Cincinnati Financial Has Higher Profit

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NU Online News Service, July 30, 10:32 a.m.EDT?Cincinnati Financial Corporation posted asecond-quarter net income of $84 million, more than a twofoldincrease from $35 million in profit recorded one year ago.

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Its total second-quarter revenue also increased to $95 million,up 13.5 percent from the corresponding period in 2002.

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Commenting on his company's latest financial results, JohnSchiff, chief executive officer at Cincinnati Financial, said, "The2003 second quarter benefited from the continued growth ofproperty-casualty premium revenues and improved non-catastropheunderwriting, primarily in commercial lines, as well as higherinvestment income."

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Mr. Schiff also pointed out that Cincinnati Financial'sunderwriting profits for the first half of 2003 reached $42million, in contrast to a loss of $41 million posted last year.

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"While better weather in this year's first quarter helped oursix-month results, the real progress occurred in non-catastropheunderwriting. Excluding catastrophes, the combined ratio improvedto 93 percent in 2003 from 98.2 percent in 2002," he said.

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Cincinnati Financial's net written premiums jumped, for bothcommercial and personal lines.

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For commercial lines, net written premiums reached $507 million,representing some 16 percent increase compared to one year ago andmaking up 69.8 percent of the insurer's overall premiums for thepast quarter. In personal lines, net written for the quarter was$219 million, a 16.4 percent increase from the year-ago period.

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"As we underwrite and price new and renewal business, our agentsand field representatives continue to work together, accuratelymeasuring each risk and applying appropriate premiums, terms andconditions," Mr. Schiff said.

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Mr. Schiff added that so far in 2003, these efforts have helpedin achieving a 13.4 percent net written premium growth and positiveunderwriting trends. "We now have higher expectations for ourfull-year performance," he said.

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Based in Fairfield, Ohio, Cincinnati Financial is the parentcompany of Cincinnati Insurance, which includes Cincinnati Casualtyand Cincinnati Indemnity.

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Through its subsidiaries, Cincinnati Financial sells commercialproperty, liability, auto, bond and fire insurance, and itspersonal lines include homeowners and liability products. Lastyear, it posted $2.843 billion in overall sales.

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