CINCINNATI - Cincinnati Financial Corporation (NASDAQ:CINF) today announced a robust start to 2024 with first-quarter earnings surpassing analyst expectations. The company reported adjusted earnings per share (EPS) of $1.72, which is $0.08 higher than the consensus estimate of $1.64. Total revenue for the quarter reached $2.94 billion, significantly exceeding the $2.12 billion analyst forecast.
The company's financial success in the first quarter is attributed to a nearly doubled non-GAAP operating income of $272 million, up 93% from the previous year's $141 million. Earned premiums saw an 8% increase to $2.07 billion, while investment income, net of expenses, climbed by 17% to $245 million. Overall, total revenues soared by 31% compared to the same period last year.
Cincinnati Financial also reported a substantial increase in net income to $755 million, or $4.78 per share, compared with $225 million, or $1.42 per share, in the first quarter of 2023. This marked a 236% surge, primarily driven by a $399 million increase in net investment gains and a $111 million rise in after-tax property casualty underwriting income.
In the insurance operations, the company achieved an 11% growth in first-quarter net written premiums, including significant contributions from new business written premiums, which were up by 38%. The property casualty combined ratio improved to 93.6%, down from 100.7% in the previous year, indicating a more profitable underwriting performance.
Steven J. Johnston, chairman and CEO, commented on the results: "Our strong start to 2024 reflects nearly doubled non-GAAP operating income from last year's first quarter, driven by steady contributions from our underwriting and investment operations." He also highlighted the improved combined ratio and the company's focus on balancing growth with profitability.
Despite the positive earnings news, Cincinnati Financial's stock experienced a modest uptick of +1.32% following the earnings release, which suggests a cautiously optimistic market response.
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