Cincinnati Financial(CINF) - 2025 Q3 - Quarterly Results

Premiums and Revenues - Total earned premium for the nine months ended September 30, 2025, was $7,391 million, with property casualty contributing $7,145 million and life insurance contributing $307 million[11] - Total revenues for the three months ended September 30, 2025, were $3,726 million, with property casualty contributing $2,602 million and life insurance contributing $104 million[13] - The company reported a total of $1,370 million in net written premiums for homeowner insurance over the last twelve months, up 32% year-over-year[31] - Net written premiums for personal auto increased to $328 million, representing an 11% year-over-year growth[31] - Net written premiums for the twelve months ended December 31, 2025, reached $7,721 million, a 10.3% increase from $7,000 million in the previous year[41] - Earned premiums for the three months ended December 31, 2025, were $2,484 million, reflecting a year-over-year increase of 9.5% from $2,284 million[41] Net Income and Financial Performance - Net income for the nine months ended September 30, 2025, was $1,717 million, compared to $1,887 million for the same period in the prior year, reflecting a decrease of 9.0%[11] - Net income for the three months ended September 30, 2025, was $1,122 million, compared to $820 million for the same period in the prior year, representing an increase of 37.0%[13] - The company reported a net underwriting profit surged to $260 million for the three months ended September 30, 2025, compared to $16 million in the same period of 2024[57] - Net income (statutory) for Q3 2025 was $37 million, representing an increase of 61% compared to $23 million in Q3 2024[62] Loss Ratios and Incurred Losses - The loss ratio for property casualty insurance operations was 72.5% for the nine months ended September 30, 2025, indicating a stable performance in underwriting[11] - Total losses incurred for the twelve months ended December 31, 2025, reached $4,550 million, an increase from $3,557 million for the previous year[17] - The total loss ratio for the three months ended December 31, 2025, was 48.5%, a decrease from 54.9% in the previous quarter[19] - The total loss ratio for the current accident year reached 58.4%, with a significant increase from 41.1% in the previous year[21] - The total loss and loss expense ratio for the twelve months ended December 31, 2025, was 80.6%, compared to 77.0% in the previous year, indicating a deterioration in loss performance[41] Investment Performance - Investment income, net of expenses, for the nine months ended September 30, 2025, was $860 million, with property casualty generating $627 million and life insurance generating $151 million[11] - The total investment gains and losses, net for the nine months ended September 30, 2025, amounted to $1,259 million, highlighting strong investment performance[11] - Gross investment income earned increased by 22% to $208 million for the three months ended September 30, 2025, up from $170 million in 2024[57] Catastrophe and Large Losses - Catastrophe losses for the three months ended December 31, 2025, were $83 million, significantly lower than $280 million in the previous quarter[17] - The company reported 6 large losses greater than $5 million in the current accident year, compared to 2 in the previous quarter[25] - The contribution from catastrophe losses for the twelve months ended December 31, 2025, was $10.5 million, compared to $8.4 million in the previous year, indicating increased impact from catastrophic events[44] Underwriting and Expense Ratios - The statutory combined ratio for the three months ended December 31, 2025, was 88.7%, down from 92.9% in the previous year, showing improved underwriting performance[44] - The net underwriting expense ratio for the twelve months ended December 31, 2025, was 28.3%, slightly improved from 28.5% in the previous year[41] - The net underwriting expense ratio for Q3 2025 was 25.9% for Q3 2025, compared to 31.2% in Q3 2024, indicating improved cost management[54] Ceded Premiums and Reserves - The company ceded premiums totaling $450 million for the nine months ended September 30, 2025, with property casualty ceding $389 million and life insurance ceding $61 million[11] - The company reported a total of $3,862 million in net loss and loss expense reserves as of September 30, 2025[36] Operational Metrics - The company’s consolidated property casualty data includes results from Cincinnati Re operations and Cincinnati Global, indicating a diversified operational structure[22] - The agency renewal written premiums for the three months ended December 31, 2025, increased by 13% year-over-year, reaching $2,037 million[41] - The agency new business written premiums for the three months ended December 31, 2025, decreased by 12% year-over-year, totaling $356 million[41]