Cincinnati Financial Reports First-Quarter 2026 Results
CINCINNATI, April 27, 2026 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Financial Highlights
(Dollars in millions, except per share data)
Three months ended March 31,
2026
2025
% Change
Revenue Data
Earned premiums
$ 2,604
$ 2,344
11
Investment income, net of expenses
318
280
14
Total revenues
2,863
2,566
12
Income Statement Data
Net income (loss)
$ 274
$ (90)
nm
Investment gains and losses, after-tax
(56)
(53)
(6)
Non-GAAP operating income (loss)*
$ 330
$ (37)
nm
Per Share Data (diluted)
Net income (loss)
$ 1.75
$ (0.57)
nm
Investment gains and losses, after-tax
(0.35)
(0.33)
(6)
Non-GAAP operating income (loss)*
$ 2.10
$ (0.24)
nm
Book value
$ 101.60
$ 87.78
16
Cash dividend declared
$ 0.94
$ 0.87
8
Diluted weighted average shares outstanding
157.0
156.4
0
*
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.
Insurance Operations Highlights
Investment and Balance Sheet Highlights
Solid Start to the Year
Stephen M. Spray, president and CEO, commented: "We recorded $330 million of non-GAAP operating income in the first quarter compared to a loss of $37 million a year ago.
"The first-quarter results for our insurance operations laid a nice foundation for us to build on for the rest of the year. Our 95.6% combined ratio improved almost 18 points from last year's 113.3%. While lower catastrophe losses drove much of the improvement, we also saw a decline in our current accident year combined ratio before catastrophe losses – giving us confidence in the health of our overall book of business. As we continue to refine pricing segmentation and risk selection, we've lowered that ratio by 3 points compared with last year's first quarter to 87.5%.
"Robust results from our investment operations also contributed. Pretax investment income rose $38 million in the first quarter as dividends from our equity portfolio increased 13% and bond interest income grew 12%."
Focus on Underwriting Discipline
"Since 2018, we've doubled the size of our insurance portfolio, growing from around $5 billion in net written premiums to more than $10 billion at the end of 2025. We intend to continue growing through all market cycles, and we understand that growth can't come at the cost of underwriting profitability.
"Consolidated net written premiums grew 7% compared with first-quarter 2025. While average renewal pricing increases moderated slightly, we continued to price on a policy-by-policy basis. The pricing sophistication we've built into our underwriting process allows our underwriters to charge what we believe is an appropriate rate for the risk we are assuming based on each account's unique characteristics. That rate might be higher or lower than the average.
"For the remainder of the year, we'll lean into our strategy of appointing more agencies and offering new products as a means to continue delivering profitable growth. In just the first three months of 2026, we've appointed 108 agencies across the U.S. We also continued to add new products, especially in excess and surplus lines.
"E&S isn't the market of last resort anymore. While it remains flexible in terms and rates, our approach to this business has been more strategic. We often find that if we can write one portion of the account through our E&S operations, we have a better chance of placing other risks for that account in our standard business."
Confidence in the Future
"At March 31, parent company cash and marketable securities remained strong at more than $5 billion, and our equity portfolio holds more than $8 billion in appreciated value before taxes. In January, the board of directors expressed its confidence in our financial strength by again raising the cash dividend.
"Our associates are determined to do things just a little better every day, strengthening our ability to compete by enhancing the advantages of our local independent agencies. That has been and continues to be our plan for creating shareholder value far into the future."
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Earned premiums
$ 2,519
$ 2,264
11
Fee revenues
4
4
0
Total revenues
2,523
2,268
11
Loss and loss expenses
1,667
1,887
(12)
Underwriting expenses
741
679
9
Underwriting profit (loss)
$ 115
$ (298)
nm
Ratios as a percent of earned premiums:
Pt. Change
Loss and loss expenses
66.2 %
83.3 %
(17.1)
Underwriting expenses
29.4
30.0
(0.6)
Combined ratio
95.6 %
113.3 %
(17.7)
% Change
Agency renewal written premiums
$ 2,045
$ 1,912
7
Agency new business written premiums
339
383
(11)
Other written premiums
284
200
42
Net written premiums
$ 2,668
$ 2,495
7
Ratios as a percent of earned premiums:
Pt. Change
Current accident year before catastrophe losses
58.1 %
60.5 %
(2.4)
Current accident year catastrophe losses
11.3
26.8
(15.5)
Prior accident years before catastrophe losses
(2.7)
(2.2)
(0.5)
Prior accident years catastrophe losses
(0.5)
(1.8)
1.3
Loss and loss expense ratio
66.2 %
83.3 %
(17.1)
Current accident year combined ratio before catastrophe losses
87.5 %
90.5 %
(3.0)
Commercial Lines Insurance Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Earned premiums
$ 1,241
$ 1,179
5
Fee revenues
1
2
(50)
Total revenues
1,242
1,181
5
Loss and loss expenses
847
735
15
Underwriting expenses
377
349
8
Underwriting profit
$ 18
$ 97
(81)
Ratios as a percent of earned premiums:
Pt. Change
Loss and loss expenses
68.2 %
62.3 %
5.9
Underwriting expenses
30.4
29.6
0.8
Combined ratio
98.6 %
91.9 %
6.7
% Change
Agency renewal written premiums
$ 1,184
$ 1,152
3
Agency new business written premiums
205
203
1
Other written premiums
(30)
(30)
0
Net written premiums
$ 1,359
$ 1,325
3
Ratios as a percent of earned premiums:
Pt. Change
Current accident year before catastrophe losses
62.8 %
61.1 %
1.7
Current accident year catastrophe losses
9.7
4.8
4.9
Prior accident years before catastrophe losses
(4.2)
(2.4)
(1.8)
Prior accident years catastrophe losses
(0.1)
(1.2)
1.1
Loss and loss expense ratio
68.2 %
62.3 %
5.9
Current accident year combined ratio before catastrophe losses
93.2 %
90.7 %
2.5
Personal Lines Insurance Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Earned premiums
$ 873
$ 698
25
Fee revenues
2
1
100
Total revenues
875
699
25
Loss and loss expenses
607
846
(28)
Underwriting expenses
238
210
13
Underwriting profit (loss)
$ 30
$ (357)
nm
Ratios as a percent of earned premiums:
Pt. Change
Loss and loss expenses
69.5 %
121.2 %
(51.7)
Underwriting expenses
27.3
30.1
(2.8)
Combined ratio
96.8 %
151.3 %
(54.5)
% Change
Agency renewal written premiums
$ 726
$ 634
15
Agency new business written premiums
76
127
(40)
Other written premiums
(27)
(89)
70
Net written premiums
$ 775
$ 672
15
Ratios as a percent of earned premiums:
Pt. Change
Current accident year before catastrophe losses
53.2 %
63.3 %
(10.1)
Current accident year catastrophe losses
17.1
60.6
(43.5)
Prior accident years before catastrophe losses
(0.5)
(0.8)
0.3
Prior accident years catastrophe losses
(0.3)
(1.9)
1.6
Loss and loss expense ratio
69.5 %
121.2 %
(51.7)
Current accident year combined ratio before catastrophe losses
80.5 %
93.4 %
(12.9)
Excess and Surplus Lines Insurance Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Earned premiums
$ 180
$ 162
11
Fee revenues
1
1
0
Total revenues
181
163
11
Loss and loss expenses
110
99
11
Underwriting expenses
50
44
14
Underwriting profit
$ 21
$ 20
5
Ratios as a percent of earned premiums:
Pt. Change
Loss and loss expenses
61.2 %
60.9 %
0.3
Underwriting expenses
28.1
27.4
0.7
Combined ratio
89.3 %
88.3 %
1.0
% Change
Agency renewal written premiums
$ 135
$ 126
7
Agency new business written premiums
58
53
9
Other written premiums
(11)
(11)
0
Net written premiums
$ 182
$ 168
8
Ratios as a percent of earned premiums:
Pt. Change
Current accident year before catastrophe losses
64.6 %
65.6 %
(1.0)
Current accident year catastrophe losses
1.1
0.8
0.3
Prior accident years before catastrophe losses
(4.1)
(5.0)
0.9
Prior accident years catastrophe losses
(0.4)
(0.5)
0.1
Loss and loss expense ratio
61.2 %
60.9 %
0.3
Current accident year combined ratio before catastrophe losses
92.7 %
93.0 %
(0.3)
Life Insurance Subsidiary Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Term life insurance
$ 61
$ 57
7
Whole life insurance
14
13
8
Universal life and other
10
10
0
Earned premiums
85
80
6
Investment income, net of expenses
54
50
8
Investment gains and losses, net
—
(1)
100
Fee revenues
1
1
0
Total revenues
140
130
8
Contract holders' benefits incurred
84
81
4
Underwriting expenses incurred
23
23
0
Total benefits and expenses
107
104
3
Net income before income tax
33
26
27
Income tax provision
7
5
40
Net income of the life insurance subsidiary
$ 26
$ 21
24
Investment and Balance Sheet Highlights
Investments Results
(Dollars in millions)
Three months ended March 31,
2026
2025
% Change
Investment income, net of expenses
$ 318
$ 280
14
Investment interest credited to contract holders
(32)
(32)
0
Investment gains and losses, net
(70)
(67)
(4)
Investments profit
$ 216
$ 181
19
Investment income:
Interest
$ 235
$ 210
12
Dividends
76
67
13
Other
12
7
71
Less investment expenses
5
4
25
Investment income, pretax
318
280
14
Less income taxes
55
48
15
Total investment income, after-tax
$ 263
$ 232
13
Investment returns:
Average invested assets plus cash and cash
equivalents
$ 33,504
$ 29,946
Average yield pretax
3.80 %
3.74 %
Average yield after-tax
3.14
3.10
Effective tax rate
17.2
17.2
Fixed-maturity returns:
Average amortized cost
$ 18,724
$ 17,071
Average yield pretax
5.02 %
4.92 %
Average yield after-tax
4.10
4.02
Effective tax rate
18.4
18.3
(Dollars in millions)
Three months ended March 31,
2026
2025
Investment gains and losses on equity securities sold, net
$ 33
$ (1)
Unrealized gains and losses on equity securities still held, net
(104)
(71)
Investment gains and losses on fixed-maturity securities, net
—
(2)
Other
1
7
Subtotal - investment gains and losses reported in net income
(70)
(67)
Change in unrealized investment gains and losses - fixed maturities
(220)
67
Total
$ (290)
$ —
Balance Sheet Highlights
(Dollars in millions, except share data)
At March 31,
At December 31,
2026
2025
Total investments
$ 32,001
$ 31,783
Total assets
41,211
41,002
Short-term debt
25
25
Long-term debt
791
790
Shareholders' equity
15,714
15,911
Book value per share
101.60
102.35
Debt-to-total-capital ratio
4.9 %
4.9 %
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
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
Financial, Economic, and Investment Risks
General Business, Technology, and Operational Risks
Regulatory, Compliance, and Legal Risks
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.
* * *
Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets and Statements of Income (unaudited)
(Dollars in millions)
March 31,
2026
December 31,
2025
Assets
Investments
$ 32,001
$ 31,783
Cash and cash equivalents
1,210
1,431
Premiums receivable
3,321
3,142
Reinsurance recoverable
627
655
Deferred policy acquisition costs
1,384
1,344
Other assets
2,668
2,647
Total assets
$ 41,211
$ 41,002
Liabilities
Insurance reserves
$ 14,924
$ 14,499
Unearned premiums
5,424
5,254
Deferred income tax
1,710
1,833
Long-term debt and lease obligations
859
861
Other liabilities
2,580
2,644
Total liabilities
25,497
25,091
Shareholders' Equity
Common stock and paid-in capital
1,958
1,958
Retained earnings
16,848
16,719
Accumulated other comprehensive loss
(185)
(34)
Treasury stock
(2,907)
(2,732)
Total shareholders' equity
15,714
15,911
Total liabilities and shareholders' equity
$ 41,211
$ 41,002
(Dollars in millions, except per share data)
Three months ended March 31,
2026
2025
Revenues
Earned premiums
$ 2,604
$ 2,344
Investment income, net of expenses
318
280
Investment gains and losses, net
(70)
(67)
Other revenues
11
9
Total revenues
2,863
2,566
Benefits and Expenses
Insurance losses and contract holders' benefits
1,751
1,968
Underwriting, acquisition and insurance expenses
764
702
Interest expense
13
13
Other operating expenses
9
11
Total benefits and expenses
2,537
2,694
Income (Loss) Before Income Taxes
326
(128)
Provision (Benefit) for Income Taxes
52
(38)
Net Income (Loss)
$ 274
$ (90)
Per Common Share:
Net income (loss)—basic
$ 1.77
$ (0.57)
Net income (loss)—diluted
1.75
(0.57)
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.
Cincinnati Financial Corporation
Net Income (Loss) Reconciliation
(Dollars in millions, except per share data)
Three months ended March 31,
2026
2025
Net income (loss)
$ 274
$ (90)
Less:
Investment gains and losses, net
(70)
(67)
Income tax on investment gains and losses
14
14
Investment gains and losses, after-tax
(56)
(53)
Non-GAAP operating income (loss)
$ 330
$ (37)
Diluted per share data:
Net income (loss)
$ 1.75
$ (0.57)
Less:
Investment gains and losses, net
(0.44)
(0.42)
Income tax on investment gains and losses
0.09
0.09
Investment gains and losses, after-tax
(0.35)
(0.33)
Non-GAAP operating income (loss)
$ 2.10
$ (0.24)
Life Insurance Reconciliation
(Dollars in millions)
Three months ended March 31,
2026
2025
Net income of the life insurance subsidiary
$ 26
$ 21
Investment gains and losses, net
—
(1)
Income tax on investment gains and losses
—
—
Non-GAAP operating income
26
22
Investment income, net of expenses
(54)
(50)
Investment income credited to contract holders
32
32
Income tax excluding tax on investment gains and losses, net
7
5
Life insurance segment profit
$ 11
$ 9
Property Casualty Insurance Reconciliation
(Dollars in millions)
Three months ended March 31, 2026
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 2,668
$ 1,359
$ 775
$ 182
$ 352
Unearned premiums change
(149)
(118)
98
(2)
(127)
Earned premiums
$ 2,519
$ 1,241
$ 873
$ 180
$ 225
Underwriting profit
$ 115
$ 18
$ 30
$ 21
$ 46
(Dollars in millions)
Three months ended March 31, 2025
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 2,495
$ 1,325
$ 672
$ 168
$ 330
Unearned premiums change
(231)
(146)
26
(6)
(105)
Earned premiums
$ 2,264
$ 1,179
$ 698
$ 162
$ 225
Underwriting profit (loss)
$ (298)
$ 97
$ (357)
$ 20
$ (58)
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
*Included in Other are the results of Cincinnati Re and Cincinnati Global.
Cincinnati Financial Corporation
Other Measures
Value Creation Ratio Calculations
(Dollars are per share)
Three months ended March 31,
2026
2025
Value creation ratio:
End of period book value*
$ 101.60
$ 87.78
Less beginning of period book value
102.35
89.11
Change in book value
(0.75)
(1.33)
Dividend declared to shareholders
0.94
0.87
Total value creation
$ 0.19
$ (0.46)
Value creation ratio from change in book value**
(0.7) %
(1.5) %
Value creation ratio from dividends declared to shareholders***
0.9
1.0
Value creation ratio
0.2 %
(0.5) %
* Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding
** Change in book value divided by the beginning of period book value
*** Dividend declared to shareholders divided by beginning of period book value
SOURCE Cincinnati Financial Corporation