Cincinnati Financial Reports Third-Quarter 2025 Results

• Third-quarter 2025 net income of $1.122 billion, or $7.11 per share, compared with $820 million, or $5.20 per share, in the third quarter of 2024, after recognizing a $675 million third-quarter 2025 after-tax increase in the fair value of equity securities still held.
• Third-quarter 2025 non-GAAP operating income* of $449 million, or $2.85 per share, compared with $224 million, or $1.42 per share, in the third quarter of last year. The increase of $225 million included a favorable effect of $152 million from a decrease in after-tax catastrophe losses.
• $302 million increase in third-quarter 2025 net income, compared with third-quarter 2024, including the effects of after-tax net increases of $77 million from net investment gains, $182 million from property casualty underwriting profit and $30 million from investment income.
• $98.76 book value per share at September 30, 2025, up $9.65 since year-end.
• 13.8% value creation ratio for the first nine months of 2025, compared with 17.8% for the same period of 2024.

Insurance Operations Highlights

• 88.2% third-quarter 2025 property casualty combined ratio, improved from 97.4% for the third quarter of 2024.
• 9% growth in third-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
• $356 million third-quarter 2025 property casualty new business written premiums, down 12%. Agencies appointed since the beginning of 2024 contributed $32 million or 9% of total new business written premiums.
• $28 million third-quarter 2025 life insurance subsidiary net income, up $8 million compared with the third quarter of 2024, and 5% growth in third-quarter 2025 term life insurance earned premiums.

Investment and Balance Sheet Highlights

• 14% or $37 million increase in third-quarter 2025 pretax investment income, including a 21% increase in bond interest income and a 1% increase in stock portfolio dividends.
• Three-month increase of 5% in fair value of total investments at September 30, 2025, including a 3% increase for the bond portfolio and an 8% increase for the stock portfolio.
• $5.545 billion parent company cash and marketable securities at September 30, 2025, up 7% from year-end 2024.

Property Casualty Underwriting Results Shine
Stephen M. Spray, president and chief executive officer, commented: "Non-GAAP operating income more than doubled last year's third quarter to $449 million, bolstered by underwriting profits as well as pretax investment income that increased 14% over last year's third quarter.

"Property casualty insurance underwriting led our strong performance. Underwriting profits before taxes rose to $293 million in the third quarter, turning our nine-month results to a positive $123 million. Our combined ratio of 88.2% was our best third quarter result since 2015. On a nine-month basis, our combined ratio was 98.4%. With one quarter to go, we are within striking distance of our target long-term annual average range of 92% to 98%.

"Better weather helped us achieve healthy results for our insurance operations with a third-quarter impact from catastrophes at just 3.7 percentage points. More importantly, our results reflect the diligent execution of our deliberate strategies for profitable growth. We have set ambitious goals for ourselves, and our associates are rising to meet them. As I travel to see agents across the U.S., I'm happy to hear one question repeated, 'How can we do more together?'."

Maintaining Disciplined Growth
"Balancing profitability and growth takes determination and expertise. We continue to invest in the people and the tools we need to further enhance our ability to price each policy based on its individual characteristics. Our field marketing associates are armed with analytics that complement their experience, giving them confidence to compete for our agencies' best business and to walk away from accounts they deem underpriced.

"Net written premiums for the first nine months of 2025 grew 10% compared with the first nine months of 2024, including overall pricing increases in the mid-single-digit range for our standard commercial lines business and the high-single-digit range for our excess and surplus lines and personal lines business. We're supporting the advantages of our local independent agencies through additional risk management solutions and product expansion, such as adding to the capabilities available to our agents through our small business platform powered by Cinergy^SM.

"While new business slowed on a quarter and year-to-date basis, we believe that's a sign of our pricing discipline and some stabilization of the market disruption we observed last year, which contributed to an unusually large amount of submissions for new policies from our agents in 2024. We continue to appoint agencies, creating a pipeline for future growth. So far in 2025, we've appointed 355 new agencies." 

Value for Shareholders
"At September 30, our book value again reached a record high, increasing 11% since December 31, 2024, to $98.76. Consolidated cash and total investments climbed to nearly $33 billion. Our value creation ratio, which considers the dividends we pay as well as our growth in book value, was 13.8% for the first nine months – exceeding our 10% to 13% average annual target for this measure."

• $200 million or 9% growth of third-quarter 2025 property casualty net written premiums, and nine-month growth of 10%, reflecting premium growth initiatives, price increases and a higher level of insured exposures. The contribution to third-quarter growth from Cincinnati Re^® and Cincinnati Global Underwriting Ltd.^SM in total was less than 1 percentage point.
• $50 million decrease in third-quarter 2025 new business premiums written by agencies, driven by our personal lines insurance segment. The $50 million decrease included an $18 million increase in standard market property casualty production from agencies appointed since the beginning of 2024.
• 355 new agency appointments in the first nine months of 2025, including 61 that market only our personal lines products.
• 9.2 percentage-point third-quarter 2025 combined ratio improvement, including a decrease of 9.3 points for losses from catastrophes.
• 1.9 percentage-point nine-month 2025 combined ratio increase, including an increase of 3.2 points from higher catastrophe losses.
• 0.9 percentage-point third-quarter 2025 benefit from favorable prior accident year reserve development of $22 million, compared with 3.2 points or $71 million for third-quarter 2024.
• 2.5 percentage-point nine-month 2025 benefit from favorable prior accident year reserve development, compared with 3.3 points for the first nine months of 2024.
• 1.2 percentage-point improvement in the nine-month 2025 ratio for current accident year loss and loss expenses before catastrophes, including an unfavorable 0.4 points for the net effect of $49 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.
• 0.7 percentage-point decrease in the underwriting expense ratio for the first nine months of 2025, compared with the same period of 2024, primarily due to growth in earned premiums outpacing growth in various expenses.

• $60 million or 5% growth in third-quarter 2025 commercial lines net written premiums, including higher agency renewal premiums partially offset by lower new business written premiums. Seven percent growth in nine-month net written premiums.
• $56 million or 6% increase in third-quarter renewal written premiums, with commercial lines average renewal pricing increases in the mid-single-digit percent range.
• $2 million or 1% decrease in third-quarter 2025 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 1.9 percentage-point third-quarter 2025 combined ratio improvement, including a decrease of 2.8 points for losses from catastrophes.
• 4.2 percentage-point nine-month 2025 combined ratio improvement, including a decrease of 2.5 points from lower catastrophe losses.
• 1.4 percentage-point third-quarter 2025 benefit from favorable prior accident year reserve development of $18 million, compared with 4.4 points or $50 million for third-quarter 2024.
• 2.8 percentage-point nine-month 2025 benefit from favorable prior accident year reserve development, compared with 3.5 points for the first nine months of 2024.

• $119 million or 14% growth in third-quarter 2025 personal lines net written premiums, including higher agency renewal written premiums that benefited from rate increases in the high-single-digit percent range. Cincinnati Private Client^SM third-quarter 2025 net written premiums from our agencies' high net worth clients grew 19%, to $572 million. Sixteen percent growth in nine-month net written premiums in total.
• $49 million or 30% decrease in third-quarter 2025 new business premiums written by agencies, including a decrease of $28 million in our private client personal lines, that included $9 million for California.
• $71 million less favorable effect on nine-month 2025 net written premiums from other written premiums, including $63 million for additional ceded premiums to reinstate our property catastrophe reinsurance treaty after recoveries related to California wildfires.
• 22.1 percentage-point third-quarter 2025 combined ratio improvement, including a decrease of 19.5 points for losses from catastrophes.
• 7.7 percentage-point nine-month 2025 combined ratio increase, including an increase of 9.1 points from higher catastrophe losses and an increase in the underwriting expense ratio of 0.7 points for the effect of reinstatement premiums.
• 1.7 percentage-point third-quarter 2025 unfavorable prior accident year reserve development of $14 million, compared with 0.1 points or less than $1 million for third-quarter 2024.
• 1.0 percentage-point nine-month 2025 benefit from favorable prior accident year reserve development, compared with 1.4 points for the first nine months of 2024.

• $18 million or 11% growth in third-quarter 2025 excess and surplus lines net written premiums, including higher agency renewal written premiums that benefited from price increases averaging in the high-single-digit percent range. Thirteen percent growth in nine-month net written premiums.
• $1 million or 2% increase in third-quarter 2025 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 5.5 percentage-point third-quarter 2025 combined ratio improvement, including 4.9 points in the ratio for favorable reserve development on prior accident year loss and loss expenses.
• 4.5 percentage-point nine-month 2025 combined ratio improvement, including 4.5 points in the ratio for favorable reserve development on prior accident year loss and loss expenses.
• 2.2 percentage-point third-quarter 2025 benefit from favorable prior accident year reserve development of $4 million, compared with unfavorable development of 2.7 points or $5 million for third-quarter 2024.
• 3.5 percentage-point nine-month 2025 benefit from favorable prior accident year reserve development, compared with unfavorable development of 1.0 points for the first nine months of 2024.

• $3 million increase in third-quarter 2025 earned premiums, including a 5% increase for term life insurance, our largest life insurance product line.
• $12 million increase in nine-month 2025 life insurance subsidiary net income, primarily due to increased investment income, increased earned premiums and decreased investment losses from fixed-maturity securities.
• $118 million or 9% nine-month 2025 increase, to $1.425 billion, in GAAP shareholders' equity for the life insurance subsidiary, primarily from net income and a decrease in unrealized investment losses on fixed-maturity securities.

• $37 million or 14% rise in third-quarter 2025 pretax investment income, including a 21% increase in interest income from fixed-maturity securities and a 1% increase in equity portfolio dividends.
• $1.094 billion in third-quarter 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.