US insurer Cincinnati posts rise in Q4 and FY’25 net income

Core Insights - Cincinnati Financial Corporation reported a net income of $676 million in Q4 2025, up from $405 million in the previous year, with a combined ratio of 85.2% in its property and casualty (P&C) insurance segment [1][5] - For the full year 2025, net income reached $2.4 billion, a 4% increase from $2.3 billion in 2024, with earned premiums rising by 12% to nearly $10 billion [2] Financial Performance - Group-wide earned premiums increased by 10% year-on-year to $2.6 billion in Q4 2025, while investment income rose by 9% to $305 million, leading to total revenues of $3.1 billion, a 22% increase [2] - For the full year 2025, total revenues increased by 11% to $12.6 billion, with investment income growing by 14% to $1.2 billion [2] P&C Insurance Operations - In Q4 2025, earned premiums for the P&C insurance operations rose by 10% to $2.5 billion, with total revenues also increasing by 10% to $2.5 billion [3] - For the full year 2025, earned premiums increased by 13% to $9.7 billion, with total revenues matching this growth at $9.7 billion [3] Underwriting and Losses - Loss and loss expenses increased by 11% to $1.4 billion in Q4 2025 and by 17% to $6.3 billion for the full year [4] - Underwriting profit for Q4 2025 increased by 7% to $378 million, but decreased by 14% to $501 million for the full year [4] Combined Ratio - The P&C insurance combined ratio increased by 0.5 percentage points to 85.2% in Q4 2025 and by 1.5 percentage points to 94.9% for the full year [5] - The company achieved an underwriting profit for 14 consecutive years, with a full-year combined ratio of 94.9% within the long-term goal of 92% to 98% [6] Additional Insights - The current accident year combined ratio before catastrophe losses improved by 0.4 percentage points to 86.1% for 2025, despite the impact of $52 million in reinsurance reinstatement premiums related to California wildfires [7] - The life insurance subsidiary contributed positively, with a 16% increase in net income to $106 million [7]