Cincinnati Monetary publishes fourth quarter and full-year 2023 outcomes

Cincinnati Monetary Company has reported its monetary outcomes for the fourth quarter and full yr of 2023.

The corporate noticed a fourth-quarter internet revenue of $1.183 billion, or $7.50 per share, a rise from the earlier yr’s $1.013 billion, or $6.41 per share. This rise was attributed to an $824 million after-tax achieve within the truthful worth of fairness securities nonetheless held in the course of the fourth quarter of 2023. The complete-year internet revenue for 2023 was $1.843 billion, or $11.66 per share, marking a restoration from a internet lack of $487 million, or $3.06 per share, in 2022.

The corporate additionally reported a 78% enhance in fourth-quarter non-GAAP working revenue to $359 million, or $2.28 per share, up from $202 million, or $1.28 per share, within the earlier yr’s quarter. The complete-year non-GAAP working revenue rose by 42% to $952 million, or $6.03 per share, from $672 million, or $4.24 per share, with a notable enhance in after-tax property casualty underwriting revenue of $206 million.

Cincinnati Monetary outcomes for FY2023

Insurance coverage operations confirmed sturdy efficiency with a fourth-quarter 2023 property casualty mixed ratio of 87.5%, improved from 94.9% in the identical quarter of 2022. The complete-year mixed ratio stood at 94.9%, with internet written premiums growing by 10%. The fourth quarter additionally noticed 13% development in internet written premiums, pushed by value will increase, premium development initiatives, and the next degree of insured exposures.

The corporate’s new enterprise for property casualty within the fourth quarter amounted to $310 million, with contributions from companies appointed because the starting of 2022 accounting for $28 million, or 9%, of the whole new enterprise written premiums.

The life insurance coverage subsidiary contributed $10 million to the fourth-quarter internet revenue and witnessed 4% development in time period life insurance coverage earned premiums. The complete-year non-GAAP working revenue for the life insurance coverage phase rose by 22%.

Moreover, Cincinnati Monetary Company reported development in each fourth-quarter and full-year internet written premiums for property casualty, emphasizing premium development initiatives and the next degree of insured exposures. The corporate appointed 300 new companies in 2023, together with 84 specializing in private strains merchandise.

The fourth-quarter mixed ratio confirmed a 7.4 percentage-point enchancment from 2022, together with a lower in losses from catastrophes. The complete-year mixed ratio additionally improved, reflecting a lower in disaster losses and favorable prior accident yr reserve growth.

Industrial strains internet written premiums grew by 5% and 4% within the fourth quarter and full yr, respectively, primarily because of increased company renewal written premiums. The corporate additionally reported an 18% enhance in fourth-quarter new enterprise written premiums, showcasing cautious underwriting insurance policies in a aggressive market atmosphere, it mentioned.

Regardless of a slight lower in full-year new enterprise written by companies, the corporate additionally noticed a rise from newly appointed companies because the starting of 2022.

“Cincinnati Re and Cincinnati International Underwriting Ltd.SM proceed to carry out as deliberate and have been very worthwhile in 2023, with a 77% mixed ratio in whole,” Cincinnati Monetary CEO and chairman Steven J. Johnston mentioned. “Their distinctive danger profile helps diversify earnings and each are good examples of how we make the most of market alternatives as they come up.”

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