Cincinnati Financial Reports Third-Quarter 2026 Results

Higher investment income and nine-month underwriting profit contrasted with weaker quarterly investment gains and underwriting results.

Rhea-AI Summary

Cincinnati Financial (Nasdaq: CINF) reported third-quarter 2026 net income of $459 million, down from the same quarter last year. Diluted earnings fell to $2.96 per share from $7.11, while after-tax investment gains dropped to $16 million from $673 million. Non-GAAP operating income declined 1% to $443 million.

Property casualty underwriting profit fell 18% to $240 million. Its combined ratio, measuring claims and underwriting expenses against earned premiums, worsened to 90.9% from 88.2%. Net written premiums grew 2%, but agency new business premiums fell 12%. Investment income rose 10% to $325 million.

For the first nine months, net income rose 16% to $1.988 billion and non-GAAP operating income increased 38% to $997 million. Book value reached $105.42 per share at September 30, up $3.07 since year-end. The nine-month value creation ratio fell to 5.8% from 13.8%.

24 points · 0 major

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0 major · 15 points

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Positive

• Moderate pointNine-month net income rose 16% to $1.988 billion; diluted earnings increased 17% to $12.75.
• Moderate pointNine-month non-GAAP operating income increased 38% to $997 million; per-share income rose 40% to $6.39.
• Moderate pointNine-month property casualty underwriting profit increased 174% to $337 million.
• Moderate pointNine-month property casualty combined ratio improved to 95.8% from 98.4%.
• Moderate pointInvestment income increased 10% to $325 million quarterly and 12% to $962 million over nine months.
• Moderate pointEarned premiums rose 5% to $2.690 billion quarterly and 7% to $7.929 billion over nine months.
• Moderate pointNine-month total revenue increased 7% to $10.184 billion.
• Moderate pointProperty casualty net written premiums grew 2% to $2.550 billion quarterly and 4% over nine months.

16 minor points

• Minor pointThird-quarter bond interest income increased 11%.
• Minor pointThird-quarter favorable prior-year reserve development provided $94 million, versus $22 million a year earlier.
• Minor pointCurrent-year property casualty combined ratio excluding catastrophes improved to 83.7% from 84.7% in the third quarter.
• Minor pointLife insurance subsidiary quarterly net income rose $3 million to $31 million; term life earned premiums grew 2%.
• Minor pointBook value reached $105.42 per share at September 30, up $3.07 since year-end.
• Minor pointParent company cash and marketable securities reached $6.044 billion, up 9% from year-end 2025.
• Minor pointDeclared dividends increased 8% to $0.94 per share quarterly and $2.82 over nine months.
• Minor pointNew agency appointments totaled 300 in the first nine months, including 44 marketing only personal lines.
• Minor pointAgencies appointed since early 2025 contributed $33 million, or 10%, of third-quarter new business premiums.
• Minor pointCincinnati Specialty Underwriters grew 7% through September versus the first nine months of 2025.
• Minor pointCincinnati Global Underwriting grew 13% through September versus the first nine months of 2025.
• Minor pointCincinnati Re grew 11% through September versus the first nine months of 2025.
• Minor pointCommercial lines earned premiums grew 3% to $1.270 billion quarterly and 4% over nine months.
• Minor pointCommercial lines net written premiums increased less than 1% quarterly and 2% over nine months.
• Minor pointCommercial lines quarterly renewal premiums rose 1%, with average renewal pricing increases in the low-single-digit percent range.
• Minor pointPersonal lines earned premiums increased 6% to $888 million quarterly and 13% over nine months.

Negative

• Moderate pointThird-quarter net income fell 59% to $459 million; diluted earnings declined 58% to $2.96.
• Moderate pointThird-quarter total revenue declined 18% to $3.047 billion.
• Moderate pointThird-quarter non-GAAP operating income fell 1% to $443 million, although per-share income reached $2.86 versus $2.85.
• Moderate pointThird-quarter property casualty underwriting profit declined 18% to $240 million.
• Moderate pointThird-quarter property casualty combined ratio worsened to 90.9% from 88.2%, including 7.0 points of higher catastrophe losses.
• Moderate pointProperty casualty agency new business premiums fell 12% quarterly to $315 million and over nine months to $1.007 billion.
• Moderate pointNine-month value creation ratio declined to 5.8% from 13.8%.

8 minor points

• Minor pointThird-quarter after-tax investment gains fell 98% to $16 million from $673 million.
• Minor pointProperty casualty underwriting expense ratio rose 0.4 percentage points to 29.7% in both reporting periods.
• Minor pointThird-quarter stock portfolio dividends decreased 4%.
• Minor pointTotal investment fair value decreased less than 1% during the three months ended September 30.
• Minor pointCommercial lines underwriting profit fell 17% to $92 million quarterly and 79% to $61 million over nine months.
• Minor pointCommercial lines combined ratio worsened to 92.8% from 91.1% quarterly and 98.5% from 92.0% over nine months.
• Minor pointCommercial lines quarterly agency new business premiums declined 2% to $182 million.
• Minor pointCommercial lines nine-month current-year combined ratio excluding catastrophes worsened to 92.0% from 89.8%.

News Explained

The third-quarter results report lists a cash dividend declared of $0.94 per share, compared with $0.87 a year earlier, meaning the reported per-share cash distribution is higher.

Key Figures

Net income: $459 million vs. $1.122 billion Diluted EPS: $2.96 vs. $7.11 Non-GAAP operating income: $443 million vs. $449 million +5 more

Net income

$459 million vs. $1.122 billion

Third-quarter 2026 vs. third-quarter 2025

Diluted EPS

$2.96 vs. $7.11

Third-quarter 2026 vs. third-quarter 2025

Non-GAAP operating income

$443 million vs. $449 million

Third-quarter 2026 vs. third-quarter 2025

Property casualty combined ratio

90.9% vs. 88.2%

Third-quarter 2026 vs. third-quarter 2025

Non-GAAP operating income

$997 million vs. $723 million

First nine months of 2026 vs. first nine months of 2025

Property casualty combined ratio

95.8% vs. 98.4%

First nine months of 2026 vs. first nine months of 2025

Book value per share

$105.42

At September 30, 2026; up $3.07 since year-end

Cash dividend declared per share

$0.94 vs. $0.87

Third-quarter 2026 vs. third-quarter 2025

Key Terms

non-gaap, combined ratio, underwriting profit

3 terms

non-gaap financial

"Third-quarter 2026 non-GAAP operating income"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

combined ratio financial

"90.9% third-quarter 2026 property casualty combined ratio"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

underwriting profit financial

"$41 million from property casualty underwriting profit"

Underwriting profit is the money an insurer keeps from its core insurance business after paying claims, covering operating costs, and accounting for reinsurance — essentially premiums collected minus the direct costs of providing coverage. It matters to investors because it shows whether the company’s insurance operations are sustainably profitable on their own, like the margin a store earns on goods sold before counting interest or investment gains.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CINCINNATI, Oct. 26, 2026 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

• Third-quarter 2026 net income of $459 million, or $2.96 per share, compared with $1.122 billion, or $7.11 per share, in the third quarter of 2025, after recognizing a less than $1 million third-quarter 2026 after-tax increase in the fair value of equity securities still held.
• Third-quarter 2026 non-GAAP operating income* of $443 million, or $2.86 per share, compared with $449 million, or $2.85 per share, in the third quarter of last year.
• $663 million decrease in third-quarter 2026 net income, compared with third-quarter 2025, including the effects of after-tax net decreases of $657 million from net investment gains and $41 million from property casualty underwriting profit, partially offset by an increase of $24 million from investment income.
• $105.42 book value per share at September 30, 2026, up $3.07 since year-end.
• 5.8% value creation ratio for the first nine months of 2026, compared with 13.8% for the same period of 2025.

Financial Highlights
(Dollars in millions, except per share data)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Revenue Data
Earned premiums		$  2,690		$  2,567		5		$   7,929		$  7,391		7
Investment income, net of expenses		325		295		10		962		860		12
Total revenues		3,047		3,726		(18)		10,184		9,540		7
Income Statement Data
Net income		$     459		$  1,122		(59)		$   1,988		$  1,717		16
Investment gains and losses, after-tax		16		673		(98)		991		994		0
Non-GAAP operating income*		$     443		$     449		(1)		$      997		$     723		38
Per Share Data (diluted)
Net income		$    2.96		$    7.11		(58)		$   12.75		$  10.88		17
Investment gains and losses, after-tax		0.10		4.26		(98)		6.36		6.30		1
Non-GAAP operating income*		$    2.86		$    2.85		0		$     6.39		$    4.58		40
Book value								$ 105.42		$  98.76		7
Cash dividend declared		$    0.94		$    0.87		8		$     2.82		$    2.61		8
Diluted weighted average shares outstanding		155.1		157.8		(2)		155.9		157.8		(1)

*	The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures section defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.
	Forward-looking statements and related assumptions are subject to the risks outlined in the company's safe harbor statement.

Insurance Operations Highlights

• 90.9% third-quarter 2026 property casualty combined ratio, increased from 88.2% for the third quarter of 2025.
• 2% growth in third-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
• $315 million third-quarter 2026 property casualty new business written premiums, down 12%. Agencies appointed since the beginning of 2025 contributed $33 million or 10% of total new business written premiums.
• $31 million third-quarter 2026 life insurance subsidiary net income, up $3 million compared with the third quarter of 2025, and 2% growth in third-quarter 2026 term life insurance earned premiums.

Investment and Balance Sheet Highlights

• 10% or $30 million increase in third-quarter 2026 pretax investment income, including an 11% increase in bond interest income and a 4% decrease in stock portfolio dividends.
• Three-month decrease of less than 1% in fair value of total investments at September 30, 2026, including a less than 1% decrease for both the bond portfolio and the stock portfolio.
• $6.044 billion parent company cash and marketable securities at September 30, 2026, up 9% from year-end 2025.

Property Casualty Operations Maintaining Profitability
Stephen M. Spray, president and chief executive officer, commented: "Over the past few months our field claims teams and headquarters claims associates have been busy. I'm proud of their efforts as they brought compassion and expertise to our agents and policyholders, quickly resolving claims and helping affected communities begin to move forward.

"This quarter is a nice example of the impact our many growth, profitability and diversification initiatives are having on our insurance business. While catastrophe losses grew by 7.0 points compared with last year's third quarter – moving closer to historical averages for the third quarter – our overall combined ratio of 90.9% reflects our continued efforts in pricing segmentation across our organization and the purposeful diversification of our growth.

"On a nine-month basis we achieved healthy non-GAAP operating income, increasing that measure 38% to $997 million. Our insurance operations continued to lead the way. With three-quarters of the year behind us, our 95.8% combined ratio is comfortably within our long-term target of 92% to 98%."

Growth Reflecting Underwriting Discipline
"In this competitive market, we are balancing new business opportunities with underwriting discipline. Total property casualty net written premiums grew 4% through the first nine months of 2026, reflecting average renewal price increases for each of our property casualty insurance segments and most of our major lines of business.

"Our growth strategy plays to the strengths of each area where we do business. We consider many factors such as historic loss ratios, current market conditions, weather patterns and our view of future expectations for particular lines of business to create an appropriate plan for targeted profitable growth. That work creates a generally stable underwriting appetite to support our agents and enhance our mutual success.

"We also continue to benefit from the introduction of new specialty products through The Cincinnati Specialty Underwriters Insurance Company and Cincinnati Global Underwriting, along with the ability to grow Cincinnati Re opportunistically as the reinsurance market changes. Through September, these three areas have grown 7%, 13% and 11%, respectively, compared with the first nine months of 2025."

Insurance Profitability Fueling Investments
"Consolidated cash and total investments topped $34 billion. Since December, book value per share has risen to $105.42, driven by the contribution of our insurance operations and the strength of our investment portfolio.

"This ample capital allows us to execute on our long-term strategies and, at the same time, continue to not just pay dividends to shareholders, but increase them, through the normal variability of investment and insurance markets as we've done for 66 years."

Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Earned premiums		$  2,605		$   2,484		5		$  7,672		$  7,145		7
Fee revenues		4		4		0		11		11		0
Total revenues		2,609		2,488		5		7,683		7,156		7
Loss and loss expenses		1,595		1,464		9		5,070		4,938		3
Underwriting expenses		774		731		6		2,276		2,095		9
Underwriting profit		$     240		$      293		(18)		$     337		$     123		174
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Loss and loss expenses		61.2 %		58.9 %		2.3		66.1 %		69.1 %		(3.0)
Underwriting expenses		29.7		29.3		0.4		29.7		29.3		0.4
Combined ratio		90.9 %		88.2 %		2.7		95.8 %		98.4 %		(2.6)
						% Change						% Change
Agency renewal written premiums		$  2,095		$   2,037		3		$  6,394		$  6,084		5
Agency new business written premiums		315		356		(12)		1,007		1,143		(12)
Other written premiums		140		100		40		642		494		30
Net written premiums		$  2,550		$   2,493		2		$  8,043		$  7,721		4
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Current accident year before catastrophe losses		54.0 %		55.4 %		(1.4)		56.8 %		57.4 %		(0.6)
Current accident year catastrophe losses		10.8		4.4		6.4		12.2		14.2		(2.0)
Prior accident years before catastrophe losses		(3.5)		(0.2)		(3.3)		(2.7)		(1.6)		(1.1)
Prior accident years catastrophe losses		(0.1)		(0.7)		0.6		(0.2)		(0.9)		0.7
Loss and loss expense ratio		61.2 %		58.9 %		2.3		66.1 %		69.1 %		(3.0)
Current accident year combined ratio before   catastrophe losses		83.7 %		84.7 %		(1.0)		86.5 %		86.7 %		(0.2)

• $57 million or 2% growth of third-quarter 2026 property casualty net written premiums, reflecting premium growth initiatives, price increases and a higher level of insured exposures.
• $41 million decrease in third-quarter 2026 new business premiums written by agencies, primarily due to our personal lines insurance segment, included a $15 million increase in production from agencies appointed since the beginning of 2025.
• 300 new agency appointments in the first nine months of 2026, including 44 that market only our personal lines products.
• 2.7 percentage-point third-quarter 2026 combined ratio increase, including an increase of 7.0 points for losses from catastrophes.
• 2.6 percentage-point nine-month 2026 combined ratio improvement, including a decrease of 1.3 points from lower catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $94 million, compared with 0.9 points or $22 million for third-quarter 2025.
• 2.9 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 2.5 points for the first nine months of 2025.
• 0.6 percentage-point improvement in the nine-month 2026 ratio for current accident year loss and loss expenses before catastrophes.
• 0.4 percentage-point increase in the underwriting expense ratio for the first nine months of 2026, compared with the same period of 2025, primarily due to timing of recognition of certain expenses.

Commercial Lines Insurance Results
(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Earned premiums		$          1,270		$  1,229		3		$          3,762		$ 3,620		4
Fee revenues		2		2		0		4		4		0
Total revenues		1,272		1,231		3		3,766		3,624		4
Loss and loss expenses		782		747		5		2,539		2,249		13
Underwriting expenses		398		373		7		1,166		1,080		8
Underwriting profit		$               92		$     111		(17)		$               61		$    295		(79)
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Loss and loss expenses		61.5 %		60.8 %		0.7		67.5 %		62.2 %		5.3
Underwriting expenses		31.3		30.3		1.0		31.0		29.8		1.2
Combined ratio		92.8 %		91.1 %		1.7		98.5 %		92.0 %		6.5
						% Change						% Change
Agency renewal written premiums		$          1,050		$  1,043		1		$          3,380		$ 3,311		2
Agency new business written premiums		182		185		(2)		595		588		1
Other written premiums		(33)		(30)		(10)		(90)		(86)		(5)
Net written premiums		$          1,199		$  1,198		0		$          3,885		$ 3,813		2
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Current accident year before catastrophe losses		58.0 %		59.2 %		(1.2)		61.0 %		60.0 %		1.0
Current accident year catastrophe losses		7.1		3.0		4.1		9.6		5.0		4.6
Prior accident years before catastrophe losses		(3.4)		(1.0)		(2.4)		(3.0)		(2.2)		(0.8)
Prior accident years catastrophe losses		(0.2)		(0.4)		0.2		(0.1)		(0.6)		0.5
Loss and loss expense ratio		61.5 %		60.8 %		0.7		67.5 %		62.2 %		5.3
Current accident year combined ratio before   catastrophe losses		89.3 %		89.5 %		(0.2)		92.0 %		89.8 %		2.2

• $1 million or less than 1% growth in third-quarter 2026 commercial lines net written premiums, primarily due to higher agency renewal premiums. Two percent growth in nine-month net written premiums.
• $7 million or 1% increase in third-quarter renewal written premiums, with commercial lines average renewal pricing increases in the low-single-digit percent range.
• $3 million or 2% decrease in third-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 1.7 percentage-point third-quarter 2026 combined ratio increase, including an increase of 4.3 points for losses from catastrophes.
• 6.5 percentage-point nine-month 2026 combined ratio increase, including an increase of 5.1 points from higher catastrophe losses.
• 3.6 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $46 million, compared with 1.4 points or $18 million for third-quarter 2025.
• 3.1 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 2.8 points for the first nine months of 2025.

Personal Lines Insurance Results
(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Earned premiums		$  888		$  838		6		$   2,641		$ 2,340		13
Fee revenues		1		1		0		4		4		0
Total revenues		889		839		6		2,645		2,344		13
Loss and loss expenses		564		507		11		1,809		1,951		(7)
Underwriting expenses		237		233		2		717		665		8
Underwriting profit (loss)		$    88		$    99		(11)		$      119		$   (272)			nm
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Loss and loss expenses		63.5 %		60.4 %		3.1		68.4 %		83.4 %		(15.0)
Underwriting expenses		26.8		27.8		(1.0)		27.2		28.4		(1.2)
Combined ratio		90.3 %		88.2 %		2.1		95.6 %		111.8 %		(16.2)
						% Change						% Change
Agency renewal written premiums		$  911		$  864		5		$   2,580		$ 2,364		9
Agency new business written premiums		76		116		(34)		230		384		(40)
Other written premiums		(30)		(29)		(3)		(88)		(145)		39
Net written premiums		$  957		$  951		1		$   2,722		$ 2,603		5
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Current accident year before catastrophe losses		47.9 %		50.7 %		(2.8)		51.1 %		54.7 %		(3.6)
Current accident year catastrophe losses		19.9		8.0		11.9		19.5		29.7		(10.2)
Prior accident years before catastrophe losses		(3.6)		2.6		(6.2)		(2.1)		0.4		(2.5)
Prior accident years catastrophe losses		(0.7)		(0.9)		0.2		(0.1)		(1.4)		1.3
Loss and loss expense ratio		63.5 %		60.4 %		3.1		68.4 %		83.4 %		(15.0)
Current accident year combined ratio before   catastrophe losses		74.7 %		78.5 %		(3.8)		78.3 %		83.1 %		(4.8)

• $6 million or 1% growth in third-quarter 2026 personal lines net written premiums, including higher agency renewal written premiums that benefited from rate increases near the low end of the high-single-digit percent range, partially offset by lower new business premiums. Five percent growth in nine-month net written premiums.
• $40 million or 34% decrease in third-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
• 2.1 percentage-point third-quarter 2026 combined ratio increase, including an increase of 12.1 points for losses from catastrophes.
• 16.2 percentage-point nine-month 2026 combined ratio improvement, including a decrease of 8.9 points from lower catastrophe losses.
• 4.3 percentage-point third-quarter 2026 favorable prior accident year reserve development of $38 million, compared with an unfavorable 1.7 points or $14 million for third-quarter 2025.
• 2.2 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 1.0 points for the first nine months of 2025.

Excess and Surplus Lines Insurance Results
(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Earned premiums		$  187		$  174		7		$  556		$  510		9
Fee revenues		1		1		0		3		3		0
Total revenues		188		175		7		559		513		9
Loss and loss expenses		114		108		6		342		317		8
Underwriting expenses		53		48		10		156		141		11
Underwriting profit		$    21		$    19		11		$    61		$    55		11
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Loss and loss expenses		61.5 %		62.1 %		(0.6)		61.7 %		62.2 %		(0.5)
Underwriting expenses		27.9		27.7		0.2		28.0		27.6		0.4
Combined ratio		89.4 %		89.8 %		(0.4)		89.7 %		89.8 %		(0.1)
						% Change						% Change
Agency renewal written premiums		$  134		$  130		3		$  434		$  409		6
Agency new business written premiums		57		55		4		182		171		6
Other written premiums		(7)		(10)		30		(31)		(35)		11
Net written premiums		$  184		$  175		5		$  585		$  545		7
Ratios as a percent of earned premiums:						Pt. Change						Pt. Change
Current accident year before catastrophe losses		63.8 %		64.1 %		(0.3)		64.3 %		64.8 %		(0.5)
Current accident year catastrophe losses		1.0		0.2		0.8		1.0		0.9		0.1
Prior accident years before catastrophe losses		(3.3)		(2.1)		(1.2)		(3.4)		(3.2)		(0.2)
Prior accident years catastrophe losses		0.0		(0.1)		0.1		(0.2)		(0.3)		0.1
Loss and loss expense ratio		61.5 %		62.1 %		(0.6)		61.7 %		62.2 %		(0.5)
Current accident year combined ratio before   catastrophe losses		91.7 %		91.8 %		(0.1)		92.3 %		92.4 %		(0.1)

• $9 million or 5% growth in third-quarter 2026 excess and surplus lines net written premiums, including higher agency renewal written premiums that benefited from price increases averaging in the low-single-digit percent range. Seven percent growth in nine-month net written premiums.
• $2 million or 4% increase in third-quarter 2026 new business premiums written by agencies.
• 0.4 percentage-point third-quarter 2026 combined ratio improvement, primarily due to favorable reserve development on prior accident year loss and loss expenses that was partially offset by higher current accident year catastrophe losses.
• 0.1 percentage-point nine-month 2026 combined ratio improvement, largely due to a lower ratio for current accident year loss and loss expenses before catastrophe losses that was partially offset by a higher underwriting expense ratio.
• 3.3 percentage-point third-quarter 2026 benefit from favorable prior accident year reserve development of $6 million, compared with 2.2 points or $4 million for third-quarter 2025.
• 3.6 percentage-point nine-month 2026 benefit from favorable prior accident year reserve development, compared with 3.5 points for the first nine months of 2025.

Life Insurance Subsidiary Results
(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
		2026		2025		% Change			2026		2025		% Change
Term life insurance		$       62		$       61		2			$     187		$     179		4
Whole life insurance		15		14		7			42		40		5
Universal life and other		8		8		0			28		27		4
Earned premiums		85		83		2			257		246		4
Investment income, net of expenses		53		52		2			161		151		7
Investment gains and losses, net		4		(1)			nm		3		(6)			nm
Fee revenues		2		1		100			5		4		25
Total revenues		144		135		7			426		395		8
Contract holders' benefits incurred		80		76		5			243		230		6
Underwriting expenses incurred		25		23		9			73		70		4
Total benefits and expenses		105		99		6			316		300		5
Net income before income tax		39		36		8			110		95		16
Income tax provision		8		8		0			23		20		15
Net income of the life insurance subsidiary		$       31		$       28		11			$       87		$       75		16

• $2 million increase in third-quarter 2026 earned premiums, including a 2% increase for term life insurance, our largest life insurance product line.
• $12 million increase in nine-month 2026 life insurance subsidiary net income, primarily due to increased investment income, increased investment gains, increased earned premiums, and more favorable mortality experience, partially offset by less favorable impacts from the unlocking of interest rate and other actuarial assumptions.
• $1 million or less than 1% nine-month 2026 increase, to $1.468 billion, in GAAP shareholders' equity for the life insurance subsidiary, primarily from net income that was offset by an increase in unrealized investment losses on fixed-maturity securities.

Investment and Balance Sheet Highlights
Investments Results
(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
		2026		2025		% Change		2026		2025		% Change
Investment income, net of expenses		$         325		$      295		10		$         962		$      860		12
Investment interest credited to contract holders		(32)		(32)		0		(97)		(95)		(2)
Investment gains and losses, net		20		853		(98)		1,258		1,259		0
Investments profit		$         313		$   1,116		(72)		$      2,123		$    2,024		5
Investment income:
Interest		$         252		$      227		11		$         731		$       651		12
Dividends		66		69		(4)		214		206		4
Other		11		4		175		31		16		94
Less investment expenses		4		5		(20)		14		13		8
Investment income, pretax		325		295		10		962		860		12
Less income taxes		57		51		12		167		148		13
Total investment income, after-tax		$          268		$      244		10		$         795		$       712		12
Investment returns:
Average invested assets plus cash and cash    equivalents		$     35,549		$ 31,899				$    34,631		$  31,345
Average yield pretax		3.66 %		3.70 %				3.70 %		3.66 %
Average yield after-tax		3.02		3.06				3.06		3.03
Effective tax rate		17.6		17.3				17.4		17.2
Fixed-maturity returns:
Average amortized cost		$      19,989		$ 17,816				$    19,504		$  17,515
Average yield pretax		5.04 %		5.10 %				5.00 %		4.96 %
Average yield after-tax		4.10		4.16				4.07		4.04
Effective tax rate		18.6		18.4				18.5		18.4

• $30 million or 10% rise in third-quarter 2026 pretax investment income, including an 11% increase in interest income from fixed-maturity securities and a 4% decrease in equity portfolio dividends.
• $1.142 billion in third-quarter 2026 pretax total investment losses, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio.

(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Investment gains and losses on equity securities sold, net		$             5		$            (9)		$           255		$             (5)
Unrealized gains and losses on equity securities still held, net		1		855		980		1,259
Investment gains and losses on fixed-maturity securities, net		(8)		1		(3)		(13)
Other		22		6		26		18
Subtotal - investment gains and losses reported in net income		20		853		1,258		1,259
Change in unrealized investment gains and losses - fixed maturities and short-term		(1,162)		241		(1,308)		336
Total		$      (1,142)		$       1,094		$            (50)		$        1,595

 

Balance Sheet Highlights
(Dollars in millions, except share data)	At September 30,		At December 31,
		2026		2025
Total investments		$         33,139		$          31,783
Total assets		42,611		41,002
Short-term debt		17		25
Long-term debt		791		790
Shareholders' equity		16,182		15,911
Book value per share		105.42		102.35
Debt-to-total-capital ratio		4.8 %		4.9 %

• $34.378 billion in consolidated cash and total investments at September 30, 2026, an increase of 4% from $33.214 billion at year-end 2025.
• $18.925 billion bond portfolio at September 30, 2026, with an average rating of A2/A. Fair value decreased $29 million during the third quarter of 2026, including $1.107 billion in net purchases of fixed-maturity securities.
• $13.145 billion equity portfolio was 39.7% of total investments, including $8.872 billion in appreciated value before taxes at September 30, 2026. Third-quarter 2026 decrease in fair value of $49 million, including $52 million in net sales of equity securities.
• $3.22 third-quarter 2026 decrease in book value per share, including additions of $2.89 of net income before investment gains and $0.82 for other items that were offset by $5.99 from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities and $0.94 from dividends declared to shareholders.
• Value creation ratio of 5.8% for the first nine months of 2026, including 6.4% from net income before investment gains, which includes underwriting and investment income, and 6.2% from investment gains for equity securities, partially offset by 6.6% from changes in unrealized gains for fixed-maturity securities and 0.2% for other items.

For additional information or to register for our conference call webcast, please visit investors.cinfin.com.

About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.

Mailing Address:	Street Address:
P.O. Box 145496	6200 South Gilmore Road
Cincinnati, Ohio 45250-5496	Fairfield, Ohio 45014-5141

Safe Harbor Statement
Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by forward-looking statements. Any forward-looking statements contained herein, are based upon our current estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like "seek," "expect," "will," "should," "could," "might," "anticipate," "believe," "estimate," "intend," "likely," "future," or other similar expressions. Forward-looking statements speak only as of the date they were made; we assume no obligation to update such statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not limited to:

Insurance-Related Risks

• Risks and uncertainties associated with our loss reserves or actual claim costs exceeding reserves
• Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance
• Unusually high levels of catastrophe losses due to risk concentrations or changes in weather patterns, environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes; and our ability to manage catastrophe risk
• Risks associated with analytical models in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance, and catastrophe risk management
• Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates
• Events or conditions that could weaken or harm our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth
• Mergers, acquisitions, and other consolidations of agencies that result in a concentration of a significant amount of premium in one agency or agency group and/or alter our competitive advantages
• Our inability to manage business opportunities, growth prospects, and expenses for our ongoing operations
• Changing consumer insurance-buying habits
• The inability to obtain adequate ceded reinsurance on acceptable terms, for acceptable amounts, and from financially strong reinsurers; and the potential for nonpayment or delay in payment by reinsurers
• Domestic and global events, such as the wars in Ukraine and in the Middle East, future pandemics, inflationary trends, changes in U.S. trade and tariff policy, and disruptions in the banking and financial services industry, resulting in insurance losses, capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:
  • Securities market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions that affect our investment portfolio and book value
  • Significant or prolonged decline in the fair value of securities and impairment of the assets
  • Significant decline in investment income due to reduced or eliminated dividend payouts from securities
  • Significant rise in losses from surety or director and officer policies written for financial institutions or other insured entities or in losses from policies written by Cincinnati Re or Cincinnati Global
  • An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses
  • Decreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activity
  • The inability of our workforce, agencies, or vendors to perform necessary business functions

Financial, Economic, and Investment Risks 

• Declines in overall stock market values negatively affecting our equity portfolio and book value
• Downgrades in our financial strength ratings
• Interest rate fluctuations or other factors that could significantly affect:
  • Our ability to generate growth in investment income
  • Values of our fixed-maturity investments and accounts in which we hold bank-owned life insurance contract assets
  • Our traditional life policy reserves
• Economic volatility and illiquidity associated with our alternative investments in private equity, private credit, real property, and limited partnerships
• Failure to comply with covenants and other requirements under our credit facilities, senior debt, and other debt obligations
• Recession, prolonged elevated inflation, or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies
• The inability of our subsidiaries to pay dividends consistent with current or past levels impacting our ability to pay shareholder dividends or repurchase shares

General Business, Technology, and Operational Risks 

• Ineffective information technology systems or failing to develop and implement improvements in technology
• Difficulties with technology or data security breaches, including cyberattacks, could negatively affect our, or our agents', ability to conduct business; disrupt our relationships with agents, policyholders, and others; cause reputational damage, mitigation expenses, data loss, and expose us to liability 
• Difficulties with our operations and technology that may negatively impact our ability to conduct business, including cloud-based data information storage, data security, remote working capabilities, and/or outsourcing relationships and third-party operations and data security
• Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products
• Delays, inadequate data developed internally or from third parties, or performance inadequacies from ongoing development and implementation of underwriting and pricing models and methods, including usage-based insurance methods, automation, artificial intelligence, or technology projects and enhancements expected to increase our efficiency, pricing accuracy, underwriting profit, and competitiveness
• Intense competition, and the impact of innovation, emerging technologies, artificial intelligence and changing customer preferences on the insurance industry and the markets in which we operate, could harm our ability to maintain or increase our business volumes and profitability
• Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that the segment could not achieve sustainable profitability
• Unforeseen departure of certain executive officers or other key employees that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others
• Our inability, or the inability of our independent agents, to attract and retain personnel
• Events, such as a pandemic, an epidemic, natural catastrophe, or terrorism, which could hamper our ability to assemble our workforce, work effectively in a remote environment, or other failures of business continuity or disaster recovery programs

Regulatory, Compliance, and Legal Risks 

• Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:
  • Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates
  • Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules, and regulations 
  • Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business
  • Increase assessments for guaranty funds, other insurance‑related assessments, or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes
  • Increase our provision for federal income taxes due to changes in tax laws, regulations, or interpretations
  • Increase other expenses
  • Limit our ability to set fair, adequate, and reasonable rates
  • Restrict our ability to cancel policies
  • Impose new underwriting standards
  • Place us at a disadvantage in the marketplace 
  • Restrict our ability to execute our business model, including the way we compensate agents
• Adverse outcomes from litigation, environmental claims, mass torts or administrative proceedings, including effects of social inflation and third-party litigation funding on the size and frequency of litigation awards
• Events or actions, including unauthorized intentional circumvention of controls, which reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002
• Effects of changing social, global, economic, and regulatory environments
• Additional measures affecting corporate financial reporting and governance that can affect the market value of our common stock

Risks and uncertainties are further discussed in other filings with the Securities and Exchange Commission, including our 2025 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

* * *

Cincinnati Financial Corporation Condensed Consolidated Balance Sheets and Statements of Income (unaudited)
(Dollars in millions)				September 30,		December 31,
					2026		2025
Assets
Investments					$        33,139		$        31,783
Cash and cash equivalents					1,239		1,431
Premiums receivable					3,427		3,142
Reinsurance recoverable					624		655
Deferred policy acquisition costs					1,422		1,344
Other assets					2,760		2,647
Total assets					$        42,611		$        41,002
Liabilities
Insurance reserves					$        15,611		$        14,499
Unearned premiums					5,643		5,254
Deferred income tax					1,616		1,833
Long-term debt and lease obligations					858		861
Other liabilities					2,701		2,644
Total liabilities					26,429		25,091
Shareholders' Equity
Common stock and paid-in capital					1,992		1,958
Retained earnings					18,273		16,719
Accumulated other comprehensive loss					(951)		(34)
Treasury stock					(3,132)		(2,732)
Total shareholders' equity					16,182		15,911
Total liabilities and shareholders' equity					$        42,611		$        41,002
(Dollars in millions, except per share data)	Three months ended September 30,			Nine months ended September 30,
	2026		2025		2026		2025
Revenues
Earned premiums	$         2,690		$         2,567		$         7,929		$          7,391
Investment income, net of expenses	325		295		962		860
Investment gains and losses, net	20		853		1,258		1,259
Other revenues	12		11		35		30
Total revenues	3,047		3,726		10,184		9,540
Benefits and Expenses
Insurance losses and contract holders' benefits	1,675		1,540		5,313		5,168
Underwriting, acquisition and insurance expenses	799		754		2,349		2,165
Interest expense	12		13		39		40
Other operating expenses	8		6		28		27
Total benefits and expenses	2,494		2,313		7,729		7,400
Income Before Income Taxes	553		1,413		2,455		2,140
Provision for Income Taxes	94		291		467		423
Net Income	$             459		$         1,122		$         1,988		$          1,717
Per Common Share:
Net income — basic	$            2.99		$           7.19		$         12.88		$         10.99
Net income — diluted	2.96		7.11		12.75		10.88

Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; additional prior-period reconciliations available at investors.cinfin.com.)

Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.

Management uses certain non-GAAP financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management's control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

• Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company's insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold in any period may be subject to management's discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses are recognized from certain changes in market values of securities without actual realization. Management believes that the level of investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.
  
  For these reasons, many investors and shareholders consider non-GAAP operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.
• Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global.
• Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.

Cincinnati Financial Corporation
Net Income Reconciliation
(Dollars in millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Net income		$            459		$         1,122		$         1,988		$         1,717
Less:
Investment gains and losses, net		20		853		1,258		1,259
Income tax on investment gains and losses		(4)		(180)		(267)		(265)
Investment gains and losses, after-tax		16		673		991		994
Non-GAAP operating income		$            443		$            449		$            997		$            723
Diluted per share data:
Net income		$           2.96		$           7.11		$         12.75		$         10.88
Less:
Investment gains and losses, net		0.13		5.40		8.07		7.98
Income tax on investment gains and losses		(0.03)		(1.14)		(1.71)		(1.68)
Investment gains and losses, after-tax		0.10		4.26		6.36		6.30
Non-GAAP operating income		$           2.86		$           2.85		$           6.39		$           4.58

 

Life Insurance Reconciliation
(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Net income of the life insurance subsidiary		$             31		$             28		$             87		$             75
Investment gains and losses, net		4		(1)		3		(6)
Income tax on investment gains and losses		1		—		1		(1)
Non-GAAP operating income		28		29		85		80
Investment income, net of expenses		(53)		(52)		(161)		(151)
Investment interest credited to contract holders		32		32		97		95
Income tax excluding tax on investment gains and losses, net		7		8		22		21
Life insurance segment profit		$             14		$             17		$             43		$             45

 

Property Casualty Insurance Reconciliation
(Dollars in millions)	Three months ended September 30, 2026
	Consolidated			Commercial			Personal			E&S				Other*
Premiums:
Net written premiums		$       2,550			$       1,199			$          957			$         184			$          210
Unearned premiums change		55			71			(69)			3			50
Earned premiums		$       2,605			$       1,270			$          888			$         187			$          260
Underwriting profit		$          240			$            92			$            88			$           21			$            39
(Dollars in millions)	Nine months ended September 30, 2026
	Consolidated			Commercial			Personal			E&S				Other*
Premiums:
Net written premiums		$       8,043			$       3,885			$       2,722			$         585			$          851
Unearned premiums change		(371)			(123)			(81)			(29)			(138)
Earned premiums		$       7,672			$       3,762			$       2,641			$         556			$          713
Underwriting profit		$          337			$            61			$          119			$           61			$            96
(Dollars in millions)	Three months ended September 30, 2025
	Consolidated			Commercial			Personal			E&S			Other*
Premiums:
Net written premiums		$       2,493			$       1,198			$         951			$         175			$          169
Unearned premiums change		(9)			31			(113)			(1)			74
Earned premiums		$       2,484			$       1,229			$         838			$         174			$          243
Underwriting profit		$          293			$          111			$           99			$           19			$            64
(Dollars in millions)	Nine months ended September 30, 2025
	Consolidated			Commercial			Personal			E&S			Other*
Premiums:
Net written premiums		$       7,721			$       3,813			$       2,603			$         545			$          760
Unearned premiums change		(576)			(193)			(263)			(35)			(85)
Earned premiums		$       7,145			$       3,620			$       2,340			$         510			$          675
Underwriting profit (loss)		$          123			$          295			$        (272)			$           55			$            45
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  *Included in Other are the results of Cincinnati Re and Cincinnati Global.

Cincinnati Financial Corporation

Other Measures

• Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company's insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this measure is useful, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all-inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting.
• Written premium: Under statutory accounting rules in the U.S., property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. The difference between written and earned premium is unearned premium. 

Value Creation Ratio Calculations
(Dollars are per share)	Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Value creation ratio:
End of period book value*		$      105.42		$        98.76		$      105.42		$        98.76
Less beginning of period book value		108.64		91.46		102.35		89.11
Change in book value		(3.22)		7.30		3.07		9.65
Dividend declared to shareholders		0.94		0.87		2.82		2.61
Total value creation		$         (2.28)		$          8.17		$          5.89		$        12.26
Value creation ratio from change in book value**		(3.0) %		8.0 %		3.0 %		10.9 %
Value creation ratio from dividends declared to shareholders***		0.9		0.9		2.8		2.9
Value creation ratio		(2.1) %		8.9 %		5.8 %		13.8 %
* Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding
** Change in book value divided by the beginning of period book value
*** Dividend declared to shareholders divided by beginning of period book value

 

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SOURCE Cincinnati Financial Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Cincinnati Financial's third-quarter 2026 earnings?

Cincinnati Financial earned $459 million, or $2.96 per diluted share, compared with $1.122 billion, or $7.11 per diluted share, in the third quarter of 2025. Non-GAAP operating income was $443 million, or $2.86 per share, versus $449 million, or $2.85 per share.

How did Cincinnati Financial's third-quarter 2026 insurance underwriting perform?

Property casualty underwriting profit fell 18% to $240 million, while the combined ratio increased to 90.9% from 88.2%. Net written premiums grew 2% to $2.550 billion, but agency new business written premiums declined 12% to $315 million.

How much did reserve development benefit Cincinnati Financial's third-quarter 2026 underwriting results?

Favorable adjustments to reserves for prior accident years benefited the third-quarter combined ratio by 3.6 percentage points, or $94 million, compared with 0.9 points, or $22 million, a year earlier. For the first nine months, the benefit was 2.9 points versus 2.5 points in 2025.

Why did Cincinnati Financial's underwriting expense ratio rise in the first nine months of 2026?

Cincinnati Financial attributed the 0.4-percentage-point increase primarily to the timing of recognition of certain expenses. The property casualty underwriting expense ratio was 29.7%, compared with 29.3% for the first nine months of 2025.