CINF - Earnings call transcript Q2 2024 | Cincinnati Financial Corporation

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Operator

Good morning, and welcome to the Cincinnati Financial Second Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I'd now like to turn the conference over to Dennis McDaniel, Investor Relations Officer. Please go ahead.

Dennis McDaniel

Hello, this is Dennis McDaniel at Cincinnati Financial. Thank you for joining us for our second quarter 2024 earnings conference call.

of a financial on investment The package, find menu of far issued with results, portfolio. the shortest we visit on link copies supplemental please in information our including any quarterly route yesterday, to news website, is our release along To our the Late investor documents, the cinfin.com/investors. results these left. our navigation quarter-end the

from Officer, you'll their call, President hear Vice Steve Financial Spray; Chief first then participating prepared on After Executive this On the ask and Officer, and call from Executive investors Sewell. and President may Chief Mike questions. remarks,

Steve At Marc Finance, room that including Johnston; Theresa Vice Executive and be made some Officer, Insurance's may Steve Senior Corporate with and Claims Chief by Soloria; others Schambow; President Cincinnati Officer, us, Hoffer. responses in of Chairman, the Investment time, Chief

uncertainties. These risks are Please include to certain note discussed the and your direct filings release be reconciled that GAAP. our and Statutory prepared SEC. today accounting respect accordance to is attention some news these and statements forward-looking uncertainties, matters we With to to forward-looking. of risks a accounting non-GAAP measures and reconciliation with not was news provided data various our in statutory with release. therefore, of is with rules the Also, to these

Steve. I'll Now to over the turn call

Stephen Spray

for thank us to about today you and joining Good results. morning, hear more our

half good of first year. quarter a and We had the

us, responsiveness to navigate to we about with future. enthusiastic both challenging the help call, about business In quite addition strong figuratively recent citing insurance as this and reinforced agents Agents to our our excitement market. my them the performance, with meet answer literally financial are travel doing

for in part of solutions While picking confidence profitably, agents expertise clients. we lets culture, our have and financial the delivering best strength us insurance our growing our their in phone continue Cincinnati's the up is

recognition Non-GAAP still and for the grow was of of year an to the the income $XXX XXXX fair securities for second of the million basis contributed up $XXX income for in of quarter included increase $XX million held. nicely on after-tax operating of continued Investment quarter $XX increase. ago. equity $XXX from a Net million second income million million of value

The included the XX.X%, the half the nice of the to better combined was we first a points tends past XX.X% for second place the as to year XXXX quarter half averaging ratio of be second XX based half to the in year ratio ratio last percentage end year. Typically, brought That catastrophe property and catastrophe better X.X part into the due X.X of X head the about higher a second quarter casualty the to than decrease points beginning, loss of second than years. losses. points the on combined be in

before Our XX.X% X-month improved year losses with and percentage was quarter points a accident year XXXX X.X XXXX combined basis. for by catastrophe second compared ratio on X.X the better accident points

than lower on until points loss reserve ultimate continue it longer-term cost regarding become consider year as to overall remain a uncertainty prior accident and favorable, was trends in was development although clear. again, years Once estimates reserve prudent ago, more our X.X we losses

of half We are optimism. entering and the with second the year confidence

of overall with performance. year's -- measures addition are pleased results first the XXXX last combined was we ratio and an measures regarding half, In improved than accident to half better for our that year other first operating with

believe premium quarter second it is profitable We growth growth. have and strong

business others, produced improve use and are Those effects see elevated We for appoint selection in segmentation Insurance opportunities. inflation of representing we on risk, efforts, average progress risk plus by with our help we losses. Agencies profitability. where insured profitable our plus appropriate additional expansion continue Cincinnati continue price bolstering to managing pricing along agencies us, careful increases, underwriting to another to quarter

healthy at homeowner surplus excellent range they to low profitable again, lines risk low underwriters increases second expertise. Estimated in pricing average auto the the end single-digit the single-digit commercial work, and selection accounts as inadequate do on in with high the levels, emphasize range, and high continue percentage renewal in excess near we managing the retaining single-digit of personal and pricing the based price range. our high Our determine quarter for double-digit ones lines have range, were, that and

casualty Our quarter, in the business including consolidated XX% renewal XX% and in premiums. premiums for net XX% property new premiums grew growth written agency

our highlight growth development insurance briefly for in despite for segment, that by X.X ago. quarter I'll business X% favorable high net and year Commercial premium the written Cincinnati clients. XX%, middle losses. combined second addition than of second was increase combined was on grew accounts, profitability prior ratio less focusing a an worth X.X accident compared with Client written increased points. Personal in points by X.X XXX.X%, grew Private with lines a better catastrophe points year Its year last higher market operating net X.X Next, XX.X% including reserve net quarter, that agency's premium to by ratio percentage points growth included percentage premiums performance underwriting and from lines

ago points and combined X.X a percentage grew also Excess ratio XX% profitable quarter to net reserve was a written second premiums of from lines year development. due XX.X%, unfavorable and up with surplus

It Cincinnati bringing excellent Re diversify our continue stability. risk written for income for premium again, profitable X-month the was the Global in improve grew second Cincinnati to with Re's efforts XXXX. overall combined XX%, written of and net Both XXXX by and Cincinnati to ratio quarter line very reflect further an and XX.X%. premiums were, XXXX

at XX.X%. combined ratio also excellent Global's was Cincinnati

second very grew net reflecting of in premiums it market. half While first the premiums X% pricing written down were discipline XX%, a for competitive the quarter year,

premiums grew subsidiary and X%. earned had insurance life operating net including income income $XX Term Our quarter, XX%. of of outstanding life insurance growth an million

long-term with financial I'll primary value ratio. measure creation conclude our of and performance

X.X%. before XXXX VCR income of valuation items portfolio losses Net quarter investment X.X%. the overall Our for gains and or X.X%. contributed was contributed investment quarter Higher other our second

comments Officer, will Financial to other add financial his of our Sewell, Chief parts Mike Now performance. highlight

Michael J. Sewell

Thank and you, today. you for of all to joining thanks Steve, us

continued Dividend income quarter, in grow, the up same X, a was holding dividend quarter ex due to date to down second X% unusual primarily in income a the XXXX. that XXXX. of with moved one for to $X compared for with that million, the June quarter XXXX July XX% items $X XXXX Investment or was X totaled approximately million

XX% dividend The other holding by rate after transaction. spin-off was that its reduced a a

year. maturity securities portfolio, months to $XXX added quarter fixed interest the our year. Bond X with first We, again, net purchases for income investment second the grew this totaling XX% the for of of million

the taxable X.XX% XXXX our of bonds XX quarter points second and of was X.XX%. Valuation aggregate pretax compared The yield the tax-exempt the fixed basis maturity total with last year. portfolio. bond of second during in quarter for up the yield average portfolio pretax our purchased The and for equity of for unfavorable favorable quarter portfolio was second changes for were for average XXXX

appreciated approximately of tax loss was by the portfolio, the portfolio. the the for net the equity million end total quarter, $XX net of $X.X portfolio for Before was $XXX billion. value bond investment net million a partially At offset effects, gain

from flow benefit XX% loss while The fixed the income $X.X XXXX to position operating in Cash $X.X equity was million. billion, X a flow in net Cash $XXX maturity in was gain of a higher portfolio up to of the for continued addition portfolio net position a first billion, ago. bond investment was from yields. of activities year months

controlling balance to work move investments with I'll strategic expense business. on management, we to our expenses where in making always

quarter for percentage of our higher higher expense agencies The sharing commissions XXXX was than ratio property year, and points employee-related last second reflecting profit casualty underwriting levels X.X expenses.

comment upper estimated for where amounts consistent loss loss me approach our on of let and actuarially loss and remains expense half Next, reserves. net the of net in range reserves, aims the

As we accident and reserves. loss estimated by such we new information, we and line updated of ultimate Then quarter, expenses and paid year do losses as case each losses business. consider

loss the $XXX XXXX, the property expense X including million months $XXX of reserves addition our IBNR net For was million, casualty first to portion. for

property the years prior During the $XX X.X points. percentage casualty second favorable we development million benefited by accident of ratio on net quarter, that combined experienced reserve

reserve losses lines million, million largest those the our in amount $XX in casualty. XXXX casualty emerging of $XX development, balance. We commercial commercial older aggregate of of expected. others. by less case property, commercial recent segment again through Commercial or of quarter released which The totaling and having a slowing overall year-end compensation XXXX years $XX development for of for amounts $XX release years, reserve reserves, development reserves that amount reserves to for more and reflects adding XXXX, line than added workers' in due the to driven some higher for the than The of saw accident the incurred unfavorable IBNR unfavorable of line's million favorable reserve accident million accident we to was with years while XXXX total at prior X% some including offset than unfavorable business

On representing unfavorable for for net reserve $XX an months all-lines for $XXX for of XXXX, prior an million. development casualty of basis by unfavorable favorable $XXX XXXX million with accident years and to the year, $XXX the million XXXX, included: aggregate for $XX million commercial million million XXXX, accident favorable favorable in XXXX first X $XXX

the capital management highlights, second consistent area have shareholders long-term dividends paid the XXXX. where during with I'll a to $XXX another conclude comments approach. of in million my we We quarter

an share also XXX,XXX at We shares $XXX.XX. of average per repurchased price

both We think are in our financial shape. financial and strength excellent our flexibility

a profitable value cash continued $XX.XX end, of $X total under billion and Debt contributed company with marketable was billion. at GAAP quarter shareholders' growth book operations. end our consolidated equity, And insurance $XX.X -- share, be high, of quarter XX%. was our to providing of capital for capacity Parent securities plenty per at to record nearly

the Now over back I'll call to Steve. turn

Stephen Spray

Mike. Thanks,

on on move my first share some I'd based months we observations questions, CEO. to as few to like Before additional

with share the confidence level That year, in we've XX.X and combined of spoken associates, this to with of makes consecutive of loss first profit. XX%. of months In X our this ratio ratio I've up a of XX%, core the in that continues future of income many years of my high investment underwriting A written and achieved growth they net agents premiums XX.X%. improve, company.

dividends with shareholders. market challenging really increasing of I'm years where our XX my allows sheet to for we're in stage and In agents, the balance to in lean most the career, excited us about set our and headed. We've grow

with As call Mike Theresa for are Johnston, Jason, please reminder, questions. a and and Steve Schambow Hoffer. Steve Solaria, Marc today open me the

Operator

from The question Instructions] comes Michael first [Operator Phillips Oppenheimer. from

Michael Phillips

commercial on I all your talking casualty, when want to action Was lines? I was sure, quickly. flowed I Mike, sure and accident stuff comments, want and The to that in wasn't your right. prior, recent make It commercial years in pretty the guess were added it releases you casualty? that make XXXX XX clear. about I got for

Michael J. Sewell

That question. was casualty -- for was the That for thank only. for you commercial

Michael Phillips

Okay.

So for your XXXX, like those XXXX sounds it's more for that and line? prior correct add

Michael J. Sewell

exactly correct. is That

Michael Phillips

And took reasons? you charge -- that's XQ, a I know the same I years, exact think so the accident for accident but prior in bigger the don't for Okay. again similar, for not much years,

Michael J. Sewell

That's correct.

Michael Phillips

Okay.

-- from quarter become So sounds we're starting problem. far is some your of in so this you seeing ever subsequent not don't so I a seeing it you maybe XXXX so guess to will, far you're kind think or others of like what

[indiscernible]? won't seeing it that? maybe us You're why And not think tell you

Stephen Spray

of my be a Well, this prior there Steve, I from seems year accident to always would losses. in is first -- overall, movement I just Mike. perspective, all, say,

certainly different developed years. segment, be can know. better accident sometimes expected, of Some you than and than by business line higher as It expected,

are reserves know, development long approach reserving team confident being with we couldn't of am of have the track in just most I quarter. year, you is like management's and and favorable that accident realizing Comfortable said, more in we in lines basis. And -- perfect We've losses of uncertainty. there's record, best the do. I in always we've ultimate all recognizing overall our of that and years, accident history these those the That always I think as that the a prudent they in second here end most a taking at estimate recent there at still It's, science. had look be I process that most our uncertainty a it -- not there think going they It's take into is -- experienced and be that recent And any the as recent not years much to accident been always feel but actuaries account. there. those very data setting

we're that all other I And in of benefits here one one the think is building.

actuaries a I that talking units. literally something with times is are the we reserving day, sometimes that actuaries then think all gets with with multiple pricing are and underestimated that's business we here, the and

to on you underwriting. commercial And quarter see umbrella feeling if when there. see the back I some that just act here the act noticed really 'XX, recall, we to we're unfavorable things But think quick quick we're Commercial to reserving, things just of results as -- we and in in now, we umbrella, second Mike. I'm

actuaries to as Our the appropriate then reserves. was were quick as well. to take quick and our the action act underwriting act on And just

of jumped this We classes and let's the the very umbrella of that. looking certain business, on based over terms say, through favorable are think took commercial and as And actions in well. And auto, mid-XXs, we all certain fleet conditions there now things is reduced the running year, size, And I jurisdictions. months we limits. X on

Michael Phillips

second said helpful. anything renewal I from directionally you staying kind in kind commercial XQ for on commercial to things It maybe the you the want are confirm quarters on question around That's the line moving like for with looks be I that that. how single then just your pricing recent casualty around? high digits. same? might want is of guess I And think Okay. XQ to about comments casualty. of share the to

Stephen Spray

a see that would is would yes, writer. marketplace, rational first Yes, increased the I is -- still view in and single we Mike, the say, my commercial for is on rate high consistent correct, the the the And runway I commercial from But commercial marketplace. digit market casualty we're and say quarter. orderly. commercial was package

thing risk. tools we're risk the always at and focusing other on is company, the just Cincinnati, at caveat and -- executing risks by really segmentation here what these I pricing Now have the And price is use teams we product underwriting And executing can have, there excellent that as just are segmentation to average the analytics just just story, we strategy. you the tell understand. full the doesn't predictive is the our on the the

Operator

from next The question Raymond Gregory comes James. Peters from

Charles Peters

sort casualty. of and commentary the on guess I pricing building on

commercial like about positioning for broader Just rates perspective in you -- a the your book how price seems or from moderated, business. growth perhaps except curious view are competitive the have of what beginning It property.

be So insightful. on any perspective would added that

Stephen Spray

Yes.

a question. our I've It from again, right think, state. on it Greg, account. size got local varies we think and business, -- I varies by by this insurance, I of your But perspective, is

carriers. we're said, focusing is, those I And compete local mutuals. smaller with building agents. in underwriter. real package focus just relationships our Like what a do We compete with those is where national deep we We with regional the on

that relationships product deep confident relationships in -- like showing ability remarks, because about selection, we're built opening answer worry my don't those growth. when I the we price our risk up, when call, and And said we've in I we're confident the just agents we're in confident I with in our our we that to don't have and

appoint the said, discipline forward. we country. that about I across the when we it new and the pricing, risk to the going we'll agencies do opportunity, and see continue continuing selection to and to then it's But Like let We're come us. all

If half, you commercial XX%. business, through up lines new over in first look the at

considerably. of half down first we last were The year,

came changed What's see is risk, the discipline line. has change we're Our the those is changed. risk line risk us. operating and pricing could that not by didn't our one and our is, we to pricing by bit, beauty that in, and selection risks We environment

Charles Peters

was your I I detail fair you the some enough. Yes, ratio. on and I'm opening up. expense remarks. -- focused It know pivot in to provided

unusual some inside go on should are there can about there just about current run maybe back exclude? we are at Or talk the think the pressures. sort the some X-month that the moving commission and basis, parts Or should rate maybe inside us -- forward? are you expense to items And I a of think going level, we there nonrecurring ratio?

Michael J. Sewell

I Greg, for a On did question. up year-to-date is Mike. Thanks little basis, a mentioned, bit. this go the it as

bit. down was year little the for a ratio combined Our

the is with forth for So commission and agencies as do hiring folks and go items. up Employee-related sharing a little up so the profit invest future, expenses bit. the does we other for

look trying I see are to down which do expenses I the to total the I'm of but what going line, rate when our are dollars increase, earned But outpacing we're -- the where the up, is what premiums do do. as trying

at a making the though and total I bit we're progress. expense little dollars categories some good look actually, of even on down are think they're percentage I a up. So

a right it been saying XX.X been we've to with XX. now, years, on seeing trying basis, the get we've the below year-to-date over So as

so little to be I'd agencies. going commissions for now, right But to bit like the right a elevated really we're all And the reasons keep it's where that. of the from it probably doing paying to

Operator

question The from next Citigroup. from comes Charles Lederer

Charles Lederer

you I point? talk liability mature about years pre-XXXX at accident those are the guess, general can for this -- how

Michael J. Sewell

please? Can that you again, question repeat

Charles Lederer

Yes. how XXXX you Like guys' to color those years If that. 'XX give view? accident I could mature around your guess are the years? in accident

Michael J. Sewell

the I versus the million mentioned, think that was with where years but really first we $XX all, recent XXXX and I -- was overall the about we're at, unfavorable it of that more feel good to the reserves the XXXX accident reserves, years.

X indicated. I have IBNR commercial me makes about things good about been months at this some our increasing we of think look I pretty If kind When of you reserves, first it. the of think we've feel year, which casualty actually the that the ratio,

years we when were And for casualty, higher XXXX. at currently about what the of percentage commercial through XXXX we're points XX so full pre-pandemic than of IBNR for adding we're

look for the loss points, end paying ratio. incurred having quarter, second that's think just our at do of if adjustment expense off I I through percentage the So us. extra the XX loss,

On those XXXX bit years casualty, XXXX. take than for of 'XX picks average, little if I pre-pandemic year those through a the commercial 'XX, higher are

So and I confidence, so kept going. could forth, I And think think, all think our process ultimate probably last if higher. our have, with we back I have that then picks the I I the XX Steve years, mentioned are it look over with

spreadsheet that XX my that accident during picks favorably original I think from but there out, commercial at only years was casualty was have estimated developed not period X months. time ultimate the running

confident very cetera. et people et with Steve I'm cetera, doing So the our process, with is our it, --

hope you're that color So that's the for. looking I

Charles Lederer

about helpful. higher IBNR, is that's Yes, When want sure all that you talked lines? Just points make all XX the understand. accident all years? that's of -- Not to lines, for I

Michael J. Sewell

for That commercial is year at calendar the when is I'm looking year. -- that by casualty accident actually that or

Charles Lederer

Okay. Yes.

accident for So all years.

trend the were personal can the new I you rate new bifurcate on you guess, the business middle guess personal of and is divergence can guess, high worth? net business? lines know the I Okay. there. strong, lot Or a -- about, in there's line talk but or I and market between there I side, both

curious. So just

Stephen Spray

Charlie. a quarter-to-quarter. right growing now, bounces Yes, outpacing as -- both net personal from client -- can growing are little lines Right markets is growing manner. you little in bit, bit. high a it now, E&S our also That private around moves both around We're are see, opportunity. a or worth little very middle bit But a healthy

lines, solution comparative We've their that perspective net for the pricing and then middle the I or of in we from is expertise market in in got middle can our gives the real of writer need our a for tremendous And high agents client a both become client. world. radar business. the for be a worth. a agents, from perspective just market confidence. my And key the in and amount that personal we premier the private think our have sophisticated We of we've got private percentage that bigger of all

where Now seen communities. personal the capacity option And their for never you lines market our we and a agents add like that this. I've provide an insurers E&S and can

the we I in help opportunity policyholders think the their it's are community. and help of taking to agents I generational. really And our advantage think again

in the confident great at We our got We is which on pricing way are expertise throughout leadership open a prospective tremendous look for organization. the we basis, always got a team. business. it. We're We've

that believe really Insurance. right I transformational lines personal the for So Cincinnati is now

Operator

BMO. next comes The from from Mike question Zaremski

Michael Zaremski

personal were positive But focus side, sometimes. you auto in PYD with margins, personal and personal think analyst we my lines there. there auto, Sticking should Anything about? on hopefully, than than appreciate the some more notable negative

Stephen Spray

be Mike, personal extremely that in question. all I've obviously, thanks auto positive. is development line, you're bodily short-tail for the injury. always seeing you to Yes, there adverse the found

performing I short our portion a market, accident property piece. in continues that. And book of again, high and by this worth, auto damage auto. saying. well. The high adverse the very a kinds lines and majority have less And in by auto net and a When and middle development about I middle that for line, you driven physical market worth, positive are so driven all is of business, in by from to you diversification, personal think it's auto, will bit as was effects personal property personal But is tail high overall one be our bigger in XXXX into there's those we're more and -- less net is Our worth of the in getting year vast grow well, net say, we of market XXXX. if like little as

that to So -- our either. personal that continue that book we've book book in And mix XXXX. that I way results, think -- time that you're continues And well. get quite into some of now, overall shifting into see rates coming is for earning had we end and seeing an I as don't in into a great insight favorable auto that

Michael Zaremski

But maybe know or comp. quarter on we tremendous. actually. and I a or into don't we probably think are to is comp to for you Switching say workers' is -- reasons. perspective, that if -- a know to patiently a growth to but I start Okay. from maybe leaning of But waiting what I it. what you want we this on That's think elaborate market want this soft there couple see the I fairly on can you year-to-date don't comment he comp pricing gears have are workers' for know results in since to -- would what way? We be going helpful. what's underweight the like

Stephen Spray

-- yes, thanks, we Mike. Yes,

strong a workers' have appetite of We serious we for years risk or selection, pricing. loss XX comp. levels ago, -- especially comp all about claims, control, got XX really

we when We are grow to looking we right can get the on rate think comp that a risk-adjusted basis.

think right. rate several like, just show it. And Again, right it now just I ago, we this frankly, in is in for performing line, it tail calendar talking chase to deterioration you're rate that writing so right long that business more to year extra to compensation attractive. just the understand as don't over up on about don't It's just we're thought we're a that comp, at the rate the is a it. we long work on pull, it's we're the historically to -- results it. today hasn't. And selection think risk write prudent. we can vigilant pricing the agents And and we looking our think and being see basis, well, in on workers' We the there it's a but environment for and being I prudent such I would years term. And and has our prudent when our we volatility such it. quite long But thing not do

Michael Zaremski

sticking comp. maybe on quickly And it. Got

have of of they're that your exposure also One kind a construction practice very in there, all different amount of trade who a you peers regions, but said too, has disproportionate strong there change just of frequency. bit your seeing portfolio? all a in know that throwing of well you I I'm it any curious, out don't a are comp as seeing in if

Stephen Spray

No, been I that. that can't stable on It's say pretty front. that Mike, seen we've

Michael Zaremski

where quarters commercial of might guess a flattish in pricing some kind to or in just is been competitiveness, number overall of upward on Do the an covered downwards? marketplace of you rates? has a just kind the know quarter, a kind I sense at now of But all this. of marketplace there's Okay. lines stable environment was lastly, you kind I And queue. pricing do trajectory you bit that of Or sense -- for the have of the current

Stephen Spray

as Mike, stacking the workers' environment, that Yes. every been in major would far say No, But rate as for on-quarter-on-quarter-on-quarter the except I of rate commercial compensation. are line commercial we've we additional market. throughout -- lines,

on marketplace size it the state moving orderly. all the in. I depends depends again, responsible There the commercial account. And But speaking, are just parts. of generally characterize that and It on as the you're would

there. reports. other lines. You all promoted carriers' across in think There's seeing has that I it uncertainty see out rate lines commercial uncertainty And you're continued that certainly the in

in I softening market market commercial see lines. a don't And --

all classes I Cincinnati's and just generally speaking, You'll hear lines, there. different countrywide, pockets different little here class from orderly rational. think things, of different lines business, all and perspective, of -- different it's maybe a But

Operator

from Grace of Your next from comes America. question Bank Carter

Grace Carter

where several such ratio And if the liability just to Looking difficult any in industry years? change and as since of at favorable the the stands seen like the auto think maybe you've the primary what challenges trying year-over-year been a that the X in umbrella modest maybe the of over you for are commercial lines? in feel in experience the differences in releases. auto was consider past past the past worst sort in you a now, versus it's a been wondering a line the just loss line, quarters row, reserve for there's as I well line underlying

Stephen Spray

good commercial we were there. real you having Thank back -- you, and feel and -- we again, has Grace, some look into auto auto. Yes, good XXXX commercial we where and are morning. feel about really challenges XXXX, in

same was talking I kind We recognized umbrella story the it. It's with earlier. about of

it and quickly. Our very acted actuaries acted upon we quickly

it of market, I and I got We did. the commercial we then think in the think all hit good a a -- but it spot, personally, little ahead maybe auto. what pandemic, did inflation

it auto book the more I we is inflation, it's a had think to so at at question that peel XXXX, that was shape, we to mix answer from construction the to book minute in write of commercial your in mentioned, that but keep back -- XXXX. up -- in quite also rate book that ago, in a Cincinnati, if we took really you the frankly, good to just there's was in book. get of And actions that And analysts look with kind some one --

manufacturing, wholesale. got We've a retail,

We or trucking are risks. big into transportation not

really with you volatility that I we about a where think, managed more lot just it think are We've I today. well see there book, and there. really good feel

it's So I risk selection. think

it's I We're just And don't [ transportation. package the what you're don't makeup our trucking or auto. We writer. that's book. think think write We of ] monoline I seeing. write a

Grace Carter

XX-Q, the loss the an a in underlying And in walk from and case think, for I incurred. ratio the contribution the increase decrease mentioned IBNR year-over-year E&S the

bit that's that in think what I other the a different than segments. seen we've

different could go on maybe going the other what's look it over So why would than there you and segments?

Stephen Spray

Grace, were you restate I'm out that? Could sorry, coming I you there. apologize. and in

Grace Carter

talks incurred. mentioned the underlying in E&S in In in in decrease the year-over-year, IBNR, about increase had sure. the the when ratio walk Yes, XX-Q, case loss it you an

of you to than kind -- why as I other relative segments. different think segments? I that just than to what the over the was other mentioned Could elements that that, the looks for different the go

Stephen Spray

that looking I at for at I'm think, Grace looking case. looking happening actuaries, we're the be book think if I We're at there's are to page. and management to all the you looking at here, things quarter-to-quarter. view going inside We're correctly data. the noise -- We're answering

instructive. we'll looking longer think I answered over I maybe months I little or even it longer, you. for period, more probably hope that a XX at And be a

Operator

KBW. Meyer Shields comes The next from from question

Meyer Shields

apologize to mean, Can to going you also. compete for just what like an responding And elevated companies. nonpublic you on are update publicly an for to the and I'm property that overexposure I By losses? inflation opportunity traded being analyst growth? regionals us implies that social how with elevated that

Stephen Spray

town what we're kind don't crazy. on compete. agent Meyer. pay just perspective, Yes. are by -- lot Yes. town, attention from of us. would I focused risk-by-risk, what to this a Thanks, my sound agent I'm I more we by I say of don't doing around how others doing, just and might

this we run account. situations we lose or account this where into we sometimes And write

So too to I it'd generalize. think broad be

in up time more middle of say considerably, I market just I would just an personal we're in Midwest. on it's and something all space, we're just seeing line lines, opportunities the and tumultuous and from quotes just basis, particularly probably exponential this, more personal the the -- seeing opportunities on the those that. to we're that markets, seeing to number here And more you there's

agencies balance that think I mentioned sheet. in GAAP piece showing to equity. we're $XX.X I up Like earlier, we've is And the comments with a got big my that the of of billion

some schedules putting mentioned, of are things, for today business. particularly combat Looking are strong terms opportunity seen way to that as severe business And pressure open. And that think as markets conditions are my and We're creating homeowner and that the grow, priced continued those we our The roof those on confident putting the reinsurance, doors you in in ever they'll wind-inhaled career. along convective I've we're with on Cincinnati. deductibles, it's I stay that them think to storms. I

Meyer Shields

in where Okay, fantastic. value think very becomes That's Related helpful. see eventually that the that should agents we agents about how there a Is appoint point impacting the question, the to brand? dilutive? opportunity

Michael J. Sewell

and the of say professionalism job agent numbers. I'm that it that we're more Meyer. that than local we're this, would of the you, of -- about Cincinnati, say that we're Thank doing key with and -- the the would -- key and business I sending is on, executing message about agent I we're the and an doing with no. excellent quality it's the the is

doubling country. to to the plant. have see compared business as peers to saying any our contract do as is -- the exclusive to across And possible our I -- few X,XXX many goal of a to extremely want you distribution agents as goes. I'm got as And I measure, is that. a Well, can and an as necessary. distribution We've all. have agency as we're roughly am doubled as of industry. that appoint in still saying agents our many the you'll see we with would this us again, professional we I'm do relationships telling opportunity far any we country, but as continue by But that at agency exclusive Now continue plenty X,XXX not that across not basis, on relative if we

show Ohio. areas can I you here in

in say we number When of there's field a you up professional don't look policyholders. with the you would creates to in to dilute are that I'd those we of of agencies we so the our at in value have our, community, we show franchise need number will value. rep working if But If we agencies. circles, with meet as And agencies our to grow dilute say, standards. but franchise value, different business, employ it's not just Agencies dilutive local there's excitement. contract. And it's yes, doing we essence, run not. agents When started it we a a continuing would

Operator

-- Lederer comes from a follow-up next question excuse Our lederer Charles from from Citigroup. Charles me,

Charles Lederer

on I and Cincinnati was just ask Re the going Cincinnati to Global commentary.

what I more And on I wondering I'm book last year? in in and color versus changed guess Global. you that Cincinnati think you're Cincinnati I can year you guess, has mentioned this if maybe growth competitiveness referencing? how some Re the give just

Stephen Spray

CGU. for direct large you're or the that's that Yes, is Is And hearing property more of pressure into line growing to and just come Spray that space, impact in refer I layer. Every shared many Charlie, in putting capital think CGU would business out again. what there Steve as it's on well. as marketplace except

noticing impact underwriting finding the direct remaining grow are discipline and that here Cincinnati the to opportunities same they're -- that in a Insurance. business. difficulty they're And They're pricing executing in just on we

the is -- But in year of business months CGU first every other of line up. through the X

and paper. risk-adjusted that that Re they deploy basis rate or we the There no is just capital. enviable a the not there pressure for is return to Re, for the needed do a haul. grow. is nicely, over do try not are sheet. in growing, they capital us Cincinnati as a than attractive hurdle They're that on of opportunistic we're peg so And ask capital well. Insurance. their to we're get long They'll that, in to Insurance risk just it's that Cincinnati I to at Now Cincinnati balance be that's in on writing on company. that an What separate say have each have Re not position own But -- then Cincinnati they an think arena did looking more an we They to in We Cincinnati think, that set much more up they and model. maybe can't write allocated we

to a profitable you when look at -- too. -- ratio property time, spun They bit retro. Re. property And since quickly Cincinnati combined there, solid, we They inception these And spectacular. their to runway in mix pretty Cincinnati They the it's date changed on been over particularly up for for able growth react Re is cat, they're our things. I so very are think

Operator

concludes to session. closing question-and-answer for our Steve remarks. any Spray to back This turn I like conference would the over

Stephen Spray

speaking forward you today. We call. Thank you, again the us Jason, third quarter joining of all look to with and thank you for on

Operator

today's has you conference The concluded. now for presentation. attending Thank

disconnect. You may now

Cincinnati Financial (CINF) 26 Jul 242024 Q2 Earnings call transcript