(Reuters) -Property and casualty insurer Cincinnati Financial reported on Monday that its second-quarter profit more than doubled, reflecting higher premiums and investment income. The results reflect the stability of insurance firms, even as trade tensions disrupt other businesses. As consumers and companies grow accustomed to economic uncertainty, spending on policies has remained steady. Earned premiums […]
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Cincinnati Financial’s quarterly profit more than doubles on higher premiums, interest income
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(Reuters) -Property and casualty insurer Cincinnati Financial reported on Monday that its second-quarter profit more than doubled, reflecting higher premiums and investment income.
The results reflect the stability of insurance firms, even as trade tensions disrupt other businesses. As consumers and companies grow accustomed to economic uncertainty, spending on policies has remained steady.
Earned premiums rose 15% to $2.48 billion, the Fairfield, Ohio-based company said.
Investment income jumped 18% to $285 million, driven by higher interest payments from its bond portfolio.
The company reported a profit of $685 million, or $4.34 per share, for the three months ended June 30, compared with $312 million, or $1.98 per share, a year earlier.
Its shares have risen nearly 4% so far this year as of Friday’s close, compared with a nearly 2.3% gain in the S&P 500 insurance index.
Earlier this month, industry bellwether Travelers Companies reported higher profits due to stronger underwriting and investment returns.
(Reporting by Ateev Bhandari and Niket Nishant in Bengaluru; Editing by Mohammed Safi Shamsi)