(Reuters) -Insurance firm Cincinnati Financial swung to a first-quarter loss on Monday, as catastrophic losses from the California fires and a decrease in investment gains weighed on earnings.
The California fires resulted in an estimated $250 billion in economic losses, making them one of the most expensive natural disasters in American history, and damaging insurers’ earnings.
Peers’ profits were also dented, including Hartford Insurance Group’s, which more than doubled catastrophe losses, according to its quarterly report last week.
Fairfield, Ohio-based Cincinnati Financial said that its after-tax catastrophe losses rose by $356 million in the reported quarter.
However, CEO Stephen Spray said that the company was prepared “for the unprecedented losses our policyholders suffered from the wildfires in California.”
Shares of the company, which have shed 5.5% in 2025, were down marginally in trading after the bell.
Cincinnati offers a range of insurance products, including property and casualty insurance for individuals, businesses and organizations, and collects premiums from policyholders.
The company’s earned premiums grew 13% to $2.34 billion for the quarter ended March 31. Its biggest segment, commercial lines insurance, saw premiums rise 9% to $1.18 billion.
Cincinnati Financial posted a net loss of $90 million, or 57 cents per share, in the three months ended March 31, compared to a profit of $755 million, or $4.78 per share, in the year-ago period.
The company also attributed the quarterly loss to an after-tax net effect of a $536 million decrease in net investment gains.
(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)
Comments