10-Q – 2026-07-27 – cinf-20260630.htm

• Combined ratio – Our personal lines combined ratio for the second quarter of 2026 improved by 2.1 percentage points, compared with second-quarter 2025, including a decrease of 1.6 points in losses from catastrophes. The second-quarter 2026 combined ratio improvement also included an increase of 1.0 percentage points from current accident year loss and loss expenses before catastrophe losses, including an increase of 4.1 points for the IBNR portion and a decrease of 3.1 points for the case incurred portion. For the first six months of 2026, the combined ratio improved by 26.5 percentage points, compared with the same period a year ago, including a decrease of 20.5 points in losses from catastrophes. The six-month 2026 combined ratio improvement also included a decrease of 4.1 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 0.4 points in the IBNR portion and a decrease of 4.5 points for the case incurred portion. The total current accident year ratios before catastrophe losses were measured as of June 30 of the respective years and included a decrease of 1.0 percentage points for the first six months of 2026 in the ratio for large losses of $2 million or more per claim, discussed below.
Catastrophe losses and loss expenses accounted for 22.2 and 19.5 percentage points of the combined ratio for the second quarter and first six months of 2026, compared with 23.8 and 40.0 points for the same periods a year ago. The 10-year annual average catastrophe loss ratio for the personal lines segment through 2025 was 14.0 percentage points, and the five-year annual average was 15.8 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.
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The net effect of reserve development on prior accident years during the second quarter and first six months of 2026 was favorable by $11 million and $18 million, compared with $19 million and $38 million for the same periods of 2025. Our homeowner line of business was the main contributor to the personal lines net favorable reserve development for the first six months of 2026. 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 2025 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 50.
The personal lines underwriting expense ratio decreased for the second quarter and first six months of 2026, compared with the same periods a year ago. The second-quarter and six-month decreases were partly due to growth in premiums outpacing growth in various expenses. The ratio 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 June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Current accident year losses greater than $5 million $ —   $ 10  (100) $ 8   $ 29  (72)
Current accident year losses $2 million - $5 million 22   18  22  37   23  61 
Large loss prior accident year reserve development (2) 13  nm 13   25  (48)
Total large losses incurred 20   41  (51) 58   77  (25)
Losses incurred but not reported 77   37  108  148   111  33 
Other losses excluding catastrophe losses 271   257  5  553   511  8 
Catastrophe losses 190   186  2  334   591  (43)
Total losses incurred $ 558   $ 521  7  $ 1,093   $ 1,290  (15)

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year losses greater than $5 million 0.0   % 1.3  % (1.3) 0.4   % 2.0  % (1.6)
Current accident year losses $2 million - $5 million 2.3   2.2  0.1  2.1   1.5  0.6 
Large loss prior accident year reserve development (0.2) 1.5  (1.7) 0.8   1.6  (0.8)
Total large loss ratio 2.1   5.0  (2.9) 3.3   5.1  (1.8)
Losses incurred but not reported 8.7   4.7  4.0  8.4   7.4  1.0 
Other losses excluding catastrophe losses 31.0   32.0  (1.0) 31.5   34.1  (2.6)
Catastrophe losses 21.6   23.1  (1.5) 19.1   39.3  (20.2)
Total loss ratio 63.4   % 64.8  % (1.4) 62.3   % 85.9  % (23.6)

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 second quarter of 2026, the personal lines total large loss ratio, net of reinsurance, was 2.9 percentage points lower than last year's second quarter. The second-quarter 2026 amount of total large losses incurred favorably contributed to the decrease in the six-month 2026 total large loss ratio, compared with 2025, in addition to a first-quarter 2026 ratio that was 0.8 points lower than the first quarter of 2025. We believe results for the three- and six-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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EXCESS AND SURPLUS LINES INSURANCE RESULTS

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Earned premiums $ 189   $ 174  9  $ 369   $ 336  10 
Fee revenues 1   1  0  2   2  0 
Total revenues 190   175  9  371   338  10 
Loss and loss expenses from:            
Current accident year before catastrophe losses 121   113  7  238   219  9 
Current accident year catastrophe losses 3   2  50  4   4  0 
Prior accident years before catastrophe losses (6) (5) (20) (13) (13) 0 
Prior accident years catastrophe losses —   —  0  (1) (1) 0 
Loss and loss expenses 118   110  7  228   209  9 
Underwriting expenses 53   49  8  103   93  11 
Underwriting profit $ 19   $ 16  19  $ 40   $ 36  11 

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year before catastrophe losses 64.6   % 64.9  % (0.3) 64.6   % 65.2  % (0.6)
Current accident year catastrophe losses 0.9   1.6  (0.7) 1.0   1.2  (0.2)
Prior accident years before catastrophe losses (2.9) (2.7) (0.2) (3.5) (3.8) 0.3 
Prior accident years catastrophe losses (0.1) (0.3) 0.2  (0.3) (0.3) 0.0 
Loss and loss expenses 62.5   63.5  (1.0) 61.8   62.3  (0.5)
Underwriting expenses 28.0   27.6  0.4  28.1   27.5  0.6 
Combined ratio 90.5   % 91.1  % (0.6) 89.9   % 89.8  % 0.1 

Combined ratio 90.5   % 91.1  % (0.6) 89.9   % 89.8  % 0.1 
Contribution from catastrophe losses and prior years reserve development (2.1) (1.4) (0.7) (2.8) (2.9) 0.1 
Combined ratio before catastrophe losses and prior years reserve development 92.6   % 92.5  % 0.1  92.7   % 92.7  % 0.0 

 
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 second quarter and first six months of 2026, compared with the same periods a year ago, including increases in both agency renewal and new business written premiums. Renewal written premiums rose 8% for the second quarter and six months ended June 30, 2026, compared with the same periods of 2025, including higher renewal pricing. For both 2026 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the low-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.
New business written premiums produced by agencies increased by 6% for the second quarter and 8% for the first six months of 2026 compared with the same periods of 2025, 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.

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Excess and Surplus Lines Insurance Premiums

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Agency renewal written premiums $ 165   $ 153  8  $ 300   $ 279  8 
Agency new business written premiums 67   63  6  125   116  8 
Other written premiums (13) (14) 7  (24) (25) 4 
Net written premiums 219   202  8  401   370  8 
Unearned premium change (30) (28) (7) (32) (34) 6 
Earned premiums $ 189   $ 174  9  $ 369   $ 336  10 

 
• Combined ratio – The excess and surplus lines combined ratio improved by 0.6 percentage points for the second quarter and increased 0.1 points for the first six months of 2026, compared with the same periods of 2025. Changes in the combined ratio were largely due to lower ratios for current accident year loss and loss expenses, including catastrophe losses, and were partially offset by higher ratios for underwriting expenses.
The 64.6% second-quarter 2026 ratio for current accident year loss and loss expenses before catastrophe losses was 0.3 percentage points lower, compared with the 64.9% accident year 2025 ratio measured as of June 30, 2025, including an increase of 2.2 points for the IBNR portion and a decrease of 2.5 points for the case incurred portion. The six-month 2026 ratio for current accident year loss and loss expenses before catastrophe losses was 0.6 percentage points lower, compared with the 65.2% accident year 2025 ratio measured as of June 30, 2025, including an increase of 1.0 points for the IBNR portion and a decrease of 1.6 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 3.0% for the second quarter and 3.8% for the first six months of 2026, compared with 3.0% and 4.1% for the same periods of 2025. Reserve estimates are inherently uncertain as described in our 2025 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 50.
The excess and surplus lines underwriting expense ratio increased for the second quarter and first six months of 2026 compared with the same periods a year ago, due to timing of recognition of various expenses. The ratio 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 June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Current accident year losses greater than $5 million $ —   $ —  nm $ —   $ —  nm
Current accident year losses $2 million - $5 million —   —  nm —   —  nm
Large loss prior accident year reserve development —   —  nm —   —  nm
Total large losses incurred —   —  nm —   —  nm
Losses incurred but not reported 57   31  84  95   77  23 
Other losses excluding catastrophe losses 24   42  (43) 64   66  (3)
Catastrophe losses 2   3  (33) 3   3  0 
Total losses incurred $ 83   $ 76  9  $ 162   $ 146  11 

Ratios as a percent of earned premiums:     Pt. Change     Pt. Change
Current accident year losses greater than $5 million —   % —  % 0.0  —   % —  % 0.0 
Current accident year losses $2 million - $5 million —   —  0.0  —   —  0.0 
Large loss prior accident year reserve development —   —  0.0  —   —  0.0 
Total large loss ratio —   —  0.0  —   —  0.0 
Losses incurred but not reported 30.7   18.1  12.6  25.8   23.0  2.8 
Other losses excluding catastrophe losses 13.2   24.4  (11.2) 17.6   19.7  (2.1)
Catastrophe losses 0.8   1.3  (0.5) 0.7   0.8  (0.1)
Total loss ratio 44.7   % 43.8  % 0.9  44.1   % 43.5  % 0.6 

 
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 second quarter and first six months of both 2026 and 2025, our excess and surplus lines insurance segment had no large losses of $2 million or more per claim. We believe results for the three- and six-month periods largely reflected normal fluctuations in loss patterns.
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LIFE INSURANCE RESULTS

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Earned premiums $ 87   $ 83  5  $ 172   $ 163  6 
Fee revenues 2   2  0  3   3  0 
Total revenues 89   85  5  175   166  5 
Contract holders' benefits incurred 79   73  8  163   154  6 
Investment interest credited to contract holders (33) (31) (6) (65) (63) (3)
Underwriting expenses incurred 25   24  4  48   47  2 
Total benefits and expenses 71   66  8  146   138  6 
Life insurance segment profit $ 18   $ 19  (5) $ 29   $ 28  4 

 
Overview
Performance highlights for the life insurance segment include:
• Revenues – Revenues increased for the six months ended June 30, 2026, 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 2% to $88.734 billion at June 30, 2026, from $87.311 billion at year-end 2025.
Fixed annuity deposits received for the three and six months ended June 30, 2026, were $7 million and $14 million, compared with $8 million and $12 million for the same periods of 2025. 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 June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Term life insurance $ 64   $ 61  5  $ 125   $ 118  6 
Whole life insurance 13   13  0  27   26  4 
Universal life and other 10   9  11  20   19  5 
Earned premiums $ 87   $ 83  5  $ 172   $ 163  6 

 
• 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 $29 million for our life insurance segment in the first six months of 2026, compared with a profit of $28 million for the same period of 2025, was primarily due to more favorable mortality experience and increased earned premiums, partially offset by less favorable impacts from the unlocking of interest rate and other actuarial assumptions.

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 six months of 2026 primarily due to continued growth of in-force policy face amounts and less favorable impacts from the unlocking of interest rate and other actuarial assumptions.

Underwriting expenses for the first six months of 2026 increased compared with the same period a year ago, largely due to higher general insurance expenses compared to the same period of 2025.

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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 invested assets, the life insurance subsidiary reported net income of $30 million and $56 million for the three and six months ended June 30, 2026, compared with $26 million and $47 million for the three and six months ended June 30, 2025. The life insurance subsidiary portfolio had net after-tax investment losses of less than $1 million and $1 million for the three and six months ended June 30, 2026, compared with $3 million and $4 million for the three and six months ended June 30, 2025.

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 12% for the second quarter and 13% for the first six months of 2026, compared with the same periods of 2025. Interest income increased by $30 million and $55 million for the three and six months ended June 30, 2026, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rates on maturing bonds purchased for several years prior to 2022. Dividend income increased by $2 million for the second quarter and $11 million for the first six months of 2026. The increase for the first six months of 2026 was primarily due to a $6 million special dividend from one of our holdings in first-quarter 2026 in addition to dividend payouts that have modestly trended upward in recent quarters.

Investments Results

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Total investment income, net of expenses $ 319   $ 285  12  $ 637   $ 565  13 
Investment interest credited to contract holders (33) (31) (6) (65) (63) (3)
Investment gains and losses, net 1,308   473  177  1,238   406  205 
Investments profit, pretax $ 1,594   $ 727  119  $ 1,810   $ 908  99 

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 June 30, 2026
Fixed-maturity pretax yield profile:
Expected to mature during the remainder of 2026 4.88  % $ 408 
Expected to mature during 2027 4.90  920 
Expected to mature during 2028 5.50  1,160 
Average yield and total expected maturities from the remainder of 2026 through 2028 5.18  $ 2,488 

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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-to-amortized cost for total fixed-maturity securities acquired during the first six months of 2026 was higher than the 5.11% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2025. Our fixed-maturity portfolio's average yield-to-amortized cost of 5.06% for the first six months of 2026, from the investment income table below, was lower than the 5.11% yield-to-amortized cost for the year-end 2025 fixed-maturities portfolio.

Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Average pretax yield-to-amortized cost on new fixed-maturities:
Acquired taxable fixed-maturities 5.73   % 5.94  % 5.54   % 5.93  %
Acquired tax-exempt fixed-maturities 4.52   4.77  4.46   4.66 
Average total fixed-maturities acquired 5.66   5.82  5.48   5.82 

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 2025 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21, and Item 7, Investments Outlook, Page 86. 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 June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Investment income:            
Interest $ 244   $ 214  14  $ 479   $ 424  13 
Dividends 72   70  3  148   137  8 
Other 8   5  60  20   12  67 
Less investment expenses 5   4  25  10   8  25 
Investment income, pretax 319   285  12  637   565  13 
Less income taxes
55   49  12  110   97  13 
Total investment income, after-tax $ 264   $ 236  12  $ 527   $ 468  13 

Investment returns:
Average invested assets plus cash and cash
  equivalents $ 34,421   $ 30,500  $ 34,313   $ 30,468 
Average yield pretax 3.71   % 3.74  % 3.71   % 3.71  %
Average yield after-tax 3.07   3.10  3.07   3.07 
Effective tax rate 17.4   17.2  17.3   17.2 

Fixed-maturity returns:
Average amortized cost $ 19,209   $ 17,372  $ 18,938   $ 17,334 
Average yield pretax 5.08   % 4.93  % 5.06   % 4.89  %
Average yield after-tax 4.14   4.02  4.12   4.00 
Effective tax rate 18.5   18.4  18.5   18.3 

 
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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 2025 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 124.
 
The table below summarizes total investment gains and losses, before taxes.

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Investment gains and losses:
Equity securities:
Investment gains and losses on securities sold, net $ 183   $ (1) $ 223   $ (3)
Unrealized gains and losses on securities still held, net 1,117   481  1,006   411 

Subtotal 1,300   480  1,229   408 
Fixed maturities:
Gross realized gains 7   1  9   1 
Gross realized losses (1) —  (2) — 
Change in allowance for credit losses, net (1) (13) (2) (15)

Subtotal 5   (12) 5   (14)
Other 3   5  4   12 
Total investment gains and losses reported in net income 1,308   473  1,238   406 

Change in unrealized investment gains and losses:

Fixed maturities 75   28  (145) 95 
Short-term (1) —  (1) — 
Total $ 1,382   $ 501  $ 1,092   $ 501 

Of the 5,484 fixed-maturity and short-term securities in the portfolio, 14 securities were trading below 70% of amortized cost at June 30, 2026. 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 six months of 2026 for our Other operations increased, compared with the same period of 2025, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $2 million and $19 million, respectively. Cincinnati Re had $305 million of earned premiums for the first six months of 2026 and generated an underwriting profit of $50 million. Cincinnati Global had $148 million of earned premiums for the first six months of 2026 and generated an underwriting profit of $7 million. Total expenses for Other decreased for the first six months of 2026, primarily due to lower 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 six months of 2026, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global. For the first six months of 2025, total other loss resulted from an underwriting loss from Cincinnati Re and interest expense from debt of the parent company.

(Dollars in millions) Three months ended June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Interest and fees on loans and leases $ 3   $ 2  50  $ 6   $ 5  20 
Earned premiums 228   207  10  453   432  5 
Other revenues 4   3  33  7   4  75 
Total revenues 235   212  11  466   441  6 
Interest expense 14   14  0  27   27  0 
Loss and loss expenses 142   112  27  245   319  (23)
Underwriting expenses 75   56  34  151   132  14 
Operating expenses 11   10  10  20   21  (5)
Total expenses 242   192  26  443   499  (11)
 Total other income (loss) $ (7) $ 20  nm $ 23   $ (58) nm

 

TAXES
We had $321 million and $373 million of income tax expense for the three and six months ended June 30, 2026, compared with $170 million and $132 million of income tax expense for the same periods of 2025. The effective tax rate for the three and six months ended June 30, 2026, was 20.4% and 19.6% compared with 19.9% and 18.2% for the same periods last year. The change in our effective tax rate between periods was primarily due to changes in underwriting income, changes in our net investment gains and losses 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 June 30, 2026, shareholders' equity was $16.671 billion, compared with $15.911 billion at December 31, 2025. Total debt was $808 million at June 30, 2026, down $7 million from $815 million at December 31, 2025. At June 30, 2026, cash and cash equivalents totaled $1.750 billion, compared with $1.431 billion at December 31, 2025.

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 $400 million to the parent company in the first six months of 2026, compared with $175 million for the same period of 2025. For full-year 2025, our lead insurance subsidiary paid dividends totaling $550 million to the parent company. State of Ohio regulatory requirements restrict the dividends our insurance subsidiary can pay. For full-year 2026, total dividends that our insurance subsidiary can pay to our parent company without regulatory approval are approximately $975 million.
 
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 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 June 30, Six months ended June 30,
2026 2025 % Change 2026 2025 % Change
Premiums collected $ 2,603   $ 2,466  6  $ 5,084   $ 4,743  7 
Loss and loss expenses paid (1,293) (1,246) (4) (2,494) (2,645) 6 
Commissions and other underwriting expenses paid (714) (668) (7) (1,686) (1,592) (6)
Cash flow from underwriting 596   552  8  904   506  79 
Investment income received 231   207  12  460   413  11 
Cash flow from operations $ 827   $ 759  9  $ 1,364   $ 919  48 

 
Collected premiums for property casualty insurance rose $341 million during the first six months of 2026, compared with the same period in 2025. Loss and loss expenses paid for the 2026 period decreased $151 million. Commissions and other underwriting expenses paid increased $94 million.
 
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.
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Capital Resources
At June 30, 2026, our debt-to-total-capital ratio was 4.6%, considerably below our 35% covenant threshold, with $791 million in long-term debt and $17 million in borrowing on our revolving short-term line of credit. At  June 30, 2026 , $383  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 June 30, 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 $236  million in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations at June 30, 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 six 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 $1.178 billion in the first six 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 we re $508 million in the first six months of 2026.
There were no contributions to our qualified pension plan during the first six months of 2026.
 
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
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per share for an indicated annual rate of $3.76 per share. During the first six months of 2026, we used $276 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 June 30, 2026, increased $956 million compared with December 31, 2025. Case loss reserves increased by $101 million, IBNR loss reserves increased by $708 million and loss expense reserves increased by $147 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.

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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 June 30, 2026
Commercial lines insurance:          
Commercial casualty $ 1,260   $ 1,830   $ 950   $ 4,040   32.6   %
Commercial property 269   328   119   716   5.8  
Commercial auto 437   518   197   1,152   9.3  
Workers' compensation 377   585   108   1,070   8.6  
Other commercial 190   79   202   471   3.8  
Subtotal 2,533   3,340   1,576   7,449   60.1  
Personal lines insurance:          
Personal auto 330   206   151   687   5.5  
Homeowner 351   377   148   876   7.1  
Other personal 131   298   11   440   3.5  
Subtotal 812   881   310   2,003   16.1  
Excess and surplus lines 389   641   375   1,405   11.3  
Cincinnati Re 207   1,059   9   1,275   10.3  
Cincinnati Global 105   165   4   274   2.2  
Total $ 4,046   $ 6,086   $ 2,274   $ 12,406   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 $2.986 billion at June 30, 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.
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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 $32.290 billion at June 30, 2026, up $1.325 billion from year-end 2025, including a $831 million increase in the fixed-maturity portfolio, a $500 million increase in the equity portfolio and a $6 million decrease in short-term investments.

(Dollars in millions) At June 30, 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 $ 15,144   63.9   % $ 14,863   46.0   % $ 14,134  62.5  % $ 14,010  45.2  %
Tax-exempt fixed maturities 4,136   17.4   4,091   12.7   4,170  18.4  4,113  13.3 
Common equities 3,932   16.6   12,883   39.9   3,792  16.8  12,373  40.0 
Nonredeemable preferred
  equities 355   1.5   311   1.0   363  1.6  321  1.0 
Short-term investments 143   0.6   142   0.4   148  0.7  148  0.5 
Total $ 23,710   100.0   % $ 32,290   100.0   % $ 22,607  100.0  % $ 30,965  100.0  %

At June 30, 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 $678 million of private equity investments, $129 million of real estate through direct property ownership and development projects in the United States, $39 million of life policy loans and $17 million in Lloyd's deposit at June 30, 2026.
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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 six 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 slight tightening of corporate credit spreads. At June 30, 2026, our fixed-maturity portfolio with an average rating of A2/A was valued at 98.3% of its amortized cost, compared with 99.0% at December 31, 2025.
 
At June 30, 2026, our investment-grade fixed-maturity securities represented 97.7% 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 June 30, 2026 At December 31, 2025
Weighted average yield-to-amortized cost 5.24   % 5.11  %
Weighted average maturity 11.4 yrs 10.9 yrs
Effective duration 6.0 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.

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TAXABLE FIXED MATURITIES
Our taxable fixed-maturity portfolio, with a fair value of $14.863 billion at June 30, 2026, included:

(Dollars in millions) At June 30, 2026 At December 31, 2025
Investment-grade corporate $ 10,259   $ 9,505 
Government-sponsored enterprises 2,471   2,359 
Asset-backed 808   797 
States, municipalities and political subdivisions 791   806 
United States government 317   313 
Noninvestment-grade corporate 197   206 
Foreign government 20   24 

Total $ 14,863   $ 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 June 30, 2026. Our investment-grade corporate bonds had an average rating of Baa1 by Moody's or BBB+ by S&P Global Ratings and represented 69.0% of the taxable fixed-maturity portfolio's fair value at June 30, 2026, compared with 67.8% at year-end 2025.
 
The heaviest concentration in our investment-grade corporate bond portfolio, based on fair value at
June 30, 2026, was the financial sector. It represented 26.2% of our investment-grade corporate bond portfolio, compared with 28.8% at year-end 2025. The utility and energy sectors represented 13.8% and 11.2%, 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 June 30, 2026, included $808 million of asset-backed securities at fair value with an average rating of Aa2/AA.

TAX-EXEMPT FIXED MATURITIES
At June 30, 2026, we had $4.091 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 June 30, 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.
 
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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 June 30, 2026 $ 21,198   $ 20,081   $ 18,954   $ 17,723   $ 16,526  
At December 31, 2025 $ 20,177  $ 19,142  $ 18,123  $ 17,008  $ 15,891 

 
The effective duration of the fixed-maturity portfolio as of June 30, 2026, was 6.0 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 June 30, 2026, we had $142 million of short-term investments.

EQUITY INVESTMENTS
Our equity investments, with a fair value totaling $13.194 billion at June 30, 2026, included $12.883 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 June 30, 2026 $ 9,236   $ 10,555   $ 11,875   $ 13,194   $ 14,513   $ 15,833   $ 17,152  
At December 31, 2025 $ 8,886  $ 10,155  $ 11,425  $ 12,694  $ 13,963  $ 15,233  $ 16,502 

At June 30, 2026, Apple Inc. (Nasdaq:AAPL) was our largest single common stock holding with a fair value of $1.004 billion, or 7.8% of our publicly traded common stock portfolio and 3.1% of the total investment portfolio. Forty-six holdings (among 10 different sectors) each had a fair value greater than $100 million. 
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Common Stock Portfolio Sector Distribution

  Percent of common stock portfolio
  At June 30, 2026 At December 31, 2025
Cincinnati
 Financial S&P 500
Weightings Cincinnati
Financial S&P 500
Weightings
Sector:        
Information technology 34.0   % 38.0   % 35.4  % 34.4  %
Industrials 15.2   8.9   14.4  8.2 
Financial 11.8   11.8   13.0  13.4 
Healthcare 10.9   8.9   10.0  9.6 
Consumer discretionary 6.8   9.3   7.3  10.4 
Consumer staples 6.5   4.6   6.5  4.7 
Energy 5.1   3.0   4.2  2.8 
Materials 3.6   1.8   3.3  1.8 
Utilities 3.2   2.2   3.0  2.3 
Real estate 2.0   1.8   1.9  1.8 
Telecomm services 0.9   9.7   1.0  10.6 
Total 100.0   % 100.0   % 100.0  % 100.0  %

 

UNREALIZED INVESTMENT GAINS AND LOSSES
At June 30, 2026, unrealized investment gains before taxes for fixed-maturity and short-term investments portfolio totaled $152 million and unrealized investment losses amounted to $479 million before taxes.
 
The $327 million net unrealized loss position in our fixed-maturity and short-term investments portfolio at June 30, 2026, increased in the first six months of 2026, primarily due to an increase in U.S. Treasury yields partially offset by 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 June 30, 2026, consisted of a net gain position in our equity portfolio of $8.907 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 June 30, 2026, were Apple Inc., Microsoft Corp (Nasdaq:MSFT), Lam Research Corporation (Nasdaq:LRCX), Broadcom Inc. (Nasdaq:AVGO) and AbbVie Inc. (NYSE:ABBV), which had a combined fair value of $3.436 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 June 30, 2026, 2,880 of the 5,484 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 2,880 holdings with fair values below amortized cost at June 30, 2026, represented 59.4% of the fair value of our fixed-maturity and short-term investments portfolio and $479 million in unrealized losses.
• 2,208 of the 2,880 holdings had fair value between 90% and 100% of amortized cost at June 30, 2026. These primarily consist of securities whose current valuation is largely the result of interest rate factors. The fair value of these 2,208 securities was $10.083 billion, and they accounted for $212 million in unrealized losses.
• 658 of the 2,880 holdings had fair value between 70% and 90% of amortized cost at June 30, 2026. We believe the 658 securities will continue to pay interest and ultimately pay principal upon maturity. The issuers of these
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658 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 $1.235 billion, and they accounted for $254 million in unrealized losses.
• 14 of the 2,880 holdings had fair value below 70% of amortized cost at June 30, 2026. We believe these securities will continue to pay interest and ultimately pay principal upon maturity. The fair value of these securities was $18 million, and they accounted for $13 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 June 30, 2026 Fair value Unrealized
 losses Fair value Unrealized
 losses Fair
 value Unrealized
 losses
Fixed-maturity:            
Corporate $ 3,194   $ 42   $ 2,580   $ 199   $ 5,774   $ 241  
States, municipalities and political subdivisions 316   2   2,063   180   2,379   182  
Government-sponsored enterprises 2,152   38   193   3   2,345   41  
Asset-backed 202   3   184   7   386   10  
United States government 276   3   20   1   296   4  
Foreign government 14   —   —   —   14   —  
Total fixed-maturity 6,154   88   5,040   390   11,194   478  
Short-term 142   1   —   —   142   1  

Total fixed-maturity and short-term investments $ 6,296   $ 89   $ 5,040   $ 390   $ 11,336   $ 479  
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 June 30, 2026, applying our invested asset impairment policy, we determined that the total of $479 million, for securities in an unrealized loss position in the table above, was not the result of a credit loss.

During the first six 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 increased $1 million during the first six months of 2026. During the first six 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 $14 million during the first six 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.

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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 June 30, 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 1,777  9,874  9,490  (384) 228 
Fair valued at 100% and above of amortized cost 1,057  5,247  5,359  112  154 
Investment income on securities sold in current year —  —  —  —  18 
Total 2,842  15,144  14,863  (281) 400 
Tax-exempt fixed maturities:          
Fair valued below 70% of amortized cost 6  8  4  (4) — 
Fair valued at 70% to less than 100% of amortized cost 1,086  1,767  1,686  (81) 28 
Fair valued at 100% and above of amortized cost 1,547  2,361  2,401  40  46 
Investment income on securities sold in current year —  —  —  —  2 
Total 2,639  4,136  4,091  (45) 76 
Fixed-maturities summary:          
Fair valued below 70% of amortized cost 14  31  18  (13) — 
Fair valued at 70% to less than 100% of amortized cost 2,863  11,641  11,176  (465) 256 
Fair valued at 100% and above of amortized cost 2,604  7,608  7,760  152  200 
Investment income on securities sold in current year —  —  —  —  20 
Total 5,481  19,280  18,954  (326) 476 
Short-term investments:          
Fair valued below 70% of cost —  —  —  —  — 
Fair valued at 70% to less than 100% of cost 3  143  142  (1) 1 
Fair valued at 100% and above of cost —  —  —  —  — 
Investment income on securities sold in current year —  —  —  —  9 
Total 3  143  142  (1) 10 

Fixed maturities and short-term investments summary:          
Fair valued below 70% of cost 14   31   18   (13) —  
Fair valued at 70% to less than 100% of cost 2,866   11,784   11,318   (466) 257  
Fair valued at 100% and above of cost 2,604   7,608   7,760   152   200  
Investment income on securities sold in current year —   —   —   —   29  
Total 5,484   $ 19,423   $ 19,096   $ (327) $ 486  

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.

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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 June 30, 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 June 30, 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.

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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 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.

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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 six 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 1,849,445 shares available for purchase under our programs at June 30, 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

April 1-30, 2026 —  —  —  3,176,650 
May 1-31, 2026 889,801  $ 163.51  889,801  2,286,849 
June 1-30, 2026 437,404  158.70  437,404  1,849,445 

Totals 1,327,205  161.93  1,327,205   

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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 5, 2026)

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)

 
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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: July 27, 2026

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

(Principal Accounting Officer)

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