Q3 Earnings Highlights: Cincinnati Financial (NASDAQ:CINF) Vs The Rest Of The Property & Casualty Insurance Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the property & casualty insurance stocks, including Cincinnati Financial (NASDAQ:CINF) and its peers.

Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.

The 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8%.

In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results.

Cincinnati Financial (NASDAQ:CINF)

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Cincinnati Financial reported revenues of $3.73 billion, up 45.4% year on year. This print exceeded analysts’ expectations by 24.2%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ book value per share estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 6.7% since reporting and currently trades at $168.23.

Is now the time to buy Cincinnati Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Root (NASDAQ:ROOT)

Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ:ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $90.86.

Is now the time to buy Root? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Selective Insurance Group (NASDAQ:SIGI)

Founded in 1926 during the early days of automobile insurance, Selective Insurance Group (NASDAQ:SIGI) is a property and casualty insurance company that sells commercial, personal, and excess and surplus lines insurance products through independent agents.

Selective Insurance Group reported revenues of $138.7 million, down 88.9% year on year, falling short of analysts’ expectations by 52.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Selective Insurance Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 3.5% since the results and currently trades at $78.57.

Read our full analysis of Selective Insurance Group’s results here.

Assurant (NYSE:AIZ)

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE:AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Assurant reported revenues of $3.23 billion, up 8.9% year on year. This print beat analysts’ expectations by 1.5%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

The stock is up 5.4% since reporting and currently trades at $226.11.

Read our full, actionable report on Assurant here, it’s free for active Edge members.

Markel Group (NYSE:MKL)

Often referred to as a "mini Berkshire Hathaway" for its three-engine business model of insurance, investments, and wholly-owned businesses, Markel Group (NYSE:MKL) is a specialty insurance company that underwrites complex risks, manages investment portfolios, and owns a diverse collection of operating businesses.

Markel Group reported revenues of $4.37 billion, down 5.3% year on year. This result topped analysts’ expectations by 11.5%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

The stock is up 12.9% since reporting and currently trades at $2,060.

Read our full, actionable report on Markel Group here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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