Core Viewpoint - Cincinnati Financial (CINF) reported quarterly earnings of $1.97 per share, exceeding the Zacks Consensus Estimate of $1.39 per share, and showing an increase from $1.29 per share a year ago, representing an earnings surprise of +41.73% [1][2] Financial Performance - The company posted revenues of $2.78 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.14%, compared to $2.41 billion in the same quarter last year [2] - Over the last four quarters, Cincinnati Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Cincinnati Financial shares have increased by approximately 4% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.62 on revenues of $2.84 billion, and for the current fiscal year, it is $5.28 on revenues of $11.14 billion [7] - The outlook for the insurance industry, particularly the Property and Casualty sector, is currently in the top 35% of Zacks industries, suggesting a favorable environment for stock performance [8]

Part I – Financial Information [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Cincinnati Financial Corporation as of June 30, 2025, and for the three and six-month periods then ended, prepared in conformity with U.S. GAAP, including balance sheets, statements of income, comprehensive income, shareholders' equity, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$38.84 billion** from **$36.50 billion**, driven by investments, while liabilities grew to **$24.54 billion** and shareholders' equity rose to **$14.30 billion** Condensed Consolidated Balance Sheets (June 30, 2025 vs. Dec 31, 2024) | (Dollars in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total investments** | $29,569 | $28,378 | | **Total assets** | $38,842 | $36,501 | | **Total liabilities** | $24,541 | $22,566 | | **Total shareholders' equity** | $14,301 | $13,935 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income surged to **$685 million** in Q2 2025 due to investment gains, but decreased to **$595 million** for H1 2025 compared to the prior year, primarily from lower net investment gains Condensed Consolidated Statements of Income (Q2 & H1 2025 vs 2024) | (Dollars in millions, except per share data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $3,248 | $2,544 | $5,814 | $5,479 | | Net Income | $685 | $312 | $595 | $1,067 | | Net income — diluted (per share) | $4.34 | $1.98 | $3.77 | $6.77 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$1.05 billion** for H1 2025, with **$614 million** used in investing and **$425 million** in financing, resulting in a **$12 million** increase in cash and equivalents Condensed Consolidated Statements of Cash Flows (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,051 | $1,095 | | Net cash used in investing activities | $(614) | $(740) | | Net cash used in financing activities | $(425) | $(491) | | Net change in cash and cash equivalents | $12 | $(136) | | Cash and cash equivalents at end of period | $995 | $771 | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed disclosures supporting the condensed consolidated financial statements, covering accounting policies, investment portfolio, fair value measurements, loss reserves, and segment information - The company's investment portfolio is primarily composed of fixed-maturity and equity securities, with fair values of **$17.08 billion** and **$11.65 billion**, respectively, at June 30, 2025[15](index=15&type=chunk) - For the six months ended June 30, 2025, the company experienced **$154 million** of favorable development on prior accident year property casualty loss reserves[47](index=47&type=chunk) - The company operates in five reporting segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance, and Investments[89](index=89&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition and operations, covering corporate highlights, segment results, investment performance, liquidity, and the significant impact of catastrophe losses on property and casualty underwriting [Corporate Financial Highlights](index=37&type=section&id=Corporate%20Financial%20Highlights) Net income surged to **$685 million** in Q2 2025 but fell **44%** to **$595 million** for H1 2025 due to lower investment gains and underwriting income, while the value creation ratio decreased to **4.6%** and the quarterly dividend increased to **$0.87** per share Key Financial Highlights (H1 2025 vs H1 2024) | (Dollars in millions, except per share data) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Earned premiums | $4,824 | $4,227 | 14% | | Net income | $595 | $1,067 | (44%) | | Net income per share—diluted | $3.77 | $6.77 | (44%) | - The value creation ratio, a primary performance metric, decreased to **4.6%** for H1 2025 from **8.2%** in H1 2024, primarily due to reduced net gains from the investment portfolio and an underwriting loss in insurance operations[109](index=109&type=chunk) - The board of directors increased the regular quarterly dividend to **$0.87** per share, setting the stage for the 65th consecutive year of increasing cash dividends[107](index=107&type=chunk) [Financial Results](index=41&type=section&id=Financial%20Results) This section details segment operating results, highlighting a **$170 million** consolidated property and casualty underwriting loss in H1 2025 due to increased catastrophe losses, while Commercial lines remained profitable, Life insurance profit declined, and Investments saw income growth offset by lower gains [Consolidated Property Casualty Insurance Highlights](index=41&type=section&id=Consolidated%20Property%20Casualty%20Insurance%20Highlights) P&C operations recorded a **$170 million** underwriting loss in H1 2025, a significant shift from a **$166 million** profit in H1 2024, primarily due to **$904 million** in catastrophe losses, pushing the combined ratio to **103.8%** Consolidated P&C Insurance Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Earned premiums | $4,661 | $4,067 | | Underwriting profit (loss) | $(170) | $166 | | Combined ratio | 103.8% | 96.1% | | Catastrophe loss ratio | 18.4% | 8.6% | - The H1 2025 underwriting loss was driven by a **$501 million** increase in current accident year catastrophe losses, mostly from the January 2025 wildfires in southern California[119](index=119&type=chunk) - Net written premiums grew **11%** in H1 2025, driven by a **15%** increase in agency renewal premiums, reflecting continued price increases[128](index=128&type=chunk)[129](index=129&type=chunk) [Commercial Lines Insurance Results](index=47&type=section&id=Commercial%20Lines%20Insurance%20Results) The Commercial Lines segment's underwriting profit grew to **$184 million** in H1 2025, with the combined ratio improving to **92.4%**, driven by premium growth, lower catastrophe losses, and favorable reserve development Commercial Lines Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Earned premiums | $2,391 | $2,189 | | Underwriting profit | $184 | $49 | | Combined ratio | 92.4% | 97.9% | - Average renewal price increases in Q2 2025 were in the high-single-digit range for commercial casualty and property, and mid-single-digits for commercial auto[147](index=147&type=chunk) [Personal Lines Insurance Results](index=50&type=section&id=Personal%20Lines%20Insurance%20Results) The Personal Lines segment incurred a **$371 million** underwriting loss in H1 2025, with the combined ratio deteriorating to **124.9%** due to catastrophe losses, despite **17%** growth in net written premiums from rate increases Personal Lines Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Earned premiums | $1,502 | $1,219 | | Underwriting loss | $(371) | $(5) | | Combined ratio | 124.9% | 100.6% | | Catastrophe loss ratio | 40.0% | 15.0% | - Reinsurance reinstatement premiums related to the California wildfires negatively impacted the segment by **$64 million** in H1 2025[170](index=170&type=chunk) [Excess and Surplus Lines Insurance Results](index=54&type=section&id=Excess%20and%20Surplus%20Lines%20Insurance%20Results) The E&S segment's underwriting profit increased **80%** to **$36 million** in H1 2025, with the combined ratio improving to **89.8%**, driven by **13%** premium growth and favorable reserve development E&S Lines Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Earned premiums | $336 | $290 | | Underwriting profit | $36 | $20 | | Combined ratio | 89.8% | 93.7% | - New business written premiums grew **25%** in H1 2025 compared to H1 2024[182](index=182&type=chunk) [Life Insurance Results](index=57&type=section&id=Life%20Insurance%20Results) The Life Insurance segment's profit decreased to **$28 million** in H1 2025 due to actuarial assumption changes, despite a **2%** increase in earned premiums to **$163 million** and a **1%** rise in net in-force policy face amounts to **$85.5 billion** Life Insurance Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Earned premiums | $163 | $160 | | Life insurance segment profit | $28 | $32 | [Investments Results](index=58&type=section&id=Investments%20Results) The Investments segment's pretax profit fell **23%** to **$908 million** in H1 2025, as a **16%** increase in investment income was offset by a **46%** decrease in net investment gains, though new fixed-maturity purchases yielded **5.82%** Investments Results (Six months ended June 30) | (Dollars in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total investment income, net of expenses | $565 | $487 | | Investment gains and losses, net | $406 | $749 | | Investments profit, pretax | $908 | $1,174 | - The average pretax yield on new fixed-maturity securities acquired in H1 2025 was **5.82%**, compared to an average yield of **4.98%** on securities expected to mature through 2027[199](index=199&type=chunk)[201](index=201&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity and capital position with **$14.3 billion** in shareholders' equity and a **5.4%** debt-to-total-capital ratio, supported by positive operating cash flow and ample dividend capacity from its lead insurance subsidiary - The debt-to-total-capital ratio was **5.4%** at June 30, 2025, significantly below the **35%** covenant threshold[225](index=225&type=chunk) - Cash flow from property casualty underwriting was **$506 million** for H1 2025, down from **$723 million** in H1 2024, reflecting higher loss payments[223](index=223&type=chunk) - The company paid **$258 million** in cash dividends to shareholders during the first six months of 2025[234](index=234&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's market risk exposure through its **$28.8 billion** investment portfolio, primarily interest rate risk for fixed maturities and market price risk for equities, with a hypothetical **100 basis point** interest rate increase decreasing fixed-maturity fair value by **5.5%** Investment Portfolio Composition (Fair Value) | (Dollars in millions) | At June 30, 2025 | At December 31, 2024 | | :--- | :--- | :--- | | Taxable fixed maturities | $13,166 | $12,243 | | Tax-exempt fixed maturities | $3,911 | $3,939 | | Common equities | $11,309 | $10,836 | | Nonredeemable preferred equities | $340 | $349 | | Short-term investments | $100 | $298 | | **Total** | **$28,826** | **$27,665** | Interest Rate Sensitivity on Fixed-Maturity Portfolio | (Dollars in millions) | -100 bps | Current Fair Value | +100 bps | | :--- | :--- | :--- | :--- | | At June 30, 2025 | $17,985 | $17,077 | $16,093 | - At June 30, 2025, the fixed-maturity portfolio had net unrealized losses of **$458 million**, an improvement from **$553 million** at year-end 2024, primarily due to a decrease in U.S. Treasury yields[266](index=266&type=chunk)[274](index=274&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[277](index=277&type=chunk) - No changes in internal controls over financial reporting occurred in Q2 2025 that have materially affected, or are reasonably likely to materially affect, these controls[277](index=277&type=chunk) Part II – Other Information [Legal Proceedings](index=74&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that neither it nor any of its subsidiaries are involved in any litigation believed to be material, other than ordinary, routine litigation that is incidental to the nature of its business - The company is not involved in any material litigation outside of ordinary course of business[280](index=280&type=chunk) [Risk Factors](index=74&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors have not materially changed from its 2024 Form 10-K, though recent international trade policy changes and tariffs could impact inflation, supply chains, loss costs, and premiums - Risk factors have not materially changed from the 2024 Form 10-K[281](index=281&type=chunk) - A recent risk consideration is the impact of international trade policy changes and tariffs on inflation and supply chains, which could affect loss costs and premiums[282](index=282&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell unregistered equity securities or repurchase shares in Q2 2025, with **5,314,506** shares remaining available for purchase under existing authorization Share Repurchases in Q2 2025 | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | April 1-30, 2025 | — | $ — | | May 1-31, 2025 | — | $ — | | June 1-30, 2025 | — | $ — | - As of June 30, 2025, **5,314,506** shares may yet be purchased under the company's repurchase programs[283](index=283&type=chunk) [Other Information](index=76&type=section&id=Item%205.%20Other%20Information) The company discloses that neither the company nor any of its officers or directors adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the most recent fiscal quarter - No officer or director adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the last fiscal quarter[285](index=285&type=chunk) [Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Articles of Incorporation, certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002, and Interactive Data Files (XBRL) - Filed exhibits include Amended and Restated Articles of Incorporation, CEO/CFO certifications (SOX 302 and 906), and XBRL data files[287](index=287&type=chunk)

[Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Information%20and%20Reconciliation%20to%20Comparable%20GAAP%20Measures) [Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Information%20and%20Reconciliation%20to%20Comparable%20GAAP%20Measures) This section defines key non-GAAP financial measures and statutory accounting rules used by management to evaluate business performance and trends - **Non-GAAP operating income** is a key performance metric that excludes after-tax investment gains and losses and other significant non-recurring items from net income[9](index=9&type=chunk) - The **value creation ratio** measures shareholder value creation by combining book value per share growth with dividend yield, reflecting long-term progress[11](index=11&type=chunk) - **Statutory accounting rules**, defined by the NAIC, are used for insurance company regulation and differ from GAAP, providing data for industry comparisons[8](index=8&type=chunk)[11](index=11&type=chunk) - **Written premium**, a statutory accounting measure, represents the amount recorded for policies issued and is analyzed by management to assess business efforts[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income – Six Months Ended June 30, 2025](index=4&type=section&id=CFC%20and%20Subsidiaries%20Consolidation%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025) For H1 2025, total revenues reached $5.81 billion, with net income decreasing to $595 million from $1.07 billion year-over-year Consolidated Income Statement Highlights (Six Months Ended June 30) | Indicator (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $5,814 | Not Provided | | Total Expenses | $5,087 | Not Provided | | Income Before Income Taxes | $727 | Not Provided | | Net Income | $595 | $1,067 | [Consolidated Statements of Income – Three Months Ended June 30, 2025](index=5&type=section&id=CFC%20and%20Subsidiaries%20Consolidation%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202025) Q2 2025 saw total revenues of $3.25 billion and net income of $685 million, more than doubling the prior year's $312 million Consolidated Income Statement Highlights (Three Months Ended June 30) | Indicator (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $3,248 | Not Provided | | Total Expenses | $2,393 | Not Provided | | Income Before Income Taxes | $855 | Not Provided | | Net Income | $685 | $312 | [Consolidated Property Casualty Insurance Operations](index=7&type=section&id=Consolidated%20Property%20Casualty%20Insurance%20Operations) [Losses Incurred Detail](index=7&type=section&id=Losses%20Incurred%20Detail) Total consolidated losses incurred for H1 2025 increased to $2.94 billion from $2.29 billion, driven by higher catastrophe losses Consolidated Losses Incurred (Six Months Ended June 30, in millions) | Loss Category | 2025 | 2024 | | :--- | :--- | :--- | | Total large losses incurred | $206 | $281 | | Losses incurred but not reported | $601 | $783 | | Other losses excluding catastrophe losses | $1,429 | $1,418 | | Catastrophe losses | $838 | $339 | | **Total losses incurred** | **$2,943** | **$2,291** | [Loss Ratio Detail](index=9&type=section&id=Loss%20Ratio%20Detail) The consolidated total loss ratio rose to 63.1% from 56.3% in H1 2025, primarily due to an increased catastrophe loss ratio Consolidated Loss Ratio Detail (Six Months Ended June 30) | Loss Ratio Component | 2025 | 2024 | | :--- | :--- | :--- | | Total large loss ratio | 4.0% | 2.9% | | Losses incurred but not reported | 10.5% | 10.2% | | Other losses excluding catastrophe losses | 30.6% | 34.9% | | Catastrophe losses | 18.0% | 8.3% | | **Total loss ratio** | **63.1%** | **56.3%** | [Loss Claim Count Detail](index=11&type=section&id=Loss%20Claim%20Count%20Detail) Non-catastrophe large loss claims (over $2 million) increased to 54 in H1 2025 from 40, with Commercial Lines dominating Non-Catastrophe Large Loss Claim Count (Six Months Ended June 30) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Commercial Lines | 35 | 26 | | Personal Lines | 19 | 13 | | Excess & Surplus Lines | 0 | 1 | | **Consolidated Total** | **54** | **40** | [Loss and Loss Expense Analysis](index=16&type=section&id=Loss%20and%20Loss%20Expense%20Analysis) This section analyzes gross, ceded, and net loss and loss expense components, including paid losses and reserve changes, for P&C lines [For the Six Months Ended June 30, 2025](index=16&type=section&id=Loss%20and%20Loss%20Expense%20Analysis%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025) Total net loss and loss expense incurred for H1 2025 was $3.47 billion, including $2.25 billion in net paid losses Net Loss and Loss Expense Analysis (Six Months Ended June 30, 2025, in millions) | Component | Amount | | :--- | :--- | | Net Paid Losses | $2,253 | | Change in Net Case Reserves | $118 | | Change in Net IBNR Reserves | $572 | | Change in Net Loss Expense Reserves | $139 | | **Total Net Loss and Loss Expense Incurred** | **$3,474** | [For the Three Months Ended June 30, 2025](index=19&type=section&id=Loss%20and%20Loss%20Expense%20Analysis%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202025) Q2 2025 net loss and loss expense incurred totaled $1.59 billion, comprising $1.05 billion in net paid losses Net Loss and Loss Expense Analysis (Three Months Ended June 30, 2025, in millions) | Component | Amount | | :--- | :--- | | Net Paid Losses | $1,049 | | Change in Net Case Reserves | $83 | | Change in Net IBNR Reserves | $183 | | Change in Net Loss Expense Reserves | $75 | | **Total Net Loss and Loss Expense Incurred** | **$1,587** | [Quarterly Property Casualty Data by Segment](index=12&type=section&id=Quarterly%20Property%20Casualty%20Data) [Consolidated](index=21&type=section&id=Quarterly%20Property%20Casualty%20Data%20%E2%80%93%20Consolidated) Consolidated net written premiums grew 11% to $5.23 billion in H1 2025, but the GAAP combined ratio deteriorated to 103.8% Consolidated P&C Performance (Six Months Ended June 30) | Indicator (in millions, except ratios) | 2025 | 2024 | | :--- | :--- | :--- | | Net Written Premiums | $5,228 | $4,707 | | Earned Premiums | $4,661 | $4,067 | | GAAP Combined Ratio | 103.8% | 96.1% | | Catastrophe Loss Contribution | 18.4% | 8.6% | [Commercial Lines](index=12&type=section&id=Quarterly%20Property%20Casualty%20Data%20%E2%80%93%20Commercial%20Lines) Commercial Lines net written premiums rose 9% to $2.62 billion in H1 2025, with the GAAP combined ratio improving to 92.4% Commercial Lines Performance (Six Months Ended June 30) | Indicator (in millions, except ratios) | 2025 | 2024 | | :--- | :--- | :--- | | Net Written Premiums | $2,615 | $2,409 | | Earned Premiums | $2,391 | $2,189 | | GAAP Combined Ratio | 92.4% | 97.9% | | Catastrophe Loss Contribution | 5.4% | 7.8% | [Personal Lines](index=14&type=section&id=Quarterly%20Property%20Casualty%20Data%20%E2%80%93%20Personal%20Lines) Personal Lines net written premiums grew 17% to $1.65 billion in H1 2025, but the GAAP combined ratio surged to 124.9% due to catastrophes Personal Lines Performance (Six Months Ended June 30) | Indicator (in millions, except ratios) | 2025 | 2024 | | :--- | :--- | :--- | | Net Written Premiums | $1,652 | $1,414 | | Earned Premiums | $1,502 | $1,219 | | GAAP Combined Ratio | 124.9% | 100.6% | | Catastrophe Loss Contribution | 40.0% | 15.0% | [Excess & Surplus Lines](index=15&type=section&id=Quarterly%20Property%20Casualty%20Data%20%E2%80%93%20Excess%20%26%20Surplus%20Lines) Excess & Surplus Lines net written premiums grew 13% to $370 million in H1 2025, with the GAAP combined ratio improving to 89.8% Excess & Surplus Lines Performance (Six Months Ended June 30) | Indicator (in millions, except ratios) | 2025 | 2024 | | :--- | :--- | :--- | | Net Written Premiums | $370 | $326 | | Earned Premiums | $336 | $290 | | GAAP Combined Ratio | 89.8% | 93.7% | | Catastrophe Loss Contribution | 0.9% | 1.2% | [Statutory Statements of Income](index=29&type=section&id=Statutory%20Statements%20of%20Income) [Consolidated Cincinnati Insurance Companies](index=29&type=section&id=Consolidated%20Cincinnati%20Insurance%20Companies%20Statutory%20Statements%20of%20Income) Consolidated statutory net underwriting loss of $258 million in H1 2025 led to a 65% drop in net income to $125 million Statutory Income Highlights (Six Months Ended June 30, in millions) | Indicator | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Premiums Written | $5,055 | $4,558 | 11% | | Net Underwriting Profit (Loss) | $(258) | $52 | nm | | Net Income (Statutory) | $125 | $354 | (65%) | | Policyholders' Surplus | $8,850 | $7,732 | 14% | [The Cincinnati Life Insurance Company](index=30&type=section&id=The%20Cincinnati%20Life%20Insurance%20Company%20Statutory%20Statements%20of%20Income) Cincinnati Life Insurance Company reported a 9% increase in statutory net income to $48 million in H1 2025, with surplus up 21% Statutory Life Insurance Highlights (Six Months Ended June 30, in millions) | Indicator | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Premiums Written | $172 | $179 | (4%) | | Net Investment Income | $100 | $94 | 6% | | Net Income (Statutory) | $48 | $44 | 9% | | Policyholders' Surplus | $556 | $460 | 21% | [Other Quarterly Data](index=31&type=section&id=Other) [Quarterly Data - Other](index=31&type=section&id=Quarterly%20Data%20%E2%80%93%20Other) This section presents H1 2025 data for Cincinnati Re, Cincinnati Global, and noninsurance operations, detailing premiums and loss ratios Cincinnati Re Performance (Six Months Ended June 30, 2025) | Indicator (in millions, except ratios) | Amount | | :--- | :--- | | Net Written Premiums | $418 | | Earned Premiums | $303 | | Total Loss and Loss Expense Ratio | 84.5% | Cincinnati Global Performance (Six Months Ended June 30, 2025) | Indicator (in millions, except ratios) | Amount | | :--- | :--- | | Net Written Premiums | $173 | | Earned Premiums | $129 | | Total Loss and Loss Expense Ratio | 48.4% | - Noninsurance operations, including the parent company and CFC Investment Company, incurred a total loss of **$39 million** for the first six months of 2025[69](index=69&type=chunk)[72](index=72&type=chunk)

Financial Performance Highlights - Cincinnati Financial Corporation reported total revenues of $3,248 million for the second quarter of 2025, a 28% increase from $2,544 million in the same period of 2024 [2] - Net income for the second quarter of 2025 was $685 million, or $4.34 per share, compared to $312 million, or $1.98 per share, in the second quarter of 2024, marking a 120% increase [2][8] - Non-GAAP operating income for the second quarter of 2025 was $311 million, or $1.97 per share, up 52% from $204 million, or $1.29 per share, in the second quarter of 2024 [2][8] - The company declared a cash dividend of $0.87 per share, a 7% increase from $0.81 per share in the second quarter of 2024 [2] Insurance Operations Highlights - The property casualty combined ratio improved to 94.9% in the second quarter of 2025, down from 98.5% in the same quarter of 2024 [6][9] - Property casualty net written premiums grew by 11% in both the second quarter and the first half of 2025, surpassing $5 billion for the first time in the first six months [7][14] - The company experienced a 20% growth in personal lines net written premiums in the second quarter of 2025, driven by higher agency renewal premiums [20] Investment Performance Highlights - Pretax investment income for the second quarter of 2025 rose 18% to $285 million, driven by a 24% increase in bond interest income [7][23] - Total investment income after-tax for the second quarter was $236 million, a 17% increase from $202 million in the same quarter of 2024 [23] - The fair value of total investments increased by 4% to $30.564 billion at June 30, 2025, compared to $29.361 billion at year-end 2024 [32] Balance Sheet Highlights - The book value per share reached a record high of $91.46 at June 30, 2025, up 2.6% from $89.11 at year-end 2024 [27][32] - Total assets increased to $38,842 million at June 30, 2025, compared to $36,501 million at December 31, 2024 [27] - Shareholders' equity rose to $14,301 million at June 30, 2025, up from $13,935 million at year-end 2024 [27]

Core Insights - Cincinnati Financial Corporation (CINF) is anticipated to show revenue growth but a decline in net income for Q2 2025, with revenues expected to reach $2.9 billion, reflecting a 15.5% increase year-over-year [1][10] - The consensus estimate for earnings per share is $1.37, indicating a 6.2% year-over-year increase [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for CINF's second-quarter revenues is $2.9 billion, up 15.5% from the previous year [1][10] - The earnings per share estimate has increased by 1 cent in the past week, with a consensus of $1.37 [2] Earnings Prediction Model - CINF is predicted to beat earnings expectations due to a positive Earnings ESP of +3.65% and a Zacks Rank of 3 (Hold) [3][4] Factors Influencing Q2 Results - Increased exposure, better pricing, and higher premiums from Cincinnati Re are expected to positively impact earned premiums, estimated at $2.5 billion, a 15.2% increase from last year [5] - Personal Lines revenues are projected at $794 million, benefiting from higher policy retention rates and changes in policy deductibles [6] - Excess and Surplus lines revenues are expected to reach $172 million, driven by improved agency renewal and new business premiums [7] - Investment income is anticipated to be $269.6 million, an 11.4% increase year-over-year [8] Expense and Profitability Outlook - Total expenses are expected to rise by 14.3% to $2.5 billion, influenced by higher insurance losses and operating expenses [9] - The combined ratio is estimated to improve to 97.3, reflecting a 120 basis point enhancement year-over-year, aided by a benign catastrophe environment [9][10]

Core Insights - Analysts project Cincinnati Financial (CINF) will report quarterly earnings of $1.37 per share, a 6.2% increase year over year, with revenues expected to reach $2.78 billion, reflecting a 15.4% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] - Revisions to earnings estimates are crucial for predicting investor actions, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Projections - Analysts forecast 'Investment income, net of expenses- Total' to reach $278.79 million, a 15.2% year-over-year increase [4] - 'Revenue- Excess and surplus lines insurance- Earned premiums' is expected to be $171.20 million, indicating a 13.4% year-over-year change [4] - 'Revenues- Personal Lines Insurance- Earned premiums' is projected at $793.28 million, reflecting a 25.7% increase year over year [4] Insurance Metrics - 'Revenues- Life Insurance Subsidiary- Earned premiums' is estimated at $82.31 million, a 1.6% increase from the prior-year quarter [5] - The 'Excess and surplus lines insurance - Combined ratio' is expected to be 92.7%, down from 95.4% a year ago [5] - 'Personal Lines Insurance - Combined ratio' is projected at 104.1%, compared to 106.9% in the previous year [5] Loss and Expense Estimates - 'Commercial Lines Insurance - Loss and loss expenses' is expected to be 68.0%, up from 67.4% in the same quarter last year [6] - 'Excess and surplus lines insurance - Loss and loss expenses' is projected at 65.5%, compared to 67.5% in the previous year [6] - 'Personal Lines Insurance - Loss and loss expenses' is estimated at 74.4%, down from 77.6% a year ago [7] Underwriting Expenses - 'Excess and surplus lines insurance - Underwriting expenses' is projected to be 27.1%, down from 27.9% in the same quarter last year [8] - 'Personal Lines Insurance - Underwriting expenses' is expected to be 29.7%, slightly up from 29.3% in the previous year [8] Stock Performance - Over the past month, shares of Cincinnati Financial have returned +2.9%, compared to the Zacks S&P 500 composite's +5.9% change [8]

Company Overview - Cincinnati Financial (CINF) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.37, reflecting a +6.2% change, and revenues anticipated to reach $2.78 billion, up 15.5% from the previous year [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for July 28, and the stock price may react positively if the actual results exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Cincinnati Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.65%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The company has a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a favorable outlook for the upcoming earnings [12]. Historical Performance - In the last reported quarter, Cincinnati Financial was expected to post a loss of $0.61 per share but instead reported a loss of -$0.24, achieving a surprise of +60.66% [13]. - Over the past four quarters, the company has successfully beaten consensus EPS estimates three times [14]. Industry Context - The Hartford Insurance Group, a peer in the Property and Casualty insurance sector, is also expected to report earnings of $2.77 per share, reflecting a +10.8% year-over-year change, with revenues projected at $4.89 billion, up 9.6% [18][19].

Core Viewpoint - The article compares Essent Group (ESNT) and Cincinnati Financial (CINF) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both ESNT and CINF currently have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share to assess undervaluation [4] Specific Valuation Comparisons - ESNT has a forward P/E ratio of 8.66, while CINF has a significantly higher forward P/E of 27.65 [5] - The PEG ratio for ESNT is 3.44, compared to CINF's PEG ratio of 9.70, indicating ESNT may be more attractive based on expected earnings growth [5] - ESNT's P/B ratio stands at 1.09, while CINF's P/B ratio is 1.66, suggesting ESNT is more favorably valued in terms of market value versus book value [6] Overall Assessment - Based on the valuation metrics analyzed, ESNT is considered the superior value option compared to CINF [7]

Core Viewpoint - Cincinnati Financial Corporation (CINF) is currently experiencing a short-term bullish trend, trading above its 200-day simple moving average, with a share price of $146.09 as of July 8, 2025, which is down 9.6% from its 52-week high of $161.75 [1]. Group 1: Financial Performance - CINF has a market capitalization of $22.83 billion, with an average trading volume of 0.6 million shares over the last three months [3]. - The company’s shares have gained 22.7% over the past year, outperforming the Finance sector and the S&P 500, which returned 19.1% and 10.2% respectively [4]. - The Zacks Consensus Estimate for CINF's 2025 revenues is $11.14 billion, indicating an 11.9% year-over-year improvement [9]. - Earnings have grown 15.8% over the past five years, with CINF beating earnings estimates in three of the last four quarters, averaging a surprise of 39.04% [9]. Group 2: Growth and Valuation - CINF is currently trading at a forward 12-month price-to-book ratio of 1.67X, above the industry average of 1.53X [10]. - The consensus estimates for 2026 earnings per share and revenues indicate increases of 55% and 8.1% respectively from the 2025 estimates [9]. - The average price target from six analysts for CINF is $152.83 per share, suggesting a potential upside of 45% from the last closing price [12]. Group 3: Dividend and Capital Management - CINF has a strong history of returning capital to shareholders, with 65 consecutive years of dividend increases and a current yield of 2.3%, which is above the industry average of 0.2% [17]. - The company’s free cash flow conversion has remained above 150% over the last few quarters, reflecting solid earnings [16]. Group 4: Strategic Advantages - CINF benefits from prudent pricing, an agent-centric model, and disciplined growth in Cincinnati Re, which supports premium growth [8][14]. - The Excess and Surplus line has performed well, benefiting from new business premiums and higher renewal pricing [15]. - The company is leveraging technology and data to identify new exposures in emerging businesses, which should enhance its growth prospects [15].

Group 1 - Cincinnati Financial Corporation plans to release its second-quarter 2025 results on July 28, 2025, after the close of regular trading on the Nasdaq Stock Market [1] - A conference call to discuss the second-quarter 2025 results will be held on July 29, 2025, at 11 a.m. ET [1] - The call webcast can be accessed via investors.cinfin.com, with a replay available approximately two hours after the event's completion [1] Group 2 - Cincinnati Financial Corporation primarily offers business, home, and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies [2] - The same local independent insurance agencies that market those policies may also offer products from the company's other subsidiaries, including life insurance, fixed annuities, and surplus lines property and casualty insurance [2] - Additional information about the company can be found at cinfin.com [2]