Feb. 06--FAIRFIELD -- Butler County company Cincinnati Financial Corp. reported 2013 profits grew 23 percent when it released its annual results Wednesday after the market closed.
Cincinnati Financial had net income of $517 million last year, compared to net income of $421 million in 2012. Operating income -- income made from the insurance business and investment income -- rose 18 percent year-over-year to $463 million in 2013.
Fairfield-based Cincinnati Financial is a property casualty insurer. Independent insurance agencies are appointed nationwide to sell Cincinnati Financial's products. Agencies also sell other insurers' products.
Cincinnati Financial has approximately 2,800 employees in Fairfield, and a total of more than 4,000 in the U.S.
Results are benefiting from business growth, including signing new policy holders and renewing existing policy holders with larger premiums on average; and fewer natural catastrophe losses in the company's coverage area.
"While investment income was pretty flat, what really picked up was underwriting profits," said Joan Shevchik, Cincinnati Financial spokeswoman. "To get profits from the insurance business, we wrote more business and we did it profitably."
Cincinnati Financial has put an increased emphasis on better estimating prices using data analytics. Also, field agents are doing more property inspections to recommend safety fixes for policy holders, and improve loss prevention.
Property casualty new business written premiums in 2013 reached record levels of $543 million, up 8 percent from new premiums signed in 2012. Net written premiums -- including new and renewed accounts -- increased 12 percent in 2013 from 2012 to $3.9 billion.
Insurance agents representing Cincinnati Financial are opening more new accounts with Cincinnati Financial. The locally-based insurer is also introducing new products and expanding the number of independent insurances agencies that represent its business. There were 96 new insurance agencies appointed last year across the U.S. for a total 1,450 different agencies in 39 states.
"Steady growth and improved core underwriting profitability of our insurance business contributed to full-year operating income of $463 million, our best result since 2007," said Steven Johnston, president and chief executive officer of Cincinnati Financial, in a statement. "Consolidated direct written premiums passed the $4.3 billion mark, on a pace to reach $5 billion by the end of 2015."
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