Cincinnati Financial falls after Q2 profit miss
CINF•Shares fall after profit miss
Property and casualty insurer Cincinnati Financial's CINF.O shares fell 2.9% to $178.96 premarket after the company late Monday reported second-quarter profit below Wall Street estimates as higher catastrophe losses and weaker margins weighed.
Broker views and stock performance
4 of 10 brokerages rate the stock "buy" or higher and 6 "hold"; median PT $197 - data compiled by LSEG.
As of last close, CINF stock was up 12.8% year to date.
Analyst and management comments on losses
"We think investors will be more concerned with the 3.0 point rise in the underlying combined ratio rather than the high catastrophe losses," Piper Sandler analysts said.
"Ohio was particularly impacted by bad weather this Spring with catastrophe losses reaching nearly four times higher than our 5-year second-quarter average for the state," CEO Stephen Spray said.
Catastrophes are a key source of earnings volatility for insurers as severe weather events can lead to a sharp increase in losses.
