Cincinnati Financial Corporation has reported an improved combined ratio of 92.6% compared to 103.6%.
At 92.6%, this quarter reflects a profitable income. It was made up of loss expenses of 61.9% compared to 73.8% from the same prior year period.
The underwriting expenses were reported at 30.7%, slightly higher than Q3 2020’s 29.8%.
The company also reported a net income of $153 million compared with $484 million in the third quarter of 2020.
The $331 million decrease in net income is primarily due to the after-tax net effect of a $477 million decrease in net investment gains partially offset by a $136 million increase in after-tax property casualty underwriting income.
It also reported a 10% growth in third-quarter net written premiums, reflecting price increases and premium growth initiatives.
Steven J. Johnston, chairman, president and CEO, commented: “After a fairly quiet start to the year from a weather-related catastrophe standpoint, August and September brought hail, wind and flooding to many parts of the country.
“We were ready to respond, quickly sending teams of our own field claims associates to the most impacted areas. Through their consistent and coordinated approach, we were able to quickly review claims to determine the appropriate payment based on the policy contract.
“This quarter is a nice example of the impact our growth, profitability and diversification initiatives are having on our insurance business. While catastrophe losses for the quarter outpaced our 5-year average of 9.8% for the third quarter by 4.4 points, our combined ratio came in at a satisfactory 92.6%.
“That improvement reflects our continued efforts in pricing segmentation across our organization and the strong collaboration we enjoy between our associates in sales, underwriting and analytics.”
