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10-Q – 2026-04-27 – cinf-20260331.htm
For a discussion of our historic investment strategy, portfolio allocation and quality, see our 2025 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 March 31, 2026 2025 % Change Premiums collected $ 2,481 $ 2,277 9 Loss and loss expenses paid (1,201) (1,399) 14 Commissions and other underwriting expenses paid (972) (924) (5) Cash flow from underwriting 308 (46) nm Investment income received 229 206 11 Cash flow from operations $ 537 $ 160 236 Collected premiums for property casualty insurance rose $204 million during the first three months of 2026, compared with the same period in 2025. Loss and loss expenses paid for the 2026 period decreased $198 million. Commissions and other underwriting expenses paid increased $48 million. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 55 Table of Contents We discuss our future obligations for claims payments and for underwriting expenses in our 2025 Annual Report on Form 10-K, Item 7, Obligations, Page 92. Capital Resources At March 31, 2026, our debt-to-total-capital ratio was 4.9%, considerably below our 35% covenant threshold, with $791 million in long-term debt and $25 million in borrowing on our revolving short-term line of credit. At March 31, 2026, $375 million was available for future cash management needs as part of the general provisions of the line of credit agreement. The line of credit also includes a $400 million accordion feature, a $400 million sublimit for letters of credit, and a $75 million sublimit for swing line loans. Based on our capital requirements at March 31, 2026, 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. We held common equities with a fair value of $228 million, in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations at March 31, 2026. 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. Those firms made no changes to our parent company debt ratings during the first three months of 2026. Our debt ratings are discussed in our 2025 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, Long-Term Debt, Page 91. 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, 2025, in our 2025 Annual Report on Form 10-K, Item 7, Contractual Obligations, Page 92. There have been no material changes to our estimates of future contractual obligations since our 2025 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 $710 million in the first three months of 2026. 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 $262 million in the first three months of 2026. There were no contributions to our qualified pension plan during the first three months of 2026. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 56 Table of Contents 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 2026, the board of directors declared regular quarterly cash dividends of 94 cents per share for an indicated annual rate of $3.76 per share. During the first three months of 2026, we used $133 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 2025 Annual Report on Form 10-K, Item 7, Property Casualty Loss and Loss Expense Obligations and Reserves, Page 93. Total gross reserves at March 31, 2026, increased $434 million compared with December 31, 2025. Case loss reserves increased by $24 million, IBNR loss reserves increased by $336 million and loss expense reserves increased by $74 million. The total gross increase was primarily due to our commercial casualty, commercial property, personal auto and homeowner lines of business and excess and surplus lines insurance segment. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 57 Table of Contents Property Casualty Gross Reserves (Dollars in millions) Loss reserves Loss expense reserves Total gross reserves Case reserves IBNR reserves Percent of total At March 31, 2026 Commercial lines insurance: Commercial casualty $ 1,209 $ 1,788 $ 925 $ 3,922 33.0 % Commercial property 216 290 114 620 5.2 Commercial auto 447 482 190 1,119 9.4 Workers' compensation 371 593 109 1,073 9.0 Other commercial 175 72 201 448 3.8 Subtotal 2,418 3,225 1,539 7,182 60.4 Personal lines insurance: Personal auto 321 182 141 644 5.4 Homeowner 350 298 137 785 6.6 Other personal 136 276 11 423 3.6 Subtotal 807 756 289 1,852 15.6 Excess and surplus lines 412 583 359 1,354 11.4 Cincinnati Re 225 1,014 10 1,249 10.5 Cincinnati Global 107 136 4 247 2.1 Total $ 3,969 $ 5,714 $ 2,201 $ 11,884 100.0 % At December 31, 2025 Commercial lines insurance: Commercial casualty $ 1,246 $ 1,736 $ 905 $ 3,887 34.0 % Commercial property 210 195 109 514 4.5 Commercial auto 448 455 185 1,088 9.5 Workers' compensation 369 595 101 1,065 9.3 Other commercial 172 73 193 438 3.8 Subtotal 2,445 3,054 1,493 6,992 61.1 Personal lines insurance: Personal auto 314 152 135 601 5.2 Homeowner 330 235 130 695 6.1 Other personal 120 259 10 389 3.4 Subtotal 764 646 275 1,685 14.7 Excess and surplus lines 407 544 348 1,299 11.4 Cincinnati Re 218 1,003 8 1,229 10.7 Cincinnati Global 111 131 3 245 2.1 Total $ 3,945 $ 5,378 $ 2,127 $ 11,450 100.0 % LIFE POLICY AND INVESTMENT CONTRACT RESERVES Gross life policy and investment contract reserves were $2.965 billion at March 31, 2026, compared with $2.992 billion at year-end 2025. 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 2025 Annual Report on Form 10-K, Item 7, Life Insurance Policyholder Obligations and Reserves, Page 99. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 58 Table of Contents OTHER MATTERS SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are discussed in our 2025 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 124, 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 2025 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 2025 Annual Report on Form 10-K, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, Page 109. The fair value of our investment portfolio was $31.163 billion at March 31, 2026, up $198 million from year-end 2025, including a $422 million increase in the fixed-maturity portfolio, a $125 million decrease in the equity portfolio and a $99 million decrease in short-term investments. (Dollars in millions) At March 31, 2026 At December 31, 2025 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 $ 14,765 63.0 % $ 14,469 46.4 % $ 14,134 62.5 % $ 14,010 45.2 % Tax-exempt fixed maturities 4,181 17.9 4,076 13.1 4,170 18.4 4,113 13.3 Common equities 4,071 17.4 12,260 39.3 3,792 16.8 12,373 40.0 Nonredeemable preferred equities 355 1.5 309 1.0 363 1.6 321 1.0 Short-term investments 49 0.2 49 0.2 148 0.7 148 0.5 Total $ 23,421 100.0 % $ 31,163 100.0 % $ 22,607 100.0 % $ 30,965 100.0 % At March 31, 2026, 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 $656 million of private equity investments, $128 million of real estate through direct property ownership and development projects in the United States, $39 million of life policy loans and $15 million in Lloyd's deposit at March 31, 2026. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 59 Table of Contents 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 three months of 2026, the increase in fair value of our fixed-maturity portfolio was due to net purchases of securities, partially offset by an increase in our net unrealized loss position that reflected an increase in U.S. Treasury yields and a widening of corporate credit spreads. At March 31, 2026, our fixed-maturity portfolio with an average rating of A2/A was valued at 97.9% of its amortized cost, compared with 99.0% at December 31, 2025. At March 31, 2026, our investment-grade fixed-maturity securities represented 98.1% 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 March 31, 2026 At December 31, 2025 Weighted average yield-to-amortized cost 5.13 % 5.11 % Weighted average maturity 11.4 yrs 10.9 yrs Effective duration 5.9 yrs 5.6 yrs We discuss maturities of our fixed-maturity portfolio in our 2025 Annual Report on Form 10-K, Item 8, Note 2, Investments, Page 131, and in this quarterly report Item 2, Investments Results. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 60 Table of Contents TAXABLE FIXED MATURITIES Our taxable fixed-maturity portfolio, with a fair value of $14.469 billion at March 31, 2026, included: (Dollars in millions) At March 31, 2026 At December 31, 2025 Investment-grade corporate $ 9,833 $ 9,505 Government-sponsored enterprises 2,511 2,359 States, municipalities and political subdivisions 798 806 Asset-backed 766 797 United States government 331 313 Noninvestment-grade corporate 202 206 Foreign government 28 24 Total $ 14,469 $ 14,010 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 0.9% of the taxable fixed-maturity portfolio at March 31, 2026. Our investment-grade corporate bonds had an average rating of Baa1 by Moody's or BBB+ by S&P Global Ratings and represented 68.0% of the taxable fixed-maturity portfolio's fair value at March 31, 2026, compared with 67.8% at year-end 2025. The heaviest concentration in our investment-grade corporate bond portfolio, based on fair value at March 31, 2026, was the financial sector. It represented 27.1% of our investment-grade corporate bond portfolio, compared with 28.8% at year-end 2025. The utility and energy sectors represented 13.6% and 11.4%, compared with 13.3% and 11.2%, respectively, at year-end 2025. No other sector exceeded 10% of our investment-grade corporate bond portfolio. As discussed in our 2025 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 March 31, 2026, included $766 million of asset-backed securities at fair value with an average rating of Aa2/AA. TAX-EXEMPT FIXED MATURITIES At March 31, 2026, we had $4.076 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 2,000 municipal bond issuers. No single municipal issuer accounted for more than 0.5% of the tax-exempt fixed-maturity portfolio at March 31, 2026. 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. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 61 Table of Contents 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 March 31, 2026 $ 20,742 $ 19,646 $ 18,545 $ 17,355 $ 16,192 At December 31, 2025 $ 20,177 $ 19,142 $ 18,123 $ 17,008 $ 15,891 The effective duration of the fixed-maturity portfolio as of March 31, 2026, was 5.9 years, up from 5.6 years at year-end 2025. 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 6.2% 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 March 31, 2026, we had $49 million of short-term investments. EQUITY INVESTMENTS Our equity investments, with a fair value totaling $12.569 billion at March 31, 2026, included $12.260 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 March 31, 2026 $ 8,798 $ 10,055 $ 11,312 $ 12,569 $ 13,826 $ 15,083 $ 16,340 At December 31, 2025 $ 8,886 $ 10,155 $ 11,425 $ 12,694 $ 13,963 $ 15,233 $ 16,502 At March 31, 2026, Apple Inc. (Nasdaq:AAPL) was our largest single common stock holding with a fair value of $881 million, or 7.2% of our publicly traded common stock portfolio and 2.8% of the total investment portfolio. Forty-six holdings (among ten different sectors) each had a fair value greater than $100 million. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 62 Table of Contents Common Stock Portfolio Sector Distribution Percent of common stock portfolio At March 31, 2026 At December 31, 2025 Cincinnati Financial S&P 500 Weightings Cincinnati Financial S&P 500 Weightings Sector: Information technology 30.9 % 32.9 % 35.4 % 34.4 % Industrials 15.0 9.0 14.4 8.2 Financial 13.4 12.6 13.0 13.4 Healthcare 9.8 9.5 10.0 9.6 Consumer discretionary 7.6 9.9 7.3 10.4 Consumer staples 6.8 5.3 6.5 4.7 Energy 5.8 4.0 4.2 2.8 Materials 3.9 2.1 3.3 1.8 Utilities 3.3 2.5 3.0 2.3 Real estate 2.2 1.9 1.9 1.8 Telecomm services 1.3 10.3 1.0 10.6 Total 100.0 % 100.0 % 100.0 % 100.0 % UNREALIZED INVESTMENT GAINS AND LOSSES At March 31, 2026, unrealized investment gains before taxes for the fixed-maturity portfolio totaled $131 million and unrealized investment losses amounted to $532 million before taxes. The $401 million net unrealized loss position in our fixed-maturity portfolio at March 31, 2026, increased in the first three months of 2026, primarily due to an increase in U.S. Treasury yields and a widening 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 March 31, 2026, consisted of a net gain position in our equity portfolio of $8.143 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 March 31, 2026, were Apple Inc., Microsoft Corp (Nasdaq:MSFT), Broadcom Inc. (Nasdaq:AVGO), JPMorgan Chase & Co (NYSE:JPM), and Lam Research Corporation (Nasdaq:LRCX), which had a combined fair value of $3.139 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 March 31, 2026, 3,356 of the 5,442 fixed-maturity and short-term securities we owned had fair values below amortized cost, compared with 2,597 of the 5,358 securities we owned at year-end 2025. The 3,356 holdings with fair values below amortized cost at March 31, 2026, represented 62.1% of the fair value of our fixed-maturity and short-term investments portfolio and $532 million in unrealized losses. • 2,628 of the 3,356 holdings had fair value between 90% and 100% of amortized cost at March 31, 2026. These primarily consist of securities whose current valuation is largely the result of interest rate factors. The fair value of these 2,628 securities was $10.223 billion, and they accounted for $241 million in unrealized losses. • 711 of the 3,356 holdings had fair value between 70% and 90% of amortized cost at March 31, 2026. We believe the 711 securities will continue to pay interest and ultimately pay principal upon maturity. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 63 Table of Contents The issuers of these 711 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 $1.299 billion, and they accounted for $277 million in unrealized losses. • 17 of the 3,356 holdings had fair value below 70% of amortized cost at March 31, 2026. We believe these securities will continue to pay interest and ultimately pay principal upon maturity. The fair value of these securities was $21 million, and they accounted for $14 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 March 31, 2026 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity: Corporate $ 3,031 $ 55 $ 2,767 $ 219 $ 5,798 $ 274 States, municipalities and political subdivisions 808 7 2,319 214 3,127 221 Government-sponsored enterprises 2,018 23 97 2 2,115 25 Asset-backed 157 3 185 7 342 10 United States government 126 1 20 1 146 2 Foreign government 15 — — — 15 — Total fixed-maturity $ 6,155 $ 89 $ 5,388 $ 443 $ 11,543 $ 532 At December 31, 2025 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 March 31, 2026, applying our invested asset impairment policy, we determined that the total of $532 million, for securities in an unrealized loss position in the table above, was not the result of a credit loss. During the first three months of 2026, no fixed maturity securities were written down to fair value, due to an intention to be sold. The allowance for credit losses decreased less than $1 million during the first three months of 2026. During the first three months of 2025, 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 $2 million during the first three months of 2025. During the full year of 2025, no securities were written down to fair value. At December 31, 2025, 2,597 fixed-maturity and short-term securities with a total unrealized loss of $397 million were in an unrealized loss position. Of that total, 13 securities had fair values below 70% of amortized cost. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 64 Table of Contents 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 March 31, 2026 Taxable fixed maturities: Fair valued below 70% of amortized cost 8 $ 23 $ 14 $ (9) $ — Fair valued at 70% to less than 100% of amortized cost 1,759 9,477 9,079 (398) 112 Fair valued at 100% and above of amortized cost 1,032 5,265 5,376 111 77 Investment income on securities sold in current year — — — — 7 Total 2,799 14,765 14,469 (296) 196 Tax-exempt fixed maturities: Fair valued below 70% of amortized cost 9 12 7 (5) — Fair valued at 70% to less than 100% of amortized cost 1,580 2,563 2,443 (120) 21 Fair valued at 100% and above of amortized cost 1,052 1,606 1,626 20 17 Investment income on securities sold in current year — — — — — Total 2,641 4,181 4,076 (105) 38 Fixed-maturities summary: Fair valued below 70% of amortized cost 17 35 21 (14) — Fair valued at 70% to less than 100% of amortized cost 3,339 12,040 11,522 (518) 133 Fair valued at 100% and above of amortized cost 2,084 6,871 7,002 131 94 Investment income on securities sold in current year — — — — 7 Total 5,440 18,946 18,545 (401) 234 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 2 49 49 — — Investment income on securities sold in current year — — — — 5 Total 2 49 49 — 5 Fixed maturities and short-term investments summary: Fair valued below 70% of cost 17 35 21 (14) — Fair valued at 70% to less than 100% of cost 3,339 12,040 11,522 (518) 133 Fair valued at 100% and above of cost 2,086 6,920 7,051 131 94 Investment income on securities sold in current year — — — — 12 Total 5,442 $ 18,995 $ 18,594 $ (401) $ 239 At December 31, 2025 Fixed maturities and short-term investments summary: Fair valued below 70% of amortized cost 13 $ 30 $ 17 $ (13) $ 1 Fair valued at 70% to less than 100% of amortized cost 2,584 8,244 7,860 (384) 311 Fair valued at 100% and above of amortized cost 2,761 10,178 10,394 216 440 Investment income on securities sold in current year — — — — 126 Total 5,358 $ 18,452 $ 18,271 $ (181) $ 878 See our 2025 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Asset Impairment, Page 54. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 65 Table of Contents 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 March 31, 2026. 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 March 31, 2026, 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. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 66 Table of Contents 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 2025 Annual Report on Form 10-K filed February 23, 2026. Investors should not interpret the disclosure of a risk to imply that the risk has not already materialized. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 67 Table of Contents 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 three months of 2026. 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 3,176,650 shares available for purchase under our programs at March 31, 2026. 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 January 1-31, 2026 — — — 4,260,268 February 1-28, 2026 — — — 4,260,268 March 1-31, 2026 1,083,618 $ 164.93 1,083,618 3,176,650 Totals 1,083,618 164.93 1,083,618 Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 68 Table of Contents 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. Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 69 Table of Contents Item 6. 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) 4.8 Description of Registered Securities (incorporated by reference to Exhibit 4.8 filed with the company’s registration statement on Form S-3 filed on April 22, 2026) 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) Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 70 Table of Contents 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: April 27, 2026 /S/ Michael J. Sewell Michael J. Sewell, CPA Chief Financial Officer, Executive Vice President and Treasurer (Principal Accounting Officer) Cincinnati Financial Corporation First-Quarter 2026 10-Q Page 71