(Reuters) – Cincinnati Financial’s profit fell 14% in the third quarter due to an increase in catastrophe losses, the insurance firm said on Thursday.
The combined ratio in the third quarter for the Consolidated Property Casualty Insurance segment was 97.4%, an increase from 94.4% in the same period last year driven by a peak in catastrophes.
The losses refer to a significant financial hit that insurers incur due to large-scale natural or man-made disasters.
The United States grappled with multiple major hurricanes in 2024, including Hurricane Debby Helene and Milton, which struck Florida, and Francine — which made landfall in Louisiana in September.
The company’s earned premiums totaled $2.30 billion, 13% higher than last year.
However, the insurer’s investment income climbed 15% to $258 million due to a market rally on soft landing expectations after a rate cut by the Federal Reserve helped the company’s investment income to climb.
Its adjusted operating profit came at $1.42 per share for the three months ended Sept. 30, compared to $1.66 per share a year ago.
(Reporting by Niket Nishant and Vedant Vinayak Vichare in Bengaluru; editing by Alan Barona)