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Cincinnati Financial Corp. (CINF)
NASDAQ:CINF
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Cincinnati Financial (CINF) AI Stock Analysis

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CINF

Cincinnati Financial

(NASDAQ:CINF)

Rating:78Outperform
Price Target:
$174.00
▲(11.83% Upside)
Cincinnati Financial's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust earnings call results and strategic management further bolster its position. Technical indicators suggest a stable upward trend, enhancing the stock's appeal.
Positive Factors
Earnings
The 1Q25 result came in better than the forecast of an $0.89/sh loss and consensus at a $0.64/sh loss, mainly due to lower-than-expected catastrophe losses.
Premium Growth
Premium growth was well ahead of expectations with 11% net premium growth in the P&C businesses, driven by the personal lines segment delivering 13% growth.
Negative Factors
Stock Market Impact
Shares of CINF have been negatively impacted by the YTD decline in the stock market, leading to a 7% decrease in share value.
Wildfire Impact
The reinstatement premiums for the LA wildfires created a 210bps headwind in underwriting margins.

Cincinnati Financial (CINF) vs. SPDR S&P 500 ETF (SPY)

Cincinnati Financial Business Overview & Revenue Model

Company DescriptionCincinnati Financial Corporation (CINF) is a publicly traded property and casualty insurance company headquartered in Fairfield, Ohio. The company operates through its subsidiaries, providing a wide range of insurance products including personal, commercial, and life insurance. Cincinnati Financial focuses on delivering comprehensive risk management solutions and has a strong presence in the Midwest and southeastern United States, with a network of independent agents who distribute its insurance products.
How the Company Makes MoneyCincinnati Financial generates revenue primarily through underwriting premiums from its insurance operations. The company earns money by collecting premiums from policyholders and then paying out claims when necessary. Its key revenue streams include personal and commercial property insurance, casualty insurance, and life insurance. Additionally, Cincinnati Financial invests the premiums it collects in various financial instruments, which generates investment income. The company also benefits from its strong relationships with independent agents, which helps drive sales and enhance customer retention. Investment gains from the company's diversified portfolio further contribute to its overall earnings.

Cincinnati Financial Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant growth in net income, investment income, and premium growth across various segments. Despite challenges from catastrophe losses and reserve adjustments, the company demonstrated robust operational results and strategic reinsurance management.
Q2-2025 Updates
Positive Updates
Strong Operating Performance
Reported strong operating performance with commercial and excess and surplus lines segments producing combined ratios below 93% and Cincinnati Re and Cincinnati Global each with combined ratios below 85%.
Significant Net Income Growth
Net income of $685 million more than doubled from a year ago, including a $380 million after-tax recognition for the increase in fair value of equity securities.
Investment Income Growth
Reported 18% growth in investment income reflecting efforts to rebalance the investment portfolio.
Premium Growth
Consolidated property casualty net written premiums grew 11% for the quarter, with commercial lines growing 9% and personal lines growing 20%.
Life Insurance Segment Performance
Life insurance subsidiary reported 8% net income growth with term life insurance earned premiums up 3%.
Negative Updates
Impact of Catastrophe Losses
Spring and summer storms added 23.8 percentage points to the personal lines combined ratio.
Decrease in Personal Lines New Business
New business written premiums in personal lines segment decreased by $22 million, including a $13 million reduction in California.
Reserve Strengthening
The company experienced $63 million of net favorable reserve development, but also had reserve strengthening for some prior accident years.
Reinsurance Market Softening
Cincinnati Re’s net written premiums decreased by 21% due to pricing discipline in a softening reinsurance market.
Company Guidance
During the Cincinnati Financial Corporation's second quarter 2025 earnings conference call, the company reported robust financial performance with key metrics indicating significant growth. The commercial lines and excess and surplus lines insurance segments achieved combined ratios below 93% and 91.1%, respectively, while Cincinnati Re and Cincinnati Global reported combined ratios below 85%. The personal lines segment experienced a combined ratio of 102%, despite a 23.8 percentage point impact from spring and summer storms. Net income for the quarter was $685 million, more than doubling from the previous year, driven by a $380 million increase in the fair value of equity securities. Non-GAAP operating income rose 52% to $311 million. The property casualty combined ratio improved by 3.6 percentage points to 94.9%, despite a 1-point increase in catastrophe losses. Net written premiums grew 11%, with 16% growth in agency renewal premiums, while the investment income increased by 18% due to strategic rebalancing of the investment portfolio. The company also expanded its property catastrophe reinsurance program with an additional $300 million layer, while maintaining a debt-to-total capital ratio under 10%, showcasing strong financial stability and growth potential.

Cincinnati Financial Financial Statement Overview

Summary
Cincinnati Financial's financial health is generally strong, supported by a solid balance sheet with low leverage and robust cash flow metrics. However, challenges exist in sustaining revenue growth and profitability, as reflected in declining margins and revenue.
Income Statement
65
Positive
Cincinnati Financial exhibits a moderate performance with a current TTM gross profit margin of 100% due to zero cost structure in the insurance sector. The net profit margin for the TTM is 13.2%, lower than the previous annual period of 20.2%, indicating margin compression. Revenue has decreased by 3.25% in the TTM compared to the last annual report, showing challenges in revenue growth. The EBIT margin in the TTM stands at 17.5%, down from 25.2% annually, suggesting pressure on operational efficiency.
Balance Sheet
78
Positive
Cincinnati Financial maintains a strong balance sheet with a low debt-to-equity ratio of 0.062 in the TTM, reflecting prudent leverage management. The equity ratio has improved to 36.8%, indicating a solid capital structure. Return on equity has seen a decline to 10.5% in the TTM from 16.4%, highlighting reduced profitability relative to shareholder equity.
Cash Flow
82
Very Positive
The company's cash flow generation is robust, with a stable operating cash flow to net income ratio of 1.8 in the TTM. Free cash flow growth rate shows a slight decline of 2.19%, yet free cash flow remains strong at $2.59 billion. The free cash flow to net income ratio is high at 1.79, indicating effective cash conversion from net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.67B11.34B10.01B6.56B9.63B7.54B
Gross Profit8.04B11.34B10.01B6.56B9.63B7.54B
EBITDA2.45B3.04B2.44B-514.00M3.87B0.00
Net Income1.82B2.29B1.84B-487.00M2.97B1.22B
Balance Sheet
Total Assets38.84B36.50B32.77B29.73B31.39B27.54B
Cash, Cash Equivalents and Short-Term Investments995.00M983.00M907.00M1.26B1.14B900.00M
Total Debt859.00M875.00M874.00M891.00M897.00M899.00M
Total Liabilities24.54B22.57B20.67B19.17B18.28B16.75B
Stockholders Equity14.30B13.94B12.10B10.56B13.11B10.79B
Cash Flow
Free Cash Flow2.59B2.63B2.03B2.04B1.97B1.47B
Operating Cash Flow2.60B2.65B2.05B2.05B1.98B1.49B
Investing Cash Flow-1.57B-1.70B-1.61B-933.00M-1.06B-560.00M
Financing Cash Flow-811.00M-877.00M-801.00M-994.00M-685.00M-798.00M

Cincinnati Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price155.59
Price Trends
50DMA
150.14
Positive
100DMA
146.69
Positive
200DMA
144.34
Positive
Market Momentum
MACD
1.19
Negative
RSI
59.19
Neutral
STOCH
46.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CINF, the sentiment is Positive. The current price of 155.59 is above the 20-day moving average (MA) of 152.81, above the 50-day MA of 150.14, and above the 200-day MA of 144.34, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 46.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CINF.

Cincinnati Financial Risk Analysis

Cincinnati Financial disclosed 19 risk factors in its most recent earnings report. Cincinnati Financial reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cincinnati Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$27.30B16.3820.63%2.17%11.41%15.32%
78
Outperform
$24.33B13.3213.44%2.16%9.64%-15.08%
76
Outperform
$6.22B19.2119.49%3.86%10.29%-4.70%
73
Outperform
$11.41B15.0217.17%6.59%3.35%-14.16%
73
Outperform
$24.77B11.7413.23%1.66%8.51%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
68
Neutral
$13.26B15.228.54%7.81%6.12%-31.43%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CINF
Cincinnati Financial
155.59
23.36
17.67%
AFG
American Financial Group
139.68
14.52
11.60%
CNA
CNA Financial
48.95
1.75
3.71%
MKL
Markel
1,958.18
424.39
27.67%
RLI
RLI
67.76
-5.65
-7.70%
WRB
W. R. Berkley Corporation
72.92
15.66
27.35%

Cincinnati Financial Corporate Events

Dividends
Cincinnati Financial Declares Quarterly Cash Dividend
Positive
Aug 22, 2025

On August 22, 2025, Cincinnati Financial Corporation announced that its board of directors declared an 87 cents-per-share regular quarterly cash dividend, payable on October 15, 2025, to shareholders of record as of September 22, 2025. This announcement highlights the company’s strong capital position and its commitment to generating shareholder value, marking 65 consecutive years of increasing annual cash dividends, a milestone achieved by only a few public companies in the U.S.

Business Operations and StrategyFinancial Disclosures
Cincinnati Financial Releases Investor Presentation Slides
Neutral
Aug 11, 2025

On August 11, 2025, Cincinnati Financial Corporation released presentation slides for investor presentations starting August 12, 2025. The company reported a 4.6% Value Creation Ratio (VCR) for the first half of 2025, which is below its target range of 10% to 13%. Despite this, the company achieved significant growth in property casualty net written premiums and investment income. The second quarter of 2025 saw an increase in earnings per share and non-GAAP operating income, driven by higher renewal pricing and improved underwriting performance. The company continues to focus on premium growth, underwriting expertise, and strategic investments to enhance profitability and shareholder value.

Executive/Board Changes
Cincinnati Financial Expands Board with New Appointment
Positive
Jun 24, 2025

On June 20, 2025, Cincinnati Financial Corporation announced the expansion of its board of directors by appointing Edward S. Wilkins, CPA, as an independent director and member of its audit committee. Wilkins, a retired Audit & Assurance partner with Deloitte & Touche LLP, brings over 35 years of experience in the financial services sector, particularly in audit analytics and regulatory environments. His expertise is expected to enhance the board’s capabilities in navigating complex regulations and advancing the company’s analytical capabilities, thereby creating additional value for shareholders.

Business Operations and StrategyFinancial Disclosures
Cincinnati Financial Releases New Investor Presentation
Neutral
May 27, 2025

On May 27, 2025, Cincinnati Financial Corporation released presentation slides for investor presentations starting May 28, 2025. The slides highlight the company’s strategic focus on premium growth, investment income, and maintaining a competitive combined ratio. Despite a challenging first quarter in 2025, with a negative EPS and increased catastrophe losses, the company reported growth in net written premiums and investment income. Cincinnati Financial aims to enhance profitability through underwriting expertise, predictive modeling, and strategic investments, while expanding its market presence through new agency appointments and product offerings.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025