Cincinnati Financial Profits Up in Q2

Cincinnati Financial Corp. said profit in the second-quarter rose nearly 2 percent, as lower catastrophe losses helped the company surpass analyst estimates.

But catastrophe losses are typically worst during the third quarter, and the Fairfield, Ohio-based insurer expects $11 million of losses during the quarter from the recent Hurricane Dennis.

Total revenue reached $940 million for the quarter, up from $923 million in second-quarter 2004.

Net income rose to $158 million, or 89 cents a share, from $155 million, or 89 cents a share a year ago. Operating income was 84 cents a share, exclusing investment gains and losses, up from 67 cents a share. Analysts had expected earnings of 68 cents a share in the quarter, according to estimates.

The company had $15 million of catastrophe losses during the quarter, compared with $46 million of losses last year.