The Cincinnati Insurance CompanynThe Cincinnati Indemnity Company
The Cincinnati Insurance CompanynThe Cincinnati Indemnity Company The Cincinnati Casualty CompanynThe Cincinnati Specialty Underwriters Insurance Company The Cincinnati Life Insurance CompanynCFC Investment CompanynCSU Producer Resources Inc. Cincinnati Global Underwriting Ltd.nCincinnati Global Underwriting Agency Ltd.
• Third-quarter 2026 net income of $459 million, or $2.96 per share, compared with $1.122 billion, or $7.11 per share, in the third quarter of 2025, after recognizing a less than $1 million third-quarter 2026 after-tax increase in the fair value of equity securities still held.
• Third-quarter 2026 non-GAAP operating income* of $443 million, or $2.86 per share, compared with $449 million, or $2.85 per share, in the third quarter of last year.
• $663 million decrease in third-quarter 2026 net income, compared with third- quarter 2025, including the effects of after-tax net decreases of $657 million from net investment gains and $41 million from property casualty underwriting profit, partially offset by an increase of $24 million from investment income.
• 5.8% value creation ratio for the first nine months of 2026, compared with 13.8% for the same period of 2025.
* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures section defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.
Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement. CINF 3Q26 Release 1
• 90.9% third-quarter 2026 property casualty combined ratio, increased from 88.2% for the third quarter of 2025.
• 2% growth in third-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
• $315 million third-quarter 2026 property casualty new business written premiums, down 12%. Agencies appointed since the beginning of 2025 contributed $33 million or 10% of total new business written premiums.
• $31 million third-quarter 2026 life insurance subsidiary net income, up $3 million compared with the third quarter of 2025, and 2% growth in third-quarter 2026 term life insurance earned premiums.
• 10% or $30 million increase in third-quarter 2026 pretax investment income, including an 11% increase in bond interest income and a 4% decrease in stock portfolio dividends.
• Three-month decrease of less than 1% in fair value of total investments at September 30, 2026, including a less than 1% decrease for both the bond portfolio and the stock portfolio.
• $6.044 billion parent company cash and marketable securities at September 30, 2026, up 9% from year-end 2025.
Stephen M. Spray, president and chief executive officer, commented: “Over the past few months our field claims teams and headquarters claims associates have been busy. I’m proud of their efforts as they brought compassion and expertise to our agents and policyholders, quickly resolving claims and helping affected communities begin to move forward.
“This quarter is a nice example of the impact our many growth, profitability and diversification initiatives are having on our insurance business. While catastrophe losses grew by 7.0 points compared with last year’s third quarter – moving closer to historical averages for the third quarter – our overall combined ratio of 90.9% reflects our continued efforts in pricing segmentation across our organization and the purposeful diversification of our growth.
“On a nine-month basis we achieved healthy non-GAAP operating income, increasing that measure 38% to $997 million. Our insurance operations continued to lead the way. With three-quarters of the year behind us, our 95.8% combined ratio is comfortably within our long-term target of 92% to 98%.”
“In this competitive market, we are balancing new business opportunities with underwriting discipline. Total property casualty net written premiums grew 4% through the first nine months of 2026, reflecting average renewal price increases for each of our property casualty insurance segments and most of our major lines of business.
“Our growth strategy plays to the strengths of each area where we do business. We consider many factors such as historic loss ratios, current market conditions, weather patterns and our view of future expectations for particular lines of business to create an appropriate plan for targeted profitable growth. That work creates a generally stable underwriting appetite to support our agents and enhance our mutual success.
“We also continue to benefit from the introduction of new specialty products through The Cincinnati Specialty Underwriters Insurance Company and Cincinnati Global Underwriting, along with the ability to grow Cincinnati Re opportunistically as the reinsurance market changes. Through September, these three areas have grown 7%, 13% and 11%, respectively, compared with the first nine months of 2025.”
“Consolidated cash and total investments topped $34 billion. Since December, book value per share has risen to $105.42, driven by the contribution of our insurance operations and the strength of our investment portfolio.
“This ample capital allows us to execute on our long-term strategies and, at the same time, continue to not just pay dividends to shareholders, but increase them, through the normal variability of investment and insurance markets as we’ve done for 66 years.” CINF 3Q26 Release 2
• $57 million or 2% growth of third-quarter 2026 property casualty net written premiums, reflecting premium growth initiatives, price increases and a higher level of insured exposures.
• $41 million decrease in third-quarter 2026 new business premiums written by agencies, primarily due to our personal lines insurance segment, included a $15 million increase in production from agencies appointed since the beginning of 2025.
• 300 new agency appointments in the first nine months of 2026, including 44 that market only our personal lines products.
• 2.7 percentage-point third-quarter 2026 combined ratio increase, including an increase of 7.0 points for losses from catastrophes.
• 2.6 percentage-point nine-month 2026 combined ratio improvement, including a decrease of 1.3 points from lower catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $94 million, compared with 0.9 points or $22 million for third-quarter 2025.
• 2.9 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 2.5 points for the first nine months of 2025.
• 0.6 percentage-point improvement in the nine-month 2026 ratio for current accident year loss and loss expenses before catastrophes.
• 0.4 percentage-point increase in the underwriting expense ratio for the first nine months of 2026, compared with the same period of 2025, primarily due to timing of recognition of certain expenses. CINF 3Q26 Release 3
• $1 million or less than 1% growth in third-quarter 2026 commercial lines net written premiums, primarily due to higher agency renewal premiums. Two percent growth in nine-month net written premiums.
• $7 million or 1% increase in third-quarter renewal written premiums, with commercial lines average renewal pricing increases in the low-single-digit percent range.
$3 million or 2% decrease in third-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 1.7 percentage-point third-quarter 2026 combined ratio increase, including an increase of 4.3 points for losses from catastrophes.
• 6.5 percentage-point nine-month 2026 combined ratio increase, including an increase of 5.1 points from higher catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $46 million, compared with 1.4 points or $18 million for third-quarter 2025.
• 3.1 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 2.8 points for the first nine months of 2025. CINF 3Q26 Release 4
• $6 million or 1% growth in third-quarter 2026 personal lines net written premiums, including higher agency renewal written premiums that benefited from rate increases near the low end of the high-single-digit percent range, partially offset by lower new business premiums. Five percent growth in nine- month net written premiums.
• $40 million or 34% decrease in third-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 2.1 percentage-point third-quarter 2026 combined ratio increase, including an increase of 12.1 points for losses from catastrophes.
• 16.2 percentage-point nine-month 2026 combined ratio improvement, including a decrease of 8.9 points from lower catastrophe losses.
• 4.3 percentage-point third-quarter 2026 favorable prior accident year reserve development of $38 million, compared with an unfavorable 1.7 points or $14 million for third-quarter 2025.
• 2.2 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 1.0 points for the first nine months of 2025. CINF 3Q26 Release 5
• $9 million or 5% growth in third-quarter 2026 excess and surplus lines net written premiums, including higher agency renewal written premiums that benefited from price increases averaging in the low-single-digit percent range. Seven percent growth in nine-month net written premiums.
• $2 million or 4% increase in third-quarter 2026 new business premiums written by agencies.
• 0.4 percentage-point third-quarter 2026 combined ratio improvement, primarily due to favorable reserve development on prior accident year loss and loss expenses that was partially offset by higher current accident year catastrophe losses.
• 0.1 percentage-point nine-month 2026 combined ratio improvement, largely due to a lower ratio for current accident year loss and loss expenses before catastrophe losses that was partially offset by a higher underwriting expense ratio.
• 3.3 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $6 million, compared with 2.2 points or $4 million for third-quarter 2025.
• 3.6 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 3.5 points for the first nine months of 2025. CINF 3Q26 Release 6
• $2 million increase in third-quarter 2026 earned premiums, including a 2% increase for term life insurance, our largest life insurance product line.
• $12 million increase in nine-month 2026 life insurance subsidiary net income, primarily due to increased investment income, increased investment gains, increased earned premiums, and more favorable mortality experience, partially offset by less favorable impacts from the unlocking of interest rate and other actuarial assumptions.
• $1 million or less than 1% nine-month 2026 increase, to $1.468 billion, in GAAP shareholders’ equity for the life insurance subsidiary, primarily from net income that was offset by an increase in unrealized investment losses on fixed- maturity securities. CINF 3Q26 Release 7
• $30 million or 10% rise in third-quarter 2026 pretax investment income, including an 11% increase in interest income from fixed-maturity securities and a 4% decrease in equity portfolio dividends.
• $1.142 billion in third-quarter 2026 pretax total investment losses, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio.
• $34.378 billion in consolidated cash and total investments at September 30, 2026, an increase of 4% from $33.214 billion at year-end 2025.
• $18.925 billion bond portfolio at September 30, 2026, with an average rating of A2/A. Fair value decreased $29 million during the third quarter of 2026, including $1.107 billion in net purchases of fixed-maturity securities.
• $13.145 billion equity portfolio was 39.7% of total investments, including $8.872 billion in appreciated value before taxes at September 30, 2026. Third- quarter 2026 decrease in fair value of $49 million, including $52 million in net sales of equity securities.
• $3.22 third-quarter 2026 decrease in book value per share, including additions of $2.89 of net income before investment gains and $0.82 for other items that were offset by $5.99 from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities and $0.94 from dividends declared to shareholders.
• Value creation ratio of 5.8% for the first nine months of 2026, including 6.4% from net income before investment gains, which includes underwriting and investment income, and 6.2% from investment gains for equity securities, partially offset by 6.6% from changes in unrealized gains for fixed-maturity securities and 0.2% for other items.
For additional information or to register for our conference call webcast, please visit investors.cinfin.com .
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com .
Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by forward-looking statements. Any forward-looking statements contained herein, are based upon our current estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like “seek,” “expect,” “will,” “should,” “could,” “might,” “anticipate,” “believe,” “estimate,” “intend,” “likely,” “future,” or other similar expressions. Forward-looking statements speak only as of the date they were made; we assume no obligation to update such statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not limited to:
• Risks and uncertainties associated with our loss reserves or actual claim costs exceeding reserves
• Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance
• Unusually high levels of catastrophe losses due to risk concentrations or changes in weather patterns, environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes; and our ability to manage catastrophe risk
• Risks associated with analytical models in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance, and catastrophe risk management
• Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates
• Events or conditions that could weaken or harm our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth
• Mergers, acquisitions, and other consolidations of agencies that result in a concentration of a significant amount of premium in one agency or agency group and/or alter our competitive advantages
• Our inability to manage business opportunities, growth prospects, and expenses for our ongoing operations
• The inability to obtain adequate ceded reinsurance on acceptable terms, for acceptable amounts, and from financially strong reinsurers; and the potential for nonpayment or delay in payment by reinsurers
• Domestic and global events, such as the wars in Ukraine and in the Middle East, future pandemics, inflationary trends, changes in U.S. trade and tariff policy, and disruptions in the banking and financial services industry, resulting in insurance losses, capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:
◦ Securities market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions that affect our investment portfolio and book value
◦ Significant or prolonged decline in the fair value of securities and impairment of the assets
◦ Significant decline in investment income due to reduced or eliminated dividend payouts from securities
◦ Significant rise in losses from surety or director and officer policies written for financial institutions or other insured entities or in losses from policies written by Cincinnati Re or Cincinnati Global
◦ An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses
◦ Decreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activity
◦ The inability of our workforce, agencies, or vendors to perform necessary business functions
• Declines in overall stock market values negatively affecting our equity portfolio and book value
◦ Values of our fixed-maturity investments and accounts in which we hold bank- owned life insurance contract assets
• Economic volatility and illiquidity associated with our alternative investments in private equity, private credit, real property, and limited partnerships CINF 3Q26 Release 10 • Failure to comply with covenants and other requirements under our credit facilities, senior debt, and other debt obligations
• Recession, prolonged elevated inflation, or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies
• The inability of our subsidiaries to pay dividends consistent with current or past levels impacting our ability to pay shareholder dividends or repurchase shares
• Ineffective information technology systems or failing to develop and implement improvements in technology
• Difficulties with technology or data security breaches, including cyberattacks, could negatively affect our, or our agents’, ability to conduct business; disrupt our relationships with agents, policyholders, and others; cause reputational damage, mitigation expenses, data loss, and expose us to liability
• Difficulties with our operations and technology that may negatively impact our ability to conduct business, including cloud-based data information storage, data security, remote working capabilities, and/or outsourcing relationships and third-party operations and data security
• Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products
• Delays, inadequate data developed internally or from third parties, or performance inadequacies from ongoing development and implementation of underwriting and pricing models and methods, including usage-based insurance methods, automation, artificial intelligence, or technology projects and enhancements expected to increase our efficiency, pricing accuracy, underwriting profit, and competitiveness
• Intense competition, and the impact of innovation, emerging technologies, artificial intelligence and changing customer preferences on the insurance industry and the markets in which we operate, could harm our ability to maintain or increase our business volumes and profitability
• Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that the segment could not achieve sustainable profitability
• Unforeseen departure of certain executive officers or other key employees that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others
• Our inability, or the inability of our independent agents, to attract and retain personnel
• Events, such as a pandemic, an epidemic, natural catastrophe, or terrorism, which could hamper our ability to assemble our workforce, work effectively in a remote environment, or other failures of business continuity or disaster recovery programs
• Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state- based system, that:
◦ Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates
◦ Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules, and regulations
◦ Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business
◦ Increase assessments for guaranty funds, other insurance‑related assessments, or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes
◦ Increase our provision for federal income taxes due to changes in tax laws, regulations, or interpretations
◦ Restrict our ability to execute our business model, including the way we compensate agents CINF 3Q26 Release 11 • Adverse outcomes from litigation, environmental claims, mass torts or administrative proceedings, including effects of social inflation and third- party litigation funding on the size and frequency of litigation awards
• Events or actions, including unauthorized intentional circumvention of controls, which reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002
• Additional measures affecting corporate financial reporting and governance that can affect the market value of our common stock
Risks and uncertainties are further discussed in other filings with the Securities and Exchange Commission, including our 2025 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30. * * * CINF 3Q26 Release 12
CINF 3Q26 Release 13 Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; additional prior-period reconciliations available at investors.cinfin.com .) Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
Management uses certain non-GAAP financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
• Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non- recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses are recognized from certain changes in market values of securities without actual realization. Management believes that the level of investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.
For these reasons, many investors and shareholders consider non-GAAP operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.
• Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global.
• Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. 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. CINF 3Q26 Release 14
• Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company’s insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this measure is useful, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all- inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting.
• Written premium: Under statutory accounting rules in the U.S., property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. The difference between written and earned premium is unearned premium.
Full text with the tables
The Cincinnati Insurance CompanynThe Cincinnati Indemnity Company
The Cincinnati Casualty CompanynThe Cincinnati Specialty Underwriters
Insurance Company
The Cincinnati Life Insurance CompanynCFC Investment CompanynCSU Producer
Resources Inc.
Cincinnati Global Underwriting Ltd.nCincinnati Global Underwriting Agency
Ltd.
Investor Contact
: Andrew F. Gossard, 513-870-2768
CINF-IR@cinfin.com
Media Contact
: Betsy E. Ertel, 513-603-5323
Media_Inquiries@cinfin.com
Cincinnati Financial Reports Third-Quarter 2026 Results
Cincinnati, October 26, 2026 – Cincinnati Financial Corporation (Nasdaq: CINF)
today reported:
• Third-quarter 2026 net income of $459 million, or $2.96 per share, compared
with $1.122 billion, or $7.11 per share, in the third quarter of 2025, after
recognizing a less than $1 million third-quarter 2026 after-tax increase in the
fair value of equity securities still held.
• Third-quarter 2026 non-GAAP operating income* of $443 million, or $2.86 per
share, compared with $449 million, or $2.85 per share, in the third quarter of
last year.
• $663 million decrease in third-quarter 2026 net income, compared with third-
quarter 2025, including the effects of after-tax net decreases of $657 million
from net investment gains and $41 million from property casualty underwriting
profit, partially offset by an increase of $24 million from investment income.
• $105.42 book value per share at September 30, 2026, up $3.07 since year-end.
• 5.8% value creation ratio for the first nine months of 2026, compared with
13.8% for the same period of 2025.
Financial Highlights
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* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP
Measures section defines and reconciles measures presented in this release that
are not based on U.S. Generally Accepted Accounting Principles.
Forward-looking statements and related assumptions are subject to the risks
outlined in the company’s safe harbor statement.
CINF 3Q26 Release 1
Insurance Operations Highlights
• 90.9% third-quarter 2026 property casualty combined ratio, increased from
88.2% for the third quarter of 2025.
• 2% growth in third-quarter net written premiums, including price increases,
premium growth initiatives and a higher level of insured exposures.
• $315 million third-quarter 2026 property casualty new business written
premiums, down 12%. Agencies appointed since the beginning of 2025 contributed
$33 million or 10% of total new business written premiums.
• $31 million third-quarter 2026 life insurance subsidiary net income, up $3
million compared with the third quarter of 2025, and 2% growth in third-quarter
2026 term life insurance earned premiums.
Investment and Balance Sheet Highlights
• 10% or $30 million increase in third-quarter 2026 pretax investment income,
including an 11% increase in bond interest income and a 4% decrease in stock
portfolio dividends.
• Three-month decrease of less than 1% in fair value of total investments at
September 30, 2026, including a less than 1% decrease for both the bond
portfolio and the stock portfolio.
• $6.044 billion parent company cash and marketable securities at September 30,
2026, up 9% from year-end 2025.
Property Casualty Operations Maintaining Profitability
Stephen M. Spray, president and chief executive officer, commented: “Over the
past few months our field claims teams and headquarters claims associates have
been busy. I’m proud of their efforts as they brought compassion and expertise
to our agents and policyholders, quickly resolving claims and helping affected
communities begin to move forward.
“This quarter is a nice example of the impact our many growth, profitability and
diversification initiatives are having on our insurance business. While
catastrophe losses grew by 7.0 points compared with last year’s third quarter –
moving closer to historical averages for the third quarter – our overall
combined ratio of 90.9% reflects our continued efforts in pricing segmentation
across our organization and the purposeful diversification of our growth.
“On a nine-month basis we achieved healthy non-GAAP operating income, increasing
that measure 38% to $997 million. Our insurance operations continued to lead the
way. With three-quarters of the year behind us, our 95.8% combined ratio is
comfortably within our long-term target of 92% to 98%.”
Growth Reflecting Underwriting Discipline
“In this competitive market, we are balancing new business opportunities with
underwriting discipline. Total property casualty net written premiums grew 4%
through the first nine months of 2026, reflecting average renewal price
increases for each of our property casualty insurance segments and most of our
major lines of business.
“Our growth strategy plays to the strengths of each area where we do business.
We consider many factors such as historic loss ratios, current market
conditions, weather patterns and our view of future expectations for particular
lines of business to create an appropriate plan for targeted profitable growth.
That work creates a generally stable underwriting appetite to support our agents
and enhance our mutual success.
“We also continue to benefit from the introduction of new specialty products
through The Cincinnati Specialty Underwriters Insurance Company and Cincinnati
Global Underwriting, along with the ability to grow Cincinnati Re
opportunistically as the reinsurance market changes. Through September, these
three areas have grown 7%, 13% and 11%, respectively, compared with the first
nine months of 2025.”
Insurance Profitability Fueling Investments
“Consolidated cash and total investments topped $34 billion. Since December,
book value per share has risen to $105.42, driven by the contribution of our
insurance operations and the strength of our investment portfolio.
“This ample capital allows us to execute on our long-term strategies and, at the
same time, continue to not just pay dividends to shareholders, but increase
them, through the normal variability of investment and insurance markets as
we’ve done for 66 years.”
CINF 3Q26 Release 2
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
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• $57 million or 2% growth of third-quarter 2026 property casualty net written
premiums, reflecting premium growth initiatives, price increases and a higher
level of insured exposures.
• $41 million decrease in third-quarter 2026 new business premiums written by
agencies, primarily due to our personal lines insurance segment, included a $15
million increase in production from agencies appointed since the beginning of
2025.
• 300 new agency appointments in the first nine months of 2026, including 44
that market only our personal lines products.
• 2.7 percentage-point third-quarter 2026 combined ratio increase, including an
increase of 7.0 points for losses from catastrophes.
• 2.6 percentage-point nine-month 2026 combined ratio improvement, including a
decrease of 1.3 points from lower catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident
year reserve development of $94 million, compared with 0.9 points or $22 million
for third-quarter 2025.
• 2.9 percentage-point nine-month 2026 benefit from favorable prior accident
year reserve development, compared with 2.5 points for the first nine months of
2025.
• 0.6 percentage-point improvement in the nine-month 2026 ratio for current
accident year loss and loss expenses before catastrophes.
• 0.4 percentage-point increase in the underwriting expense ratio for the first
nine months of 2026, compared with the same period of 2025, primarily due to
timing of recognition of certain expenses.
CINF 3Q26 Release 3
Commercial Lines Insurance Results
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$ … $ 1… 3 $ … $ … 4
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% %
… C…
$ … $ 1… 1 $ … $ … 2
… 1… -2 … … 1
… -… -… … … …
$ … $ 1… 0 $ … $ … 2
… P…
… C…
… % 5… % -… … % … % …
… 3… 4… … … …
… -… -… … … …
… -… 0… … … …
… % 6… % 0… … % … % …
… % 8… % -… … % … % …
• $1 million or less than 1% growth in third-quarter 2026 commercial lines net
written premiums, primarily due to higher agency renewal premiums. Two percent
growth in nine-month net written premiums.
• $7 million or 1% increase in third-quarter renewal written premiums, with
commercial lines average renewal pricing increases in the low-single-digit
percent range.
•
$3 million or 2% decrease in third-quarter 2026 new business premiums written by
agencies, as we continue to carefully underwrite each policy in a highly
competitive market.
• 1.7 percentage-point third-quarter 2026 combined ratio increase, including an
increase of 4.3 points for losses from catastrophes.
• 6.5 percentage-point nine-month 2026 combined ratio increase, including an
increase of 5.1 points from higher catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident
year reserve development of $46 million, compared with 1.4 points or $18 million
for third-quarter 2025.
• 3.1 percentage-point nine-month 2026 benefit from favorable prior accident
year reserve development, compared with 2.8 points for the first nine months of
2025.
CINF 3Q26 Release 4
Personal Lines Insurance Results
… …
… …
… … …
… … % … %
… … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … 6 $ … $ 2… 13
1 1 0 4 4 0
… … 6 … 2… 13
… … … … 1… -7
… … 2 … 6… 8
$ … $ … … $ … $ -… …
… …
… …
… % … % … … % 8… % -…
… … … … 2… -…
… % … % … … % 1… % -…
% %
… …
$ … $ … 5 $ … $ 2… 9
… … … … 3… -…
… … … … -… 39
$ … $ … 1 $ … $ 2… 5
… …
… …
… % … % … … % 5… % -…
… … … … 2… -…
… … … … 0… -…
… … … … -… 1…
… % … % … … % 8… % -…
… % … % … … % 8… % -…
• $6 million or 1% growth in third-quarter 2026 personal lines net written
premiums, including higher agency renewal written premiums that benefited from
rate increases near the low end of the high-single-digit percent range,
partially offset by lower new business premiums. Five percent growth in nine-
month net written premiums.
• $40 million or 34% decrease in third-quarter 2026 new business premiums
written by agencies, as we continue to carefully underwrite each policy in a
highly competitive market.
• 2.1 percentage-point third-quarter 2026 combined ratio increase, including an
increase of 12.1 points for losses from catastrophes.
• 16.2 percentage-point nine-month 2026 combined ratio improvement, including a
decrease of 8.9 points from lower catastrophe losses.
• 4.3 percentage-point third-quarter 2026 favorable prior accident year reserve
development of $38 million, compared with an unfavorable 1.7 points or $14
million for third-quarter 2025.
• 2.2 percentage-point nine-month 2026 benefit from favorable prior accident
year reserve development, compared with 1.0 points for the first nine months of
2025.
CINF 3Q26 Release 5
Excess and Surplus Lines Insurance Results
… …
… …
… … …
… … % … %
… … … … … … 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
$ … $ 1… 7 $ … $ … 9
1 1 0 3 3 0
… 1… 7 … … 9
… 1… 6 … … 8
… 48 10 … … …
$ … $ 19 11 $ … $ … …
… P…
… C…
… % 6… % -… … % … % …
… 2… 0… … … …
… % 8… % -… … % … % …
% %
… C…
$ … $ 1… 3 $ … $ … 6
… 55 4 … … 6
… -… 30 … … …
$ … $ 1… 5 $ … $ … 7
… P…
… C…
… % 6… % -… … % … % …
… 0… 0… … … …
… -… -… … … …
… -… 0… … … …
… % 6… % -… … % … % …
… % 9… % -… … % … % …
• $9 million or 5% growth in third-quarter 2026 excess and surplus lines net
written premiums, including higher agency renewal written premiums that
benefited from price increases averaging in the low-single-digit percent range.
Seven percent growth in nine-month net written premiums.
• $2 million or 4% increase in third-quarter 2026 new business premiums written
by agencies.
• 0.4 percentage-point third-quarter 2026 combined ratio improvement, primarily
due to favorable reserve development on prior accident year loss and loss
expenses that was partially offset by higher current accident year catastrophe
losses.
• 0.1 percentage-point nine-month 2026 combined ratio improvement, largely due
to a lower ratio for current accident year loss and loss expenses before
catastrophe losses that was partially offset by a higher underwriting expense
ratio.
• 3.3 percentage-point third-quarter 2026 benefit from favorable prior accident
year reserve development of $6 million, compared with 2.2 points or $4 million
for third-quarter 2025.
• 3.6 percentage-point nine-month 2026 benefit from favorable prior accident
year reserve development, compared with 3.5 points for the first nine months of
2025.
CINF 3Q26 Release 6
Life Insurance Subsidiary Results
… …
… …
… …
… …
… % … %
… … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … 2 $ … $ … 4
… … 7 … … 5
8 8 0 … … 4
… … 2 … … 4
… … 2 … … 7
4 … … 3 … …
2 1 … 5 4 …
… … 7 … … 8
… … 5 … … 6
… … 9 … … 4
… … 6 … … 5
… … 8 … … …
8 8 0 … … …
$ … $ … … $ … $ … …
• $2 million increase in third-quarter 2026 earned premiums, including a 2%
increase for term life insurance, our largest life insurance product line.
• $12 million increase in nine-month 2026 life insurance subsidiary net income,
primarily due to increased investment income, increased investment gains,
increased earned premiums, and more favorable mortality experience, partially
offset by less favorable impacts from the unlocking of interest rate and other
actuarial assumptions.
• $1 million or less than 1% nine-month 2026 increase, to $1.468 billion, in
GAAP shareholders’ equity for the life insurance subsidiary, primarily from net
income that was offset by an increase in unrealized investment losses on fixed-
maturity securities.
CINF 3Q26 Release 7
Investment and Balance Sheet Highlights
Investments Results
…
… …
… …
… …
… % … %
… … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … $ … $ … …
… … 0 … … …
… … … … … 0
$ … $ … … $ … $ … 5
$ … $ … … $ … $ … …
… … … … … 4
… 4 … … … …
4 5 … … … 8
… … … … … …
… … … … … …
$ … $ … … $ … $ … …
$ … $ … $ … $ …
… % … % … % … %
… … … …
… … … …
$ … $ … $ … $ …
… % … % … % … %
… … … …
… … … …
• $30 million or 10% rise in third-quarter 2026 pretax investment income,
including an 11% increase in interest income from fixed-maturity securities and
a 4% decrease in equity portfolio dividends.
• $1.142 billion in third-quarter 2026 pretax total investment losses,
summarized in the table below. Changes in unrealized gains or losses reported in
other comprehensive income, in addition to investment gains and losses reported
in net income, are useful for evaluating total investment performance over time
and are major components of changes in book value and the value creation ratio.
Th… Nine
mo… mon…
(… en… end…
in Se… Sep…
m… 20… 30, 20… 20… 30, 2025
──────────────────────────────────────────────────────────────────────────────
I…
g…
a…
l…
on $ 5 $ -9 $ 255 $ -5
e…
s…
s…
n…
U…
g…
a…
l…
on 1 855 980 1,…
e…
s…
s…
h…
n…
I…
g…
a…
l… -8 1 -3 -13
on
f…
s…
n…
O… 22 6 26 18
S…
-
i…
g…
a… 20 853 1,… 1,…
l…
r…
in
n…
i…
C…
in
u…
i…
g…
a… -1… 241 -1… 336
l…
-
f…
m…
a…
s…
T… $ -1… $ 1,… $ -50 $ 1,…
CINF 3Q26 Release 8
Balance Sheet Highlights
(Dollars in
millions, At September At December
except share 30, 31,
data) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Total $ 33,139 $ 31,783
investments
Total assets 42,611 41,002
Short-term 17 25
debt
Long-term 791 790
debt
Shareholder… 16,182 15,911
equity
Book value 105.42 102.35
per share
Debt-to-tot… 4.8 % 4.9 %
ratio
• $34.378 billion in consolidated cash and total investments at September 30,
2026, an increase of 4% from $33.214 billion at year-end 2025.
• $18.925 billion bond portfolio at September 30, 2026, with an average rating
of A2/A. Fair value decreased $29 million during the third quarter of 2026,
including $1.107 billion in net purchases of fixed-maturity securities.
• $13.145 billion equity portfolio was 39.7% of total investments, including
$8.872 billion in appreciated value before taxes at September 30, 2026. Third-
quarter 2026 decrease in fair value of $49 million, including $52 million in net
sales of equity securities.
• $3.22 third-quarter 2026 decrease in book value per share, including additions
of $2.89 of net income before investment gains and $0.82 for other items that
were offset by $5.99 from investment portfolio net investment gains or changes
in unrealized gains for fixed-maturity securities and $0.94 from dividends
declared to shareholders.
• Value creation ratio of 5.8% for the first nine months of 2026, including 6.4%
from net income before investment gains, which includes underwriting and
investment income, and 6.2% from investment gains for equity securities,
partially offset by 6.6% from changes in unrealized gains for fixed-maturity
securities and 0.2% for other items.
For additional information or to register for our conference call webcast,
please visit investors.cinfin.com .
About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto
insurance through The Cincinnati Insurance Company and its two standard market
property casualty companies. The same local independent insurance agencies that
market those policies may offer products of our other subsidiaries, including
life insurance, fixed annuities and surplus lines property and casualty
insurance. For additional information about the company, please visit cinfin.com
.
Mailing Address: Street Address:
P.O. Box 145496 6200 South Gilmore Road
Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141
CINF 3Q26 Release 9
Safe Harbor Statement
Our business is subject to certain risks and uncertainties that may cause actual
results to differ materially from those suggested by forward-looking statements.
Any forward-looking statements contained herein, are based upon our current
estimates, assumptions and plans that are subject to uncertainty. These
statements are made subject to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be
identified by words like “seek,” “expect,” “will,” “should,” “could,” “might,”
“anticipate,” “believe,” “estimate,” “intend,” “likely,” “future,” or other
similar expressions. Forward-looking statements speak only as of the date they
were made; we assume no obligation to update such statements. Factors that could
cause actual results to differ materially from those expressed in, or implied
by, the forward-looking statements include, but are not limited to:
Insurance-Related Risks
• Risks and uncertainties associated with our loss reserves or actual claim
costs exceeding reserves
• Increased frequency and/or severity of claims or development of claims that
are unforeseen at the time of policy issuance
• Unusually high levels of catastrophe losses due to risk concentrations or
changes in weather patterns, environmental events, war or political unrest,
terrorism incidents, cyberattacks, civil unrest or other causes; and our ability
to manage catastrophe risk
• Risks associated with analytical models in key areas such as underwriting,
pricing, capital management, reserving, investments, reinsurance, and
catastrophe risk management
• Inadequate estimates or assumptions, or reliance on third-party data used for
critical accounting estimates
• Events or conditions that could weaken or harm our relationships with our
independent agencies and hamper opportunities to add new agencies, resulting in
limitations on our opportunities for growth
• Mergers, acquisitions, and other consolidations of agencies that result in a
concentration of a significant amount of premium in one agency or agency group
and/or alter our competitive advantages
• Our inability to manage business opportunities, growth prospects, and expenses
for our ongoing operations
• Changing consumer insurance-buying habits
• The inability to obtain adequate ceded reinsurance on acceptable terms, for
acceptable amounts, and from financially strong reinsurers; and the potential
for nonpayment or delay in payment by reinsurers
• Domestic and global events, such as the wars in Ukraine and in the Middle
East, future pandemics, inflationary trends, changes in U.S. trade and tariff
policy, and disruptions in the banking and financial services industry,
resulting in insurance losses, capital market or credit market uncertainty,
followed by prolonged periods of economic instability or recession, that lead
to:
◦ Securities market disruption or volatility and related effects such as
decreased economic activity and continued supply chain disruptions that affect
our investment portfolio and book value
◦ Significant or prolonged decline in the fair value of securities and
impairment of the assets
◦ Significant decline in investment income due to reduced or eliminated dividend
payouts from securities
◦ Significant rise in losses from surety or director and officer policies
written for financial institutions or other insured entities or in losses from
policies written by Cincinnati Re or Cincinnati Global
◦ An unusually high level of claims in our insurance or reinsurance operations
that increase litigation-related expenses
◦ Decreased premium revenue and cash flow from disruption to our distribution
channel of independent agents, consumer self-isolation, travel limitations,
business restrictions and decreased economic activity
◦ The inability of our workforce, agencies, or vendors to perform necessary
business functions
Financial, Economic, and Investment Risks
• Declines in overall stock market values negatively affecting our equity
portfolio and book value
• Downgrades in our financial strength ratings
• Interest rate fluctuations or other factors that could significantly affect:
◦ Our ability to generate growth in investment income
◦ Values of our fixed-maturity investments and accounts in which we hold bank-
owned life insurance contract assets
◦ Our traditional life policy reserves
• Economic volatility and illiquidity associated with our alternative
investments in private equity, private credit, real property, and limited
partnerships
CINF 3Q26 Release 10
• Failure to comply with covenants and other requirements under our credit
facilities, senior debt, and other debt obligations
• Recession, prolonged elevated inflation, or other economic conditions
resulting in lower demand for insurance products or increased payment
delinquencies
• The inability of our subsidiaries to pay dividends consistent with current or
past levels impacting our ability to pay shareholder dividends or repurchase
shares
General Business, Technology, and Operational Risks
• Ineffective information technology systems or failing to develop and implement
improvements in technology
• Difficulties with technology or data security breaches, including
cyberattacks, could negatively affect our, or our agents’, ability to conduct
business; disrupt our relationships with agents, policyholders, and others;
cause reputational damage, mitigation expenses, data loss, and expose us to
liability
• Difficulties with our operations and technology that may negatively impact our
ability to conduct business, including cloud-based data information storage,
data security, remote working capabilities, and/or outsourcing relationships and
third-party operations and data security
• Disruption of the insurance market caused by technology innovations such as
driverless cars that could decrease consumer demand for insurance products
• Delays, inadequate data developed internally or from third parties, or
performance inadequacies from ongoing development and implementation of
underwriting and pricing models and methods, including usage-based insurance
methods, automation, artificial intelligence, or technology projects and
enhancements expected to increase our efficiency, pricing accuracy, underwriting
profit, and competitiveness
• Intense competition, and the impact of innovation, emerging technologies,
artificial intelligence and changing customer preferences on the insurance
industry and the markets in which we operate, could harm our ability to maintain
or increase our business volumes and profitability
• Inability to defer policy acquisition costs for any business segment if
pricing and loss trends would lead management to conclude that the segment could
not achieve sustainable profitability
• Unforeseen departure of certain executive officers or other key employees that
could interrupt progress toward important strategic goals or diminish the
effectiveness of certain longstanding relationships with insurance agents and
others
• Our inability, or the inability of our independent agents, to attract and
retain personnel
• Events, such as a pandemic, an epidemic, natural catastrophe, or terrorism,
which could hamper our ability to assemble our workforce, work effectively in a
remote environment, or other failures of business continuity or disaster
recovery programs
Regulatory, Compliance, and Legal Risks
• Actions of insurance departments, state attorneys general or other regulatory
agencies, including a change to a federal system of regulation from a state-
based system, that:
◦ Impose new obligations on us that increase our expenses or change the
assumptions underlying our critical accounting estimates
◦ Place the insurance industry under greater regulatory scrutiny or result in
new statutes, rules, and regulations
◦ Restrict our ability to exit or reduce writings of unprofitable coverages or
lines of business
◦ Increase assessments for guaranty funds, other insurance‑related assessments,
or mandatory reinsurance arrangements; or that impair our ability to recover
such assessments through future surcharges or other rate changes
◦ Increase our provision for federal income taxes due to changes in tax laws,
regulations, or interpretations
◦ Increase other expenses
◦ Limit our ability to set fair, adequate, and reasonable rates
◦ Restrict our ability to cancel policies
◦ Impose new underwriting standards
◦ Place us at a disadvantage in the marketplace
◦ Restrict our ability to execute our business model, including the way we
compensate agents
CINF 3Q26 Release 11
• Adverse outcomes from litigation, environmental claims, mass torts or
administrative proceedings, including effects of social inflation and third-
party litigation funding on the size and frequency of litigation awards
• Events or actions, including unauthorized intentional circumvention of
controls, which reduce our future ability to maintain effective internal control
over financial reporting under the Sarbanes-Oxley Act of 2002
• Effects of changing social, global, economic, and regulatory environments
• Additional measures affecting corporate financial reporting and governance
that can affect the market value of our common stock
Risks and uncertainties are further discussed in other filings with the
Securities and Exchange Commission, including our 2025 Annual Report on Form
10-K, Item 1A, Risk Factors, Page 30.
* * *
CINF 3Q26 Release 12
Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets and Statements of Income (unaudited)
(Doll…
in Septe… Decemb…
milli… 30, 31,
Assets 2026 2025
──────────────────────────────────────────────────────────────────────────────
Inves… $ 33,139 $ 31,783
Cash
and 1,239 1,431
cash
equiv…
Premi… 3,427 3,142
recei…
Reins… 624 655
recov…
Defer…
policy 1,422 1,344
acqui…
costs
Other 2,760 2,647
assets
Total $ 42,611 $ 41,002
assets
Liabi…
Insur… $ 15,611 $ 14,499
reser…
Unear… 5,643 5,254
premi…
Defer…
income 1,616 1,833
tax
Long-…
debt
and 858 861
lease
oblig…
Other 2,701 2,644
liabi…
Total 26,429 25,091
liabi…
Share…
Equity
Common
stock
and 1,992 1,958
paid-…
capit…
Retai… 18,273 16,719
earni…
Accum…
other -951 -34
compr…
loss
Treas… -3,132 -2,732
stock
Total
share… 16,182 15,911
equity
Total
liabi…
and $ 42,611 $ 41,002
share…
equity
(Doll…
in Three Nine
milli… months months
except ended ended
per Septem… Septe…
share 30, 30,
data)
2026 2025 2026 2025
Reven…
Earned $ 2,690 $ 2,567 $ 7,929 $ 7,391
premi…
Inves…
incom… 325 295 962 860
net of
expen…
Inves…
gains
and 20 853 1,258 1,259
losse…
net
Other 12 11 35 30
reven…
Total 3,047 3,726 10,184 9,540
reven…
Benef…
and
Expen…
Insur…
losses
and 1,675 1,540 5,313 5,168
contr…
holde…
benef…
Under…
acqui…
and 799 754 2,349 2,165
insur…
expen…
Inter… 12 13 39 40
expen…
Other
opera… 8 6 28 27
expen…
Total
benef… 2,494 2,313 7,729 7,400
and
expen…
Income
Before 553 1,413 2,455 2,140
Income
Taxes
Provi…
for 94 291 467 423
Income
Taxes
Net $ 459 $ 1,122 $ 1,988 $ 1,717
Income
Per
Common
Share:
Net
income $ 2.99 $ 7.19 $ 12.88 $ 10.99
—
basic
Net
income 2.96 7.11 12.75 10.88
—
dilut…
CINF 3Q26 Release 13
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP
Measures
(See attached tables for reconciliations; additional prior-period
reconciliations available at investors.cinfin.com .)
Cincinnati Financial Corporation prepares its public financial statements in
conformity with accounting principles generally accepted in the United States of
America (GAAP). Statutory data is prepared in accordance with statutory
accounting rules for insurance company regulation in the United States of
America as defined by the National Association of Insurance Commissioners’
(NAIC) Accounting Practices and Procedures Manual, and therefore is not
reconciled to GAAP data.
Management uses certain non-GAAP financial measures to evaluate its primary
business areas – property casualty insurance, life insurance and investments.
Management uses these measures when analyzing both GAAP and non-GAAP results to
improve its understanding of trends in the underlying business and to help avoid
incorrect or misleading assumptions and conclusions about the success or failure
of company strategies. Management adjustments to GAAP measures generally: apply
to non-recurring events that are unrelated to business performance and distort
short-term results; involve values that fluctuate based on events outside of
management’s control; supplement reporting segment disclosures with disclosures
for a subsidiary company or for a combination of subsidiaries or reporting
segments; or relate to accounting refinements that affect comparability between
periods, creating a need to analyze data on the same basis.
• Non-GAAP operating income: Non-GAAP operating income is calculated by
excluding investment gains and losses (defined as investment gains and losses
after applicable federal and state income taxes) and other significant non-
recurring items from net income. Management evaluates non-GAAP operating income
to measure the success of pricing, rate and underwriting strategies. While
investment gains (or losses) are integral to the company’s insurance operations
over the long term, the determination to realize investment gains or losses on
fixed-maturity securities sold in any period may be subject to management’s
discretion and is independent of the insurance underwriting process. Also, under
applicable GAAP accounting requirements, gains and losses are recognized from
certain changes in market values of securities without actual realization.
Management believes that the level of investment gains or losses for any
particular period, while it may be material, may not fully indicate the
performance of ongoing underlying business operations in that period.
For these reasons, many investors and shareholders consider non-GAAP operating
income to be one of the more meaningful measures for evaluating insurance
company performance. Equity analysts who report on the insurance industry and
the company generally focus on this metric in their analyses. The company
presents non-GAAP operating income so that all investors have what management
believes to be a useful supplement to GAAP information.
• Consolidated property casualty insurance results: To supplement reporting
segment disclosures related to our property casualty insurance operations, we
also evaluate results for those operations on a basis that includes results for
our property casualty insurance and brokerage services subsidiaries. That is the
total of our commercial lines, personal lines and our excess and surplus lines
segments plus our reinsurance assumed operations known as Cincinnati Re and our
London-based global specialty underwriter known as Cincinnati Global.
• Life insurance subsidiary results: To supplement life insurance reporting
segment disclosures related to our life insurance operation, we also evaluate
results for that operation on a basis that includes life insurance subsidiary
investment income, or investment income plus investment gains and losses, that
are also included in our investments reporting segment. 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.
CINF 3Q26 Release 14
Cincinnati Financial Corporation
(Do…
in
mil… Thr… Ni…
exc… mon… mo…
Net per end… en…
In… sha… Sep… Se…
Re… dat… 30, 2026 2025 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 459 $ 1,1… $ 1,… $ 1,…
in…
Le…
In…
ga…
and 20 853 1,… 1,…
lo…
net
In…
tax
on
in… -4 -180 -2… -2…
ga…
and
lo…
In…
ga…
and 16 673 991 994
lo…
af…
No…
op… $ 443 $ 449 $ 997 $ 723
in…
Di…
per
sh…
da…
Net $ 2.96 $ 7.11 $ 12… $ 10…
in…
Le…
In…
ga…
and 0.13 5.40 8.… 7.…
lo…
net
In…
tax
on
in… -0.… -1.… -1… -1…
ga…
and
lo…
In…
ga…
and 0.10 4.26 6.… 6.…
lo…
af…
No…
op… $ 2.86 $ 2.85 $ 6.… $ 4.…
in…
Thr… Nine
mon… mon…
Li… (Do… end… end…
In… in Sep… Sep…
Re… mil… 30, 2026 2025 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
in…
of
the $ 31 $ 28 $ 87 $ 75
li…
in…
su…
In…
ga…
and 4 -1 3 -6
lo…
net
In…
tax
on
in… 1 — 1 -1
ga…
and
lo…
No…
op… 28 29 85 80
in…
In…
in…
net -53 -52 -161 -1…
of
ex…
In…
in…
cr… 32 32 97 95
to
co…
ho…
In…
tax
ex…
tax
on 7 8 22 21
in…
ga…
and
lo…
net
Li…
in… $ 14 $ 17 $ 43 $ 45
se…
pr…
CINF 3Q26 Release 15
…
… T…
… m…
… e…
… S…
… 3…
… 2…
──────────────────────────────────────────────────────────────────────────────
C… C… P… E… …
…
…
… $ 2… $ 1… $ 9… $ 1… $ 2…
…
…
… 55 71 -… 3 50
…
… $ 2… $ 1… $ 8… $ 1… $ 2…
…
… $ 2… $ 92 $ 88 $ 21 $ 39
…
N…
… m…
… e…
… S…
3…
2…
C… C… P… E… …
…
…
… $ 8… $ 3… $ 2… $ 5… $ 8…
…
…
… -… -… -… -… -…
…
… $ 7… $ 3… $ 2… $ 5… $ 7…
…
… $ 3… $ 61 $ 1… $ 61 $ 96
…
T…
… m…
… e…
… S…
3…
2…
C… C… P… E… O…
…
…
… $ 2… $ 1… $ 9… $ 1… $ 1…
…
…
… -9 31 -… -1 74
…
… $ 2… $ 1… $ 8… $ 1… $ 2…
…
… $ 2… $ 1… $ 99 $ 19 $ 64
…
N…
… m…
… e…
… S…
3…
2…
C… C… P… E… O…
…
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… $ 7… $ 3… $ 2… $ 5… $ 7…
…
…
… -… -… -… -… -…
…
… $ 7… $ 3… $ 2… $ 5… $ 6…
…
…
… $ 1… $ 2… $ -… $ 55 $ 45
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CINF 3Q26 Release 16
Cincinnati Financial Corporation
Other Measures
• Value creation ratio: This is a measure of shareholder value creation that
management believes captures the contribution of the company’s insurance
operations, the success of its investment strategy and the importance placed on
paying cash dividends to shareholders. The value creation ratio measure is made
up of two primary components: (1) rate of growth in book value per share plus
(2) the ratio of dividends declared per share to beginning book value per share.
Management believes this measure is useful, providing a meaningful measure of
long-term progress in creating shareholder value. It is intended to be all-
inclusive regarding changes in book value per share, and uses originally
reported book value per share in cases where book value per share has been
adjusted, such as adoption of Accounting Standards Updates with a cumulative
effect of a change in accounting.
• Written premium: Under statutory accounting rules in the U.S., property
casualty written premium is the amount recorded for policies issued and
recognized on an annualized basis at the effective date of the policy.
Management analyzes trends in written premium to assess business efforts. The
difference between written and earned premium is unearned premium.
Value Creation Ratio Calculations
(…
a… Th… Ni…
p… mo… mo…
s… en… en…
V… Se… Se…
c… 30, 30,
r… 20… 20… 20… 20…
──────────────────────────────────────────────────────────────────────────────
E…
of
p… $ 10… $ 98… $ 10… $ 98…
b…
v…
L…
b…
of 10… 91… 10… 89…
p…
b…
v…
C…
in -3… 7.… 3.… 9.…
b…
v…
D…
d… 0.… 0.… 2.… 2.…
to
s…
T…
v… $ -2… $ 8.… $ 5.… $ 12…
c…
V…
c…
r…
f… -3… % 8.0 % 3.0 % 10… %
c…
in
b…
v…
V…
c…
r…
f… 0.9 0.9 2.8 2.9
d…
d…
to
s…
V…
c… -2… % 8.9 % 5.8 % 13… %
r…
*
B…
v…
p…
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is
c…
by
d…
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of
p…
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by
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of
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**
C…
in
b…
v…
d…
by
t…
b…
of
p…
b…
v…
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D…
d…
to
s…
d…
by
b…
of
p…
b…
v…
CINF 3Q26 Release 17