Cincinnati Financial Q2 Profit Hit by Cat Losses; Shares Drop 5.1% After Hours
CINF sits 22% above its 52-week low of $143.874.
Summary
Cincinnati Financial's Q2 profit fell as catastrophe losses surged, with the combined ratio deteriorating to 100.8% from 94.9% a year ago. The company took a $61 million after-tax hit from severe weather, particularly in Ohio, where losses were nearly four times the five-year average. Adjusted operating income dropped to $224 million ($1.43/share) from $311 million ($1.97/share). Shares fell 5.1% in extended trading, reflecting the market's negative reaction to the underwriting weakness. This follows an earlier report highlighting a net income jump to $1.255 billion, but the new details on catastrophe costs and the after-hours price move provide a more complete picture of the quarter's challenges.
At the time of this announcement, CINF was trading at $176.04 on NASDAQ in the Finance sector, with a market capitalization of approximately $28.5B. The 52-week trading range was $143.87 to $194.81. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.