Cincinnati Financial reports Q1 non-GAAP EPS $1.72, consensus $1.69

Reports Q1 revenue $2.94B, consensus $2.48B. CEO Steven Johnston commented: “Non-GAAP operating income nearly doubled last year’s Q1 results, reaching $272M on steady contributions from our underwriting and investment operations. Pretax investment income rose $35M in Q1 as bond interest grew 21% and dividends from our equity portfolio increased 9%. Turning to our insurance operations, our Q1 combined ratio improved 7.1 percentage points over last year’s first quarter to 93.6%. Lower catastrophe losses contributed to most of the improvement and our current accident year combined ratio before catastrophe losses improved for our commercial, personal and excess and surplus lines business. The profitability of Cincinnati Re and Cincinnati Global Underwriting Ltd. remain excellent. The first quarter of 2023 was exceptionally profitable for these areas of our company with a current accident year combined ratio before catastrophe losses in the low 70s. In Q1 of this year, that measure is in the low 90s – more in line with the rest of our property casualty insurance business.”