Cincinnati Financial Reports Second-Quarter 2026 Results
CINCINNATI, July 27, 2026 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Financial Highlights
(Dollars in millions, except per share data)
Three months ended June 30,
Six months ended June 30,
2026
2025
% Change
2026
2025
% Change
Revenue Data
Earned premiums
$ 2,635
$ 2,480
6
$ 5,239
$ 4,824
9
Investment income, net of expenses
319
285
12
637
565
13
Total revenues
4,274
3,248
32
7,137
5,814
23
Income Statement Data
Net income
$ 1,255
$ 685
83
$ 1,529
$ 595
157
Investment gains and losses, after-tax
1,031
374
176
975
321
204
Non-GAAP operating income*
$ 224
$ 311
(28)
$ 554
$ 274
102
Per Share Data (diluted)
Net income
$ 8.05
$ 4.34
85
$ 9.78
$ 3.77
159
Investment gains and losses, after-tax
6.62
2.37
179
6.24
2.03
207
Non-GAAP operating income*
$ 1.43
$ 1.97
(27)
$ 3.54
$ 1.74
103
Book value
$ 108.64
$ 91.46
19
Cash dividend declared
$ 0.94
$ 0.87
8
$ 1.88
$ 1.74
8
Diluted weighted average shares outstanding
155.7
157.8
(1)
156.3
157.8
(1)
*
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
Investment Income Leads Second-Quarter Profits
Stephen M. Spray, president and chief executive officer, commented: "Investment income increased nicely, producing our main source of profits in the second quarter and bringing our total non-GAAP operating income to $554 million for the first half of the year.
"Turning to our insurance business, elevated catastrophe losses played a large part in an uptick in our combined ratio, coming in just shy of breakeven at 100.8% for the quarter. While not the result of any single storm, our field and headquarters claims associates have been busy, bringing compassion and expertise to our agents and policyholders across the country and close to home. Ohio was particularly impacted by bad weather this Spring with catastrophe losses reaching nearly four times higher than our 5-year second-quarter average for the state.
"On a six-month basis, we recorded a profitable 98.2% combined ratio. We are optimistic that further maturing of our plans to increase both product and geographic diversification will continue to help mute the impacts of catastrophe losses in any one quarter."
Focused on Outstanding Service and Pricing Discipline
"Consolidated net written premiums for the quarter and the first half of the year increased 3% and 5%, respectively. When market competition increases, our hallmark of personal service combines with data-driven analytics to support the ability of our agents to successfully retain their best clients.
"The power of segmentation in this market isn't simply about knowing when to walk away from an account that is underpriced in our view. It's also important that we work with our agents to offer advanced renewal quotes on accounts we believe are adequately priced.
"To help keep our pipeline of opportunities full, we continue to appoint new agencies in geographies where we see the best prospects for profitable growth. So far this year, we've appointed more than 200 agencies. With total agency relationships still under 3,000, we have a lot of runway to fuel growth without dampening the exclusivity of a Cincinnati contract that our current agents enjoy."
Book Value Reaches New Record
"At June 30, our book value again reached a record high, increasing 6% since December 31, 2025, to $108.64. Consolidated cash and total investments also reached a new high, nearly eclipsing $35 billion.
"Our ample capital allows us to execute on our long-term strategies and, at the same time, pay dividends to shareholders. Our value creation ratio, which considers the dividends we pay as well as growth in book value, was 8.0% for the first half of 2026."
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
% Change
2026
2025
% Change
Earned premiums
$ 2,548
$ 2,397
6
$ 5,067
$ 4,661
9
Fee revenues
3
3
0
7
7
0
Total revenues
2,551
2,400
6
5,074
4,668
9
Loss and loss expenses
1,808
1,587
14
3,475
3,474
0
Underwriting expenses
761
685
11
1,502
1,364
10
Underwriting profit (loss)
$ (18)
$ 128
nm
$ 97
$ (170)
nm
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
71.0 %
66.3 %
4.7
68.6 %
74.5 %
(5.9)
Underwriting expenses
29.8
28.6
1.2
29.6
29.3
0.3
Combined ratio
100.8 %
94.9 %
5.9
98.2 %
103.8 %
(5.6)
% Change
% Change
Agency renewal written premiums
$ 2,254
$ 2,135
6
$ 4,299
$ 4,047
6
Agency new business written premiums
353
404
(13)
692
787
(12)
Other written premiums
218
194
12
502
394
27
Net written premiums
$ 2,825
$ 2,733
3
$ 5,493
$ 5,228
5
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
58.3 %
56.5 %
1.8
58.2 %
58.4 %
(0.2)
Current accident year catastrophe losses
14.4
12.4
2.0
12.8
19.4
(6.6)
Prior accident years before catastrophe losses
(1.8)
(2.4)
0.6
(2.2)
(2.3)
0.1
Prior accident years catastrophe losses
0.1
(0.2)
0.3
(0.2)
(1.0)
0.8
Loss and loss expense ratio
71.0 %
66.3 %
4.7
68.6 %
74.5 %
(5.9)
Current accident year combined ratio before
catastrophe losses
88.1 %
85.1 %
3.0
87.8 %
87.7 %
0.1
Commercial Lines Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
% Change
2026
2025
% Change
Earned premiums
$ 1,251
$ 1,212
3
$ 2,492
$ 2,391
4
Fee revenues
1
—
nm
2
2
0
Total revenues
1,252
1,212
3
2,494
2,393
4
Loss and loss expenses
910
767
19
1,757
1,502
17
Underwriting expenses
391
358
9
768
707
9
Underwriting profit (loss)
$ (49)
$ 87
nm
$ (31)
$ 184
nm
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
72.8 %
63.3 %
9.5
70.5 %
62.8 %
7.7
Underwriting expenses
31.3
29.6
1.7
30.8
29.6
1.2
Combined ratio
104.1 %
92.9 %
11.2
101.3 %
92.4 %
8.9
% Change
% Change
Agency renewal written premiums
$ 1,146
$ 1,116
3
$ 2,330
$ 2,268
3
Agency new business written premiums
208
200
4
413
403
2
Other written premiums
(27)
(26)
(4)
(57)
(56)
(2)
Net written premiums
$ 1,327
$ 1,290
3
$ 2,686
$ 2,615
3
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
62.2 %
59.6 %
2.6
62.5 %
60.3 %
2.2
Current accident year catastrophe losses
12.0
7.2
4.8
10.8
6.1
4.7
Prior accident years before catastrophe losses
(1.3)
(3.3)
2.0
(2.7)
(2.9)
0.2
Prior accident years catastrophe losses
(0.1)
(0.2)
0.1
(0.1)
(0.7)
0.6
Loss and loss expense ratio
72.8 %
63.3 %
9.5
70.5 %
62.8 %
7.7
Current accident year combined ratio before
catastrophe losses
93.5 %
89.2 %
4.3
93.3 %
89.9 %
3.4
Personal Lines Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
% Change
2026
2025
% Change
Earned premiums
$ 880
$ 804
9
$ 1,753
$ 1,502
17
Fee revenues
1
2
(50)
3
3
0
Total revenues
881
806
9
1,756
1,505
17
Loss and loss expenses
638
598
7
1,245
1,444
(14)
Underwriting expenses
242
222
9
480
432
11
Underwriting profit (loss)
$ 1
$ (14)
nm
$ 31
$ (371)
nm
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
72.4 %
74.4 %
(2.0)
71.0 %
96.1 %
(25.1)
Underwriting expenses
27.5
27.6
(0.1)
27.4
28.8
(1.4)
Combined ratio
99.9 %
102.0 %
(2.1)
98.4 %
124.9 %
(26.5)
% Change
% Change
Agency renewal written premiums
$ 943
$ 866
9
$ 1,669
$ 1,500
11
Agency new business written premiums
78
141
(45)
154
268
(43)
Other written premiums
(31)
(27)
(15)
(58)
(116)
50
Net written premiums
$ 990
$ 980
1
$ 1,765
$ 1,652
7
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
52.3 %
51.3 %
1.0
52.8 %
56.9 %
(4.1)
Current accident year catastrophe losses
21.4
25.4
(4.0)
19.2
41.7
(22.5)
Prior accident years before catastrophe losses
(2.1)
(0.7)
(1.4)
(1.3)
(0.8)
(0.5)
Prior accident years catastrophe losses
0.8
(1.6)
2.4
0.3
(1.7)
2.0
Loss and loss expense ratio
72.4 %
74.4 %
(2.0)
71.0 %
96.1 %
(25.1)
Current accident year combined ratio before
catastrophe losses
79.8 %
78.9 %
0.9
80.2 %
85.7 %
(5.5)
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
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
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
% Change
% 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
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 expense ratio
62.5 %
63.5 %
(1.0)
61.8 %
62.3 %
(0.5)
Current accident year combined ratio before
catastrophe losses
92.6 %
92.5 %
0.1
92.7 %
92.7 %
0.0
Life Insurance Subsidiary Results
(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
Investment income, net of expenses
54
49
10
108
99
9
Investment gains and losses, net
(1)
(4)
75
(1)
(5)
80
Fee revenues
2
2
0
3
3
0
Total revenues
142
130
9
282
260
8
Contract holders' benefits incurred
79
73
8
163
154
6
Underwriting expenses incurred
25
24
4
48
47
2
Total benefits and expenses
104
97
7
211
201
5
Net income before income tax
38
33
15
71
59
20
Income tax provision
8
7
14
15
12
25
Net income of the life insurance subsidiary
$ 30
$ 26
15
$ 56
$ 47
19
Investment and Balance Sheet Highlights
Investments Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
% Change
2026
2025
% Change
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
$ 1,594
$ 727
119
$ 1,810
$ 908
99
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
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Investment gains and losses on equity securities sold, net
$ 183
$ (1)
$ 223
$ (3)
Unrealized gains and losses on equity securities still held, net
1,117
481
1,006
411
Investment gains and losses on fixed-maturity securities, net
5
(12)
5
(14)
Other
3
5
4
12
Subtotal - investment gains and losses reported in net income
1,308
473
1,238
406
Change in unrealized investment gains and losses - fixed
maturities and short-term
74
28
(146)
95
Total
$ 1,382
$ 501
$ 1,092
$ 501
Balance Sheet Highlights
(Dollars in millions, except share data)
At June 30,
At December 31,
2026
2025
Total investments
$ 33,153
$ 31,783
Total assets
43,231
41,002
Short-term debt
17
25
Long-term debt
791
790
Shareholders' equity
16,671
15,911
Book value per share
108.64
102.35
Debt-to-total-capital ratio
4.6 %
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)
June 30,
December 31,
2026
2025
Assets
Investments
$ 33,153
$ 31,783
Cash and cash equivalents
1,750
1,431
Premiums receivable
3,546
3,142
Reinsurance recoverable
633
655
Deferred policy acquisition costs
1,442
1,344
Other assets
2,707
2,647
Total assets
$ 43,231
$ 41,002
Liabilities
Insurance reserves
$ 15,465
$ 14,499
Unearned premiums
5,724
5,254
Deferred income tax
1,861
1,833
Long-term debt and lease obligations
859
861
Other liabilities
2,651
2,644
Total liabilities
26,560
25,091
Shareholders' Equity
Common stock and paid-in capital
1,979
1,958
Retained earnings
17,958
16,719
Accumulated other comprehensive loss
(135)
(34)
Treasury stock
(3,131)
(2,732)
Total shareholders' equity
16,671
15,911
Total liabilities and shareholders' equity
$ 43,231
$ 41,002
(Dollars in millions, except per share data)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Revenues
Earned premiums
$ 2,635
$ 2,480
$ 5,239
$ 4,824
Investment income, net of expenses
319
285
637
565
Investment gains and losses, net
1,308
473
1,238
406
Other revenues
12
10
23
19
Total revenues
4,274
3,248
7,137
5,814
Benefits and Expenses
Insurance losses and contract holders' benefits
1,887
1,660
3,638
3,628
Underwriting, acquisition and insurance expenses
786
709
1,550
1,411
Interest expense
14
14
27
27
Other operating expenses
11
10
20
21
Total benefits and expenses
2,698
2,393
5,235
5,087
Income Before Income Taxes
1,576
855
1,902
727
Provision for Income Taxes
321
170
373
132
Net Income
$ 1,255
$ 685
$ 1,529
$ 595
Per Common Share:
Net income — basic
$ 8.14
$ 4.38
$ 9.88
$ 3.81
Net income — diluted
8.05
4.34
9.78
3.77
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 Reconciliation
(Dollars in millions, except per share data)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net income
$ 1,255
$ 685
$ 1,529
$ 595
Less:
Investment gains and losses, net
1,308
473
1,238
406
Income tax on investment gains and losses
(277)
(99)
(263)
(85)
Investment gains and losses, after-tax
1,031
374
975
321
Non-GAAP operating income
$ 224
$ 311
$ 554
$ 274
Diluted per share data:
Net income
$ 8.05
$ 4.34
$ 9.78
$ 3.77
Less:
Investment gains and losses, net
8.40
3.00
7.92
2.57
Income tax on investment gains and losses
(1.78)
(0.63)
(1.68)
(0.54)
Investment gains and losses, after-tax
6.62
2.37
6.24
2.03
Non-GAAP operating income
$ 1.43
$ 1.97
$ 3.54
$ 1.74
Life Insurance Reconciliation
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net income of the life insurance subsidiary
$ 30
$ 26
$ 56
$ 47
Investment gains and losses, net
(1)
(4)
(1)
(5)
Income tax on investment gains and losses
—
(1)
—
(1)
Non-GAAP operating income
31
29
57
51
Investment income, net of expenses
(54)
(49)
(108)
(99)
Investment interest credited to contract holders
33
31
65
63
Income tax excluding tax on investment gains and losses,
net
8
8
15
13
Life insurance segment profit
$ 18
$ 19
$ 29
$ 28
Property Casualty Insurance Reconciliation
(Dollars in millions)
Three months ended June 30, 2026
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 2,825
$ 1,327
$ 990
$ 219
$ 289
Unearned premiums change
(277)
(76)
(110)
(30)
(61)
Earned premiums
$ 2,548
$ 1,251
$ 880
$ 189
$ 228
Underwriting profit (loss)
$ (18)
$ (49)
$ 1
$ 19
$ 11
(Dollars in millions)
Six months ended June 30, 2026
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 5,493
$ 2,686
$ 1,765
$ 401
$ 641
Unearned premiums change
(426)
(194)
(12)
(32)
(188)
Earned premiums
$ 5,067
$ 2,492
$ 1,753
$ 369
$ 453
Underwriting profit (loss)
$ 97
$ (31)
$ 31
$ 40
$ 57
(Dollars in millions)
Three months ended June 30, 2025
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 2,733
$ 1,290
$ 980
$ 202
$ 261
Unearned premiums change
(336)
(78)
(176)
(28)
(54)
Earned premiums
$ 2,397
$ 1,212
$ 804
$ 174
$ 207
Underwriting profit (loss)
$ 128
$ 87
$ (14)
$ 16
$ 39
(Dollars in millions)
Six months ended June 30, 2025
Consolidated
Commercial
Personal
E&S
Other*
Premiums:
Net written premiums
$ 5,228
$ 2,615
$ 1,652
$ 370
$ 591
Unearned premiums change
(567)
(224)
(150)
(34)
(159)
Earned premiums
$ 4,661
$ 2,391
$ 1,502
$ 336
$ 432
Underwriting profit (loss)
$ (170)
$ 184
$ (371)
$ 36
$ (19)
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 June 30,
Six months ended June 30,
2026
2025
2026
2025
Value creation ratio:
End of period book value*
$ 108.64
$ 91.46
$ 108.64
$ 91.46
Less beginning of period book value
101.60
87.78
102.35
89.11
Change in book value
7.04
3.68
6.29
2.35
Dividend declared to shareholders
0.94
0.87
1.88
1.74
Total value creation
$ 7.98
$ 4.55
$ 8.17
$ 4.09
Value creation ratio from change in book value**
7.0 %
4.2 %
6.2 %
2.6 %
Value creation ratio from dividends declared to shareholders***
0.9
1.0
1.8
2.0
Value creation ratio
7.9 %
5.2 %
8.0 %
4.6 %
* 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