Cincinnati Financial Corporation (CINF) has reported 35.90 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $100 million, or $0.60 a share in the quarter, compared with $156 million, or $0.94 a share for the same period last year. Revenue during the quarter grew 3.88 percent to $1,312 million from $1,263 million in the previous year period. Net premium earned for the quarter increased 3.83 percent or $44 million to $1,192 million.
Total expenses move upBenefits, losses and expenses for the quarter were at $1,184 million, or 99.33 percent of premium earned from $1,047 million or 91.20 percent of premium earned in the last year period. Operating income for the quarter was $128 million, compared with $216 million in the previous year period. Net investment income was at $153 million for the quarter, up 2 percent or $3 million from year-ago period. The company has booked a loss on investments of $37 million in the quarter compared with a loss of $40 million for the previous year period.
Steven J. Johnston, president and chief executive officer, commented: "Positive contributions from both our investment and insurance operations increased our book value 10 percent for the year to $42.95 per share at December 31, 2016. We finished 2016 with a value creation ratio of 14.5 percent, exceeding our long-term objective of a 10 percent to 13 percent annual average.
Assets outpace liabilities growth
Total assets increased 7.93 percent or $1,498 million to $20,386 million on Dec. 31, 2016. On the other hand, total liabilities were at $13,326 million as on Dec. 31, 2016, up 6.94 percent or $865 million from year-ago. Return on assets stood at 0.56 percent in the quarter, down 0.34 from 0.89 percent in the last year period. At the same time, return on equity was at 1.42 percent in the quarter, down 1.01 from 2.43 percent in the last year period.
Investments move up
Investments stood at $15,500 million as on Dec. 31, 2016, up 7.47 percent or $1,077 million from year-ago. Meanwhile, yield on investments went down 5 basis points to 0.99 percent in the quarter. Meanwhile, reinsurance recoverables moved up 0.55 percent or $3 million over the year to $545 million on Dec. 31, 2016.
Total debt was at $846 million as on Dec. 31, 2016, down 1.17 percent or $10 million from year-ago. Shareholders equity stood at $7,060 million as on Dec. 31, 2016, up 9.85 percent or $633 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.12 percent in the quarter from 0.13 percent in the last year period.
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