Cincinnati Financial Corporation reported a net loss of $90 million, or $0.57 per share, for the first quarter of 2025, compared with net income of $755 million, or $4.78 per share, for the same period in 2024.
The company cited a $56 million after-tax reduction in the fair value of equity securities held as a factor in the result.
The company's non-GAAP operating loss for the quarter was $37 million, or $0.24 per share, compared with an operating income of $272 million, or $1.72 per share, in the first quarter of 2024. Cincinnati Financial said the $309 million decrease was mainly attributed to a $356 million increase in after-tax catastrophe losses.
The $845 million decline in net income year over year primarily reflects the combined effect of a $536 million decrease in net investment gains and the rise in catastrophe losses.
Stephen M. Spray (pictured above), president and chief executive officer, said the Cincinnati Insurance Companies were prepared for the unprecedented losses policyholders suffered from wildfires in California and spring storms affecting 21 states.
Despite the losses, Spray said that the company’s capital and risk management strategies, developed over 75 years, provided a strong foundation to respond to the catastrophes.
In the previous, Cincinnati also weathered massive losses with the company posting $405 million during the period, a far call from $1.183 billion it reported in Q4 2023.
However, the company did well for the full year, with its net income reaching $2.292 billion, or $14.53 per share, compared to $1.843 billion, or $11.66 per share, in 2023.
As of March 31, book value per share stood at $87.78, down $1.33 from the end of 2024. The value creation ratio for the first three months of 2025 was negative 0.5%, compared to a positive 5.9% for the same period last year.
Within its insurance operations, Cincinnati Financial reported a first-quarter 2025 property casualty combined ratio of 113.3%, up from 93.6% a year earlier. Net written premiums grew by 11% in the quarter, driven by price increases, premium growth initiatives, and higher insured exposures.
New business written premiums in property casualty rose 11% to $383 million, with agencies appointed since the start of 2024 contributing $26 million, or 7% of the total.
The company's life insurance subsidiary posted net income of $21 million for the quarter, up $2 million compared to the first quarter of 2024. Life insurance earned premiums grew by 1% over the same period.
Spray emphasized that Cincinnati Financial maintains a long-term investment philosophy, focusing on high-quality bonds and dividend-paying stocks, and remains positioned to benefit from market rebounds in the future.
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