CINCINNATI FINANCIAL’S INCOME FALLS 23% BUT BEATS FORECAST

US property/casualty and life group Cincinnati Financial’s second-quarter net earnings fell 23% to $703m, as a $417m, 51% decline in investment gains offset improved underwriting results. Operating income per share rose to $1.79 from 44¢ and easily beat analysts’ forecast of 99¢. The combined ratio in the group’s property/casualty segment improved by 17.6 points to 85.5%, reflecting a swing to $221m in underwriting income from a loss of $41m. Chairman, president and chief executive Steven Johnston said a decline in weather-related catastrophe losses generated the segment’s “best results in 15 years.” Net written premiums for the quarter grew 10% to $1.71bn.