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![]() | The Cincinnati Insurance Company n The Cincinnati Indemnity Company The Cincinnati Casualty Company n The Cincinnati Specialty Underwriters Insurance Company The Cincinnati Life Insurance Company n CFC Investment Company n CSU Producer Resources Inc. Cincinnati Global Underwriting Ltd. n Cincinnati Global Underwriting Agency Ltd. |
• | Third-quarter 2019 net income of $248 million, or $1.49 per share, compared with $553 million, or $3.38 per share, in the third quarter of 2018. |
• | $42 million or 31% increase in non-GAAP operating income* to $179 million, or $1.08 per share, compared with $137 million, or 84 cents per share, in the third quarter of last year. |
• | $305 million decrease in third-quarter 2019 net income, primarily due to the after-tax net effect of a $291 million decrease in net investment gains and $56 million of other non-recurring items, partially offset by a $32 million increase in after-tax property casualty underwriting income. |
• | $57.37 book value per share at September 30, 2019, a record high, up $9.27 or 19.3% since year-end. |
• | 22.8% value creation ratio for the first nine months of 2019, compared with 5.0% for the 2018 period. |
(Dollars in millions, except per share data) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Revenue Data | ||||||||||||||||||||
Earned premiums | $ | 1,446 | $ | 1,298 | 11 | $ | 4,163 | $ | 3,852 | 8 | ||||||||||
Investment income, net of expenses | 161 | 154 | 5 | 478 | 458 | 4 | ||||||||||||||
Total revenues | 1,700 | 1,915 | (11) | 5,772 | 4,697 | 23 | ||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net income | $ | 248 | $ | 553 | (55) | $ | 1,371 | $ | 739 | 86 | ||||||||||
Investment gains and losses, after-tax | 69 | 360 | (81) | 880 | 293 | 200 | ||||||||||||||
Other non-recurring items | — | 56 | nm | — | 56 | nm | ||||||||||||||
Non-GAAP operating income* | $ | 179 | $ | 137 | 31 | $ | 491 | $ | 390 | 26 | ||||||||||
Per Share Data (diluted) | ||||||||||||||||||||
Net income | $ | 1.49 | $ | 3.38 | (56) | $ | 8.30 | $ | 4.49 | 85 | ||||||||||
Investment gains and losses, after-tax | 0.41 | 2.20 | (81) | 5.32 | 1.78 | 199 | ||||||||||||||
Other non-recurring items | — | 0.34 | nm | — | 0.34 | nm | ||||||||||||||
Non-GAAP operating income* | $ | 1.08 | $ | 0.84 | 29 | $ | 2.98 | $ | 2.37 | 26 | ||||||||||
Book value | $ | 57.37 | $ | 51.22 | 12 | |||||||||||||||
Cash dividend declared | $ | 0.56 | $ | 0.53 | 6 | $ | 1.68 | $ | 1.59 | 6 | ||||||||||
Diluted weighted average shares outstanding | 165.6 | 164.0 | 1 | 165.1 | 164.7 | 0 | ||||||||||||||
* | 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. |
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Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Cincinnati Financial Corp.
Cincinnati Financial Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:
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We continue to monitor new losses and case reserve increases greater than $1 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses.
Cincinnati Financial Corporation Third-Quarter 2019 10-QPage 47 We continue to monitor new losses and case reserve increases greater than $1 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses.
Cincinnati Financial Corporation Third-Quarter 2019 10-QPage 50 We continue to monitor new losses and case reserve increases greater than $1 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses.
Case loss reserves for losses increased $222 million, IBNR loss reserves increased by $105 million and loss expense reserves increased by $24 million.
Combined - Aggregate net recovery up to $50 million after retaining the first $125 million of each loss Cincinnati Re-only - Aggregate net recovery up to $8 million after retaining the first $45 million in aggregate Direct business-only in certain Western states - Aggregate net recovery up to $31 million for: Earthquake: After retaining the first $20 million of each loss Brushfire or wildfire: After retaining the first $40 million of each loss The following table shows consolidated property casualty insurance catastrophe losses and loss expenses incurred, net of reinsurance, as well as the effect of loss development on prior period catastrophe events.
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Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Cincinnati Financial Corp provided additional information to their SEC Filing as exhibits
Ticker: CINF
CIK: 20286
Form Type: 10-Q Quarterly Report
Accession Number: 0000020286-19-000065
Submitted to the SEC: Fri Oct 25 2019 3:37:03 AM EST
Accepted by the SEC: Fri Oct 25 2019
Period: Monday, September 30, 2019
Industry: Fire Marine And Casualty Insurance