Cincinnati Financial Earnings Cheat Sheet: Net Income Declines Year Over Year

S&P 500 (NYSE:SPY) component Cincinnati Financial Corporation (NASDAQ:CINF) posted lower net income in the first quarter compared with a year-earlier period. Through independent insurance agents in 37 states, Cincinnati Financial Corporation’s markets property casualty insurance.

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Cincinnati Financial Earnings Cheat Sheet for the First Quarter

Results: Net income for the property and casualty insurance company fell to $62 million (38 cents/share) vs. $68 million (42 cents/share) a year earlier. A decline of 8.8% from the year earlier quarter.

Revenue: Rose 4.7% to $929 million YoY.

Actual vs. Wall St. Expectations: Estimates, which often factor in adjustments to net income, ranged from 31 cents per share to 46 cents per share for CINF. The mean estimate was 36 cents per share.

Quoting Management: Kenneth W. Stecher, president and chief executive officer, commented, “Cincinnati Financial increased our book value, invested assets, unrealized gains, and the surplus of our insurance companies during the first quarter of 2011. A higher mix of equities compared with most of our peers in the insurance industry gives our portfolio more opportunity to hold its market value when interest rates rise and reduce bond values. Unrealized gains for our investment portfolio increased over 10 percent with the equity security portion increasing over 15 percent.”

Competitors to Watch: American Financial Group (NYSE:AFG), Selective Insurance Group (NASDAQ:SIGI), United Fire & Casualty (NASDAQ:UFCS), CNA Financial Corporation (NYSE:CNA), Harleysville Group Inc. (NASDAQ:HGIC), Markel Corporation (NYSE:MKL), W.R. Berkley Corporation (NYSE:WRB), The Travelers Companies, Inc. (NYSE:TRV), American International Group (NYSE:AIG), Old Republic Intl. Corp. (NYSE:ORI), and The Hanover Insurance Group, Inc. (NYSE:THG).

Today’s Performance: Shares of CINF are unchanged in after hours trading.


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