10-K – 2026-02-23 – cinf-20251231.htm

not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss.

Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid.

An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. At December 31, 2025, 2024 and 2023, the allowances, including changes in the amount for each period, were immaterial.

Income Taxes
We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in taxable income and financial statement income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves, international earnings and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income.

See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense.

Earnings per Share
Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method.

Land, Building and Equipment
We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting fees and internal payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three to 39.5 years) using straight-line and accelerated methods. Depreciation expense was $ 36  million for 2025, $ 34  million for 2024 and $ 30 million for 2023. We review our accumulated depreciation for our building, equipment and software assets and write off fully depreciated assets for obsolescence and nonuse. We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2025, 2024 or 2023.
 
Finance Receivables
Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. At December 31, 2025, 2024 and 2023, the allowance, including changes in the amount for each period, was immaterial.

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Employee Benefit Pension Plan
We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan.

Share-Based Compensation
We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10 -year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three -year vesting term. We also grant performance-based restricted stock units that vest if certain market conditions are attained. In 2025, the CFC compensation committee approved share-based awards including incentive stock options, nonqualified stock options, service-based restricted and performance-based restricted stock units. See Note 17, Share-Based Associate Compensation Plans, for further details.

Goodwill and Intangible Assets
We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life consist of broker relationships and are amortized on a straight-line basis over the estimated useful life of 15 years. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles at September 30, which did not result in the recognition of an impairment los s. Within Cincinnati Global, and included in Other, the company held goodwill of $ 30  million and intangible assets with an indefinite life of $ 31  million at December 31, 2025 and 2024, respectively.

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Adopted Accounting Updates

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. We retrospectively adopted this ASU effective December 31, 2025. The adoption did not have a material impact on our company's consolidated financial position, results of operations, cash flows or disclosures.

Pending Accounting Updates

ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires increased quantitative disclosure of certain categories of expenses contained within relevant expense captions. A relevant expense caption is an expense caption presented on the face of the income statement that contains employee compensation, depreciation, intangible asset amortization and other captions. The ASU also requires a qualitative description of the remaining amount of relevant expense captions as well as total selling expenses on an interim basis and how selling expenses are defined on an annual basis. The effective date of ASU 2024-03 is for annual periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027. The ASU should be applied prospectively with retrospective application and early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements.

ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software ( Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . ASU 2025-06 modernizes the accounting for internal-use software costs by eliminating references to prescriptive and sequential software development stages and updating the cost capitalization criteria. The effective date of ASU 2025-06 is for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows.

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NOTE 2 – Investments
The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:
(Dollars in millions) Amortized
cost Gross unrealized  Fair
value
At December 31, 2025 gains losses
Fixed-maturity:        
Corporate $ 9,750   $ 164   $ 203   $ 9,711  
States, municipalities and political subdivisions 5,065   35   181   4,919  
Government-sponsored enterprises 2,360   3   4   2,359  
Asset-backed 793   12   8   797  
United States government 312   2   1   313  
Foreign government 24   —   —   24  
Total fixed-maturity 18,304   216   397   18,123  
Short-term 148   —   —   148  
Total fixed-maturity and short-term investments $ 18,452   $ 216   $ 397   $ 18,271  

At December 31, 2024        
Fixed-maturity:        
Corporate $ 8,652   $ 61   $ 333   $ 8,380  
States, municipalities and political subdivisions 4,976   15   270   4,721  
Government-sponsored enterprises 2,282   1   9   2,274  
Asset-backed 567   1   17   551  
United States government 228   —   2   226  
Foreign government 30   —   —   30  
Total fixed-maturity 16,735   78   631   16,182  
Short-term 298   —   —   298  
Total fixed-maturity and short-term investments $ 17,033   $ 78   $ 631   $ 16,480  

 
The decrease in net unrealized investment losses in our fixed-maturity portfolio at December 31, 2025, is primarily due to a decrease in U.S. Treasury yields and a slight tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at December 31, 2025 and 2024, respectively.

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The table below provides fair values and unrealized losses by investment category and by the duration of the continuous unrealized loss positions:
(Dollars in millions) Less than 12 months 12 months or more Total
At December 31, 2025 Fair
value Unrealized
losses Fair
value Unrealized
losses Fair
value Unrealized
losses
Fixed-maturity:
Corporate $ 849   $ 15   $ 2,926   $ 188   $ 3,775   $ 203  
States, municipalities and political subdivisions 204   2   2,346   179   2,550   181  
Government-sponsored enterprises 983   3   195   1   1,178   4  
Asset-backed 101   2   184   6   285   8  
United States government 69   —   20   1   89   1  

Total fixed-maturity $ 2,206   $ 22   $ 5,671   $ 375   $ 7,877   $ 397  

At December 31, 2024            
Fixed-maturity:
Corporate $ 2,815   $ 78   $ 3,634   $ 255   $ 6,449   $ 333  
States, municipalities and political subdivisions 1,513   25   1,898   245   3,411   270  
Government-sponsored enterprises 1,876   8   92   1   1,968   9  
Asset-backed 331   10   96   7   427   17  
United States government 48   —   100   2   148   2  
Foreign government —   —   3   —   3   —  
Total fixed-maturity 6,583   121   5,823   510   12,406   631  
Short-term 100   —   —   —   100   —  
Total fixed-maturity and short-term investments $ 6,683   $ 121   $ 5,823   $ 510   $ 12,506   $ 631  

 
Contractual maturity dates for our fixed-maturity and short-term investments were:
(Dollars in millions) Amortized cost Fair
value % of fair value
At December 31, 2025
Maturity dates:      
Due in one year or less $ 993   $ 990   5.4   %
Due after one year through five years 3,565   3,582   19.6  
Due after five years through ten years 4,403   4,434   24.3  
Due after ten years 9,491   9,265   50.7  
Total $ 18,452   $ 18,271   100.0   %

 
Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.
 
The company had cash and fixed-maturity securities with a fair value of $ 115  million and $ 107 million, on deposit with various states in compliance with regulatory requirements at December 31, 2025 and 2024, respectively. In addition, cash and fixed-maturity securities deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $ 87 million and $ 91 million at December 31, 2025 and 2024, respectively. The company had common equities with a fair value of $ 229 million and $ 216  million, at December 31, 2025 and 2024, respectively, held in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations.

In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity, real estate investments and asset-backed securities issued by third-parties. The company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments.

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The following table provides investment income and investment gains and losses:
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Investment income:      
Interest $ 875   $ 733   $ 600  
Dividends 280   283   282  
Other 27   25   25  
Total 1,182   1,041   907  
Less investment expenses 17   16   13  
Total $ 1,165   $ 1,025   $ 894  

Investment gains and losses, net:      
Equity securities:
Investment gains and losses on securities sold, net $ ( 13 ) $ 181   $ ( 17 )
Unrealized gains and losses on securities still held, net 1,448   1,275   1,168  

Subtotal 1,435   1,456   1,151  
Fixed-maturity securities:      
Gross realized gains 7   5   4  
Gross realized losses ( 2 ) ( 95 ) ( 5 )
Change in allowance for credit losses, net ( 30 ) ( 26 ) ( 17 )
Write-down of impaired securities with intent to sell —   —   ( 4 )
Subtotal ( 25 ) ( 116 ) ( 22 )

Other 32   51   ( 2 )
Total $ 1,442   $ 1,391   $ 1,127  

The fair value of our equity portfolio was $ 12.694  billion and $ 11.185  billion at December 31, 2025 and 2024, respectively. Apple, Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $ 958  million and $ 891 million, which was 7.7 % and 8.2 % of our publicly traded common equities portfolio and 3.1 % and 3.2 % of the total investment portfolio at December 31, 2025 and 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $ 54 million, $ 33  million and $ 18  million at December 31, 2025, 2024 and 2023, respectively. Reductions in the allowance for credit losses for securities sold were $ 9  million and $ 11  million for the years ended December 31, 2025 and 2024, respectively, and none for the year ended December 31, 2023.

There were 2,597 , 3,723 and 2,840 fixed-maturity and short-term investments in a total unrealized loss position of $ 397 million, $ 631  million and $ 687 million at December 31, 2025, 2024 and 2023, respectively. Of those totals, 13 , 19 and 20 fixed-maturity securities had fair values below 70% of amortized cost at December 31, 2025, 2024 and 2023, respectively.
 
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NOTE 3 – Fair Value Measurements

Fair Value Hierarchy
The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2024, and ultimately management determines fair value. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques:

• Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
• Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.
The technique used for the Level 2 fixed-maturity securities is the application of market-based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to asset-backed securities, key inputs also include prepayment and default projections based on performance of the underlying collateral and current market data. Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor.
The Level 2 nonredeemable preferred equities technique used is the application of market-based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor.
• Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:
◦ Quotes from brokers or other external sources that are not considered binding;
◦ Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or
◦ Quotes from brokers or other external sources where the inputs are not deemed observable.
 
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The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2025 and 2024. We do not have any liabilities carried at fair value.
(Dollars in millions) Level 1
Level 3
At December 31, 2025 Level 2 Total
Fixed maturities, available for sale:        
Corporate $ —   $ 9,711   $ —   $ 9,711  
States, municipalities and political subdivisions —   4,919   —   4,919  
Government-sponsored enterprises —   2,359   —   2,359  
Asset-backed —   797   —   797  
United States government 313   —   —   313  
Foreign government —   24   —   24  

Subtotal 313   17,810   —   18,123  
Common equities 12,373   —   —   12,373  
Nonredeemable preferred equities —   321   —   321  
Separate accounts taxable fixed maturities 35   872   —   907  
Short-term investments 148   —   —   148  
Top Hat savings plan mutual funds and common
  equity (included in Other assets) 102   —   —   102  
Total $ 12,971   $ 19,003   $ —   $ 31,974  

At December 31, 2024        
Fixed maturities, available for sale:        
Corporate $ —   $ 8,380   $ —   $ 8,380  
States, municipalities and political subdivisions —   4,721   —   4,721  
Government-sponsored enterprises —   2,274   —   2,274  
Asset-backed —   551   —   551  
United States government 226   —   —   226  
Foreign government —   30   —   30  

Subtotal 226   15,956   —   16,182  
Common equities 10,836   —   —   10,836  
Nonredeemable preferred equities —   349   —   349  
Separate accounts taxable fixed maturities —   876   —   876  
Short-term investments 298   —   —   298  
Top Hat savings plan mutual funds and common
  equity (included in Other assets) 87   —   —   87  
Total $ 11,447   $ 17,181   $ —   $ 28,628  

We also held Level 1 cash and cash equivalents of $ 1.431 billion a nd $ 983 million at December 31, 2025 and 2024 , respectively. Level 3 assets reported at fair value in our consolidated financial statements are not material, and therefore no further disclosures are provided.

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Fair Value Disclosure for Assets and Liabilities Not Carried at Fair Value
The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our consolidated financial statements.
 
The following table shows fair values of our note payable and long-term debt:
(Dollars in millions) Level 1 Level 2 Level 3 Total
At December 31, 2025
Note payable $ —   $ 25   $ —   $ 25  
6.900 % senior debentures, due 2028
—   29   —   29  
6.920 % senior debentures, due 2028
—   416   —   416  
6.125 % senior notes, due 2034
—   404   —   404  
Total $ —   $ 874   $ —   $ 874  

At December 31, 2024
Note payable $ —   $ 25   $ —   $ 25  
6.900 % senior debentures, due 2028
—   29   —   29  
6.920 % senior debentures, due 2028
—   416   —   416  
6.125 % senior notes, due 2034
—   390   —   390  
Total $ —   $ 860   $ —   $ 860  

 
Fair value of the note payable was determined based upon the outstanding balance at December 31, 2025 and 2024, because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively traded. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt was $ 793 million at December 31, 2025 and 2024. None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs.

The following table shows the fair value of our life policy loans, included in other invested assets:
(Dollars in millions) Level 1 Level 2 Level 3 Total
At December 31, 2025
Life policy loans $ —   $ —   $ 43   $ 43  

At December 31, 2024
Life policy loans $ —   $ —   $ 41   $ 41  

 
Outstanding principal and interest for these life policy loans totaled $ 38  million and $ 36 million at December 31, 2025 and 2024, respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience.
 
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The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves:
(Dollars in millions) Level 1
Level 2 Level 3 Total
At December 31, 2025
Deferred annuities $ —   $ —   $ 530   $ 530  
Structured settlements —   123   —   123  
Total $ —   $ 123   $ 530   $ 653  

At December 31, 2024
Deferred annuities $ —   $ —   $ 561   $ 561  
Structured settlements —   127   —   127  
Total $ —   $ 127   $ 561   $ 688  

 
Recorded reserves for the deferred annuities were $ 554 million and $ 595  million at December 31, 2025 and 2024, respectively. Recorded reserves for the structured settlements were $ 111 million and $ 116 million at December 31, 2025 and 2024, respectively.
 
Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2025 and 2024, to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled.
 
Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2025 and 2024, to account for nonperformance risk. The structured settlements were classified as Level 2, as an active market does not exist, but fair value is based on observable inputs.

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NOTE 4 – Property Casualty Loss and Loss Expenses
We use actuarial methods, models, assumptions and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including IBNR claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and finance management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate.

Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects.

Our claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims.

For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves.

Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves.

Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings.

This table summarizes activity for our consolidated property casualty loss and loss expense reserves:

(Dollars in millions) Years ended December 31,
  2025 2024 2023
Gross loss and loss expense reserves, January 1 $ 9,937   $ 8,975   $ 8,336  
Less reinsurance recoverable 269   362   405  
Net loss and loss expense reserves, January 1 9,668   8,613   7,931  

Net incurred loss and loss expenses related to:      
Current accident year 6,531   5,672   5,173  
Prior accident years ( 196 ) ( 236 ) ( 215 )
Total incurred 6,335   5,436   4,958  
Net paid loss and loss expenses related to:      
Current accident year 2,389   1,951   1,875  
Prior accident years 2,602   2,430   2,401  
Total paid 4,991   4,381   4,276  

Net loss and loss expense reserves, December 31 11,012   9,668   8,613  
Plus reinsurance recoverable 438   269   362  
Gross loss and loss expense reserves, December 31 $ 11,450   $ 9,937   $ 8,975  

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The reserve for loss and loss expense in the consolidated balance sheets also included $ 57 million, $ 66 million and $ 75 million, at December 31, 2025, 2024 and 2023, respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided.

We experienced $ 196 million of favorable development on prior accident years including $ 130  million of favorable development in commercial lines, $ 4 million of favorable development in personal lines and $ 19  million of favorable development in excess and surplus lines during 2025. Within commercial lines, we recognized favorable development of $ 126 million for the commercial property line and $ 65 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $ 41  million for the commercial auto line and $ 21  million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 49 million for the homeowner line of business and unfavorable reserve development of $ 36  million in the other personal line of business.

We experienced $ 236 million of favorable development on prior accident years including $ 138  million of favorable development in commercial lines, $ 26 million of favorable development in personal lines and $ 8  million of unfavorable development in excess and surplus lines during 2024. Within commercial lines, we recognized favorable development of $ 83 million for the workers' compensation line and $ 74 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $ 26 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 54 million for the homeowner line of business and unfavorable reserve development of $ 20 million in personal auto.

We experienced $ 215 million of favorable development on prior accident years including $ 123  million of favorable development in commercial lines, $ 64 million of favorable development in personal lines and $ 11  million of favorable development in excess and surplus lines during 2023. Within commercial lines, we recognized favorable development of $ 66 million for the workers' compensation line and $ 55 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $ 15 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 53 million for the homeowner line of business and $ 15 million in personal auto.

Included in our lines of business are asbestos and environmental claims. We carried $ 136 million and $ 119  million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2025 and 2024, respectively. The asbestos and environmental claims amounts for each respective year constituted less than 2.0 % of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $ 500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have no exposure to asbestos and environmental claims related to Cincinnati Global. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date.

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The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2025.
(Dollars in millions) Cumulative incurred losses
and ALAE
as reported within the triangles,
net of reinsurance Cumulative paid losses and ALAE as reported within the triangles,
net of reinsurance Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves

Commercial casualty $ 7,653   $ 4,165   $ 137   $ 3,625   $ 51   $ 3,676  
Workers' compensation 1,736   1,078   329   987   51   1,038  
Commercial auto 2,756   1,789   40   1,007   3   1,010  
Commercial property 3,445   3,041   26   430   19   449  
Personal auto 2,546   2,055   10   501   21   522  
Homeowner 3,679   3,188   7   498   124   622  
Excess and surplus 2,174   994   9   1,189   31   1,220  
Other lines 2,266  
Total liabilities for loss and ALAE reserves 10,803  
Unallocated loss adjustment expense reserves 647  
Gross loss and loss expense reserves $ 11,450  

For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance.

In the following tables, commercial casualty, workers' compensation and excess and surplus lines each disclose 10 accident years of loss and ALAE reserves and the cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and the cumulative number of reported claims consistent with the number of years for which claims incurred typically remain outstanding.
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Commercial Casualty
The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of
reported
claims

Accident Unaudited
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2016 $ 563   $ 574   $ 557   $ 555   $ 554   $ 538   $ 531   $ 525   $ 538   $ 533   $ 16   22  
2017 610   597   577   571   555   554   553   575   578   21   22  
2018 650   641   622   588   612   618   638   632   35   23  
2019 672   643   607   669   682   718   736   66   21  
2020 674   629   606   593   619   647   64   15  
2021 714   697   697   694   691   132   15  
2022 924   902   876   894   199   15  
2023 950   843   841   301   12  
2024 1,004   969   587   10  
2025 1,132   916   7  
Total $ 7,653  

Cumulative paid losses and ALAE, net of reinsurance
2016 $ 46   $ 126   $ 228   $ 331   $ 395   $ 434   $ 466   $ 485   $ 498   $ 506  
2017 48   122   234   320   392   437   486   512   536  
2018 44   148   253   345   441   505   542   567  
2019 39   134   259   394   503   576   639  
2020 33   102   242   345   437   521  
2021 31   123   251   370   466  
2022 37   141   311   472  
2023 46   146   303  
2024 42   123  
2025 32  
Total 4,165  
All outstanding liabilities before 2016, net of reinsurance 137  
Liabilities for loss and ALAE, net of reinsurance $ 3,625  

The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5 6 7 8 9 10
Average annual percentage payout 5.6 % 12.6 % 18.7 % 16.9 % 13.8 % 9.6 % 7.2 % 4.1 % 3.2 % 1.5 %

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Workers’ Compensation
The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of
reported
claims

Accident Unaudited
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2016 $ 230   $ 218   $ 206   $ 188   $ 183   $ 183   $ 183   $ 181   $ 182   $ 182   $ 24   16  
2017 218   208   190   183   172   167   160   159   159   22   15  
2018 222   207   199   186   179   175   174   172   27   15  
2019 224   215   202   188   178   174   172   32   14  
2020 204   190   172   153   148   138   23   11  
2021 202   190   183   174   169   38   11  
2022 209   205   182   168   42   11  
2023 221   188   171   52   10  
2024 197   193   74   8  
2025 212   102   7  
Total $ 1,736  

Cumulative paid losses and ALAE, net of reinsurance
2016 $ 46   $ 97   $ 119   $ 131   $ 141   $ 146   $ 148   $ 150   $ 152   $ 154  
2017 45   88   106   114   119   122   126   127   129  
2018 48   95   115   127   133   135   138   138  
2019 49   94   115   122   129   132   135  
2020 37   68   82   96   101   104  
2021 37   82   100   113   120  
2022 37   76   94   103  
2023 36   71   89  
2024 36   71  
2025 35  
Total 1,078  
All outstanding liabilities before 2016, net of reinsurance 329  
Liabilities for loss and ALAE, net of reinsurance $ 987  

The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5 6 7 8 9 10
Average annual percentage payout 23.6 % 24.6 % 11.1 % 6.5 % 4.0 % 2.0 % 1.5 % 0.8 % 1.1 % 1.0 %

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Commercial Auto
The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of reported claims

Accident Unaudited
Year 2021 2022 2023 2024 2025
2021 $ 470   $ 477   $ 465   $ 463   $ 470   $ 18   39  
2022 558   569   560   563   34   41  
2023 550   544   560   58   38  
2024 565   561   149   34  
2025 602   283   30  
Total $ 2,756  

Cumulative paid losses and ALAE, net of reinsurance
2021 $ 179   $ 278   $ 346   $ 398   $ 429  
2022 217   332   410   474  
2023 216   322   404  
2024 196   291  
2025 191  
Total 1,789  
All outstanding liabilities before 2021, net of reinsurance 40  
Liabilities for loss and ALAE, net of reinsurance $ 1,007  

The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5
Average annual percentage payout 36.5 % 19.2 % 14.3 % 11.2 % 6.8 %

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Commercial Property
The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of reported claims

Accident Unaudited
Year 2021 2022 2023 2024 2025
2021 $ 607   $ 586   $ 576   $ 575   $ 573   $ 3   14  
2022 813   779   752   744   6   16  
2023 833   786   768   9   14  
2024 763   660   19   12  
2025 700   173   9  
Total $ 3,445  

Cumulative paid losses and ALAE, net of reinsurance
2021 $ 326   $ 527   $ 558   $ 564   $ 569  
2022 393   691   727   736  
2023 506   719   745  
2024 429   595  
2025 396  
Total 3,041  
All outstanding liabilities before 2021, net of reinsurance 26  
Liabilities for loss and ALAE, net of reinsurance $ 430  

The following table shows the average annual percentage payout of incurred losses for the commercial property line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5
Average annual percentage payout 59.5 % 32.0 % 4.6 % 1.1 % 0.7 %

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Personal Auto
The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of reported claims

Accident Unaudited
Year 2021 2022 2023 2024 2025
2021 $ 350   $ 343   $ 342   $ 344   $ 344   $ 2   80  
2022 427   418   429   424   4   86  
2023 466   474   478   10   93  
2024 592   599   40   107  
2025 701   149   112  
Total $ 2,546  

Cumulative paid losses and ALAE, net of reinsurance
2021 $ 219   $ 278   $ 304   $ 325   $ 336  
2022 277   349   382   406  
2023 304   389   425  
2024 372   473  
2025 415  
Total 2,055  
All outstanding liabilities before 2021, net of reinsurance 10  
Liabilities for loss and ALAE, net of reinsurance $ 501  

The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5
Average annual percentage payout 62.7 % 17.3 % 7.7 % 5.8 % 3.0 %

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Homeowner
The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of reported claims

Accident Unaudited
Year 2021 2022 2023 2024 2025
2021 $ 495   $ 449   $ 440   $ 440   $ 440   $ 2   19  
2022 552   505   500   503   4   20  
2023 742   693   689   12   24  
2024 842   793   35   24  
2025 1,254   180   22  
Total $ 3,679  

Cumulative paid losses and ALAE, net of reinsurance
2021 $ 285   $ 405   $ 424   $ 431   $ 435  
2022 299   461   481   491  
2023 468   637   663  
2024 523   717  
2025 882  
Total 3,188  
All outstanding liabilities before 2021, net of reinsurance 7  
Liabilities for loss and ALAE, net of reinsurance $ 498  

The following table shows the average annual percentage payout of incurred losses for the homeowner line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5
Average annual percentage payout 65.7 % 27.1 % 4.1 % 1.7 % 0.9 %

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Excess and Surplus Lines
The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred
but not reported
liabilities plus
expected
development on
reported losses Cumulative number of reported claims

Accident Unaudited
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2016 $ 93   $ 87   $ 84   $ 82   $ 90   $ 91   $ 88   $ 89   $ 91   $ 90   $ 2   3  
2017 104   95   95   94   94   91   94   98   97   4   3  
2018 116   109   110   108   107   105   111   112   5   3  
2019 137   135   141   139   142   149   148   12   3  
2020 172   172   160   152   165   167   17   4  
2021 217   235   233   253   254   49   4  
2022 294   280   285   291   90   4  
2023 328   276   274   113   3  
2024 368   338   192   3  
2025 403   309   2  
Total $ 2,174  

Cumulative paid losses and ALAE, net of reinsurance
2016 $ 10   $ 21   $ 39   $ 51   $ 62   $ 75   $ 81   $ 83   $ 84   $ 88  
2017 11   23   41   57   68   77   88   90   92  
2018 11   26   50   62   75   88   95   102  
2019 13   34   55   79   102   116   128  
2020 16   37   56   86   118   130  
2021 17   45   82   132   167  
2022 21   46   85   135  
2023 15   43   83  
2024 29   54  
2025 15  
Total 994  
All outstanding liabilities before 2016, net of reinsurance 9  
Liabilities for loss and ALAE, net of reinsurance $ 1,189  

The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years 1 2 3 4 5 6 7 8 9 10
Average annual percentage payout 8.3 % 11.1 % 16.2 % 15.8 % 14.1 % 10.7 % 7.5 % 3.9 % 1.6 % 4.2 %

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NOTE 5 – Life Policy and Investment Contract Reserves
The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the consolidated balance sheets:
(Dollars in millions) At December 31,
  2025 2024
Life policy reserves:
Term $ 1,103   $ 1,051  
Whole life 426   405  
Other 100   98  
Subtotal 1,629   1,554  
Investment contract reserves:
Deferred annuities 554   595  
Universal life 589   586  
Structured settlements 111   116  
Other 109   109  
Subtotal 1,363   1,406  
Total life policy and investment contract reserves $ 2,992   $ 2,960  

 

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T he balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows:

(Dollars in millions) Years ended December 31,
2025 2024 2023
Term Whole life Term Whole life Term Whole life
Present value of expected net premiums:
Balance, beginning of period $ 1,638   $ 218   $ 1,700   $ 223   $ 1,643   $ 208  
Beginning balance at original discount rate 1,719   228   1,712   225   1,708   217  
Effect of changes in cash flow assumptions ( 3 ) —   ( 12 ) 1   ( 7 ) ( 7 )
Effect of actual variances from expected experience ( 24 ) ( 1 ) ( 20 ) ( 4 ) ( 20 ) 3  
Adjusted beginning of period balance 1,692   227   1,680   222   1,681   213  
Issuances 162   20   149   25   143   31  
Interest accrual 76   10   74   10   72   9  
Net premiums collected ( 187 ) ( 29 ) ( 184 ) ( 29 ) ( 184 ) ( 28 )
Ending balance at original discount rate 1,743   228   1,719   228   1,712   225  
Effect of changes in discount rate assumptions ( 34 ) ( 3 ) ( 81 ) ( 10 ) ( 12 ) ( 2 )
Balance, end of period 1,709   225   1,638   218   1,700   223  

Present value of expected future policy benefits:
Balance, beginning of period 2,668   623   2,751   657   2,584   614  
Beginning balance at original discount rate 2,812   646   2,765   628   2,692   607  
Effect of changes in cash flow assumptions ( 11 ) ( 1 ) ( 29 ) —   2   ( 10 )
Effect of actual variances from expected experience ( 36 ) ( 1 ) ( 32 ) ( 4 ) ( 24 ) 3  
Adjusted beginning of period balance 2,765   644   2,704   624   2,670   600  
Issuances 163   20   149   25   143   30  
Interest accrual 128   33   125   32   121   31  
Benefits paid ( 193 ) ( 35 ) ( 166 ) ( 35 ) ( 169 ) ( 33 )
Ending balance at original discount rate 2,863   662   2,812   646   2,765   628  
Effect of changes in discount rate assumptions ( 69 ) ( 12 ) ( 144 ) ( 23 ) ( 14 ) 29  
Balance, end of period 2,794   650   2,668   623   2,751   657  

Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums 1,085   425   1,030   405   1,051   434  
Impact of flooring at cohort level 18   1   21   —   15   —  
Net life policy reserves 1,103   426   1,051   405   1,066   434  
Less reinsurance recoverable at original discount rate ( 67 ) ( 25 ) ( 94 ) ( 25 ) ( 97 ) ( 23 )
Less effect of discount rate assumption changes on reinsurance recoverable ( 7 ) ( 3 ) ( 8 ) ( 3 ) ( 10 ) ( 5 )
Net life policy reserves, after reinsurance recoverable $ 1,029   $ 398   $ 949   $ 377   $ 959   $ 406  

Weighted-average duration of the net life policy reserves in years 11 15 11 15 11 16

The total impact of flooring at cohort level in the above table includes the effect of discount rate assumption changes of $ 2 million, $ 3 million and $ 2 million at December 31, 2025, 2024 and 2023, respectively.

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The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies:

(Dollars in millions) At December 31,
2025 2024
Undiscounted Discounted Undiscounted Discounted
Term
Expected future benefit payments $ 5,032   $ 2,794   $ 4,883   $ 2,668  
Expected future gross premiums 4,703   2,768   4,556   2,625  
Whole life
Expected future benefit payments $ 1,746   $ 650   $ 1,718   $ 623  
Expected future gross premiums 705   428   694   412  

The following table shows the amount of revenue and interest recognized in the consolidated statements of income related to our term and whole life policies:

(Dollars in millions) Years ended December 31,
2025 2024 2023
Gross premiums
Term $ 304   $ 297   $ 289  
Whole life 55   54   52  

Total $ 359   $ 351   $ 341  
Interest accretion
Term $ 52   $ 51   $ 49  
Whole life 23   22   22  

Total $ 75   $ 73   $ 71  

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table shows the weighted-average interest rate for our term and whole life products:

At December 31,
2025 2024
Term
Interest accretion rate 5.32   % 5.22   %
Current discount rate 4.91   5.17  
Whole life
Interest accretion rate 5.85   % 5.88   %
Current discount rate 5.63   5.75  

The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments.

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The following table shows the balances and changes in policyholders' account balances included in investment contract reserves:

(Dollars in millions) Years ended December 31,
2025 2024 2023
Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life
Balance, beginning of period $ 595   $ 456   $ 656   $ 457   $ 734   $ 457  
Premiums received 29   36   35   37   44   39  
Policy charges —   ( 40 ) —   ( 40 ) —   ( 39 )
Surrenders and withdrawals ( 75 ) ( 13 ) ( 105 ) ( 12 ) ( 130 ) ( 13 )
Benefit payments ( 16 ) ( 8 ) ( 13 ) ( 5 ) ( 14 ) ( 6 )
Interest credited 21   20   22   19   22   19  

Balance, end of period $ 554   $ 451   $ 595   $ 456   $ 656   $ 457  

Weighted average crediting rate 3.73   % 4.42   % 3.68   % 4.39   % 3.51   % 4.30   %
Net amount at risk $ —   $ 3,682   $ —   $ 3,833   $ —   $ 3,949  
Cash surrender value 547   424   589   427   651   426  

The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances.

The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts:

(Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total
At December 31, 2025
Deferred annuity
1.00-3.00% $ 129   $ 127   $ 15   $ 239   $ 510  
3.01-4.00% 44   —   —   —   44  

Total $ 173   $ 127   $ 15   $ 239   $ 554  
Universal life
1.00-3.00% $ —   $ 54   $ 56   $ 16   $ 126  
3.01-4.00% 51   —   5   —   56  
Greater than 4.00% 269   —   —   —   269  
Total $ 320   $ 54   $ 61   $ 16   $ 451  

At December 31, 2024
Deferred annuity
1.00-3.00% $ 4   $ 297   $ 13   $ 234   $ 548  
3.01-4.00% 47   —   —   —   47  

Total $ 51   $ 297   $ 13   $ 234   $ 595  
Universal life
1.00-3.00% $ —   $ 55   $ 64   $ 5   $ 124  
3.01-4.00% 50   —   5   —   55  
Greater than 4.00% 277   —   —   —   277  
Total $ 327   $ 55   $ 69   $ 5   $ 456  

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The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts:

(Dollars in millions) Years ended December 31,
2025 2024 2023
Balance, beginning of period $ 130   $ 128   $ 121  

Balance, beginning of period before shadow reserve adjustments 131   129   123  
Effect of changes in cash flow assumptions ( 1 ) ( 2 ) ( 6 )
Effect of actual variances from expected experience 3   3   —  
Adjusted beginning of period balance 133   130   117  
Interest accrual 5   4   4  
Excess death benefits ( 13 ) ( 13 ) ( 6 )
Attributed assessments 12   12   12  
Effect of changes in interest rate assumptions 1   ( 2 ) 2  
Balance, end of period before shadow reserve adjustments 138   131   129  
Shadow reserve adjustments —   ( 1 ) ( 1 )
Balance, end of period 138   130   128  
Less reinsurance recoverable, end of period 5   7   6  

Net other additional liability, after reinsurance recoverable $ 143   $ 137   $ 134  

Weighted-average duration of the other additional liability in years 26 29 32

The following table shows balances and changes in separate account balances during the period:

(Dollars in millions) Years ended December 31,
2025 2024 2023
Balance, beginning of period $ 952   $ 925   $ 892  
Interest credited before policy charges 46   42   42  

Benefit payments ( 11 ) ( 6 ) ( 10 )

Other ( 6 ) ( 9 ) 1  
Balance, end of period $ 981   $ 952   $ 925  

Cash surrender value $ 977   $ 948   $ 917  

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NOTE 6 – Deferred Policy Acquisition Costs
Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the consolidated statements of income in 2025, 2024 and 2023, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income.

The table below shows the deferred policy acquisition costs and asset reconciliation:
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Property casualty:
Deferred policy acquisition costs asset, January 1 $ 886   $ 749   $ 682  
Capitalized deferred policy acquisition costs 1,908   1,748   1,488  
Amortized deferred policy acquisition costs ( 1,820 ) ( 1,611 ) ( 1,421 )
Deferred policy acquisition costs asset, December 31 $ 974   $ 886   $ 749  

Life:
Deferred policy acquisition costs asset, January 1 $ 356   $ 344   $ 331  
Capitalized deferred policy acquisition costs 45   42   42  
Amortized deferred policy acquisition costs ( 31 ) ( 30 ) ( 29 )

Deferred policy acquisition costs asset, December 31 $ 370   $ 356   $ 344  

Consolidated:
Deferred policy acquisition costs asset, January 1 $ 1,242   $ 1,093   $ 1,013  
Capitalized deferred policy acquisition costs 1,953   1,790   1,530  
Amortized deferred policy acquisition costs ( 1,851 ) ( 1,641 ) ( 1,450 )

Deferred policy acquisition costs asset, December 31 $ 1,344   $ 1,242   $ 1,093  

The table below shows the life deferred policy acquisition costs asset by product:

(Dollars in millions)
Year ended December 31, 2025 Term Whole life Deferred annuity Universal life Total
Balance, beginning of period $ 245   $ 52   $ 8   $ 51   $ 356  
Capitalized deferred policy acquisition costs 37   6   1   1   45  
Amortized deferred policy acquisition costs ( 25 ) ( 3 ) ( 1 ) ( 2 ) ( 31 )
Balance, end of period $ 257   $ 55   $ 8   $ 50   $ 370  

Year ended December 31, 2024
Balance, beginning of period $ 236   $ 48   $ 8   $ 52   $ 344  
Capitalized deferred policy acquisition costs 32   7   1   2   42  
Amortized deferred policy acquisition costs ( 23 ) ( 3 ) ( 1 ) ( 3 ) ( 30 )
Balance, end of period $ 245   $ 52   $ 8   $ 51   $ 356  

Year ended December 31, 2023
Balance, beginning of period $ 228   $ 43   $ 7   $ 53   $ 331  
Capitalized deferred policy acquisition costs 30   8   2   2   42  
Amortized deferred policy acquisition costs ( 22 ) ( 3 ) ( 1 ) ( 3 ) ( 29 )
Balance, end of period $ 236   $ 48   $ 8   $ 52   $ 344  

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NOTE 7 – Note Payable
We had one unsecured revolving credit facility through multiple commercial banks that was due to expire on February 4, 2026. On October 10, 2025, we terminated our $ 300  million credit agreement and simultaneously entered into a new $ 400  million unsecured revolving credit agreement expiring on October 10, 2030, with two optional one-year extensions. The credit facility is fully subscribed among four lenders and includes a $ 400  million accordion feature, a $ 400  million sublimit for letters of credit, and a $ 75  million sublimit for swing line loans. Terms and conditions of the agreement include a debt-to-total capital maximum of 35 %. We had no compensating balance requirements on short-term debt for either 2025 or 2024. The line of credit had $ 25  million drawn at both December 31, 2025 and 2024. The interest rate charged on our borrowings on these credit agreements ranged from 4.88 % to 5.34 % during 2025 and ranged from 5.56 % to 6.34 % during 2024. In addition, we have letters of credit related to our Cincinnati Re operations with no amounts drawn at December 31, 2025 and 2024. On September 12, 2024, we terminated our $ 94  million unsecured letter of credit agreement, which provided a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's, and replaced the letter of credit agreement with common equities held in Lloyd's trust accounts.

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NOTE 8 – Long-Term Debt and Lease Obligations
This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers:
(Dollars in millions)   Book value Principal amount
 Interest rate  Year of
 issue   At December 31, At December 31,
  2025 2024 2025 2024
6.900 % 1998 Senior debentures, due 2028 $ 27   $ 27   $ 28   $ 28  
6.920 % 2005 Senior debentures, due 2028 391   391   391   391  
6.125 % 2004 Senior notes, due 2034 372   372   374   374  
    Total $ 790   $ 790   $ 793   $ 793  

 
The finance lease term for equipment and autos is generally three to six years while the operating lease term for real estate properties is typically five years . Lease obligations totaled $ 71 million and $ 60 million in 2025 and 2024, respectively. Below are the lease obligations we expect to pay through 2031 and thereafter, including $ 8  million of interest for finance and operating leases:
(Dollars in millions) Years ended December 31,
  2026 2027 2028 2029 2030 2031 and thereafter
Finance lease obligations $ 18   $ 15   $ 13   $ 10   $ 6   $ 3  
Operating lease obligations 3   3   2   2   2   2  
   Total lease obligations $ 21   $ 18   $ 15   $ 12   $ 8   $ 5  

The following table provides lease cost and other information:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Lease cost:
   Finance lease cost $ 18   $ 16   $ 14  
   Operating lease cost 3   3   3  
Total lease cost $ 21   $ 19   $ 17  

Other information finance leases:
   Finance cash outflows $ 18   $ 17   $ 16  
Weighted average discount rate 5.06 % 4.88 % 4.35 %
Weighted average remaining lease term in years 3.87 3.96 3.89

Other information operating leases:
   Operating cash outflows $ 4   $ 3   $ 3  
Weighted average discount rate 5.21 % 4.44 % 4.66 %
Weighted average remaining lease term in years 4.06 3.47 4.30

 
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NOTE 9 – Shareholders’ Equity and Dividend Restrictions
Declared cash dividends per share were $ 3.48 , $ 3.24 and $ 3.00 for the years ended December 31, 2025, 2024 and 2023, respectively.

Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $ 550  million, $ 290 million and $ 526 million in 2025, 2024 and 2023, respectively. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10 % of statutory capital and surplus or 100 % of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2026, the total that our lead insurance subsidiary may pay in dividends is approximately $ 975 million.

Dividend payments from Cincinnati Global to the parent company are subject to regulation by U.K. law. Cincinnati Global paid no dividends to the parent company in 2025, 2024 or 2023.
 
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Accumulated Other Comprehensive Income
The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life policy reserves, reinsurance recoverable and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI).

 (Dollars in millions) 2025 2024 2023
Before
tax Income
tax Net Before
tax Income
tax Net Before
tax Income
tax Net
Investments:
AOCI, January 1 $ ( 553 ) $ ( 119 ) $ ( 434 ) $ ( 570 ) $ ( 123 ) $ ( 447 ) $ ( 847 ) $ ( 182 ) $ ( 665 )

OCI before investment gains and losses, net, recognized in net income 347   74   273   ( 99 ) ( 20 ) ( 79 ) 255   55   200  
Investment gains and losses, net, recognized in net income 25   5   20   116   24   92   22   4   18  
OCI 372   79   293   17   4   13   277   59   218  

AOCI, December 31 $ ( 181 ) $ ( 40 ) $ ( 141 ) $ ( 553 ) $ ( 119 ) $ ( 434 ) $ ( 570 ) $ ( 123 ) $ ( 447 )

Pension obligations:
AOCI, January 1 $ 75   $ 17   $ 58   $ 30   $ 8   $ 22   $ 36   $ 9   $ 27  
OCI excluding amortization recognized in net income 13   3   10   44   9   35   2   1   1  
Amortization recognized in net income ( 3 ) ( 1 ) ( 2 ) 1   —   1   ( 8 ) ( 2 ) ( 6 )
OCI 10   2   8   45   9   36   ( 6 ) ( 1 ) ( 5 )
AOCI, December 31 $ 85   $ 19   $ 66   $ 75   $ 17   $ 58   $ 30   $ 8   $ 22  

Life policy reserves, reinsurance recoverable and other:
AOCI, January 1 $ 85   $ 18   $ 67   $ ( 13 ) $ ( 3 ) $ ( 10 ) $ 29   $ 5   $ 24  

OCI before investment gains and losses, net, recognized in net income ( 33 ) ( 7 ) ( 26 ) 98   21   77   ( 42 ) ( 8 ) ( 34 )
Investment gains and losses, net, recognized in net income —   —   —   —   —   —   —   —   —  
OCI ( 33 ) ( 7 ) ( 26 ) 98   21   77   ( 42 ) ( 8 ) ( 34 )
AOCI, December 31 $ 52   $ 11   $ 41   $ 85   $ 18   $ 67   $ ( 13 ) $ ( 3 ) $ ( 10 )

Summary of AOCI:
AOCI, January 1 $ ( 393 ) $ ( 84 ) $ ( 309 ) $ ( 553 ) $ ( 118 ) $ ( 435 ) $ ( 782 ) $ ( 168 ) $ ( 614 )

Investments OCI 372   79   293   17   4   13   277   59   218  
Pension obligations OCI 10   2   8   45   9   36   ( 6 ) ( 1 ) ( 5 )
Life policy reserves, reinsurance recoverable and other OCI ( 33 ) ( 7 ) ( 26 ) 98   21   77   ( 42 ) ( 8 ) ( 34 )
Total OCI 349   74   275   160   34   126   229   50   179  

AOCI, December 31 $ ( 44 ) $ ( 10 ) $ ( 34 ) $ ( 393 ) $ ( 84 ) $ ( 309 ) $ ( 553 ) $ ( 118 ) $ ( 435 )

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income.
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NOTE 10 – Reinsurance
Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaties and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions.
 
The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Direct written premiums $ 9,891   $ 8,994   $ 7,784  
Assumed written premiums 686   676   597  
Ceded written premiums ( 495 ) ( 427 ) ( 335 )
Net written premiums $ 10,082   $ 9,243   $ 8,046  

Direct earned premiums $ 9,474   $ 8,338   $ 7,407  
Assumed earned premiums 673   642   569  
Ceded earned premiums ( 494 ) ( 412 ) ( 331 )
Earned premiums $ 9,653   $ 8,568   $ 7,645  

Direct incurred loss and loss expenses $ 6,446   $ 5,106   $ 4,843  
Assumed incurred loss and loss expenses 472   355   280  
Ceded incurred loss and loss expenses ( 583 ) ( 25 ) ( 165 )
Incurred loss and loss expenses $ 6,335   $ 5,436   $ 4,958  

Our life insurance company purchases reinsurance for protection of a portion of risks that are written. Primary components of our life reinsurance program include individual mortality coverage and accidental death coverage in excess of certain deductibles.
 
The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Direct earned premiums $ 412   $ 404   $ 394  
Ceded earned premiums ( 82 ) ( 83 ) ( 81 )
Earned premiums $ 330   $ 321   $ 313  

Direct contract holders' benefits incurred $ 378   $ 358   $ 391  
Ceded contract holders' benefits incurred ( 73 ) ( 57 ) ( 75 )
Contract holders' benefits incurred $ 305   $ 301   $ 316  

 
The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued.
 
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NOTE 11 – Income Taxes
The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows:
(Dollars in millions) At December 31,
2025 2024
Deferred tax assets:    
Unearned premiums $ 210   $ 193  
Loss and loss expense reserves 168   141  
Net operating loss on international earnings 13   19  

Foreign tax credits 34   23  
Other 62   80  

Total gross deferred tax assets 487   456  
Deferred tax liabilities:    
Investment gains and other, net 1,783   1,434  
Deferred acquisition costs 229   212  
Life policy reserves 86   96  
Deferred international earnings 77   56  
Investments 56   55  
Other 89   79  
Total gross deferred tax liabilities 2,320   1,932  
Net deferred income tax liability $ 1,833   $ 1,476  

 
Deferred tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount recognized for tax purposes.

Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets on our U.S. domestic operations will be realized. As a result, we have no valuation allowance at December 31, 2025 and 2024, for our U.S. domestic operations.

For financial reporting purposes, income before income taxes includes the following components:
(Dollars in millions) For the years ended December 31,
2025 2024 2023
United States $ 2,890   $ 2,766   $ 2,195  
International 90   92   81  
Total income before income taxes $ 2,980   $ 2,858   $ 2,276  

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The provision for income taxes consists of:
(Dollars in millions) For the years ended December 31,
2025 2024 2023
Provision for income taxes:
Current – United States $ 296   $ 445   $ 209  

            International 8   4   1  
Total current 304   449   210  
Deferred – United States 271   101   216  

                     International 12   16   7  
Total deferred 283   117   223  
Total provision for income taxes $ 587   $ 566   $ 433  

The differences between the 21 % statutory federal income tax rate and our effective income tax rate were as follows:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Tax at statutory rate: $ 626   21.0   % $ 600   21.0   % $ 478   21.0   %
Increase (decrease) resulting from:          
Nontaxable or nondeductible items
Tax-exempt income from municipal bonds ( 23 ) ( 0.8 ) ( 21 ) ( 0.7 ) ( 21 ) ( 0.9 )
Dividend received exclusion ( 21 ) ( 0.7 ) ( 22 ) ( 0.8 ) ( 22 ) ( 1.0 )
Other nontaxable or nondeductible items 10   0.3   3   0.1   5   0.2  

Other ( 5 ) ( 0.1 ) 6   0.2   ( 7 ) ( 0.3 )
Provision for income taxes $ 587   19.7   % $ 566   19.8   % $ 433   19.0   %

 
The increase (decrease) resulting from Other in the table above includes the effect of state and local income taxes, the majority of which related to two states for the years ended December 31, 2025, 2024 and 2023.

The provision for federal income taxes is based upon the filing of a consolidated income tax return for the company and its domestic subsidiaries within the United States. We had no operating or capital loss carryforwards in the United States at December 31, 2025 and 2024. As more fully discussed below, Cincinnati Global, has operating loss carryforwards in the United Kingdom.

The One Big Beautiful Bill Act
The One Big Beautiful Bill Act (the “Tax Act”) was enacted on July 4, 2025, and makes permanent several provisions
from the 2017 Tax Cuts and Jobs Act. Applicable impacts of the Tax Act have been reflected in the tax provision
and do not have a material impact on our consolidated financial statements.

Unrecognized Tax Benefits
During the third quarter of 2024, we were notified by the IRS that the audit of tax years ended December 31, 2021 and 2020, had concluded. The statute of limitations closed in September 2025 for these two tax years. The statute of limitations is closed for tax years ended December 31, 2021, and earlier, and is open for tax years ended December 31, 2022, and later.

In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions and record these amounts in our provision for income taxes for both current and deferred taxes. The statute of limitations for state income tax purposes has closed for tax years ended December 31, 2021, and earlier.

Cincinnati Global operates in the United Kingdom and as such, is subject to tax in that jurisdiction. The statute of limitations for tax return review by His Majesty’s Revenue and Customs (HMRC) has closed for tax returns with a submission deadline ended December 31, 2023, and earlier. There are currently no tax returns under review by HMRC.

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Income taxes paid in our consolidated statements of cash flows are shown net of refunds received. We received a $ 1 million refund in 2025, no refund in 2024 and a $ 2 million refund in 2023.

Income taxes paid net of refunds received consists of:

(Dollars in millions) For the years ended December 31,
2025 2024 2023
Income taxes paid net of refunds received:

United States $ 211   $ 386   $ 135  
International 9   9   1  
Total income taxes paid net of refunds received $ 220   $ 395   $ 136  

Cincinnati Global
Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets of Cincinnati Global will be realized. As a result, we had no valuation allowance at December 31, 2025, 2024 or 2023.

The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Valuation allowance, January 1 $ —   $ —   $ 31  

Current year operations —   —   ( 31 )
Valuation allowance, December 31 $ —   $ —   $ —  

Cincinnati Global had no  operating loss carryforwards in the United States and $ 50  million in the United Kingdom at December 31, 2025, and none in the United States and $ 78  million in the United Kingdom at December 31, 2024. These Cincinnati Global losses can only be utilized within the Cincinnati Global group in both the United States and in the United Kingdom and cannot offset the income of our domestic operations in the United States.
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NOTE 12 – Net Income Per Common Share
Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share:
(In millions, except per share data) Years ended December 31,
2025 2024 2023
Numerator:      
Net income—basic and diluted $ 2,393   $ 2,292   $ 1,843  
Denominator:      
Basic weighted-average common shares outstanding 156.1   156.4   157.0  
Effect of share-based awards:      
Stock options 1.0   0.8   0.7  
Nonvested shares 0.6   0.6   0.4  
Diluted weighted-average shares 157.7   157.8   158.1  
Earnings per share:      
Basic $ 15.32   $ 14.65   $ 11.74  
Diluted 15.17   14.53   11.66  
Number of anti-dilutive share-based awards 0.4   1.1   1.3  

 
The sources of dilution of our common shares are certain equity-based awards as discussed in Note 17, Share-Based Associate Compensation Plans. The above table includes the number of anti-dilutive share-based awards at year-end 2025, 2024 and 2023.
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NOTE 13 – Employee Retirement Benefits
We sponsor a qualified defined benefit pension plan that we closed entry into for new associates as of June 30, 2008, and only participants 40 years of age or older as of August 31, 2008, could elect to continue to participate. During 2008, we changed the form of retirement benefit we offer some associates to a company match on contributions to a 401(k) plan as further explained below. For participants remaining in the pension plan, we continue to fund future benefit obligations. Benefits for the defined benefit pension plan are based on years of credited service and compensation level. Contributions are based on the prescribed method defined in the Pension Protection Act. Our net periodic benefit cost is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. The qualified plan has been amended to allow for distribution of vested balances to terminated participants.
 
We sponsor a defined contribution plan (401(k) plan) for eligible associates with matching company contributions totaling $ 32 million, $ 29 million and $ 26 million during the years 2025, 2024 and 2023, respectively. Associates who are not accruing benefits under the pension plan are eligible to receive the company match of up to 6 % of cash compensation. Participants vest in the company match for the 401(k) plan after three years of eligible service.
 
We maintain a supplemental executive retirement plan (SERP) with a benefit obligation of $ 15 million at
year-end 2025 and $ 13 million at year-end 2024, which is included in the projected benefit obligation. The company also makes available to a select group of associates the CFC Top Hat Savings Plan, a nonqualified deferred compensation plan, which had a fair value of $ 102 million and $ 87 million at December 31, 2025 and 2024, respectively. Company matching contributions to the CFC Top Hat Savings Plan totaled approximately $ 2  million, $ 1  million and $ 1  million for the years 2025, 2024 and 2023, respectively.
 
Defined Benefit Pension Plan Assumptions
We evaluate our pension plan assumptions annually and update them as necessary. This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans:
  Qualified Pension Plan SERP
  2025 2024 2025 2024
Discount rate 5.56   % 5.68   % 5.43   % 5.66   %
Rate of compensation increase 2.25-3.25 4.00   2.25-3.25 4.00  

 
To determine the discount rate for each plan, a theoretical settlement portfolio of high-quality rated corporate bonds was chosen to provide payments approximately matching the plan’s projected benefit payments. A single interest rate for each plan was determined resulting in a discounted value of the plan's benefit payments that equates to the market value of the selected bonds. The discount rate is reflective of current market interest rate conditions and our plan's liability characteristics. Based on this analysis, we decreased the rate from the prior year by 0.12  percentage points for the qualified pension plan and by 0.23 percentage points for the SERP. Compensation increase assumptions reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. The mortality assumption is updated annually to reflect the updated mortality scales. The Pri-2012 tables with Scale MP-2021 was used for the years 2025, 2024 and 2023.

This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans:
  Qualified Pension Plan SERP
  2025 2024 2023 2025 2024 2023
Discount rate 5.68   % 5.04   % 5.34   % 5.66   % 5.11   % 5.42   %
Expected return on plan assets 7.00   7.00   7.00   n/a n/a n/a
Rate of compensation increase 4.00   4.00   4.50   4.00   4.00   4.50  

 
The discount rate was increased by 0.64  percentage points for the qualified pension plan and 0.55  percentage points for the SERP due to market interest rate conditions at the beginning of 2025. The discount rate assumptions for our benefit obligation generally track with high-quality rated corporate bond yields chosen in our theoretical settlement portfolio, and yearly adjustments reflect any changes to those bond yields. We believe the expected
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return on plan assets is representative of the expected long-term rate of return on these assets, which is consistent with 2025 expectations of interest rates and based partially on the fact that the plan’s common stock holdings pay dividends. We review historical actual return on plan assets when determining our expected long-term rate of return. Total portfolio return for 2025 was 13.1 % and for 2024 was 18.7 %. Our compensation increase assumptions in 2025 reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases.
 
Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows:
(Dollars in millions) At December 31,
2025 2024
Change in projected benefit obligation:    
Benefit obligation, January 1 $ 258   $ 263  
Service cost 5   6  
Interest cost 14   13  
Actuarial loss (gain) 7   ( 9 )
Benefits paid ( 21 ) ( 15 )

Projected benefit obligation, December 31 $ 263   $ 258  

Change in plan assets:    
Fair value of plan assets, January 1 $ 358   $ 317  
Actual return on plan assets 43   56  

Benefits paid ( 21 ) ( 15 )
Fair value of plan assets, December 31 $ 380   $ 358  

Funded status, December 31 $ 117   $ 100  

Accumulated benefit obligation $ 252   $ 243  

 
Our funded status for 2025 compared to 2024 improved primarily due to a positive return on plan assets, offset by increases in the actuarial loss resulting from the difference between actual and expected experience and increases in discount rates.
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A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31:
(Dollars in millions) At December 31,
2025 2024
Pension amounts recognized in the consolidated balance sheets:

Other assets $ 117   $ 100  
Total $ 117   $ 100  

Pension amounts recognized in accumulated other comprehensive income:    
Net actuarial gain $ ( 86 ) $ ( 76 )
Prior service cost 1   1  
Total $ ( 85 ) $ ( 75 )

 
Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31:
(Dollars in millions) Years ended December 31,
2025 2024 2023
Net periodic benefit cost:
Service cost $ 5   $ 6   $ 6  
Non-service costs (benefit):
Interest cost 14   13   13  
Expected return on plan assets ( 23 ) ( 21 ) ( 21 )
Amortization of actuarial (gain) loss and prior service cost ( 3 ) 1   ( 2 )
Other —   —   ( 6 )
Net periodic benefit $ ( 7 ) $ ( 1 ) $ ( 10 )

Other changes in plan assets and benefit obligations recognized in other
   comprehensive income:
Current year actuarial gain $ ( 13 ) $ ( 44 ) $ ( 2 )
Amortization and recognition of actuarial gain (loss) 3   ( 1 ) 8  

Total recognized in other comprehensive (income) loss $ ( 10 ) $ ( 45 ) $ 6  
Total recognized in net periodic benefit and other comprehensive income $ ( 17 ) $ ( 46 ) $ ( 4 )

 
The 2025 change in the amount recognized in other comprehensive income is largely due to decreases in actuarial gain resulting from differences between actual and expected experience, increases in discount rates, and less favorable return on assets compared to 2024.

Service costs and non-service costs (benefit) are allocated in the same proportion primarily to underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the consolidated statements of income for 2025, 2024 and 2023.
 
Defined Benefit Pension Plan Assets
The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our internal investment department; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored, while also holding the appropriate level of cash and fixed-maturity securities to provide for obligations in the near term. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions.
 
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Including cash, during 2025 we held approximately 82 % of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 9 % in domestic corporate fixed-maturity investments, 7 % percent in cash, 1 % in United States government fixed-maturity investments, and 1 % in states, municipalities and taxable political subdivisions fixed-maturity investments. Our common equity portfolio consisted of 32 % in the information technology sector, 19 % in the financial sector, 19 % in the industrials sector, and 12 % in the healthcare sector, at year-end 2025. No additional sectors accounted for 10 % or more of our common equity portfolio balance at year-end 2025.

Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2025 and 2024. The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2025 and 2024. Excluded from the table below is cash on hand of $ 26 million and $ 36  million at December 31, 2025 and 2024, respectively.
(Dollars in millions) Level 1 Level 2 Level 3 Total
At December 31, 2025
Fixed maturities, available for sale:        
United States government $ 5   $ —   $ —   $ 5  
Corporate —   32   —   32  
States, municipalities and political subdivisions —   5   —   5  
Total fixed maturities, available for sale 5   37   —   42  
Common equities 312   —   —   312  
Total $ 317   $ 37   $ —   $ 354  

At December 31, 2024        
Fixed maturities, available for sale:        
United States government $ 13   $ —   $ —   $ 13  
Corporate —   7   —   7  
States, municipalities and political subdivisions —   5   —   5  
Total fixed maturities, available for sale 13   12   —   25  
Common equities 297   —   —   297  
Total $ 310   $ 12   $ —   $ 322  

 
Our pension plan assets included 100,610 shares of the company’s common stock, which had a fair value of $ 16  million and $ 14  million at December 31, 2025 and 2024, respectively. The defined benefit pension plan did not purchase or sell any of our common stock during 2025 or 2024. The company paid less than $ 1 million in both 2025 and 2024 in cash dividends on our common stock to the pension plan.
 
We estimate $ 11 million of benefit payments from the SERP during 2026. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service:
(Dollars in millions) Years ended December 31,
2026 2027 2028 2029 2030 2031 - 2035
Expected future benefit payments $ 40   $ 31   $ 32   $ 31   $ 29   $ 105  

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NOTE 14 – Statutory Accounting Information
Insurance companies’ statutory financial statements are presented on the basis of accounting practices prescribed or permitted by applicable state insurance departments of domicile. Insurance companies use statutory accounting practices (SAP) as recognized by various states. We have adopted the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual, version effective January 1, 2001, and updates through the current year as a component of prescribed or permitted practices by laws of the state of domicile. The primary differences between SAP and GAAP include the valuation of investment gains and losses, expensing of policy acquisition costs, actuarial assumptions for life insurance reserves and deferred income taxes based on differences in statutory and taxable income.
 
Statutory net income and capital and surplus are determined in accordance with SAP prescribed or permitted by insurance regulatory authorities for five legal entities, our lead insurance subsidiary and its four insurance subsidiaries. Statutory capital and surplus for our insurance subsidiary, The Cincinnati Insurance Company, includes capital and surplus of its four insurance subsidiaries. All capital and surplus amounts exceed statutory risk-based capital requirements. The statutory net income and statutory capital and surplus are presented below:
(Dollars in millions) Net income Capital and surplus
  Years ended December 31, At December 31,
2025 2024 2023 2025 2024
The Cincinnati Insurance Company $ 962   $ 1,245   $ 607   $ 9,749   $ 8,603  
The Cincinnati Casualty Company 18   28   13   588   555  
The Cincinnati Indemnity Company 7   6   3   142   138  
The Cincinnati Specialty Underwriters Insurance Company 129   86   76   810   699  
The Cincinnati Life Insurance Company 120   96   90   623   508  

 

NOTE 15 – Transactions With Affiliated Parties
We paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $ 11  million, $ 10 million and $ 9 million on premium volume of $ 60  million, $ 55  million and $ 51  million for 2025, 2024 and 2023, respectively.
 
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NOTE 16 – Commitments and Contingent Liabilities
The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending third-party claims brought against insureds and as an insurer defending against coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows.

The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of state or national classes. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates.

On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial.

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NOTE 17 – Share-Based Associate Compensation Plans
Four equity compensation plans currently permit us to grant various types of equity awards. We currently grant incentive stock options, nonqualified stock options, service-based restricted stock units and performance-based restricted stock units to associates, including some with market-based performance objectives under our shareholder-approved plans. We also have a Holiday Stock Plan that permits annual awards of one share of common stock to each full-time associate for each full calendar year of service up to a maximum of 10  shares. One of our equity compensation plans permits us to grant stock to our outside directors as a component of their annual compensation. We used treasury shares for share-based compensation award issues or exercises during 2025 and 2024.

Share-based compensation cost after tax was $ 37 million, $ 37 million and $ 32 million for the years ended
December 31, 2025, 2024 and 2023, respectively. The related income tax benefit recognized was $ 9  million,$ 9  million and $ 8  million for the years ended December 31, 2025, 2024 and 2023, respectively. Options exercised during the years ended December 31, 2025, 2024 and 2023, had intrinsic value of $ 26 million, $ 32  million and $ 14 million, respectively. Intrinsic value is the market price less the exercise price. Options vested during the years ended December 31, 2025 and 2024 had total intrinsic value of $ 18 million and $ 12 million, respectively. Options vested during the year ended December 31, 2023 had no intrinsic value because the weighted average exercise price was greater than the market price on the reporting date.
 
As of December 31, 2025, we had $ 44 million of unrecognized total compensation cost related to nonvested stock options and restricted stock unit awards. That cost will be recognized over a weighted-average period of 1.7 years.
 
Stock Options
Stock options are granted to associates at an exercise price equal to the fair value as determined by the average high and low sales price reported on the Nasdaq Global Select Market for the grant date and are exercisable over 10 -year periods. The stock options generally vest ratably over a three -year period. In determining the share-based compensation amounts, we estimate the fair value of each option granted on the date of grant using the Black Scholes pricing model. We make the following assumptions to develop the Black Scholes pricing model as follows:
• Weighted-average expected term is based on historical experience of similar awards with consideration for current exercise trends.
• Expected volatility is based on our stock price over a historical period that approximates the expected term.
• Dividend yield is determined by dividing the annualized per share dividend by the stock price on the date of grant.
• Risk-free rates are the implied yield currently available on zero-coupon U.S. Treasury issues with a remaining term approximating the expected term.

The following weighted average assumptions were used in determining fair value for option grants issued:
  2025 2024 2023
Weighted-average expected term   8 - 9 years
8 - 9 years
8 - 9 years

Expected volatility 29.26 - 30.51 %
28.94 - 29.98 %
28.25 - 29.61 %

Dividend yield 2.53 % 2.88 % 2.39 %
Risk-free rates 4.57 - 4.61 %
4.38 - 4.41 %
3.98 - 3.99 %

Weighted-average fair value of options granted during the period $ 43.92 $ 33.05 $ 38.22

 
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Below is a summary of option information for the year 2025:
(Dollars in millions, except exercise price. Shares in thousands) Shares Weighted-
average
exercise price Aggregate
intrinsic
value Weighted-average
remaining contractual
life
Outstanding option shares at January 1, 2025 3,504   $ 98.54    
Granted 382   137.56    
Exercised ( 370 ) 78.91    
Forfeited or expired ( 56 ) 96.29    
Outstanding option shares at December 31, 2025 3,460   104.98   $ 202   5.22 years

Options exercisable at end of period 2,684   $ 98.85   $ 173   4.28 years

 
Cash received from the exercise of options was $ 10 million, $ 10 million and $ 9 million for the years ended December 31, 2025, 2024 and 2023, respectively. We acquired 125,845 , 259,224 and 72,549 shares totaling
$ 19 million, $ 33 million and $ 8 million, respectively, from associates in consideration for option exercises during 2025, 2024 and 2023. The weighted-average remaining contractual life for options expected to vest as of December 31, 2025, was 8.46 years.

Under all active shareholder approved plans, a total of 19.3 million shares were authorized to be granted. At December 31, 2025, 10.5 million shares remained available for future issuance under the plans. During 2025, we granted 11,546 shares of common stock to our directors for 2024 board service fees.
 
Restricted Stock Units
Service-based restricted stock units granted to associates are valued at fair value of the shares on the date of grant less the present value of the dividends that holders of restricted stock units do not receive on the shares underlying the restricted stock units during the vesting period. Service-based restricted stock units generally cliff vest three years after the date of grant. We also grant restricted stock units which vest on a three year ratable vesting schedule. Service-based restricted stock units vested during the year had an intrinsic value of $ 23  million, $ 23 million and $ 22 million for the years ended December 31, 2025, 2024 and 2023, respectively.
 
We have performance-based awards that vest on the first day of March after a three -calendar-year performance period. These awards vest according to the level of three -year total shareholder return achieved compared with a peer group over a three -year performance period with payouts ranging from 0 % to 200 % for awards granted in 2025, 2024 and 2023. Three -year total shareholder return is calculated by using annualized total return of a stock to an investor due to capital gain appreciation plus reinvestment of all dividends.

For the three-year performance period ended December 31, 2025, our total shareholder return exceeded eight  of our  nine peers. We expect 200 % payout of these shares to occur in March 2026. During 2025, we issued 20,543 shares of performance-based restricted stock units at threshold-level performance hurdle for the three-year performance period ended December 31, 2024, as our total shareholder return exceeded three of nine peers in our 2022 peer group. During 2024, no shares of performance-based restricted stock units were issued for the three-year performance period ended December 31, 2023, as our total shareholder return exceeded two of eight peers in our 2021 peer group. Performance-based awards vested during the year ended December 31, 2025 had an intrinsic value of $ 3 million.

These performance-based awards are valued using a Monte-Carlo valuation on the date of grant, which uses a  risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each peer and the pairwise correlations of each peer being modeled. Compensation cost is recognized regardless of whether the market-based performance objective has been satisfied. We make assumptions to develop the Monte-Carlo model as follows:
• Correlation coefficients are based upon the stock price data used to calculate the historical volatilities. The correlation coefficients are used to model the way the price of each entity's stock tends to move in relation to each other.
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• Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period.
• Dividend yield is based on our current expected annual cash dividend and the valuation date stock price.
• Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance measurement period.
The following assumptions were used in determining fair value for performance-based grants issued:
  2025 2024 2023
Expected term 2.87 years 2.86 years 2.86 years
Expected volatility 21.38 - 41.62 %
21.33 - 42.97 %
25.98 - 47.73 %

Dividend yield 2.53 % 2.88 % 2.37 %
Risk-free rates 4.22 % 4.41 % 4.32 %

Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2025:
(Shares in thousands) Service-based
shares Weighted-
average grant
date fair value Performance-based
shares Weighted-
average grant
date fair value
Nonvested at January 1, 2025 498   $ 111.03   230   $ 133.60  
Granted 177   127.90   75   120.83  
Vested ( 159 ) 115.71   ( 21 ) 140.50  
Forfeited or canceled ( 21 ) 114.77   ( 48 ) 140.50  
Nonvested at December 31, 2025 495   115.41   236   127.58  

 
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NOTE 18 – Segment Information
We operate primarily in two industries, property casualty insurance and life insurance. Our CODM is the chief executive officer who regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our five reporting segments are:
• Commercial lines insurance
• Personal lines insurance
• Excess and surplus lines insurance
• Life insurance
• Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global.

Revenues come primarily from unaffiliated customers:
• All four insurance segments record revenues from insurance premiums earned.
• Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees.
• Our investments’ revenues consist of pretax net investment income and investment gains and losses.
• Other revenues are primarily finance income and earned premiums of Cincinnati Re and Cincinnati Global.

Income or loss before income taxes for each segment are reported based on the nature of that business area’s operations:
• Income or loss before income taxes for the insurance segments is defined as underwriting profit or loss.
◦ For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred.
◦ For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders.
• Income or loss before income taxes for the investments segment is net investment income plus investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment.
• Income or loss before income taxes for the Other category is primarily due to Cincinnati Re and Cincinnati Global premiums earned minus loss and loss expenses and underwriting expenses incurred. It also includes interest expense from debt of the parent company as well as operating expenses of our headquarters.

For all segments, the CODM uses income or loss before income taxes, and its components, to allocate resources (including associate, financial and capital resources) primarily during the annual budgeting and forecasting process and throughout the year as necessary. For the commercial lines, personal lines, excess and surplus and life segments, the CODM uses this metric to assess performance by analyzing the relationship between premium revenue and loss and loss expenses and underwriting expenses. As part of this analysis, the drivers and components of those revenue and expense items, such as pricing, exposure growth and inflation, are also considered as necessary. For the investments segment, the CODM considers overall investment performance as well as current conditions to invest available cash flow in both fixed-maturity and equity securities in a manner that balances current income needs with longer-term investment growth goals.

We do not separately report the identifiable assets of property casualty insurance for the commercial, personal and excess and surplus lines segments or for Cincinnati Re because we do not use that measure to analyze performance. We include all investment portfolio assets, regardless of ownership, in the investments segment.

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Segment information is summarized in the following table:
(Dollars in millions) Years ended December 31,
2025 2024 2023

Commercial lines insurance      

Commercial lines insurance premiums $ 4,863   $ 4,486   $ 4,264  
Fee revenues 5   4   4  
Total commercial lines insurance revenues 4,868   4,490   4,268  
Loss and loss expenses 2,970   2,795   2,787  
Underwriting expenses 1,459   1,384   1,313  
Total commercial lines income before income taxes 439   311   168  

Personal lines insurance      

Personal lines insurance premiums 3,199   2,623   2,044  
Fee revenues 5   5   4  
Total personal lines insurance revenues 3,204   2,628   2,048  
Loss and loss expenses 2,419   1,795   1,442  
Underwriting expenses 896   762   610  
Total personal lines income (loss) before income taxes ( 111 ) 71   ( 4 )

Excess and surplus lines insurance
Excess and surplus lines insurance premiums 698   615   542  
Fee revenues 4   3   3  
Total excess and surplus lines insurance revenues 702   618   545  
Loss and loss expenses 425   411   350  
Underwriting expenses 192   167   141  
Total excess and surplus lines income before income taxes 85   40   54  

Life insurance
Life insurance premiums 330   321   313  
Fee revenues 6   5   10  
Total life insurance revenues 336   326   323  
Contract holders' benefits incurred 305   301   316  
Investment interest credited to contract holders ( 127 ) ( 125 ) ( 121 )
Underwriting expenses incurred 93   93   87  
Total life insurance income before income taxes 65   57   41  

Investments      
Investment income, net of expenses 1,165   1,025   894  
Investment gains and losses, net 1,442   1,391   1,127  
Total investment revenue 2,607   2,416   2,021  
Investment interest credited to contract holders 127   125   121  
Total investments income before income taxes 2,480   2,291   1,900  

Reconciliation to consolidated income before income taxes
Total segment revenues 11,717   10,478   9,205  
Other earned premiums 893   844   795  
Other revenues 21   15   13  
Total revenues 12,631   11,337   10,013  
Total segment benefits and expenses 8,759   7,708   7,046  
Other loss and loss expenses 521   435   379  
Other underwriting expenses 284   251   233  
Other benefits and expenses 87   85   79  
Total benefits and expenses 9,651   8,479   7,737  
Total income before income taxes $ 2,980   $ 2,858   $ 2,276  

 

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Identifiable assets by segment are summarized in the following table:

(Dollars in millions) December 31, December 31,
2025 2024
Identifiable assets:
Property casualty insurance $ 6,916   $ 5,927  
Life insurance 1,695   1,658  
Investments 31,199   27,887  
Other 1,192   1,029  
Total $ 41,002   $ 36,501  

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I TEM 9. Changes in and Disagreements With Accountants on
     Accounting and Financial Disclosure
We had no disagreements with the independent registered public accounting firm on accounting and financial disclosure during the last two fiscal years.
 

I TEM 9 A . Controls and Procedures
Evaluation of Disclosure Controls and Procedures – The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)).
 
Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The company’s management, with the participation of the company’s chief executive officer and chief financial officer, has evaluated the effectiveness of the design and operation of the company’s disclosure controls and procedures as of December 31, 2025. Based upon that evaluation, the company’s chief executive officer and chief financial officer concluded that the design and operation of the company’s disclosure controls and procedures provided reasonable assurance that the disclosure controls and procedures are effective to ensure that:
• information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and
• such information is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting – During the three months ended December 31, 2025, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management’s Annual Report on Internal Control Over Financial Reporting and the Report of the Independent Registered Public Accounting Firm are set forth in Item 8.
 

I TEM 9 B . Other Information
Neither the company nor any of our officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement as defined by Item 408(a) and Item 408(d) of Regulation S-K during the last fiscal quarter.
 

I TEM 9 C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
This item is not applicable to the company.
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Part III
Our Proxy Statement will be filed with the SEC no later than April 30, 2026, in preparation for the 2026 Annual Meeting of Shareholders scheduled for May 2, 2026. As permitted in Paragraph G(3) of the General Instructions for Form 10-K, we are incorporating by reference, to that statement, portions of the information required by Part III as noted in Item 10 through Item 14 below.
 

I TEM 10.    Directors, Executive Officers and Corporate Governance
a) The following sections of our Proxy Statement for our 2026 Annual Meeting of Shareholders to be held May 2, 2026, are incorporated herein by reference: “Delinquent Section 16(a) Reports,” under the principal heading "Security Ownership of Principal Shareholders and Management", “Information about the Board of Directors,” and “Governance of Your Company.”
b) Information about the “Code of Ethics for Senior Financial Officers” appeared in the 2004 Proxy Statement as an appendix and is available at investors.cinfin.com . Our Code of Ethics applies to those who are responsible for preparing and disclosing our financial information. This includes our chief executive officer, chief financial officer and others performing similar functions.
c) Set forth below is information concerning the company’s executive officers who are not also directors of the company, as of February 23, 2026.

Name and Age as of   Primary Title(s) and Business Responsibilities   Executive
February 23, 2026 Since February 2021 Officer Since
Roger A. Brown, FSA, MAAA, CLU (54) Senior vice president and chief operating officer of The Cincinnati Life Insurance Company. Responsible for life insurance underwriting and operations. 2016
Dawn S. Chapel, CPCU, RPLU+, AIM, AIS, CRIS, APA, ARe, ASLI, AU (52) Senior vice president of The Cincinnati Insurance Company. Responsible for excess and surplus lines underwriting and operations of The Cincinnati Specialty Underwriters Insurance Company and CSU Producer Resources Inc. Responsible for brokerage operations of CSU Producer Resources and vice president until 2025. 2025
Teresa C. Cracas, Esq. (60)   Chief risk officer and executive vice president of The Cincinnati Insurance Company. Responsible for strategic planning and risk management, including executive oversight of modeling for financial analysis, property casualty reserving and pricing, strategic innovation, ceded reinsurance programs, corporate marketing and communications, human resources and policyholder experience . Senior vice president until 2022.
  2011
Angela O. Delaney (57) Senior vice president of The Cincinnati Insurance Company.
Responsible for property casualty insurance sales and marketing
operations, including leadership of field underwriters and independent agency relationships.
2020
Luyang Fu, Ph.D, FCAS, MAAA (52) Chief actuary and senior vice president of The Cincinnati Insurance Company. Responsible for all actuarial activities, including pricing, reserving, predictive modeling, forecasting and risk analytics for the property casualty insurance subsidiaries. Vice president of planning, analytics and risk management until 2022. 2026
Sean M. Givler, CIC, CRM (50) Executive vice president of The Cincinnati Insurance Company. Responsible for commercial insurance and life insurance, including executive oversight of Commercial Lines, Management Liability & Surety, Sales & Marketing and The Cincinnati Life Insurance Company. Senior vice president of commercial lines until 2025. 2017
Thomas C. Hogan, Esq. (55) Chief legal officer, executive vice president and corporate secretary of Cincinnati Financial Corporation. Responsible for corporate legal, governance and compliance activities, including executive oversight of regulatory and compliance, government relations, litigation and contract administration. Senior vice president and associate general counsel until 2024. 2024

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Name and Age as of   Primary Title(s) and Business Responsibilities   Executive
February 23, 2026 Since February 2021 Officer Since
John S. Kellington (64)   Chief information officer and executive vice president of The Cincinnati Insurance Company. Responsible for enterprise technology platforms and related activities. Senior vice president until 2022.   2010
R. Phillip Sandercox, CPCU, ARe (62) Senior vice president of The Cincinnati Insurance Company and head of Cincinnati Re. Responsible for all reinsurance assumed operations, including underwriting, pricing and claims. Head of Cincinnati Re since 2023. Vice president until 2024. 2026
Marc J. Schambow, CPCU, AIM, ASLI (60) Chief claims officer and senior vice president of The Cincinnati Insurance Company. Responsible for all headquarters and field claims operations, including special investigations and claims administration. 2022
Andrew M. Schnell, CPA, CPCU, AINS (45) Senior vice president and treasurer of The Cincinnati Insurance Company. Responsible for corporate accounting and SEC reporting activities. Vice president of corporate finance from 2021 to 2025. 2026
Scott A. Schuler (42) Senior vice president of The Cincinnati Insurance Company. Responsible for all personal lines operations, including underwriting, insurance regulatory filings and product and risk management. Vice president of personal lines underwriting until 2025. 2025
Michael J. Sewell, CPA (62)   Chief financial officer, principal accounting officer, executive vice president and treasurer of Cincinnati Financial Corporation. Chief operating officer of CFC Investment Company, a commercial lease and finance subsidiary. Responsible for accounting, finance and financial reporting, including executive oversight of purchasing, investor relations, shareholder services, administrative services and facilities maintenance and security. Senior vice president until 2022.   2011
Steven A. Soloria, CFA, CPCU (59) Chief investment officer and executive vice president of Cincinnati Financial Corporation. Responsible for all investment operations. Senior vice president of The Cincinnati Insurance Company until 2023. Vice president of investments until 2022. 2023
Chet H. Swisher (48) Senior vice president of The Cincinnati Insurance Company. Responsible for standard commercial lines underwriting and operations, including management liability insurance, machinery and equipment insurance, surety bonds, loss control services and premium audit. Vice president of commercial key accounts until 2025. 2025
William H. Van Den Heuvel (59) Executive vice president of The Cincinnati Insurance Company. Responsible for specialty insurance and personal lines insurance operations, including executive oversight of Personal Lines, Excess & Surplus Lines, Cincinnati Re – the company’s reinsurance assumed operations – and the activities of Cincinnati Global Underwriting Ltd., a London-based, global specialty underwriter for Lloyd's Syndicate 318. Senior vice president of personal lines until 2025. 2014

 
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I TEM 11.    Executive Compensation
The “Compensation of Named Executive Officers and Directors,” section of our Proxy Statement for our Annual Meeting of Shareholders to be held May 2, 2026, is incorporated herein by reference. It includes the “Report of the Compensation Committee,” “Compensation Committee Interlocks and Insider Participation” and the “Compensation Discussion and Analysis.”

 

I TEM 12.    Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
a) The “Security Ownership of Principal Shareholders and Management” section of our Proxy Statement for our Annual Meeting of Shareholders to be held May 2, 2026, is incorporated herein by reference.
b) Information on securities authorized for issuance under equity compensation plans appears in Part II, Item 5, Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Additional information on share-based compensation under our equity compensation plans is available in Item 8, Note 17 of the Consolidated Financial Statements.
 
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I TEM 13.    Certain Relationships and Related Transactions, and Director Independence
The following sections of our Proxy Statement for our Annual Meeting of Shareholders to be held May 2, 2026, are incorporated herein by reference: “Governance of Your Company – Insider Trading,” “Governance of Your Company – Director Independence” and “Governance of Your Company – Certain Relationships and Transactions.”

 

I TEM 14.    Principal Accounting Fees and Services
The “Audit-Related Matters,” section of our Proxy Statement for our Annual Meeting of Shareholders to be held May 2, 2026, is incorporated herein by reference. It includes the “Proposal 5 – Ratification of Selection of Independent Registered Public Accounting Firm,” “Report of the Audit Committee,” “Fees Billed by the Independent Registered Public Accounting Firm” and “Services Provided by the Independent Registered Public Accounting Firm.”

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Part IV
 

I TEM 15.    Exhibit and Financial Statement Schedules
a) Financial Statements – information contained in Part II, Item 8, of this report, Page 115 to Page 173
b) Exhibits – see Index of Exhibits, Page 192
Schedule I – Summary of Investments – Other Than Investments in Related Parties, Page 181
Schedule II – Condensed Financial Statements of Parent Company, Page 183
Schedule III – Supplementary Insurance Information, Page 186
Schedule IV – Reinsurance, Page 188
Schedule V – Valuation and Qualifying Accounts, Page 189
Schedule VI – Supplementary Information Concerning Property Casualty Insurance Operations, Page 190

I TEM 16. Form 10-K Summary
This item is not applicable to the company.
 
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Schedule I
Cincinnati Financial Corporation and Subsidiaries
Summary of Investments - Other Than Investments in Related Parties
(Dollars in millions) At December 31, 2025
Type of investment Cost or
amortized cost Fair
value Balance sheet
Fixed maturities:      
States, municipalities and political subdivisions:      
The Cincinnati Insurance Company $ 3,532   $ 3,473   $ 3,473  
The Cincinnati Casualty Company 215   207   207  
The Cincinnati Indemnity Company 42   41   41  
The Cincinnati Life Insurance Company 426   380   380  
The Cincinnati Specialty Underwriters Insurance Company 804   776   776  

Cincinnati Financial Corporation 46   42   42  
Total 5,065   4,919   4,919  

United States government:      
The Cincinnati Insurance Company 138   138   138  
The Cincinnati Casualty Company 13   13   13  
The Cincinnati Indemnity Company 7   7   7  
The Cincinnati Life Insurance Company 6   6   6  
The Cincinnati Specialty Underwriters Insurance Company 9   9   9  
Cincinnati Global Underwriting Ltd. 139   140   140  
Total 312   313   313  
Government-sponsored enterprises:      
The Cincinnati Insurance Company 1,343   1,342   1,342  
The Cincinnati Casualty Company 73   72   72  
The Cincinnati Indemnity Company 22   22   22  
The Cincinnati Life Insurance Company 532   533   533  
The Cincinnati Specialty Underwriters Insurance Company 358   358   358  
Cincinnati Global Underwriting Ltd. 7   7   7  
Cincinnati Financial Corporation 25   25   25  
Total 2,360   2,359   2,359  
Foreign government:      

Cincinnati Global Underwriting Ltd. 24   24   24  
Total 24   24   24  
All other corporate bonds:      
The Cincinnati Insurance Company 6,558   6,615   6,615  
The Cincinnati Casualty Company 107   101   101  
The Cincinnati Indemnity Company 34   33   33  
The Cincinnati Life Insurance Company 3,044   2,974   2,974  
The Cincinnati Specialty Underwriters Insurance Company 547   530   530  

Cincinnati Global Underwriting Ltd. 230   232   232  
Cincinnati Financial Corporation 23   23   23  
Total 10,543   10,508   10,508  
Total fixed maturities $ 18,304   $ 18,123   $ 18,123  

 
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Schedule I (continued)
Cincinnati Financial Corporation and Subsidiaries
Summary of Investments - Other Than Investments in Related Parties
(Dollars in millions) At December 31, 2025
Type of investment Cost or
amortized cost Fair
value Balance sheet
Equity securities:      
Common equities:      
The Cincinnati Insurance Company $ 2,075   $ 6,546   $ 6,546  
The Cincinnati Casualty Company 53   197   197  
The Cincinnati Indemnity Company 17   40   40  
The Cincinnati Specialty Underwriters Insurance Company 97   434   434  

CSU Producer Resources Inc. 16   33   33  
Cincinnati Financial Corporation 1,534   5,123   5,123  
Total 3,792   12,373   12,373  
Nonredeemable preferred equities:      
The Cincinnati Insurance Company 347   306   306  
The Cincinnati Life Insurance Company 13   13   13  
Cincinnati Financial Corporation 3   2   2  
Total 363   321   321  
Total equity securities $ 4,155   $ 12,694   $ 12,694  
Short-term investments:
Cincinnati Financial Corporation 148   148   148  
Total short-term investments $ 148   $ 148   $ 148  
Other invested assets:      
Policy loans:      
The Cincinnati Life Insurance Company $ 38   —   $ 38  
Deposits at Lloyd's:
Cincinnati Global Underwriting Ltd. 16   —   16  

Private equity:      
The Cincinnati Insurance Company (1) 597   —   597  
The Cincinnati Life Insurance Company (1) 13   —   13  
Cincinnati Financial Corporation (1) 31   —   31  
Real estate:
The Cincinnati Insurance Company (1) 67   —   67  
The Cincinnati Life Insurance Company (1) 53   —   53  
Cincinnati Financial Corporation (1) 3   —   3  
Total other invested assets $ 818   —   $ 818  
Total investments $ 23,425   —   $ 31,783  

Notes to Schedule I:
 (1) These other invested assets are accounted for under the equity method.
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Schedule II
Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions) At December 31,
  2025 2024
Assets    
Investments    
Fixed maturities, at fair value (amortized cost: 2025—$ 94 ; 2024—$ 179 )
$ 90   $ 173  
Equity securities, at fair value (cost: 2025—$ 1,537 ; 2024—$ 1,389 )
5,125   4,565  
Short-term investments, at fair value (amortized cost: 2025—$ 148 ; 2024—$ 298 )
148   298  
Other invested assets 34   40  
Total investments 5,397   5,076  
Cash and cash equivalents 205   167  
Equity in net assets of subsidiaries 11,526   10,015  
Investment income receivable 5   14  
Land, building and equipment, net, for company use (accumulated depreciation:
   2025—$ 186 ; 2024—$ 174 )
137   142  
Income tax receivable 5   9  
Other assets 236   201  
Due from subsidiaries 255   53  
Total assets $ 17,766   $ 15,677  
Liabilities    
Dividends declared but unpaid $ 135   $ 127  
Deferred federal income tax 789   697  
Long-term debt 790   790  
Other liabilities 141   128  
Total liabilities 1,855   1,742  
Shareholders' Equity    
Common stock 397   397  
Paid-in capital 1,561   1,502  
Retained earnings 16,719   14,869  
Accumulated other comprehensive income ( 34 ) ( 309 )
Treasury stock, at cost ( 2,732 ) ( 2,524 )
Total shareholders' equity 15,911   13,935  
Total liabilities and shareholders' equity $ 17,766   $ 15,677  

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.
 
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Schedule II (continued)
Cincinnati Financial Corporation (parent company only)
Condensed Statements of Income and Comprehensive Income
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Revenues      
Investment income, net of expenses $ 112   $ 122   $ 109  
Investment gains and losses, net 478   644   644  
Other revenue 15   15   15  
Total revenues 605   781   768  
Expenses      
Interest expense 52   52   52  
Other expenses 44   42   38  
Total expenses 96   94   90  
Income Before Income Taxes and Earnings of Subsidiaries 509   687   678  
Provision for Income Taxes 103   140   134  
Net Income Before Earnings of Subsidiaries 406   547   544  
Increase in equity of subsidiaries 1,987   1,745   1,299  
Net Income $ 2,393   $ 2,292   $ 1,843  
Other Comprehensive Income (Loss), Net of Taxes
Change in unrealized gain on securities 2   2   4  
Amortization of pension actuarial gains (losses) and prior service costs 8   36   ( 5 )
Other Comprehensive Income (Loss), Net of Taxes Before Other
 Comprehensive Income (Loss) of Subsidiaries 10   38   ( 1 )
Other comprehensive income of subsidiaries 265   88   180  
Other comprehensive income 275   126   179  
Comprehensive Income $ 2,668   $ 2,418   $ 2,022  

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

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Schedule II (continued)
Cincinnati Financial Corporation (parent company only)
Condensed Statements of Cash Flows
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Cash Flows From Operating Activities      
Net income $ 2,393   $ 2,292   $ 1,843  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization and other 17   4   10  
Investment gains and losses, net ( 471 ) ( 641 ) ( 644 )
Dividends from subsidiaries 740   300   426  
Changes in:      
Increase in equity of subsidiaries ( 1,987 ) ( 1,745 ) ( 1,299 )
Current federal income taxes 4   ( 6 ) 1  
Deferred income tax 89   64   144  
Other assets ( 10 ) ( 4 ) ( 12 )
Other liabilities ( 3 ) 3   3  
Intercompany receivable/payable ( 166 ) 21   95  
Net cash provided by operating activities 606   288   567  

Cash Flows From Investing Activities      
Sale, call or maturity of fixed maturities 90   124   17  
Sale of equity securities 137   665   138  
Purchase of fixed maturities ( 9 ) ( 124 ) ( 119 )
Purchase of equity securities ( 218 ) ( 19 ) ( 65 )
Change in short-term investments, net 156   ( 295 ) —  
Investment in buildings and equipment ( 7 ) ( 14 ) ( 10 )

Change in other invested assets, net 2   9   —  

Net cash (used in) received from investing activities 151   346   ( 39 )

Cash Flows From Financing Activities      

Payment of cash dividends to shareholders ( 525 ) ( 490 ) ( 454 )
Shares acquired - share repurchase authorization ( 205 ) ( 126 ) ( 67 )
Proceeds from stock options exercised 10   10   9  

Other 1   1   1  
Net cash used in financing activities ( 719 ) ( 605 ) ( 511 )
Net change in cash and cash equivalents 38   29   17  
Cash and cash equivalents at beginning of year 167   138   121  
Cash and cash equivalents at end of year $ 205   $ 167   $ 138  

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.
 
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Schedule III
Cincinnati Financial Corporation and Subsidiaries
Supplementary Insurance Information
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Deferred policy acquisition costs:      
Commercial lines insurance $ 459   $ 431   $ 387  
Personal lines insurance 320   276   210  
Excess and surplus lines insurance 56   50   43  
Other 139   129   109  
Total property casualty insurance 974   886   749  
Life insurance 370   356   344  
Total $ 1,344   $ 1,242   $ 1,093  

Gross future policy benefits, losses, claims and expense losses:      
Commercial lines insurance $ 6,992   $ 6,303   $ 5,887  
Personal lines insurance 1,685   1,209   990  
Excess and surplus lines insurance 1,299   1,109   932  
Other 1,474   1,316   1,166  
Total property casualty insurance 11,450   9,937   8,975  
Life insurance 3,014   2,983   3,094  
Total (1) $ 14,464   $ 12,920   $ 12,069  

Gross unearned premiums:      
Commercial lines insurance $ 2,441   $ 2,311   $ 2,111  
Personal lines insurance 1,864   1,633   1,253  
Excess and surplus lines insurance 362   321   273  
Other 586   547   481  
Total property casualty insurance 5,253   4,812   4,118  
Life insurance 1   1   1  
Total (1) $ 5,254   $ 4,813   $ 4,119  

Other policy claims and benefits payable:      
Commercial lines insurance $ —   $ —  $ — 
Personal lines insurance —   —  — 
Excess and surplus lines insurance —   —  — 
Other —   —  — 
Total property casualty insurance —   —  — 
Life insurance 35   43   49  
Total (1) $ 35   $ 43   $ 49  

Earned premiums:      
Commercial lines insurance $ 4,863   $ 4,486   $ 4,264  
Personal lines insurance 3,199   2,623   2,044  
Excess and surplus lines insurance 698   615   542  
Other 893   844   795  
Total property casualty insurance 9,653   8,568   7,645  
Life insurance 330   321   313  
Total $ 9,983   $ 8,889   $ 7,958  

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  Schedule III (continued)
Cincinnati Financial Corporation and Subsidiaries
Supplementary Insurance Information
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Investment income, net of expenses:      
Commercial lines insurance $ —   $ —  $ — 
Personal lines insurance —   —  — 
Excess and surplus lines insurance —   —  — 
Other —   —  — 
Total property casualty insurance (2) 854   715   602  
Life insurance 202   190   184  
Total $ 1,056   $ 905   $ 786  

Benefits, claims losses and settlement expenses:      
Commercial lines insurance $ 2,970   $ 2,795   $ 2,787  
Personal lines insurance 2,419   1,795   1,442  
Excess and surplus lines insurance 425   411   350  
Other 521   435   379  
Total property casualty insurance 6,335   5,436   4,958  
Life insurance 305   301   316  

Total $ 6,640   $ 5,737   $ 5,274  

Amortization of deferred policy acquisition costs:      
Commercial lines insurance $ 937   $ 853   $ 808  
Personal lines insurance 572   457   367  
Excess and surplus lines insurance 115   102   89  
Other 196   199   157  
Total property casualty insurance 1,820   1,611   1,421  
Life insurance 31   30   29  
Total (3) $ 1,851   $ 1,641   $ 1,450  

Underwriting, acquisition and insurance expenses:      
Commercial lines insurance $ 522   $ 531   $ 505  
Personal lines insurance 324   305   243  
Excess and surplus lines insurance 77   65   52  
Other 88   52   76  
Total property casualty insurance 1,011   953   876  
Life insurance 62   63   58  
Total (3) $ 1,073   $ 1,016   $ 934  

Net written premiums:      
Commercial lines insurance $ 4,998   $ 4,690   $ 4,336  
Personal lines insurance 3,430   2,999   2,302  
Excess and surplus lines insurance 729   654   570  
Other 925   900   838  
Total property casualty insurance 10,082   9,243   8,046  
Accident and health insurance 2   2   2  
Total $ 10,084   $ 9,245   $ 8,048  

Notes to Schedule III:
(1) The sum of gross future policy benefits, losses, claims and expense losses, gross unearned premiums and other policy claims and benefits payable is equal to the sum of Loss and loss expense reserves, Life policy reserves and investment contract reserves and Unearned premiums reported in the company’s consolidated balance sheets.
(2) This segment information is not regularly allocated to segments and reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance.
(3) The sum of amortization of deferred policy acquisition costs and other underwriting and insurance expenses is equal to Underwriting, acquisition and insurance expenses in the consolidated statements of income.
 
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Schedule IV
Cincinnati Financial Corporation and Subsidiaries
Reinsurance
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Gross amounts:      
Life insurance in force $ 127,448   $ 124,145   $ 122,053  
Earned premiums      
Commercial lines insurance $ 4,992   $ 4,638   $ 4,399  
Personal lines insurance 3,378   2,724   2,117  
Excess and surplus lines insurance 741   652   572  
Other 363   324   319  
Total property casualty insurance 9,474   8,338   7,407  
Life insurance 412   404   394  
Total $ 9,886   $ 8,742   $ 7,801  

Ceded amounts to other companies:      
Life insurance in force $ 40,137   $ 39,900   $ 39,692  
Earned premiums      
Commercial lines insurance $ 141   $ 162   $ 147  
Personal lines insurance 180   102   74  
Excess and surplus lines insurance 43   37   30  
Other 130   111   80  
Total property casualty insurance 494   412   331  
Life insurance 82   83   81  
Total $ 576   $ 495   $ 412  

Assumed amounts from other companies:      
Life insurance in force $ —   $ —   $ —  
Earned premiums      
Commercial lines insurance $ 12   $ 10   $ 12  
Personal lines insurance 1   1   1  
Excess and surplus lines insurance —   —   —  
Other 660   631   556  
Total property casualty insurance 673   642   569  
Life insurance —   —   —  
Total $ 673   $ 642   $ 569  

Net amounts:      
Life insurance in force $ 87,311   $ 84,245   $ 82,361  
Earned premiums      
Commercial lines insurance $ 4,863   $ 4,486   $ 4,264  
Personal lines insurance 3,199   2,623   2,044  
Excess and surplus lines insurance 698   615   542  
Other 893   844   795  
Total property casualty insurance 9,653   8,568   7,645  
Life insurance 330   321   313  
Total $ 9,983   $ 8,889   $ 7,958  

Percentage of amounts assumed to net:      
Life insurance in force —   % —   % —   %
Earned premiums      
Commercial lines insurance 0.2   % 0.2   % 0.3   %
Personal lines insurance —   —   —  
Excess and surplus lines insurance —   —   —  
Other 73.9   74.8   69.9  
Total property casualty insurance 7.0   7.5   7.4  
Life insurance —   —   —  
Total 6.7   7.2   7.2  

 
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Schedule V
Cincinnati Financial Corporation and Subsidiaries
Valuation and Qualifying Accounts
(Dollars in millions) At December 31,
  2025 2024 2023
Allowance for credit losses (1):      
Beginning balance, January 1 $ 53   $ 36   $ 17  

Additions charged to costs and expenses 49   43   33  
Deductions ( 26 ) ( 26 ) ( 14 )
Ending balance, December 31 $ 76   $ 53   $ 36  
Deferred tax valuation allowance:
Beginning balance, January 1 $ —   $ —   $ 31  
Additions charged to costs and expenses —   —   —  
Deductions —   —   ( 31 )
Ending balance, December 31 —   —   —  
  Total valuation and qualifying accounts $ 76   $ 53   $ 36  

  Notes to Schedule V:
(1) Includes allowances for credit losses related to premiums receivable, reinsurance recoverable, finance receivables and fixed-maturity securities.
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Schedule VI
Cincinnati Financial Corporation and Subsidiaries
Supplementary Information Concerning Property Casualty Insurance Operations
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Deferred policy acquisition costs:      
Commercial lines insurance $ 459   $ 431   $ 387  
Personal lines insurance 320   276   210  
Excess and surplus lines insurance 56   50   43  
Other 139   129   109  
Total $ 974   $ 886   $ 749  

Reserves for unpaid claims and claim adjustment expenses:      
Commercial lines insurance $ 6,992   $ 6,303   $ 5,887  
Personal lines insurance 1,685   1,209   990  
Excess and surplus lines insurance 1,299   1,109   932  
Other 1,474   1,316   1,166  
Total $ 11,450   $ 9,937   $ 8,975  

Reserve discount deducted $ —   $ —  $ — 

Gross unearned premiums:      
Commercial lines insurance $ 2,441   $ 2,311   $ 2,111  
Personal lines insurance 1,864   1,633   1,253  
Excess and surplus lines insurance 362   321   273  
Other 586   547   481  
Total $ 5,253   $ 4,812   $ 4,118  

Earned premiums:      
Commercial lines insurance $ 4,863   $ 4,486   $ 4,264  
Personal lines insurance 3,199   2,623   2,044  
Excess and surplus lines insurance 698   615   542  
Other 893   844   795  
Total $ 9,653   $ 8,568   $ 7,645  

Investment income, net of expenses:      
Commercial lines insurance $ —   $ —   $ —  
Personal lines insurance —   —   —  
Excess and surplus lines insurance —   —   —  
Other —   —   —  
Total (1) $ 854   $ 715   $ 602  

Note to Schedule VI:
(1) This segment information is not regularly allocated to segments and not reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance.

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  Schedule VI (continued)
Cincinnati Financial Corporation and Subsidiaries
Supplementary Information Concerning Property Casualty Insurance Operations
(Dollars in millions) Years ended December 31,
  2025 2024 2023
Loss and loss expenses incurred related to current accident year:      
Commercial lines insurance $ 3,100   $ 2,933   $ 2,910  
Personal lines insurance 2,423   1,821   1,506  
Excess and surplus lines insurance 444   403   361  
Other 564   515   396  
Total $ 6,531   $ 5,672   $ 5,173  

Loss and loss expenses incurred related to prior accident years:      
Commercial lines insurance $ ( 130 ) $ ( 138 ) $ ( 123 )
Personal lines insurance ( 4 ) ( 26 ) ( 64 )
Excess and surplus lines insurance ( 19 ) 8   ( 11 )
Other ( 43 ) ( 80 ) ( 17 )
Total $ ( 196 ) $ ( 236 ) $ ( 215 )

Amortization of deferred policy acquisition costs:      
Commercial lines insurance $ 937   $ 853   $ 808  
Personal lines insurance 572   457   367  
Excess and surplus lines insurance 115   102   89  
Other 196   199   157  
Total $ 1,820   $ 1,611   $ 1,421  

Paid loss and loss expenses:      
Commercial lines insurance $ 2,302   $ 2,335   $ 2,480  
Personal lines insurance 2,061   1,565   1,353  
Excess and surplus lines insurance 235   229   183  
Other 393   252   260  
Total $ 4,991   $ 4,381   $ 4,276  

Net written premiums:      
Commercial lines insurance $ 4,998   $ 4,690   $ 4,336  
Personal lines insurance 3,430   2,999   2,302  
Excess and surplus lines insurance 729   654   570  
Other 925   900   838  
Total $ 10,082   $ 9,243   $ 8,046  

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Index of Exhibits
Exhibit No. Exhibit Description
3.1 Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation as of May 29, 2025, (incorporated by reference to Exhibit 3.1 filed with the company’s Quarterly Report on Form 10-Q filed on July 28, 2025)

3.2 Amended and Restated Code of Regulations of Cincinnati Financial Corporation, as of May 6, 2023 (incorporated by reference to Exhibit 3.1 filed with the company’s Current Report on Form 8-K filed on May 9, 2023)

4.1 Indenture with The Bank of New York Trust Company (incorporated by reference to Exhibit 4.1 filed with the company’s Current Report on Form 8-K filed on November 2, 2004, filed with respect to the issuance of the company’s 6.125% Senior Notes due November 1, 2034)

4.2 Supplemental Indenture with The Bank of New York Trust Company (incorporated by reference to Exhibit 4.2 filed with the company’s Current Report on Form 8-K filed on November 2, 2004, filed with respect to the issuance of the company’s 6.125% Senior Notes due November 1, 2034)

4.3 Second Supplemental Indenture with The Bank of New York Trust Company (incorporated by reference to Exhibit 4.2 filed with the company’s Current Report on Form 8-K filed on May 9, 2005, filed with respect to the completion of the company’s exchange offer and rescission offer for its 6.90% senior debentures due 2028)

4.4 Form of 6.125% Exchange Note Due 2034 (included in Exhibit 4.2)

4.5 Form of 6.92% Debentures Due 2028 (included in Exhibit 4.3)

4.6 Indenture with the First National Bank of Chicago (subsequently assigned to The Bank of New York Trust Company) (incorporated by reference to the company’s registration statement on Form S-3 filed on May 20, 1998 (File No. 333-51677))

4.7 Form of 6.90% Debentures Due 2028 (included in Exhibit 4.6)

4.8 Description of Registered Securities (incorporated by reference to Exhibit 4.8 filed with the company's Annual Report on Form 10-K filed on February 26, 2024)

10.1 Cincinnati Financial Corporation Nonemployee Director Stock Plan of 2018 (incorporated by reference to the company’s definitive Proxy Statement dated March 21, 2018, Appendix C)

10.2 First Amendment to the Cincinnati Financial Corporation Nonemployee Director Stock Plan of 2018 (incorporated by reference to Exhibit 10.2 filed with the company’s Annual Report on Form 10-K filed on February 25, 2021)

10.3 Cincinnati Financial Corporation Nonemployee Director Deferred Compensation Plan (incorporated by reference to Exhibit 10.3 filed with the company’s Annual Report on Form 10-K filed on February 25, 2021)

10.4 Cincinnati Financial Corporation Annual Incentive Compensation Plan of 2009, Amended and Restated on January 28, 2022 (incorporated by reference to the company’s Exhibit 10.6 filed with the company’s Annual Report on Form 10-K filed on February 24, 2022)

10.5 Cincinnati Financial Corporation 2006 Stock Compensation Plan (incorporated by reference to the company’s definitive Proxy Statement dated March 30, 2006, Appendix B)

10.6 Cincinnati Financial Corporation 2012 Stock Compensation Plan (incorporated by reference to the company’s definitive Proxy Statement dated March 16, 2012, Appendix A)

10.7 Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to the company’s Definitive Proxy Statement dated March 16, 2016, Appendix B)

10.8 First Amendment of Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 99.1 filed with the Company’s current report on Form 8-K filed on April 11, 2016)

10.9 Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to the company's definitive Proxy Statement dated March 20, 2024, Appendix B)

10.10 Amended and Restated Cincinnati Financial Corporation Supplemental Retirement Plan dated October 1, 2025.

10.11 Form of Incentive Stock Option Agreement for the 2006 Stock Compensation Plan (incorporated by reference to Exhibit 10.3 filed with the company’s Current Report on Form 8-K filed on October 26, 2006)

10.12 Form of Nonqualified Stock Option Agreement for the 2006 Stock Compensation Plan (incorporated by reference to Exhibit 10.4 filed with the company’s Current Report on Form 8-K filed on October 26, 2006)

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Exhibit No. Exhibit Description
10.13 Form of Incentive Stock Option Agreement for the Cincinnati Financial Corporation 2012 Stock Compensation Plan (incorporated by reference to Exhibit 10.1 filed with the company’s Current Report on Form 8-K filed on February 21, 2013)

10.14 Form of Nonqualified Stock Option Agreement for the Cincinnati Financial Corporation 2012 Stock Compensation Plan (incorporated by reference to Exhibit 10.2 filed with the company’s Current Report on Form 8-K filed on February 21, 2013 )

10.15 Form of Incentive Compensation Agreement for the Cincinnati Financial Corporation Annual Incentive Compensation Plan of 2009 (as amended January 31, 2014) (incorporated by reference to Exhibit 10.1 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.16 Form of Incentive Compensation Agreement for the Cincinnati Financial Corporation Annual Incentive Compensation Plan of 2009, Amended and Restated on January 29, 2022 (incorporated by reference to Exhibit 10.1 filed with the company’s Current Report on Form 8-K filed on January 29, 2024)

10.17 Form of Incentive Stock Option Agreement for the Cincinnati Financial Corporation 2012 Stock Compensation Plan (incorporated by reference to Exhibit 10.2 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.18 Form of Nonqualified Stock Option Agreement for the Cincinnati Financial Corporation 2012 Stock Compensation Plan (incorporated by reference to Exhibit 10.3 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.19 Form of Incentive Stock Option Agreement for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 10.7 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.20 Form of Nonqualified Stock Option Agreement for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 10.8 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.21 Form of Restricted Stock Unit Agreement (service based/cliff) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 10.9 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.22 Form of Restricted Stock Unit Agreement (service based/cliff) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by referenced to Exhibit 10.2 filed with the company’s Current Report on Form 8-K filed on January 29, 2024)

10.23 Form of Restricted Stock Unit Agreement (service based/ratable) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 10.10 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.24 Form of Restricted Stock Unit Agreement (service based/ratable) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by referenced to Exhibit 10.3 filed with the company’s Current Report on Form 8-K filed on January 29, 2024)

10.25 Form of Restricted Stock Unit Agreement (performance based) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by reference to Exhibit 10.11 filed with the company’s Current Report on Form 8-K filed on January 30, 2017)

10.26 Form of Restricted Stock Unit Agreement (performance based) for the Cincinnati Financial Corporation 2016 Stock Compensation Plan (incorporated by referenced to Exhibit 10.4 filed with the company’s Current Report on Form 8-K filed on January 29, 2024)

10.27 Form of Incentive Stock Option Agreement for the Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to Exhibit 10.1 filed with the company's Current Report on Form 8-K filed on January 31, 2025)

10.28 Form of Nonqualified Stock Option Agreement for the Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to Exhibit 10.2 filed with the company's Current Report on Form 8-K filed on January 31, 2025)

10.29 Form of Restricted Stock Unit Agreement (service based/cliff) for the Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to Exhibit 10.3 filed with the company's Current Report on Form 8-K filed on January 31, 2025)

10.30 Form of Restricted Stock Unit Agreement (service based/ratable) for the Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to Exhibit 10.4 filed with the company's Current Report on Form 8-K filed on January 31, 2025)

10.31 Form of Restricted Stock Unit Agreement (performance based) for the Cincinnati Financial Corporation 2024 Stock Compensation Plan (incorporated by reference to Exhibit 10.5 filed with the company's Current Report on Form 8-K filed on January 31, 2025)

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Exhibit No. Exhibit Description
10.32 Amended and Restated Cincinnati Financial Corporation Top Hat Savings Plan dated January 1, 2018 (incorporated by reference to Exhibit 10.31 filed with the company's Annual Report on Form 10-K filed on February 23, 2018)

10.33 First Amendment to the Amended and Restated Cincinnati Financial Corporation Top Hat Savings Plan dated January 1, 2018 (incorporated by reference to Exhibit 10.1 filed with the company's Quarterly Report on Form 10-Q filed on July 25, 2024)

10.34 Cincinnati Financial Corporation Executive Deferred Compensation Agreement by and between the Cincinnati Financial Corporation and Michael J. Sewell, dated as of October 25, 2011 (incorporated by reference to Exhibit 10.2 filed with the company’s Quarterly Report on Form 10-Q filed on October 27, 2011)

10.35 Credit Agreement dated October 10, 2025, by and among Cincinnati Financial Corporation and CFC Investment Company as borrowers, Fifth Third Bank, N.A. as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 10.1 filed with the company's Current Report on Form 8-K filed on October 10, 2025)

11 Statement re: Computation of per share earnings for the years ended December 31, 2025, 2024, and 2023, contained in Part II, Item 8, Note 12, to the Consolidated Financial Statements

14 Cincinnati Financial Corporation Code of Ethics for Senior Financial Officers (incorporated by reference to the company’s definitive Proxy Statement dated March 18, 2004 (File No. 000-04604))

19 Cincinnati Financial Corporation Securities Trading Policy and Addendum to Securities Trading Policy for Pre-Clearance and Blackout Procedures (incorporated by reference to Exhibit 19 filed with the company's Annual Report on Form 10-K filed on February 26, 2024)

21 Cincinnati Financial Corporation subsidiaries contained in Part I, Item 1, of this report

23 Consent of Independent Registered Public Accounting Firm

31A Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer

31B Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer

32 Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002

97 Cincinnati Financial Corporation Policy for The Recovery of Erroneously Awarded Compensation (incorporated by reference to Exhibit 97 filed with the company's Annual Report on Form 10-K filed on February 26, 2024)

101.INS The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 
Cincinnati Financial Corporation - 2025 10-K - Page 194

Table of Contents

Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Cincinnati Financial Corporation
 
/S/ Michael J. Sewell

By:        Michael J. Sewell, CPA
Title:        Chief Financial Officer, Executive Vice President and Treasurer
        (Principal Accounting Officer)
Date:         February 23, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been duly signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature Title Date
/S/ Steven J. Johnston Chairman of the Board February 23, 2026
Steven J. Johnston
/S/ Stephen M. Spray President, Chief Executive Officer and Director February 23, 2026
Stephen M. Spray
/S/ Michael J. Sewell Chief Financial Officer, Executive Vice President and Treasurer February 23, 2026
Michael J. Sewell
/S/ Nancy C. Benacci Director February 23, 2026
Nancy C. Benacci
/S/ Linda W. Clement-Holmes Director February 23, 2026
Linda W. Clement-Holmes
/S/ Dirk J. Debbink Director February 23, 2026
Dirk J. Debbink
/S/ Jill P. Meyer Director February 23, 2026
Jill P. Meyer
/S/ David P. Osborn Director February 23, 2026
David P. Osborn
/S/ Gretchen W. Schar Director February 23, 2026
Gretchen W. Schar
/S/ Charles O. Schiff Director February 23, 2026
Charles O. Schiff
/S/ Douglas S. Skidmore Director February 23, 2026
Douglas S. Skidmore
/S/ John F. Steele, Jr. Director February 23, 2026
John F. Steele, Jr.
/S/ Larry R. Webb Director February 23, 2026
Larry R. Webb
/S/ Edward S. Wilkins Director February 23, 2026
Edward S. Wilkins
/S/ Chengsheng Peter Wu Director February 23, 2026
Chengsheng Peter Wu

 
Cincinnati Financial Corporation - 2025 10-K - Page 195