Cincinnati Financial Corporation posted massive losses in its fourth-quarter 2024 net income.
The company posted $405 million during the period, or $2.56 per share, a far call from $1.183 billion, or $7.50 per share, in the same period of 2023. The decline includes a $107 million after-tax decrease in the fair value of equity securities still held.
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.
Cincinnati Financial said that the $778 million decrease in fourth-quarter net income was driven by a $916 million decline in after-tax net investment gains, which offset a $79 million increase in after-tax property casualty underwriting profit and a $33 million rise in net investment income.
The company’s property casualty combined ratio also saw improvements, down to 84.7% in the fourth quarter of 2024, compared to 87.5% in the prior-year period. For the full year, the combined ratio stood at 93.4%, with net written premiums increasing 15%.
Fourth-quarter net written premiums rose 17%, driven by price increases, premium growth initiatives, and higher insured exposures.
Cincinnati Financial also reported $382 million in new property casualty business written premiums for the quarter, with agencies appointed since the beginning of 2023 contributing $47 million, or 12%, of the total.
The company’s life insurance subsidiary recorded $28 million in net income for the quarter, with term life insurance earned premiums growing 4%. Full-year non-GAAP operating income rose 18%.
Stephen M. Spray (pictured above), president and chief executive officer, confirmed that the company’s first-quarter results for this year will reflect the impact of the California wildfires. He did, however, point to the company’s 2024 year-end results as a success following Cincinnati Financial’s initiatives.
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