(Reuters) – Insurance firm Cincinnati Financial reported nearly a 38% increase in its fourth-quarter profit on Monday, helped by gains in its underwriting business and higher investment income.
The Fairfield, Ohio-based company offers a range of insurance products, including property and casualty insurance for individuals, businesses and organizations, and collects premiums from policyholders.
It also invests the premiums it collects in a diversified portfolio of assets, including stocks, bonds, real estate, and earns investment income from dividends, interest and capital gains.
Businesses and individuals prioritizing spending on insurance coverage to mitigate risks ranging from natural disasters to cyberattacks and health emergencies also benefited companies such as Cincinnati.
The company’s earned premiums grew 15% to $2.37 billion for the quarter ended December 31. Its biggest segment, commercial lines insurance, saw premiums rise 7% to $1.16 billion.
Cincinnati’s investment income climbed 17% to $280 million.
The company posted quarterly adjusted operating profit of $3.14 per share, compared with $2.28 per share a year ago.
(Reporting by Atharva Singh; Editing by Shilpi Majumdar)
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