Key facts
- Cincinnati Financial's second-quarter profit declined due to increased catastrophe losses.
- Earned premiums rose 6% to $2.64 billion.
- The property-casualty combined ratio increased to 100.8% from 94.9%.
- Catastrophe losses amounted to $61 million after tax.
- Adjusted operating income was $224 million ($1.43 per share), down from $311 million ($1.97 per share) a year prior.
Cincinnati Financial reported a decrease in second-quarter profit, primarily driven by higher catastrophe losses. The insurer's earned premiums saw a 6% increase to $2.64 billion compared to the previous year.
CEO Stephen M. Spray attributed the rise in the company's combined ratio to elevated catastrophe losses, particularly noting that Ohio experienced weather events leading to losses nearly four times higher than the 5-year second-quarter average for the state. The property-casualty combined ratio consequently rose to 100.8%, up from 94.9% in the same period last year. A combined ratio exceeding 100% signifies that the insurer paid out more in claims than it collected in premiums.
The company incurred $61 million in after-tax catastrophe losses. Adjusted operating income for the quarter ended June 30 was $224 million, or $1.43 per share, a decline from $311 million, or $1.97 per share, reported a year earlier.