Cincinnati Financial 3Q Profit Falls 31 Percent

CINCINNATI (AP) — Insurance company Cincinnati Financial Corp. on Thursday posted a 31 percent profit decline in its third quarter its investment gains fell sharply, but operating profit shot up as the company had to pay out fewer catastrophe claims.

The company, which provides a broad range of insurance products but depends most on its property and casualty lines, said net income fell to $171 million, or $1.05 per share, for the three months ended Sept. 30 compared with $247 million, or $1.50 per share, a year ago.

Net realized investment gains contributed $75 million, or 46 cents per share, to the latest results compared with $173 million, or $1.05 per share, a year ago. The company last year sold off stocks and locked in gains ahead of the market plunge.

Operating earnings, which exclude investment gains, rose 31 percent to $96 million, or 59 cents per share, from $74 million, or 45 cents per share, a year earlier.

Revenue dropped 2 percent to $1 billion from $1.19 billion in the 2008 quarter.