Cincinnati Financial Has Higher Profit

Cincinnati Financial Has Higher Profit

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

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

Commenting on his company's latest financial results, John Schiff, chief executive officer at Cincinnati Financial, said, "The 2003 second quarter benefited from the continued growth of property-casualty premium revenues and improved non-catastrophe underwriting, primarily in commercial lines, as well as higher investment income."

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

"While better weather in this year's first quarter helped our six-month results, the real progress occurred in non-catastrophe underwriting. Excluding catastrophes, the combined ratio improved to 93 percent in 2003 from 98.2 percent in 2002," he said.

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

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

"As we underwrite and price new and renewal business, our agents and field representatives continue to work together, accurately measuring each risk and applying appropriate premiums, terms and conditions," Mr. Schiff said.

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

Based in Fairfield, Ohio, Cincinnati Financial is the parent company of Cincinnati Insurance, which includes Cincinnati Casualty and Cincinnati Indemnity.

Through its subsidiaries, Cincinnati Financial sells commercial property, liability, auto, bond and fire insurance, and its personal lines include homeowners and liability products. Last year, it posted $2.843 billion in overall sales.