CINCINNATI, April 28, 2021 /PRNewswire/ -- Cincinnati
Financial Corporation (Nasdaq: CINF) today reported:
- First-quarter 2021 net income of $620
million, or $3.82 per share,
compared with a net loss of $1.226
billion, or $7.56 per share,
in the first quarter of 2020, after recognizing a $385 million first-quarter 2021 after-tax
increase in the fair value of equity securities still held.
- $85 million or 62% increase in
non-GAAP operating income* to $222
million, or $1.37 per share,
compared with $137 million, or
84 cents per share, in the first
quarter of last year.
- $1.846 billion increase in
first-quarter 2021 net income, primarily due to the after-tax net
effect of a $1.761 billion increase
in net investment gains and an $86
million increase in after-tax property casualty underwriting
income.
- $69.16 book value per share at
March 31, 2021, up $2.12 since year-end.
- 4.1% value creation ratio for the first three months of 2021,
compared with negative 16.4% for the same period of 2020.
Financial Highlights
(Dollars in millions,
except per share data)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Revenue
Data
|
|
|
|
|
|
|
|
Earned
premiums
|
|
$
|
1,544
|
|
|
$
|
1,456
|
|
|
6
|
|
Investment income, net of expenses
|
|
174
|
|
|
165
|
|
|
5
|
|
Total
revenues
|
|
2,227
|
|
|
(99)
|
|
|
nm
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
$
|
620
|
|
|
$
|
(1,226)
|
|
|
nm
|
|
Investment gains and losses, after-tax
|
|
398
|
|
|
(1,363)
|
|
|
nm
|
|
Non-GAAP
operating income*
|
|
$
|
222
|
|
|
$
|
137
|
|
|
62
|
|
Per Share Data
(diluted)
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
$
|
3.82
|
|
|
$
|
(7.56)
|
|
|
nm
|
|
Investment gains and losses, after-tax
|
|
2.45
|
|
|
(8.40)
|
|
|
nm
|
|
Non-GAAP
operating income*
|
|
$
|
1.37
|
|
|
$
|
0.84
|
|
|
63
|
|
|
|
|
|
|
|
|
|
Book
value
|
|
$
|
69.16
|
|
|
$
|
50.02
|
|
|
38
|
|
Cash
dividend declared
|
|
$
|
0.63
|
|
|
$
|
0.60
|
|
|
5
|
|
Diluted
weighted average shares outstanding
|
|
162.5
|
|
|
162.2
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
*
|
The Definitions of
Non-GAAP Information and Reconciliation to Comparable GAAP
Measures
section defines and reconciles measures presented in this release
that are not based on U.S.
Generally Accepted Accounting Principles.
|
|
Forward-looking
statements and related assumptions are subject to the risks
outlined in the
company's safe harbor statement.
|
Insurance Operations Highlights
- 91.2% first-quarter 2021 property casualty combined ratio,
improved from 98.5% for the first quarter of 2020.
- 12% growth in first-quarter net written premiums, reflecting
price increases and premium growth initiatives.
- $220 million first-quarter 2021
property casualty new business written premiums, up 2%. Agencies
appointed since the beginning of 2020 contributed $11 million or 5% of total new business written
premiums.
- $10 million first-quarter 2021
life insurance subsidiary net income, up $23
million from the first quarter of 2020, and 9% growth in
first-quarter 2021 term life insurance earned premiums.
Investment and Balance Sheet Highlights
- 5% or $9 million increase in
first-quarter 2021 pretax investment income, including a 9%
increase for stock portfolio dividends and a 5% increase for bond
interest income.
- Three-month increase of 2% in fair value of total investments
at March 31, 2021, including a 6%
increase for the stock portfolio and a decrease of less than 1% for
the bond portfolio.
- $3.959 billion parent company
cash and marketable securities at March 31,
2021, up 5% from year-end 2020.
Focused on Service
Steven J.
Johnston, chairman, president and CEO, commented: "Severe
winter weather impacted communities from Washington state to the East Coast, and our
claims representatives were there, delivering fast and empathetic
claims service.
"In Texas alone, we're assisting more than 600 primary property
casualty policyholders, preparing to pay more than $50 million
to help restore lives and livelihoods. Altogether, we experienced
nearly $150 million in catastrophe
losses in the first quarter of 2021, contributing 10.4 points to
our combined ratio, considerably higher than our first-quarter
10-year average of 6.3 points.
"Despite those elevated catastrophe losses, we achieved our best
first-quarter combined ratio result in eight years. Producing a
91.2% combined ratio demonstrates the power of our initiatives to
balance growth with profitability through pricing segmentation and
product and geographic diversification. First-quarter underwriting
profit grew $109 million compared to
the first quarter a year ago.
"Our current accident year combined ratio before catastrophe
losses, which removes much of the variability caused by
catastrophes and reserve development, also improved 5.3 points
compared with last year's first quarter to a satisfactory 86.2%.
Contributing to that good result was a 3-point improvement in our
underwriting expenses due mainly to a few unusual items such as
lower levels of business travel spending and uncollectible
premiums."
Achieving Targeted Growth
"Property casualty net
written premiums grew 12% for the first quarter compared with the
same quarter of 2020. Our standard commercial lines and
personal lines policies continued to average renewal price
increases at percentages in the mid-single-digit range. Excess
and surplus lines policy pricing strengthened to average renewal
price increases at percentages in the high-single-digit range.
"Agents continued to respond favorably to the increased
availability of pricing segmentation through The Cincinnati
Casualty Company and our excess and surplus lines homeowner
policies, growing personal lines new business written premiums by
35% over the same period of 2020. Our reinsurance division,
Cincinnati Re®, also experienced another strong quarter
of growth, contributing 6% to the growth rate for total property
casualty net written premiums.
"Our life insurance subsidiary saw a 3% increase in earned
premiums in the first quarter of 2021 compared with 2020, including
a 9% increase for term life insurance, our largest life insurance
product line."
Financial Strength with Flexibility to Reward
Shareholders
"Consolidated cash and total investments
topped $22 billion while we prudently
added to insurance reserves that in total reached nearly
$10 billion. Book value per share
rose to $69.16 driven by the
contribution of our insurance operations and the strength of our
investment portfolio. This ample capital allows us to execute on
our long-term strategies and, at the same time, continue to pay
dividends to shareholders through the normal variability of
investment and insurance markets.
"In January, the board of directors expressed its confidence in
our financial strength by again raising the cash dividend. Our
value creation ratio, which considers those dividends as well as
growth in book value, was 4.1% for the first quarter, on track to
meet our annual average target of 10% to 13%."
Insurance
Operations Highlights
|
|
Consolidated
Property Casualty Insurance Results
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Earned
premiums
|
|
$
|
1,475
|
|
|
$
|
1,389
|
|
|
6
|
|
|
Fee
revenues
|
|
2
|
|
|
3
|
|
|
(33)
|
|
|
Total
revenues
|
|
1,477
|
|
|
1,392
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
expenses
|
|
923
|
|
|
930
|
|
|
(1)
|
|
|
Underwriting
expenses
|
|
421
|
|
|
438
|
|
|
(4)
|
|
|
Underwriting profit
|
|
$
|
133
|
|
|
$
|
24
|
|
|
454
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Loss and loss
expenses
|
|
62.6
|
%
|
|
66.9
|
%
|
|
(4.3)
|
|
|
Underwriting
expenses
|
|
28.6
|
|
|
31.6
|
|
|
(3.0)
|
|
|
Combined ratio
|
|
91.2
|
%
|
|
98.5
|
%
|
|
(7.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
Agency renewal
written premiums
|
|
$
|
1,276
|
|
|
$
|
1,198
|
|
|
7
|
|
|
Agency new business
written premiums
|
|
220
|
|
|
215
|
|
|
2
|
|
|
Other written
premiums
|
|
197
|
|
|
105
|
|
|
88
|
|
|
Net
written premiums
|
|
$
|
1,693
|
|
|
$
|
1,518
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Current accident year before
catastrophe losses
|
|
57.6
|
%
|
|
59.9
|
%
|
|
(2.3)
|
|
|
Current accident year
catastrophe losses
|
|
12.4
|
|
|
9.4
|
|
|
3.0
|
|
|
Prior accident years before
catastrophe losses
|
|
(5.4)
|
|
|
(2.1)
|
|
|
(3.3)
|
|
|
Prior accident years
catastrophe losses
|
|
(2.0)
|
|
|
(0.3)
|
|
|
(1.7)
|
|
|
Loss and loss expense ratio
|
|
62.6
|
%
|
|
66.9
|
%
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
Current accident year
combined ratio before catastrophe losses
|
|
86.2
|
%
|
|
91.5
|
%
|
|
(5.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- $175 million or 12% growth of
first-quarter 2021 property casualty net written premiums, largely
reflecting premium growth initiatives and price increases. Growth
included a contribution of 6% from Cincinnati Re.
- $5 million or 2% increase in
first-quarter 2021 new business premiums written by agencies. The
growth included a $10 million
increase in standard market property casualty production from
agencies appointed since the beginning of 2020.
- 58 new agency appointments in the first three months of 2021,
including 15 that market only our personal lines products.
- 7.3 percentage-point first-quarter 2021 combined ratio
improvement, despite an increase of 1.3 points for losses from
catastrophes. The ratio included a decrease of 0.1 points of
pandemic-related losses or expenses.
- 7.4 percentage-point first-quarter 2021 benefit from favorable
prior accident year reserve development of $110 million, compared with 2.4 points or
$33 million for first-quarter
2020.
- 2.3 percentage-point improvement, to 57.6%, for the three-month
2021 ratio of current accident year losses and loss expenses before
catastrophes, including a decrease of 1.1 points in the ratio for
current accident year losses of $1
million or more per claim.
- 3.0 percentage-point decrease in the first-quarter 2021
underwriting expense ratio, compared with the same period of 2020,
primarily due to lower levels of business travel spending and
uncollectible premiums.
Commercial Lines
Insurance Results
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Earned
premiums
|
|
$
|
886
|
|
|
$
|
863
|
|
|
3
|
|
|
Fee
revenues
|
|
1
|
|
|
1
|
|
|
0
|
|
|
Total
revenues
|
|
887
|
|
|
864
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
expenses
|
|
503
|
|
|
608
|
|
|
(17)
|
|
|
Underwriting
expenses
|
|
254
|
|
|
276
|
|
|
(8)
|
|
|
Underwriting profit (loss)
|
|
$
|
130
|
|
|
$
|
(20)
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Loss and loss
expenses
|
|
56.7
|
%
|
|
70.5
|
%
|
|
(13.8)
|
|
|
Underwriting
expenses
|
|
28.7
|
|
|
32.0
|
|
|
(3.3)
|
|
|
Combined ratio
|
|
85.4
|
%
|
|
102.5
|
%
|
|
(17.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
Agency renewal
written premiums
|
|
$
|
898
|
|
|
$
|
842
|
|
|
7
|
|
|
Agency new business
written premiums
|
|
145
|
|
|
154
|
|
|
(6)
|
|
|
Other written
premiums
|
|
(24)
|
|
|
(24)
|
|
|
0
|
|
|
Net
written premiums
|
|
$
|
1,019
|
|
|
$
|
972
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Current accident year before
catastrophe losses
|
|
60.0
|
%
|
|
61.0
|
%
|
|
(1.0)
|
|
|
Current accident year
catastrophe losses
|
|
6.1
|
|
|
10.2
|
|
|
(4.1)
|
|
|
Prior accident years before
catastrophe losses
|
|
(7.5)
|
|
|
(0.3)
|
|
|
(7.2)
|
|
|
Prior accident years
catastrophe losses
|
|
(1.9)
|
|
|
(0.4)
|
|
|
(1.5)
|
|
|
Loss and loss expense ratio
|
|
56.7
|
%
|
|
70.5
|
%
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
Current accident year
combined ratio before catastrophe losses
|
|
88.7
|
%
|
|
93.0
|
%
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
- $47 million or 5% increase in
first-quarter 2021 commercial lines net written premiums, driven by
higher agency renewal written premiums.
- $56 million or 7% increase in
first-quarter renewal written premiums, with commercial lines
average renewal pricing increases in the mid-single-digit percent
range.
- $9 million or 6% decrease in
first-quarter 2021 new business written by agencies, largely due to
ongoing pricing discipline and economic factors that do not yet
indicate a full recovery from pandemic effects.
- 17.1 percentage-point improvement in the first-quarter 2021
combined ratio, including a decrease of 5.6 points for losses from
catastrophes.
- 9.4 percentage-point first-quarter 2021 benefit from favorable
prior accident year reserve development of $83 million, compared with 0.7 points or
$6 million for first-quarter
2020.
Personal Lines
Insurance Results
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Earned
premiums
|
|
$
|
376
|
|
|
$
|
359
|
|
|
5
|
|
|
Fee
revenues
|
|
1
|
|
|
1
|
|
|
0
|
|
|
Total
revenues
|
|
377
|
|
|
360
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
expenses
|
|
273
|
|
|
231
|
|
|
18
|
|
|
Underwriting
expenses
|
|
107
|
|
|
108
|
|
|
(1)
|
|
|
Underwriting profit (loss)
|
|
$
|
(3)
|
|
|
$
|
21
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Loss and loss
expenses
|
|
72.6
|
%
|
|
64.2
|
%
|
|
8.4
|
|
|
Underwriting
expenses
|
|
28.5
|
|
|
30.1
|
|
|
(1.6)
|
|
|
Combined ratio
|
|
101.1
|
%
|
|
94.3
|
%
|
|
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
Agency renewal
written premiums
|
|
$
|
302
|
|
|
$
|
294
|
|
|
3
|
|
|
Agency new business
written premiums
|
|
46
|
|
|
34
|
|
|
35
|
|
|
Other written
premiums
|
|
(10)
|
|
|
(9)
|
|
|
(11)
|
|
|
Net
written premiums
|
|
$
|
338
|
|
|
$
|
319
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
|
Current accident year before
catastrophe losses
|
|
57.3
|
%
|
|
60.0
|
%
|
|
(2.7)
|
|
|
Current accident year
catastrophe losses
|
|
20.6
|
|
|
12.0
|
|
|
8.6
|
|
|
Prior accident years before
catastrophe losses
|
|
(4.5)
|
|
|
(6.5)
|
|
|
2.0
|
|
|
Prior accident years
catastrophe losses
|
|
(0.8)
|
|
|
(1.3)
|
|
|
0.5
|
|
|
Loss and loss expense ratio
|
|
72.6
|
%
|
|
64.2
|
%
|
|
8.4
|
|
|
|
|
|
|
|
|
|
|
Current accident year
combined ratio before catastrophe losses
|
|
85.8
|
%
|
|
90.1
|
%
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
- $19 million or 6% growth in
first-quarter 2021 personal lines net written premiums, including
higher renewal written premiums that benefited from rate increases
averaging in the mid-single-digit percent range. First-quarter 2021
net written premiums from our agencies' high net worth clients grew
32%, to $133 million.
- $12 million or 35% increase in
first-quarter 2021 new business written by agencies, largely
reflecting expanded use of enhanced pricing precision tools.
- 6.8 percentage-point increase in the first-quarter 2021
combined ratio, including an increase of 9.1 points for losses from
catastrophes.
- 5.3 percentage-point first-quarter 2021 benefit from favorable
prior accident year reserve development of $20 million, compared with 7.8 points or
$28 million for first-quarter
2020.
Excess and Surplus
Lines Insurance Results
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
|
% Change
|
Earned
premiums
|
|
$
|
89
|
|
|
$
|
78
|
|
|
14
|
|
Fee
revenues
|
|
—
|
|
|
1
|
|
|
(100)
|
|
Total
revenues
|
|
89
|
|
|
79
|
|
|
13
|
|
|
|
|
|
|
|
|
Loss and loss
expenses
|
|
59
|
|
|
45
|
|
|
31
|
|
Underwriting
expenses
|
|
22
|
|
|
25
|
|
|
(12)
|
|
Underwriting profit
|
|
$
|
8
|
|
|
$
|
9
|
|
|
(11)
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
Loss and loss
expenses
|
|
66.7
|
%
|
|
57.4
|
%
|
|
9.3
|
|
Underwriting
expenses
|
|
25.3
|
|
|
31.7
|
|
|
(6.4)
|
|
Combined ratio
|
|
92.0
|
%
|
|
89.1
|
%
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
Agency renewal
written premiums
|
|
$
|
76
|
|
|
$
|
62
|
|
|
23
|
|
Agency new business
written premiums
|
|
29
|
|
|
27
|
|
|
7
|
|
Other written
premiums
|
|
(6)
|
|
|
(4)
|
|
|
(50)
|
|
Net
written premiums
|
|
$
|
99
|
|
|
$
|
85
|
|
|
16
|
|
|
|
|
|
|
|
|
Ratios as a percent
of earned premiums:
|
|
|
|
|
|
Pt. Change
|
Current accident year before
catastrophe losses
|
|
61.0
|
%
|
|
55.7
|
%
|
|
5.3
|
|
Current accident year
catastrophe losses
|
|
1.3
|
|
|
0.5
|
|
|
0.8
|
|
Prior accident years before
catastrophe losses
|
|
4.7
|
|
|
0.7
|
|
|
4.0
|
|
Prior accident years
catastrophe losses
|
|
(0.3)
|
|
|
0.5
|
|
|
(0.8)
|
|
Loss and loss expense ratio
|
|
66.7
|
%
|
|
57.4
|
%
|
|
9.3
|
|
|
|
|
|
|
|
|
Current accident year
combined ratio before catastrophe losses
|
|
86.3
|
%
|
|
87.4
|
%
|
|
(1.1)
|
|
|
|
|
|
|
|
|
- $14 million or 16% increase in
first-quarter 2021 excess and surplus lines net written premiums,
including higher renewal written premiums that benefited from rate
increases averaging in the high-single-digit percent range.
- $2 million or 7% increase in
first-quarter new business written by agencies, as we continue to
carefully underwrite each policy in a highly competitive
market.
- 2.9 percentage-point increase in the first-quarter 2021
combined ratio, including a higher current accident year result and
unfavorable reserve development on prior accident years.
- $4 million of first-quarter 2021
unfavorable prior accident year reserve development, compared with
$1 million for the first quarter of
2020. The 2021 unfavorable development was due to an updated
estimate for salaries and expenses to adjust claims.
Life Insurance
Subsidiary Results
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Term life
insurance
|
|
$
|
51
|
|
|
$
|
47
|
|
|
9
|
|
|
Universal life
insurance
|
|
7
|
|
|
8
|
|
|
(13)
|
|
|
Other life insurance,
annuity, and disability income products
|
|
11
|
|
|
12
|
|
|
(8)
|
|
|
Earned premiums
|
|
69
|
|
|
67
|
|
|
3
|
|
|
Investment income,
net of expenses
|
|
41
|
|
|
39
|
|
|
5
|
|
|
Investment gains and
losses, net
|
|
—
|
|
|
(32)
|
|
|
100
|
|
|
Fee
revenues
|
|
1
|
|
|
—
|
|
|
nm
|
|
|
Total
revenues
|
|
111
|
|
|
74
|
|
|
50
|
|
|
Contract holders'
benefits incurred
|
|
80
|
|
|
73
|
|
|
10
|
|
|
Underwriting expenses
incurred
|
|
18
|
|
|
18
|
|
|
0
|
|
|
Total benefits and expenses
|
|
98
|
|
|
91
|
|
|
8
|
|
|
Net income (loss)
before income tax
|
|
13
|
|
|
(17)
|
|
|
nm
|
|
|
Income tax provision
(benefit)
|
|
3
|
|
|
(4)
|
|
|
nm
|
|
|
Net income (loss) of
the life insurance subsidiary
|
|
$
|
10
|
|
|
$
|
(13)
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
- $2 million or 3% increase in
first-quarter 2021 earned premiums, including a 9% increase for
term life insurance, our largest life insurance product line.
- $23 million increase in
three-month 2021 life insurance subsidiary net income, largely
reflecting investment losses resulting from impairments of
fixed-maturity securities during the first quarter of 2020,
partially offset by less favorable mortality experience in the
first quarter of 2021 due in part to higher pandemic-related death
claims.
- $56 million or 4% three-month
2021 decrease, to $1.361 billion, in
GAAP shareholders' equity for the life insurance subsidiary,
primarily from a decrease in unrealized investment gains.
Investment and
Balance Sheet Highlights
|
|
Investments
Results
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Investment income,
net of expenses
|
|
$
|
174
|
|
|
$
|
165
|
|
|
5
|
|
|
Investment interest
credited to contract holders
|
|
(26)
|
|
|
(26)
|
|
|
0
|
|
|
Investment gains and
losses, net
|
|
504
|
|
|
(1,725)
|
|
|
nm
|
|
|
Investments profit
(loss)
|
|
$652
|
|
|
$
|
(1,586)
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
Investment
income:
|
|
|
|
|
|
|
|
Interest
|
|
$
|
118
|
|
|
$
|
112
|
|
|
5
|
|
|
Dividends
|
|
58
|
|
|
53
|
|
|
9
|
|
|
Other
|
|
2
|
|
|
3
|
|
|
(33)
|
|
|
Less
investment expenses
|
|
4
|
|
|
3
|
|
|
33
|
|
|
Investment income,
pretax
|
|
174
|
|
|
165
|
|
|
5
|
|
|
Less income
taxes
|
|
27
|
|
|
26
|
|
|
4
|
|
|
Total investment
income, after-tax
|
|
$
|
147
|
|
|
$
|
139
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Investment
returns:
|
|
|
|
|
|
|
|
Average invested
assets plus cash and cash equivalents
|
|
$
|
21,776
|
|
|
$
|
19,010
|
|
|
|
|
Average yield
pretax
|
|
3.20
|
%
|
|
3.47
|
%
|
|
|
|
Average yield
after-tax
|
|
2.70
|
|
|
2.92
|
|
|
|
|
Effective tax
rate
|
|
15.5
|
|
|
15.5
|
|
|
|
|
Fixed-maturity
returns:
|
|
|
|
|
|
|
|
Average amortized
cost
|
|
$
|
11,395
|
|
|
$
|
11,091
|
|
|
|
|
Average yield
pretax
|
|
4.14
|
%
|
|
4.04
|
%
|
|
|
|
Average yield
after-tax
|
|
3.45
|
|
|
3.37
|
|
|
|
|
Effective tax
rate
|
|
16.7
|
|
|
16.6
|
|
|
|
|
|
|
|
|
|
|
|
|
- $9 million or 5% rise in
first-quarter 2021 pretax investment income, including a 9%
increase in equity portfolio dividends and a 5% increase in
interest income.
- $308 million first-quarter 2021
pretax total investment gains, summarized in the table below.
Changes in unrealized gains or losses reported in other
comprehensive income, in addition to investment gains and losses
reported in net income, are useful for evaluating total investment
performance over time and are major components of changes in book
value and the value creation ratio.
(Dollars in
millions)
|
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
Investment gains and
losses on equity securities sold, net
|
|
$
|
4
|
|
|
$
|
(4)
|
|
|
Unrealized gains and
losses on equity securities still held, net
|
|
487
|
|
|
(1,649)
|
|
|
Investment gains and
losses on fixed-maturity securities, net
|
|
3
|
|
|
(75)
|
|
|
Other
|
|
10
|
|
|
3
|
|
|
Subtotal - investment
gains and losses reported in net income
|
|
504
|
|
|
(1,725)
|
|
|
Change in unrealized
investment gains and losses - fixed maturities
|
|
(196)
|
|
|
(324)
|
|
|
Total
|
|
$
|
308
|
|
|
$
|
(2,049)
|
|
|
|
|
|
|
|
|
Balance Sheet
Highlights
|
|
(Dollars in millions,
except share data)
|
At March
31,
|
At December
31,
|
|
|
|
2021
|
|
2020
|
|
Total
investments
|
|
$
|
22,018
|
|
|
$
|
21,542
|
|
|
Total
assets
|
|
28,313
|
|
|
27,542
|
|
|
Short-term debt
|
|
57
|
|
|
54
|
|
|
Long-term debt
|
|
788
|
|
|
788
|
|
|
Shareholders' equity
|
|
11,138
|
|
|
10,789
|
|
|
Book
value per share
|
|
69.16
|
|
|
67.04
|
|
|
Debt-to-total-capital
ratio
|
|
7.1
|
%
|
|
7.2
|
%
|
|
|
|
|
|
|
|
- $22.965 billion in consolidated
cash and total investments at March 31,
2021, an increase of 2% from $22.442
billion at year-end 2020.
- $12.308 billion bond portfolio at
March 31, 2021, with an average
rating of A3/A. Fair value decreased $30
million during the first quarter of 2021, including
$137 million in net purchases of
fixed-maturity securities.
- $9.360 billion equity portfolio
was 42.5% of total investments, including $5.422 billion in appreciated value before taxes
at March 31, 2021. First-quarter 2021
increase in fair value of $504
million or 6%.
- $2.12 first-quarter 2021 increase
in book value per share, including additions of $1.38 from net income before investment gains,
$1.47 from investment portfolio net
investment gains or changes in unrealized gains for fixed-maturity
securities, partially offset by $0.63
from dividends declared to shareholders and $0.10 for other items.
- Value creation ratio of 4.1% for the first three months of
2021, including 2.1% from net income before investment gains, which
includes underwriting and investment income, and 2.2% from
investment portfolio net investment losses and changes in
unrealized gains for fixed-maturity securities and negative 0.2%
from other items.
For additional information or to register for our conference
call webcast, please visit cinfin.com/investors.
About Cincinnati Financial
Cincinnati Financial
Corporation offers primarily business, home and auto insurance, our
main business, through The Cincinnati Insurance Company and
its two standard market property casualty companies. The same local
independent insurance agencies that market those policies may offer
products of our other subsidiaries, including life insurance, fixed
annuities and surplus lines property and casualty insurance.
For additional information about the company, please visit
cinfin.com.
|
|
Mailing
Address:
|
|
|
|
Street
Address:
|
|
|
P.O. Box
145496
|
|
|
|
6200 South Gilmore
Road
|
|
|
Cincinnati, Ohio
45250-5496
|
|
|
|
Fairfield, Ohio
45014-5141
|
Safe Harbor Statement
This is our "Safe Harbor"
statement under the Private Securities Litigation Reform Act of
1995. Our business is subject to certain risks and uncertainties
that may cause actual results to differ materially from those
suggested by the forward-looking statements in this report. Some of
those risks and uncertainties are discussed in our 2020 Annual
Report on Form 10-K, Item 1A, Risk Factors, Page 34.
Factors that could cause or contribute to such differences
include, but are not limited to:
- Effects of the COVID-19 pandemic that could affect results for
reasons such as:
-
- Securities market disruption or volatility and related effects
such as decreased economic activity that affect the company's
investment portfolio and book value
- An unusually high level of claims in our insurance or
reinsurance operations that increase litigation-related
expenses
- An unusually high level of insurance losses, including risk of
legislation or court decisions extending business interruption
insurance in commercial property coverage forms to cover claims for
pure economic loss related to the COVID-19 pandemic
- Decreased premium revenue and cash flow from disruption to our
distribution channel of independent agents, consumer
self-isolation, travel limitations, business restrictions and
decreased economic activity
- Inability of our workforce, agencies or vendors to perform
necessary business functions
- Ongoing developments concerning business interruption insurance
claims and litigation related to the COVID-19 pandemic that affect
our estimates of losses and loss adjustment expenses or our ability
to reasonably estimate such losses, such as:
-
- The continuing duration of the pandemic and governmental
actions to limit the spread of the virus that may produce
additional economic losses
- The number of policyholders that will ultimately submit claims
or file lawsuits
- The lack of submitted proofs of loss for allegedly covered
claims
- Judicial rulings in similar litigation involving other
companies in the insurance industry
- Differences in state laws and developing case law in the
relatively few decisions rendered to date
- Litigation trends, including varying legal theories advanced by
policyholders
- Whether and to what degree any class of policyholders may be
certified
- The inherent unpredictability of litigation
- Unusually high levels of catastrophe losses due to risk
concentrations, changes in weather patterns, environmental events,
terrorism incidents or other causes
- Increased frequency and/or severity of claims or development of
claims that are unforeseen at the time of policy issuance
- Inadequate estimates, assumptions or reliance on third-party
data used for critical accounting estimates
- Declines in overall stock market values negatively affecting
the company's equity portfolio and book value
- Prolonged low interest rate environment or other factors that
limit the company's ability to generate growth in investment income
or interest rate fluctuations that result in declining values of
fixed-maturity investments, including declines in accounts in which
we hold bank-owned life insurance contract assets
- Domestic and global events resulting in capital market or
credit market uncertainty, followed by prolonged periods of
economic instability or recession, that lead to:
-
- Significant or prolonged decline in the fair value of a
particular security or group of securities and impairment of the
asset(s)
- Significant decline in investment income due to reduced or
eliminated dividend payouts from a particular security or group of
securities
- Significant rise in losses from surety and director and officer
policies written for financial institutions or other insured
entities
- Our inability to integrate Cincinnati Global and its
subsidiaries into our ongoing operations, or disruptions to our
ongoing operations due to such integration
- Recession or other economic conditions resulting in lower
demand for insurance products or increased payment
delinquencies
- Difficulties with technology or data security breaches,
including cyberattacks, that could negatively affect our ability to
conduct business; disrupt our relationships with agents,
policyholders and others; cause reputational damage, mitigation
expenses and data loss and expose us to liability under federal and
state laws
- Disruption of the insurance market caused by technology
innovations such as driverless cars that could decrease consumer
demand for insurance products
- Delays, inadequate data developed internally or from third
parties, or performance inadequacies from ongoing development and
implementation of underwriting and pricing methods, including
telematics and other usage-based insurance methods, or technology
projects and enhancements expected to increase our pricing
accuracy, underwriting profit and competitiveness
- Increased competition that could result in a significant
reduction in the company's premium volume
- Changing consumer insurance-buying habits and consolidation of
independent insurance agencies that could alter our competitive
advantages
- Inability to obtain adequate ceded reinsurance on acceptable
terms, amount of reinsurance coverage purchased, financial strength
of reinsurers and the potential for nonpayment or delay in payment
by reinsurers
- Inability to defer policy acquisition costs for any business
segment if pricing and loss trends would lead management to
conclude that segment could not achieve sustainable
profitability
- Inability of our subsidiaries to pay dividends consistent with
current or past levels
- Events or conditions that could weaken or harm the company's
relationships with its independent agencies and hamper
opportunities to add new agencies, resulting in limitations on the
company's opportunities for growth, such as:
-
- Downgrades of the company's financial strength ratings
- Concerns that doing business with the company is too
difficult
- Perceptions that the company's level of service, particularly
claims service, is no longer a distinguishing characteristic in the
marketplace
- Inability or unwillingness to nimbly develop and introduce
coverage product updates and innovations that our competitors offer
and consumers expect to find in the marketplace
- Actions of insurance departments, state attorneys general or
other regulatory agencies, including a change to a federal system
of regulation from a state-based system, that:
-
- Impose new obligations on us that increase our expenses or
change the assumptions underlying our critical accounting
estimates
- Place the insurance industry under greater regulatory scrutiny
or result in new statutes, rules and regulations
- Restrict our ability to exit or reduce writings of unprofitable
coverages or lines of business
- Add assessments for guaranty funds, other insurance–related
assessments or mandatory reinsurance arrangements; or that impair
our ability to recover such assessments through future surcharges
or other rate changes
- Increase our provision for federal income taxes due to changes
in tax law
- Increase our other expenses
- Limit our ability to set fair, adequate and reasonable
rates
- Place us at a disadvantage in the marketplace
- Restrict our ability to execute our business model, including
the way we compensate agents
- Adverse outcomes from litigation or administrative
proceedings
- Events or actions, including unauthorized intentional
circumvention of controls, that reduce the company's future ability
to maintain effective internal control over financial reporting
under the Sarbanes-Oxley Act of 2002
- Unforeseen departure of certain executive officers or other key
employees due to retirement, health or other causes that could
interrupt progress toward important strategic goals or diminish the
effectiveness of certain longstanding relationships with insurance
agents and others
- Events, such as an epidemic, natural catastrophe or terrorism,
that could hamper our ability to assemble our workforce at our
headquarters location
Further, the company's insurance businesses are subject to the
effects of changing social, global, economic and regulatory
environments. Public and regulatory initiatives have included
efforts to adversely influence and restrict premium rates, restrict
the ability to cancel policies, impose underwriting standards and
expand overall regulation. The company also is subject to public
and regulatory initiatives that can affect the market value for its
common stock, such as measures affecting corporate financial
reporting and governance. The ultimate changes and eventual
effects, if any, of these initiatives are uncertain.
* * *
Cincinnati
Financial Corporation
|
|
Condensed
Consolidated Balance Sheets and Statements of Income
(unaudited)
|
|
(Dollars in
millions)
|
|
March
31,
|
|
December 31,
|
|
|
|
2021
|
|
2020
|
|
Assets
|
|
|
|
|
|
Investments
|
|
$
|
22,018
|
|
|
$
|
21,542
|
|
|
Cash and
cash equivalents
|
|
947
|
|
|
900
|
|
|
Premiums
receivable
|
|
2,048
|
|
|
1,879
|
|
|
Reinsurance recoverable
|
|
511
|
|
|
517
|
|
|
Deferred policy
acquisition costs
|
|
880
|
|
|
805
|
|
|
Other
assets
|
|
1,909
|
|
|
1,899
|
|
|
Total
assets
|
|
$
|
28,313
|
|
|
$
|
27,542
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Insurance reserves
|
|
$
|
9,900
|
|
|
$
|
9,661
|
|
|
Unearned
premiums
|
|
3,181
|
|
|
2,960
|
|
|
Deferred
income tax
|
|
1,373
|
|
|
1,299
|
|
|
Long-term debt and lease obligations
|
|
848
|
|
|
845
|
|
|
Other
liabilities
|
|
1,873
|
|
|
1,988
|
|
|
Total
liabilities
|
|
17,175
|
|
|
16,753
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
Common
stock and paid-in capital
|
|
1,719
|
|
|
1,725
|
|
|
Retained
earnings
|
|
10,603
|
|
|
10,085
|
|
|
Accumulated other comprehensive income
|
|
625
|
|
|
769
|
|
|
Treasury
stock
|
|
(1,809)
|
|
|
(1,790)
|
|
|
Total shareholders'
equity
|
|
11,138
|
|
|
10,789
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
28,313
|
|
|
$
|
27,542
|
|
|
|
|
|
|
|
|
(Dollars in millions,
except per share data)
|
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
Revenues
|
|
|
|
|
|
Earned
premiums
|
|
$
|
1,544
|
|
|
$
|
1,456
|
|
|
Investment income, net of expenses
|
|
174
|
|
|
165
|
|
|
Investment gains and losses, net
|
|
504
|
|
|
(1,725)
|
|
|
Other
revenues
|
|
5
|
|
|
5
|
|
|
Total
revenues
|
|
2,227
|
|
|
(99)
|
|
|
|
|
|
|
|
|
Benefits and
Expenses
|
|
|
|
|
|
Insurance losses and contract holders' benefits
|
|
1,003
|
|
|
1,003
|
|
|
Underwriting, acquisition and insurance expenses
|
|
439
|
|
|
456
|
|
|
Interest
expense
|
|
13
|
|
|
13
|
|
|
Other
operating expenses
|
|
4
|
|
|
5
|
|
|
Total benefits and
expenses
|
|
1,459
|
|
|
1,477
|
|
|
|
|
|
|
|
|
Income
(Loss) Before Income Taxes
|
|
768
|
|
|
(1,576)
|
|
|
|
|
|
|
|
|
Provision
(Benefit) for Income Taxes
|
|
148
|
|
|
(350)
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
$
|
620
|
|
|
$
|
(1,226)
|
|
|
|
|
|
|
|
|
Per Common
Share:
|
|
|
|
|
|
Net
income (loss)—basic
|
|
$
|
3.85
|
|
|
$
|
(7.56)
|
|
|
Net
income (loss)—diluted
|
|
3.82
|
|
|
(7.56)
|
|
|
|
|
|
|
|
|
Definitions of Non-GAAP Information and
Reconciliation to Comparable GAAP Measures
(See attached
tables for reconciliations; additional prior-period reconciliations
available at cinfin.com/investors.)
Cincinnati Financial Corporation prepares its public financial
statements in conformity with accounting principles generally
accepted in the United States of
America (GAAP). Statutory data is prepared in accordance
with statutory accounting rules for insurance company regulation in
the United States of America as defined by the
National Association of Insurance Commissioners' (NAIC) Accounting
Practices and Procedures Manual, and therefore is not reconciled to
GAAP data.
Management uses certain non-GAAP financial measures to evaluate
its primary business areas – property casualty insurance, life
insurance and investments. Management uses these measures when
analyzing both GAAP and non-GAAP results to improve its
understanding of trends in the underlying business and to help
avoid incorrect or misleading assumptions and conclusions about the
success or failure of company strategies. Management adjustments to
GAAP measures generally: apply to non-recurring events that are
unrelated to business performance and distort short-term results;
involve values that fluctuate based on events outside of
management's control; supplement reporting segment disclosures with
disclosures for a subsidiary company or for a combination of
subsidiaries or reporting segments; or relate to accounting
refinements that affect comparability between periods, creating a
need to analyze data on the same basis.
- Non-GAAP operating income: Non-GAAP operating income is
calculated by excluding investment gains and losses (defined as
investment gains and losses after applicable federal and state
income taxes) and other significant non-recurring items from net
income. Management evaluates non-GAAP operating income to measure
the success of pricing, rate and underwriting strategies. While
investment gains (or losses) are integral to the company's
insurance operations over the long term, the determination to
realize investment gains or losses on fixed-maturity securities
sold in any period may be subject to management's discretion and is
independent of the insurance underwriting process. Also, under
applicable GAAP accounting requirements, gains and losses are
recognized from certain changes in market values of securities
without actual realization. Management believes that the level of
investment gains or losses for any particular period, while it may
be material, may not fully indicate the performance of ongoing
underlying business operations in that period.
For these reasons, many investors and shareholders consider
non-GAAP operating income to be one of the more meaningful measures
for evaluating insurance company performance. Equity analysts who
report on the insurance industry and the company generally focus on
this metric in their analyses. The company presents non-GAAP
operating income so that all investors have what management
believes to be a useful supplement to GAAP information.
- Consolidated property casualty insurance results: To supplement
reporting segment disclosures related to our property casualty
insurance operations, we also evaluate results for those operations
on a basis that includes results for our property casualty
insurance and brokerage services subsidiaries. That is the total of
our commercial lines, personal lines and our excess and surplus
lines segments plus our reinsurance assumed operations known as
Cincinnati Re and our London-based
global specialty underwriter known as Cincinnati Global.
- Life insurance subsidiary results: To supplement life insurance
reporting segment disclosures related to our life insurance
operation, we also evaluate results for that operation on a basis
that includes life insurance subsidiary investment income, or
investment income plus investment gains and losses, that are also
included in our investments reporting segment. We recognize that
assets under management, capital appreciation and investment income
are integral to evaluating the success of the life insurance
segment because of the long duration of life products.
Cincinnati
Financial Corporation
|
|
Net Income
Reconciliation
|
|
|
|
(Dollars in millions,
except per share data)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
Net income
(loss)
|
|
$
|
620
|
|
|
$
|
(1,226)
|
|
|
Less:
|
|
|
|
|
|
Investment gains and losses, net
|
|
504
|
|
|
(1,725)
|
|
|
Income
tax on investment gains and losses
|
|
(106)
|
|
|
362
|
|
|
Investment gains and losses, after-tax
|
|
398
|
|
|
(1,363)
|
|
|
Non-GAAP operating
income
|
|
$
|
222
|
|
|
$
|
137
|
|
|
|
|
|
|
|
|
Diluted per share
data:
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
3.82
|
|
|
$
|
(7.56)
|
|
|
Less:
|
|
|
|
|
|
Investment gains and losses, net
|
|
3.10
|
|
|
(10.63)
|
|
|
Income
tax on investment gains and losses
|
|
0.65
|
|
|
2.23
|
|
|
Investment gains and losses, after-tax
|
|
2.45
|
|
|
(8.40)
|
|
|
Non-GAAP operating
income
|
|
$
|
1.37
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
Life Insurance
Reconciliation
|
|
|
|
(Dollars in
millions)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
Net income (loss) of
the life insurance subsidiary
|
|
$
|
10
|
|
|
$
|
(13)
|
|
|
Investment gains and
losses, net
|
|
—
|
|
|
(32)
|
|
|
Income tax on
investment gains and losses
|
|
—
|
|
|
(7)
|
|
|
Non-GAAP operating
income
|
|
10
|
|
|
12
|
|
|
|
|
|
|
|
|
Investment income, net
of expenses
|
|
(41)
|
|
|
(39)
|
|
|
Investment income
credited to contract holders
|
|
26
|
|
|
26
|
|
|
Income tax excluding
tax on investment gains and losses, net
|
|
3
|
|
|
3
|
|
|
Life insurance segment
profit (loss)
|
|
$
|
(2)
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
Property Casualty
Insurance Reconciliation
|
|
(Dollars in
millions)
|
Three months ended
March 31, 2021
|
|
|
Consolidated
|
Commercial
|
Personal
|
E&S
|
|
Other*
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written
premiums
|
|
$
|
1,693
|
|
|
|
$
|
1,019
|
|
|
|
$
|
338
|
|
|
|
$
|
99
|
|
|
|
$
|
237
|
|
|
Unearned
premiums change
|
|
(218)
|
|
|
|
(133)
|
|
|
|
38
|
|
|
|
(10)
|
|
|
|
(113)
|
|
|
Earned
premiums
|
|
$
|
1,475
|
|
|
|
$
|
886
|
|
|
|
$
|
376
|
|
|
|
$
|
89
|
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting profit
(loss)
|
|
$
|
133
|
|
|
|
$
|
130
|
|
|
|
$
|
(3)
|
|
|
|
$
|
8
|
|
|
|
$
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Three months ended
March 31, 2020
|
|
|
Consolidated
|
Commercial
|
Personal
|
E&S
|
Other*
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written
premiums
|
|
$
|
1,518
|
|
|
|
$
|
972
|
|
|
|
$
|
319
|
|
|
|
$
|
85
|
|
|
|
$
|
142
|
|
|
Unearned
premiums change
|
|
(129)
|
|
|
|
(109)
|
|
|
|
40
|
|
|
|
(7)
|
|
|
|
(53)
|
|
|
Earned
premiums
|
|
$
|
1,389
|
|
|
|
$
|
863
|
|
|
|
$
|
359
|
|
|
|
$
|
78
|
|
|
|
$
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting profit
(loss)
|
|
$
|
24
|
|
|
|
$
|
(20)
|
|
|
|
$
|
21
|
|
|
|
$
|
9
|
|
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar amounts
shown are rounded to millions; certain amounts may not add due to
rounding.
*Included in Other
are the results of Cincinnati Re and Cincinnati Global.
|
|
Cincinnati Financial
Corporation
Other Measures
- Value creation ratio: This is a measure of shareholder value
creation that management believes captures the contribution of the
company's insurance operations, the success of its investment
strategy and the importance placed on paying cash dividends to
shareholders. The value creation ratio measure is made up of two
primary components: (1) rate of growth in book value per share plus
(2) the ratio of dividends declared per share to beginning book
value per share. Management believes this measure is useful,
providing a meaningful measure of long-term progress in creating
shareholder value. It is intended to be all-inclusive regarding
changes in book value per share, and uses originally reported book
value per share in cases where book value per share has been
adjusted, such as adoption of Accounting Standards Updates with a
cumulative effect of a change in accounting.
- Written premium: Under statutory accounting rules in the U.S.,
property casualty written premium is the amount recorded for
policies issued and recognized on an annualized basis at the
effective date of the policy. Management analyzes trends in written
premium to assess business efforts. The difference between written
and earned premium is unearned premium.
Value Creation
Ratio Calculations
|
|
(Dollars are per
share)
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
Value creation
ratio:
|
|
|
|
|
|
End of
period book value*
|
|
$
|
69.16
|
|
|
$
|
50.02
|
|
|
Less
beginning of period book value
|
|
67.04
|
|
|
60.55
|
|
|
Change
in book value
|
|
2.12
|
|
|
(10.53)
|
|
|
Dividend
declared to shareholders
|
|
0.63
|
|
|
0.60
|
|
|
Total
value creation
|
|
$
|
2.75
|
|
|
$
|
(9.93)
|
|
|
|
|
|
|
|
|
Value creation ratio
from change in book value**
|
|
3.2
|
%
|
|
(17.4)
|
%
|
|
Value creation ratio
from dividends declared to shareholders***
|
|
0.9
|
|
|
1.0
|
|
|
Value creation
ratio
|
|
4.1
|
%
|
|
(16.4)
|
%
|
|
|
|
|
|
|
|
*
Book value per share is calculated by dividing end of period total
shareholders' equity by end of period shares outstanding
|
|
** Change in
book value divided by the beginning of period book value
|
|
*** Dividend declared
to shareholders divided by beginning of period book
value
|
|
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SOURCE Cincinnati Financial Corporation