Cincinnati Financial Corp.reported financial results for 2007 1st quarter:
* Net income of $1.11 per share, below year-ago level that included high realized gains on investments.
* Operating income up 18.9 percent to 88 cents per share on healthy insurance results and higher investment income.
* Property casualty underwriting profits of $81 million reflect strong commercial lines insurance performance including lower catastrophe losses.
Insurance Operations Highlights
* 2.1 percent increase in first-quarter property casualty net written premiums.
* Strong commercial lines growth with first-quarter 2007 net written premiums up 3.8 percent and new business written by our agencies up 2.8 percent to $72 million.
* Decline in personal lines net written premiums slowed to 5.1 percent for first-quarter 2007. New business was up 25.4 percent to $8 million and retention rates remained above 90 percent as pricing changes made July 1, 2006, continue to improve agents’ ability to market personal lines.
* 89.6 percent first-quarter 2007 property casualty combined ratio, reflecting low catastrophe losses from first-quarter storms and reduced loss estimates for prior-year storms.
* 7 cents per share contribution from the life insurance operations to first-quarter operating income, up from 4 cents.
Investment and Balance Sheet Highlights
* 7.1 percent growth in first-quarter pretax investment income.
* Book value of $39.08 per share compared with $39.38 at year-end 2006.
* 1.9 million reduction in average shares outstanding. First-quarter repurchases of the company’s common stock totaled 1.49 million shares at a cost of $64 million.
“The value that local independent insurance agents bring to The Cincinnati Insurance Cos. again proved itself in this year’s first quarter,” said John J. Schiff, Jr., CPCU, chairman and chief executive officer. “Their quality business submissions are helping us achieve profitable commercial lines premium growth. They are again selling the value of our homeowner and personal auto policies, as seen in our improved personal lines new business growth and policy retention.
Source: Cincinnati Insurance Cos.