Fundamentals snapshot
CINF · NMS · Financial Services · Insurance - Property & Casualty
Current price
$182.67
52-week range
$143.87 - $194.81
Market cap
$28.26B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $375.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Cincinnati Financial is an insurance company that sells policies to protect businesses and individuals from financial loss, covering things like property damage and car accidents. It makes money primarily by collecting more in premiums (the regular payments customers make for coverage) than it pays out for losses (claims). The company also invests this large pool of customer money, which is important because the investment profits can help keep the business healthy even in years with many expensive claims.
Cincinnati Financial was started in 1950 by four independent insurance agents in Ohio who wanted to create a company that would work closely with agents like themselves. It began by focusing on property and casualty insurance (insurance that covers your belongings and protects you if you're legally responsible for an accident). In 1968, the company formed a holding company structure, which is a parent company that owns other companies, allowing it to expand and add new types of business. Over the years, it grew by acquiring other insurers to add life insurance and by starting its own companies to handle more specialized or hard-to-place risks.
Cincinnati Financial is an insurance company that sells a variety of policies to both individuals and businesses across the United States. Think of them as a one-stop shop for protection, offering everything from car and home insurance for your family to complex coverage for a small business. They don't sell insurance directly to people; instead, they rely on a network of independent insurance agents who act as the bridge between the company and the customer. The company makes money in two main ways: by collecting more in payments, called premiums, than it pays out in claims, and by investing that money to earn more.
This is the company's largest and most important business, making up the biggest slice of its revenue. It provides insurance for businesses of all sizes, covering things like damage to their buildings, injuries to workers (known as workers' compensation), and accidents involving company vehicles. Businesses pay premiums for these policies to protect themselves from financial losses that could disrupt their operations. This segment is the core of the company's strategy, focusing on building strong relationships with agents who serve local businesses.
This part of the company sells insurance directly to people for their personal needs, representing a significant portion of the business. The main products are auto insurance for your car and homeowner's insurance to protect your house and belongings. It also offers other related policies, like extra liability protection (called an umbrella policy) in case of a major lawsuit. Individuals and families pay for this coverage to safeguard their personal assets from unexpected events like accidents, theft, or fires.
This is a smaller but important segment that handles unique or higher-risk situations that a standard insurance policy won't cover. For example, a business with a history of claims or a very unusual operation might need this type of specialized coverage. This segment insures things like liability for accidents on a business's property or damage to specialized equipment. Because the risks are higher, the premiums are often higher too, making it a potentially profitable area for the company.
This segment, a smaller piece of the overall company, offers products that provide financial support to families after a death. It sells term life insurance (which covers a specific period, like 20 years) and whole life insurance (which lasts for a person's entire life). It also sells annuities, which are contracts that can provide a steady stream of income, often used for retirement. Customers buy these products to ensure their loved ones are financially secure, to cover final expenses, or to plan for retirement.
This segment isn't a product sold to customers, but rather how the company manages the money it collects from insurance premiums. Insurance companies collect premiums upfront but pay claims later, and in the meantime, they invest that money, which is often called the "float." Cincinnati Financial's investment segment puts this money into a mix of bonds and stocks to generate additional income. This investment income is a crucial part of the company's overall profitability, helping to keep the insurance operations strong.
The company's main focus is on strengthening its relationships with the independent agents who sell its insurance. Management is betting that providing excellent service and empowering local representatives to make decisions will make them the preferred choice for these agents. They are also focused on growing their core Commercial Lines business and improving the profitability of their Personal Lines by using better data and pricing tools. Another key priority is to expand the more specialized Excess and Surplus lines, which can be more profitable when the standard market is tight.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $375.0M - more cash than debt. Interest coverage 57.2x.
Cincinnati Financial Corporation's profit covers its interest bill about 57.2 times over. which is stronger than every peer shown here.
Total debt $884.00M Interest coverage 57.23x This is the baseline the peer rows are being compared against.
Total debt $2.04B Interest coverage 14.41x -75% vs CINF Carries about 4.0x less debt cushion than CINF.
Total debt $2.97B Interest coverage 13.00x -77% vs CINF Carries about 4.4x less debt cushion than CINF.
Total debt $9.27B Interest coverage 19.34x -66% vs CINF Carries about 3.0x less debt cushion than CINF.
Total debt $7.49B Interest coverage 33.97x -41% vs CINF Carries about 1.7x less debt cushion than CINF.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know