News Release
| Cincinnati Financial First-quarter 2007 Net Income at $1.11 per Share and Operating Income* at 88 Cents |
|
CINCINNATI, May 2 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Financial Highlights
(Dollars in millions except
share data) Three months ended March 31,
2007 2006 Change %
Revenue Highlights
Earned premiums $ 815 $ 804 1.3
Investment income 148 139 7.1
Total revenues 1,031 1,607 (35.9)
Income Statement Data
Net income $ 194 $ 552 (64.8)
Net realized investment
gains and losses 41 421 (90.2)
Operating income* $ 153 $ 131 16.4
Per Share Data (diluted)
Net income $ 1.11 $ 3.13 (64.5)
Net realized investment
gains and losses 0.23 2.39 (90.4)
Operating income* $ 0.88 $ 0.74 18.9
Book value $ 39.08 $ 35.85 9.0
Cash dividend declared $ 0.355 $ 0.335 6.0
Weighted average shares
outstanding 174,274,157 176,127,404 (1.1)
Insurance Operations Highlights
Investment and Balance Sheet Highlights Full-year 2007 Outlook** * The Definitions of Non-GAAP Information and Reconciliation to
Comparable GAAP Measures on Page 11 defines and reconciles measures
presented in this release that are not based on Generally Accepted
Accounting Principles or Statutory Accounting Principles. New States and New Agency Appointments to Support Continued Growth "The value that local independent insurance agents bring to The Cincinnati Insurance Companies again proved itself in this year's first quarter," said John J. Schiff, Jr., CPCU, chairman and chief executive officer. "Their quality business submissions are helping us achieve profitable commercial lines premium growth. They are again selling the value of our homeowner and personal auto policies, as seen in our improved personal lines new business growth and policy retention. "With special efforts and teamwork, our agents, field representatives and headquarters associates have maintained positive underwriting momentum in the face of commercial lines competition that is softening pricing and pressuring margins across the industry. For our commercial and personal lines of insurance, loss severity continues to be higher than one year ago, although our severity measures held steady at the same level we saw in the second half of 2006," Schiff noted. "We have faced similarly challenging market conditions in the past, benefiting from agent and policyholder loyalty that grows out of our commitment to offer outstanding service and market stability through all stages of the pricing cycle." James E. Benoski, vice chairman, chief insurance officer and president, said, "We continue to invest in tools to meet our agents' long-term needs. We plan to increase their ease of doing business with us in 2007, further rolling out our Web-based policy processing systems and other tools. Cincinnati has earned a generous share of each agency's business over the years by offering the products and services they need to protect their local businesses and families. Our agents have indicated their desire to have Cincinnati available as a market for commercial accounts that require the flexibility of excess and surplus lines coverage. We now are taking steps to establish a new subsidiary to tap that opportunity for our agencies and our company. In 2008, we expect to begin seeing some premiums from excess and surplus lines." Benoski added, "In addition to growing with our current agencies, we also continue to build relationships with selected new agencies, whether by making agency appointments in our active states or by entering new geographic areas. We completed 12 agency appointments in the first three months, a good start toward achieving our target of approximately 55 to 60 for the year. These new appointments and other changes in agency structures brought total reporting agency locations to 1,291, compared with 1,289 at year-end 2006. "Our preparations to begin actively marketing in New Mexico and eastern Washington are on schedule for the second half of 2007, with agencies in those areas showing great interest in securing Cincinnati appointments." 2007 Property Casualty Outlook Update Kenneth W. Stecher, chief financial officer and executive vice president commented, "While we expect competition to continue accelerating in most property casualty business lines, we believe that our strong agency relationships will lead to full-year 2007 net written premium growth in the low single-digits. That estimate takes into account an anticipated $22 million increase in the premiums we pay for reinsurance." Stecher added, "Overall profitability was solid in the first quarter due to strong results from commercial lines, reflecting the benefits of low catastrophe losses and savings from favorable development on prior period reserves. With those benefits as well as a favorable expense comparison, first-quarter personal lines profitability also was acceptable. We remain concerned, however, about personal lines pricing and loss activity. "In light of our solid first-quarter performance, in mid-April we announced that we believe that the full-year combined ratio could be at or below 97 percent on either a GAAP or statutory basis. We make several assumptions to arrive at this estimate. First, we assume that catastrophe losses will contribute approximately 5.0 percentage points to the full-year ratio, down from 5.5 percentage points in 2006. "Second, we assume that the loss and loss expense ratio will rise on competitive pricing and higher loss costs. Third, we will benefit from full- year favorable reserve development in line with the 2 percentage points in savings from favorable development on prior period reserves that we averaged between 2000 and 2003. "Finally, we are assuming a full-year underwriting expense ratio of approximately 31.5 percent, reflecting continued investment in people and technology during a period of slowing premium growth," Stecher said. Investment Strategy Key to Long-term Growth and Stability Schiff continued, "After paying from cash flow all current liabilities such as claims, expenses, taxes and interest, we invest the remainder to generate income while increasing policyholder surplus and shareholders' equity. In the first quarter of 2007, we continued to buy fixed income securities to support our insurance liabilities. "In seeking long-term growth and stability, we also buy and hold common stocks of companies that regularly pay and increase their dividends," Schiff noted. "We are looking for pretax investment income growth in the range of 6.5 percent to 7.0 percent in 2007, and we continue to select and hold securities in our portfolio that give us an opportunity to further build book value, an important measure of our long-term success."
Property Casualty Insurance Operations
(Dollars in millions) Three months ended March 31,
2007 2006 Change %
Written premiums $ 846 $ 829 2.1
Earned premiums $ 785 $ 778 0.8
Loss and loss expenses excluding
catastrophes 455 432 5.1
Catastrophe loss and loss expenses 3 39 (91.8)
Commission expenses 161 157 2.5
Underwriting expenses 82 84 (2.8)
Policyholder dividends 3 4 (2.1)
Underwriting profit $ 81 $ 62 30.9
Ratios as a percent of earned premiums:
Loss and loss expenses excluding
catastrophes 57.9 % 55.6 %
Catastrophe loss and loss expenses 0.4 5.0
Loss and loss expenses 58.3 60.6
Commission expenses 20.5 20.2
Underwriting expenses 10.4 10.8
Policyholder dividends 0.4 0.4
Combined ratio 89.6 % 92.0 %
Catastrophe Loss and Loss Expenses Incurred
(In millions, net
of reinsurance) Three months ended March 31,
Commercial Personal
Dates Cause of loss Region lines lines Total
2007
Jan. 12-15 Wind, hail, Midwest $ 2 $ 1 $ 3
ice, snow
Feb. 14-15 Wind, hail, Mid-Atlantic 1 1 2
ice, snow
Feb. 23-25 Wind, hail, Midwest 3 0 3
ice, snow
Mar. 1-2 Wind, hail, South 6 2 8
flood
Development on 2006 and prior
catastrophes (2) (11) (13)
Calendar year incurred total $ 10 $ (7) $ 3
2006
Mar. 11-13 Wind, hail Midwest, Mid-
Atlantic $ 28 $ 10 $ 38
Development on 2005 and prior
catastrophes 1 0 1
Calendar year incurred total $ 29 $ 10 $ 39
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).
Commercial Lines Insurance Operations
(Dollars in millions) Three months ended March 31,
2007 2006 Change %
Written premiums $ 693 $ 668 3.8
Earned premiums $ 604 $ 582 3.7
Loss and loss expenses excluding
catastrophes 344 324 5.8
Catastrophe loss and loss expenses 10 29 (63.9)
Commission expenses 123 117 5.6
Underwriting expenses 57 53 5.9
Policyholder dividends 3 4 (2.1)
Underwriting profit $ 67 $ 55 21.3
Ratios as a percent of earned premiums:
Loss and loss expenses excluding
catastrophes 56.9 % 55.7 %
Catastrophe loss and loss expenses 1.8 5.1
Loss and loss expenses 58.7 60.8
Commission expenses 20.4 20.0
Underwriting expenses 9.3 9.1
Policyholder dividends 0.5 0.6
Combined ratio 88.9 % 90.5 %
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).
Personal Lines Insurance Operations
(Dollars in millions) Three months ended March 31,
2007 2006 Change %
Written premiums $ 153 $ 161 (5.1)
Earned premiums $ 181 $ 196 (7.6)
Loss and loss expenses excluding
catastrophes 111 108 2.8
Catastrophe loss and loss expenses (7) 10 (176.3)
Commission expenses 38 40 (6.6)
Underwriting expenses 25 31 (18.0)
Underwriting profit $ 14 $ 7 107.1
Ratios as a percent of earned premiums:
Loss and loss expenses excluding
catastrophes 61.4 % 55.1 %
Catastrophe loss and loss expenses (4.1) 5.0
Loss and loss expenses 57.3 60.1
Commission expenses 20.9 20.7
Underwriting expenses 13.8 15.6
Combined ratio 92.0 % 96.4 %
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).
Life Insurance Operations
(In millions) Three months ended March 31,
2007 2006 Change %
Written premiums $ 42 $ 40 5.5
Earned premiums $ 30 $ 26 15.7
Investment income, net of expenses 28 26 7.8
Other income 1 1 83.1
Total revenues, excluding realized
investment gains and losses 59 53 12.7
Policyholder benefits 27 30 (9.8)
Expenses 13 10 28.7
Total benefits and expenses 40 40 0.1
Net income before income tax and
realized investment gains and losses 19 13 53.3
Income tax 6 5 31.9
Net income before realized investment
gains and losses $ 13 $ 8 67.8
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).
Investment Operations
(In millions) Three months ended March 31,
2007 2006 Change %
Investment income:
Interest $ 76 $ 74 2.2
Dividends 72 62 16.7
Other 3 4 (18.0)
Investment expenses (3) (1) (102.0)
Total net investment income 148 139 7.1
Investment interest credited to contract
holders (14) (14) 2.8
Net realized investment gains and losses:
Realized investment gains and losses 61 659 (90.7)
Change in valuation of derivatives 1 2 (56.2)
Other-than-temporary impairment charges 0 (1) 100.0
Net realized investment gains 62 660 (90.6)
Investment operations income $ 196 $ 785 (75.0)
Balance Sheet
(Dollars in millions
except share data) At March 31, At December 31,
2007 2006
Balance sheet data
Invested assets $ 13,641 $ 13,759
Total assets 18,221 17,222
Short-term debt 49 49
Long-term debt 791 791
Shareholders' equity 6,708 6,808
Book value per share 39.08 39.38
Debt-to-capital ratio 11.1 % 11.0 %
Three months ended March 31,
2007 2006
Performance measures
Comprehensive income $ 13 $ 240
Return on equity 11.5 % 35.9 %
Return on equity based on
comprehensive income 0.8 15.7
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP). Cincinnati Financial Corporation offers property and casualty insurance, our main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life and disability income insurance and annuities. CFC Investment Company offers commercial leasing and financing services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals. For additional information about the company, please visit www.cinfin.com. For additional information or to register for this morning's conference call webcast, please visit www.cinfin.com/investors. This is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2006 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 20. Although we often review or update our forward-looking statements when events warrant, we caution our readers that we undertake no obligation to do so. Factors that could cause or contribute to such differences include, but are not limited to:
Further, the company's insurance businesses are subject to the effects of changing social, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as recent measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.
Cincinnati Financial Corporation
Consolidated Balance Sheets
(Dollars in millions except per share data) March 31, December 31,
2007 2006
(unaudited)
ASSETS
Investments
Fixed maturities, at fair value
(amortized cost: 2007-$5,785;
2006-$5,739) $ 5,864 $ 5,805
Equity securities, at fair value 7,687 7,799
(cost: 2007-$2,802; 2006-$2,621)
Short-term investments, at fair value 19 95
(amortized cost: 2007-$19; 2006-$95)
Other invested assets 71 60
Total investments 13,641 13,759
Cash and cash equivalents 197 202
Securities lending collateral 984 0
Investment income receivable 117 121
Finance receivable 103 108
Premiums receivable 1,173 1,128
Reinsurance receivable 727 683
Prepaid reinsurance premiums 12 13
Deferred policy acquisition costs 467 453
Land, building and equipment, net, for
company use (accumulated depreciation:
2007-$268; 2006-$261) 204 193
Other assets 85 58
Separate accounts 511 504
Total assets $ 18,221 $ 17,222
LIABILITIES
Insurance reserves
Loss and loss expense reserves $ 3,928 $ 3,896
Life policy reserves 1,427 1,409
Unearned premiums 1,640 1,579
Securities lending payable 984 0
Other liabilities 652 533
Deferred income tax 1,531 1,653
Note payable 49 49
6.125% senior notes due 2034 371 371
6.9% senior debentures due 2028 28 28
6.92% senior debentures due 2028 392 392
Separate accounts 511 504
Total liabilities 11,513 10,414
SHAREHOLDERS' EQUITY
Common stock, par value-$2 per share;
(authorized: 2007-500 million shares,
2006-500 million shares; issued: 2007-196
million shares, 2006-196 million shares) 392 391
Paid-in capital 1,027 1,015
Retained earnings 2,923 2,786
Accumulated other comprehensive income 3,193 3,379
Treasury stock at cost (2007-24 million
shares, 2006-23 million shares) (827) (763)
Total shareholders' equity 6,708 6,808
Total liabilities and shareholders' equity $ 18,221 $ 17,222
Cincinnati Financial Corporation
Consolidated Statements of Income
(In millions except per share data) Three months ended March 31,
2007 2006
(unaudited)
REVENUES
Earned premiums
Property casualty $ 785 $ 778
Life 30 26
Investment income, net of expenses 148 139
Realized investment gains and losses 62 660
Other income 6 4
Total revenues 1,031 1,607
BENEFITS AND EXPENSES
Insurance losses and policyholder
benefits 484 501
Commissions 170 166
Other operating expenses 88 83
Taxes, licenses and fees 20 24
Increase in deferred policy acquisition
costs (15) (14)
Interest expense 13 13
Total benefits and expenses 760 773
INCOME BEFORE INCOME TAXES 271 834
PROVISION (BENEFIT) FOR INCOME TAXES
Current 77 292
Deferred 0 (10)
Total provision for income taxes 77 282
NET INCOME $ 194 $ 552
PER COMMON SHARE
Net income-basic $ 1.12 $ 3.17
Net income-diluted $ 1.11 $ 3.13
Definitions of Non-GAAP Information and
Reconciliation to Comparable GAAP Measures
(See attached tables for 2007 and 2006 data;
prior-period reconciliations available at www.cinfin.com/investors.)
Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data. Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas -- property casualty insurance, life insurance and investments -- when analyzing both GAAP and certain non-GAAP measures may improve understanding of trends in the underlying business, helping avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management's control; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
For these reasons, many investors and shareholders consider operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents operating income so that all investors have what management believes to be a useful supplement to GAAP information.
Cincinnati Financial Corporation
Quarterly Net Income Reconciliation
(In millions except per share data)
Three months ended
12/31/07 9/30/07 6/30/07 3/31/07
Net income $194
Net realized investment
gains and losses 41
Operating income 153
Less catastrophe losses (2)
Operating income before
catastrophe losses $155
Diluted per share data
Net income $1.11
Net realized investment
gains and losses 0.23
Operating income 0.88
Less catastrophe losses (0.01)
Operating income before
catastrophe losses $0.89
(In millions except per share data)
Three months ended
12/31/06 9/30/06 6/30/06 3/31/06
Net income $130 $115 $132 $552
Net realized investment
gains and losses 8 - 6 421
Operating income 122 115 126 131
Less catastrophe losses (29) (18) (41) (26)
Operating income before
catastrophe losses $151 $133 $167 $157
Diluted per share data
Net income $0.75 $0.66 $0.76 $3.13
Net realized investment
gains and losses 0.05 - 0.04 2.39
Operating income 0.70 0.66 0.72 0.74
Less catastrophe losses (0.16) (0.10) (0.24) (0.14)
Operating income before
catastrophe losses $0.86 $0.76 $0.96 $0.88
(In millions except per share data)
Six months Nine months Twelve months
ended ended ended
6/30/07 6/30/06 9/30/07 9/30/06 12/31/07 12/31/06
Net income $684 $800 $930
Net realized
investment gains
and losses 426 427 434
Operating income 258 373 496
Less catastrophe
losses (67) (85) (113)
Operating income
before cata-
strophe losses $325 $458 $609
Diluted per share
data
Net income $3.90 $4.56 $5.30
Net realized
investment gains
and losses 2.43 2.43 2.48
Operating income 1.47 2.13 2.82
Less catastrophe
losses (0.38) (0.48) (0.65)
Operating income
before cata-
strophe losses $1.85 $2.61 $ 3.47
Dollar amounts shown are rounded to millions; certain amounts may not add
due to rounding. Ratios are calculated based on whole dollar amounts. The
sum of quarterly amounts may not equal the full year as each is computed
independently.
Cincinnati Insurance Group
Quarterly Property Casualty Data - Consolidated
(Dollars in millions)
Three months ended
12/31/07 9/30/07 6/30/07 3/31/07
Premiums
Adjusted written premiums
(statutory) $811
Written premium adjustment-
statutory only 35
Reported written premiums
(statutory)* $846
Unearned premiums change (61)
Earned premiums $785
Statutory combined ratio
Statutory combined ratio 87.7 %
Less catastrophe losses 0.4
Statutory combined ratio
excluding catastrophe losses 87.3 %
Commission expense ratio 18.0 %
Other expense ratio 11.4 %
Statutory expense ratio 29.4 %
GAAP combined ratio
GAAP combined ratio 89.6 %
(Dollars in millions)
Three months ended
12/31/06 9/30/06 6/30/06 3/31/06
Premiums
Adjusted written premiums
(statutory) $785 $787 $804 $796
Written premium adjustment-
statutory only (30) (7) 10 33
Reported written premiums
(statutory)* $755 $780 $814 $829
Unearned premiums change 47 11 (21) (51)
Earned premiums $802 $791 $793 $778
Statutory combined ratio
Statutory combined ratio 95.9 % 96.4 % 93.7 % 89.6 %
Less catastrophe losses 5.5 3.5 8.0 5.0
Statutory combined ratio
excluding catastrophe losses 90.4 % 92.9 % 85.7 % 84.6 %
Commission expense ratio 19.9 % 19.3 % 17.6 % 18.2 %
Other expense ratio 13.4 % 11.9 % 10.8 % 10.8 %
Statutory expense ratio 33.3 % 31.2 % 28.4 % 29.0 %
GAAP combined ratio
GAAP combined ratio 94.5 % 96.1 % 94.5 % 92.0 %
(Dollars in millions)
Six months Nine months Twelve months
ended ended ended
6/30/07 6/30/06 9/30/07 9/30/06 12/31/07 12/31/06
Premiums
Adjusted written
premiums
(statutory) $1,600 $2,387 $3,172
Written premium
adjustment-
statutory only 43 36 6
Reported written
premiums
(statutory)* $1,643 $2,423 $3,178
Unearned premiums
change (72) (60) (14)
Earned premiums $1,571 $2,363 $3,164
Statutory combined
ratio
Statutory combined
ratio 91.7 % 93.2 % 93.9 %
Less catastrophe
losses 6.5 5.5 4.1
Statutory combined
ratio excluding
catastrophe losses 85.2 % 87.7 % 89.8 %
Commission expense
ratio 17.9 % 18.3 % 18.7 %
Other expense ratio 10.8 % 11.2 % 11.7 %
Statutory expense ratio 28.7 % 29.5 % 30.4 %
GAAP combined ratio
GAAP combined ratio 93.3 % 94.2 % 94.3 %
* Dollar amounts shown are rounded to millions; certain amounts may not
add due to rounding. Ratios are calculated based on whole dollar
amounts. The sum of quarterly amounts may not equal the full year as
each is computed independently.
* nm - Not meaningful
* Statutory data prepared in accordance with statutory accounting rules as
defined by the National Association of Insurance Commissioners and filed
with the appropriate regulatory bodies.
Cincinnati Insurance Group
Quarterly Property Casualty Data - Commercial Lines
(Dollars in millions)
Three months ended
12/31/07 9/30/07 6/30/07 3/31/07
Premiums
Adjusted written premiums
(statutory) $658
Written premium adjustment --
statutory only 35
Reported written premiums
(statutory)* $693
Unearned premiums change (89)
Earned premiums $604
Statutory combined ratio
Statutory combined ratio 86.5 %
Less catastrophe losses 1.8
Statutory combined ratio
excluding catastrophe losses 84.7 %
GAAP combined ratio
GAAP combined ratio 88.9 %
(Dollars in millions)
Three months ended
12/31/06 9/30/06 6/30/06 3/31/06
Premiums
Adjusted written premiums
(statutory) $618 $589 $593 $635
Written premium adjustment --
statutory only (29) (7) 10 33
Reported written premiums
(statutory)* $589 $582 $603 $668
Unearned premiums change 30 20 (4) (86)
Earned premiums $619 $602 $599 $582
Statutory combined ratio
Statutory combined ratio 92.4 % 94.1 % 89.6 % 87.5 %
Less catastrophe losses 1.9 2.3 5.6 5.1
Statutory combined ratio
excluding catastrophe losses 90.5 % 91.8 % 84.0 % 82.4 %
GAAP combined ratio
GAAP combined ratio 91.1 % 93.4 % 90.3 % 90.5 %
(Dollars in millions)
Six months Nine months Twelve months
ended ended ended
6/30/07 6/30/06 9/30/07 9/30/06 12/31/07 12/31/06
Premiums
Adjusted written
premiums
(statutory) $1,228 $1,817 $2,435
Written premium
adjustment --
statutory only 43 36 7
Reported written
premiums
(statutory)* $1,271 $1,853 $2,442
Unearned premiums
change (90) (69) (40)
Earned premiums $1,181 $1,784 $2,402
Statutory combined
ratio
Statutory combined
ratio 88.6 % 90.3 % 90.8 %
Less catastrophe
losses 5.3 4.3 3.7
Statutory combined
ratio excluding
catastrophe losses 83.3 % 86.0 % 87.1 %
GAAP combined ratio
GAAP combined ratio 90.4 % 91.4 % 91.3 %
* Dollar amounts shown are rounded to millions; certain amounts may not
add due to rounding. Ratios are calculated based on whole dollar
amounts. The sum of quarterly amounts may not equal the full
year as each is computed independently.
* nm - Not meaningful
* Statutory data prepared in accordance with statutory accounting rules as
defined by the National Association of Insurance Commissioners and filed
with the appropriate regulatory bodies.
Cincinnati Insurance Group
Quarterly Property Casualty Data - Personal Lines
(Dollars in millions)
Three months ended
12/31/07 9/30/07 6/30/07 3/31/07
Premiums
Adjusted written premiums
(statutory) $153
Written premium adjustment --
statutory only -
Reported written premiums
(statutory)* $153
Unearned premiums change 28
Earned premiums $181
Statutory combined ratio
Statutory combined ratio 93.5 %
Less catastrophe losses (4.1)
Statutory combined ratio
excluding catastrophe losses 97.6 %
GAAP combined ratio
GAAP combined ratio 92.0 %
(Dollars in millions)
Three months ended
12/31/06 9/30/06 6/30/06 3/31/06
Premiums
Adjusted written premiums
(statutory) $167 $198 $211 $161
Written premium adjustment--
statutory only (1) - - -
Reported written premiums
(statutory)* $166 $198 $211 $161
Unearned premiums change 17 (9) (17) 35
Earned premiums $183 $189 $194 $196
Statutory combined ratio
Statutory combined ratio 107.7 % 104.0 % 106.4 % 98.1 %
Less catastrophe losses 17.9 7.1 15.6 5.0
Statutory combined ratio
excluding catastrophe losses 89.8 % 97.0 % 90.8 % 93.1 %
GAAP combined ratio
GAAP combined ratio 106.0 % 104.4 % 107.6 % 96.4 %
(Dollars in millions)
Six months Nine months Twelve months
ended ended ended
6/30/07 6/30/06 9/30/07 9/30/06 12/31/07 12/31/06
Premiums
Adjusted written
premiums
(statutory) $372 $570 $737
Written premium
adjustment--
statutory only - - (1)
Reported written
premiums
(statutory)* $372 $570 $736
Unearned premiums
change 18 9 26
Earned premiums $390 $579 $762
Statutory combined
ratio
Statutory combined
ratio 101.6 % 102.3 % 103.6 %
Less catastrophe
losses 10.3 9.2 11.3
Statutory combined
ratio excluding
catastrophe losses 91.3 % 93.1 % 92.3 %
GAAP combined ratio
GAAP combined ratio 102.0 % 102.8 % 103.6 %
* Dollar amounts shown are rounded to millions; certain amounts may not
add due to rounding. Ratios are calculated based on whole dollar
amounts. The sum of quarterly amounts may not equal the full
year as each is computed independently.
* nm - Not meaningful
* Statutory data prepared in accordance with statutory accounting rules as
defined by the National Association of Insurance Commissioners and filed
with the appropriate regulatory bodies.
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