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Classified in: Business, Covid-19 virus
Subject: DIV

Cincinnati Financial Corporation Announces Preliminary Results and Increased Regular Quarterly Cash Dividend

CINCINNATI, Jan. 27, 2023 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that its consolidated fourth-quarter results are expected to include pretax catastrophe losses of approximately $141 million ? representing an impact on the fourth-quarter 2022 combined ratio of approximately 7.8 percentage points, based on estimated property casualty earned premiums. The company's 5?year historical average contribution of catastrophe losses to the combined ratio is 3.9 percentage points for the fourth quarter. 

The catastrophe loss estimate includes $161 million from Winter Storm Elliott, net of reinsurance and excluding any effects of reinstatement premiums assumed or ceded, in addition to less severe storms and favorable loss reserve development on previous catastrophe events, primarily ones that occurred in 2022. The estimate for total fourth-quarter 2022 catastrophe losses incurred includes approximately $100 million for the commercial lines insurance segment; $38 million for the personal lines insurance segment; $2 million for the excess and surplus lines insurance segment and $1 million in total for Cincinnati Re® and Cincinnati Global Underwriting LtdSM

Estimated losses and expenses from catastrophe-related claims are expected to bring the company's fourth-quarter 2022 property casualty combined ratio to approximately 95%. The combined ratio before catastrophe losses for the quarter was approximately 2.5 percentage points better than that ratio for the first nine months of 2022 but continued to reflect increased uncertainty of estimated ultimate losses, due in part to elevated paid losses reflecting economic or other forms of inflation. Net written premium growth is estimated to be approximately 10% for the quarter. 

A rising stock market helped fourth-quarter 2022 earnings as net income is estimated to be between $6.37 and $6.43 per share, with non-GAAP operating income ranging from $1.24 to $1.30 on a per share basis. To reconcile net income to operating income, net investment gains and losses on an after-tax basis is removed. 

The company also announced that at today's regular meeting, the board of directors declared a 75-cents-per-share regular quarterly cash dividend, increasing by 9% from the previous 69-cents-per-share dividend paid on January 13, 2023. The dividend is payable April 14, 2023, to shareholders of record as of March 17, 2023. 

Steven J. Johnston, chairman and chief executive officer, commented, "We keep a long-term view when managing our business and creating value for shareholders of Cincinnati Financial. Increasing the dividend signals the board's confidence in our ability to maintain the profitable growth of our insurance business while also continuing to return capital to shareholders.

"Cincinnati Financial shareholders have consistently benefited from increased dividends in each of the past 62 years, and this board action lays the foundation for continuing that record for a 63rd year."

The unaudited loss estimates and other data presented in this release is preliminary, based upon management estimates and subject to the completion of the company's procedures for the preparation of its quarterly financial statements. As a result, further adjustments may be made between now and the time financial results for the quarter are finalized.  

Cincinnati Financial plans to report final results for fourth-quarter 2022 on Monday, February 6, after the close of regular trading on the Nasdaq Stock Market. A conference call to discuss the results will be held at 11 a.m. ET on Tuesday, February 7, with a live, audio-only internet broadcast available at cinfin.com/investors. 

About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance 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 Statement
This 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 2021 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 32.

Factors that could cause or contribute to such differences include, but are not limited to:

Further, our 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. We also are subject to public and regulatory initiatives that can affect the market value for our 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 logo. (PRNewsFoto/Cincinnati Financial Corporation) (PRNewsFoto/CINCINNATI FINANCIAL CORPORATION)


SOURCE Cincinnati Financial Corporation

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News published on 27 january 2023 at 16:52 and distributed by: