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• Net Income (Q4 2024): $405 million, including a $107 million after-tax decrease in fair value of equity securities.

• Net Income (Full Year 2024): Increased by 24%.

• Non-GAAP Operating Income (Q4 2024): Increased 38% to $497 million.

• Non-GAAP Operating Income (Full Year 2024): Rose 26%.

• Combined Ratio (Q4 2024): 84.7%, improved by 2.8 percentage points from the previous year.

• Combined Ratio (Full Year 2024): 93.4%, improved by 1.5 points from 2023.

• Net Written Premiums Growth (Q4 2024): 17%, with 15% growth in agency renewal premiums and 23% in new business premiums.

• Commercial Lines Net Written Premiums Growth (Full Year 2024): 8%, with a combined ratio improvement of 3 percentage points to 93.2%.

• Personal Lines Net Written Premiums Growth (Full Year 2024): 30%, with a combined ratio improvement of 2.9 percentage points to 97.5%.

• Excess and Surplus Lines Net Written Premiums Growth (Full Year 2024): 15%, with a combined ratio of 94.0%.

• Investment Income (Full Year 2024): Reached $1 billion, growing 17% for Q4 and 15% for the full year.

• Cash Flow from Operating Activities (Full Year 2024): $2.6 billion, up 29% from last year.

• Property Casualty Underwriting Expense Ratio (Full Year 2024): 29.9%, in line with 2023.

• Capital Returned to Shareholders (Full Year 2024): $490 million in dividends and share repurchases.

• Book Value Per Share (End of Q4 2024): Record high of $89.11.

• Warning! GuruFocus has detected 2 Warning Sign with CINF.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cincinnati Financial Corp (NASDAQ:CINF) reported strong operating performance for the fourth quarter and full year 2024, with improvements in key areas.

• The company achieved a 24% increase in net income for the year and a 38% increase in non-GAAP operating income for the fourth quarter.

• CINF's property casualty combined ratio improved to 93.4% for the full year, reflecting better underwriting performance.

• The company experienced strong premium growth, with a 17% increase in net written premiums for the quarter.

• Investment income reached $1 billion for the year, contributing significantly to improved operating performance.

Negative Points

• Cincinnati Financial Corp (NASDAQ:CINF) faced a significant unfavorable swing of $931 million in the fair value of equity securities compared to the previous year.

• The company estimated first quarter 2025 pretax catastrophe losses of approximately $450 million to $525 million due to California wildfires.

• Dividend income decreased by 4% in the fourth quarter, driven by sales of equity securities.

• The valuation changes in the investment portfolio were unfavorable, with a net loss of $136 million for the equity portfolio and $350 million for the bond portfolio.

• The company experienced reserve strengthening in personal auto and excess and surplus lines due to higher than expected case incurred losses.