Cincinnati Financial Reports $90 Million Net Loss in Q1 2025

Cincinnati Financial Corporation reported a net loss of $90 million for the first quarter of 2025, a significant decline from the net income of $755 million recorded in the same period of 2024. This loss translates to a diluted loss per share of $0.57, compared to earnings of $4.78 per share a year earlier. The company's total revenues decreased to $2.566 billion, down from $2.935 billion in the prior year, primarily due to a substantial reduction in investment gains, which fell from $612 million to a loss of $67 million. Despite a 13% increase in earned premiums, which rose to $2.344 billion, the overall financial performance was adversely affected by higher insurance losses and expenses.

The company's total assets increased to $37.276 billion as of March 31, 2025, up from $36.501 billion at the end of 2024. This growth was driven by a rise in total investments, which reached $28.481 billion, compared to $28.378 billion previously. However, shareholders' equity decreased to $13.718 billion from $13.935 billion, reflecting a decline in retained earnings and an increase in accumulated other comprehensive losses. The company's debt-to-total-capital ratio remained stable at 5.6%, indicating a strong capital position.

Operationally, Cincinnati Financial experienced a 49% increase in loss and loss expenses, which totaled $1.887 billion for the quarter, largely due to significant catastrophe losses from wildfires in California. The combined ratio for the property casualty insurance segment deteriorated to 113.3%, up from 93.6% in the prior year, indicating that the company's losses and expenses exceeded its premiums. The company reported a 14% increase in investment income, which reached $280 million, but this was overshadowed by the losses in investment gains.

In terms of strategic developments, Cincinnati Financial continues to focus on premium growth, with net written premiums in the property casualty segment increasing by 11% year-over-year. The company actively markets its insurance products through 2,199 agencies across 46 states. The board of directors declared a quarterly dividend of $0.87 per share, reflecting a 7% increase from the previous year, underscoring the company's commitment to returning value to shareholders despite the current financial challenges. Looking ahead, Cincinnati Financial remains focused on improving underwriting performance and managing investment risks, while navigating the impacts of market conditions and operational challenges.