Earnings

The company’s combined ratio improved to 84.2% for Q4 2021 from 87.3% for Q4 2020.

Cat contribution on the combined ratio remained around 2% as the company was hit with $18mn cat losses during the last quarter of the year.

Cincinnati Financial’s book value leaped 22% in 2021 on solid underwriting gains, strong investment results.

Excluding the effects of cats and reserves during the period, UFG’s underlying loss ratio declined 24.5 percentage points.

The Iowa-based company posted on Tuesday an earnings per share of $1.69, improving on the prior year and beating a $0.41 estimate from analysts.

The P&C division grew overall revenue to $633mn in 2021, expanded adjusted Ebitda to $178mn and adjusted Ebitda margins by 210bps to 31.5%.

CEO Prem Watsa also said his company would prioritize using its capital to grow its P&C business to seize on firm market conditions.

The firm posted positive quarterly earnings results, but it's too soon view this this as a new trendline.

The company's margins improved during Q4 with its combined ratio decreasing to 88.1% from 95.5%, thanks mostly to better margins at Brit, Crum & Forster and Allied World.

The CEO also said that price increases in property cat were insufficient for the company to allocate more capital to the line.

Co-CEO Carl Lindner said his company has made “some adjustments” in staff compensation in response to higher inflation rates.

The exit of key Florida insurers could spur rate increases.