Cincinnati Financial’s missed Q2 results reflect lower underwriting profit (NASDAQ:CINF)
Cincinnati Financial (NASDAQ: CINF) Wednesday’s second-quarter earnings beat Wall Street expectations as the property and casualty insurer’s underwriting profit fell into negative territory on higher catastrophe losses from a year earlier.
“Slowed activity for many businesses, reduced conduct and court closures, which have delayed progress on some contentious insurance claims, have all increased the uncertainty of ultimate losses,” said CEO and Chairman Steven J. Johnston. several sectors of activity are superior to those of recent periods.”
Adjusted operating profit of $0.65 per share was below analysts’ average estimate of $1.04 and fell $1.79 in the year-ago quarter.
Similarly, earned premiums of $1.8 billion missed the consensus of $1.9 billion and gained $1.6 billion in the second quarter of last year.
Underwriting loss of $52m vs. gain of $221m in Q2 a year ago.
The combined ratio for Q2 of 103.2% increased from 85.5% in Q2 2021.
As a percentage of premiums earned, current accident year pre-catastrophe claims of 62.7% in Q2 increased from 56.8% in Q2 2021.
In May, Cincinnati Financial declared a quarterly dividend of $0.69 per share.