•Fourth-quarter 2025 net income of $676 million, or $4.29 per share, compared with $405 million, or $2.56 per share, in the fourth quarter of 2024, after recognizing a $145 million fourth-quarter 2025 after-tax increase in the fair value of equity securities still held.
•Full-year 2025 net income of $2.393 billion, or $15.17 per share, compared with $2.292 billion, or $14.53 per share, in 2024.
•$34 million or 7% increase in fourth-quarter 2025 non-GAAP operating income* to $531 million, or $3.37 per share, compared with $497 million, or $3.14 per share, in the fourth quarter of last year.
•$57 million or 5% increase in full-year 2025 non-GAAP operating income to $1.254 billion, or $7.95 per share, up from $1.197 billion, or $7.58 per share, with an increase of $112 million in after-tax net investment income partially offset by a decrease of $62 million in after-tax property casualty underwriting profit.
•$271 million increase in fourth-quarter 2025 net income, compared with fourth-quarter 2024, including the effects of after-tax net increases of $237 million from net investment gains, $21 million from property casualty underwriting profit and $20 million from investment income.
•$102.35 book value per share at December 31, 2025, up $13.24 since year-end 2024.
•18.8% value creation ratio for full-year 2025, compared with 19.8% for 2024.
Financial Highlights
(Dollars in millions except per share data)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Revenue Data
Earned premiums
$
2,592
$
2,365
10
$
9,983
$
8,889
12
Investment income, net of expenses
305
280
9
1,165
1,025
14
Total revenues
3,091
2,538
22
12,631
11,337
11
Income Statement Data
Net income
$
676
$
405
67
$
2,393
$
2,292
4
Investment gains and losses, after-tax
145
(92)
nm
1,139
1,095
4
Non-GAAP operating income*
$
531
$
497
7
$
1,254
$
1,197
5
Per Share Data (diluted)
Net income
$
4.29
$
2.56
68
$
15.17
$
14.53
4
Investment gains and losses, after-tax
0.92
(0.58)
nm
7.22
6.95
4
Non-GAAP operating income*
$
3.37
$
3.14
7
$
7.95
$
7.58
5
Book value
$
102.35
$
89.11
15
Cash dividend declared
$
0.87
$
0.81
7
$
3.48
$
3.24
7
Diluted weighted average shares outstanding
157.5
158.1
0
157.7
157.8
0
* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.
Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement.
CINF 4Q25 Release 1
Insurance Operations Highlights
•85.2% fourth-quarter 2025 property casualty combined ratio, up from 84.7% for the fourth quarter of 2024. Full-year 2025 property casualty combined ratio at 94.9%, with net written premiums up 9%.
•5% growth in fourth-quarter 2025 net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
•$331 million fourth-quarter 2025 property casualty new business written premiums. Agencies appointed since the beginning of 2024 contributed $33 million or 10% of total fourth-quarter new business written premiums.
•$31 million of fourth-quarter 2025 life insurance subsidiary net income and 3% growth in fourth-quarter 2025 term life insurance earned premiums. Full-year 2025 net income rose 16%.
Investment and Balance Sheet Highlights
•9% or $25 million increase in fourth-quarter 2025 pretax investment income, including a 10% increase in bond interest income.
•12% full-year increase in fair value of total investments at December 31, 2025, including a 12% increase for the bond portfolio and a 13% increase for the stock portfolio.
•$5.568 billion parent company cash and marketable securities at year-end 2025, up 7% from a year ago.
Resiliency Led to Insurance Profitability
Stephen M. Spray, president and chief executive officer, commented: “After beginning the year with the worst catastrophe loss in our company’s history, it took persistence and focus to record a 4% increase in full-year net income of $2.393 billion and $1.254 billion in full-year 2025 non-GAAP operating income – a 5% increase compared with 2024.
“For the fourth quarter, our insurance operations produced a combined ratio of 85.2% – one of our best fourth quarters in the last decade. On a full-year basis, our combined ratio of 94.9% is comfortably within our long-term annual average goal of 92% to 98% and marks 14 consecutive years of achieving an underwriting profit.
“Importantly, we continued seeing steady progress in our current accident year combined ratio before catastrophe losses. That measure improved 0.4 percentage points to 86.1% for 2025, even with the unfavorable effects of $52 million in reinsurance reinstatement premiums related to the California wildfires.
“Our life insurance subsidiary also contributed nicely, recording a 16% increase in net income to $106 million.”
Balancing Pricing Discipline and Growth
“Total property casualty net written premiums increased 9% for the year, crossing $10 billion for the first time in our company’s 75-year history. While new business written premiums slowed in total for the fourth quarter and the full year, our commercial business recorded 4% growth in standard and 17% growth in excess and surplus lines new business over the course of 2025.
“Looking ahead, we know that it will take continued pricing discipline and product innovation – supported by the ongoing appointment of new agencies – to keep up the profitable growth of our insurance business.
“Our 189 commercial lines field marketing representatives work closely with the agencies in their territories, developing a deep understanding of the market conditions unique to that community. Leaning on their colleagues in a variety of disciplines, including excess and surplus lines, management liability, life insurance and loss control – they can craft comprehensive risk management programs enhanced by the ease of doing business through the Cincinnati family of companies.
“We believe that our hallmarks of strong agency relationships and fast, fair and empathetic claims service, will continue to encourage appointed agents to place their high-quality business with Cincinnati Insurance.”
Record Book Value
“At December 31, 2025, our book value per share climbed 15% from a year ago, to $102.35, bolstered by a 14% increase in net pretax investment income, reaching nearly $1.2 billion for the year.
“Consolidated cash and total investments reached more than $33 billion. Our ample capital allows us to execute our long-term strategies and, at the same time, continue to pay dividends to shareholders. Our value creation ratio for 2025, which considers the dividends we pay as well as the growth in book value, was 18.8%, ahead of our 10% to 13% average annual target for this measure.”
CINF 4Q25 Release 2
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$
2,508
$
2,284
10
$
9,653
$
8,568
13
Fee revenues
3
3
0
14
12
17
Total revenues
2,511
2,287
10
9,667
8,580
13
Loss and loss expenses
1,397
1,255
11
6,335
5,436
17
Underwriting expenses
736
680
8
2,831
2,564
10
Underwriting profit
$
378
$
352
7
$
501
$
580
(14)
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
55.7
%
55.0
%
0.7
65.6
%
63.5
%
2.1
Underwriting expenses
29.5
29.7
(0.2)
29.3
29.9
(0.6)
Combined ratio
85.2
%
84.7
%
0.5
94.9
%
93.4
%
1.5
% Change
% Change
Agency renewal written premiums
$
1,939
$
1,759
10
$
8,023
$
7,080
13
Agency new business written premiums
331
382
(13)
1,474
1,541
(4)
Other written premiums
91
102
(11)
585
622
(6)
Net written premiums
$
2,361
$
2,243
5
$
10,082
$
9,243
9
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
55.3
%
51.0
%
4.3
56.8
%
56.6
%
0.2
Current accident year catastrophe losses
1.2
5.0
(3.8)
10.8
9.6
1.2
Prior accident years before catastrophe losses
(0.6)
(0.0)
(0.6)
(1.3)
(1.6)
0.3
Prior accident years catastrophe losses
(0.2)
(1.0)
0.8
(0.7)
(1.1)
0.4
Loss and loss expense ratio
55.7
%
55.0
%
0.7
65.6
%
63.5
%
2.1
Current accident year combined ratio before catastrophe losses
84.8
%
80.7
%
4.1
86.1
%
86.5
%
(0.4)
•5% and 9% growth in fourth-quarter and full-year 2025 property casualty net written premiums, reflecting price increases, premium growth initiatives and a higher level of insured exposures. The contribution to growth from Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM in total was less than 1 percentage point for both the fourth-quarter and full-year.
•13% and 4% decrease in fourth-quarter and full-year 2025 new business premiums written by agencies, compared with a year ago. The full-year decrease included an $87 million increase in standard market property casualty production from agencies appointed since the beginning of 2024.
•420 new agency appointments in full-year 2025, including 71 that market only our personal lines products.
•0.5 percentage-point fourth-quarter 2025 combined ratio increase, compared with 2024, including a decrease of 3.0 points for losses from catastrophes.
•1.5 percentage-point full-year 2025 combined ratio increase, including an increase of 1.6 points for losses from catastrophes.
•0.4 percentage-point improvement in full-year 2025 current accident year combined ratio before catastrophe losses, including an unfavorable 0.5 points for the net effect of $52 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.
•0.8 and 2.0 percentage-point fourth-quarter and full-year 2025 benefit from favorable prior accident year reserve development of $20 million and $196 million, compared with 1.0 points or $25 million for fourth-quarter 2024 and 2.7 points or $236 million of favorable development for full-year 2024.
•0.2 percentage-point increase, to 56.8%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 1.4 points for the portion estimated as reserves for claims incurred but not reported (IBNR) and a decrease of 1.2 points for the case incurred portion.
•0.6 percentage-point decrease in full-year 2025 underwriting expense ratio, compared with the same period of 2024, primarily due to growth in earned premiums outpacing growth in various expenses.
CINF 4Q25 Release 3
Commercial Lines Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$
1,243
$
1,160
7
$
4,863
$
4,486
8
Fee revenues
1
1
0
5
4
25
Total revenues
1,244
1,161
7
4,868
4,490
8
Loss and loss expenses
721
624
16
2,970
2,795
6
Underwriting expenses
379
356
6
1,459
1,384
5
Underwriting profit
$
144
$
181
(20)
$
439
$
311
41
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
57.9
%
53.8
%
4.1
61.1
%
62.3
%
(1.2)
Underwriting expenses
30.5
30.7
(0.2)
30.0
30.9
(0.9)
Combined ratio
88.4
%
84.5
%
3.9
91.1
%
93.2
%
(2.1)
% Change
% Change
Agency renewal written premiums
$
1,039
$
1,001
4
$
4,350
$
4,087
6
Agency new business written premiums
180
179
1
768
741
4
Other written premiums
(34)
(37)
8
(120)
(138)
13
Net written premiums
$
1,185
$
1,143
4
$
4,998
$
4,690
7
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
59.6
%
53.8
%
5.8
59.9
%
59.3
%
0.6
Current accident year catastrophe losses
0.5
1.8
(1.3)
3.9
6.1
(2.2)
Prior accident years before catastrophe losses
(2.3)
(0.9)
(1.4)
(2.3)
(2.4)
0.1
Prior accident years catastrophe losses
0.1
(0.9)
1.0
(0.4)
(0.7)
0.3
Loss and loss expense ratio
57.9
%
53.8
%
4.1
61.1
%
62.3
%
(1.2)
Current accident year combined ratio before catastrophe losses
90.1
%
84.5
%
5.6
89.9
%
90.2
%
(0.3)
•4% and 7% growth in fourth-quarter and full-year 2025 commercial lines net written premiums, primarily due to higher agency renewal written premiums. Fourth-quarter and full-year 2025 commercial lines average renewal pricing increased in the mid-single-digit percent range.
•1% and 4% increase in fourth-quarter and full-year 2025 new business written premiums, as we continue to carefully underwrite each policy in a highly competitive market.
•3.9 percentage-point fourth-quarter 2025 combined ratio increase, compared with 2024, including a decrease of 0.3 points for losses from catastrophes.
•2.1 percentage-point full-year 2025 combined ratio improvement, including a decrease of 1.9 points for losses from catastrophes.
•2.2 and 2.7 percentage-point fourth-quarter and full-year 2025 benefit from favorable prior accident year reserve development of $27 million and $130 million, compared with 1.8 points or $21 million for fourth-quarter 2024 and 3.1 points or $138 million of favorable development for full-year 2024.
•0.6 percentage-point increase, to 59.9%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 0.6 points in the ratio for current accident year losses of $2 million or more per claim.
CINF 4Q25 Release 4
Personal Lines Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$
859
$
726
18
$
3,199
$
2,623
22
Fee revenues
1
1
0
5
5
0
Total revenues
860
727
18
3,204
2,628
22
Loss and loss expenses
468
374
25
2,419
1,795
35
Underwriting expenses
231
208
11
896
762
18
Underwriting profit (loss)
$
161
$
145
11
$
(111)
$
71
nm
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
54.6
%
51.5
%
3.1
75.6
%
68.5
%
7.1
Underwriting expenses
26.9
28.7
(1.8)
28.0
29.0
(1.0)
Combined ratio
81.5
%
80.2
%
1.3
103.6
%
97.5
%
6.1
% Change
% Change
Agency renewal written premiums
$
764
$
625
22
$
3,128
$
2,495
25
Agency new business written premiums
92
154
(40)
476
604
(21)
Other written premiums
(29)
(26)
(12)
(174)
(100)
(74)
Net written premiums
$
827
$
753
10
$
3,430
$
2,999
14
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
50.7
%
49.7
%
1.0
53.6
%
53.9
%
(0.3)
Current accident year catastrophe losses
1.7
1.8
(0.1)
22.2
15.6
6.6
Prior accident years before catastrophe losses
2.6
1.6
1.0
1.0
0.7
0.3
Prior accident years catastrophe losses
(0.4)
(1.6)
1.2
(1.2)
(1.7)
0.5
Loss and loss expense ratio
54.6
%
51.5
%
3.1
75.6
%
68.5
%
7.1
Current accident year combined ratio before catastrophe losses
77.6
%
78.4
%
(0.8)
81.6
%
82.9
%
(1.3)
•10% and 14% growth in fourth-quarter and full-year 2025 personal lines net written premiums, including higher renewal written premiums that benefited from rate increases in the high-single-digit percent range.
•40% and 21% decrease in fourth-quarter and full-year 2025 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market. The fourth quarter decrease included $8 million for California.
•1.3 percentage-point fourth-quarter 2025 combined ratio increase, compared with 2024, including an increase of 1.1 points for losses from catastrophes.
•6.1 percentage-point full-year 2025 combined ratio increase, including an increase of 7.1 points for losses from catastrophes and an increase in the underwriting expense ratio of 0.5 points for the effect of reinstatement premiums.
•$20 million of fourth-quarter 2025 unfavorable prior accident year reserve development, primarily from personal umbrella claims, compared with less than $1 million for fourth-quarter 2024.
•0.2 percentage-point full-year 2025 benefit from favorable prior accident year reserve development of $4 million, compared to 1.0 points or $26 million for full-year 2024.
•0.3 percentage-point improvement, to 53.6%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 0.5 points in the ratio for current accident year losses of $2 million or more per claim.
CINF 4Q25 Release 5
Excess and Surplus Lines Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$
188
$
168
12
$
698
$
615
13
Fee revenues
1
1
0
4
3
33
Total revenues
189
169
12
702
618
14
Loss and loss expenses
108
112
(4)
425
411
3
Underwriting expenses
51
45
13
192
167
15
Underwriting profit
$
30
$
12
150
$
85
$
40
113
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
57.5
%
66.5
%
(9.0)
60.9
%
66.9
%
(6.0)
Underwriting expenses
27.2
26.6
0.6
27.5
27.1
0.4
Combined ratio
84.7
%
93.1
%
(8.4)
88.4
%
94.0
%
(5.6)
% Change
% Change
Agency renewal written premiums
$
136
$
133
2
$
545
$
498
9
Agency new business written premiums
59
49
20
230
196
17
Other written premiums
(11)
(11)
0
(46)
(40)
(15)
Net written premiums
$
184
$
171
8
$
729
$
654
11
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
58.4
%
63.1
%
(4.7)
63.1
%
64.2
%
(1.1)
Current accident year catastrophe losses
(0.4)
1.0
(1.4)
0.5
1.3
(0.8)
Prior accident years before catastrophe losses
(0.3)
2.3
(2.6)
(2.5)
1.4
(3.9)
Prior accident years catastrophe losses
(0.2)
0.1
(0.3)
(0.2)
0.0
(0.2)
Loss and loss expense ratio
57.5
%
66.5
%
(9.0)
60.9
%
66.9
%
(6.0)
Current accident year combined ratio before catastrophe losses
85.6
%
89.7
%
(4.1)
90.6
%
91.3
%
(0.7)
•8% and 11% growth in fourth-quarter and full-year 2025 excess and surplus lines net written premiums, including fourth-quarter 2025 renewal price increases averaging in the mid-single-digit percent range.
•20% and 17% increase in fourth-quarter and full-year 2025 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
•8.4 percentage-point fourth-quarter 2025 combined ratio improvement, primarily due to a decrease of 4.7 points from current accident year loss and loss expenses before catastrophes.
•5.6 percentage-point full-year 2025 combined ratio improvement, primarily due to a decrease of 3.9 points from prior accident year loss and loss expenses before catastrophes.
•0.5 percentage-point fourth-quarter 2025 favorable prior accident year reserve development of $1 million, compared with unfavorable 2.4 points or $3 million for fourth-quarter 2024.
•2.7 percentage-point full-year 2025 favorable prior accident year reserve development of $19 million, compared with unfavorable development of 1.4 points or $8 million for full-year 2024.
•1.1 percentage-point improvement, to 63.1%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 0.4 points in the ratio for current accident year losses of $2 million or more per claim.
CINF 4Q25 Release 6
Life Insurance Subsidiary Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Term life insurance
$
61
$
59
3
$
240
$
233
3
Whole life insurance
14
13
8
54
52
4
Universal life and other
9
9
0
36
36
0
Earned premiums
84
81
4
330
321
3
Investment income, net of expenses
51
48
6
202
190
6
Investment gains and losses, net
—
2
(100)
(6)
(7)
14
Fee revenues
2
1
100
6
5
20
Total revenues
137
132
4
532
509
5
Contract holders’ benefits incurred
75
75
0
305
301
1
Underwriting expenses incurred
23
23
0
93
93
0
Total benefits and expenses
98
98
0
398
394
1
Net income before income tax
39
34
15
134
115
17
Income tax
8
6
33
28
24
17
Net income of the life insurance subsidiary
$
31
$
28
11
$
106
$
91
16
•$9 million or 3% increase in full-year 2025 earned premiums, including a 3% increase for term life insurance, our largest life insurance product line.
•$15 million or 16% increase in full-year 2025 life insurance subsidiary net income, primarily due to increases in investment income and earned premiums.
•$160 million or 12% full-year 2025 increase to $1.467 billion in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, primarily from net income and a decrease in unrealized investment losses on fixed-maturity securities.
CINF 4Q25 Release 7
Investment and Balance Sheet Highlights
Investments Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Investment income, net of expenses
$
305
$
280
9
$
1,165
$
1,025
14
Investment interest credited to contract holders
(32)
(31)
(3)
(127)
(125)
(2)
Investment gains and losses, net
183
(116)
nm
1,442
1,391
4
Investments profit
$
456
$
133
243
$
2,480
$
2,291
8
Investment income:
Interest
$
224
$
204
10
$
875
$
733
19
Dividends
74
74
0
280
283
(1)
Other
11
7
57
27
25
8
Less investment expenses
4
5
(20)
17
16
6
Investment income, pretax
305
280
9
1,165
1,025
14
Less income taxes
52
47
11
200
172
16
Total investment income, after-tax
$
253
$
233
9
$
965
$
853
13
Investment returns:
Average invested assets plus cash and cash equivalents
$
33,086
$
29,987
$
31,655
$
28,374
Average yield pretax
3.69
%
3.73
%
3.68
%
3.61
%
Average yield after-tax
3.06
3.11
3.05
3.01
Effective tax rate
17.2
17.0
17.2
16.8
Fixed-maturity returns:
Average amortized cost
$
18,224
$
16,554
$
17,743
$
15,697
Average yield pretax
4.92
%
4.93
%
4.93
%
4.67
%
Average yield after-tax
4.02
4.03
4.02
3.83
Effective tax rate
18.3
18.3
18.4
18.0
•$25 million or 9% rise in fourth-quarter 2025 pretax investment income, primarily due to a 10% increase in interest income from fixed-maturity securities.
•$219 million in fourth-quarter and $1.814 billion in full-year 2025 pretax total investment gains, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio.
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
2025
2024
Investment gains and losses on equity securities sold, net
$
(2)
$
—
$
(13)
$
181
Unrealized gains and losses on equity securities still held, net
183
(136)
1,448
1,275
Investment gains and losses on fixed-maturity securities, net
(12)
(2)
(25)
(116)
Other
14
22
32
51
Subtotal - investment gains and losses reported in net income
183
(116)
1,442
1,391
Change in unrealized investment gains and losses - fixed maturities
36
(350)
372
17
Total
$
219
$
(466)
$
1,814
$
1,408
CINF 4Q25 Release 8
Balance Sheet Highlights
(Dollars in millions except share data)
At December 31,
At December 31,
2025
2024
Total investments
$
31,783
$
28,378
Total assets
41,002
36,501
Short-term debt
25
25
Long-term debt
790
790
Shareholders’ equity
15,911
13,935
Book value per share
102.35
89.11
Debt-to-total-capital ratio
4.9
%
5.5
%
•$33.214 billion in consolidated cash and invested assets at December 31, 2025, an increase of 13% from $29.361 billion at year-end 2024.
•$18.123 billion bond portfolio at December 31, 2025, with an average rating of A2/A. Fair value increased $493 million during the fourth quarter of 2025, including $667 million in net purchases of fixed-maturity securities.
•$12.694 billion equity portfolio was 39.9% of total investments, including $8.539 billion in appreciated value before taxes at December 31, 2025. Fair value increased $147 million during the fourth quarter of 2025, including $44 million in net sales of equity securities.
•$400 million unsecured revolving credit agreement established during fourth-quarter 2025, enhancing financial flexibility and financial strength.
•$3.59 fourth-quarter 2025 increase in book value per share, including an addition of $3.42 from net income before investment gains and $1.04 from investment portfolio net investment losses or changes in unrealized gains for fixed-maturity securities that were partially offset by $0.87 from dividends declared to shareholders.
•Value creation ratio of 18.8% for full-year 2025, including 9.1% from net income before investment gains, which includes underwriting and investment income, 10.2% from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities, including 8.2% from our stock portfolio and 2.0% from our bond portfolio, partially offset by 0.5% from other items.
For additional information or to register for our conference call webcast, please visit investors.cinfin.com.
About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.
Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by forward-looking statements. Any forward-looking statements contained herein, are based upon our current estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like “seek,” “expect,” “will,” “should,” “could,” “might,” “anticipate,” “believe,” “estimate,” “intend,” “likely,” “future,” or other similar expressions. Forward-looking statements speak only as of the date they were made; we assume no obligation to update such statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not limited to:
Insurance-Related Risks
•Risks and uncertainties associated with our loss reserves or actual claim costs exceeding reserves
•Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance
•Unusually high levels of catastrophe losses due to risk concentrations or changes in weather patterns, environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes; and our ability to manage catastrophe risk
•Risks associated with analytical models in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance, and catastrophe risk management
•Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates
•Events or conditions that could weaken or harm our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth
•Mergers, acquisitions, and other consolidations of agencies that result in a concentration of a significant amount of premium in one agency or agency group and/or alter our competitive advantages
•Our inability to manage business opportunities, growth prospects, and expenses for our ongoing operations
•Changing consumer insurance-buying habits
•The inability to obtain adequate ceded reinsurance on acceptable terms, for acceptable amounts, and from financially strong reinsurers; and the potential for nonpayment or delay in payment by reinsurers
•Domestic and global events, such as the wars in Ukraine and in the Middle East, future pandemics, inflationary trends, changes in U.S. trade and tariff policy, and disruptions in the banking and financial services industry, resulting in insurance losses, capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:
◦Securities market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions that affect our investment portfolio and book value
◦Significant or prolonged decline in the fair value of securities and impairment of the assets
◦Significant decline in investment income due to reduced or eliminated dividend payouts from securities
◦Significant rise in losses from surety or director and officer policies written for financial institutions or other insured entities or in losses from policies written by Cincinnati Re or Cincinnati Global
◦An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses
◦Decreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activity
◦The inability of our workforce, agencies, or vendors to perform necessary business functions
Financial, Economic, and Investment Risks
•Declines in overall stock market values negatively affecting our equity portfolio and book value
•Downgrades in our financial strength ratings
•Interest rate fluctuations or other factors that could significantly affect:
◦Our ability to generate growth in investment income
◦Values of our fixed-maturity investments and accounts in which we hold bank-owned life insurance contract assets
◦Our traditional life policy reserves
•Economic volatility and illiquidity associated with our alternative investments in private equity, private credit, real property, and limited partnerships
CINF 4Q25 Release 10
•Failure to comply with covenants and other requirements under our credit facilities, senior debt, and other debt obligations
•Recession, prolonged elevated inflation, or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies
•The inability of our subsidiaries to pay dividends consistent with current or past levels impacting our ability to pay shareholder dividends or repurchase shares
General Business, Technology, and Operational Risks
•Ineffective information technology systems or failing to develop and implement improvements in technology
•Difficulties with technology or data security breaches, including cyberattacks, could negatively affect our, or our agents’, ability to conduct business; disrupt our relationships with agents, policyholders, and others; cause reputational damage, mitigation expenses, data loss, and expose us to liability
•Difficulties with our operations and technology that may negatively impact our ability to conduct business, including cloud-based data information storage, data security, remote working capabilities, and/or outsourcing relationships and third-party operations and data security
•Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products
•Delays, inadequate data developed internally or from third parties, or performance inadequacies from ongoing development and implementation of underwriting and pricing models and methods, including usage-based insurance methods, automation, artificial intelligence, or technology projects and enhancements expected to increase our efficiency, pricing accuracy, underwriting profit, and competitiveness
•Intense competition, and the impact of innovation, emerging technologies, artificial intelligence and changing customer preferences on the insurance industry and the markets in which we operate, could harm our ability to maintain or increase our business volumes and profitability
•Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that the segment could not achieve sustainable profitability
•Unforeseen departure of certain executive officers or other key employees that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others
•Our inability, or the inability of our independent agents, to attract and retain personnel
•Events, such as a pandemic, an epidemic, natural catastrophe, or terrorism, which could hamper our ability to assemble our workforce, work effectively in a remote environment, or other failures of business continuity or disaster recovery programs
Regulatory, Compliance, and Legal Risks
•Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:
◦Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates
◦Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules, and regulations
◦Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business
◦Increase assessments for guaranty funds, other insurance‑related assessments, or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes
◦Increase our provision for federal income taxes due to changes in tax laws, regulations, or interpretations
◦Increase other expenses
◦Limit our ability to set fair, adequate, and reasonable rates
◦Restrict our ability to cancel policies
◦Impose new underwriting standards
◦Place us at a disadvantage in the marketplace
◦Restrict our ability to execute our business model, including the way we compensate agents
CINF 4Q25 Release 11
•Adverse outcomes from litigation, environmental claims, mass torts or administrative proceedings, including effects of social inflation and third-party litigation funding on the size and frequency of litigation awards
•Events or actions, including unauthorized intentional circumvention of controls, which reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002
•Effects of changing social, global, economic, and regulatory environments
•Additional measures affecting corporate financial reporting and governance that can affect the market value of our common stock
Risks and uncertainties are further discussed in other filings with the Securities and Exchange Commission, including our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.
* * *
CINF 4Q25 Release 12
Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in millions except per share data)
December 31,
December 31,
2025
2024
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2025—$18,304; 2024—$16,735)
$
18,123
$
16,182
Equity securities, at fair value (cost: 2025—$4,155; 2024—$3,953)
12,694
11,185
Short-term investments, at fair value (amortized cost: 2025—$148; 2024—$298)
148
298
Other invested assets
818
713
Total investments
31,783
28,378
Cash and cash equivalents
1,431
983
Investment income receivable
235
222
Finance receivable
146
120
Premiums receivable
3,142
2,969
Reinsurance recoverable
655
523
Prepaid reinsurance premiums
71
70
Deferred policy acquisition costs
1,344
1,242
Land, building and equipment, net, for company use (accumulated depreciation: 2025—$367; 2024—$347)
219
214
Other assets
995
828
Separate accounts
981
952
Total assets
$
41,002
$
36,501
Liabilities
Insurance reserves
Loss and loss expense reserves
$
11,507
$
10,003
Life policy and investment contract reserves
2,992
2,960
Unearned premiums
5,254
4,813
Other liabilities
1,638
1,487
Deferred income tax
1,833
1,476
Note payable
25
25
Long-term debt and lease obligations
861
850
Separate accounts
981
952
Total liabilities
25,091
22,566
Shareholders' Equity
Common stock, par value—$2 per share; (authorized: 2025 and 2024—500 million shares; issued: 2025 and 2024—198.3 million shares)
397
397
Paid-in capital
1,561
1,502
Retained earnings
16,719
14,869
Accumulated other comprehensive loss
(34)
(309)
Treasury stock at cost (2025—42.9 million shares and 2024—41.9 million shares)
(2,732)
(2,524)
Total shareholders' equity
15,911
13,935
Total liabilities and shareholders' equity
$
41,002
$
36,501
CINF 4Q25 Release 13
Cincinnati Financial Corporation
Condensed Consolidated Statements of Income (unaudited)
(Dollars in millions except per share data)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
2025
2024
Revenues
Earned premiums
$
2,592
$
2,365
$
9,983
$
8,889
Investment income, net of expenses
305
280
1,165
1,025
Investment gains and losses, net
183
(116)
1,442
1,391
Fee revenues
5
4
20
17
Other revenues
6
5
21
15
Total revenues
3,091
2,538
12,631
11,337
Benefits and Expenses
Insurance losses and contract holders’ benefits
1,472
1,330
6,640
5,737
Underwriting, acquisition and insurance expenses
759
703
2,924
2,657
Interest expense
13
13
53
53
Other operating expenses
7
13
34
32
Total benefits and expenses
2,251
2,059
9,651
8,479
Income Before Income Taxes
840
479
2,980
2,858
Provision (Benefit) for Income Taxes
Current
137
156
304
449
Deferred
27
(82)
283
117
Total provision for income taxes
164
74
587
566
Net Income
$
676
$
405
$
2,393
$
2,292
Per Common Share
Net income—basic
$
4.34
$
2.59
$
15.32
$
14.65
Net income—diluted
4.29
2.56
15.17
14.53
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; additional prior-period reconciliations available at investors.cinfin.com.)
Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
Management uses certain non-GAAP financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
•Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses are recognized from certain changes in
CINF 4Q25 Release 14
market values of securities without actual realization. Management believes that the level of investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.
For these reasons, many investors and shareholders consider non-GAAP operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.
• Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global.
•Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.
CINF 4Q25 Release 15
Cincinnati Financial Corporation
Net Income Reconciliation
(Dollars in millions except per share data)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
2025
2024
Net income
$
676
$
405
$
2,393
$
2,292
Less:
Investment gains and losses, net
183
(116)
1,442
1,391
Income tax on investment gains and losses
(38)
24
(303)
(296)
Investment gains and losses, after-tax
145
(92)
1,139
1,095
Non-GAAP operating income
$
531
$
497
$
1,254
$
1,197
Diluted per share data:
Net income
$
4.29
$
2.56
$
15.17
$
14.53
Less:
Investment gains and losses, net
1.16
(0.73)
9.14
8.82
Income tax on investment gains and losses
(0.24)
0.15
(1.92)
(1.87)
Investment gains and losses, after-tax
0.92
(0.58)
7.22
6.95
Non-GAAP operating income
$
3.37
$
3.14
$
7.95
$
7.58
Life Insurance Reconciliation
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
2025
2024
Net income of life insurance subsidiary
$
31
$
28
$
106
$
91
Investment gains and losses, net
—
2
(6)
(7)
Income tax on investment gains and losses
—
1
(1)
(1)
Non-GAAP operating income
31
27
111
97
Investment income, net of expenses
(51)
(48)
(202)
(190)
Investment income credited to contract holders
32
31
127
125
Income tax excluding tax on investment gains and losses, net
8
5
29
25
Life insurance segment profit
$
20
$
15
$
65
$
57
CINF 4Q25 Release 16
Property Casualty Insurance Reconciliation
(Dollars in millions)
Three months ended December 31, 2025
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$
2,361
$
1,185
$
827
$
184
$
165
Unearned premiums change
147
58
32
4
53
Earned premiums
$
2,508
$
1,243
$
859
$
188
$
218
Underwriting profit
$
378
$
144
$
161
$
30
$
43
(Dollars in millions)
Twelve months ended December 31, 2025
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$
10,082
$
4,998
$
3,430
$
729
$
925
Unearned premiums change
(429)
(135)
(231)
(31)
(32)
Earned premiums
$
9,653
$
4,863
$
3,199
$
698
$
893
Underwriting profit (loss)
$
501
$
439
$
(111)
$
85
$
88
(Dollars in millions)
Three months ended December 31, 2024
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$
2,243
$
1,143
$
753
$
171
$
176
Unearned premiums change
41
17
(27)
(3)
54
Earned premiums
$
2,284
$
1,160
$
726
$
168
$
230
Underwriting profit
$
352
$
181
$
145
$
12
$
14
(Dollars in millions)
Twelve months ended December 31, 2024
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$
9,243
$
4,690
$
2,999
$
654
$
900
Unearned premiums change
(675)
(204)
(376)
(39)
(56)
Earned premiums
$
8,568
$
4,486
$
2,623
$
615
$
844
Underwriting profit
$
580
$
311
$
71
$
40
$
158
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
*Included in Other are the results of Cincinnati Re and Cincinnati Global.
CINF 4Q25 Release 17
Cincinnati Financial Corporation
Other Measures
•Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company’s insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this measure is useful, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all-inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting.
• Written premium: Under statutory accounting rules in the U.S., property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. The difference between written and earned premium is unearned premium.
Value Creation Ratio Calculations
(Dollars are per share)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
2025
2024
Value creation ratio:
End of period book value*
$
102.35
$
89.11
$
102.35
$
89.11
Less beginning of period book value
98.76
88.32
89.11
77.06
Change in book value
3.59
0.79
13.24
12.05
Dividend declared to shareholders
0.87
0.81
3.48
3.24
Total value creation
$
4.46
$
1.60
$
16.72
$
15.29
Value creation ratio from change in book value**
3.6
%
0.9
%
14.9
%
15.6
%
Value creation ratio from dividends declared to shareholders***
0.9
0.9
3.9
4.2
Value creation ratio
4.5
%
1.8
%
18.8
%
19.8
%
* Book value per share is calculated by dividing end of period total shareholders’ equity by end of period shares outstanding
** Change in book value divided by the beginning of period book value
*** Dividend declared to shareholders divided by beginning of period book value
