18 unchanged sentences
Factors that could cause or contribute to such differences include, but are not limited to:
−Removed: • Effects of any future pandemic, or the resurgence of the COVID-19 pandemic, that could affect results for reasons such as:
+Added: • 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
3 unchanged sentences
• Inability of our workforce, agencies or vendors to perform necessary business functions
−Removed: • Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns (whether as a result of global climate change or otherwise), environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes
+Added: • 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
2 unchanged sentences
• Interest rate fluctuations or other factors that could significantly affect:
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
• Our ability to generate growth in investment income
1 unchanged sentence
• Our traditional life policy reserves
−Removed: • Domestic and global events, such as Russia’s invasion of Ukraine, war in the Middle East 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:
+Added: • 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
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
• 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
−Removed: • Our inability to manage Cincinnati Global or other subsidiaries to produce related business opportunities and growth prospects for our ongoing operations
+Added: • 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
2 unchanged sentences
disrupt our relationships with agents, policyholders and others;
−Removed: cause reputational damage, mitigation expenses and data loss and expose us to liability under federal and state laws
+Added: 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
1 unchanged sentence
• 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
−Removed: • Intense competition, and the impact of innovation, technological change 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
−Removed: • Changing consumer insurance-buying habits and consolidation of independent insurance agencies could alter our competitive advantages
+Added: • 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
+Added: • Changing consumer insurance-buying habits
+Added: • 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
6 unchanged sentences
• 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
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
• 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:
6 unchanged sentences
• Increase our other expenses
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
• Limit our ability to set fair, adequate and reasonable rates
4 unchanged sentences
• 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
−Removed: • Our inability, or the inability of our independent agents, to attract and retain personnel in a competitive labor market, impacting the customer experience and altering our competitive advantages
+Added: • 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
3 unchanged sentences
The ultimate changes and eventual effects, if any, of these initiatives are uncertain.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
CORPORATE FINANCIAL HIGHLIGHTS
Net Income and Comprehensive Income Data
−Removed: (Dollars in millions, except per share data) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions, except per share data) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 2,344 $ 2,071 13
Investment income, net of expenses (pretax) 280 245 14
−Removed: Investment gains and losses, net (pretax) 758 (456) nm 1,507 84 nm
+Added: Investment gains and losses, net (pretax) (67) 612 nm
Total revenues 2,566 2,935 (13)
Net income (loss) (90) 755 nm
−Removed: Comprehensive income 1,140 (300) nm 2,172 447 386
+Added: Comprehensive income (loss) (52) 748 nm
Net income (loss) per share—diluted (0.57) 4.78 nm
1 unchanged sentence
Diluted weighted average shares outstanding 156.4 157.9 (1)
−Removed: Total revenues increased $1.509 billion for the third quarter of 2024, compared with the third quarter of 2023, including higher earned premiums, investment income and net investment gains.
−Removed: For the first nine months of 2024, compared with the same period of 2023, total revenues increased $2.142 billion, including higher earned premiums, investment income and net investment gains.
+Added: 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.
2 unchanged sentences
The change in fair value of securities is also generally independent of the insurance underwriting process.
−Removed: Net income for the third quarter of 2024, compared with the third quarter of 2023, increased $919 million, including increases of $956 million in after-tax net investment gains and losses and $26 million in after-tax investment income, partially offset by a $40 million decrease in after-tax property casualty underwriting income.
−Removed: Catastrophe losses for the third quarter of 2024, mostly weather related, were $86 million higher after taxes and unfavorably affected both net income and property casualty underwriting income.
+Added: 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.
+Added: 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.
−Removed: For the first nine months of 2024, net income increased $1.227 billion, compared with the first nine months of 2023,
−Removed: including increases of $1.120 billion in after-tax investment gains and losses, $62 million in after-tax property casualty underwriting income and $71 million in after-tax investment income.
−Removed: Catastrophe losses for the first nine months of 2024, mostly weather related, matched the same period in 2023.
−Removed: Life insurance segment results increased by $4 million on a pretax basis.
Performance by segment is discussed below in Financial Results.
4 unchanged sentences
In January 2025, the board of directors increased the regular quarterly dividend to 87 cents per share, setting the stage for our 65 th consecutive year of increasing cash dividends.
−Removed: During the first nine months of 2024, cash dividends declared by the company increased 8% compared with the same period of 2023.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Balance Sheet Data and Performance Measures
−Removed: (Dollars in millions, except share data) At September 30, At December 31,
+Added: (Dollars in millions, except share data) At March 31, At December 31,
Total investments $ 28,481 $ 28,378
5 unchanged sentences
Debt-to-total-capital ratio 5.6 % 5.5 %
−Removed: Total assets at September 30, 2024, increased 13% compared with year-end 2023, and included an 11% increase in total investments that reflected net purchases and higher fair values for many securities in our equity portfolio.
−Removed: Shareholders' equity increased 14% and book value per share increased 15% during the first nine months of 2024.
−Removed: Our debt-to-total-capital ratio (capital is the sum of debt plus shareholders' equity) decreased compared with year-end 2023.
+Added: 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.
+Added: Shareholders' equity decreased 2% and book value per share decreased 1% during the first three months of 2025.
+Added: 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.
−Removed: As shown in the tables below, that ratio was 17.8% for the first nine months of 2024, better than 4.4% for the same period in 2023, primarily due to a higher amount in overall net gains from our investment portfolio.
−Removed: Book value per share increased $11.26 during the first nine months of 2024 and contributed 14.6 percentage points to the value creation ratio, while dividends declared at $2.43 per share contributed 3.2 points.
+Added: 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.
+Added: The decrease was primarily due to a reduction in overall net gains from our investment portfolio and an underwriting loss from our insurance operations.
+Added: 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.
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three months ended March 31,
Value creation ratio major contributors:
4 unchanged sentences
Value creation ratio (0.5) % 5.9 %
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: (Dollars are per share) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: (Dollars are per share) Three months ended March 31,
Value creation ratio:
14 unchanged sentences
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.
−Removed: At September 30, 2024, we actively marketed through 2,196 agencies located in 46 states.
+Added: 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.
2 unchanged sentences
• 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.
−Removed: For the first nine months of 2024, our consolidated property casualty net written premium year-over-year growth was 14%, comparing favorably with the industry's 10% growth rate reported by A.M.
−Removed: Best for the first six months of 2024.
+Added: For the first three months of 2025, our consolidated property casualty net written premium year-over-year growth was 11%.
+Added: As of February 2025, A.M.
+Added: 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.
1 unchanged sentence
• 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%.
−Removed: For the first nine months of 2024, our GAAP combined ratio was 96.5%, including 11.2 percentage points of current accident year catastrophe losses partially offset by 3.3 percentage points of favorable loss reserve development on prior accident years.
−Removed: Our statutory combined ratio was 95.7% for the first nine months of 2024, comparing favorably with the industry's 97.7% reported by A.M.
−Removed: Best for the first six months of 2024.
+Added: 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.
+Added: Our statutory combined ratio was 112.3% for the first three months of 2025.
+Added: As of February 2025, A.M.
+Added: 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.
−Removed: For the first nine months of 2024, pretax investment income was $745 million, up 14% compared with the same period in 2023.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Financial Strength
4 unchanged sentences
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.
−Removed: At September 30, 2024, we held $5.419 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $4.639 billion, or 85.6%, was invested in common stocks, and $645 million, or 11.9%, was cash or cash equivalents.
−Removed: Our debt-to-total-capital ratio was 5.6% at September 30, 2024.
−Removed: Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.0-to-1 for the 12 months ended September 30, 2024, matching year-end 2023.
+Added: 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.
+Added: Our debt-to-total-capital ratio was 5.6% at March 31, 2025.
+Added: 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.
4 unchanged sentences
please see each rating agency's website for its most recent report on our ratings.
−Removed: At October 23, 2024, our insurance subsidiaries continued to be highly rated.
+Added: At April 25, 2025, our insurance subsidiaries continued to be highly rated.
Insurer Financial Strength Ratings
10 unchanged sentences
A+ Strong 5 of 21 A+ Strong 5 of 21 - - - Stable
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
CONSOLIDATED PROPERTY CASUALTY INSURANCE HIGHLIGHTS
1 unchanged sentence
SM (Cincinnati Global).
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 2,264 $ 1,992 14
8 unchanged sentences
Underwriting expenses 679 594 14
−Removed: Underwriting profit $ 62 $ 112 (45) $ 228 $ 149 53
+Added: Underwriting profit (loss) $ (298) $ 131 nm
Ratios as a percent of earned premiums:
9 unchanged sentences
Combined ratio before catastrophe losses and prior years reserve development 90.5 % 91.1 % (0.6)
−Removed: Our consolidated property casualty insurance operations generated an underwriting profit of $62 million for the third quarter and $228 million for the first nine months of 2024.
−Removed: The third-quarter 2024 underwriting profit decrease of $50 million, compared with third-quarter 2023, included an unfavorable increase of $109 million in losses from catastrophes, mostly caused by severe weather.
−Removed: The third-quarter 2024 change in underwriting profitability also included higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums and higher amounts of favorable reserve development on prior accident years.
−Removed: The nine-month 2024 underwriting profit increase of $79 million, compared with the first nine months of 2023, included losses from catastrophes that matched.
−Removed: In addition, the nine-month 2024 period experienced higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums and a lower amount of favorable reserve development on prior accident years before catastrophe losses.
−Removed: Underwriting results for the third quarter and first nine months of 2024 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.
−Removed: Elevated inflation was a driver of higher losses and loss expenses in both 2024 and 2023 as costs have increased significantly to repair damaged autos or other property that we insure.
+Added: Our consolidated property casualty insurance operations generated an underwriting loss of $298 million for the first quarter of 2025.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: 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.
2 unchanged sentences
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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: For all property casualty lines of business in aggregate, net loss and loss expense reserves at September 30, 2024, were $963 million, or 11%, higher than at year-end 2023, including an increase of $917 million for the incurred but not reported (IBNR) portion.
+Added: 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.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
We measure and analyze property casualty underwriting results primarily by the combined ratio and its component ratios.
2 unchanged sentences
A combined ratio above 100% indicates that an insurance company's losses and expenses exceeded premiums.
−Removed: Our consolidated property casualty combined ratio for the third quarter of 2024 increased by 3.0 percentage points, compared with the same period of 2023, including an increase of 3.9 points from catastrophe losses and loss expenses.
−Removed: For the first nine months of 2024, compared with the 2023 nine-month period, our combined ratio improved by 1.0 percentage points, including a decrease of 1.2 points from catastrophe losses and loss expenses.
+Added: 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.
1 unchanged sentence
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.
−Removed: Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 3.3 percentage points in the first nine months of 2024, compared with 3.8 percentage points in the same period of 2023.
+Added: 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.
−Removed: The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first nine months of 2024.
−Removed: That 58.6% ratio was 1.1 percentage points lower, compared with the 59.7% accident year 2023 ratio measured as of September 30, 2023, including a decrease of 1.2 points in the ratio for large losses of $2 million or more per claim, discussed below.
−Removed: The ratio improvement of 1.1 percentage points included an increase of 1.1 points for the IBNR portion and a decrease of 2.2 points for the case incurred portion.
−Removed: The underwriting expense ratio decreased for the third quarter and increased for the first nine months of 2024, compared with the same periods a year ago.
−Removed: The third-quarter 2024 decrease was largely due to a decrease in profit-sharing commissions for agencies.
−Removed: The nine-month 2024 increase was largely due to increases in profit-sharing commissions for agencies and employee-related expenses.
−Removed: The ratios also included ongoing expense management efforts and higher earned premiums.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first three months of 2025.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: The underwriting expense ratio increased for the first three months of 2025, compared with the same period a year ago.
+Added: The increase included an unfavorable 0.7 points for the effect of reinstatement premiums.
+Added: The ratio for both periods also included ongoing expense management efforts and higher earned premiums.
Consolidated Property Casualty Insurance Premiums
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Agency renewal written premiums $ 1,912 $ 1,683 14
2 unchanged sentences
Net written premiums 2,495 2,248 11
−Removed: Unearned premium change (76) — nm (716) (465) (54)
+Added: Unearned premium change (231) (256) 10
Earned premiums $ 2,264 $ 1,992 14
1 unchanged sentence
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.
−Removed: Consolidated property casualty net written premiums for the third quarter and nine months ended September 30, 2024, grew $336 million and $874 million compared with the same periods of 2023.
+Added: 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.
−Removed: Consolidated property casualty agency new business written premiums increased by $93 million and $292 million for the third quarter and first nine months of 2024, compared with the same periods of 2023.
−Removed: New agency appointments during 2024 and 2023 produced a $82 million increase in standard lines new business for the first nine months of 2024 compared with the same period of 2023.
+Added: 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.
+Added: 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.
−Removed: We believe these 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.
−Removed: Net written premiums for Cincinnati Re, included in other written premiums, increased by $4 million in the third quarter and $6 million for the nine months ended September 30, 2024, compared with the same periods of 2023, to $89 million and $498 million, respectively.
+Added: We believe these
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: Net written premiums for Cincinnati Global increased by $8 million in the third quarter and $11 million for the nine months ended September 30, 2024, to $77 million and $226 million, respectively, compared with the same periods of 2023.
+Added: 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.
−Removed: An increase in ceded premiums reduced net written premiums by $16 million and $32 million for the third quarter and first nine months of 2024, compared with the same period of 2023.
+Added: 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.
+Added: 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.
−Removed: Losses from catastrophes contributed 13.0 and 10.1 percentage points to the combined ratio in the third quarter and first nine months of 2024, compared with 9.1 and 11.3 percentage points in the same period of 2023.
−Removed: Effective June 1, 2024, we restructured our reinsurance program for Cincinnati Re only, providing retrocession coverages with various triggers, exclusions and unique features.
−Removed: That program included property catastrophe excess of loss coverage with a total available aggregate limit of $60 million in excess of $80 million per occurrence.
−Removed: Coverage for Cincinnati Re only with a total available aggregate limit of $20 million in excess of $80 million per occurrence expired during the second quarter of 2024.
−Removed: That expiration also included the shared coverage for Cincinnati Re and the direct business applying to catastrophe losses in excess of $600 million.
−Removed: Ceded premiums for the one-year renewal period of coverage from the treaty effective June 1, 2024, are estimated to be approximately $16 million.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: 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.
+Added: Net losses from catastrophes for the first quarter of 2025 included recoveries from reinsurers that participate in our primary property catastrophe reinsurance treaty.
+Added: The recovery related to the California wildfires based on loss estimates at the end of the quarter was $429 million.
+Added: During the first quarter of 2025, we reinstated the applicable layers of our primary property catastrophe reinsurance treaty to provide coverage for catastrophic events.
+Added: As a result of the reinstatement, the treaty provides the same coverage that was effective on January 1, 2025.
+Added: The reinsurance program for Cincinnati Re only effective June 1, 2024, provides retrocession coverages with various triggers, exclusions and unique features.
+Added: The program includes property catastrophe excess of loss coverage in excess of $80 million per occurrence.
+Added: 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.
+Added: During the first three months of 2025, recoveries of $38 million were estimated related to the California wildfires.
+Added: As of March 31, 2025, the remaining coverage provides a total available limit of $41 million per occurrence in excess of $80 million.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
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.
1 unchanged sentence
Consolidated Property Casualty Insurance Catastrophe Losses and Loss Expenses Incurred
−Removed: (Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
−Removed: Dates Region lines lines lines Other Total lines lines lines Other Total
−Removed: 12-17 Midwest, South $ (4) $ 4 $ — $ — $ — $ 30 $ 32 $ — $ — $ 62
+Added: (Dollars in millions, net of reinsurance) Three months ended March 31,
+Added: Dates Region lines lines lines Other Total
+Added: 7-28 West $ — $ 325 $ — $ 124 $ 449
14-17 Midwest, Northeast, South 42 75 1 — 118
−Removed: May 6-10 Midwest, South — 2 1 — 3 19 30 1 — 50
−Removed: May 25-26 Midwest, South 2 1 1 — 4 38 29 2 — 69
−Removed: 13-18 Midwest, Northeast 18 11 — — 29 18 11 — — 29
−Removed: 25 - 28 Midwest, South (Helene) 35 117 — 26 178 35 117 — 26 178
All other 2025 catastrophes 14 23 1 3 41
2 unchanged sentences
8-10 Midwest, Northeast, South $ 18 $ 9 $ — $ — $ 27
−Removed: 23-28 Midwest, Northeast, South (2) (3) — — (5) 20 24 — — 44
−Removed: 1 Midwest, Northeast, South (1) — — — (1) 62 33 — — 95
−Removed: 3-7 Midwest, Northeast, South 2 2 — — 4 12 32 — — 44
−Removed: May 2-9 Midwest, South (1) (1) — — (2) 23 7 — — 30
−Removed: 21-27 Midwest, Northeast, South, West 14 4 — — 18 23 17 — — 40
−Removed: 4 Midwest, Northeast, South, West 8 11 — — 19 10 16 — — 26
+Added: 12-17 Midwest, South 32 22 — — 54
All other 2024 catastrophes 25 42 1 — 68
1 unchanged sentence
Calendar year incurred total $ 67 $ 52 $ — $ (2) $ 117
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
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
−Removed: (Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
−Removed: Current accident year losses greater than $5 million $ 18 $ 24 (25) $ 49 $ 103 (52)
+Added: (Dollars in millions, net of reinsurance) Three months ended March 31,
+Added: 2025 2024 % Change
+Added: Current accident year losses greater than $5 million $ 26 $ — nm
Current accident year losses $2 million - $5 million 20 22 (9)
14 unchanged sentences
Total loss ratio 71.8 % 54.4 % 17.4
−Removed: 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 inflationary trends in loss costs.
+Added: 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
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
−Removed: The third-quarter 2024 property casualty total large losses incurred of $88 million, net of reinsurance, was lower than the $95 million quarterly average during full-year 2023 and the $108 million experienced for the third quarter of 2023.
−Removed: The ratio for these large losses was 1.5 percentage points lower compared with last year's third quarter.
−Removed: The third-quarter 2024 amount of total large losses incurred helped contribute to the decrease in the nine-month 2024 total large loss ratio, compared with 2023, in addition to a first-half 2024 ratio that was 1.4 points lower than the first half of 2023.
−Removed: We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.
+Added: 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.
+Added: The ratio for these large losses was 2.3 percentage points higher compared with last year's first quarter.
+Added: 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.
6 unchanged sentences
• Investments
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
COMMERCIAL LINES INSURANCE RESULTS
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 1,179 $ 1,082 9
21 unchanged sentences
Performance highlights for the commercial lines segment include:
−Removed: • Premiums – Earned premiums and net written premiums for the commercial lines segment grew during the third quarter and first nine months of 2024, compared with the same periods a year ago, due to agency renewal written premium growth that continued to include higher average pricing as well as growth in agency new business written premiums.
+Added: • 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.
1 unchanged sentence
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.
−Removed: Agency renewal written premiums increased 8% for the third quarter and 5% for the first nine months of 2024, compared with the same periods of 2023, including price increases.
−Removed: During the third quarter of 2024, our overall standard commercial lines policies averaged estimated renewal price increases at percentages in the high-single-digit range.
+Added: Agency renewal written premiums increased 7% for the first three months of 2025, compared with the same period of 2024, including price increases.
+Added: 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.
1 unchanged sentence
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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: 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 the period being measured.
+Added: 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
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
−Removed: For commercial lines policies that did expire and were then renewed during the third quarter of 2024, we estimate that our average percentage price increases were in the high-single-digit range for our commercial casualty, commercial property and commercial auto lines of business.
+Added: 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.
−Removed: Our commercial lines segment's increase in agency renewal written premiums for the first nine months of 2024 also included changes in the level of insured exposures.
+Added: 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.
1 unchanged sentence
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.
−Removed: Audits completed during the first nine months of 2024 contributed $81 million to net written premiums, compared with $105 million for the same period of 2023.
−Removed: New business written premiums for commercial lines increased $39 million and $131 million during the third quarter and first nine months of 2024, compared with the same periods of 2023, as we continued to carefully underwrite each policy in a highly competitive market.
+Added: 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.
+Added: 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.
1 unchanged sentence
Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program.
−Removed: For our commercial lines insurance segment, an increase in ceded premiums reduced net written premiums by $5 million and $11 million for the third quarter and first nine months of 2024, compared with the same periods of 2023.
+Added: 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
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Agency renewal written premiums $ 1,152 $ 1,076 7
2 unchanged sentences
Net written premiums 1,325 1,223 8
−Removed: Unearned premium change (1) 33 nm (221) (92) (140)
+Added: Unearned premium change (146) (141) (4)
Earned premiums $ 1,179 $ 1,082 9
−Removed: • Combined ratio – The third-quarter 2024 commercial lines combined ratio improved by 2.2 percentage points, compared with the third quarter of 2023, including a decrease of 1.3 points in losses from catastrophes.
−Removed: The third-quarter combined ratio increased by 0.2 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.9 points for the IBNR portion and a decrease of 2.7 points for the case incurred portion.
−Removed: For the first nine months of 2024, the combined ratio improved by 1.3 percentage points, compared with the same period a year ago, including a decrease of 2.5 points in losses from catastrophes.
−Removed: The nine-month 2024 combined ratio also included a decrease of 0.3 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.4 points in the IBNR portion and a decrease of 2.7 points for the case incurred portion.
−Removed: Underwriting results also included higher third-quarter 2024 and lower nine-month 2024 levels of favorable reserve development on prior accident years, as discussed below.
−Removed: The current accident year ratios were measured as of September 30 of the respective years and included a decrease of 1.5 percentage points for the first nine months of 2024 in the ratio for large losses of $2 million or more per claim, discussed below.
+Added: • 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.
+Added: 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.
+Added: Underwriting results also included favorable reserve development on prior accident years, as discussed below.
+Added: 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.
−Removed: Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged business property or autos that we insure, in addition to
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: higher losses for liability coverages for some of our lines of business.
+Added: 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.
−Removed: Catastrophe losses and loss expenses accounted for 5.4 and 6.9 percentage points of the combined ratio for the third quarter and first nine months of 2024, compared with 6.7 and 9.4 percentage points for the same periods a year ago.
+Added: 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.
−Removed: The net effect of reserve development on prior accident years during the third quarter and first nine months of 2024 was favorable for commercial lines overall by $50 million and $117 million, compared with $34 million and $125 million for the same periods in 2023.
−Removed: For the first nine months of 2024, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development.
−Removed: The net favorable reserve development recognized during the first nine months of 2024 for our commercial lines insurance segment was mainly for accident years 2023 and 2022 and was primarily due to lower-than-anticipated loss emergence on known claims.
−Removed: Our commercial casualty line of business included $27 million of unfavorable reserve development on prior accident years for the first nine months of 2024.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: The commercial lines underwriting expense ratio decreased for the third quarter and increased for the first nine months of 2024, compared with the same periods a year ago.
−Removed: The third-quarter 2024 decrease was largely due to a decrease in profit-sharing commissions for agencies.
−Removed: The nine-month 2024 increase was primarily due to an increase in profit-sharing commissions for agencies and employee-related expenses.
−Removed: The ratios also included ongoing expense management efforts and higher earned premiums.
+Added: The commercial lines underwriting expense ratio decreased for the first three months of 2025, compared with the same period a year ago.
+Added: The decrease was primarily due to premium growth outpacing growth in various expenses.
+Added: The ratio for both periods also included ongoing expense management efforts and higher earned premiums.
Commercial Lines Insurance Losses Incurred by Size
−Removed: (Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
−Removed: Current accident year losses greater than $5 million $ 11 $ 18 (39) $ 42 $ 76 (45)
+Added: (Dollars in millions, net of reinsurance) Three months ended March 31,
+Added: 2025 2024 % Change
+Added: Current accident year losses greater than $5 million $ 7 $ — nm
Current accident year losses $2 million - $5 million 15 11 36
14 unchanged sentences
Total loss ratio 49.7 % 56.5 % (6.8)
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
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.
−Removed: The third-quarter 2024 commercial lines total large losses incurred of $67 million, net of reinsurance, was lower than the quarterly average of $74 million during full-year 2023 and the $76 million of total large losses incurred for the third quarter of 2023.
−Removed: The decrease in commercial lines large losses for the first nine months of 2024 was primarily due to our commercial property line of business.
−Removed: The third-quarter 2024 ratio for commercial lines total large losses was 1.2 percentage points lower than last year's third-quarter ratio.
−Removed: The third-quarter 2024 amount of total large losses incurred helped contribute to the decrease in the nine-month 2024 total large loss ratio, compared with 2023, in addition to a first-half 2024 ratio that was 1.7 points lower than the first half of 2023.
−Removed: We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.
+Added: 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.
+Added: The increase in commercial lines large losses for the first three months of 2025 was primarily due to our commercial property line of business.
+Added: The first-quarter 2025 ratio for commercial lines total large losses was 3.5 percentage points higher than last year's first-quarter ratio.
+Added: 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.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
PERSONAL LINES INSURANCE RESULTS
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 698 $ 588 19
4 unchanged sentences
Current accident year catastrophe losses 423 73 479
−Removed: Prior accident years before catastrophe losses 5 (2) nm 5 (12) nm
+Added: Prior accident years before catastrophe losses (6) (12) 50
Prior accident years catastrophe losses (13) (21) 38
14 unchanged sentences
Performance highlights for the personal lines segment include:
−Removed: • Premiums – Personal lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2024, including increased agency new business and renewal written premiums that included higher average pricing.
−Removed: Cincinnati Private Client SM net written premiums included in the personal lines insurance segment results totaled approximately $479 million and $1.281 billion for the third quarter and first nine months of 2024, compared with $356 million and $938 million for the same periods of 2023.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: Private Client net written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $46 million in the third quarter and $131 million in the first nine months of 2024, compared with $34 million in the third quarter and $85 million in the first nine months of 2023.
+Added: • 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.
+Added: Cincinnati Private Client SM 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.
+Added: 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.
−Removed: Agency renewal written premiums increased 28% and 27% for the third quarter and first nine months of 2024, 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.
+Added: 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.
−Removed: 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 nine months of 2024.
−Removed: For our homeowner line of business, we estimate that premium rates for the first nine months of 2024 increased at average percentages in the high-single-digit range.
+Added: 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.
+Added: 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.
−Removed: Personal lines new business written premiums increased $43 million or 35% for the third quarter of 2024, compared with the same period of 2023, including approximately $18 million from Cincinnati Private Client policies and $25 million from middle-market policies.
−Removed: For the first nine months of 2024, compared with the same period of 2023, personal lines new business written premiums increased $143 million or 47%, including approximately $58 million from Cincinnati Private Client policies and $85 million from middle-market policies.
−Removed: We believe we maintained underwriting and pricing discipline across all personal lines markets as we expanded use of enhanced pricing precision tools.
+Added: 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.
+Added: We believe we maintained
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
−Removed: For our personal lines insurance segment, an increase in 2024 ceded premiums reduced net written premiums by approximately $10 million and $20 million for the third quarter and first nine months of 2024, compared with the same periods of 2023.
+Added: 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.
+Added: 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
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Agency renewal written premiums $ 634 $ 494 28
2 unchanged sentences
Net written premiums 672 595 13
−Removed: Unearned premium change (154) (119) (29) (349) (239) (46)
+Added: Unearned premium change 26 (7) nm
Earned premiums $ 698 $ 588 19
−Removed: • Combined ratio – Our personal lines combined ratio for the third quarter of 2024 increased by 10.4 percentage points, compared with third-quarter 2023, primarily due to an increase of 12.7 points in losses from catastrophes.
−Removed: The third-quarter 2024 combined ratio also included a decrease of 2.3 percentage points from current accident year loss and loss expenses before catastrophe losses, including an increase of 5.0 points for the IBNR portion and a decrease of 7.3 points for the case incurred portion.
−Removed: For the first nine months of 2024, the combined ratio improved by 2.3 percentage points, compared with the same period a year ago, including no change in the net ratio for losses from catastrophes.
−Removed: The nine-month 2024 combined ratio also included a decrease of 2.9 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.1 points in the IBNR portion and a decrease of 5.0 points for the case incurred portion.
−Removed: Those current accident year ratios were measured as of September 30 of the respective years and included a decrease of 1.6 percentage points for the first nine months of 2024 in the ratio for large losses of $2 million or more per claim, discussed below.
−Removed: When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends in inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company.
+Added: • 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.
+Added: 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.
+Added: The first-quarter 2025 current accident year ratio before catastrophe losses included an unfavorable 5.3 points for the effect of reinstatement premiums.
+Added: 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.
+Added: 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.
−Removed: Due to increased uncertainty
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.
−Removed: Catastrophe losses and loss expenses accounted for 26.6 and 19.2 percentage points of the combined ratio for the third quarter and first nine months of 2024, compared with 13.9 and 19.2 points for the same periods a year ago.
+Added: 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.
+Added: 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.
2 unchanged sentences
In addition, greater geographic diversification is expected to reduce the volatility of homeowner loss ratios attributable to weather-related catastrophe losses over time.
−Removed: The net effect of reserve development on prior accident years during the third quarter of 2024 was unfavorable by less than $1 million but favorable by $27 million for the first nine months of 2024 for personal lines overall, compared with $8 million and $54 million of favorable development for the same periods of 2023.
−Removed: Our homeowner line of business was the primary contributor to the personal lines net favorable reserve development for the first nine months of 2024.
+Added: 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.
+Added: 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.
−Removed: The personal lines underwriting expense ratio decreased for the third quarter and first nine months of 2024, compared with the same periods a year ago.
−Removed: The decreases were primarily due to premium growth outpacing growth in various expenses.
−Removed: The ratios also included ongoing expense management efforts.
+Added: The personal lines underwriting expense ratio increased for the first three months of 2025, compared with the same period a year ago.
+Added: The increase included an unfavorable 2.5 points for the effect of reinstatement premiums.
+Added: The ratio for both periods also included ongoing expense management efforts.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Personal Lines Insurance Losses Incurred by Size
−Removed: (Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
−Removed: Current accident year losses greater than $5 million $ 7 $ 6 17 $ 7 $ 27 (74)
+Added: (Dollars in millions, net of reinsurance) Three months ended March 31,
+Added: 2025 2024 % Change
+Added: Current accident year losses greater than $5 million $ 19 $ — nm
Current accident year losses $2 million - $5 million 5 11 (55)
−Removed: Large loss prior accident year reserve development (1) 2 nm 2 9 (78)
+Added: Large loss prior accident year reserve development 12 10 20
Total large losses incurred 36 21 71
14 unchanged sentences
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.
−Removed: In the third quarter of 2024, the personal lines total large loss ratio, net of reinsurance, was 3.3 percentage points lower than last year's third quarter.
−Removed: The decrease in personal lines total large losses incurred for the first nine months of 2024 occurred primarily for our homeowner line of business.
−Removed: The third-quarter 2024 amount of total large losses incurred helped contribute to the decrease in the
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: nine-month 2024 total large loss ratio, compared with 2023, in addition to a first-half 2024 ratio that was 1.6 points lower than the first half of 2023.
−Removed: We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
EXCESS AND SURPLUS LINES INSURANCE RESULTS
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 162 $ 139 17
3 unchanged sentences
Current accident year before catastrophe losses 106 92 15
−Removed: Current accident year catastrophe losses 2 (1) nm 6 3 100
−Removed: Prior accident years before catastrophe losses 5 1 400 5 (13) nm
+Added: Current accident year catastrophe losses 2 1 100
+Added: Prior accident years before catastrophe losses (8) (2) (300)
Prior accident years catastrophe losses (1) (1) 0
15 unchanged sentences
Performance highlights for the excess and surplus lines segment include:
−Removed: • Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2024, compared with the same periods a year ago, including increases in both agency renewal and new business written premiums.
−Removed: Renewal written premiums rose 22% for the third quarter and 16% for the nine months ended September 30, 2024, compared with the same periods of 2023, largely due to higher renewal pricing.
−Removed: For both 2024 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range.
+Added: • 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.
+Added: 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.
+Added: 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.
−Removed: New business written premiums produced by agencies increased by 26% for the third quarter and 14% for the first nine months of 2024 compared with the same periods of 2023, as we continued to carefully underwrite each policy in a highly competitive market.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Excess and Surplus Lines Insurance Premiums
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Agency renewal written premiums $ 126 $ 113 12
4 unchanged sentences
Earned premiums $ 162 $ 139 17
−Removed: • Combined ratio – The excess and surplus lines combined ratio increased by 4.8 percentage points for the third quarter and 3.4 points for the first nine months of 2024, compared with the same periods of 2023.
−Removed: The increases were largely due to unfavorable reserve development on prior accident year loss and loss expenses for the three and nine months ended September 30, 2024, compared with a smaller amount of unfavorable reserve development for third-quarter 2023 and favorable reserve development for the first nine months of 2023.
−Removed: Higher catastrophe losses for both 2024 periods also contributed to the combined ratio increases.
−Removed: The 64.2% third-quarter 2024 ratio for current accident year loss and loss expenses before catastrophe losses was 0.6 percentage points lower, compared with the 64.8% accident year 2023 ratio measured as of September 30, 2023, including an increase of 2.7 points for the IBNR portion and a decrease of 3.3 points for the case incurred portion.
−Removed: The 64.6% nine-month 2024 ratio for current accident year loss and loss expenses before catastrophe losses was 3.3 percentage points lower, compared with the 67.9% accident year 2023 ratio measured as of September 30, 2023, including a decrease of 5.3 points for the IBNR portion and an increase of 2.0 points for the case incurred portion.
−Removed: Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was unfavorable by 2.7% for the third quarter and 1.0% for the first nine months of 2024, compared with unfavorable 0.7% for third-quarter 2023 and favorable 3.5% for the first nine months of 2023.
+Added: • 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.
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: The excess and surplus lines underwriting expense ratio increased for the third quarter and first nine months of 2024, compared with the same periods a year ago.
−Removed: The increases were largely due to increases in profit-sharing commissions for agencies and employee-related expenses.
−Removed: The ratio for both periods also benefited from ongoing expense management efforts and premium growth.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: The excess and surplus lines underwriting expense ratio for the first three months of 2025 matched the same period a year ago.
+Added: The ratio for both periods benefited from ongoing expense management efforts and premium growth.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Excess and Surplus Lines Insurance Losses Incurred by Size
−Removed: (Dollars in millions, net of reinsurance) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
−Removed: Current accident year losses greater than $5 million $ — $ — nm $ — $ — nm
−Removed: Current accident year losses $2 million - $5 million 2 — nm 4 — nm
+Added: (Dollars in millions, net of reinsurance) Three months ended March 31,
+Added: 2025 2024 % Change
+Added: Current accident year losses greater than $5 million $ — $ — nm
+Added: Current accident year losses $2 million - $5 million — — nm
Large loss prior accident year reserve development — — nm
−Removed: Total large losses incurred 2 — nm 4 (1) nm
+Added: Total large losses incurred — — nm
Losses incurred but not reported 46 30 53
Other losses excluding catastrophe losses 24 37 (35)
−Removed: Catastrophe losses 2 (1) nm 6 2 200
+Added: Catastrophe losses — 1 (100)
Total losses incurred $ 70 $ 68 3
9 unchanged sentences
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.
−Removed: 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.
−Removed: In the third quarter of 2024, the excess and surplus lines total ratio for large losses, net of reinsurance, was 1.3 percentage points higher than last year's third quarter.
−Removed: The third-quarter 2024 amount of total large losses incurred contributed unfavorably to the increase in the nine-month 2024 total large loss ratio, compared with 2023, in addition to a first-half 2024 ratio that was 1.0 points higher than the first half of 2023.
−Removed: We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: 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.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
LIFE INSURANCE RESULTS
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Earned premiums $ 80 $ 79 1
7 unchanged sentences
Performance highlights for the life insurance segment include:
−Removed: • Revenues – Revenues increased for the nine months ended September 30, 2024, compared with the same period a year ago, driven by higher earned premiums from term life insurance, our largest life insurance product line.
−Removed: Net in-force life insurance policy face amounts increased 2% to $83.664 billion at September 30, 2024, from $82.361 billion at year-end 2023.
−Removed: Fixed annuity deposits received for the three and nine months ended September 30, 2024, were $10 million and $29 million, compared with $13 million and $38 million for the same periods of 2023.
−Removed: Fixed annuity deposits have a minimal impact to earned premiums because deposits received are initially recorded as liabilities.
+Added: • Revenues – Revenues increased for the three months ended March 31, 2025, compared with the same period a year ago.
+Added: 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.
+Added: 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.
+Added: 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.
1 unchanged sentence
Life Insurance Premiums
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Term life insurance $ 57 $ 57 0
4 unchanged sentences
We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results.
−Removed: A profit of $42 million for our life insurance segment in the first nine months of 2024, compared with a profit of $38 million for the same period of 2023, was primarily due to more favorable mortality experience.
+Added: 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.
−Removed: Total benefits decreased in the first nine months of 2024 primarily due to more favorable mortality experience.
−Removed: Underwriting expenses for the first nine months of 2024 increased compared with the same period a year ago, largely due to higher general insurance expense levels compared to the same period of 2023.
+Added: Total benefits increased in the first three months of 2025 primarily due to less favorable impacts from the unlocking of interest rate actuarial assumptions.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: On a basis that includes investment income and investment gains or losses from life-insurance-related invested assets, the life insurance subsidiary reported net income of $20 million and $63 million for the three and nine months ended September 30, 2024, compared with $25 million and $65 million for the three and nine months ended September 30, 2023.
−Removed: The life insurance subsidiary portfolio had net after-tax investment losses of less than $1 million and $7 million for the three and nine months ended September 30, 2024, compared with less than $1 million of net after-tax gains and $1 million of net after-tax investment losses for the three and nine months ended September 30, 2023.
+Added: On a basis that includes investment income and investment gains or losses from life-insurance-related
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: 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.
+Added: 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
2 unchanged sentences
Investment Income
−Removed: Pretax investment income grew 15% for the third quarter and 14% for the first nine months of 2024, compared with the same periods of 2023.
−Removed: Interest income increased by $33 million and $88 million for the three and nine months ended September 30, 2024, 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.
−Removed: Net purchases of fixed-maturity securities totaled $672 million for the third quarter and $1.443 billion for the first nine months of 2024.
−Removed: Sales of selected equity securities, discussed below, contributed to the relatively larger amount of third-quarter 2024 net purchases as proceeds from those sales were reinvested in fixed-maturity securities.
−Removed: Bond purchases in the third quarter helped increase the yield of the overall investment portfolio as we target what we believe to be optimal risk-adjusted after-tax yields.
−Removed: Dividend income decreased by $1 million in the third quarter and increased by $4 million for the first nine months of 2024.
−Removed: In addition to dividend rates generally increasing more slowly in recent quarters, net sales of equity securities totaled $959 million for the third quarter and $1.050 billion for the first nine months of 2024.
−Removed: Most of the equity security sales involved trimming or exiting positions for selected common stocks.
+Added: Pretax investment income grew 14% for the first three months of 2025, compared with the same period of 2024.
+Added: 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.
+Added: Dividend income decreased by $5 million for the three months ended March 31, 2025.
+Added: The decrease was primarily due to the unfavorable effect on dividend income from net sales of equity securities during the second half of 2024.
+Added: 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.
−Removed: Our investment approach remains the same as we focus on balancing near-term income generation with long-term book value growth potential.
Investments Results
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Total investment income, net of expenses $ 280 $ 245 14
Investment interest credited to contract holders (32) (31) (3)
−Removed: Investment gains and losses, net 758 (456) nm 1,507 84 nm
−Removed: Investments profit (loss), pretax $ 984 $ (262) nm $ 2,158 $ 648 233
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Investment gains and losses, net (67) 612 nm
+Added: 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.
3 unchanged sentences
(Dollars in millions) % Yield Principal redemptions
−Removed: At September 30, 2024
+Added: At March 31, 2025
Fixed-maturity pretax yield profile:
3 unchanged sentences
Average yield and total expected maturities from the remainder of 2025 through 2027 4.56 $ 3,132
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
The table below shows the average pretax yield-to-amortized cost for fixed-maturity securities acquired during the periods indicated.
−Removed: The average yield for total fixed-maturity securities acquired during the first nine months of 2024 was higher than the 4.60% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2023.
−Removed: Our fixed-maturity portfolio's average yield of 4.63% for the first nine months of 2024, from the investment income table below, was also higher than the 4.60% yield for the year-end 2023 fixed-maturities portfolio.
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: 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.
+Added: 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.
+Added: Three months ended March 31,
Average pretax yield-to-amortized cost on new fixed-maturities:
5 unchanged sentences
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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
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.
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Investment income:
1 unchanged sentence
Dividends 67 72 (7)
−Removed: Other 7 5 40 18 18 0
Less investment expenses 4 3 33
1 unchanged sentence
Less income taxes
−Removed: 44 37 19 125 106 18
Total investment income, after-tax $ 232 $ 204 14
10 unchanged sentences
Effective tax rate 18.3 17.9
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Total Investment Gains and Losses
3 unchanged sentences
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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
The table below summarizes total investment gains and losses, before taxes.
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: (Dollars in millions) Three months ended March 31,
Investment gains and losses:
4 unchanged sentences
Fixed maturities:
−Removed: Gross realized gains 1 1 5 2
Gross realized losses — (1)
Change in allowance for credit losses, net (2) (9)
−Removed: Write-down of impaired securities with intent to sell — — — (4)
Subtotal (2) (10)
−Removed: Other 3 6 29 (11)
Total investment gains and losses reported in net income (67) 612
1 unchanged sentence
Fixed maturities 67 (55)
+Added: Total unrealized investment gains and losses reported in OCI 67 (55)
Total $ — $ 557
−Removed: Of the 4,988 fixed-maturity securities in the portfolio, five securities were trading below 70% of amortized cost at September 30, 2024.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
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.
−Removed: Total revenues for the first nine months of 2024 for our Other operations increased, compared with the same period of 2023, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $5 million and $10 million, respectively.
−Removed: Cincinnati Re had $411 million of earned premiums for the first nine months of 2024 and generated an underwriting profit of $76 million.
−Removed: Cincinnati Global had $203 million of earned premiums for the first nine months of 2024 and generated an underwriting profit of $68 million.
−Removed: Total expenses for Other decreased for the first nine months of 2024, primarily due to lower loss and loss expenses from Cincinnati Re and Cincinnati Global.
+Added: 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.
+Added: 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.
+Added: Cincinnati Global had $64 million of earned premiums for the first three months of 2025 and generated an underwriting profit of $3 million.
+Added: 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.
−Removed: For all periods shown, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: 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.
+Added: For the first three months of 2024, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Interest and fees on loans and leases $ 3 $ 2 50
7 unchanged sentences
Total expenses 307 157 96
−Removed: Total other income $ 26 $ 30 (13) $ 95 $ 71 34
−Removed: We had $220 million and $492 million of income tax expense for the three and nine months ended September 30, 2024, compared with $49 million of income tax benefit and $126 million of income tax expense for the same periods of 2023.
−Removed: The effective tax rate for the three and nine months ended September 30, 2024, was 21.2% and 20.7% compared with 33.1% and 16.0% for the same periods last year.
+Added: Total other income (loss) $ (78) $ 29 nm
+Added: 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.
+Added: 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.
5 unchanged sentences
Details about our effective tax rate are in this quarterly report Item 1, Note 9, Income Taxes.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
LIQUIDITY AND CAPITAL RESOURCES
−Removed: At September 30, 2024, shareholders' equity was $13.804 billion, compared with $12.098 billion at December 31, 2023.
−Removed: Total debt was $815 million at September 30, 2024, unchanged from December 31, 2023.
−Removed: At September 30, 2024, cash and cash equivalents totaled $1.752 billion, compared with $907 million at December 31, 2023.
−Removed: During the third quarter of 2024, net sales of equity securities were $959 million, primarily from trimming or exiting positions for selected common stocks.
−Removed: Proceeds from the sales of those equity securities were used to purchase fixed maturities during the third quarter of 2024, with plans to purchase additional fixed maturities in the fourth quarter of 2024, thereby reducing our cash balance at September 30, 2024.
+Added: At March 31, 2025, shareholders' equity was $13.718 billion, compared with $13.935 billion at December 31, 2024.
+Added: Total debt was $815 million at March 31, 2025, unchanged from December 31, 2024.
+Added: 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.
2 unchanged sentences
Subsidiary Dividends
−Removed: Our lead insurance subsidiary declared dividends of $290 million to the parent company in the first nine months of 2024, compared with $426 million for the same period of 2023.
+Added: 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.
−Removed: For full-year 2024, total dividends that our insurance subsidiary can pay to our parent company without regulatory approval are approximately $729 million.
+Added: 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
9 unchanged sentences
The table below shows a summary of the operating cash flow for property casualty insurance (direct method):
−Removed: (Dollars in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: (Dollars in millions) Three months ended March 31,
+Added: 2025 2024 % Change
Premiums collected $ 2,277 $ 2,044 11
1 unchanged sentence
Commissions and other underwriting expenses paid (924) (808) (14)
−Removed: Cash flow from underwriting 644 451 43 1,367 849 61
+Added: Cash flow from underwriting (46) 199 nm
Investment income received 206 165 25
Cash flow from operations $ 160 $ 364 (56)
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
−Removed: Collected premiums for property casualty insurance rose $787 million during the first nine months of 2024, compared with the same period in 2023.
+Added: 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.
1 unchanged sentence
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.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Capital Resources
−Removed: At September 30, 2024, 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.
−Removed: At September 30, 2024, $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.
−Removed: Based on our capital requirements at September 30, 2024, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year.
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: On September 12, 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.
−Removed: The amount of the unsecured letter of credit agreement was $94 million, with no amount drawn.
+Added: 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.
2 unchanged sentences
Four independent ratings firms award insurer financial strength ratings to our property casualty insurance companies and three firms rate our life insurance company.
−Removed: Those firms made no changes to our parent company debt ratings during the first nine months of 2024.
−Removed: On October 16, 2024, Fitch Ratings revised our Rating Outlook to Positive from Stable for all ratings.
+Added: 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.
10 unchanged sentences
In addition to our contractual obligations, we have other property casualty operational commitments:
−Removed: • Commissions – Commissions paid were $1.310 billion in the first nine months of 2024.
+Added: • 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.
−Removed: Noncommission underwriting expenses paid were $698 million in the first nine months of 2024.
−Removed: There were no contributions to our qualified pension plan during the first nine months of 2024.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Noncommission underwriting expenses paid were $289 million in the first three months of 2025.
+Added: There were no contributions to our qualified pension plan during the first three months of 2025.
Investing Activities
3 unchanged sentences
Uses of cash to enhance shareholder return include dividends to shareholders and shares acquired under our repurchase program.
−Removed: In January 2024, the board of directors declared regular quarterly cash dividends of 81 cents per share for an indicated annual rate of $3.24 per share.
−Removed: During the first nine months of 2024, we used $365 million to pay cash dividends to shareholders.
+Added: In January 2025, the board of directors declared regular quarterly cash dividends of 87 cents
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
+Added: per share for an indicated annual rate of $3.48 per share.
+Added: 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
1 unchanged sentence
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.
−Removed: Total gross reserves at September 30, 2024, increased $891 million compared with December 31, 2023.
−Removed: Case loss reserves decreased by $9 million, IBNR loss reserves increased by $794 million and loss expense reserves increased by $106 million.
−Removed: The total gross increase was primarily due to our commercial casualty and homeowner lines of business and also our excess and surplus lines insurance segment.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Total gross reserves at March 31, 2025, increased $770 million compared with December 31, 2024.
+Added: Case loss reserves increased by $129 million, IBNR loss reserves increased by $577 million and loss expense reserves increased by $64 million.
+Added: The total gross increase was primarily due to our homeowner and commercial casualty and lines of business and also Cincinnati Re.
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
Property Casualty Gross Reserves
1 unchanged sentence
Case reserves IBNR reserves Percent of total
−Removed: At September 30, 2024
+Added: At March 31, 2025
Commercial lines insurance:
32 unchanged sentences
LIFE POLICY AND INVESTMENT CONTRACT RESERVES
−Removed: Gross life policy and investment contract reserves were $3.069 billion at September 30, 2024, compared with $3.068 billion at year-end 2023.
+Added: 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.
−Removed: Cincinnati Financial Corporation Third-Quarter 2024 10-Q
+Added: Cincinnati Financial Corporation First-Quarter 2025 10-Q
OTHER MATTERS
4 unchanged sentences
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.