How do you interpret long-duration insurance, other — removal of shadow adjustments?

This is a transition-specific accounting effect and does not reflect ongoing operational performance.

How does long-duration insurance, other — removal of shadow adjustments compare across companies?

Specific to companies transitioning to LDTI accounting standards; peers report similar transition adjustments.

Cincinnati Financial CINF Long-Duration Insurance, Other — Removal of shadow adjustments

Discontinued — last reported Q4 '20

Similar metrics at other companies

UNMLong-term Care — Removal of Shadow Adjustments, LFPB

-$3.47B—

UNMColonial Life — Removal of Shadow Adjustments, LFPB

-$44.5M—

UNMIndividual Disability — Removal of Shadow Adjustments, LFPB

-$446.1M—

PRUIndividual Life — Additional Liability, Long-Duration Insurance, Adjustment Due To Reserve Flooring

-$440M+30.4%

UNMOther Insurance Product Line — Removal of Shadow Adjustments, LFPB

-$600.2M—

CRBGLong-Duration Insurance Contracts — Adjustments for the reclassification from/(to) the liability for the future policy benefits

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Other financials

Income statement

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Revenue$2.9B+11.6%

Net income$274.0M+404%

EPS (diluted)$1.75+407%

Balance sheet

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Cash & equivalents$1.2B+19.8%

Total debt$791.0M+0.1%

Total equity$15.7B+14.6%

Total assets$41.2B+10.6%

Cash flow

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Operating cash flow$656.0M+112%

CapEx$2.0M-33.3%

Free cash flow$654.0M+113%

Valuation

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Market cap$26.33B+5.9%

Enterprise value$25.91B+5.1%

P/E9.6×-7.6×

P/S2×-0.2×

Profitability

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Net margin21.3%+8.1pp

FCF margin26.6%+3.0pp

Returns & leverage

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Return on equity18.7%+7.8pp

Debt / equity0.1×0.0×

Where this comes from

Reported directly by Cincinnati Financial in its filing.

Tagged under the XBRL concept cinf:ASU201812TransitionDateEffectOfRemovalOfShadowAdjustments.

The official record: Cincinnati Financial’s 10-K, filed February 26, 2024, on SEC EDGAR. View the filing →

Questions, answered.

What does long-duration insurance, other — removal of shadow adjustments mean?: A one-time accounting adjustment to remove historical shadow accounting entries for long-term insurance contracts.
How do you interpret long-duration insurance, other — removal of shadow adjustments?: This is a transition-specific accounting effect and does not reflect ongoing operational performance.
How does long-duration insurance, other — removal of shadow adjustments compare across companies?: Specific to companies transitioning to LDTI accounting standards; peers report similar transition adjustments.