How do you interpret whole life insurance — removal of shadow adjustments?

This is a non-recurring transition effect and does not signal ongoing operational performance.

How does whole life insurance — removal of shadow adjustments compare across companies?

Specific to companies transitioning to LDTI (Long-Duration Targeted Improvements) accounting standards.

Cincinnati Financial CINF Whole Life Insurance — Removal of shadow adjustments

Discontinued — last reported Q4 '20

Similar metrics at other companies

UNMVoluntary Benefits — Removal of Shadow Adjustments, LFPB

-$9.9M—

UNMColonial Life — Removal of Shadow Adjustments, LFPB

-$44.5M—

UNMIndividual Disability — Removal of Shadow Adjustments, LFPB

-$446.1M—

UNMLong-term Care — Removal of Shadow Adjustments, LFPB

-$3.47B—

UNMGroup Life and AD&D — Removal of Shadow Adjustments, LFPB

-$88.5M—

UNMOther Insurance Product Line — Removal of Shadow Adjustments, LFPB

-$600.2M—

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 whole life insurance — removal of shadow adjustments mean?: A one-time accounting adjustment to remove legacy valuation effects from the transition to new insurance accounting standards.
How do you interpret whole life insurance — removal of shadow adjustments?: This is a non-recurring transition effect and does not signal ongoing operational performance.
How does whole life insurance — removal of shadow adjustments compare across companies?: Specific to companies transitioning to LDTI (Long-Duration Targeted Improvements) accounting standards.