Cincinnati Financial Corp. says second-quarter net income more than tripled on a record high for new business and lower catastrophe losses.
The Cincinnati-based insurer of businesses, homes and autos reports second-quarter net income of $110 million, compared to $32 million during the same period a year ago.
“Our earnings rose to the best level for any second quarter and any first half since 2007,” says CEO Steven J. Johnston, in a statement.
The company says it booked $139 million in P&C new business premiums in the second quarter—a record high for any quarter. Catastrophe losses were $46 million lower than they were during the second quarter 2012.
“While unfortunately not the case across the country, the weather this spring was milder, compared with last year's severe storms, for policyholders in our 39 states of operation,” adds Johnston.
Planned growth and higher rates resulted in a 9 percent increase in second-quarter net premiums written to $984 million.
Cincinnati Financial's combined ratio for the period improved 13.1 points to 96.4. The progress was achieved with the help of a 10.1-point benefit from $92 million in favorable reserve development during the second quarter.
The insurer reversed a loss on underwriting, reporting a profit of $34 million compared to a loss of $77 million during 2012's second quarter.
For the first six months of 2013, Cincinnati Financial says net income was $264 million, up 124 percent from 2012.
The company says it added 63 new agency appointments as of June 30, 2013.
Agency renewal written premiums are up 10 percent to $1.12 billion after the first six months of 2013. Agency new business written premiums are up 19 percent to $197 million during the same time, says Cincinnati Financial.
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