CINF Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 13, 2026 astatine 11:46 AM CDT 30 min read

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DATE

Tuesday, April 29, 2025 astatine 11 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Stephen Spray

• Chief Financial Officer — Michael J. Sewell

Full Conference Call Transcript

Stephen Spray: Good morning, and convey you for joining america contiguous to perceive much astir our results. The archetypal 4th of 2025 had its stock of challenges from the wildfires successful California to freezing and flooding crossed the plains to upwind and h2o successful the Midwest and East Coast. Almost each country of the state was impacted by a weather-related catastrophe this quarter. While catastrophe losses tin dampen net connected a short-term basis, we cognize they contiguous an accidental for our claims work to radiance and reenforce the noble intent of our business. Our claims professionals again demonstrated the worth of a Cincinnati argumentation by helping policyholders retrieve from damaged homes and businesses.

I'm arrogant of the mode they person responded with punctual and idiosyncratic work and handling each assertion with attraction and empathy. The effects of these catastrophes offset different profitable results from our security operations and beardown concern income that continued to turn astatine a double-digit percent pace. As I look deeper into our results for the quarter, I spot respective areas of beardown performance. I stay assured successful our semipermanent plans and our quality to execute connected our proven strategy. In summation to increasing concern income, spot casualty premiums continued to summation astatine a bully gait and included beardown renewal pricing.

Our commercialized lines security conception produced a superb combined ratio of 91.9%, continuing its dependable betterment implicit the past 3 years. Our excess and surplus lines besides had an outstanding quarter, including a combined ratio beneath 90%. In presumption of consolidated results connected our income statement, we reported a nett nonaccomplishment of $90 cardinal for the archetypal 4th of 2025, including designation of $56 cardinal connected an after-tax ground for the alteration successful just worth of equity securities inactive held. It besides included a non-GAAP operating nonaccomplishment of $37 million, a plaything of $309 cardinal from a twelvemonth ago. The alteration was driven by a $356 cardinal summation successful after-tax catastrophe losses.

Our 113.3% archetypal 4th 2025 spot casualty combined ratio was 19.7 percent points higher than the archetypal 4th of past year, including an summation of 19.1 points for catastrophe losses. Our 90.5% mishap twelvemonth 2025 combined ratio earlier catastrophe losses improved by 0.6 percent points compared with mishap twelvemonth 2024 for the archetypal quarter. Without the effects of reduced premiums from reinstating reinsurance treaties related to the California wildfires, it would person improved an further 2 percent points. During the archetypal 4th of 2025, our catastrophe reinsurance programme responded arsenic intended for a ample event.