Dean Cristello's questions to Cincinnati Financial Corp (CINF) leadership • Q4 2024
Question
Dean Cristello from KBW asked for more detail on reserve strengthening in the commercial auto and excess and surplus lines, including the specific accident years. He also inquired about the abnormally low ex-catastrophe loss ratio in commercial property for the quarter.
Answer
EVP and CFO Mike Sewell explained that personal auto strengthening was for the 2022 and 2023 accident years, while E&S strengthening was due to higher-than-expected case incurreds, leading to prudent reserving. President and CEO Steve Spray attributed the strong commercial property results to a drop in large losses but cautioned about quarterly volatility, crediting the underwriting teams for improving the book's risk profile.