Cincinnati Financial Earnings Cheat Sheet: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component Cincinnati Financial Corporation (NASDAQ:CINF) dropped to a second quarter loss, but results topped expectations. 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 Second Quarter

Results: Swung to a loss of $49 million (30 cents per diluted share) in the quarter. The property and casualty insurance company had net income of $27 million or 17 cents per share in the year earlier quarter.

Revenue: Rose 11% to $975 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CINF beat the mean analyst estimate of a loss of 64 cents per share. It beat the average revenue estimate of $892 million.

Quoting Management: Steven J. Johnston, president and chief executive officer, commented: “The Cincinnati Insurance Companies were prepared – operationally and financially – for the pounding our own policyholders and the property casualty insurance industry took from this spring’s powerful storms. While the previously announced, record-breaking catastrophe losses depleted our operating earnings for the second quarter and first half of 2011, our capital and book value per share rose above 2010 year-end levels. Confident in our very strong balance sheet and risk management decisions, we were able to focus on what was important: outstanding claims service and our ongoing initiatives to grow our business and improve its profitability.”

Key Stats:

CINF’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $62 million in the first quarter, a profit of $126 million in the fourth quarter of the last fiscal year and $156 million in the third of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 33 cents versus a mean estimate of net income of 36 cents per share.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 4.7% to $929 million from the year earlier quarter.

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), Old Republic Intl. Corp. (NYSE:ORI), American Insurance Group (NYSE:AIG) and The Hanover Insurance Group, Inc. (NYSE:THG).

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(Source: Xignite Financials)

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