10-Q – 2025-10-27 – cinf-20250930.htm

Combined ratio 88.2   % 110.3  % (22.1) 111.8   % 104.1  % 7.7 
Contribution from catastrophe losses and prior years reserve development 9.7   27.5  (17.8) 28.7   19.5  9.2 
Combined ratio before catastrophe losses and prior years reserve development 78.5   % 82.8  % (4.3) 83.1   % 84.6  % (1.5)

Overview
Performance highlights for the personal lines segment include:
• Premiums – Personal lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2025, primarily due to agency renewal written premium growth that included higher average pricing. Cincinnati Private Client SM net written premiums included in the personal lines insurance segment results totaled approximately $572 million and $1.526 billion for the third quarter and first nine months of 2025, compared with $479 million and $1.281 billion for the same periods of 2024. Direct written premiums for Cincinnati Private Client policies grew 23% for the first nine months of 2025 compared with the same period
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of 2024. Cincinnati Private Client net written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $47 million in the third quarter and $94 million in the first nine months of 2025, compared with $46 million in the third quarter and $131 million in the first nine months of 2024. The table below analyzes the primary components of premiums.
Agency renewal written premiums increased 24% and 26% for the third quarter and first nine months of 2025, reflecting rate increases in selected states, a higher level of insured exposures and other factors such as changes in policy deductibles or mix of business. Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials used to repair damaged homes.
We estimate that premium rates for our personal auto line of business increased at average percentages in the high-single-digit range during the first nine months of 2025. For our homeowner line of business, we estimate that premium rates for the first nine months of 2025 increased at average percentages in the low-double-digit range. For both our personal auto and homeowner lines of business, some individual policies experienced lower or higher rate changes based on each risk's specific characteristics and enhanced pricing precision enabled by predictive models.
Personal lines new business written premiums decreased $49 million or 30% for the third quarter of 2025, compared with the same period of 2024, including approximately $28 million from Cincinnati Private Client policies and $21 million from middle-market policies. Cincinnati Private Client new business premiums from California decreased approximately $9 million for the third quarter of 2025 compared with the prior year. For the first nine months of 2025, compared with the same period of 2024, personal lines new business written premiums decreased $66 million, or 15%, including approximately $31 million from Cincinnati Private Client policies and $35 million from middle-market policies. We believe we maintained underwriting and pricing discipline across all personal lines markets as we expanded use of enhanced pricing precision tools.
Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our personal lines insurance segment, an increase in 2025 ceded premiums reduced net written premiums by approximately $1 million and $71 million for the third quarter and first nine months of 2025, compared with the same periods of 2024. Ceded premiums for the first nine months of 2025 included a net amount of $63 million for reinsurance reinstatement premiums related to the January 2025 wildfires in southern California. The $63 million of reinstatement premiums included $61 million for our homeowner line of business.

Personal Lines Insurance Premiums

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Agency renewal written premiums $ 864   $ 695  24  $ 2,364   $ 1,870  26 
Agency new business written premiums 116   165  (30) 384   450  (15)
Other written premiums (29) (28) (4) (145) (74) (96)
Net written premiums 951   832  14  2,603   2,246  16 
Unearned premium change (113) (154) 27  (263) (349) 25 
Earned premiums $ 838   $ 678  24  $ 2,340   $ 1,897  23 

 
• Combined ratio – Our personal lines combined ratio for the third quarter of 2025 improved by 22.1 percentage points, compared with third-quarter 2024, including a decrease of 19.5 points in losses from catastrophes. The third-quarter 2025 combined ratio improvement also included a decrease of 3.3 percentage points from current accident year loss and loss expenses before catastrophe losses, including a decrease of 1.0 points for the IBNR portion and a decrease of 2.3 points for the case incurred portion. For the first nine months of 2025, the combined ratio increased by 7.7 percentage points, compared with the same period a year ago, including an increase of 9.1 points in losses from catastrophes. The nine-month 2025 combined ratio also included a decrease of 0.7 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.3 points for the IBNR portion and a decrease of 3.0 points for the case incurred portion. The nine-month 2025 current accident year ratio before catastrophe losses included an unfavorable 1.4 points for the effect of reinstatement premiums. The total current accident year ratios before catastrophe losses were measured as of September 30 of the respective years and included an increase of 0.8 percentage points for the first nine months of 2025 in the ratio for large losses of $2 million or more per claim, discussed below.
When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends for inflation, historical paid and reported losses, large loss activity and other data or information for the industry
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or our company. Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged autos or homes that we insure. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.
Catastrophe losses and loss expenses accounted for 7.1 and 28.3 percentage points of the combined ratio for the third quarter and first nine months of 2025, compared with 26.6 and 19.2 points for the same periods a year ago. The 10-year annual average catastrophe loss ratio for the personal lines segment through 2024 was 12.1 percentage points, and the five-year annual average was 13.9 percentage points.
In addition to the average rate increases discussed above, we continue to refine our pricing to better match premiums to the risk of loss on individual policies. Improved pricing precision and broad-based rate increases are expected to help position the combined ratio at a profitable level over the long term. In addition, greater geographic diversification is expected to reduce the volatility of homeowner loss ratios attributable to weather-related catastrophe losses over time.
The net effect of reserve development on prior accident years during the third quarter of 2025 was unfavorable by $14 million and favorable by $24 million for the first nine months of 2025 for personal lines overall, compared with less than $1 million unfavorable and $27 million favorable for the same periods of 2024. Our homeowner line of business was the main contributor to the personal lines net favorable reserve development for the first nine months of 2025. The net favorable reserve development was primarily due to lower-than-anticipated loss emergence on known claims. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.
The personal lines underwriting expense ratio decreased for the third quarter and first nine months of 2025, compared with the same periods a year ago. The third-quarter and nine-month decreases were primarily due to growth in premiums outpacing growth in various expenses. The nine-month 2025 ratio also included an unfavorable 0.7 points for the effect of reinstatement premiums. The ratios for both periods also included ongoing expense management efforts.

Personal Lines Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Current accident year losses greater than $5 million $ —   $ 7  (100) $ 29   $ 7  314 
Current accident year losses $2 million - $5 million 23   13  77  46   39  18 
Large loss prior accident year reserve development 2   (1) nm 27   2  nm
Total large losses incurred 25   19  32  102   48  113 
Losses incurred but not reported 32   33  (3) 143   86  66 
Other losses excluding catastrophe losses 316   256  23  827   743  11 
Catastrophe losses 54   178  (70) 645   357  81 
Total losses incurred $ 427   $ 486  (12) $ 1,717   $ 1,234  39 

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year losses greater than $5 million 0.0   % 1.1  % (1.1) 1.3   % 0.4  % 0.9 
Current accident year losses $2 million - $5 million 2.9   2.0  0.9  2.0   2.1  (0.1)
Large loss prior accident year reserve development 0.2   (0.2) 0.4  1.1   0.1  1.0 
Total large loss ratio 3.1   2.9  0.2  4.4   2.6  1.8 
Losses incurred but not reported 3.8   5.0  (1.2) 6.1   4.6  1.5 
Other losses excluding catastrophe losses 37.5   37.6  (0.1) 35.4   39.0  (3.6)
Catastrophe losses 6.5   26.2  (19.7) 27.5   18.8  8.7 
Total loss ratio 50.9   % 71.7  % (20.8) 73.4   % 65.0  % 8.4 

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic
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region, policy inception, agency or field marketing territory. In the third quarter of 2025, the personal lines total large loss ratio, net of reinsurance, was 0.2 percentage points higher than last year's third quarter. The increase in personal lines total large losses incurred for the first nine months of 2025 occurred primarily for our homeowner line of business and inland marine coverages in our other personal line of business. The third-quarter 2025 amount of total large losses incurred unfavorably contributed to the increase in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 2.7 points higher than the first half of 2024. We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

EXCESS AND SURPLUS LINES INSURANCE RESULTS

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Earned premiums $ 174   $ 157  11  $ 510   $ 447  14 
Fee revenues 1   —  nm 3   2  50 
Total revenues 175   157  11  513   449  14 

Loss and loss expenses from:            
Current accident year before catastrophe losses 112   100  12  331   288  15 
Current accident year catastrophe losses —   2  (100) 4   6  (33)
Prior accident years before catastrophe losses (4) 5  nm (17) 5  nm
Prior accident years catastrophe losses —   —  0  (1) —  nm
Loss and loss expenses 108   107  1  317   299  6 
Underwriting expenses 48   42  14  141   122  16 
Underwriting profit $ 19   $ 8  138  $ 55   $ 28  96 

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year before catastrophe losses 64.1   % 64.2  % (0.1) 64.8   % 64.6  % 0.2 
Current accident year catastrophe losses 0.2   1.7  (1.5) 0.9   1.4  (0.5)
Prior accident years before catastrophe losses (2.1) 2.9  (5.0) (3.2) 1.0  (4.2)
Prior accident years catastrophe losses (0.1) (0.2) 0.1  (0.3) 0.0  (0.3)
Loss and loss expenses 62.1   68.6  (6.5) 62.2   67.0  (4.8)
Underwriting expenses 27.7   26.7  1.0  27.6   27.3  0.3 
Combined ratio 89.8   % 95.3  % (5.5) 89.8   % 94.3  % (4.5)

Combined ratio 89.8   % 95.3  % (5.5) 89.8   % 94.3  % (4.5)
Contribution from catastrophe losses and prior years reserve development
(2.0) 4.4  (6.4) (2.6) 2.4  (5.0)
Combined ratio before catastrophe losses and prior years reserve development 91.8   % 90.9  % 0.9  92.4   % 91.9  % 0.5 

 
Overview
Performance highlights for the excess and surplus lines segment include:
• Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2025, compared with the same period a year ago, including increases in both agency renewal and new business written premiums. Renewal written premiums rose 15% for the third quarter and 12% for the nine months ended September 30, 2025, compared with the same periods of 2024, largely due to higher renewal pricing. For both 2025 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range. We measure average changes in excess and surplus lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for respective policies.
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New business written premiums produced by agencies increased by 2% for the third quarter and 16% for the first nine months of 2025 compared with the same periods of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Some of what we report as new business came from accounts that were not new to our agents. We believe our agents' seasoned accounts tend to be priced more accurately than business that may be less familiar to them.

Excess and Surplus Lines Insurance Premiums

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Agency renewal written premiums $ 130   $ 113  15  $ 409   $ 365  12 
Agency new business written premiums 55   54  2  171   147  16 
Other written premiums (10) (10) 0  (35) (29) (21)
Net written premiums 175   157  11  545   483  13 
Unearned premium change (1) —  nm (35) (36) 3 
Earned premiums $ 174   $ 157  11  $ 510   $ 447  14 

 
• Combined ratio – The excess and surplus lines combined ratio improved by 5.5 percentage points for the third quarter and 4.5 points for the first nine months of 2025, compared with the same periods of 2024. The improvements were primarily due to favorable reserve development on prior accident year loss and loss expenses for the three and nine months ended September 30, 2025, compared with unfavorable development for the same periods of 2024.
The 64.1% third-quarter 2025 ratio for current accident year loss and loss expenses before catastrophe losses was 0.1 percentage points lower, compared with the 64.2% accident year 2024 ratio measured as of September 30, 2024, including a decrease of 2.4 points for the IBNR portion and an increase of 2.3 points for the case incurred portion. The nine-month 2025 ratio for current accident year loss and loss expenses before catastrophe losses was 0.2 percentage points higher, compared with the 64.6% accident year 2024 ratio measured as of September 30, 2024, including an increase of 2.7 points for the IBNR portion and a decrease of 2.5 points for the case incurred portion.
Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was favorable by 2.2% for the third quarter and 3.5% for the first nine months of 2025, compared with unfavorable 2.7% and 1.0% for the same periods of 2024. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.
The excess and surplus lines underwriting expense ratio increased for the third quarter and first nine months of 2025 compared with the same periods a year ago, largely due to an increase in commission expenses. The ratios also included ongoing expense management efforts and premium growth.
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Excess and Surplus Lines Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Current accident year losses greater than $5 million $ —   $ —  nm $ —   $ —  nm
Current accident year losses $2 million - $5 million —   2  (100) —   4  (100)
Large loss prior accident year reserve development —   —  nm —   —  nm
Total large losses incurred —   2  (100) —   4  (100)
Losses incurred but not reported 16   12  33  93   59  58 
Other losses excluding catastrophe losses 59   55  7  125   143  (13)
Catastrophe losses —   2  (100) 3   6  (50)
Total losses incurred $ 75   $ 71  6  $ 221   $ 212  4 

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year losses greater than $5 million 0.0   % 0.0  % 0.0  0.0   % 0.0  % 0.0 
Current accident year losses $2 million - $5 million 0.0   1.3  (1.3) 0.0   0.9  (0.9)
Large loss prior accident year reserve development 0.0   0.0  0.0  0.0   0.0  0.0 
Total large loss ratio 0.0   1.3  (1.3) 0.0   0.9  (0.9)
Losses incurred but not reported 9.2   7.1  2.1  18.3   13.2  5.1 
Other losses excluding catastrophe losses 33.6   35.4  (1.8) 24.4   32.1  (7.7)
Catastrophe losses 0.0   1.5  (1.5) 0.5   1.3  (0.8)
Total loss ratio 42.8   % 45.3  % (2.5) 43.2   % 47.5  % (4.3)

 
We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. In the third quarter of 2025, the excess and surplus lines total ratio for large losses, net of reinsurance, was 1.3 percentage points lower than last year's third quarter. The third-quarter 2025 amount of total large losses incurred contributed favorably to the decrease in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 0.7 points lower than the first half of 2024. We believe results for the three- and nine month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.
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LIFE INSURANCE RESULTS

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Earned premiums $ 83   $ 80  4  $ 246   $ 240  3 
Fee revenues 1   1  0  4   4  0 
Total revenues 84   81  4  250   244  2 
Contract holders' benefits incurred 76   79  (4) 230   226  2 
Investment interest credited to contract holders (32) (32) 0  (95) (94) (1)
Underwriting expenses incurred 23   24  (4) 70   70  0 
Total benefits and expenses 67   71  (6) 205   202  1 
Life insurance segment profit $ 17   $ 10  70  $ 45   $ 42  7 

 
Overview
Performance highlights for the life insurance segment include:
• Revenues – Revenues increased for the nine months ended September 30, 2025, compared with the same period a year ago, driven by higher earned premiums from term life insurance, our largest life insurance product line.
Net in-force life insurance policy face amounts increased 3% to $86.438 billion at September 30, 2025, from $84.245 billion at year-end 2024.
Fixed annuity deposits received for the three and nine months ended September 30, 2025, were $8 million and $20 million, compared with $10 million and $29 million for the same periods of 2024. Fixed annuity deposits have a minimal impact on earned premiums because deposits received are initially recorded as liabilities. Profit is earned over time by way of interest rate spreads. We do not write variable or equity-indexed annuities.

Life Insurance Premiums

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Term life insurance $ 61   $ 58  5  $ 179   $ 174  3 
Whole life insurance 14   13  8  40   39  3 
Universal life and other 8   9  (11) 27   27  0 
Net earned premiums $ 83   $ 80  4  $ 246   $ 240  3 

 
• Profitability – Our life insurance segment typically reports a smaller profit compared with the life insurance subsidiary because profits from investment income spreads are included in our investments segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A profit of $45 million for our life insurance segment in the first nine months of 2025, compared with a profit of $42 million for the same period of 2024, was primarily due to increased earned premiums.

Life insurance segment benefits and expenses consist principally of contract holders' (policyholders') benefits incurred related to traditional life and interest-sensitive products and operating expenses incurred, net of deferred acquisition costs. Total benefits increased in the first nine months of 2025 primarily due to less favorable impacts from the unlocking of interest rate and other actuarial assumptions.

Underwriting expenses for the first nine months of 2025 matched the same period a year ago.

We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products. On a basis that includes investment income and investment gains or losses from life-insurance-related
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invested assets, the life insurance subsidiary reported net income of $28 million and $75 million for the three and nine months ended September 30, 2025, compared with $20 million and $63 million for the three and nine months ended September 30, 2024. The life insurance subsidiary portfolio had net after-tax investment losses of $1 million and $5 million for the three and nine months ended September 30, 2025, compared with less than $1 million and $7 million for the three and nine months ended September 30, 2024.

INVESTMENTS RESULTS

Overview
The investments segment contributes investment income and investment gains and losses to results of operations. Investments traditionally are our primary source of pretax and after-tax profits.

Investment Income
Pretax investment income grew 14% for the third quarter and 15% for the first nine months of 2025, compared with the same periods of 2024. Interest income increased by $40 million and $122 million for the three and nine months ended September 30, 2025, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rate environment for several years prior to 2022. Dividend income increased by $1 million for the third quarter and decreased by $3 million for the first nine months of 2025. The decrease for the first nine months of 2025 was primarily due to the unfavorable effect on dividend income from net sales of equity securities during the second half of 2024. That effect was partially offset by net purchases of equity securities during the first nine months of 2025 and dividend rates that have generally been increasing, although more slowly in recent quarters.

Investments Results

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Total investment income, net of expenses $ 295   $ 258  14  $ 860   $ 745  15 
Investment interest credited to contract holders (32) (32) 0  (95) (94) (1)
Investment gains and losses, net 853   758  13  1,259   1,507  (16)
Investments profit, pretax $ 1,116   $ 984  13  $ 2,024   $ 2,158  (6)

We continue to consider the low interest rate environment that prevailed for several years prior to 2022 as well as the potential for a continuation of both elevated inflation and higher bond yields as we position our portfolio. As bonds in our generally laddered portfolio mature or are called over the near term, we will reinvest with a balanced approach, keeping in mind our long-term strategy and pursuing attractive risk-adjusted after-tax yields. The table below shows the average pretax yield-to-amortized cost associated with expected principal redemptions for our fixed-maturity portfolio. The expected principal redemptions are based on par amounts and include dated maturities, calls and prefunded municipal bonds that we expect will be called during each respective time period.

(Dollars in millions) % Yield Principal redemptions
At September 30, 2025
Fixed-maturity pretax yield profile:
Expected to mature during the remainder of 2025 4.85  % $ 269 
Expected to mature during 2026 4.82  997 
Expected to mature during 2027 5.20  1,027 
Average yield and total expected maturities from the remainder of 2025 through 2027 5.00  $ 2,293 

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The table below shows the average pretax yield-to-amortized cost for fixed-maturity securities acquired during the periods indicated. The average yield for total fixed-maturity securities acquired during the first nine months of 2025 was higher than the 5.06% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2024. Our fixed-maturity portfolio's average yield of 4.96% for the first nine months of 2025, from the investment income table below, was lower than the 5.06% yield for the year-end 2024 fixed-maturities portfolio.

Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
Average pretax yield-to-amortized cost on new fixed-maturities:
Acquired taxable fixed-maturities 5.63   % 5.63  % 5.81   % 5.81  %
Acquired tax-exempt fixed-maturities 4.83   4.09  4.75   4.12 
Average total fixed-maturities acquired 5.52   5.53  5.69   5.68 

While our bond portfolio more than covers our insurance reserve liabilities, we believe our diversified common stock portfolio of mainly blue chip, dividend-paying companies represents one of our best investment opportunities for the long term. We discussed our portfolio strategies in our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21, and Item 7, Investments Outlook, Page 89. We discuss risks related to our investment income and our fixed-maturity and equity investment portfolios in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.

The table below provides details about investment income. Average yields in this table are based on the average invested asset and cash amounts indicated in the table, using fixed-maturity securities valued at amortized cost and all other securities at fair value.

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Investment income:            
Interest $ 227   $ 187  21  $ 651   $ 529  23 
Dividends 69   68  1  206   209  (1)
Other 4   7  (43) 16   18  (11)
Less investment expenses 5   4  25  13   11  18 
Investment income, pretax 295   258  14  860   745  15 
Less income taxes
51   44  16  148   125  18 
Total investment income, after-tax $ 244   $ 214  14  $ 712   $ 620  15 

Investment returns:
Average invested assets plus cash and cash
  equivalents $ 31,899   $ 29,107  $ 31,345   $ 28,447 
Average yield pretax 3.70   % 3.55  % 3.66   % 3.49  %
Average yield after-tax 3.06   2.94  3.03   2.91 
Effective tax rate 17.3   16.9  17.2   16.8 

Fixed-maturity returns:
Average amortized cost $ 17,816   $ 15,592  $ 17,515   $ 15,218 
Average yield pretax 5.10   % 4.80  % 4.96   % 4.63  %
Average yield after-tax 4.16   3.93  4.04   3.80 
Effective tax rate 18.4   18.1  18.4   18.0 

 
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Total Investment Gains and Losses
Investment gains and losses are recognized on the sale of investments, for certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP. The change in fair value for equity securities still held is included in investment gains and losses and also in net income. The change in unrealized gains or losses for fixed-maturity securities is included as a component of other comprehensive income (OCI). Accounting requirements for the allowance for credit losses for the fixed-maturity portfolio are disclosed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128.
 
The table below summarizes total investment gains and losses, before taxes.

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
Investment gains and losses:
Equity securities:
Investment gains and losses on securities sold, net $ (9) $ 24  $ (5) $ 146 
Unrealized gains and losses on securities still held, net 855   817  1,259   1,446 

Subtotal 846   841  1,254   1,592 
Fixed maturities:
Gross realized gains 2   1  3   5 
Gross realized losses (1) (87) (1) (94)
Change in allowance for credit losses, net —   —  (15) (25)

Subtotal 1   (86) (13) (114)
Other 6   3  18   29 
Total investment gains and losses reported in net income 853   758  1,259   1,507 

Change in unrealized investment gains and losses:

Fixed maturities 241   497  336   367 

Total $ 1,094   $ 1,255  $ 1,595   $ 1,874 

Of the 5,331 fixed-maturity and short-term securities in the portfolio, 17 securities were trading below 70% of amortized cost at September 30, 2025. Our asset impairment committee regularly monitors the portfolio, including a quarterly review of the entire portfolio for potential credit losses. We believe that if liquidity in the markets were to significantly deteriorate or economic conditions were to significantly weaken, we could experience declines in portfolio values and possibly increases in the allowance for credit losses or write-downs to fair value.

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OTHER
We report as Other the noninvestment operations of the parent company and a noninsurance subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global, including earned premiums, loss and loss expenses and underwriting expenses in the table below.

Total revenues for the first nine months of 2025 for our Other operations increased, compared with the same period of 2024, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $33 million and $28 million, respectively. Cincinnati Re had $444 million of earned premiums for the first nine months of 2025 and generated an underwriting loss of $10 million, including an unfavorable impact of $103 million of net catastrophe losses from the January 2025 wildfires in southern California. Cincinnati Global had $231 million of earned premiums for the first nine months of 2025 and generated an underwriting profit of $55 million. Total expenses for Other increased for the first nine months of 2025, primarily due to higher loss and loss expenses from Cincinnati Re and Cincinnati Global.

Other income (loss) in the table below represents profit before income taxes. For the first nine months of 2025, total other loss resulted from an underwriting loss from Cincinnati Re and interest expense from debt of the parent company. For the first nine months of 2024, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Interest and fees on loans and leases $ 3   $ 3  0  $ 8   $ 7  14 
Earned premiums 243   245  (1) 675   614  10 
Other revenues 3   —  nm 7   3  133 
Total revenues 249   248  0  690   624  11 
Interest expense 13   13  0  40   40  0 
Loss and loss expenses 102   133  (23) 421   290  45 
Underwriting expenses 77   70  10  209   180  16 
Operating expenses 6   6  0  27   19  42 
Total expenses 198   222  (11) 697   529  32 
 Total other income (loss) $ 51   $ 26  96  $ (7) $ 95  nm

 

TAXES
We had $291 million and $423 million of income tax expense for the three and nine months ended September 30, 2025, compared with $220 million and $492 million of income tax expense for the same periods of 2024. The effective tax rate for the three and nine months ended September 30, 2025, was 20.6% and 19.8% compared with 21.2% and 20.7% for the same periods last year. The change in our effective tax rate between periods was primarily due to large changes in our net investment gains and losses included in income for the periods and changes in underwriting income and investment income.

Historically, we have pursued a strategy of investing some portion of cash flow in tax-advantaged, fixed-maturity and equity securities to minimize our overall tax liability and maximize after-tax earnings. See Tax-Exempt Fixed Maturities in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk for further discussion on municipal bond purchases in our fixed-maturity investment portfolio. For tax years after 2017, for our property casualty insurance subsidiaries, approximately 75% of interest from tax-advantaged, fixed-maturity investments and approximately 40% of dividends from qualified equities are exempt from federal tax after applying proration. For our noninsurance companies, the dividend received deduction exempts 50% of dividends from qualified equities. Our life insurance company does not own tax-advantaged, fixed-maturity investments or equities subject to the dividend received deduction. Details about our effective tax rate are in this quarterly report Item 1, Note 9, Income Taxes.

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LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2025, shareholders' equity was $15.406 billion, compared with $13.935 billion at December 31, 2024. Total debt was $815 million at September 30, 2025, unchanged from December 31, 2024. At September 30, 2025, cash and cash equivalents totaled $1.460 billion, compared with $983 million at December 31, 2024.

In addition to our historically positive operating cash flow to meet the needs of operations, we have the ability to slow investing activities or sell a portion of our high-quality, liquid investment portfolio if such need arises. We also have additional capacity to borrow on our revolving short-term line of credit, as described further below.

SOURCES OF LIQUIDITY
 
Subsidiary Dividends
Our lead insurance subsidiary declared dividends of $350 million to the parent company in the first nine months of 2025, compared with $290 million for the same period of 2024. For full-year 2024, our lead insurance subsidiary paid dividends totaling $290 million to the parent company. State of Ohio regulatory requirements restrict the dividends our insurance subsidiary can pay. For full-year 2025, total dividends that our insurance subsidiary can pay to our parent company without regulatory approval are approximately $1.245 billion.
 
Investing Activities
Investment income is a source of liquidity for both the parent company and its insurance subsidiaries. We continue to focus on portfolio strategies to balance near-term income generation and long-term book value growth.
 
Parent company obligations can be funded with income on investments held at the parent-company level or through sales of securities in that portfolio, although our investment philosophy seeks to compound cash flows over the long term. These sources of capital can help minimize subsidiary dividends to the parent company, protecting insurance subsidiary capital.

For a discussion of our historic investment strategy, portfolio allocation and quality, see our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21.
 
Insurance Underwriting
Our property casualty and life insurance underwriting operations provide liquidity because we generally receive premiums before paying losses under the policies purchased with those premiums. After satisfying our cash requirements, we invest excess cash flows, increasing future investment income.
 
Historically, cash receipts from property casualty and life insurance premiums, along with investment income, have been more than sufficient to pay claims, operating expenses and dividends to the parent company.
 
The table below shows a summary of the operating cash flow for property casualty insurance (direct method):

(Dollars in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 % Change 2025 2024 % Change
Premiums collected $ 2,626   $ 2,343  12  $ 7,369   $ 6,593  12 
Loss and loss expenses paid (1,217) (1,114) (9) (3,862) (3,218) (20)
Commissions and other underwriting expenses paid (634) (585) (8) (2,226) (2,008) (11)
Cash flow from underwriting 775   644  20  1,281   1,367  (6)
Investment income received 217   192  13  630   533  18 
Cash flow from operations $ 992   $ 836  19  $ 1,911   $ 1,900  1 

 
Collected premiums for property casualty insurance rose $776 million during the first nine months of 2025, compared with the same period in 2024. Loss and loss expenses paid for the 2025 period increased $644 million. Commissions and other underwriting expenses paid increased $218 million.
 
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We discuss our future obligations for claims payments and for underwriting expenses in our 2024 Annual Report on Form 10-K, Item 7, Obligations, Page 95.
 
Capital Resources
At September 30, 2025, our debt-to-total-capital ratio was 5.0%, considerably below our 35% covenant threshold, with $790 million in long-term debt and $25  million in borrowing on our revolving short-term line of credit. At September 30, 2025, $275 million was available for future cash management needs as part of the general provisions of the line of credit agreement, with another $300 million available as part of an accordion feature. Based on our capital requirements at September 30, 2025, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year. As a result, we expect changes in our debt-to-total-capital ratio to continue to be largely a function of the contribution of unrealized investment gains or losses to shareholders' equity. During 2024, we terminated our unsecured letter of credit agreement, which provided a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's. We replaced the letter of credit agreement with common equities, bringing total common equities held in Lloyd's trust accounts to $235 million.

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. The debt-to-total-capital ratio covenant threshold remains at 35%. Current borrowings under the credit agreement were $25 million on October 10, 2025.

We provide details of our three long-term notes in this quarterly report Item 1, Note 3, Fair Value Measurements. None of the notes are encumbered by rating triggers.
 
Four independent ratings firms award insurer financial strength ratings to our property casualty insurance companies and three firms rate our life insurance company. On September 3, 2025, Fitch Ratings changed our parent company debt rating to A from A-. No additional changes to our parent company debt ratings occurred during the first nine months of 2025. Our debt ratings are discussed in our 2024 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, Long-Term Debt, Page 94.
 
Off-Balance Sheet Arrangements
We do not use any special-purpose financing vehicles or have any undisclosed off-balance sheet arrangements (as that term is defined in applicable SEC rules) that are reasonably likely to have a current or future material effect on the company's financial condition, results of operation, liquidity, capital expenditures or capital resources. Similarly, the company holds no fair-value contracts for which a lack of marketplace quotations would necessitate the use of fair-value techniques.
 
USES OF LIQUIDITY
Our parent company and insurance subsidiary have contractual obligations and other commitments. In addition, one of our primary uses of cash is to enhance shareholder return.
 
Contractual Obligations
We estimated our future contractual obligations as of December 31, 2024, in our 2024 Annual Report on Form 10-K, Item 7, Contractual Obligations, Page 95. There have been no material changes to our estimates of future contractual obligations since our 2024 Annual Report on Form 10-K.

Other Commitments
In addition to our contractual obligations, we have other property casualty operational commitments:
• Commissions – Commissions paid were $1.469 billion in the first nine months of 2025. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year.
• Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $757 million in the first nine months of 2025.
There were no contributions to our qualified pension plan during the first nine months of 2025.
 
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Investing Activities
After fulfilling operating requirements, we invest cash flows from underwriting, investment and other corporate activities in fixed-maturity and equity securities on an ongoing basis to help achieve our portfolio objectives. We discuss our investment strategy and certain portfolio attributes in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.
 
Uses of Capital
Uses of cash to enhance shareholder return include dividends to shareholders and shares acquired under our repurchase program. In January, May and August 2025, the board of directors declared regular quarterly cash dividends of 87 cents per share for an indicated annual rate of $3.48 per share. During the first nine months of 2025, we used $392 million to pay cash dividends to shareholders.

PROPERTY CASUALTY INSURANCE LOSS AND LOSS EXPENSE RESERVES
For the business lines in the commercial and personal lines insurance segments, and in total for the excess and surplus lines insurance segment and other property casualty insurance operations, the following table details gross reserves among case, IBNR (incurred but not reported) and loss expense reserves, net of salvage and subrogation reserves. Reserving practices are discussed in our 2024 Annual Report on Form 10-K, Item 7, Property Casualty Loss and Loss Expense Obligations and Reserves, Page 96.
 
Total gross reserves at September 30, 2025, increased $1.258 billion compared with December 31, 2024. Case loss reserves increased by $237 million, IBNR loss reserves increased by $801 million and loss expense reserves increased by $220 million. The total gross increase was primarily due to our commercial casualty and homeowner lines of business, excess and surplus lines insurance segment and Cincinnati Re.

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Property Casualty Gross Reserves

(Dollars in millions) Loss reserves Loss expense reserves Total gross reserves  
Case reserves IBNR reserves Percent of total
At September 30, 2025
Commercial lines insurance:          
Commercial casualty $ 1,206   $ 1,682   $ 869   $ 3,757   33.6   %
Commercial property 224   235   104   563   5.0  
Commercial auto 433   441   178   1,052   9.4  
Workers' compensation 378   579   101   1,058   9.5  
Other commercial 168   71   168   407   3.6  
Subtotal 2,409   3,008   1,420   6,837   61.1  
Personal lines insurance:          
Personal auto 283   154   125   562   5.0  
Homeowner 353   263   117   733   6.5  
Other personal 107   236   10   353   3.2  
Subtotal 743   653   252   1,648   14.7  
Excess and surplus lines 401   520   332   1,253   11.2  
Cincinnati Re 225   992   8   1,225   10.9  
Cincinnati Global 113   115   4   232   2.1  
Total $ 3,891   $ 5,288   $ 2,016   $ 11,195   100.0   %
At December 31, 2024          
Commercial lines insurance:          
Commercial casualty $ 1,121  $ 1,498  $ 824  $ 3,443  34.7  %
Commercial property 251  199  90  540  5.4 
Commercial auto 423  355  159  937  9.4 
Workers' compensation 389  564  89  1,042  10.5 
Other commercial 159  45  137  341  3.4 
Subtotal 2,343  2,661  1,299  6,303  63.4 
Personal lines insurance:          
Personal auto 260  106  100  466  4.7 
Homeowner 244  134  88  466  4.7 
Other personal 102  166  9  277  2.8 
Subtotal 606  406  197  1,209  12.2 
Excess and surplus lines 395  425  289  1,109  11.2 
Cincinnati Re 191  880  8  1,079  10.8 
Cincinnati Global 119  115  3  237  2.4 
Total $ 3,654  $ 4,487  $ 1,796  $ 9,937  100.0  %

 

LIFE POLICY AND INVESTMENT CONTRACT RESERVES
Gross life policy and investment contract reserves were $3.003 billion at September 30, 2025, compared with $2.960 billion at year-end 2024. Details about these reserves are in this quarterly report Item 1, Note 5, Life Policy and Investment Contract Reserves. We discussed our life insurance reserving practices in our 2024 Annual Report on Form 10-K, Item 7, Life Insurance Policyholder Obligations and Reserves, Page 102.
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OTHER MATTERS
 
SIGNIFICANT ACCOUNTING POLICIES
Our significant accounting policies are discussed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128, and updated in this quarterly report Item 1, Note 1, Accounting Policies.
 
In conjunction with those discussions, in the Management's Discussion and Analysis in the 2024 Annual Report on Form 10-K, management reviewed the estimates and assumptions used to develop reported amounts related to the most significant policies. Management discussed the development and selection of those accounting estimates with the audit committee of the board of directors.
 

Item 3.    Quantitative and Qualitative Disclosures About Market Risk
Our greatest exposure to market risk is through our investment portfolio. Market risk is the potential for a decrease in securities' fair value resulting from broad yet uncontrollable forces such as: inflation, economic growth or recession, interest rates, world political conditions or other widespread unpredictable events. It is comprised of many individual risks that, when combined, create a macroeconomic impact.
 
Our view of potential risks and our sensitivity to such risks is discussed in our 2024 Annual Report on Form 10-K, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, Page 112.
 
The fair value of our investment portfolio was $30.326 billion at September 30, 2025, up $2.661 billion from year-end 2024, including a $1.448 billion increase in the fixed-maturity portfolio, a $1.362 billion increase in the equity portfolio and a $149 million decrease in short-term investments.

(Dollars in millions) At September 30, 2025 At December 31, 2024
Cost or 
amortized cost Percent 
of total Fair value Percent 
of total Cost or 
amortized cost Percent of total Fair value Percent
of total
Taxable fixed maturities $ 13,708   61.8   % $ 13,593   44.8   % $ 12,668  60.4  % $ 12,243  44.2  %
Tax-exempt fixed maturities 4,139   18.7   4,037   13.3   4,067  19.4  3,939  14.2 
Common equities 3,779   17.1   12,209   40.3   3,568  17.0  10,836  39.2 
Nonredeemable preferred
  equities 375   1.7   338   1.1   385  1.8  349  1.3 
Short-term investments 149   0.7   149   0.5   298  1.4  298  1.1 
Total $ 22,150   100.0   % $ 30,326   100.0   % $ 20,986  100.0  % $ 27,665  100.0  %

At September 30, 2025, substantially all of our consolidated investment portfolio, measured at fair value, is classified as Level 1 or Level 2. See Item 1, Note 3, Fair Value Measurements, for additional discussion of our valuation techniques.
 
In addition to our investment portfolio, the total investments amount reported in our condensed consolidated balance sheets includes Other invested assets. Other invested assets included $623 million of private equity investments, $99 million of real estate through direct property ownership and development projects in the United States, $37 million of life policy loans and $14 million in Lloyd's deposit at September 30, 2025.
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FIXED-MATURITY SECURITIES INVESTMENTS
By maintaining a well-diversified fixed-maturity portfolio, we attempt to reduce overall risk. We invest new money in the bond market on a regular basis, targeting what we believe to be optimal risk-adjusted, after-tax yields. Risk, in this context, includes interest rate, call, reinvestment rate, credit and liquidity risk. We do not make a concerted effort to alter duration on a portfolio basis in response to anticipated movements in interest rates. By regularly investing in the bond market, we build a broad, diversified portfolio that we believe mitigates the impact of adverse economic factors.

In the first nine months of 2025, the increase in fair value of our fixed-maturity portfolio was due to net purchases of securities, plus a decrease in our net unrealized loss position that reflected a decrease in U.S. Treasury yields and a slight tightening of corporate credit spreads. At September 30, 2025, our fixed-maturity portfolio with an average rating of A2/A+ was valued at 98.8% of its amortized cost, compared with 96.7% at December 31, 2024.
 
At September 30, 2025, our investment-grade fixed-maturity securities represented 97.4% of the portfolio based on ratings provided by nationally recognized statistical rating organizations or the Securities Valuation Office of the National Association of Insurance Commissioners.

Attributes of the fixed-maturity portfolio include:

At September 30, 2025 At December 31, 2024
Weighted average yield-to-amortized cost 5.10   % 5.06  %
Weighted average maturity 10.9 yrs 10.2 yrs
Effective duration 5.6 yrs 5.0 yrs

 
We discuss maturities of our fixed-maturity portfolio in our 2024 Annual Report on Form 10-K, Item 8, Note 2, Investments, Page 135, and in this quarterly report Item 2, Investments Results.

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TAXABLE FIXED MATURITIES
Our taxable fixed-maturity portfolio, with a fair value of $13.593 billion at September 30, 2025, included:

(Dollars in millions) At September 30, 2025 At December 31, 2024
Investment-grade corporate $ 9,140   $ 8,070 
Government-sponsored enterprises 2,346   2,274 
States, municipalities and political subdivisions 809   782 
Asset-backed 778   551 
United States government 274   226 
Noninvestment-grade corporate 223   310 
Foreign government 23   30 

Total $ 13,593   $ 12,243 

 
Our strategy is to buy, and typically hold, fixed-maturity investments to maturity, but we monitor credit profiles and fair value movements when determining holding periods for individual securities. With the exception of United States agency issues that include government-sponsored enterprises, no individual issuer's securities accounted for more than 0.8% of the taxable fixed-maturity portfolio at September 30, 2025. Our investment-grade corporate bonds had an average rating of Baa1 by Moody's or BBB+ by S&P Global Ratings and represented 67.2% of the taxable fixed-maturity portfolio's fair value at September 30, 2025, compared with 65.9% at year-end 2024.
 
The heaviest concentration in our investment-grade corporate bond portfolio, based on fair value at
September 30, 2025, was the financial sector. It represented 30.3% of our investment-grade corporate bond portfolio, compared with 33.8% at year-end 2024. The utility and energy sectors represented 13.4% and 11.0%, compared with 13.0% and 10.6%, respectively, at year-end 2024. No other sector exceeded 10% of our investment-grade corporate bond portfolio.

As discussed in our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30, investments in the financial sector include various risks. See risk factors entitled “Financial disruption or a prolonged economic downturn could affect our investment performance” and “Our ability to achieve our performance objectives could be affected by changes in the financial, credit and capital markets or the general economy.”

Our taxable fixed-maturity portfolio at September 30, 2025, included $778 million of asset-backed securities at fair value with an average rating of Aa2/AA.

TAX-EXEMPT FIXED MATURITIES
At September 30, 2025, we had $4.037 billion of tax-exempt fixed-maturity securities at fair value with an average rating of Aa2/AA by Moody's and S&P Global Ratings. We traditionally have purchased municipal bonds focusing on general obligation and essential services issues, such as water, waste disposal or others. The portfolio is well diversified among approximately 1,900 municipal bond issuers. No single municipal issuer accounted for more than 0.6% of the tax-exempt fixed-maturity portfolio at September 30, 2025.

INTEREST RATE SENSITIVITY ANALYSIS
Because of our strong surplus, long-term investment horizon and ability to hold most fixed-maturity investments until maturity, we believe the company is adequately positioned if interest rates were to rise. Although the fair values of our existing holdings may suffer, a higher rate environment would provide the opportunity to invest cash flow in higher-yielding securities, while reducing the likelihood of untimely redemptions of currently callable securities. While higher interest rates would be expected to continue to increase the number of fixed-maturity holdings trading below 100% of amortized cost, we believe lower fixed-maturity security values due solely to interest rate changes would not signal a decline in credit quality. We continue to manage the portfolio with an eye toward both meeting current income needs and managing interest rate risk.
 
Our dynamic financial planning model uses analytical tools to assess market risks. As part of this model, the effective duration of the fixed-maturity portfolio is continually monitored by our investment department to evaluate the theoretical impact of interest rate movements.
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The table below summarizes the effect of hypothetical changes in interest rates on the fair value of the fixed-maturity portfolio:

(Dollars in millions) Effect from interest rate change in basis points
-200  -100 — 100 200
At September 30, 2025 $ 19,606   $ 18,610   $ 17,630   $ 16,563   $ 15,495  
At December 31, 2024 $ 17,750  $ 16,967  $ 16,182  $ 15,317  $ 14,433 

 
The effective duration of the fixed-maturity portfolio as of September 30, 2025, was 5.6 years, up from 5.0 years at year-end 2024. The above table is a theoretical presentation showing that an instantaneous, parallel shift in the yield curve of 100 basis points could produce an approximately 5.8% change in the fair value of the fixed-maturity portfolio. Generally speaking, the higher a bond is rated, the more directly correlated movements in its fair value are to changes in the general level of interest rates, exclusive of call features. The fair values of average- to lower-rated corporate bonds are additionally influenced by the expansion or contraction of credit spreads.
 
In our dynamic financial planning model, the selected interest rate change of 100 to 200 basis points represents our view of a shift in rates that is quite possible over a one-year period. The rates modeled should not be considered a prediction of future events as interest rates may be much more volatile in the future. The analysis is not intended to provide a precise forecast of the effect of changes in rates on our results or financial condition, nor does it take into account any actions that we might take to reduce exposure to such risks.

SHORT-TERM INVESTMENTS
Our short-term investments consist of commercial paper purchased within one year of maturity. We make short-term investments primarily with funds to be used to make upcoming cash payments, such as dividends, taxes or other corporate purposes. At September 30, 2025, we had $149 million of short-term investments.

EQUITY INVESTMENTS
Our equity investments, with a fair value totaling $12.547 billion at September 30, 2025, included $12.209 billion of common stock securities of companies generally with strong indications of paying and growing their dividends. Other criteria we evaluate include increasing sales and earnings, proven management and a favorable outlook. We believe our equity investment style is an appropriate long-term strategy. While our long-term financial position would be affected by prolonged changes in the market valuation of our investments, we believe our strong surplus position and cash flow provide a cushion against short-term fluctuations in valuation. Continued payment of cash dividends by the issuers of our common equity holdings can provide a floor to their valuation.

The table below summarizes the effect of hypothetical changes in market prices on fair value of our equity portfolio.

(Dollars in millions) Effect from market price change in percent
  -30% -20% -10% — 10% 20% 30%
At September 30, 2025 $ 8,783   $ 10,038   $ 11,292   $ 12,547   $ 13,802   $ 15,056   $ 16,311  
At December 31, 2024 $ 7,830  $ 8,948  $ 10,067  $ 11,185  $ 12,304  $ 13,422  $ 14,541 

At September 30, 2025, Microsoft (Nasdaq:MSFT) was our largest single common stock holding with a fair value of $940 million, or 7.7% of our publicly traded common stock portfolio and 3.1% of the total investment portfolio. Forty-two holdings (among nine different sectors) each had a fair value greater than $100 million. 
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Common Stock Portfolio Industry Sector Distribution

  Percent of common stock portfolio
  At September 30, 2025 At December 31, 2024
Cincinnati
 Financial S&P 500 Industry
Weightings Cincinnati
Financial S&P 500 Industry
Weightings
Sector:        
Information technology 33.9   % 34.8   % 32.6  % 32.5  %
Industrials 14.1   8.3   14.3  8.2 
Financial 13.4   13.6   12.4  13.6 
Healthcare 10.2   8.9   10.8  10.1 
Consumer discretionary 7.5   10.5   7.6  11.2 
Consumer staples 6.6   4.9   6.9  5.5 
Energy 4.3   2.9   4.2  3.2 
Materials 3.8   1.8   4.7  1.9 
Utilities 3.1   2.3   3.1  2.3 
Real estate 1.9   1.9   2.1  2.1 
Communication services 1.2   10.1   1.3  9.4 
Total 100.0   % 100.0   % 100.0  % 100.0  %

 

UNREALIZED INVESTMENT GAINS AND LOSSES
At September 30, 2025, unrealized investment gains before taxes for the fixed-maturity portfolio totaled $212 million and unrealized investment losses amounted to $429 million before taxes.
 
The $217 million net unrealized loss position in our fixed-maturity portfolio at September 30, 2025, decreased in the first nine months of 2025, primarily due to a decrease in U.S. Treasury yields and a slight tightening of corporate credit spreads. The net loss position for our current fixed-maturity holdings will naturally decline over time as individual securities approach maturity. In addition, changes in interest rates can cause rapid, significant changes in fair values of fixed-maturity securities and the net loss position, as discussed in Quantitative and Qualitative Disclosures About Market Risk.

For federal income tax purposes, taxes on gains from appreciated investments generally are not due until securities are sold. We believe that the appreciated value of equity securities, compared with the cost of securities that is generally used as a tax basis, is a useful measure to help evaluate how fair value can change over time. On this basis, the net unrealized investment gains at September 30, 2025, consisted of a net gain position in our equity portfolio of $8.393 billion. Events or factors such as economic growth or recession can affect the fair value and unrealized investment gains of our equity securities. The five largest holdings in our common stock portfolio at September 30, 2025, were Microsoft, Apple (Nasdaq:AAPL), Broadcom Inc. (Nasdaq:AVGO), JPMorgan Chase & Co (NYSE:JPM), and Abbvie Inc. (NYSE:ABBV), which had a combined fair value of $3.652 billion.

Unrealized Investment Losses
We expect the number of fixed-maturity securities trading below amortized cost to fluctuate as interest rates rise or fall and credit spreads expand or contract due to prevailing economic conditions. Further, amortized costs for some securities are revised through write-downs recognized in prior periods. At September 30, 2025, 2,831 of the 5,331 fixed-maturity and short-term securities we owned had fair values below amortized cost, compared with 3,723 of the 5,090 securities we owned at year-end 2024. The 2,831 holdings with fair values below amortized cost at September 30, 2025, represented 46.5% of the fair value of our fixed-maturity and short-term investments portfolio and $429 million in unrealized losses.
• 2,137 of the 2,831 holdings had fair value between 90% and 100% of amortized cost at September 30, 2025. These primarily consist of securities whose current valuation is largely the result of interest rate factors. The fair value of these 2,137 securities was $7.055 billion, and they accounted for $156 million in unrealized losses.
• 677 of the 2,831 holdings had fair value between 70% and 90% of amortized cost at September 30, 2025. We believe the 677 securities will continue to pay interest and ultimately pay principal upon maturity.
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The issuers of these 677 securities have strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of these securities was $1.192 billion, and they accounted for $257 million in unrealized losses.
• 17 of the 2,831 holdings had fair value below 70% of amortized cost at September 30, 2025. We believe these securities will continue to pay interest and ultimately pay principal upon maturity. The fair value of these securities was $27 million, and they accounted for $16 million in unrealized losses.

The table below reviews fair values and unrealized losses by investment category and by the overall duration of the securities' continuous unrealized loss position.

(Dollars in millions) Less than 12 months 12 months or more Total
At September 30, 2025 Fair value Unrealized
 losses Fair value Unrealized
 losses Fair
 value Unrealized
 losses
Fixed-maturity:            
Corporate $ 793   $ 14   $ 2,887   $ 179   $ 3,680   $ 193  
States, municipalities and political subdivisions 873   20   2,019   201   2,892   221  
Government-sponsored enterprises 922   3   488   2   1,410   5  
Asset-backed 173   4   91   5   264   9  
United States government —   —   27   1   27   1  
Foreign government 1   —   —   —   1   —  
Total fixed-maturity 2,762   41   5,512   388   8,274   429  

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 

 
At September 30, 2025, applying our invested asset impairment policy, we determined that the total of $429 million, for securities in an unrealized loss position in the table above, was not the result of a credit loss.

During the first nine months of 2025, no fixed maturity securities were written down to fair value, due to an intention to be sold. The allowance for credit losses increased $15 million during the first nine months of 2025. During the first nine months of 2024, no fixed maturity securities were written down to fair value, due to an intention to be sold. The increase in the allowance for credit losses was $25 million during the first nine months of 2024.

During the full year of 2024, no securities were written down to fair value. At December 31, 2024, 3,723 fixed-maturity and short-term securities with a total unrealized loss of $631 million were in an unrealized loss position. Of that total, 19 securities had fair values below 70% of amortized cost.

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The following table summarizes the investment portfolio by severity of decline:

(Dollars in millions) Number
of issues Amortized
cost Fair value Gross unrealized 
gain (loss) Gross investment income
At September 30, 2025
Taxable fixed maturities:
Fair valued below 70% of amortized cost 6  $ 27  $ 17  $ (10) $ 1 
Fair valued at 70% to less than 100% of amortized cost 1,373  6,331  6,035  (296) 215 
Fair valued at 100% and above of amortized cost 1,365  7,350  7,541  191  266 
Investment income on securities sold in current year —  —  —  —  58 
Total 2,744  13,708  13,593  (115) 540 
Tax-exempt fixed maturities:          
Fair valued below 70% of amortized cost 11  16  10  (6) — 
Fair valued at 70% to less than 100% of amortized cost 1,441  2,329  2,212  (117) 58 
Fair valued at 100% and above of amortized cost 1,134  1,794  1,815  21  44 
Investment income on securities sold in current year —  —  —  —  5 
Total 2,586  4,139  4,037  (102) 107 
Fixed-maturities summary:          
Fair valued below 70% of amortized cost 17  43  27  (16) 1 
Fair valued at 70% to less than 100% of amortized cost 2,814  8,660  8,247  (413) 273 
Fair valued at 100% and above of amortized cost 2,499  9,144  9,356  212  310 
Investment income on securities sold in current year —  —  —  —  63 
Total 5,330  17,847  17,630  (217) 647 
Short-term investments:          
Fair valued below 70% of cost —  —  —  —  — 
Fair valued at 70% to less than 100% of cost —  —  —  —  — 
Fair valued at 100% and above of cost 1  149  149  —  2 
Investment income on securities sold in current year —  —  —  —  3 
Total 1  149  149  —  5 

Fixed maturities and short-term investments summary:          
Fair valued below 70% of cost 17   43   27   (16) 1  
Fair valued at 70% to less than 100% of cost 2,814   8,660   8,247   (413) 273  
Fair valued at 100% and above of cost 2,500   9,293   9,505   212   312  
Investment income on securities sold in current year —   —   —   —   66  
Total 5,331   $ 17,996   $ 17,779   $ (217) $ 652  

At December 31, 2024          
Fixed maturities and short-term investments summary:          
Fair valued below 70% of amortized cost 19  $ 43  $ 28  $ (15) $ 2 
Fair valued at 70% to less than 100% of amortized cost 3,704  13,094  12,478  (616) 461 
Fair valued at 100% and above of amortized cost 1,367  3,896  3,974  78  184 
Investment income on securities sold in current year —  —  —  —  86 
Total 5,090  $ 17,033  $ 16,480  $ (553) $ 733 

 
See our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Asset Impairment, Page 56.

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Item 4.        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 September 30, 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
• that such information is accumulated and communicated to the company's management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures.
Changes in Internal Control over Financial Reporting – During the three months ended September 30, 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.

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Part II – Other Information

Item 1.    Legal Proceedings
Neither the company nor any of our subsidiaries are involved in any litigation believed to be material other than ordinary, routine litigation incidental to the nature of our business.

Item 1A.    Risk Factors
Our risk factors have not changed materially since they were described in our 2024 Annual Report on Form 10-K filed February 24, 2025. Investors should not interpret the disclosure of a risk to imply that the risk has not already materialized.

More recently, changes in international trade regulation or foreign trade policy, including tariffs, could lead to higher than anticipated inflation and supply chain disruption, which impacts personal and commercial insurance loss costs and premiums.
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Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
We did not sell any of our shares that were not registered under the Securities Act during the first nine months of 2025. Our repurchase program does not have an expiration date. On January 26, 2018, an additional 15 million shares were authorized, which expanded our current repurchase program. We have 4,911,006 shares available for purchase under our programs at September 30, 2025.

Period Total number
 of shares
 purchased Average
 price paid
 per share Total number of shares purchased as part of
publicly announced
plans or programs Maximum number of
shares that may yet be
purchased under the
plans or programs

July 1-31, 2025 —  —  —  5,314,506 
August 1-31, 2025 403,500  $ 149.75  403,500  4,911,006 
September 1-30, 2025 —  —  —  4,911,006 
Totals 403,500  149.75  403,500   

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Item 5.    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.

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Item 6.    Exhibits

Exhibit No. Exhibit Description
3.1 Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (as of May 29, 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)

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

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)

 
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SIGNATURE
Pursuant to the requirements 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
Date: October 27, 2025

/S/ Michael J. Sewell
Michael J. Sewell, CPA
Chief Financial Officer, Executive Vice President and Treasurer

(Principal Accounting Officer)

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