ThZeal - The Zeal

cinf-20250331

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2025.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from _____________________ to _____________________.

Commission file number 0-4604

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio

31-0746871

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification No.)

6200 S. Gilmore Road,

Fairfield,

Ohio

45014-5141

(Address of principal executive offices)

(Zip code)

Registrant's telephone number, including area code: (513) 870-2000

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

CINF

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☑Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a nonaccelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☑ Large accelerated filer ☐ Accelerated filer ☐ Nonaccelerated filer ☐ Smaller reporting company

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

☐Yes ☑ No

As of April 23, 2025, there were 156,303,610 shares of common stock outstanding.

Table of Contents

CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTER ENDED March 31, 2025

TABLE OF CONTENTS


Part I – Financial Information			3

Item 1. Financial Statements (unaudited)			3

Condensed Consolidated Balance Sheets			3

Condensed Consolidated Statements of Income			4

Condensed Consolidated Statements of Comprehensive Income			5

Condensed Consolidated Statements of Shareholders’ Equity			6

Condensed Consolidated Statements of Cash Flows			7

Notes to Condensed Consolidated Financial Statements (unaudited)			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			29

Safe Harbor Statement			29

Corporate Financial Highlights			32

Financial Results			40

Liquidity and Capital Resources			55

Other Matters			59

Item 3. Quantitative and Qualitative Disclosures about Market Risk			59

Item 4. Controls and Procedures			66

Part II – Other Information			67

Item 1. Legal Proceedings			67

Item 1A. Risk Factors			67

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			68

Item 5. Other Information			69

Item 6. Exhibits			70

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Part I – Financial Information

Item 1. Financial Statements (unaudited)

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Balance Sheets


(Dollars in millions, except per share data)	March 31,		December 31,
	2025		2024
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2025—$17,009; 2024—$16,735)	$	16,523	$	16,182
Equity securities, at fair value (cost: 2025—$3,964; 2024—$3,953)	11,118		11,185
Short-term investments, at fair value (amortized cost: 2025—$100; 2024—$298)	100		298
Other invested assets	740		713
Total investments	28,481		28,378
Cash and cash equivalents	1,010		983

Investment income receivable	224		222
Finance receivable	122		120
Premiums receivable	3,163		2,969
Reinsurance recoverable	808		523
Prepaid reinsurance premiums	93		70
Deferred policy acquisition costs	1,297		1,242
Land, building and equipment, net, for company use (accumulated depreciation: 2025—$354; 2024—$347)	216		214
Other assets	903		828
Separate accounts	959		952
Total assets	$	37,276	$	36,501

Liabilities
Insurance reserves
Loss and loss expense reserves	$	10,780	$	10,003
Life policy and investment contract reserves	2,968		2,960
Unearned premiums	5,068		4,813
Other liabilities	1,416		1,487
Deferred income tax	1,489		1,476
Note payable	25		25
Long-term debt and lease obligations	853		850
Separate accounts	959		952
Total liabilities	23,558		22,566

Commitments and contingent liabilities (Note 12)

Shareholders' Equity
Common stock, par value—$2 per share; (authorized: 2025 and 2024—500 million shares; issued: 2025 and 2024—198.3 million shares)	397		397
Paid-in capital	1,511		1,502
Retained earnings	14,644		14,869
Accumulated other comprehensive loss	(271)		(309)
Treasury stock at cost (2025—42.0 million shares and 2024—41.9 million shares)	(2,563)		(2,524)
Total shareholders' equity	13,718		13,935
Total liabilities and shareholders' equity	$	37,276	$	36,501

Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Income


(Dollars in millions, except per share data)	Three months ended March 31,
		2025		2024
Revenues
Earned premiums		$	2,344	$	2,071
Investment income, net of expenses		280		245
Investment gains and losses, net		(67)		612
Fee revenues		5		4
Other revenues		4		3
Total revenues		2,566		2,935
Benefits and Expenses
Insurance losses and contract holders' benefits		1,968		1,349
Underwriting, acquisition and insurance expenses		702		616
Interest expense		13		13
Other operating expenses		11		4
Total benefits and expenses		2,694		1,982
Income (Loss) Before Income Taxes		(128)		953
Provision (Benefit) for Income Taxes
Current		(42)		61
Deferred		4		137
Total provision (benefit) for income taxes		(38)		198
Net Income (Loss)		$	(90)	$	755
Per Common Share
Net income (loss) — basic		$	(0.57)	$	4.82
Net income (loss) — diluted		(0.57)		4.78

Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income


(Dollars in millions)	Three months ended March 31,
		2025		2024
Net Income (Loss)		$	(90)	$	755
Other Comprehensive Income (Loss)
Change in unrealized gains and losses on investments, net of tax (benefit) of $14 and $(11), respectively		53		(44)
Amortization of pension actuarial loss (gain) and prior service cost, net of tax (benefit) of $0 and $0, respectively		(1)		—
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(3) and $10, respectively		(14)		37
Other comprehensive income (loss)		38		(7)
Comprehensive Income (Loss)		$	(52)	$	748

Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity


(Dollars in millions)	Three months ended March 31,
		2025		2024
Common Stock
Beginning of period		$	397	$	397
Share-based awards		—		—
End of period		397		397

Paid-In Capital
Beginning of period		1,502		1,437
Share-based awards		(7)		(6)
Share-based compensation		15		14
Other		1		1
End of period		1,511		1,446

Retained Earnings
Beginning of period		14,869		13,084


Net income (loss)		(90)		755
Dividends declared		(135)		(127)
End of period		14,644		13,712

Accumulated Other Comprehensive Loss
Beginning of period		(309)		(435)


Other comprehensive income (loss)		38		(7)
End of period		(271)		(442)

Treasury Stock
Beginning of period		(2,524)		(2,385)
Share-based awards		6		8
Shares acquired - share repurchase authorization		(42)		(75)
Shares acquired - share-based compensation plans		(3)		(7)

End of period		(2,563)		(2,459)

Total Shareholders' Equity		$	13,718	$	12,654

(In millions, except per common share)
Common Stock - Shares Outstanding
Beginning of period		156.4		157.0
Share-based awards		0.2		0.3
Shares acquired - share repurchase authorization		(0.3)		(0.7)
Shares acquired - share-based compensation plans		—		(0.1)

End of period		156.3		156.5

Dividends declared per common share		$	0.87	$	0.81

Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows


(Dollars in millions)	Three months ended March 31,
	2025		2024
Cash Flows From Operating Activities
Net income (loss)	$	(90)	$	755
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	47		34
Investment gains and losses, net	74		(608)

Interest credited to contract holders	11		11
Deferred income tax expense	4		137
Changes in:

Premiums and reinsurance receivable	(502)		(203)
Deferred policy acquisition costs	(55)		(50)
Other assets	(22)		(8)
Loss and loss expense reserves	777		196
Life policy and investment contract reserves	5		26
Unearned premiums	255		279
Other liabilities	(135)		(161)
Current income tax receivable/payable	(59)		(55)
Net cash provided by operating activities	310		353
Cash Flows From Investing Activities
Sale, call or maturity of fixed maturities	497		464

Sale of equity securities	17		266
Purchase of fixed maturities	(717)		(838)
Purchase of equity securities	(22)		(226)

Change in short-term investments, net	200		—
Changes in finance receivables	(3)		2

Investment in building and equipment	(3)		(7)
Change in other invested assets, net	(27)		(16)
Net cash used in investing activities	(58)		(355)
Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(125)		(116)
Shares acquired - share repurchase authorization	(42)		(75)

Proceeds from stock options exercised	4		3
Contract holders' funds deposited	14		19
Contract holders' funds withdrawn	(40)		(60)
Other	(36)		(57)
Net cash used in financing activities	(225)		(286)
Net change in cash and cash equivalents	27		(288)
Cash and cash equivalents at beginning of year	983		907
Cash and cash equivalents at end of period	$	1,010	$	619
Supplemental Disclosures of Cash Flow Information:

Income taxes paid	2		106
Noncash Activities

Equipment acquired under finance lease obligations	$	8	$	4
Share-based compensation	13		17
Other assets and other liabilities	100		97

Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 — Accounting Policies

The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted.

Our March 31, 2025, condensed consolidated financial statements are unaudited. We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2024 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year.

Pending Accounting Updates

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements.

ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires increased quantitative and qualitative disclosure of certain categories of expenses. The effective date of ASU 2024-03 is for annual periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements.

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NOTE 2 – Investments

The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:


(Dollars in millions)	Amortized cost		Gross unrealized				Fair value
At March 31, 2025			gains		losses
Fixed-maturity:
Corporate	$	8,833	$	78	$	278	$	8,633
States, municipalities and political subdivisions	4,973		10		291		4,692
Government-sponsored enterprises	2,310		3		3		2,310
Asset-backed	649		5		9		645
United States government	217		—		1		216
Foreign government	27		—		—		27

Total fixed-maturity	17,009		96		582		16,523




Short-term	100		—		—		100
Total fixed-maturity and short-term investments	$	17,109	$	96	$	582	$	16,623
At December 31, 2024
Fixed-maturity:
Corporate	$	8,652	$	61	$	333	$	8,380
States, municipalities and political subdivisions	4,976		15		270		4,721
Government-sponsored enterprises	2,282		1		9		2,274
Asset-backed	567		1		17		551
United States government	228		—		2		226
Foreign government	30		—		—		30

Total fixed-maturity	16,735		78		631		16,182
Short-term	298		—		—		298




Total fixed-maturity and short-term investments	$	17,033	$	78	$	631	$	16,480

The decrease in net unrealized investment losses in our fixed-maturity portfolio at March 31, 2025, is primarily due to a decrease in U.S. Treasury yields partially offset by a widening of corporate credit spreads. Our asset-backed securities had an average rating of Aa1/AA at both March 31, 2025, and December 31, 2024.

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The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:


(Dollars in millions)	Less than 12 months				12 months or more				Total
At March 31, 2025	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity:
Corporate	$	2,184	$	53	$	3,487	$	225	$	5,671	$	278
States, municipalities and political subdivisions	1,565		36		2,075		255		3,640		291
Government-sponsored enterprises	1,002		2		102		1		1,104		3
Asset-backed	222		4		88		5		310		9
United States government	—		—		95		1		95		1
Foreign government	—		—		—		—		—		—
Total fixed-maturity	4,973		95		5,847		487		10,820		582
Short-term	100		—		—		—		100		—





Total fixed-maturity and short-term investments	$	5,073	$	95	$	5,847	$	487	$	10,920	$	582
At December 31, 2024
Fixed-maturity:
Corporate	$	2,815	$	78	$	3,634	$	255	$	6,449	$	333
States, municipalities and political subdivisions	1,513		25		1,898		245		3,411		270
Government-sponsored enterprises	1,876		8		92		1		1,968		9
Asset-backed	331		10		96		7		427		17
United States government	48		—		100		2		148		2
Foreign government	—		—		3		—		3		—
Total fixed-maturity	6,583		121		5,823		510		12,406		631
Short-term	100		—		—		—		100		—




Total fixed-maturity and short-term investments	$	6,683	$	121	$	5,823	$	510	$	12,506	$	631

Contractual maturity dates for our fixed-maturity and short-term investments were:


(Dollars in millions)	Amortized cost		Fair value		% of fair value
At March 31, 2025
Maturity dates:
Due in one year or less	$	1,225	$	1,222	7.4	%
Due after one year through five years	3,802		3,774		22.7
Due after five years through ten years	3,832		3,759		22.6
Due after ten years	8,250		7,868		47.3
Total	$	17,109	$	16,623	100.0	%

Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.

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The following table provides investment income and investment gains and losses, net:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Investment income:
Interest		$	210	$	169
Dividends		67		72
Other		7		7
Total		284		248
Less investment expenses		4		3
Total		$	280	$	245

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net		$	(1)	$	(11)
Unrealized gains and losses on securities still held, net		(71)		613
Subtotal		(72)		602
Fixed-maturity securities:

Gross realized losses		—		(1)
Change in allowance for credit losses, net		(2)		(9)

Subtotal		(2)		(10)

Other		7		20

Total		$	(67)	$	612

The fair value of our equity portfolio was $11.118 billion and $11.185 billion at March 31, 2025, and December 31, 2024, respectively. Apple, Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $786 million and $891 million, which was 7.3% and 8.2% of our publicly traded common equities portfolio and 2.8% and 3.2% of the total investment portfolio at March 31, 2025, and December 31, 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $35 million and $33 million at March 31, 2025, and December 31, 2024, respectively. There were no reductions in the allowance for credit losses for securities sold during the three months ended March 31, 2025, and 2024.

There were 3,679 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $582 million and $631 million at March 31, 2025, and December 31, 2024, respectively. Of those totals, 34 and 19 fixed-maturity securities had fair values below 70% of amortized cost at March 31, 2025, and December 31, 2024, respectively.

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NOTE 3 – Fair Value Measurements

In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2024, and ultimately management determines fair value. See our 2024 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 138, for information on characteristics and valuation techniques used in determining fair value.

Fair Value Disclosures for Assets

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at March 31, 2025, and December 31, 2024. We do not have any liabilities carried at fair value.


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At March 31, 2025
Fixed maturities, available for sale:
Corporate	$	—	$	8,633	$	—	$	8,633
States, municipalities and political subdivisions	—		4,692		—		4,692
Government-sponsored enterprises	—		2,310		—		2,310
Asset-backed	—		645		—		645
United States government	216		—		—		216
Foreign government	—		27		—		27


Subtotal	216		16,307		—		16,523
Common equities	10,782		—		—		10,782
Nonredeemable preferred equities	—		336		—		336
Separate accounts taxable fixed maturities	—		895		—		895
Short-term investments	100		—		—		100
Top Hat savings plan mutual funds and common equity (included in Other assets)	89		—		—		89
Total	$	11,187	$	17,538	$	—	$	28,725

At December 31, 2024
Fixed maturities, available for sale:
Corporate	$	—	$	8,380	$	—	$	8,380
States, municipalities and political subdivisions	—		4,721		—		4,721
Government-sponsored enterprises	—		2,274		—		2,274
Asset-backed	—		551		—		551
United States government	226		—		—		226
Foreign government	—		30		—		30

Subtotal	226		15,956		—		16,182
Common equities	10,836		—		—		10,836
Nonredeemable preferred equities	—		349		—		349
Separate accounts taxable fixed maturities	—		876		—		876
Short-term investments	298		—		—		298
Top Hat savings plan mutual funds and common equity (included in Other assets)	87		—		—		87
Total	$	11,447	$	17,181	$	—	$	28,628

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We also held Level 1 cash and cash equivalents of $1.010 billion and $983 million at March 31, 2025, and December 31, 2024, respectively.

Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value

The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements.

This table summarizes the book value and principal amounts of our long-term debt:


(Dollars in millions)			Book value				Principal amount
Interest rate	Year of issue		March 31,		December 31,		March 31,		December 31,
			2025		2024		2025		2024
6.900%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920%	2005	Senior debentures, due 2028	391		391		391		391
6.125%	2004	Senior notes, due 2034	372		372		374		374
Total			$	790	$	790	$	793	$	793

The following table shows fair values of our note payable and long-term debt:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At March 31, 2025
Note payable	$	—	$	25	$	—	$	25
6.900% senior debentures, due 2028	—		29		—		29
6.920% senior debentures, due 2028	—		419		—		419
6.125% senior notes, due 2034	—		394		—		394
Total	$	—	$	867	$	—	$	867

At December 31, 2024
Note payable	$	—	$	25	$	—	$	25
6.900% senior debentures, due 2028	—		29		—		29
6.920% senior debentures, due 2028	—		416		—		416
6.125% senior notes, due 2034	—		390		—		390
Total	$	—	$	860	$	—	$	860

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The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At March 31, 2025
Life policy loans	$	—	$	—	$	42	$	42

Deferred annuities	$	—	$	—	$	551	$	551
Structured settlements	—		127		—		127
Total	$	—	$	127	$	551	$	678

At December 31, 2024
Life policy loans	$	—	$	—	$	41	$	41

Deferred annuities	$	—	$	—	$	561	$	561
Structured settlements	—		127		—		127
Total	$	—	$	127	$	561	$	688

Outstanding principal and interest for these life policy loans totaled $36 million at both March 31, 2025, and December 31, 2024.

Recorded reserves for the deferred annuities were $582 million and $595 million at March 31, 2025, and December 31, 2024, respectively. Recorded reserves for the structured settlements were $116 million at both March 31, 2025, and December 31, 2024.

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NOTE 4 – Property Casualty Loss and Loss Expenses

This table summarizes activity for our consolidated property casualty loss and loss expense reserves:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Gross loss and loss expense reserves, beginning of period		$	9,937	$	8,975
Less reinsurance recoverable		269		362
Net loss and loss expense reserves, beginning of period		9,668		8,613





Net incurred loss and loss expenses related to:
Current accident year		1,978		1,370
Prior accident years		(91)		(100)
Total incurred		1,887		1,270
Net paid loss and loss expenses related to:
Current accident year		593		205
Prior accident years		806		832
Total paid		1,399		1,037
Net loss and loss expense reserves, end of period		10,156		8,846
Plus reinsurance recoverable		551		332
Gross loss and loss expense reserves, end of period		$	10,707	$	9,178

We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $73 million and $68 million at March 31, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves.

We experienced $91 million of favorable development on prior accident years, including $43 million of favorable development in commercial lines, $19 million of favorable development in personal lines and $9 million of favorable development in excess and surplus lines for the three months ended March 31, 2025. Within commercial lines, we recognized favorable reserve development of $35 million for the commercial property line and $11 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $19 million for the homeowner line.

We experienced $100 million of favorable development on prior accident years, including $38 million of favorable development in commercial lines, $33 million of favorable development in personal lines and $3 million of favorable development in excess and surplus lines for the three months ended March 31, 2024. Within commercial lines, we recognized favorable reserve development of $22 million for the commercial property line and $12 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $25 million for the homeowner line and $5 million for the personal auto line.

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NOTE 5 – Life Policy and Investment Contract Reserves

We establish the reserves for traditional life policies including term, whole life and other products based on the present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all benefits and claim expenses. We estimate future benefits and claim expenses and net premium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. These assumptions are also updated on an interim basis if evidence suggests that they should be revised. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables.

We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments.

The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets:


(Dollars in millions)	March 31, 2025		December 31, 2024
Life policy reserves:
Term	$	1,064	$	1,051
Whole life	412		405
Other	99		98
Subtotal	1,575		1,554
Investment contract reserves:
Deferred annuities	582		595
Universal life	587		586
Structured settlements	116		116
Other	108		109
Subtotal	1,393		1,406
Total life policy and investment contract reserves	$	2,968	$	2,960

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The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves are as follows:


(Dollars in millions)	Three months ended March 31,
	2025				2024
	Term		Whole life		Term		Whole life
Present value of expected net premiums:
Balance, beginning of period	$	1,638	$	218	$	1,700	$	223
Beginning balance at original discount rate	1,719		228		1,712		225
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(8)		—		(9)		—
Adjusted beginning of period balance	1,711		228		1,703		225
Issuances	35		3		35		5
Interest accrual	19		3		18		2
Net premiums collected	(46)		(7)		(46)		(7)
Ending balance at original discount rate	1,719		227		1,710		225
Effect of changes in discount rate assumptions	(60)		(7)		(50)		(6)
Balance, end of period	1,659		220		1,660		219

Present value of expected future policy benefits:
Balance, beginning of period	2,668		623		2,751		657
Beginning balance at original discount rate	2,812		646		2,765		628
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(14)		—		(14)		—
Adjusted beginning of period balance	2,798		646		2,751		628
Issuances	36		3		35		5
Interest accrual	32		9		31		8
Benefits paid	(54)		(10)		(37)		(8)
Ending balance at original discount rate	2,812		648		2,780		633
Effect of changes in discount rate assumptions	(109)		(17)		(82)		4
Balance, end of period	2,703		631		2,698		637

Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums	1,044		411		1,038		418
Impact of flooring at cohort level	20		1		16		—
Net life policy reserves	1,064		412		1,054		418
Less reinsurance recoverable at original discount rate	(82)		(25)		(100)		(24)
Less effect of discount rate assumption changes on reinsurance recoverable	(8)		(3)		(8)		(4)
Net life policy reserves, after reinsurance recoverable	$	974	$	384	$	946	$	390

Weighted-average duration of the net life policy reserves in years	11		15		11		16

The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $3 million and $2 million at March 31, 2025 and 2024, respectively.

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The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies:


(Dollars in millions)	At March 31,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Term
Expected future benefit payments	$	4,894	$	2,703	$	4,816	$	2,698
Expected future gross premiums	4,561		2,658		4,386		2,601
Whole life
Expected future benefit payments	$	1,719	$	631	$	1,660	$	637
Expected future gross premiums	692		415		663		402

The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Gross premiums
Term		$	74	$	74
Whole life		13		13

Total		$	87	$	87
Interest accretion
Term		$	13	$	13
Whole life		6		6

Total		$	19	$	19

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the three months ended March 31, 2025, and 2024.

The following table shows the weighted-average interest rate for our term and whole life products:


	At March 31,
	2025		2024
Term
Interest accretion rate	5.20	%	5.26	%
Current discount rate	4.96		5.09
Whole life
Interest accretion rate	5.87	%	5.90	%
Current discount rate	5.67		5.40

The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments.

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The following table shows the balances and changes in policyholders' account balances included in investment contract reserves:


(Dollars in millions)	Three months ended March 31,
		2025	2024
			Deferred annuity			Universal life			Deferred annuity			Universal life
Balance, beginning of period			$	595		$	456		$	656		$	457
Premiums received			4			10			9			10
Policy charges			—			(10)			—			(10)
Surrenders and withdrawals			(17)			(3)			(37)			(4)
Benefit payments			(5)			(1)			(3)			(2)
Interest credited			5			5			6			5

Balance, end of period			$	582		$	457		$	631		$	456

Weighted average crediting rate			3.68		%	4.40		%	3.55		%	4.33		%
Net amount at risk			$	—		$	3,801		$	—		$	3,908
Cash surrender value			575			428			625			425

The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances.

The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts:


(Dollars in millions)	At guaranteed minimum		1 to 50 basis points above		51-150 basis points above		Greater than 150 basis points		Total
At March 31, 2025
Deferred annuity
1.00-3.00%	$	2	$	286	$	15	$	233	$	536
3.01-4.00%	46		—		—		—		46

Total	$	48	$	286	$	15	$	233	$	582
Universal life
1.00-3.00%	$	—	$	55	$	65	$	6	$	126
3.01-4.00%	50		—		5		—		55
Greater than 4.00%	276		—		—		—		276
Total	$	326	$	55	$	70	$	6	$	457

At March 31, 2024
Deferred annuity
1.00-3.00%	$	4	$	337	$	15	$	226	$	582
3.01-4.00%	49		—		—		—		49

Total	$	53	$	337	$	15	$	226	$	631
Universal life
1.00-3.00%	$	—	$	60	$	58	$	4	$	122
3.01-4.00%	49		5		—		—		54
Greater than 4.00%	280		—		—		—		280
Total	$	329	$	65	$	58	$	4	$	456

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The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Balance, beginning of period		$	130	$	128

Balance, beginning of period before shadow reserve adjustments		131		129
Effect of changes in cash flow assumptions		—		—
Effect of actual variances from expected experience		2		—
Adjusted beginning of period balance		133		129
Interest accrual		1		1
Excess death benefits		(7)		(2)
Attributed assessments		3		3

Effect of changes in interest rate assumptions		1		(1)
Balance, end of period before shadow reserve adjustments		131		130
Shadow reserve adjustments		(1)		(1)
Balance, end of period		130		129
Less reinsurance recoverable, end of period		8		6

Net other additional liability, after reinsurance recoverable		$	138	$	135

Weighted-average duration of the other additional liability in years		29		31

The following table shows balances and changes in separate accounts balances during the period:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Balance, beginning of period		$	952	$	925
Interest credited before policy charges		11		10

Benefit payments		(8)		—




Other		4		(8)
Balance, end of period		$	959	$	927

Cash surrender value		$	949	$	925

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NOTE 6 – Deferred Policy Acquisition Costs

Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income.

The table below shows the deferred policy acquisition costs and asset reconciliation.


(Dollars in millions)	Three months ended March 31,
		2025		2024
Property casualty:
Deferred policy acquisition costs asset, beginning of period		$	886	$	749
Capitalized deferred policy acquisition costs		485		407
Amortized deferred policy acquisition costs		(434)		(360)
Deferred policy acquisition costs asset, end of period		$	937	$	796

Life:
Deferred policy acquisition costs asset, beginning of period		$	356	$	344
Capitalized deferred policy acquisition costs		12		10
Amortized deferred policy acquisition costs		(8)		(7)

Deferred policy acquisition costs asset, end of period		$	360	$	347

Consolidated:
Deferred policy acquisition costs asset, beginning of period		$	1,242	$	1,093
Capitalized deferred policy acquisition costs		497		417
Amortized deferred policy acquisition costs		(442)		(367)

Deferred policy acquisition costs asset, end of period		$	1,297	$	1,143

The table below shows the life deferred policy acquisition costs asset by product:


(Dollars in millions)
Three months ended March 31, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	245	$	52	$	8	$	51	$	356
Capitalized deferred policy acquisition costs	9		2		—		1		12
Amortized deferred policy acquisition costs	(6)		(1)		—		(1)		(8)
Balance, end of period	$	248	$	53	$	8	$	51	$	360

Three months ended March 31, 2024
Balance, beginning of period	$	236	$	48	$	8	$	52	$	344
Capitalized deferred policy acquisition costs	8		2		—		—		10
Amortized deferred policy acquisition costs	(6)		(1)		—		—		(7)
Balance, end of period	$	238	$	49	$	8	$	52	$	347

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NOTE 7 – Accumulated Other Comprehensive Income

Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows:


(Dollars in millions)	Three months ended March 31,
	2025						2024
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)


OCI before investment gains and losses, net, recognized in net income	65		14		51		(65)		(13)		(52)
Investment gains and losses, net, recognized in net income	2		—		2		10		2		8
OCI	67		14		53		(55)		(11)		(44)
AOCI, end of period	$	(486)	$	(105)	$	(381)	$	(625)	$	(134)	$	(491)

Pension obligations:
AOCI, beginning of period	$	75	$	17	$	58	$	30	$	8	$	22
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	(1)		—		(1)		—		—		—
OCI	(1)		—		(1)		—		—		—
AOCI, end of period	$	74	$	17	$	57	$	30	$	8	$	22

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)


OCI before investment gains and losses, net, recognized in net income	(17)		(3)		(14)		47		10		37
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(17)		(3)		(14)		47		10		37
AOCI, end of period	$	68	$	15	$	53	$	34	$	7	$	27

Summary of AOCI:
AOCI, beginning of period	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)


Investments OCI	67		14		53		(55)		(11)		(44)
Pension obligations OCI	(1)		—		(1)		—		—		—
Life policy reserves, reinsurance recoverable and other OCI	(17)		(3)		(14)		47		10		37
Total OCI	49		11		38		(8)		(1)		(7)
AOCI, end of period	$	(344)	$	(73)	$	(271)	$	(561)	$	(119)	$	(442)

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.

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NOTE 8 – Reinsurance

Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions.

The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Direct written premiums		$	2,388	$	2,125
Assumed written premiums		303		239
Ceded written premiums		(196)		(116)
Net written premiums		$	2,495	$	2,248

Direct earned premiums		$	2,247	$	1,934
Assumed earned premiums		190		152
Ceded earned premiums		(173)		(94)
Earned premiums		$	2,264	$	1,992

Direct incurred loss and loss expenses		$	2,149	$	1,193
Assumed incurred loss and loss expenses		236		76
Ceded incurred loss and loss expenses		(498)		1
Incurred loss and loss expenses		$	1,887	$	1,270

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Our life insurance company purchases reinsurance for protection of a portion of the risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles.

The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Direct earned premiums		$	99	$	99

Ceded earned premiums		(19)		(20)
Earned premiums		$	80	$	79

Direct contract holders' benefits incurred		$	94	$	94

Ceded contract holders' benefits incurred		(13)		(15)
Contract holders' benefits incurred		$	81	$	79

The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued.

The allowance for uncollectible property casualty premiums was $17 million and $18 million at March 31, 2025, and December 31, 2024, respectively. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at March 31, 2025, and December 31, 2024.

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NOTE 9 – Income Taxes

The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows:


(Dollars in millions)	Three months ended March 31,
		2025	2024
Tax at statutory rate:			$	(27)	21.0	%	$	200	21.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds			(5)		3.9		(5)		(0.5)
Dividend received exclusion			(5)		3.9		(5)		(0.5)

Other			(1)		0.9		8		0.8
Provision (benefit) for income taxes			$	(38)	29.7	%	$	198	20.8	%

The provision (benefit) for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries.

We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations and those related to Cincinnati Global Underwriting Ltd.SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both March 31, 2025, and December 31, 2024.

Cincinnati Global

Cincinnati Global had no operating loss carryforwards in the United States and $67 million and $78 million in the United Kingdom at March 31, 2025, and December 31, 2024, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group.

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NOTE 10 – Net Income (Loss) Per Common Share

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share:


(In millions, except per share data)	Three months ended March 31,
		2025		2024
Numerator:
Net income (loss)—basic and diluted		$	(90)	$	755
Denominator:
Basic weighted-average common shares outstanding		156.4		156.8
Effect of share-based awards:
Stock options		—		0.7
Nonvested shares		—		0.4
Diluted weighted-average shares		156.4		157.9
Earnings (loss) per share:
Basic		$	(0.57)	$	4.82
Diluted		$	(0.57)	$	4.78
Number of anti-dilutive share-based awards		1.7		1.3

The source of dilution of our common shares are certain equity-based awards. See our 2024 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 173, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three months ended March 31, 2025 and 2024. In accordance with Accounting Standards Codification 260, Earnings per Share, the assumed exercise of share-based awards was excluded from the computation of diluted loss per share for the three months ended March 31, 2025, because their exercise would have anti-dilutive effects.

NOTE 11 – Employee Retirement Benefits

The following summarizes the components of net periodic benefit for our qualified and supplemental pension plans:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Service cost		$	1	$	1
Non-service (benefit) costs:
Interest cost		4		3
Expected return on plan assets		(6)		(5)
Amortization of actuarial gain and prior service cost		(1)		—

Total non-service benefit		(3)		(2)
Net periodic benefit		$	(2)	$	(1)

See our 2024 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 167, for information on our retirement benefits. The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2025 and 2024.

We made matching contributions totaling $11 million and $9 million to our 401(k) and Top Hat savings plans during the first quarter of 2025 and 2024, respectively.

We made no contributions to our qualified pension plan during the first three months of 2025.

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NOTE 12 – Commitments and Contingent Liabilities

The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending third-party claims brought against insureds and as an insurer defending against coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows.

The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of state or national classes. Such proceedings have alleged, for example, improper depreciation of labor costs in repair estimates. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates.

On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial.

NOTE 13 – Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker (CODM) is the chief executive officer who regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are:

•Commercial lines insurance

•Personal lines insurance

•Excess and surplus lines insurance

•Life insurance

•Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2024 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 176, for a description of revenue, income or loss before income taxes, including its components, and identifiable assets for each of the five segments.

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Segment information is summarized in the following table:


(Dollars in millions)	Three months ended March 31,
		2025		2024

Commercial lines insurance





Commercial lines insurance premiums		$	1,179	$	1,082
Fee revenues		2		1
Total commercial lines insurance revenues		1,181		1,083
Loss and loss expenses		735		719
Underwriting expenses		349		325
Total commercial lines income before income taxes		97		39

Personal lines insurance



Personal lines insurance premiums		698		588
Fee revenues		1		1
Total personal lines insurance revenues		699		589
Loss and loss expenses		846		379
Underwriting expenses		210		173
Total personal lines income (loss) before income taxes		(357)		37

Excess and surplus lines insurance
Excess and surplus lines insurance premiums		162		139
Fee revenues		1		1
Total excess and surplus lines insurance revenues		163		140
Loss and loss expenses		99		90
Underwriting expenses		44		38
Total excess and surplus lines income before income taxes		20		12

Life insurance
Life insurance premiums		80		79
Fee revenues		1		1
Total life insurance revenues		81		80
Contract holders' benefits incurred		81		79
Investment interest credited to contract holders		(32)		(31)
Underwriting expenses incurred		23		22
Total life insurance income before income taxes		9		10

Investments
Investment income, net of expenses		280		245
Investment gains and losses, net		(67)		612
Total investment revenue		213		857
Investment interest credited to contract holders		32		31
Total investment income before income taxes		181		826

Reconciliation to condensed consolidated income (loss) before income taxes
Total segment revenues		2,337		2,749
Other earned premiums		225		183
Other revenues		4		3
Total revenues		2,566		2,935
Total segment benefits and expenses		2,387		1,825
Other loss and loss expenses		207		82
Other underwriting expenses		76		58
Other benefits and expenses		24		17
Total benefits and expenses		2,694		1,982
Total income (loss) before income taxes		$	(128)	$	953

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Identifiable assets by segment are summarized in the following table:


(Dollars in millions)	March 31,		December 31,
	2025		2024
Identifiable assets:
Property casualty insurance	$	6,481	$	5,927
Life insurance	1,684		1,658
Investments	27,967		27,887
Other	1,144		1,029
Total	$	37,276	$	36,501

Item 2. Management’s Discussion and Analysis of Financial Condition and

Results of Operations

The following discussion highlights significant factors influencing the condensed consolidated results of operations and financial position of Cincinnati Financial Corporation. It should be read in conjunction with the consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K. Unless otherwise noted, the industry data is prepared by A.M. Best Co., a leading insurance industry statistical, analytical and financial strength rating organization. Information from A.M. Best is presented on a statutory basis for insurance company regulation in the United States of America. When we provide our results on a comparable statutory basis, we label it as such; all other company data is presented in accordance with accounting principles generally accepted in the United States of America (GAAP).

We present per share data on a diluted basis unless otherwise noted, adjusting those amounts for all stock splits and dividends. Dollar amounts are rounded to millions; calculations of percent changes are based on dollar amounts rounded to the nearest million. Certain percentage changes are identified as not meaningful (nm).

SAFE HARBOR STATEMENT

This is our “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

Factors that could cause or contribute to such differences include, but are not limited to:

•Effects of any future pandemic that could affect results for reasons such as:

•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

•An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses

•An unusually high level of insurance losses, including risk of court decisions extending business interruption insurance in commercial property coverage forms to cover claims for pure economic loss related to such pandemic

•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

•Inability of our workforce, agencies or vendors to perform necessary business functions

•Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns (whether as a result of climate change or otherwise), environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes and our ability to manage catastrophe risk due to inaccurate catastrophe models or incomplete data

•Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance, due to inflationary trends or other causes

•Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates

•Declines in overall stock market values negatively affecting our equity portfolio and book value

•Interest rate fluctuations or other factors that could significantly affect:

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•Our ability to generate growth in investment income

•Values of our fixed-maturity investments, including accounts in which we hold bank-owned life insurance contract assets

•Our traditional life policy reserves

•Domestic and global events, such as the wars in Ukraine and in the Middle East, recent tariff and trade policy announcements, 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:

•Significant or prolonged decline in the fair value of a particular security or group of securities and impairment of the asset(s)

•Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of 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

•Our inability to manage business opportunities, growth prospects, and expenses for our ongoing operations

•Recession, prolonged elevated inflation or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies

•Ineffective information technology systems or discontinuing to develop and implement improvements in technology may impact our success and profitability

•Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect our or our agents’ ability to conduct business; disrupt our relationships with agents, policyholders and others; cause reputational damage, mitigation expenses and 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, cyberattacks, 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 methods, including telematics and other usage-based insurance methods, or technology projects and enhancements expected to increase our pricing accuracy, underwriting profit and competitiveness

•Intense competition, and the impact of innovation, 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

•Changing consumer insurance-buying habits

•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

•Inability to obtain adequate ceded reinsurance on acceptable terms, amount of reinsurance coverage purchased, financial strength of reinsurers and the potential for nonpayment or delay in payment by reinsurers

•Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that segment could not achieve sustainable profitability

•Inability of our subsidiaries to pay dividends consistent with current or past levels

•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, such as:

•Downgrades of our financial strength ratings

•Concerns that doing business with us is too difficult

•Perceptions that our level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace

•Inability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplace

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•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

•Add 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 law

•Increase our other expenses

•Limit our ability to set fair, adequate and reasonable rates

•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 or administrative proceedings, including effects of social inflation and third-party litigation funding on the size of litigation awards

•Events or actions, including unauthorized intentional circumvention of controls, that reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002

•Unforeseen departure of certain executive officers or other key employees due to retirement, health or other causes 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 in a competitive labor market

•Events, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location or work effectively in a remote environment

Further, our insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. We also are subject to public and regulatory initiatives that can affect the market value for our common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

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CORPORATE FINANCIAL HIGHLIGHTS

Net Income and Comprehensive Income Data


(Dollars in millions, except per share data)	Three months ended March 31,
		2025		2024		% Change
Earned premiums		$	2,344	$	2,071	13
Investment income, net of expenses (pretax)		280		245		14
Investment gains and losses, net (pretax)		(67)		612		nm
Total revenues		2,566		2,935		(13)
Net income (loss)		(90)		755		nm
Comprehensive income (loss)		(52)		748		nm
Net income (loss) per share—diluted		(0.57)		4.78		nm
Cash dividends declared per share		0.87		0.81		7
Diluted weighted average shares outstanding		156.4		157.9		(1)

Total revenues decreased $369 million for the first quarter of 2025, compared with the first quarter of 2024, as a reduction in net investment gains offset higher earned premiums and investment income. Premium and investment revenue trends are discussed further in the respective sections of Financial Results.

Investment gains and losses are recognized on the sales of investments, on certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP. We have substantial discretion in the timing of investment sales, and that timing generally is independent of the insurance underwriting process. The change in fair value of securities is also generally independent of the insurance underwriting process.

The net loss for the first quarter of 2025, compared with first-quarter 2024 net income, was a change of $845 million, including decreases of $536 million in after-tax net investment gains and losses and $339 million in after-tax property casualty underwriting profit, partially offset by a $28 million increase in after-tax investment income. Catastrophe losses for the first quarter of 2025, primarily from January 2025 wildfires in southern California, were $356 million higher after taxes and unfavorably affected both net income and property casualty underwriting profit. Life insurance segment results decreased by $1 million on a pretax basis.

Performance by segment is discussed below in Financial Results. As discussed in our 2024 Annual Report on Form 10-K, Item 7, Executive Summary, Page 46, there are several reasons why our performance during 2025 may ultimately be below our long-term targets.

The board of directors is committed to rewarding shareholders directly through cash dividends and through share repurchase authorizations. Through 2024, the company had increased the annual cash dividend rate for 64 consecutive years, a record we believe is matched by only seven other U.S. publicly traded companies. In January 2025, the board of directors increased the regular quarterly dividend to 87 cents per share, setting the stage for our 65th consecutive year of increasing cash dividends. During the first three months of 2025, cash dividends declared by the company increased 7% compared with the same period of 2024. Our board regularly evaluates relevant factors in decisions related to dividends and share repurchases. The 2025 dividend increase reflected our strong operating performance and signaled management's and the board's positive outlook and confidence in our outstanding capital, liquidity and financial flexibility.

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Balance Sheet Data and Performance Measures


(Dollars in millions, except share data)	At March 31,			At December 31,
	2025			2024
Total investments	$	28,481		$	28,378
Total assets	37,276			36,501
Short-term debt	25			25
Long-term debt	790			790
Shareholders' equity	13,718			13,935
Book value per share	87.78			89.11
Debt-to-total-capital ratio	5.6		%	5.5		%

Total assets at March 31, 2025, increased 2% compared with year-end 2024, and included an increase of less than 1% in total investments that reflected net purchases that were partially offset by lower fair values for many securities in our equity portfolio. Shareholders' equity decreased 2% and book value per share decreased 1% during the first three months of 2025. Our debt-to-total-capital ratio (capital is the sum of debt plus shareholders' equity) increased slightly compared with year-end 2024.

Our value creation ratio is our primary performance metric. As shown in the tables below, that ratio was negative 0.5% for the first three months of 2025, compared with positive 5.9% for the same period in 2024. The decrease was primarily due to a reduction in overall net gains from our investment portfolio and an underwriting loss from our insurance operations. Book value per share decreased $1.33 during the first three months of 2025 and contributed negative 1.5 percentage points to the value creation ratio, while dividends declared at $0.87 per share contributed positive 1.0 point. Value creation ratio major contributors and in total, along with calculations from per-share amounts, are shown in the tables below.


	Three months ended March 31,
		2025		2024
Value creation ratio major contributors:
Net income before investment gains		(0.3)	%	2.3	%
Change in fixed-maturity securities, realized and unrealized gains		0.4		(0.4)
Change in equity securities, investment gains		(0.4)		3.9
Other		(0.2)		0.1
Value creation ratio		(0.5)	%	5.9	%

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(Dollars are per share)	Three months ended March 31,
		2025			2024
Value creation ratio:
End of period book value*		$	87.78		$	80.83
Less beginning of period book value		89.11			77.06
Change in book value		(1.33)			3.77
Dividend declared to shareholders		0.87			0.81
Total value creation		$	(0.46)		$	4.58

Value creation ratio from change in book value**		(1.5)		%	4.9		%
Value creation ratio from dividends declared to shareholders***		1.0			1.0
Value creation ratio		(0.5)		%	5.9		%

* 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

DRIVERS OF LONG-TERM VALUE CREATION

Operating through The Cincinnati Insurance Company, Cincinnati Financial Corporation is one of the 25 largest property casualty insurers in the nation, based on 2024 net written premiums for approximately 2,000 U.S. stock and mutual insurer groups. We market our insurance products through a select group of independent insurance agencies as discussed in our 2024 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Page 6. At March 31, 2025, we actively marketed through 2,199 agencies located in 46 states. We maintain a long-term perspective that guides us in addressing immediate challenges or opportunities while focusing on the major decisions that best position our company for success through all market cycles.

To measure our long-term progress in creating shareholder value, our value creation ratio is our primary financial performance target. As discussed in our 2024 Annual Report on Form 10-K, Item 7, Executive Summary, Page 46, management believes this measure is a meaningful indicator of our long-term progress in creating shareholder value and has three primary performance drivers:

•Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first three months of 2025, our consolidated property casualty net written premium year-over-year growth was 11%. As of February 2025, A.M. Best projected the industry's full-year 2025 written premium growth at approximately 7%. For the five-year period 2020 through 2024, our growth rate exceeded that of the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business.

•Combined ratio – We believe our underwriting philosophy and initiatives can generate an average GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%. For the first three months of 2025, our GAAP combined ratio was 113.3%, including 26.8 percentage points of current accident year catastrophe losses partially offset by 4.0 percentage points of favorable loss reserve development on prior accident years. Our statutory combined ratio was 112.3% for the first three months of 2025. As of February 2025, A.M. Best projected the industry's full-year 2025 statutory combined ratio at approximately 99%, including approximately 9 percentage points of catastrophe losses and a favorable effect of less than 1 percentage point of loss reserve development on prior accident years. The industry's ratio again excludes its mortgage and financial guaranty lines of business.

•Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index. For the first three months of 2025, pretax investment income was $280 million, up 14% compared with the same period in 2024. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential.

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Financial Strength

An important part of our long-term strategy is financial strength, which is described in our 2024 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Financial Strength, Page 8. One aspect of our financial strength is prudent use of reinsurance ceded to help manage financial performance variability due to catastrophe loss experience. A description of how we use reinsurance ceded is included in our 2024 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, 2025 Reinsurance Ceded Programs, Page 105. Another aspect of our financial strength is our investment portfolio, which remains well-diversified as discussed in this quarterly report in Item 3, Quantitative and Qualitative Disclosures About Market Risk. Our strong parent-company liquidity and financial strength increase our flexibility to maintain a cash dividend through all periods and to continue to invest in and expand our insurance operations.

At March 31, 2025, we held $5.028 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $4.479 billion, or 89.1%, was invested in common stocks, and $241 million, or 4.8%, was cash or cash equivalents. Our debt-to-total-capital ratio was 5.6% at March 31, 2025. Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.1-to-1 for the 12 months ended March 31, 2025, compared with 1.0-to-1 at year-end 2024.

Financial strength ratings assigned to us by independent rating firms also are important. In addition to rating our parent company's senior debt, four firms award insurer financial strength ratings to one or more of our insurance subsidiary companies based on their quantitative and qualitative analyses. These ratings primarily assess an insurer's ability to meet financial obligations to policyholders and do not necessarily address all of the matters that may be important to investors. Ratings are under continuous review and subject to change or withdrawal at any time by the rating agency. Each rating should be evaluated independently of any other rating; please see each rating agency's website for its most recent report on our ratings.

At April 25, 2025, our insurance subsidiaries continued to be highly rated.

Insurer Financial Strength Ratings

Rating
agency

Standard market property casualty insurance subsidiaries

Life insurance
subsidiary

Excess and surplus lines insurance subsidiary

Outlook

Rating
tier

A.M. Best Co.

ambest.com

A+

Superior

2 of 16

A+

Superior

2 of 16

A+

Superior

2 of 16

Stable

Fitch Ratings

fitchratings.com

A+

Strong

5 of 21

A+

Strong

5 of 21

Positive

Moody's Investors Service

moodys.com

Good

5 of 21

Stable

S&P Global Ratings

spratings.com

A+

Strong

5 of 21

A+

Strong

5 of 21

Stable

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CONSOLIDATED PROPERTY CASUALTY INSURANCE HIGHLIGHTS

Consolidated property casualty insurance results include premiums and expenses for our standard market insurance segments (commercial lines and personal lines), our excess and surplus lines segment, Cincinnati Re® and our London-based global specialty underwriter Cincinnati Global Underwriting Ltd.SM (Cincinnati Global).


(Dollars in millions)	Three months ended March 31,
		2025			2024			% Change
Earned premiums		$	2,264		$	1,992		14
Fee revenues		4			3			33
Total revenues		2,268			1,995			14
Loss and loss expenses from:
Current accident year before catastrophe losses		1,370			1,221			12
Current accident year catastrophe losses		608			149			308
Prior accident years before catastrophe losses		(50)			(68)			26
Prior accident years catastrophe losses		(41)			(32)			(28)
Loss and loss expenses		1,887			1,270			49
Underwriting expenses		679			594			14
Underwriting profit (loss)		$	(298)		$	131		nm

Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		60.5		%	61.3		%	(0.8)
Current accident year catastrophe losses		26.8			7.5			19.3
Prior accident years before catastrophe losses		(2.2)			(3.4)			1.2
Prior accident years catastrophe losses		(1.8)			(1.6)			(0.2)
Loss and loss expenses		83.3			63.8			19.5
Underwriting expenses		30.0			29.8			0.2
Combined ratio		113.3		%	93.6		%	19.7

Combined ratio		113.3		%	93.6		%	19.7
Contribution from catastrophe losses and prior years reserve development		22.8			2.5			20.3
Combined ratio before catastrophe losses and prior years reserve development		90.5		%	91.1		%	(0.6)

Our consolidated property casualty insurance operations generated an underwriting loss of $298 million for the first quarter of 2025. Compared with an underwriting profit of $131 million for the first quarter of 2024, the first-quarter 2025 decrease of $429 million included an unfavorable increase of $450 million in losses from catastrophes, mostly caused by January 2025 wildfires in southern California, and a slightly lower amount of total favorable reserve development on prior accident years. The change in underwriting profitability for the first quarter of 2025 also included a favorable effect from higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums.

Underwriting results for the first quarter of 2025 included improved current accident year loss experience before catastrophe losses, as price increases have helped to offset recent-year elevated paid losses reflecting economic or other forms of inflation. Elevated inflation was a driver of higher losses and loss expenses in recent years as costs have increased significantly to repair damaged autos or other property that we insure. We also experienced higher losses for liability coverages for some of our lines of business. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear. The higher loss experience is discussed in Financial Results by property casualty insurance segment. We believe future property casualty underwriting results will continue to benefit from price increases and our ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices.

For all property casualty lines of business in aggregate, net loss and loss expense reserves at March 31, 2025, were $488 million, or 5%, higher than at year-end 2024, including an increase of $454 million for the incurred but not reported (IBNR) portion.

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We measure and analyze property casualty underwriting results primarily by the combined ratio and its component ratios. The GAAP-basis combined ratio is the percentage of incurred losses plus all expenses per each earned premium dollar – the lower the ratio, the better the performance. An underwriting profit results when the combined ratio is below 100%. A combined ratio above 100% indicates that an insurance company's losses and expenses exceeded premiums.

Our consolidated property casualty combined ratio for the first quarter of 2025 increased by 19.7 percentage points, compared with the same period of 2024, including an increase of 19.1 points from catastrophe losses and loss expenses. Other combined ratio components that changed are discussed below and in further detail in Financial Results by property casualty insurance segment.

The combined ratio can be affected significantly by natural catastrophe losses and other large losses as discussed in detail below. The combined ratio can also be affected by updated estimates of loss and loss expense reserves established for claims that occurred in prior periods, referred to as prior accident years. Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 4.0 percentage points in the first three months of 2025, compared with 5.0 percentage points in the same period of 2024. Net favorable development is discussed in further detail in Financial Results by property casualty insurance segment.

The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first three months of 2025. That 60.5% ratio was 0.8 percentage points lower, compared with the 61.3% accident year 2024 ratio measured as of March 31, 2024, including an increase of 1.0 points in the ratio for large losses of $2 million or more per claim, discussed below. The ratio improvement of 0.8 percentage points included a decrease of 0.2 points for the IBNR portion and a decrease of 0.6 points for the case incurred portion. It also included an unfavorable 1.4 points for the net effect of $52 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.

The underwriting expense ratio increased for the first three months of 2025, compared with the same period a year ago. The increase included an unfavorable 0.7 points for the effect of reinstatement premiums. The ratio for both periods also included ongoing expense management efforts and higher earned premiums.

Consolidated Property Casualty Insurance Premiums


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Agency renewal written premiums		$	1,912	$	1,683	14
Agency new business written premiums		383		346		11


Other written premiums		200		219		(9)
Net written premiums		2,495		2,248		11
Unearned premium change		(231)		(256)		10
Earned premiums		$	2,264	$	1,992	14

The trends in net written premiums and earned premiums summarized in the table above include the effects of price increases. Price change trends that heavily influence renewal written premium increases or decreases, along with other premium growth drivers for 2025, are discussed in more detail by segment below in Financial Results.

Consolidated property casualty net written premiums for the three months ended March 31, 2025, grew $247 million compared with the same period of 2024. Our premium growth initiatives from prior years have provided an ongoing favorable effect on growth during the current year, particularly as newer agency relationships mature over time.

Consolidated property casualty agency new business written premiums increased by $37 million for the first three months of 2025, compared with the same period of 2024. New agency appointments during 2025 and 2024 produced a $24 million increase in standard lines new business for the first three months of 2025 compared with the same period of 2024. As we appoint new agencies that choose to move accounts to us, we report these accounts as new business. While this business is new to us, in many cases it is not new to the agent. We believe these

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seasoned accounts tend to be priced more accurately than business that may be less familiar to our agent upon obtaining it from a competing agent.

Net written premiums for Cincinnati Re, included in other written premiums, increased by $53 million to $255 million for the three months ended March 31, 2025, compared with the same period of 2024. Cincinnati Re assumes risks through reinsurance treaties and in some cases cedes part of the risk and related premiums to one or more unaffiliated reinsurance companies through transactions known as retrocessions. The increase included a $12 million net favorable effect from estimated premiums to reinstate treaties affected by the California wildfires.

Cincinnati Global is also included in other written premiums. Net written premiums for Cincinnati Global decreased by $7 million to $75 million for the three months ended March 31, 2025, compared with the same period of 2024.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. An increase in ceded premiums reduced net written premiums by $65 million for the first three months of 2025, compared with the same period of 2024. Other written premiums for the first quarter of 2025 included a net unfavorable amount of $52 million for reinsurance treaty reinstatement premiums related to the California wildfires, including a favorable $12 million for Cincinnati Re and an unfavorable $64 million for our personal lines insurance segment.

Catastrophe losses and loss expenses typically have a material effect on property casualty results and can vary significantly from period to period. Losses from catastrophes contributed 25.0 percentage points to the combined ratio in the first three months of 2025, compared with 5.9 percentage points in the same period of 2024.

Net losses from catastrophes for the first quarter of 2025 included recoveries from reinsurers that participate in our primary property catastrophe reinsurance treaty. The recovery related to the California wildfires based on loss estimates at the end of the quarter was $429 million. During the first quarter of 2025, we reinstated the applicable layers of our primary property catastrophe reinsurance treaty to provide coverage for catastrophic events. As a result of the reinstatement, the treaty provides the same coverage that was effective on January 1, 2025.

The reinsurance program for Cincinnati Re only effective June 1, 2024, provides retrocession coverages with various triggers, exclusions and unique features. The program includes property catastrophe excess of loss coverage in excess of $80 million per occurrence. During 2024, the program had a total available limit of $60 million per occurrence and there was no recovery from reinsurers pertaining to these treaties. During the first three months of 2025, recoveries of $38 million were estimated related to the California wildfires. As of March 31, 2025, the remaining coverage provides a total available limit of $41 million per occurrence in excess of $80 million.

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The following table shows consolidated property casualty insurance catastrophe losses and loss expenses incurred, net of reinsurance, as well as the effect of loss development on prior period catastrophe events. We individually list declared catastrophe events for which our incurred losses reached or exceeded $25 million.

Consolidated Property Casualty Insurance Catastrophe Losses and Loss Expenses Incurred


(Dollars in millions, net of reinsurance)		Three months ended March 31,
					Comm.				Pers.				E&S
Dates	Region				lines				lines				lines				Other				Total
2025
Jan. 7-28	West				$	—			$	325			$	—			$	124			$	449
Mar. 14-17	Midwest, Northeast, South				42				75				1				—				118














All other 2025 catastrophes			14				23				1				3				41
Development on 2024 and prior catastrophes			(14)				(13)				(1)				(13)				(41)
Calendar year incurred total			$	42			$	410			$	1			$	114			$	567

2024
Jan. 8-10	Midwest, Northeast, South				$	18			$	9			$	—			$	—			$	27
Mar. 12-17	Midwest, South				32				22				—				—				54







All other 2024 catastrophes			25				42				1				—				68
Development on 2023 and prior catastrophes			(8)				(21)				(1)				(2)				(32)
Calendar year incurred total			$	67			$	52			$	—			$	(2)			$	117

The following table includes data for losses incurred of $2 million or more per claim, net of reinsurance.

Consolidated Property Casualty Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended March 31,
		2025			2024			% Change
Current accident year losses greater than $5 million		$	26		$	—		nm
Current accident year losses $2 million - $5 million		20			22			(9)
Large loss prior accident year reserve development		56			22			155
Total large losses incurred		102			44			132
Losses incurred but not reported		279			251			11
Other losses excluding catastrophe losses		688			677			2
Catastrophe losses		558			111			403
Total losses incurred		$	1,627		$	1,083		50

Ratios as a percent of earned premiums:								Pt. Change
Current accident year losses greater than $5 million		1.2		%	—		%	1.2
Current accident year losses $2 million - $5 million		0.9			1.1			(0.2)
Large loss prior accident year reserve development		2.4			1.1			1.3
Total large loss ratio		4.5			2.2			2.3
Losses incurred but not reported		12.3			12.6			(0.3)
Other losses excluding catastrophe losses		30.4			34.0			(3.6)
Catastrophe losses		24.6			5.6			19.0
Total loss ratio		71.8		%	54.4		%	17.4

We believe the inherent variability of aggregate loss experience for our portfolio of larger policies is greater than that of our portfolio of smaller policies, and we continue to monitor the variability in addition to general

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inflationary trends in loss costs. Our analysis continues to indicate no unexpected concentration of large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The first-quarter 2025 property casualty total large losses incurred of $102 million, net of reinsurance, was higher than the $70 million quarterly average during full-year 2024 and the $44 million experienced for the first quarter of 2024. The ratio for these large losses was 2.3 percentage points higher compared with last year's first quarter. We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million. Losses by size are discussed in further detail in results of operations by property casualty insurance segment.

FINANCIAL RESULTS

Consolidated results reflect the operating results of each of our five segments along with the parent company, Cincinnati Re, Cincinnati Global and other activities reported as "Other." The five segments are:

•Commercial lines insurance

•Personal lines insurance

•Excess and surplus lines insurance

•Life insurance

•Investments

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COMMERCIAL LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended March 31,
		2025			2024			% Change
Earned premiums		$	1,179		$	1,082		9
Fee revenues		2			1			100
Total revenues		1,181			1,083			9
Loss and loss expenses from:
Current accident year before catastrophe losses		722			682			6
Current accident year catastrophe losses		56			75			(25)
Prior accident years before catastrophe losses		(29)			(30)			3
Prior accident years catastrophe losses		(14)			(8)			(75)
Loss and loss expenses		735			719			2
Underwriting expenses		349			325			7
Underwriting profit		$	97		$	39		149

Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		61.1		%	63.0		%	(1.9)
Current accident year catastrophe losses		4.8			7.0			(2.2)
Prior accident years before catastrophe losses		(2.4)			(2.8)			0.4
Prior accident years catastrophe losses		(1.2)			(0.8)			(0.4)
Loss and loss expenses		62.3			66.4			(4.1)
Underwriting expenses		29.6			30.1			(0.5)
Combined ratio		91.9		%	96.5		%	(4.6)

Combined ratio		91.9		%	96.5		%	(4.6)
Contribution from catastrophe losses and prior years reserve development		1.2			3.4			(2.2)
Combined ratio before catastrophe losses and prior years reserve development		90.7		%	93.1		%	(2.4)

Overview

Performance highlights for the commercial lines segment include:

•Premiums – Earned premiums and net written premiums for the commercial lines segment grew during the first three months of 2025, compared with the same period a year ago, primarily due to agency renewal written premium growth that continued to include higher average pricing as well as growth in agency new business written premiums. The table below analyzes the primary components of premiums. We continue to use predictive analytics tools to improve pricing precision and segmentation while leveraging our local relationships with agents through the efforts of our teams that work closely with them. We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a policy-by-policy basis whether to write or renew a policy.

Agency renewal written premiums increased 7% for the first three months of 2025, compared with the same period of 2024, including price increases. During the first quarter of 2025, our overall standard commercial lines policies averaged estimated renewal price increases at percentages near the low end of the high-single-digit range. We continue to segment commercial lines policies, emphasizing identification and retention of those we believe have relatively stronger pricing. Conversely, we have been seeking stricter renewal terms and conditions on policies we believe have relatively weaker pricing, thus retaining fewer of those policies. We measure average changes in commercial lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for the respective policies.

Our average overall commercial lines renewal pricing change includes the impact of flat pricing for certain coverages within package policies written for a three-year term that were in force but did not expire during

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the period being measured. Therefore, our reported change in average commercial lines renewal pricing reflects a blend of three-year policies that did not expire and other policies that did expire during the measurement period. For commercial lines policies that did expire and were then renewed during the first quarter of 2025, we estimate that our average percentage price increases were in the high-single-digit range for our commercial casualty and commercial property lines of business and in the mid-single-digit range for our commercial auto line of business. The estimated average percentage price change for workers' compensation was a decrease in the mid-single-digit range.

Our commercial lines segment's increase in agency renewal written premiums for the first three months of 2025 also included changes in the level of insured exposures. Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials to repair damaged commercial structures. We use building valuation software to automate much of that underwriting process and may also manually adjust premiums to reflect property costs.

Renewal premiums for certain policies, primarily our commercial casualty and workers' compensation lines of business, include the results of policy audits that adjust initial premium amounts based on differences between estimated and actual sales or payroll related to a specific policy. Audits completed during the first three months of 2025 contributed $23 million to net written premiums, compared with $29 million for the same period of 2024.

New business written premiums for commercial lines increased $21 million during the first three months of 2025, compared with the same period of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Trend analysis for year-over-year comparisons of individual quarters is more difficult to assess for commercial lines new business written premiums, due to inherent variability. That variability is often driven by larger policies with annual premiums greater than $100,000.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our commercial lines insurance segment, a decrease in ceded premiums increased net written premiums by approximately $4 million for the first three months of 2025, compared with the same period of 2024.

Commercial Lines Insurance Premiums


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Agency renewal written premiums		$	1,152	$	1,076	7
Agency new business written premiums		203		182		12
Other written premiums		(30)		(35)		14
Net written premiums		1,325		1,223		8
Unearned premium change		(146)		(141)		(4)
Earned premiums		$	1,179	$	1,082	9

•Combined ratio – The first-quarter 2025 commercial lines combined ratio improved by 4.6 percentage points, compared with the first quarter of 2024, including a decrease of 2.6 points in losses from catastrophes. The first-quarter combined ratio decreased by 1.9 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 0.7 points for the IBNR portion and a decrease of 2.6 points for the case incurred portion. Underwriting results also included favorable reserve development on prior accident years, as discussed below. The current accident year ratios were measured as of March 31 of the respective years and included an increase of 0.8 percentage points for the first three months of 2025 in the ratio for large losses of $2 million or more per claim, discussed below.

When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends for inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company. Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged business properties or autos that we insure, in addition to higher losses for liability coverages for some of our lines of business. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 3.6 percentage points of the combined ratio for the first three months of 2025, compared with 6.2 percentage points for the same period a year ago. Through 2024, the 10-year annual average for that catastrophe measure for the commercial lines segment was 6.0 percentage points, and the five-year annual average was 6.6 percentage points.

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The net effect of reserve development on prior accident years during the first three months of 2025 was favorable for commercial lines overall by $43 million, compared with $38 million for the same period in 2024. For the first three months of 2025, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development. The net favorable reserve development recognized during the first three months of 2025 for our commercial lines insurance segment was mainly for accident years 2024 and 2023 and was primarily due to lower-than-anticipated loss emergence on known claims. Our commercial casualty line of business included $1 million of favorable reserve development on prior accident years for the first three months of 2025. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The commercial lines underwriting expense ratio decreased for the first three months of 2025, compared with the same period a year ago. The decrease was primarily due to premium growth outpacing growth in various expenses. The ratio for both periods also included ongoing expense management efforts and higher earned premiums.

Commercial Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended March 31,
		2025			2024			% Change
Current accident year losses greater than $5 million		$	7		$	—		nm
Current accident year losses $2 million - $5 million		15			11			36
Large loss prior accident year reserve development		44			12			267
Total large losses incurred		66			23			187
Losses incurred but not reported		163			156			4
Other losses excluding catastrophe losses		318			368			(14)
Catastrophe losses		40			64			(38)
Total losses incurred		$	587		$	611		(4)

Ratios as a percent of earned premiums:								Pt. Change
Current accident year losses greater than $5 million		0.6		%	—		%	0.6
Current accident year losses $2 million - $5 million		1.2			1.0			0.2
Large loss prior accident year reserve development		3.8			1.1			2.7
Total large loss ratio		5.6			2.1			3.5
Losses incurred but not reported		13.9			14.4			(0.5)
Other losses excluding catastrophe losses		26.8			34.0			(7.2)
Catastrophe losses		3.4			6.0			(2.6)
Total loss ratio		49.7		%	56.5		%	(6.8)

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The first-quarter 2025 commercial lines total large losses incurred of $66 million, net of reinsurance, was higher than the quarterly average of $49 million during full-year 2024 and the $23 million of total large losses incurred for the first quarter of 2024. The increase in commercial lines large losses for the first three months of 2025 was primarily due to our commercial property line of business. The first-quarter 2025 ratio for commercial lines total large losses was 3.5 percentage points higher than last year's first-quarter ratio. We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

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PERSONAL LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended March 31,
		2025			2024			% Change
Earned premiums		$	698		$	588		19
Fee revenues		1			1			0
Total revenues		699			589			19
Loss and loss expenses from:
Current accident year before catastrophe losses		442			339			30
Current accident year catastrophe losses		423			73			479
Prior accident years before catastrophe losses		(6)			(12)			50
Prior accident years catastrophe losses		(13)			(21)			38
Loss and loss expenses		846			379			123
Underwriting expenses		210			173			21
Underwriting profit (loss)		$	(357)		$	37		nm

Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		63.3		%	57.7		%	5.6
Current accident year catastrophe losses		60.6			12.4			48.2
Prior accident years before catastrophe losses		(0.8)			(2.0)			1.2
Prior accident years catastrophe losses		(1.9)			(3.6)			1.7
Loss and loss expenses		121.2			64.5			56.7
Underwriting expenses		30.1			29.4			0.7
Combined ratio		151.3		%	93.9		%	57.4

Combined ratio		151.3		%	93.9		%	57.4
Contribution from catastrophe losses and prior years reserve development		57.9			6.8			51.1
Combined ratio before catastrophe losses and prior years reserve development		93.4		%	87.1		%	6.3

Overview

Performance highlights for the personal lines segment include:

•Premiums – Personal lines earned premiums and net written premiums continued to grow during the first three months of 2025, including increased agency new business and renewal written premiums that included higher average pricing. Cincinnati Private ClientSM net written premiums included in the personal lines insurance segment results totaled approximately $363 million for the first three months of 2025, compared with $330 million for the same period of 2024. Cincinnati Private Client direct written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $39 million in the first three months of 2025, compared with $37 million in the same period of 2024. The table below analyzes the primary components of premiums.

Agency renewal written premiums increased 28% for the first three months of 2025, reflecting rate increases in selected states, a higher level of insured exposures and other factors such as changes in policy deductibles or mix of business. Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials used to repair damaged homes.

We estimate that premium rates for our personal auto line of business increased at average percentages in the low-double-digit range during the first three months of 2025. For our homeowner line of business, we estimate that premium rates for the first three months of 2025 also increased at average percentages in the low-double-digit range. For both our personal auto and homeowner lines of business, some individual policies experienced lower or higher rate changes based on each risk's specific characteristics and enhanced pricing precision enabled by predictive models.

Personal lines new business written premiums increased $5 million or 4% for the first three months of 2025, compared with the same period of 2024, including an increase of approximately $8 million from Cincinnati Private Client policies and a decrease of $3 million from middle-market policies. We believe we maintained

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underwriting and pricing discipline across all personal lines markets as we expanded use of enhanced pricing precision tools.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our personal lines insurance segment, an increase in 2025 ceded premiums reduced net written premiums by approximately $67 million for the first three months of 2025, compared with the same period of 2024. Ceded premiums for the first quarter of 2025 included a net amount of $64 million for reinsurance reinstatement premiums related to the January 2025 wildfires in southern California.

Personal Lines Insurance Premiums


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Agency renewal written premiums		$	634	$	494	28
Agency new business written premiums		127		122		4
Other written premiums		(89)		(21)		(324)
Net written premiums		672		595		13
Unearned premium change		26		(7)		nm
Earned premiums		$	698	$	588	19

•Combined ratio – Our personal lines combined ratio for the first quarter of 2025 increased by 57.4 percentage points, compared with first-quarter 2024, primarily due to an increase of 49.9 points in losses from catastrophes. The first-quarter 2025 combined ratio increase also included an increase of 5.6 percentage points from current accident year loss and loss expenses before catastrophe losses, including an increase of 4.7 points for the IBNR portion and an increase of 0.9 points for the case incurred portion. The first-quarter 2025 current accident year ratio before catastrophe losses included an unfavorable 5.3 points for the effect of reinstatement premiums. The total current accident year ratios before catastrophe losses were measured as of March 31 of the respective years and included an increase of 1.7 percentage points for the first three months of 2025 in the ratio for large losses of $2 million or more per claim, discussed below.

When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends for inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company. Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged autos or homes that we insure. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 58.7 percentage points of the combined ratio for the first three months of 2025, compared with 8.8 points for the same period a year ago. The 10-year annual average catastrophe loss ratio for the personal lines segment through 2024 was 12.1 percentage points, and the five-year annual average was 13.9 percentage points.

In addition to the average rate increases discussed above, we continue to refine our pricing to better match premiums to the risk of loss on individual policies. Improved pricing precision and broad-based rate increases are expected to help position the combined ratio at a profitable level over the long term. In addition, greater geographic diversification is expected to reduce the volatility of homeowner loss ratios attributable to weather-related catastrophe losses over time.

The net effect of reserve development on prior accident years during the first quarter of 2025 was favorable for personal lines overall by $19 million, compared with $33 million for the same period of 2024. Our homeowner line of business was the main contributor to the personal lines net favorable reserve development for the first three months of 2025. The net favorable reserve development was primarily due to lower-than-anticipated loss emergence on known claims. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The personal lines underwriting expense ratio increased for the first three months of 2025, compared with the same period a year ago. The increase included an unfavorable 2.5 points for the effect of reinstatement premiums. The ratio for both periods also included ongoing expense management efforts.

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Personal Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended March 31,
		2025			2024			% Change
Current accident year losses greater than $5 million		$	19		$	—		nm
Current accident year losses $2 million - $5 million		5			11			(55)
Large loss prior accident year reserve development		12			10			20
Total large losses incurred		36			21			71
Losses incurred but not reported		74			22			236
Other losses excluding catastrophe losses		254			231			10
Catastrophe losses		405			50			710
Total losses incurred		$	769		$	324		137

Ratios as a percent of earned premiums:								Pt. Change
Current accident year losses greater than $5 million		2.8		%	—		%	2.8
Current accident year losses $2 million - $5 million		0.7			1.8			(1.1)
Large loss prior accident year reserve development		1.8			1.8			0.0
Total large loss ratio		5.3			3.6			1.7
Losses incurred but not reported		10.5			3.8			6.7
Other losses excluding catastrophe losses		36.4			39.4			(3.0)
Catastrophe losses		57.9			8.4			49.5
Total loss ratio		110.1		%	55.2		%	54.9

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. In the first quarter of 2025, the personal lines total large loss ratio, net of reinsurance, was 1.7 percentage points higher than last year's first quarter. The increase in personal lines total large losses incurred for the first three months of 2025 occurred primarily for inland marine coverages in our other personal line of business. We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

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EXCESS AND SURPLUS LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended March 31,
		2025			2024			% Change
Earned premiums		$	162		$	139		17
Fee revenues		1			1			0
Total revenues		163			140			16

Loss and loss expenses from:
Current accident year before catastrophe losses		106			92			15
Current accident year catastrophe losses		2			1			100
Prior accident years before catastrophe losses		(8)			(2)			(300)
Prior accident years catastrophe losses		(1)			(1)			0
Loss and loss expenses		99			90			10
Underwriting expenses		44			38			16
Underwriting profit		$	20		$	12		67

Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		65.6		%	65.7		%	(0.1)
Current accident year catastrophe losses		0.8			0.9			(0.1)
Prior accident years before catastrophe losses		(5.0)			(1.7)			(3.3)
Prior accident years catastrophe losses		(0.5)			(0.4)			(0.1)
Loss and loss expenses		60.9			64.5			(3.6)
Underwriting expenses		27.4			27.4			0.0
Combined ratio		88.3		%	91.9		%	(3.6)

Combined ratio		88.3		%	91.9		%	(3.6)
Contribution from catastrophe losses and prior years reserve development		(4.7)			(1.2)			(3.5)
Combined ratio before catastrophe losses and prior years reserve development		93.0		%	93.1		%	(0.1)

Overview

Performance highlights for the excess and surplus lines segment include:

•Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the first three months of 2025, compared with the same period a year ago, including increases in both agency renewal and new business written premiums. Renewal written premiums rose 12% for the three months ended March 31, 2025, compared with the same period of 2024, largely due to higher renewal pricing. For the first three months of 2025, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range. We measure average changes in excess and surplus lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for respective policies.

New business written premiums produced by agencies increased by 26% for the first three months of 2025 compared with the same period of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Some of what we report as new business came from accounts that were not new to our agents. We believe our agents' seasoned accounts tend to be priced more accurately than business that may be less familiar to them.

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Excess and Surplus Lines Insurance Premiums


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Agency renewal written premiums		$	126	$	113	12
Agency new business written premiums		53		42		26
Other written premiums		(11)		(9)		(22)
Net written premiums		168		146		15
Unearned premium change		(6)		(7)		14
Earned premiums		$	162	$	139	17

•Combined ratio – The excess and surplus lines combined ratio improved by 3.6 percentage points for the first three months of 2025, compared with the same period of 2024. The improvement was primarily due to a higher level of favorable reserve development on prior accident year loss and loss expenses for the three months ended March 31, 2025, compared with the first three months of 2024.

The 65.6% first-quarter 2025 ratio for current accident year loss and loss expenses before catastrophe losses was 0.1 percentage point lower, compared with the 65.7% accident year 2024 ratio measured as of March 31, 2024, including an increase of 2.8 points for the IBNR portion and a decrease of 2.9 points for the case incurred portion.

Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was favorable by 5.5% for the first three months of 2025, compared with 2.1% for the same period of 2024. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The excess and surplus lines underwriting expense ratio for the first three months of 2025 matched the same period a year ago. The ratio for both periods benefited from ongoing expense management efforts and premium growth.

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Excess and Surplus Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended March 31,
		2025			2024			% Change
Current accident year losses greater than $5 million		$	—		$	—		nm
Current accident year losses $2 million - $5 million		—			—			nm
Large loss prior accident year reserve development		—			—			nm
Total large losses incurred		—			—			nm
Losses incurred but not reported		46			30			53
Other losses excluding catastrophe losses		24			37			(35)
Catastrophe losses		—			1			(100)
Total losses incurred		$	70		$	68		3

Ratios as a percent of earned premiums:								Pt. Change
Current accident year losses greater than $5 million		—		%	—		%	0.0
Current accident year losses $2 million - $5 million		—			—			0.0
Large loss prior accident year reserve development		—			—			0.0
Total large loss ratio		—			—			0.0
Losses incurred but not reported		28.1			21.6			6.5
Other losses excluding catastrophe losses		14.8			26.8			(12.0)
Catastrophe losses		0.2			0.5			(0.3)
Total loss ratio		43.1		%	48.9		%	(5.8)

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. In the first quarter of both 2025 and 2024, our excess and surplus lines insurance segment had no large losses of $2 million or more per claim.

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LIFE INSURANCE RESULTS


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Earned premiums		$	80	$	79	1
Fee revenues		1		1		0
Total revenues		81		80		1
Contract holders' benefits incurred		81		79		3
Investment interest credited to contract holders		(32)		(31)		(3)
Underwriting expenses incurred		23		22		5
Total benefits and expenses		72		70		3
Life insurance segment profit		$	9	$	10	(10)

Overview

Performance highlights for the life insurance segment include:

•Revenues – Revenues increased for the three months ended March 31, 2025, compared with the same period a year ago.

Net in-force life insurance policy face amounts increased 1% to $84.712 billion at March 31, 2025, from $84.245 billion at year-end 2024.

Fixed annuity deposits received for the three months ended March 31, 2025, were $4 million, compared with $9 million for the same period of 2024. Fixed annuity deposits have a minimal impact on earned premiums because deposits received are initially recorded as liabilities. Profit is earned over time by way of interest rate spreads. We do not write variable or equity-indexed annuities.

Life Insurance Premiums


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Term life insurance		$	57	$	57	0
Whole life insurance		13		13		0
Universal life and other		10		9		11
Net earned premiums		$	80	$	79	1

•Profitability – Our life insurance segment typically reports a smaller profit compared with the life insurance subsidiary because profits from investment income spreads are included in our investments segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A profit of $9 million for our life insurance segment in the first three months of 2025, compared with a profit of $10 million for the same period of 2024, was primarily due to less favorable impacts from the unlocking of interest rate actuarial assumptions.

Life insurance segment benefits and expenses consist principally of contract holders' (policyholders') benefits incurred related to traditional life and interest-sensitive products and operating expenses incurred, net of deferred acquisition costs. Total benefits increased in the first three months of 2025 primarily due to less favorable impacts from the unlocking of interest rate actuarial assumptions.

Underwriting expenses for the first three months of 2025 increased compared with the same period a year ago, largely due to higher general insurance expense levels compared to the same period of 2024.

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. On a basis that includes investment income and investment gains or losses from life-insurance-related

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invested assets, the life insurance subsidiary reported net income of $21 million for the three months ended March 31, 2025, compared with $19 million for the three months ended March 31, 2024. The life insurance subsidiary portfolio had net after-tax investment losses of $1 million for the three months ended March 31, 2025, compared with $2 million for the three months ended March 31, 2024.

INVESTMENTS RESULTS

Overview

The investments segment contributes investment income and investment gains and losses to results of operations. Investments traditionally are our primary source of pretax and after-tax profits.

Investment Income

Pretax investment income grew 14% for the first three months of 2025, compared with the same period of 2024. Interest income increased by $41 million for the first quarter, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rate environment of the past several years. Dividend income decreased by $5 million for the three months ended March 31, 2025. The decrease was primarily due to the unfavorable effect on dividend income from net sales of equity securities during the second half of 2024. That effect was partially offset by dividend rates that have generally been increasing, although more slowly in recent quarters. Minor asset allocation adjustments in our equity portfolio in recent quarters partially offset other factors that unfavorably affected dividend income.

Investments Results


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Total investment income, net of expenses		$	280	$	245	14
Investment interest credited to contract holders		(32)		(31)		(3)
Investment gains and losses, net		(67)		612		nm
Investments profit, pretax		$	181	$	826	(78)

We continue to consider the low interest rate environment that prevailed in recent years as well as the potential for a continuation of both elevated inflation and higher bond yields as we position our portfolio. As bonds in our generally laddered portfolio mature or are called over the near term, we will reinvest with a balanced approach, keeping in mind our long-term strategy and pursuing attractive risk-adjusted after-tax yields. The table below shows the average pretax yield-to-amortized cost associated with expected principal redemptions for our fixed-maturity portfolio. The expected principal redemptions are based on par amounts and include dated maturities, calls and prefunded municipal bonds that we expect will be called during each respective time period.


(Dollars in millions)	% Yield		Principal redemptions
At March 31, 2025
Fixed-maturity pretax yield profile:
Expected to mature during the remainder of 2025	4.35	%	$	970
Expected to mature during 2026	4.47		1,195
Expected to mature during 2027	4.87		967
Average yield and total expected maturities from the remainder of 2025 through 2027	4.56		$	3,132

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The table below shows the average pretax yield-to-amortized cost for fixed-maturity securities acquired during the periods indicated. The average yield for total fixed-maturity securities acquired during the first three months of 2025 was higher than the 5.06% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2024. Our fixed-maturity portfolio's average yield of 4.92% for the first three months of 2025, from the investment income table below, was lower than the 5.06% yield for the year-end 2024 fixed-maturities portfolio.


	Three months ended March 31,
		2025		2024
Average pretax yield-to-amortized cost on new fixed-maturities:
Acquired taxable fixed-maturities		5.91	%	5.94	%
Acquired tax-exempt fixed-maturities		4.40		4.10
Average total fixed-maturities acquired		5.80		5.79

While our bond portfolio more than covers our insurance reserve liabilities, we believe our diversified common stock portfolio of mainly blue chip, dividend-paying companies represents one of our best investment opportunities for the long term. We discussed our portfolio strategies in our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21, and Item 7, Investments Outlook, Page 89. We discuss risks related to our investment income and our fixed-maturity and equity investment portfolios in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.

The table below provides details about investment income. Average yields in this table are based on the average invested asset and cash amounts indicated in the table, using fixed-maturity securities valued at amortized cost and all other securities at fair value.


(Dollars in millions)	Three months ended March 31,
		2025			2024			% Change
Investment income:
Interest		$	210		$	169		24
Dividends		67			72			(7)
Other		7			7			0
Less investment expenses		4			3			33
Investment income, pretax		280			245			14
Less income taxes		48			41			17
Total investment income, after-tax		$	232		$	204		14

Investment returns:
Average invested assets plus cash and cash equivalents		$	29,946		$	27,164
Average yield pretax		3.74		%	3.61		%
Average yield after-tax		3.10			3.00
Effective tax rate		17.2			16.7

Fixed-maturity returns:
Average amortized cost		$	17,071		$	14,535
Average yield pretax		4.92		%	4.65		%
Average yield after-tax		4.02			3.82
Effective tax rate		18.3			17.9

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Total Investment Gains and Losses

Investment gains and losses are recognized on the sale of investments, for certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP. The change in fair value for equity securities still held is included in investment gains and losses and also in net income. The change in unrealized gains or losses for fixed-maturity securities is included as a component of other comprehensive income (OCI). Accounting requirements for the allowance for credit losses for the fixed-maturity portfolio are disclosed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128.

The table below summarizes total investment gains and losses, before taxes.


(Dollars in millions)	Three months ended March 31,
		2025		2024
Investment gains and losses:
Equity securities:
Investment gains and losses on securities sold, net		$	(1)	$	(11)
Unrealized gains and losses on securities still held, net		(71)		613



Subtotal		(72)		602
Fixed maturities:

Gross realized losses		—		(1)
Change in allowance for credit losses, net		(2)		(9)

Subtotal		(2)		(10)
Other		7		20
Total investment gains and losses reported in net income		(67)		612

Change in unrealized investment gains and losses:

Fixed maturities		67		(55)
Total unrealized investment gains and losses reported in OCI		67		(55)
Total		$	—	$	557

Of the 5,140 fixed-maturity and short-term securities in the portfolio, 34 securities were trading below 70% of amortized cost at March 31, 2025. Our asset impairment committee regularly monitors the portfolio, including a quarterly review of the entire portfolio for potential credit losses. We believe that if liquidity in the markets were to significantly deteriorate or economic conditions were to significantly weaken, we could experience declines in portfolio values and possibly increases in the allowance for credit losses or write-downs to fair value.

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OTHER

We report as Other the noninvestment operations of the parent company and a noninsurance subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global, including earned premiums, loss and loss expenses and underwriting expenses in the table below.

Total revenues for the first three months of 2025 for our Other operations increased, compared with the same period of 2024, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $26 million and $16 million, respectively. Cincinnati Re had $161 million of earned premiums for the first three months of 2025 and generated an underwriting loss of $61 million due to $104 million of net catastrophe losses from January 2025 wildfires in southern California. Cincinnati Global had $64 million of earned premiums for the first three months of 2025 and generated an underwriting profit of $3 million. Total expenses for Other increased for the first three months of 2025, primarily due to higher loss and loss expenses from Cincinnati Re and Cincinnati Global.

Other income in the table below represents profit before income taxes. For the first three months of 2025, total other loss resulted from an underwriting loss from Cincinnati Re and interest expense from debt of the parent company. For the first three months of 2024, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Interest and fees on loans and leases		$	3	$	2	50
Earned premiums		225		183		23
Other revenues		1		1		0
Total revenues		229		186		23
Interest expense		13		13		0
Loss and loss expenses		207		82		152
Underwriting expenses		76		58		31
Operating expenses		11		4		175
Total expenses		307		157		96
Total other income (loss)		$	(78)	$	29	nm

TAXES

We had $38 million of income tax benefit for the three months ended March 31, 2025, compared with $198 million of income tax expense for the same period of 2024. The effective tax rate for the three months ended March 31, 2025, was 29.7% compared with 20.8% for the same period last year. The change in our effective tax rate between periods was primarily due to large changes in our net investment gains and losses included in income for the periods and changes in underwriting income and investment income.

Historically, we have pursued a strategy of investing some portion of cash flow in tax-advantaged fixed-maturity and equity securities to minimize our overall tax liability and maximize after-tax earnings. See Tax-Exempt Fixed Maturities in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk for further discussion on municipal bond purchases in our fixed-maturity investment portfolio. For tax years after 2017, for our property casualty insurance subsidiaries, approximately 75% of interest from tax-advantaged, fixed-maturity investments and approximately 40% of dividends from qualified equities are exempt from federal tax after applying proration. For our noninsurance companies, the dividend received deduction exempts 50% of dividends from qualified equities. Our life insurance company does not own tax-advantaged, fixed-maturity investments or equities subject to the dividend received deduction. Details about our effective tax rate are in this quarterly report Item 1, Note 9, Income Taxes.

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LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2025, shareholders' equity was $13.718 billion, compared with $13.935 billion at December 31, 2024. Total debt was $815 million at March 31, 2025, unchanged from December 31, 2024. At March 31, 2025, cash and cash equivalents totaled $1.010 billion, compared with $983 million at December 31, 2024.

In addition to our historically positive operating cash flow to meet the needs of operations, we have the ability to slow investing activities or sell a portion of our high-quality, liquid investment portfolio if such need arises. We also have additional capacity to borrow on our revolving short-term line of credit, as described further below.

SOURCES OF LIQUIDITY

Subsidiary Dividends

Our lead insurance subsidiary did not declare dividends to the parent company in the first three months of 2025, compared with $145 million for the same period of 2024. For full-year 2024, our lead insurance subsidiary paid dividends totaling $290 million to the parent company. State of Ohio regulatory requirements restrict the dividends our insurance subsidiary can pay. For full-year 2025, total dividends that our insurance subsidiary can pay to our parent company without regulatory approval are approximately $1.245 billion.

Investing Activities

Investment income is a source of liquidity for both the parent company and its insurance subsidiaries. We continue to focus on portfolio strategies to balance near-term income generation and long-term book value growth.

Parent company obligations can be funded with income on investments held at the parent-company level or through sales of securities in that portfolio, although our investment philosophy seeks to compound cash flows over the long term. These sources of capital can help minimize subsidiary dividends to the parent company, protecting insurance subsidiary capital.

For a discussion of our historic investment strategy, portfolio allocation and quality, see our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21.

Insurance Underwriting

Our property casualty and life insurance underwriting operations provide liquidity because we generally receive premiums before paying losses under the policies purchased with those premiums. After satisfying our cash requirements, we use excess cash flows for investment, increasing future investment income.

Historically, cash receipts from property casualty and life insurance premiums, along with investment income, have been more than sufficient to pay claims, operating expenses and dividends to the parent company.

The table below shows a summary of the operating cash flow for property casualty insurance (direct method):


(Dollars in millions)	Three months ended March 31,
		2025		2024		% Change
Premiums collected		$	2,277	$	2,044	11
Loss and loss expenses paid		(1,399)		(1,037)		(35)
Commissions and other underwriting expenses paid		(924)		(808)		(14)
Cash flow from underwriting		(46)		199		nm
Investment income received		206		165		25
Cash flow from operations		$	160	$	364	(56)

Collected premiums for property casualty insurance rose $233 million during the first three months of 2025, compared with the same period in 2024. Loss and loss expenses paid for the 2025 period increased $362 million. Commissions and other underwriting expenses paid increased $116 million.

We discuss our future obligations for claims payments and for underwriting expenses in our 2024 Annual Report on Form 10-K, Item 7, Obligations, Page 95.

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Capital Resources

At March 31, 2025, our debt-to-total-capital ratio was 5.6%, considerably below our 35% covenant threshold, with $790 million in long-term debt and $25 million in borrowing on our revolving short-term line of credit. At March 31, 2025, $275 million was available for future cash management needs as part of the general provisions of the line of credit agreement, with another $300 million available as part of an accordion feature. Based on our capital requirements at March 31, 2025, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year. As a result, we expect changes in our debt-to-total-capital ratio to continue to be largely a function of the contribution of unrealized investment gains or losses to shareholders' equity. During 2024, we terminated our unsecured letter of credit agreement, which provided a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's. We replaced the letter of credit agreement with common equities, bringing total common equities held in Lloyd's trust accounts to $215 million.

We provide details of our three long-term notes in this quarterly report Item 1, Note 3, Fair Value Measurements. None of the notes are encumbered by rating triggers.

Four independent ratings firms award insurer financial strength ratings to our property casualty insurance companies and three firms rate our life insurance company. Those firms made no changes to our parent company debt ratings during the three months of 2025. Our debt ratings are discussed in our 2024 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, Long-Term Debt, Page 94.

Off-Balance Sheet Arrangements

We do not use any special-purpose financing vehicles or have any undisclosed off-balance sheet arrangements (as that term is defined in applicable SEC rules) that are reasonably likely to have a current or future material effect on the company's financial condition, results of operation, liquidity, capital expenditures or capital resources. Similarly, the company holds no fair-value contracts for which a lack of marketplace quotations would necessitate the use of fair-value techniques.

USES OF LIQUIDITY

Our parent company and insurance subsidiary have contractual obligations and other commitments. In addition, one of our primary uses of cash is to enhance shareholder return.

Contractual Obligations

We estimated our future contractual obligations as of December 31, 2024, in our 2024 Annual Report on Form 10-K, Item 7, Contractual Obligations, Page 95. There have been no material changes to our estimates of future contractual obligations since our 2024 Annual Report on Form 10-K.

Other Commitments

In addition to our contractual obligations, we have other property casualty operational commitments:

•Commissions – Commissions paid were $635 million in the first three months of 2025. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year.

•Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $289 million in the first three months of 2025.

There were no contributions to our qualified pension plan during the first three months of 2025.

Investing Activities

After fulfilling operating requirements, we invest cash flows from underwriting, investment and other corporate activities in fixed-maturity and equity securities on an ongoing basis to help achieve our portfolio objectives. We discuss our investment strategy and certain portfolio attributes in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.

Uses of Capital

Uses of cash to enhance shareholder return include dividends to shareholders and shares acquired under our repurchase program. In January 2025, the board of directors declared regular quarterly cash dividends of 87 cents

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per share for an indicated annual rate of $3.48 per share. During the first three months of 2025, we used $125 million to pay cash dividends to shareholders.

PROPERTY CASUALTY INSURANCE LOSS AND LOSS EXPENSE RESERVES

For the business lines in the commercial and personal lines insurance segments, and in total for the excess and surplus lines insurance segment and other property casualty insurance operations, the following table details gross reserves among case, IBNR (incurred but not reported) and loss expense reserves, net of salvage and subrogation reserves. Reserving practices are discussed in our 2024 Annual Report on Form 10-K, Item 7, Property Casualty Loss and Loss Expense Obligations and Reserves, Page 96.

Total gross reserves at March 31, 2025, increased $770 million compared with December 31, 2024. Case loss reserves increased by $129 million, IBNR loss reserves increased by $577 million and loss expense reserves increased by $64 million. The total gross increase was primarily due to our homeowner and commercial casualty and lines of business and also Cincinnati Re.

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Property Casualty Gross Reserves


(Dollars in millions)	Loss reserves				Loss expense reserves		Total gross reserves
	Case reserves		IBNR reserves						Percent of total
At March 31, 2025
Commercial lines insurance:
Commercial casualty	$	1,138	$	1,577	$	838	$	3,553	33.2	%
Commercial property	217		266		93		576		5.4
Commercial auto	418		391		166		975		9.1
Workers' compensation	382		572		98		1,052		9.8
Other commercial	159		56		144		359		3.4
Subtotal	2,314		2,862		1,339		6,515		60.9
Personal lines insurance:
Personal auto	264		127		105		496		4.6
Homeowner	370		341		95		806		7.5
Other personal	114		190		9		313		2.9
Subtotal	748		658		209		1,615		15.0
Excess and surplus lines	382		471		300		1,153		10.8
Cincinnati Re	218		964		8		1,190		11.1
Cincinnati Global	121		109		4		234		2.2
Total	$	3,783	$	5,064	$	1,860	$	10,707	100.0	%
At December 31, 2024
Commercial lines insurance:
Commercial casualty	$	1,121	$	1,498	$	824	$	3,443	34.7	%
Commercial property	251		199		90		540		5.4
Commercial auto	423		355		159		937		9.4
Workers' compensation	389		564		89		1,042		10.5
Other commercial	159		45		137		341		3.4
Subtotal	2,343		2,661		1,299		6,303		63.4
Personal lines insurance:
Personal auto	260		106		100		466		4.7
Homeowner	244		134		88		466		4.7
Other personal	102		166		9		277		2.8
Subtotal	606		406		197		1,209		12.2
Excess and surplus lines	395		425		289		1,109		11.2
Cincinnati Re	191		880		8		1,079		10.8
Cincinnati Global	119		115		3		237		2.4
Total	$	3,654	$	4,487	$	1,796	$	9,937	100.0	%

LIFE POLICY AND INVESTMENT CONTRACT RESERVES

Gross life policy and investment contract reserves were $2.968 billion at March 31, 2025, compared with $2.960 billion at year-end 2024. Details about these reserves are in this quarterly report Item 1, Note 5, Life Policy and Investment Contract Reserves. We discussed our life insurance reserving practices in our 2024 Annual Report on Form 10-K, Item 7, Life Insurance Policyholder Obligations and Reserves, Page 102, and updated that disclosure in this quarterly report Item 1, Note 1, Accounting Policies.

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OTHER MATTERS

SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are discussed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128, and updated in this quarterly report Item 1, Note 1, Accounting Policies.

In conjunction with those discussions, in the Management's Discussion and Analysis in the 2024 Annual Report on Form 10-K, management reviewed the estimates and assumptions used to develop reported amounts related to the most significant policies. Management discussed the development and selection of those accounting estimates with the audit committee of the board of directors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our greatest exposure to market risk is through our investment portfolio. Market risk is the potential for a decrease in securities' fair value resulting from broad yet uncontrollable forces such as: inflation, economic growth or recession, interest rates, world political conditions or other widespread unpredictable events. It is comprised of many individual risks that, when combined, create a macroeconomic impact.

Our view of potential risks and our sensitivity to such risks is discussed in our 2024 Annual Report on Form 10-K, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, Page 112.

The fair value of our investment portfolio was $27.741 billion at March 31, 2025, up $76 million from year-end 2024, including a $341 million increase in the fixed-maturity portfolio, a $67 million decrease in the equity portfolio and a $198 million decrease in short-term investments.


(Dollars in millions)	At March 31, 2025								At December 31, 2024
	Cost or amortized cost		Percent of total		Fair value		Percent of total		Cost or amortized cost		Percent of total		Fair value		Percent of total
Taxable fixed maturities	$	12,949	61.4	%	$	12,636	45.5	%	$	12,668	60.4	%	$	12,243	44.2	%
Tax-exempt fixed maturities	4,060		19.3		3,887		14.0		4,067		19.4		3,939		14.2
Common equities	3,587		17.0		10,782		38.9		3,568		17.0		10,836		39.2
Nonredeemable preferred equities	377		1.8		336		1.2		385		1.8		349		1.3
Short-term investments	100		0.5		100		0.4		298		1.4		298		1.1
Total	$	21,073	100.0	%	$	27,741	100.0	%	$	20,986	100.0	%	$	27,665	100.0	%

At March 31, 2025, substantially all of our consolidated investment portfolio, measured at fair value, is classified as Level 1 or Level 2. See Item 1, Note 3, Fair Value Measurements, for additional discussion of our valuation techniques.

In addition to our investment portfolio, the total investments amount reported in our condensed consolidated balance sheets includes Other invested assets. Other invested assets included $592 million of private equity investments, $97 million of real estate through direct property ownership and development projects in the United States, $36 million of life policy loans and $15 million in Lloyd's deposit at March 31, 2025.

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FIXED-MATURITY SECURITIES INVESTMENTS

By maintaining a well-diversified fixed-maturity portfolio, we attempt to reduce overall risk. We invest new money in the bond market on a regular basis, targeting what we believe to be optimal risk-adjusted, after-tax yields. Risk, in this context, includes interest rate, call, reinvestment rate, credit and liquidity risk. We do not make a concerted effort to alter duration on a portfolio basis in response to anticipated movements in interest rates. By regularly investing in the bond market, we build a broad, diversified portfolio that we believe mitigates the impact of adverse economic factors.

In the first three months of 2025, the increase in fair value of our fixed-maturity portfolio was due to net purchases of securities, plus a decrease in our net unrealized loss position that reflected a decrease in U.S. Treasury yields partially offset by a widening of corporate credit spreads. At March 31, 2025, our fixed-maturity portfolio with an average rating of A2/A+ was valued at 97.1% of its amortized cost, compared with 96.7% at December 31, 2024.

At March 31, 2025, our investment-grade fixed-maturity securities represented 97.7% of the portfolio based on ratings provided by nationally recognized statistical rating organizations or the Securities Valuation Office of the National Association of Insurance Commissioners.

Attributes of the fixed-maturity portfolio include:


	At March 31, 2025		At December 31, 2024
Weighted average yield-to-amortized cost	5.15	%	5.06	%
Weighted average maturity	10.3	yrs	10.2	yrs
Effective duration	5.0	yrs	5.0	yrs

We discuss maturities of our fixed-maturity portfolio in our 2024 Annual Report on Form 10-K, Item 8, Note 2, Investments, Page 135, and in this quarterly report Item 2, Investments Results.

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TAXABLE FIXED MATURITIES

Our taxable fixed-maturity portfolio, with a fair value of $12.636 billion at March 31, 2025, included:


(Dollars in millions)	At March 31, 2025		At December 31, 2024
Investment-grade corporate	$	8,350	$	8,070
Government-sponsored enterprises	2,310		2,274
States, municipalities and political subdivisions	805		782
Asset-backed	645		551
Noninvestment-grade corporate	283		310
United States government	216		226
Foreign government	27		30


Total	$	12,636	$	12,243

Our strategy is to buy, and typically hold, fixed-maturity investments to maturity, but we monitor credit profiles and fair value movements when determining holding periods for individual securities. With the exception of United States agency issues that include government-sponsored enterprises, no individual issuer's securities accounted for more than 0.8% of the taxable fixed-maturity portfolio at March 31, 2025. Our investment-grade corporate bonds had an average rating of Baa1 by Moody's or BBB+ by S&P Global Ratings and represented 66.1% of the taxable fixed-maturity portfolio's fair value at March 31, 2025, compared with 65.9% at year-end 2024.

The heaviest concentration in our investment-grade corporate bond portfolio, based on fair value at

March 31, 2025, was the financial sector. It represented 32.1% of our investment-grade corporate bond portfolio, compared with 33.8% at year-end 2024. The utility and energy sectors represented 13.0% and 11.2%, compared with 13.0% and 10.6%, respectively, at year-end 2024. No other sector exceeded 10% of our investment-grade corporate bond portfolio.

As discussed in our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30, investments in the financial sector include various risks. See risk factors entitled “Financial disruption or a prolonged economic downturn could affect our investment performance” and “Our ability to achieve our performance objectives could be affected by changes in the financial, credit and capital markets or the general economy.”

Our taxable fixed-maturity portfolio at March 31, 2025, included $645 million of asset-backed securities at fair value with an average rating of Aa1/AA.

TAX-EXEMPT FIXED MATURITIES

At March 31, 2025, we had $3.887 billion of tax-exempt fixed-maturity securities at fair value with an average rating of Aa2/AA by Moody's and S&P Global Ratings. We traditionally have purchased municipal bonds focusing on general obligation and essential services issues, such as water, waste disposal or others. The portfolio is well diversified among approximately 1,900 municipal bond issuers. No single municipal issuer accounted for more than 0.6% of the tax-exempt fixed-maturity portfolio at March 31, 2025.

INTEREST RATE SENSITIVITY ANALYSIS

Because of our strong surplus, long-term investment horizon and ability to hold most fixed-maturity investments until maturity, we believe the company is adequately positioned if interest rates were to rise. Although the fair values of our existing holdings may suffer, a higher rate environment would provide the opportunity to invest cash flow in higher-yielding securities, while reducing the likelihood of untimely redemptions of currently callable securities. While higher interest rates would be expected to continue to increase the number of fixed-maturity holdings trading below 100% of amortized cost, we believe lower fixed-maturity security values due solely to interest rate changes would not signal a decline in credit quality. We continue to manage the portfolio with an eye toward both meeting current income needs and managing interest rate risk.

Our dynamic financial planning model uses analytical tools to assess market risks. As part of this model, the effective duration of the fixed-maturity portfolio is continually monitored by our investment department to evaluate the theoretical impact of interest rate movements.

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The table below summarizes the effect of hypothetical changes in interest rates on the fair value of the fixed-maturity portfolio:


(Dollars in millions)	Effect from interest rate change in basis points
	-200		-100		—		100		200
At March 31, 2025	$	18,178	$	17,347	$	16,523	$	15,635	$	14,724
At December 31, 2024	$	17,750	$	16,967	$	16,182	$	15,317	$	14,433

The effective duration of the fixed-maturity portfolio as of March 31, 2025, was 5.0 years, matching year-end 2024. The above table is a theoretical presentation showing that an instantaneous, parallel shift in the yield curve of 100 basis points could produce an approximately 5.0% change in the fair value of the fixed-maturity portfolio. Generally speaking, the higher a bond is rated, the more directly correlated movements in its fair value are to changes in the general level of interest rates, exclusive of call features. The fair values of average- to lower-rated corporate bonds are additionally influenced by the expansion or contraction of credit spreads.

In our dynamic financial planning model, the selected interest rate change of 100 to 200 basis points represents our view of a shift in rates that is quite possible over a one-year period. The rates modeled should not be considered a prediction of future events as interest rates may be much more volatile in the future. The analysis is not intended to provide a precise forecast of the effect of changes in rates on our results or financial condition, nor does it take into account any actions that we might take to reduce exposure to such risks.

SHORT-TERM INVESTMENTS

Our short-term investments consist of commercial paper purchased within one year of maturity. We make short-term investments primarily with funds to be used to make upcoming cash payments, such as dividends, taxes or other corporate purposes. At March 31, 2025, we had $100 million of short-term investments.

EQUITY INVESTMENTS

Our equity investments, with a fair value totaling $11.118 billion at March 31, 2025, included $10.782 billion of common stock securities of companies generally with strong indications of paying and growing their dividends. Other criteria we evaluate include increasing sales and earnings, proven management and a favorable outlook. We believe our equity investment style is an appropriate long-term strategy. While our long-term financial position would be affected by prolonged changes in the market valuation of our investments, we believe our strong surplus position and cash flow provide a cushion against short-term fluctuations in valuation. Continued payment of cash dividends by the issuers of our common equity holdings can provide a floor to their valuation.

The table below summarizes the effect of hypothetical changes in market prices on fair value of our equity portfolio.


(Dollars in millions)	Effect from market price change in percent
		-30%		-20%		-10%		—		10%		20%		30%
At March 31, 2025		$	7,783	$	8,894	$	10,006	$	11,118	$	12,230	$	13,342	$	14,453
At December 31, 2024		$	7,830	$	8,948	$	10,067	$	11,185	$	12,304	$	13,422	$	14,541

At March 31, 2025, Apple Inc.(Nasdaq:AAPL) was our largest single common stock holding with a fair value of $786 million, or 7.3% of our publicly traded common stock portfolio and 2.8% of the total investment portfolio. Forty-two holdings (among nine different sectors) each had a fair value greater than $100 million.

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Common Stock Portfolio Industry Sector Distribution


	Percent of common stock portfolio
	At March 31, 2025				At December 31, 2024
	Cincinnati Financial		S&P 500 Industry Weightings		Cincinnati Financial		S&P 500 Industry Weightings
Sector:
Information technology	29.1	%	29.6	%	32.6	%	32.5	%
Industrials	14.3		8.5		14.3		8.2
Financial	12.7		14.7		12.4		13.6
Healthcare	12.0		11.2		10.8		10.1
Consumer discretionary	7.8		10.3		7.6		11.2
Consumer staples	7.7		6.0		6.9		5.5
Materials	4.6		2.0		4.7		1.9
Energy	4.6		3.7		4.2		3.2
Utilities	3.5		2.5		3.1		2.3
Real estate	2.3		2.3		2.1		2.1
Communication services	1.4		9.2		1.3		9.4
Total	100.0	%	100.0	%	100.0	%	100.0	%

UNREALIZED INVESTMENT GAINS AND LOSSES

At March 31, 2025, unrealized investment gains before taxes for the fixed-maturity portfolio totaled $96 million and unrealized investment losses amounted to $582 million before taxes.

The $486 million net unrealized loss position in our fixed-maturity portfolio at March 31, 2025, decreased in the first three months of 2025, primarily due to a decrease in U.S. Treasury yields partially offset by a widening of corporate credit spreads. The net loss position for our current fixed-maturity holdings will naturally decline over time as individual securities approach maturity. In addition, changes in interest rates can cause rapid, significant changes in fair values of fixed-maturity securities and the net loss position, as discussed in Quantitative and Qualitative Disclosures About Market Risk.

For federal income tax purposes, taxes on gains from appreciated investments generally are not due until securities are sold. We believe that the appreciated value of equity securities, compared with the cost of securities that is generally used as a tax basis, is a useful measure to help evaluate how fair value can change over time. On this basis, the net unrealized investment gains at March 31, 2025, consisted of a net gain position in our equity portfolio of $7.154 billion. Events or factors such as economic growth or recession can affect the fair value and unrealized investment gains of our equity securities. The five largest holdings in our common stock portfolio were Apple, Microsoft (Nasdaq:MSFT), Abbvie Inc. (NYSE:ABBV), JPMorgan Chase & Co (NYSE:JPM) and Broadcom Inc. (Nasdaq:AVGO), which had a combined fair value of $2.716 billion.

Unrealized Investment Losses

We expect the number of fixed-maturity securities trading below amortized cost to fluctuate as interest rates rise or fall and credit spreads expand or contract due to prevailing economic conditions. Further, amortized costs for some securities are revised through write-downs recognized in prior periods. At March 31, 2025, 3,679 of the 5,140 fixed-maturity and short-term securities we owned had fair values below amortized cost, compared with 3,723 of the 5,090 securities we owned at year-end 2024. The 3,679 holdings with fair values below amortized cost at March 31, 2025, represented 65.7% of the fair value of our fixed-maturity and short-term investments portfolio and $582 million in unrealized losses.

•2,807 of the 3,679 holdings had fair value between 90% and 100% of amortized cost at March 31, 2025. These primarily consist of securities whose current valuation is largely the result of interest rate factors. The fair value of these 2,807 securities was $9.407 billion, and they accounted for $237 million in unrealized losses.

•838 of the 3,679 holdings had fair value between 70% and 90% of amortized cost at
March 31, 2025. We believe the 838 securities will continue to pay interest and ultimately pay principal upon

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maturity. The issuers of these 838 securities have strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of these securities was $1.469 billion, and they accounted for $321 million in unrealized losses.

•34 of the 3,679 holdings had fair value below 70% of amortized cost at March 31, 2025. We believe these securities will continue to pay interest and ultimately pay principal upon maturity. The fair value of these securities was $44 million, and they accounted for $24 million in unrealized losses.

The table below reviews fair values and unrealized losses by investment category and by the overall duration of the securities' continuous unrealized loss position.


(Dollars in millions)	Less than 12 months				12 months or more				Total
At March 31, 2025	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity:
Corporate	$	2,184	$	53	$	3,487	$	225	$	5,671	$	278
States, municipalities and political subdivisions	1,565		36		2,075		255		3,640		291
Government-sponsored enterprises	1,002		2		102		1		1,104		3
Asset-backed	222		4		88		5		310		9
United States government	—		—		95		1		95		1
Foreign government	—		—		—		—		—		—
Total fixed-maturity	4,973		95		5,847		487		10,820		582
Short-term	100		—		—		—		100		—





Total fixed-maturity and short-term investments	$	5,073	$	95	$	5,847	$	487	$	10,920	$	582
At December 31, 2024
Fixed-maturity:
Corporate	$	2,815	$	78	$	3,634	$	255	$	6,449	$	333
States, municipalities and political subdivisions	1,513		25		1,898		245		3,411		270
Government-sponsored enterprises	1,876		8		92		1		1,968		9
Asset-backed	331		10		96		7		427		17
United States government	48		—		100		2		148		2
Foreign government	—		—		3		—		3		—
Total fixed-maturity	6,583		121		5,823		510		12,406		631
Short-term	100		—		—		—		100		—




Total fixed-maturity and short-term investments	$	6,683	$	121	$	5,823	$	510	$	12,506	$	631

At March 31, 2025, applying our invested asset impairment policy, we determined that the total of $582 million, for securities in an unrealized loss position in the table above, was not the result of a credit loss.

During the first three months of 2025, no fixed maturity securities were written down to fair value, due to an intention to be sold. The allowance for credit losses increased $2 million during the first three months of 2025. During the first three months of 2024, no fixed maturity securities were written down to fair value, due to an intention to be sold. The increase in the allowance for credit losses was $9 million during the first three months of 2024.

During the full year of 2024, no securities were written down to fair value. At December 31, 2024, 3,723 fixed-maturity and short-term securities with a total unrealized loss of $631 million were in an unrealized loss position. Of that total, 19 securities had fair values below 70% of amortized cost.

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The following table summarizes the investment portfolio by severity of decline:


(Dollars in millions)	Number of issues	Amortized cost		Fair value		Gross unrealized gain (loss)		Gross investment income
At March 31, 2025
Taxable fixed maturities:
Fair valued below 70% of amortized cost	8	$	26	$	16	$	(10)	$	—
Fair valued at 70% to less than 100% of amortized cost	1,788	8,258		7,866		(392)		102
Fair valued at 100% and above of amortized cost	868	4,665		4,754		89		68
Investment income on securities sold in current year	—	—		—		—		3
Total	2,664	12,949		12,636		(313)		173
Tax-exempt fixed maturities:
Fair valued below 70% of amortized cost	26	42		28		(14)		—
Fair valued at 70% to less than 100% of amortized cost	1,856	3,076		2,910		(166)		26
Fair valued at 100% and above of amortized cost	593	942		949		7		9
Investment income on securities sold in current year	—	—		—		—		—
Total	2,475	4,060		3,887		(173)		35
Fixed-maturities summary:
Fair valued below 70% of amortized cost	34	68		44		(24)		—
Fair valued at 70% to less than 100% of amortized cost	3,644	11,334		10,776		(558)		128
Fair valued at 100% and above of amortized cost	1,461	5,607		5,703		96		77
Investment income on securities sold in current year	—	—		—		—		3
Total	5,139	17,009		16,523		(486)		208
Short-term investments:
Fair valued below 70% of cost	—	—		—		—		—
Fair valued at 70% to less than 100% of cost	1	100		100		—		1
Fair valued at 100% and above of cost	—	—		—		—		—
Investment income on securities sold in current year	—	—		—		—		1
Total	1	100		100		—		2






Fixed maturities and short-term investments summary:
Fair valued below 70% of cost	34	68		44		(24)		—
Fair valued at 70% to less than 100% of cost	3,645	11,434		10,876		(558)		129
Fair valued at 100% and above of cost	1,461	5,607		5,703		96		77
Investment income on securities sold in current year	—	—		—		—		4
Total	5,140	$	17,109	$	16,623	$	(486)	$	210

At December 31, 2024
Fixed maturities and short-term investments summary:
Fair valued below 70% of amortized cost	19	$	43	$	28	$	(15)	$	2
Fair valued at 70% to less than 100% of amortized cost	3,704	13,094		12,478		(616)		461
Fair valued at 100% and above of amortized cost	1,367	3,896		3,974		78		184
Investment income on securities sold in current year	—	—		—		—		86
Total	5,090	$	17,033	$	16,480	$	(553)	$	733

See our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Asset Impairment, Page 56.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures – The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)).

Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The company's management, with the participation of the company's chief executive officer and chief financial officer, has evaluated the effectiveness of the design and operation of the company's disclosure controls and procedures as of March 31, 2025. Based upon that evaluation, the company's chief executive officer and chief financial officer concluded that the design and operation of the company's disclosure controls and procedures provided reasonable assurance that the disclosure controls and procedures are effective to ensure:

•that information required to be disclosed in the company's reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and

•that such information is accumulated and communicated to the company's management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting – During the three months ended March 31, 2025, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

Neither the company nor any of our subsidiaries are involved in any litigation believed to be material other than ordinary, routine litigation incidental to the nature of our business.

Item 1A. Risk Factors

Our risk factors have not changed materially since they were described in our 2024 Annual Report on Form 10-K filed February 24, 2025. Investors should not interpret the disclosure of a risk to imply that the risk has not already materialized.

More recently, changes in international trade regulation or foreign trade policy, including tariffs, could lead to higher than anticipated inflation and supply chain disruption, which impacts personal and commercial insurance loss costs and premiums.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not sell any of our shares that were not registered under the Securities Act during the first three months of 2025. Our repurchase program does not have an expiration date. On January 26, 2018, an additional 15 million shares were authorized, which expanded our current repurchase program. We have 5,314,506 shares available for purchase under our programs at March 31, 2025.


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
January 1-31, 2025	—	—		—	5,614,506
February 1-28, 2025	—	—		—	5,614,506
March 1-31, 2025	300,000	$	139.96	300,000	5,314,506






Totals	300,000	139.96		300,000

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Item 5. Other Information

Neither the company nor any of our officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement as defined by Item 408(a) and Item 408(d) of Regulation S-K during the last fiscal quarter.

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Item 6. Exhibits


Exhibit No.						Exhibit Description
3.1						Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (incorporated by reference to the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, Exhibit 3.1)
3.2						Amended and Restated Code of Regulations of Cincinnati Financial Corporation, as of May 6, 2023 (incorporated by reference to Exhibit 3.1 filed with the company's Current Report on Form 8-K dated May 9, 2023)
31A						Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer
31B						Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer
32						Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002
101.INS						The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						XBRL Taxonomy Extension Label Linkbase Document
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


CINCINNATI FINANCIAL CORPORATION
Date: April 28, 2025

/S/ Michael J. Sewell
Michael J. Sewell, CPA
Chief Financial Officer, Executive Vice President and Treasurer
(Principal Accounting Officer)

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