||||||
Average invested assets plus cash and cash equivalents | $ | 19,010 | $ | 17,924 | |||||||
Average yield pretax | 3.47 | % | 3.50 | % | |||||||
Average yield after-tax | 2.92 | 2.97 | |||||||||
Effective tax rate | 15.5 | 15.5 | |||||||||
Fixed-maturity returns: | |||||||||||
Average amortized cost | $ | 11,091 | $ | 10,689 | |||||||
Average yield pretax | 4.04 | % | 4.15 | % | |||||||
Average yield after-tax | 3.37 | 3.46 | |||||||||
Effective tax rate | 16.6 | 16.7 | |||||||||
(Dollars in millions) | Three months ended March 31, | |||||||
2020 | 2019 | |||||||
Investment gains and losses on equity securities sold, net | $ | (4) | $ | 4 | ||||
Unrealized gains and losses on equity securities still held, net | (1,649) | 652 | ||||||
Investment gains and losses on fixed-maturity securities, net | (75) | 2 | ||||||
Other | 3 | 5 | ||||||
Subtotal - investment gains and losses reported in net income | (1,725) | 663 | ||||||
Change in unrealized investment gains and losses - fixed maturities | (324) | 242 | ||||||
Total | $ | (2,049) | $ | 905 | ||||
Balance Sheet Highlights | ||||||||
(Dollars in millions, except share data) | At March 31, | At December 31, | ||||||
2020 | 2019 | |||||||
Total investments | $ | 17,876 | $ | 19,746 | ||||
Total assets | 23,367 | 25,408 | ||||||
Short-term debt | 114 | 39 | ||||||
Long-term debt | 788 | 788 | ||||||
Shareholders' equity | 8,042 | 9,864 | ||||||
Book value per share | 50.02 | 60.55 | ||||||
Debt-to-total-capital ratio | 10.1 | % | 7.7 | % | ||||
For additional information or to register for our conference call webcast, please visit cinfin.com/investors.
About Cincinnati FinancialCincinnati Financial Corporation offers primarily business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.
Mailing Address: | Street Address: |
P.O. Box 145496 | 6200 South Gilmore Road |
Cincinnati, Ohio 45250-5496 | Fairfield, Ohio 45014-5141 |
Safe Harbor StatementThis is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2019 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 35.
Factors that could cause or contribute to such differences include, but are not limited to:
Further, the company's insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.
* * *
Cincinnati Financial Corporation | ||||||||
Condensed Consolidated Balance Sheets and Statements of Income (unaudited) | ||||||||
(Dollars in millions) | March 31, | December 31, | ||||||
2020 | 2019 | |||||||
Assets | ||||||||
Investments | $ | 17,876 | $ | 19,746 | ||||
Cash and cash equivalents | 486 | 767 | ||||||
Premiums receivable | 1,900 | 1,777 | ||||||
Reinsurance recoverable | 567 | 610 | ||||||
Deferred policy acquisition costs | 827 | 774 | ||||||
Other assets | 1,711 | 1,734 | ||||||
Total assets | $ | 23,367 | $ | 25,408 | ||||
Liabilities | ||||||||
Insurance reserves | $ | 9,067 | $ | 8,982 | ||||
Unearned premiums | 2,922 | 2,788 | ||||||
Deferred income tax | 660 | 1,079 | ||||||
Long-term debt and lease obligations | 846 | 846 | ||||||
Other liabilities | 1,830 | 1,849 | ||||||
Total liabilities | 15,325 | 15,544 | ||||||
Shareholders' Equity | ||||||||
Common stock and paid-in capital | 1,697 | 1,703 | ||||||
Retained earnings | 7,932 | 9,257 | ||||||
Accumulated other comprehensive income | 204 | 448 | ||||||
Treasury stock | (1,791) | (1,544) | ||||||
Total shareholders' equity | 8,042 | 9,864 | ||||||
Total liabilities and shareholders' equity | $ | 23,367 | $ | 25,408 | ||||
(Dollars in millions, except per share data) | Three months ended March 31, | |||||||
2020 | 2019 | |||||||
Revenues | ||||||||
Earned premiums | $ | 1,456 | $ | 1,333 | ||||
Investment income, net of expenses | 165 | 157 | ||||||
Investment gains and losses, net | (1,725) | 663 | ||||||
Other revenues | 5 | 6 | ||||||
Total revenues | (99) | 2,159 | ||||||
Benefits and Expenses | ||||||||
Insurance losses and contract holders' benefits | 1,003 | 860 | ||||||
Underwriting, acquisition and insurance expenses | 456 | 411 | ||||||
Interest expense | 13 | 13 | ||||||
Other operating expenses | 5 | 8 | ||||||
Total benefits and expenses | 1,477 | 1,292 | ||||||
Income (Loss) Before Income Taxes | (1,576) | 867 | ||||||
Provision (Benefit) for Income Taxes | (350) | 172 | ||||||
Net Income (Loss) | $ | (1,226) | $ | 695 | ||||
Per Common Share: | ||||||||
Net income (loss)—basic | $ | (7.56) | $ | 4.27 | ||||
Net income (loss)—diluted | (7.56) | 4.22 | ||||||
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures(See attached tables for reconciliations; additional prior-period reconciliations available at cinfin.com/investors.)
Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners'(NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
Management uses certain non-GAAP financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management's control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
Cincinnati Financial Corporation | ||||||||
Net Income Reconciliation | ||||||||
(Dollars in millions, except per share data) | Three months ended March 31, | |||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (1,226) | $ | 695 | ||||
Less: | ||||||||
Investment gains and losses, net | (1,725) | 663 | ||||||
Income tax on investment gains and losses | 362 | (140) | ||||||
Investment gains and losses, after-tax | (1,363) | 523 | ||||||
Non-GAAP operating income | $ | 137 | $ | 172 | ||||
Diluted per share data: | ||||||||
Net income (loss) | $ | (7.56) | $ | 4.22 | ||||
Less: | ||||||||
Investment gains and losses, net | (10.63) | 4.02 | ||||||
Income tax on investment gains and losses | 2.23 | (0.85) | ||||||
Investment gains and losses, after-tax | (8.40) | 3.17 | ||||||
Non-GAAP operating income | $ | 0.84 | $ | 1.05 | ||||
Life Insurance Reconciliation | ||||||||
(Dollars in millions) | Three months ended March 31, | |||||||
2020 | 2019 | |||||||
Net income (loss) of the life insurance subsidiary | $ | (13) | $ | 10 | ||||
Investment gains and losses, net | (32) | (1) | ||||||
Income tax on investment gains and losses | (7) | — | ||||||
Non-GAAP operating income | 12 | 11 | ||||||
Investment income, net of expenses | (39) | (38) | ||||||
Investment income credited to contract holders' | 26 | 24 | ||||||
Income tax excluding tax on investment gains and losses, net | 3 | 2 | ||||||
Life insurance segment profit (loss) | $ | 2 | $ | (1) | ||||
Property Casualty Insurance Reconciliation | ||||||||||||||||||||||||
(Dollars in millions) | Three months ended March 31, 2020 | |||||||||||||||||||||||
Consolidated | Commercial | Personal | E&S | Other* | ||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||
Written premiums | $ | 1,518 | $ | 972 | $ | 319 | $ | 85 | $ | 142 | ||||||||||||||
Unearned premiums change | (129) | (109) | 40 | (7) | (53) | |||||||||||||||||||
Earned premiums | $ | 1,389 | $ | 863 | $ | 359 | $ | 78 | $ | 89 | ||||||||||||||
Underwriting profit (loss) | 24 | (20) | 21 | 9 | 14 | |||||||||||||||||||
(Dollars in millions) | Three months ended March 31, 2019 | |||||||||||||||||||||||
Consolidated | Commercial | Personal | E&S | Other* | ||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||
Written premiums | $ | 1,381 | $ | 896 | $ | 309 | $ | 71 | $ | 105 | ||||||||||||||
Unearned premiums change | (114) | (86) | 35 | (8) | (55) | |||||||||||||||||||
Earned premiums | $ | 1,267 | $ | 810 | $ | 344 | $ | 63 | $ | 50 | ||||||||||||||
Underwriting profit (loss) | $ | 91 | $ | 76 | $ | (4) | $ | 11 | $ | 8 | ||||||||||||||
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on dollar amounts in thousands. *Included in Other are the results of Cincinnati Re and Cincinnati Global, acquired on February 28, 2019. |
Cincinnati Financial Corporation | ||||||||
Other Measures | ||||||||
| ||||||||
Value Creation Ratio Calculations | ||||||||
(Dollars are per share) | Three months ended March 31, | |||||||
2020 | 2019 | |||||||
Value creation ratio: | ||||||||
End of period book value* | $ | 50.02 | $ | 52.88 | ||||
Less beginning of period book value | 60.55 | 48.10 | ||||||
Change in book value | (10.53) | 4.78 | ||||||
Dividend declared to shareholders | 0.60 | 0.56 | ||||||
Total value creation | $ | (9.93) | $ | 5.34 | ||||
Value creation ratio from change in book value** | (17.4) | % | 9.9 | % | ||||
Value creation ratio from dividends declared to shareholders*** | 1.0 | 1.2 | ||||||
Value creation ratio | (16.4) | % | 11.1 | % | ||||
* Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding | ||||||||
** Change in book value divided by the beginning of period book value | ||||||||
*** Dividend declared to shareholders divided by beginning of period book value |
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SOURCE Cincinnati Financial Corporation