Core Viewpoint - bLong Financial significantly reduced its holdings in the iShares MSCI Europe Financials ETF (EUFN) during Q3 2025, selling over $5 million worth of shares while increasing its investment in the Fundstrat Granny Shots US Large Cap ETF (GRNY) by over $8 million [1][2][7]. Group 1: bLong Financial's Holdings - bLong Financial sold 201,138 shares of EUFN, resulting in a decrease in the value of its position from $15.34 million in Q2 to $9.75 million in Q3, representing a decline of $5.6 million [2][7]. - The percentage of EUFN in bLong's assets under management (AUM) fell from 11.8% in Q2 to 6.8% in Q3 [2][3]. - After the sale, EUFN remains bLong's third-largest holding, despite the significant quarter-on-quarter reduction of 36% in its position [7]. Group 2: Performance of EUFN - As of December 1, 2025, EUFN shares were priced at $34.83, reflecting a year-over-year increase of 45.9% [3]. - The ETF outperformed the S&P 500 by 33.2 percentage points over the past year [3]. - EUFN has a net asset value of $4.26 billion and a trailing yield of 3.8% [3]. Group 3: Investment Strategy and Market Context - The iShares MSCI Europe Financials ETF provides targeted access to European financial markets through a diversified portfolio of large- and mid-sized financial companies [4][6]. - bLong Financial's recent actions indicate a potential shift in focus from European investments back to U.S. equities, as evidenced by the re-opening of its position in GRNY [8][9].

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $1.1 billion, including $675 million after-tax from the increase in fair value of equity securities still held [5] - Non-GAAP operating income for Q3 2025 was $449 million, more than double compared to the same quarter last year [5] - The property casualty combined ratio improved to 88.2%, a 9.2 percentage point improvement year-over-year, with catastrophe losses decreasing by 9.3 points [5][6] - The accident year 2025 combined ratio before catastrophe losses improved by 2.1 percentage points compared to accident year 2024 [6] Business Line Data and Key Metrics Changes - Consolidated property casualty net written premiums grew by 9% for the quarter [7] - Commercial lines net written premiums increased by 5% with a combined ratio of 91.1%, improving by 1.9 percentage points [8] - Personal lines net written premiums grew by 14%, with a combined ratio of 88.2%, improving by 22.1 percentage points [8] - Excess and surplus lines saw a net written premium growth of 11% and a combined ratio of 89.8%, improving by 5.5 percentage points [8] - Cincinnati RE's net written premiums decreased by 2%, with a combined ratio of 80.8% [9] - Cincinnati Global's combined ratio was 61.2%, with premium growth of 6% [9] - Life insurance subsidiary reported a 40% net income growth, with term life insurance earned premiums growing by 5% [9] Market Data and Key Metrics Changes - Average renewal price increases for most lines of business were lower than Q2 2025 but remained healthy, with commercial lines averaging mid-single-digit increases and E&S lines in the high single-digit range [7] - Personal lines included homeowner in the low double-digit range and personal auto in the high single-digit range [7] Company Strategy and Development Direction - The company remains confident in the long-term direction and strategy of its insurance business, focusing on pricing and risk segmentation [5][16] - The company aims to continue building strong relationships with independent insurance agents and enhancing underwriting decisions [5][16] - The insurer financial strength ratings were upgraded to AA- by Fitch Ratings, reflecting a decade of profitability and growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating performance and long-term strategy, highlighting strong investment income growth and effective risk management [5][16] - The company is focused on maintaining a stable and consistent market presence, particularly in California, while adapting to updated risk models following significant fire losses [43][44] Other Important Information - The company paid $134 million in dividends during Q3 2025 and repurchased approximately 404,000 shares at an average price of $149.75 [14] - The quarter-end book value reached a record high of $98.76 per share, with $15.4 billion of GAAP consolidated shareholders' equity [15] Q&A Session Summary Question: Insights on commercial auto performance and prior year development - Management noted favorable development across all lines, with commercial auto showing profitability despite some prior year development concerns [20][21] Question: Concerns regarding large claims in commercial lines - Management indicated that while large losses increased, there was no unexpected concentration of large losses, and the overall trend remains manageable [25][26] Question: General liability performance compared to commercial auto - Management reiterated confidence in casualty lines, citing a consistent process and favorable development across accident years [31][32] Question: Changes in credit quality of the investment portfolio - Management confirmed a focus on high-quality bonds, maintaining a conservative approach to credit quality [34] Question: New business trends and competitive pricing environment - Management expressed optimism about new business growth across segments, emphasizing a disciplined approach to pricing and underwriting [38][39] Question: Catastrophe reinsurance strategy for 2026 - Management stated that the strategy for purchasing property CAT cover will remain consistent, focusing on balance sheet protection [77][78]