0.56%
-3.24%
-1.27%
6.45%
25.49%
18.00%
32.48%
AI Spotlight on CINF
Company Description
Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States.The company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation.
It also provides director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; and machinery and equipment coverage.The Personal Lines Insurance segment offers personal auto insurance; homeowner insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals.The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to various causes, such as fire, wind, hail, water, theft, and vandalism.
The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life; and whole life insurance products.The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, and redeemable preferred stocks; and equity investments comprising common and nonredeemable preferred stocks.The company also offers commercial leasing and financing services; and insurance brokerage services.
Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.
Market Data
| Last Price | 139.04 |
| Change Percentage | 0.56% |
| Open | 139.21 |
| Previous Close | 138.27 |
| Market Cap ( Millions) | 21734 |
| Volume | 491597 |
| Year High | 161.75 |
| Year Low | 104.78 |
| M A 50 | 147.19 |
| M A 200 | 132.18 |
Financial Ratios
| FCF Yield | 11.77% |
| Dividend Yield | 2.33% |
| ROE | 23.92% |
| Debt / Equity | 6.33% |
| Net Debt / EBIDTA | -29.18% |
| Price To Book | 1.57 |
| Price Earnings Ratio | 7.07 |
| Price To FCF | 8.5 |
| Price To sales | 1.79 |
| EV / EBITDA | 6.93 |
News
- Jan -24 - What Can The Dividend Kings Deliver In 2025?
- Jan -23 - Cincinnati Financial: This Dividend King Is Still Buyable Now
- Jan -15 - CINF Rises 30% in a Year: Time to Buy the Stock for Solid Returns?
- Jan -08 - Cincinnati Financial Schedules Webcast to Discuss Fourth-Quarter and Full-Year 2024 Results
- Dec -30 - Highest Quality Dividend Kings For 2025
- Dec -26 - Revisiting Cincinnati Financial: A Unique Investment Strategy For A Fairly-Valued Steady Dividend Aristocrat
- Dec -19 - 5 Dividend-Paying Insurers Worth Watching for Steady Income in 2025
- Dec -16 - CINF Stock Rises 47.1% YTD: A Signal for Investors to Hold Tight?
- Dec -12 - Cincinnati Financial Corporation Enhances Insurance Operations Structure to Drive Continued Success
- Nov -27 - The Zacks Analyst Blog First American Financial, Cincinnati Financial, CNA Financial and American Financial
- Nov -26 - 4 Dividend-Paying P&C Stocks to Watch in the Insurance Space
- Nov -20 - AXS or CINF: Which Is the Better Value Stock Right Now?
- Nov -15 - Cincinnati Financial Corporation Declares Regular Quarterly Cash Dividend
- Nov -15 - Cincinnati Financial Corporation Announces Changes to Board of Directors
- Nov -15 - Zacks Industry Outlook The Progressive, Chubb, The Travelers, The Allstate and Cincinnati Financial
- Nov -14 - 5 P&C Insurance Stocks to Gain From Prudent Underwriting
- Nov -09 - Want Reliable Income? These 5 Stocks Have Raised Their Dividend Over the Last 4 Recessions.
- Nov -04 - AXS vs. CINF: Which Stock Is the Better Value Option?
- Nov -02 - Cincinnati Financial: Improved Results Are Reflected In Valuation (Rating Downgrade)
- Nov -01 - 3 Stocks to Buy From the Schwab U.S. Dividend Equity ETF
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Commercial Lines Insurance
Expected Growth : 1.2 %
What the company do ?
Commercial Lines Insurance from Cincinnati Financial Corporation provides coverage for businesses, including liability, property, and workers' compensation insurance to protect against various risks.
Why we expect these perspectives ?
Cincinnati Financial Corporation's Commercial Lines Insurance growth of 1.2% is driven by a strong economy, increased demand for risk management, and a competitive pricing environment. Additionally, the company's strategic expansion into new markets, improved underwriting capabilities, and enhanced digital distribution channels have contributed to this growth.
Segment n°2 -> Personal Lines Insurance
Expected Growth : 0.8 %
What the company do ?
Personal Lines Insurance from Cincinnati Financial Corporation offers home, auto, and umbrella insurance to individuals and families, providing financial protection and peace of mind.
Why we expect these perspectives ?
Cincinnati Financial Corporation's Personal Lines Insurance segment growth of 0.8% is driven by increasing demand for auto and homeowners insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting, and enhanced customer experience contribute to the growth.
Segment n°3 -> Investments
Expected Growth : 1.5 %
What the company do ?
Cincinnati Financial Corporation's investments include a diversified portfolio of fixed-maturity securities, equity securities, and other investments, generating income and supporting business growth.
Why we expect these perspectives ?
Cincinnati Financial Corporation's 1.5% growth is driven by a combination of factors, including a strong underwriting discipline, favorable reserve development, and a diversified portfolio of commercial and personal lines. Additionally, the company's disciplined capital management, strategic investments, and a solid balance sheet contribute to its steady growth.
Segment n°4 -> Other
Expected Growth : 0.5 %
What the company do ?
Other from Cincinnati Financial Corporation refers to the company's non-insurance and non-investment activities, including fees from its subsidiaries.
Why we expect these perspectives ?
Cincinnati Financial Corporation's 0.5 growth in 'Other' segment is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and operational efficiency has led to cost savings, which are being reinvested in growth initiatives.
Segment n°5 -> Excess and Surplus Lines Insurance
Expected Growth : 1.1 %
What the company do ?
Excess and Surplus Lines Insurance from Cincinnati Financial Corporation provides specialized coverage for unique or hard-to-place risks that don't fit standard insurance policies.
Why we expect these perspectives ?
Cincinnati Financial Corporation's Excess and Surplus Lines Insurance segment growth of 1.1% is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on underwriting discipline, risk selection, and pricing strategies have contributed to the growth. Furthermore, the segment's ability to adapt to changing market conditions and regulatory environments has also supported its growth.
Segment n°6 -> Life Insurance
Expected Growth : 0.9 %
What the company do ?
Cincinnati Financial Corporation's Life Insurance provides financial protection to beneficiaries in the event of the policyholder's death, offering whole life, term life, and universal life insurance products.
Why we expect these perspectives ?
Cincinnati Financial Corporation's Life Insurance segment growth of 0.9% is driven by increasing demand for term life and whole life insurance products, expansion of distribution channels, and strategic partnerships. Additionally, favorable regulatory environments, rising disposable incomes, and growing awareness of insurance benefits contribute to the segment's growth.
Cincinnati Financial Corporation Products
| Product Range | What is it ? |
|---|---|
| Commercial Lines Insurance | Provides insurance coverage for businesses, including property, liability, and workers' compensation insurance. |
| Personal Lines Insurance | Offers insurance coverage for individuals, including auto, home, and umbrella insurance. |
| Excess and Surplus Lines Insurance | Provides specialized insurance coverage for unique or hard-to-place risks, such as high-value homes or unusual business operations. |
| Life Insurance | Offers life insurance policies, including term life, whole life, and universal life insurance. |
| Annuities | Provides financial products that offer a steady income stream for a set period or for life. |
| Reinsurance | Offers reinsurance coverage to other insurance companies, helping them manage their risk and increase their capacity. |
Cincinnati Financial Corporation's Porter Forces
Threat Of Substitutes
Cincinnati Financial Corporation operates in the insurance industry, where substitutes are limited. However, the company faces competition from other insurance providers, which can be considered as substitutes.
Bargaining Power Of Customers
Cincinnati Financial Corporation's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.
Bargaining Power Of Suppliers
Cincinnati Financial Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power over its suppliers.
Threat Of New Entrants
The insurance industry has high barriers to entry, including regulatory requirements and capital requirements. This limits the threat of new entrants to Cincinnati Financial Corporation.
Intensity Of Rivalry
The insurance industry is highly competitive, with many established players competing for market share. Cincinnati Financial Corporation faces intense rivalry from its competitors, which can impact its market share and profitability.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 6.74% |
| Debt Cost | 7.14% |
| Equity Weight | 93.26% |
| Equity Cost | 7.14% |
| WACC | 7.14% |
| Leverage | 7.22% |
Cincinnati Financial Corporation : Quality Control
Cincinnati Financial Corporation passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CNA | CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The … |
| MKL | Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, the Asia Pacific, and the … |
| WRB | W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline … |
| MCY | Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella … |
| L | Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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CNA Financial
A-Score
1-Year Total Return ->
🥈
WR Berkley
A-Score
1-Year Total Return ->
🥉
Cincinnati Financial
A-Score
1-Year Total Return ->
4
Mercury General
A-Score
1-Year Total Return ->
5
Markel
A-Score
1-Year Total Return ->
6
