What changed in this filing

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Item 1. Financial Statements

2025-04-28 compared with 2024-10-24 · 159 added, 255 removed, 642 unchanged (39% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(Dollars in millions, except per share data) September 30, December 31,

(Dollars in millions, except per share data) March 31, December 31,

Fixed maturities, at fair value (amortized cost:

6 unchanged sentences

11,118 11,185

Short-term investments, at fair value (amortized cost:

Other invested assets 740 713

34 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(Dollars in millions, except per share data) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions, except per share data) Three months ended March 31,

Earned premiums $ 2,344 $ 2,071

20 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Net Income (Loss) $ ( 90 ) $ 755

1 unchanged sentence

Change in unrealized gains and losses on investments, net of tax (benefit) of $ 14 and $( 11 ), respectively

391 ( 290 ) 289 ( 284 )

Amortization of pension actuarial loss (gain) and prior service cost, net of tax (benefit) of $ 0 and $ 0 , respectively

Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $( 3 ) and $ 10 , respectively

( 71 ) 89 ( 5 ) 76

Other comprehensive income (loss) 38 ( 7 )

1 unchanged sentence

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Beginning of period $ 397 $ 397

5 unchanged sentences

Share-based compensation 15 14

Other 2 2 5 4

End of period 1,511 1,446

11 unchanged sentences

Share-based awards 6 8

Shares acquired - share repurchase

authorization — — ( 121 ) ( 67 )

Shares acquired - share-based

compensation plans ( 7 ) ( 2 ) ( 26 ) ( 5 )

Other 1 1 1 2

Shares acquired - share repurchase authorization ( 42 ) ( 75 )

Shares acquired - share-based compensation plans ( 3 ) ( 7 )

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

8 unchanged sentences

compensation plans — ( 0.1 )

Other 0.1 0.1 0.1 0.1

End of period 156.3 156.5

1 unchanged sentence

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in millions) Nine months ended September 30,

(Dollars in millions) Three months ended March 31,

Cash Flows From Operating Activities

Net income $ 1,887 $ 660

Net income (loss) $ ( 90 ) $ 755

Adjustments to reconcile net income to net cash provided by operating activities:

17 unchanged sentences

Purchase of equity securities ( 22 ) ( 226 )

Change in short-term investments, net 200 —

Changes in finance receivables ( 3 ) 2

5 unchanged sentences

Shares acquired - share repurchase authorization ( 42 ) ( 75 )

Changes in note payable

Proceeds from stock options exercised 4 3

7 unchanged sentences

Supplemental Disclosures of Cash Flow Information:

Interest paid $ 27 $ 28

Income taxes paid 2 106

4 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6 unchanged sentences

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 September 30, 2024, condensed consolidated financial statements are unaudited.

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.

2 unchanged sentences

Pending Accounting Updates

ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss.

This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources.

The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented.

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.

ASU 2023-09, Income Taxes (Topic 740):

6 unchanged sentences

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 2 – Investments

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

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 September 30, 2024 gains losses

Fixed-maturity securities:

At March 31, 2025 gains losses

Fixed-maturity:

Corporate $ 8,833 $ 78 $ 278 $ 8,633

4 unchanged sentences

Foreign government 27 — — 27

Total $ 16,074 $ 201 $ 404 $ 15,871

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 securities:

Fixed-maturity:

Corporate $ 8,652 $ 61 $ 333 $ 8,380

4 unchanged sentences

Foreign government 30 — — 30

Total $ 14,361 $ 117 $ 687 $ 13,791

The decrease in net unrealized investment losses in our fixed-maturity portfolio at September 30, 2024, is primarily due to a decrease in U.S.

Treasury yields and a tightening of corporate credit spreads as well as realized losses on sales of some lower-yielding fixed maturities.

Our asset-backed securities had an average rating of Aa2/AA- and Aa3/AA- at September 30, 2024, and December 31, 2023, respectively.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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

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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30, 2024 Fair

At March 31, 2025 Fair

value Unrealized

1 unchanged sentence

value Unrealized

Fixed-maturity securities:

Fixed-maturity:

Corporate $ 2,184 $ 53 $ 3,487 $ 225 $ 5,671 $ 278

4 unchanged sentences

Foreign government — — — — — —

Total $ 1,452 $ 10 $ 6,272 $ 394 $ 7,724 $ 404

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 securities:

Fixed-maturity:

Corporate $ 2,815 $ 78 $ 3,634 $ 255 $ 6,449 $ 333

4 unchanged sentences

Foreign government — — 3 — 3 —

Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687

Contractual maturity dates for fixed-maturities securities were:

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

value % of fair

At September 30, 2024

At March 31, 2025

Maturity dates:

5 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Investment income:

1 unchanged sentence

Dividends 67 72

Other 7 5 18 18

Total 284 248

7 unchanged sentences

Fixed-maturity securities:

Gross realized gains 1 1 5 2

Gross realized losses — ( 1 )

Change in allowance for credit losses, net ( 2 ) ( 9 )

Write-down of impaired securities with intent to sell — — — ( 4 )

Subtotal ( 2 ) ( 10 )

Other 3 6 29 ( 11 )

Total $ ( 67 ) $ 612

The fair value of our equity portfolio was $ 11.570 billion and $ 10.989 billion at September 30, 2024, and December 31, 2023, respectively.

(Nasdaq:AAPL) and Microsoft Corporation (Nasdaq:MSFT), equity holdings, were our largest single investment holdings with a fair value of $ 885 million and $ 842 million, which was 7.9 % and 7.9 % of our publicly traded common equities portfolio and 3.2 % and 3.4 % of the total investment portfolio at September 30, 2024, and December 31, 2023, respectively.

The allowance for credit losses on fixed-maturity securities was $ 39 million and $ 18 million at September 30, 2024, and December 31, 2023, respectively.

There were 2,495 and 2,840 fixed-maturity securities in a total unrealized loss position of $ 404 million and $ 687 million at September 30, 2024, and December 31, 2023, respectively.

Of those totals, 5 and 20 fixed-maturity securities had fair values below 70 % of amortized cost at September 30, 2024, and December 31, 2023, respectively.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

The fair value of our equity portfolio was $ 11.118 billion and $ 11.185 billion at March 31, 2025, and December 31, 2024, respectively.

(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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 3 – Fair Value Measurements

5 unchanged sentences

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 September 30, 2024, and December 31, 2023.

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 September 30, 2024

At March 31, 2025

Fixed maturities, available for sale:

9 unchanged sentences

Separate accounts taxable fixed maturities — 895 — 895

Short-term investments 100 — — 100

Top Hat savings plan mutual funds and common

13 unchanged sentences

Separate accounts taxable fixed maturities — 876 — 876

Short-term investments 298 — — 298

Top Hat savings plan mutual funds and common

1 unchanged sentence

Total $ 11,447 $ 17,181 $ — $ 28,628

We also held Level 1 cash and cash equivalents of $ 1.752 billion and $ 907 million at September 30, 2024, and December 31, 2023, respectively.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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

2 unchanged sentences

(Dollars in millions) Book value Principal amount

issue September 30, December 31, September 30, December 31,

issue March 31, December 31, March 31, December 31,

2025 2024 2025 2024

5 unchanged sentences

(Dollars in millions) Level 1 Level 2 Level 3 Total

At September 30, 2024

At March 31, 2025

Note payable $ — $ 25 $ — $ 25

9 unchanged sentences

Total $ — $ 860 $ — $ 860

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30, 2024

At March 31, 2025

Life policy loans $ — $ — $ 42 $ 42

7 unchanged sentences

Total $ — $ 127 $ 561 $ 688

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Outstanding principal and interest for these life policy loans totaled $ 35 million and $ 33 million at September 30, 2024, and December 31, 2023, respectively.

Recorded reserves for the deferred annuities were $ 605 million and $ 656 million at September 30, 2024, and December 31, 2023, respectively.

Recorded reserves for the structured settlements were $ 118 million and $ 123 million at September 30, 2024, and December 31, 2023, respectively.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Gross loss and loss expense reserves, beginning of period $ 9,937 $ 8,975

17 unchanged sentences

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 $ 62 million and $ 72 million at September 30, 2024, and 2023, respectively, for certain life and health loss and loss expense reserves.

We experienced $ 71 million of favorable development on prior accident years, including $ 50 million of favorable development in commercial lines, less than $ 1 million of unfavorable development in personal lines and $ 5 million of unfavorable development in excess and surplus lines for the three months ended September 30, 2024.

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.

We experienced $ 211 million of favorable development on prior accident years, including $ 117 million of favorable development in commercial lines, $ 27 million of favorable development in personal lines and $ 5 million of unfavorable development in excess and surplus lines for the nine months ended September 30, 2024.

Within commercial lines, we recognized favorable reserve development of $ 76 million for the commercial property line, $ 56 million for the workers' compensation line and $ 10 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

This was partially offset by unfavorable reserve development of $ 27 million for the commercial casualty line.

Within personal lines, we recognized favorable reserve development of $ 19 million for the homeowner line.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

We experienced $ 53 million of favorable development on prior accident years, including $ 34 million of favorable development in commercial lines, $ 8 million of favorable development in personal lines and no net development in excess and surplus lines for the three months ended September 30, 2023.

Within commercial lines, we recognized favorable reserve development of $ 20 million for the workers' compensation line and $ 11 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

We experienced $ 213 million of favorable development on prior accident years, including $ 125 million of favorable development in commercial lines, $ 54 million of favorable development in personal lines and $ 14 million of favorable development in excess and surplus lines for the nine months ended September 30, 2023.

Within commercial lines, we recognized favorable reserve development of $ 46 million for the workers' compensation line and $ 36 million for both the commercial property and commercial casualty lines due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

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.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 5 – Life Policy and Investment Contract Reserves

6 unchanged sentences

The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly.

Certain assumptions, including the mortality, lapse and long-term interest rate reversion targets, were updated in the second quarter of 2024 as part of our annual assumption unlocking.

Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables.

3 unchanged sentences

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) September 30, 2024 December 31, 2023

(Dollars in millions) March 31, 2025 December 31, 2024

Life policy reserves:

9 unchanged sentences

Total life policy and investment contract reserves $ 2,968 $ 2,960

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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

(Dollars in millions) Three months ended September 30,

Term Whole life Term Whole life

Present value of expected net premiums:

Balance, beginning of period $ 1,620 $ 215 $ 1,664 $ 212

Beginning balance at original discount rate 1,701 225 1,712 219

Effect of changes in cash flow assumptions ( 1 ) ( 1 ) — ( 1 )

Effect of actual variances from expected experience ( 4 ) — ( 3 ) 2

Adjusted beginning of period balance 1,696 224 1,709 220

Issuances 34 9 33 7

Interest accrual 20 2 18 3

Net premiums collected ( 45 ) ( 8 ) ( 45 ) ( 7 )

Ending balance at original discount rate 1,705 227 1,715 223

Effect of changes in discount rate assumptions 3 — ( 133 ) ( 17 )

Balance, end of period 1,708 227 1,582 206

Present value of expected future policy benefits:

Balance, beginning of period 2,634 619 2,662 633

Beginning balance at original discount rate 2,772 636 2,737 615

Effect of changes in cash flow assumptions ( 1 ) ( 2 ) — —

Effect of actual variances from expected experience ( 7 ) ( 1 ) ( 6 ) 2

Adjusted beginning of period balance 2,764 633 2,731 617

Issuances 34 8 33 7

Interest accrual 32 8 30 8

Benefits paid ( 48 ) ( 8 ) ( 39 ) ( 9 )

Ending balance at original discount rate 2,782 641 2,755 623

Effect of changes in discount rate assumptions 12 27 ( 234 ) ( 37 )

Balance, end of period 2,794 668 2,521 586

Net liability for future policy benefits:

Present value of expected future policy benefits less expected net premiums 1,086 441 939 380

Impact of flooring at cohort level 22 — 17 1

Net life policy reserves 1,108 441 956 381

Less reinsurance recoverable at original discount rate ( 92 ) ( 25 ) ( 99 ) ( 25 )

Less effect of discount rate assumption changes on reinsurance recoverable ( 10 ) ( 5 ) ( 7 ) ( 3 )

Net life policy reserves, after reinsurance recoverable $ 1,006 $ 411 $ 850 $ 353

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

(Dollars in millions) Nine months ended September 30,

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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,

Term Whole life Term Whole life

31 unchanged sentences

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 change s of $ 3 million and $ 5 million at September 30, 2024 and 2023, respectively.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30,

(Dollars in millions) At March 31,

Undiscounted Discounted Undiscounted Discounted

4 unchanged sentences

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Gross premiums

6 unchanged sentences

Total $ 19 $ 19

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as immaterial for the nine months ended September 30, 2024, and 2023 .

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as 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 September 30,

Interest accretion rate 5.20 % 5.26 %

3 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life

(Dollars in millions) Three months ended March 31,

Deferred annuity Universal life Deferred annuity Universal life

Balance, beginning of period $ 595 $ 456 $ 656 $ 457

11 unchanged sentences

(Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total

At September 30, 2024

At March 31, 2025

Deferred annuity

7 unchanged sentences

Total $ 326 $ 55 $ 70 $ 6 $ 457

At September 30, 2023

At March 31, 2024

Deferred annuity

7 unchanged sentences

Total $ 329 $ 65 $ 58 $ 4 $ 456

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Balance, beginning of period $ 130 $ 128

14 unchanged sentences

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

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Balance, beginning of period $ 952 $ 925

4 unchanged sentences

Cash surrender value $ 949 $ 925

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 6 – Deferred Policy Acquisition Costs

4 unchanged sentences

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

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Property casualty:

12 unchanged sentences

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

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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

(Dollars in millions)

Three months ended September 30, 2024 Term Whole life Deferred annuity Universal life Total

Balance, beginning of period $ 241 $ 50 $ 8 $ 52 $ 351

Capitalized deferred policy acquisition costs 9 1 — 1 11

Amortized deferred policy acquisition costs ( 7 ) — — ( 1 ) ( 8 )

Balance, end of period $ 243 $ 51 $ 8 $ 52 $ 354

Three months ended September 30, 2023

Balance, beginning of period $ 233 $ 45 $ 8 $ 52 $ 338

Capitalized deferred policy acquisition costs 8 2 — — 10

Amortized deferred policy acquisition costs ( 7 ) — — — ( 7 )

Balance, end of period $ 234 $ 47 $ 8 $ 52 $ 341

(Dollars in millions)

Nine months ended September 30, 2024 Term Whole life Deferred annuity Universal life Total

Three months ended March 31, 2025 Term Whole life Deferred annuity Universal life Total

Balance, beginning of period $ 245 $ 52 $ 8 $ 51 $ 356

2 unchanged sentences

Balance, end of period $ 248 $ 53 $ 8 $ 51 $ 360

Nine months ended September 30, 2023

Three months ended March 31, 2024

Balance, beginning of period $ 236 $ 48 $ 8 $ 52 $ 344

2 unchanged sentences

Balance, end of period $ 238 $ 49 $ 8 $ 52 $ 347

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30,

Before tax Income tax Net Before tax Income tax Net

AOCI, beginning of period $ ( 700 ) $ ( 151 ) $ ( 549 ) $ ( 838 ) $ ( 179 ) $ ( 659 )

OCI before investment gains and losses, net, recognized in net income 411 88 323 ( 369 ) ( 79 ) ( 290 )

Investment gains and losses, net, recognized in net income 86 18 68 — — —

OCI 497 106 391 ( 369 ) ( 79 ) ( 290 )

AOCI, end of period $ ( 203 ) $ ( 45 ) $ ( 158 ) $ ( 1,207 ) $ ( 258 ) $ ( 949 )

Pension obligations:

AOCI, beginning of period $ 31 $ 8 $ 23 $ 29 $ 7 $ 22

OCI excluding amortization recognized in net income — — — — — —

Amortization recognized in net income — — — — — —

OCI — — — — — —

AOCI, end of period $ 31 $ 8 $ 23 $ 29 $ 7 $ 22

Life policy reserves, reinsurance recoverable and other:

AOCI, beginning of period $ 71 $ 15 $ 56 $ 13 $ 2 $ 11

OCI before investment gains and losses, net, recognized in net income ( 91 ) ( 20 ) ( 71 ) 111 22 89

Investment gains and losses, net, recognized in net income — — — — — —

OCI ( 91 ) ( 20 ) ( 71 ) 111 22 89

AOCI, end of period $ ( 20 ) $ ( 5 ) $ ( 15 ) $ 124 $ 24 $ 100

Summary of AOCI:

AOCI, beginning of period $ ( 598 ) $ ( 128 ) $ ( 470 ) $ ( 796 ) $ ( 170 ) $ ( 626 )

Investments OCI 497 106 391 ( 369 ) ( 79 ) ( 290 )

Pension obligations OCI — — — — — —

Life policy reserves, reinsurance recoverable and other OCI ( 91 ) ( 20 ) ( 71 ) 111 22 89

Total OCI 406 86 320 ( 258 ) ( 57 ) ( 201 )

AOCI, end of period $ ( 192 ) $ ( 42 ) $ ( 150 ) $ ( 1,054 ) $ ( 227 ) $ ( 827 )

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

(Dollars in millions) Nine months ended September 30,

(Dollars in millions) Three months ended March 31,

Before tax Income tax Net Before tax Income tax Net

25 unchanged sentences

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.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 8 – Reinsurance

3 unchanged sentences

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Direct written premiums $ 2,388 $ 2,125

10 unchanged sentences

Incurred loss and loss expenses $ 1,887 $ 1,270

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Direct earned premiums $ 99 $ 99

5 unchanged sentences

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 $ 16 million at September 30, 2024, and December 31, 2023, respectively.

The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at September 30, 2024, and December 31, 2023.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Tax at statutory rate:

10 unchanged sentences

As a result, we have no valuation allowance for our U.S.

domestic operations or Cincinnati Global at both September 30, 2024, and December 31, 2023.

During the third quarter of 2024, we were notified by the Internal Revenue Service (IRS) that the audit of tax years ended December 31, 2021 and 2020, has concluded.

Despite this, the statute of limitations remains open through September of 2025.

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 $ 85 million and $ 100 million in the United Kingdom at September 30, 2024, and December 31, 2023, respectively.

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.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 10 – Net Income (Loss) Per Common Share

2 unchanged sentences

The table shows calculations for basic and diluted earnings per share:

(In millions, except per share data) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(In millions, except per share data) Three months ended March 31,

Net income (loss)—basic and diluted

12 unchanged sentences

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 and nine months ended September 30, 2024 and 2023.

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 September 30, 2023 because their exercise would have anti-dilutive effects.

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 September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Service cost $ 1 $ 1

2 unchanged sentences

Expected return on plan assets ( 6 ) ( 5 )

Amortization of actuarial loss (gain) and prior

service cost — — 1 ( 2 )

Other — — — ( 5 )

Amortization of actuarial gain and prior service cost ( 1 ) —

Total non-service benefit ( 3 ) ( 2 )

2 unchanged sentences

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.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

We made matching contributions totaling $ 7 million and $ 6 million to our 401(k) and Top Hat savings plans during the third quarter of 2024 and 2023, respectively, and contributions of $ 23 million and $ 20 million for the first nine months of 2024 and 2023, respectively.

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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 or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it.

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.

12 unchanged sentences

We operate primarily in two industries, property casualty insurance and life insurance.

Our CODM regularly reviews our reporting segments to make decisions about allocating resources and assessing performance.

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:

6 unchanged sentences

We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global.

See our 2023 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 180, for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments.

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

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 inco me taxes, including its components, an d identifiable assets for each of the five segments.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Segment information is summarized in the following table:

(Dollars in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

(Dollars in millions) Three months ended March 31,

Commercial lines insurance

Commercial casualty $ 381 $ 365 $ 1,118 $ 1,115

Commercial property 361 321 1,045 933

Commercial auto 231 216 679 644

Workers' compensation 61 66 182 212

Other commercial 103 94 302 280

Commercial lines insurance premiums $ 1,179 $ 1,082

Fee revenues 2 1

Total commercial lines insurance 1,138 1,063 3,329 3,187

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 auto 242 185 674 524

Homeowner 352 271 981 755

Other personal 84 71 242 205

Personal lines insurance premiums 698 588

Fee revenues 1 1

Total personal lines insurance 680 528 1,901 1,487

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 157 136 449 396

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 81 79 244 241

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

Investment income, net of expenses 280 245

1 unchanged sentence

Total investment revenue 213 857

Premiums 245 233 614 599

Other 3 3 10 8

Total other revenues 248 236 624 607

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

Income (loss) before income taxes:

Insurance underwriting results

Commercial lines insurance $ 81 $ 52 $ 130 $ 83

Personal lines insurance ( 69 ) 1 ( 74 ) ( 92 )

Excess and surplus lines insurance 8 14 28 38

Life insurance 10 17 42 38

Investments 984 ( 262 ) 2,158 648

Other 26 30 95 71

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Identifiable assets by segment are summarized in the following table:

(Dollars in millions) March 31, December 31,

Identifiable assets:

September 30,

2024 December 31,

Property casualty insurance $ 6,481 $ 5,927

3 unchanged sentences

Total $ 37,276 $ 36,501

Cincinnati Financial Corporation Third-Quarter 2024 10-Q

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements