[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]

Core Viewpoint - Cincinnati Financial Corporation has appointed Edward S. Wilkins, CPA, to its board of directors, enhancing its audit committee with his extensive experience in the financial services sector [1][5]. Group 1: Appointment Details - Edward S. Wilkins has been appointed to the board and audit committee of Cincinnati Financial Corporation, marking the addition of a 14th seat [1]. - Wilkins is a retired Audit & Assurance partner from Deloitte & Touche LLP, with over 35 years of experience, particularly in the financial services sector [2]. - His role at Deloitte included leading the audit analytics practice, integrating large data and analytics into audit approaches [2]. Group 2: Professional Background - Wilkins has represented Deloitte on several influential committees, including the Public Company Accounting Oversight Board's Data and Technology Task Force [3]. - He continues to share his expertise as an adjunct professor at Vanderbilt University and advises on continuous auditing and reporting [4]. Group 3: Company Insights - Stephen M. Spray, CEO of Cincinnati Financial, emphasized that Wilkins' background with large insurance companies makes him an ideal candidate for the board, particularly in navigating the complex regulatory environment [5]. - Cincinnati Financial Corporation primarily offers business, home, and auto insurance through The Cincinnati Insurance Company and its subsidiaries [6].

Company Overview - Cincinnati Financial (CINF) shares have increased by approximately 6.9% over the past month, outperforming the S&P 500 index [1] - The most recent earnings report is crucial for understanding the key drivers behind this performance [1] Earnings Estimates - Estimates for Cincinnati Financial have remained flat over the past month, indicating no significant changes in expectations [2] VGM Scores - Cincinnati Financial has a subpar Growth Score of D and a similar score for momentum, while its value score is C, placing it in the middle 20% for this investment strategy [3] - The overall aggregate VGM Score for Cincinnati Financial is F, which is important for investors not focused on a single strategy [3] Outlook - Cincinnati Financial holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4] Industry Performance - Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry, where RenaissanceRe (RNR) has seen a gain of 1.1% over the past month [5] - RenaissanceRe reported revenues of $3.13 billion for the last quarter, reflecting a year-over-year increase of 10.3%, while its EPS was -$1.49 compared to $12.18 a year ago [5] - For the current quarter, RenaissanceRe is expected to post earnings of $10.17 per share, which represents a year-over-year decline of 18.1% [6] - The Zacks Consensus Estimate for RenaissanceRe has decreased by 6.7% over the last 30 days, resulting in a Zacks Rank of 3 (Hold) and a VGM Score of F [6]