(RTTNews) - Thursday, Cincinnati Financial Corp. (CINF:
News ), an insurance company, reported 31% decline in profit for the third quarter reflecting a 57.2% fall in investment gains.
Cincinnati Financial's net income for the third quarter was $171 million or $1.05 per share, compared with $247 million or $1.50 per share in the year-ago period.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share. Analysts' estimates typically exclude one-time items.
Total revenue for the quarter declined to $1 million from $1.18 million in the comparable quarter last year. Analysts estimated revenue of $892.33 million for the quarter.
Operating income, excluding investment gains rose to $96 million or $0.59 per share from $74 million or $0.45 per share in the comparable quarter last year.
Net income and operating income results for the third quarter reflected a property casualty insurance underwriting profit, contributing $0.14 per share, compared with a underwriting loss that decreased income by $0.04 per share last year.
Net realized gains on investments fell sharply to $75 million or $0.46 per share, from $173 million or $1.05 per share for the same quarter last year.
The company's combined ratio improved 2.5% to 95.1% from 101.3 % in the same quarter last year,primarily due to lower weather-related catastrophe losses.
Net premium earned for the quarter decreased to $766 million from $781 million the year ago period. Net investment income declined to $127 million from $130 million last year.
For the nine months, net income was $187 million or $1.15 per share, down from $268 million or $1.64 per share last year. Total revenue decreased to $2.77 million from $2.80 million a year earlier.
CINF is currently trading at $25.48, up $0.32 or 1.27%, on a volume of 0.78 million shares on the NYSE.
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by RTT Staff Writer
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