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Item 1. Financial Statements

2025-07-28 compared with 2025-04-28 · 225 added, 117 removed, 684 unchanged (33% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

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

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

Fixed maturities, at fair value (amortized cost:

43 unchanged sentences

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Income

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

(Dollars in millions, except per share data) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Earned premiums $ 2,480 $ 2,156 $ 4,824 $ 4,227

10 unchanged sentences

Total benefits and expenses 2,393 2,158 5,087 4,140

Income (Loss) Before Income Taxes ( 128 ) 953

Provision (Benefit) for Income Taxes

Income Before Income Taxes 855 386 727 1,339

Provision for Income Taxes

Current 81 61 39 122

Deferred 89 13 93 150

Total provision (benefit) for income taxes ( 38 ) 198

Net Income (Loss) $ ( 90 ) $ 755

Total provision for income taxes 170 74 132 272

Net Income $ 685 $ 312 $ 595 $ 1,067

Per Common Share

Net income (loss) — basic $ ( 0.57 ) $ 4.82

Net income (loss) — diluted ( 0.57 ) 4.78

Net income — basic $ 4.38 $ 1.99 $ 3.81 $ 6.82

Net income — diluted 4.34 1.98 3.77 6.77

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(Dollars in millions) Three months ended March 31,

Net Income (Loss) $ ( 90 ) $ 755

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Net Income $ 685 $ 312 $ 595 $ 1,067

Other Comprehensive Income (Loss)

Change in unrealized gains and losses on investments, net of tax (benefit) of $ 6 , $( 17 ) $ 20 and $( 28 ), respectively

22 ( 58 ) 75 ( 102 )

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

( 1 ) 1 ( 2 ) 1

Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $ 0 , $ 8 , $( 3 ) and $ 18 , respectively

1 29 ( 13 ) 66

Other comprehensive income (loss) 22 ( 28 ) 60 ( 35 )

Comprehensive Income (Loss) $ ( 52 ) $ 748

Comprehensive Income $ 707 $ 284 $ 655 $ 1,032

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Beginning of period $ 397 $ 397 $ 397 $ 397

5 unchanged sentences

Share-based compensation 10 12 25 26

Other 3 2 4 3

End of period 1,528 1,466 1,528 1,466

1 unchanged sentence

Beginning of period 14,644 13,712 14,869 13,084

Net income (loss) ( 90 ) 755

Net income 685 312 595 1,067

Dividends declared ( 136 ) ( 127 ) ( 271 ) ( 254 )

9 unchanged sentences

Shares acquired - share-based compensation plans ( 10 ) ( 12 ) ( 13 ) ( 19 )

Other 1 — 1 —

End of period ( 2,568 ) ( 2,513 ) ( 2,568 ) ( 2,513 )

4 unchanged sentences

Share-based awards 0.1 0.1 0.3 0.4

Shares acquired - share repurchase

authorization ( 0.3 ) ( 0.7 )

Shares acquired - share-based

compensation plans — ( 0.1 )

Shares acquired - share repurchase authorization — ( 0.4 ) ( 0.3 ) ( 1.1 )

Shares acquired - share-based compensation plans ( 0.1 ) — ( 0.1 ) ( 0.1 )

End of period 156.3 156.2 156.3 156.2

1 unchanged sentence

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Six months ended June 30,

Cash Flows From Operating Activities

Net income (loss) $ ( 90 ) $ 755

Net income $ 595 $ 1,067

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

34 unchanged sentences

Supplemental Disclosures of Cash Flow Information:

Interest paid $ 27 $ 27

Income taxes paid 97 174

4 unchanged sentences

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6 unchanged sentences

Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted.

Our March 31, 2025, condensed consolidated financial statements are unaudited.

Our June 30, 2025, condensed consolidated financial statements are unaudited.

We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation.

17 unchanged sentences

The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 2 – Investments

2 unchanged sentences

cost Gross unrealized Fair value

At March 31, 2025 gains losses

At June 30, 2025 gains losses

Fixed-maturity:

19 unchanged sentences

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

The decrease in net unrealized investment losses in our fixed-maturity portfolio at March 31, 2025, is primarily due to a decrease in U.S.

Treasury yields partially offset by a widening of corporate credit spreads.

Our asset-backed securities had an average rating of Aa1/AA at both March 31, 2025, and December 31, 2024.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

The decrease in net unrealized investment losses in our fixed-maturity portfolio at June 30, 2025, is primarily due to a decrease in U.S.

Treasury yields partially offset by a slight widening of corporate credit spreads.

Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at June 30, 2025 and December 31, 2024, respectively.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions) Less than 12 months 12 months or more Total

At March 31, 2025 Fair

At June 30, 2025 Fair

value Unrealized

25 unchanged sentences

value % of fair

At March 31, 2025

At June 30, 2025

Maturity dates:

5 unchanged sentences

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Investment income:

1 unchanged sentence

Dividends 70 69 137 141

Other 5 4 12 11

Total 289 246 573 494

7 unchanged sentences

Fixed-maturity securities:

Gross realized gains 1 4 1 4

Gross realized losses — ( 6 ) — ( 7 )

1 unchanged sentence

Subtotal ( 12 ) ( 18 ) ( 14 ) ( 28 )

Other 5 6 12 26

Total $ 473 $ 137 $ 406 $ 749

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

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

The allowance for credit losses on fixed-maturity securities was $ 35 million and $ 33 million at March 31, 2025, and December 31, 2024, respectively.

There were no reductions in the allowance for credit losses for securities sold during the three months ended March 31, 2025, and 2024 .

There were 3,679 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $ 582 million and $ 631 million at March 31, 2025, and December 31, 2024, respectively.

Of those totals, 34 and 19 fixed-maturity securities had fair values below 70 % of amortized cost at March 31, 2025, and December 31, 2024, respectively.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

The fair value of our equity portfolio was $ 11.649 billion and $ 11.185 billion at June 30, 2025, and December 31, 2024, respectively.

Microsoft Corporation (Nasdaq:MSFT) and Apple Inc.

(Nasdaq:AAPL), equity holdings, were our largest single investment holdings with fair values of $ 903 million and $ 891 million, which were 8.0 % and 8.2 % of our publicly traded common equities portfolio and 3.1 % and 3.2 % of the total investment portfolio at June 30, 2025, and December 31, 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $ 47 million and $ 33 million at June 30, 2025, and December 31, 2024, respectively.

Reductions in the allowance for credit losses for securities sold were $ 1 million for both the three and six months ended June 30, 2025.

There were 3,537 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $ 582 million and $ 631 million at June 30, 2025, and December 31, 2024, respectively.

Of those totals, 48 and 19 fixed-maturity securities had fair values below 70 % of amortized cost at June 30, 2025, and December 31, 2024, respectively.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 3 – Fair Value Measurements

5 unchanged sentences

Fair Value Disclosures for Assets

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at March 31, 2025, and December 31, 2024.

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at June 30, 2025, and December 31, 2024.

We do not have any liabilities carried at fair value.

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

At March 31, 2025

At June 30, 2025

Fixed maturities, available for sale:

29 unchanged sentences

Total $ 11,447 $ 17,181 $ — $ 28,628

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

We also held Level 1 cash and cash equivalents of $ 995 million and $ 983 million at June 30, 2025, and December 31, 2024, respectively.

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

2 unchanged sentences

(Dollars in millions) Book value Principal amount

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

issue June 30, December 31, June 30, December 31,

2025 2024 2025 2024

5 unchanged sentences

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

At March 31, 2025

At June 30, 2025

Note payable $ — $ 25 $ — $ 25

9 unchanged sentences

Total $ — $ 860 $ — $ 860

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

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

At March 31, 2025

At June 30, 2025

Life policy loans $ — $ — $ 42 $ 42

7 unchanged sentences

Total $ — $ 127 $ 561 $ 688

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

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

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Outstanding principal and interest for these life policy loans totaled $ 36 million at both June 30, 2025, and December 31, 2024.

Recorded reserves for the deferred annuities were $ 575 million and $ 595 million at June 30, 2025, and December 31, 2024, respectively.

Recorded reserves for the structured settlements were $ 114 million and $ 116 million at June 30, 2025, and December 31, 2024, respectively.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 4 – Property Casualty Loss and Loss Expenses

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Gross loss and loss expense reserves, beginning of period $ 10,707 $ 9,178 $ 9,937 $ 8,975

17 unchanged sentences

This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate.

The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $ 73 million and $ 68 million at March 31, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves.

We experienced $ 91 million of favorable development on prior accident years, including $ 43 million of favorable development in commercial lines, $ 19 million of favorable development in personal lines and $ 9 million of favorable development in excess and surplus lines for the three months ended March 31, 2025.

The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $ 71 million and $ 61 million at June 30, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves.

We experienced $ 63 million of favorable development on prior accident years, including $ 42 million of favorable development in commercial lines, $ 19 million of favorable development in personal lines and $ 5 million of favorable development in excess and surplus lines for the three months ended June 30, 2025.

Within commercial lines, we recognized favorable reserve development of $ 40 million for the commercial property line and $ 17 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

This was partially offset by unfavorable reserve development of $ 18 million for the commercial auto line.

Within personal lines, we recognized favorable reserve development of $ 25 million for the homeowner line.

We experienced $ 100 million of favorable development on prior accident years, including $ 38 million of favorable development in commercial lines, $ 33 million of favorable development in personal lines and $ 3 million of favorable development in excess and surplus lines for the three months ended March 31, 2024.

We experienced $ 154 million of favorable development on prior accident years, including $ 85 million of favorable development in commercial lines, $ 38 million of favorable development in personal lines and $ 14 million of favorable development in excess and surplus lines for the six months ended June 30, 2025.

Within commercial lines, we recognized favorable reserve development of $ 75 million for the commercial property line and $ 28 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

Within personal lines, we recognized favorable reserve development of $ 25 million for the homeowner line and $ 5 million for the personal auto line.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

This was partially offset by unfavorable reserve development of $ 24 million for the commercial auto line.

Within personal lines, we recognized favorable reserve development of $ 44 million for the homeowner line.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

We experienced $ 40 million of favorable development on prior accident years, including $ 29 million of favorable development in commercial lines, $ 6 million of unfavorable development in personal lines and $ 3 million of unfavorable development in excess and surplus lines for the three months ended June 30, 2024.

Within commercial lines, we recognized favorable reserve development of $ 28 million for the workers' compensation line and $ 21 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

This was partially offset by unfavorable reserve development of $ 28 million for the commercial casualty line.

Within personal lines, we recognized unfavorable reserve development of $ 12 million for the personal auto line.

We experienced $ 140 million of favorable development on prior accident years, including $ 67 million of favorable development in commercial lines, $ 27 million of favorable development in personal lines and no net development in excess and surplus lines for the six months ended June 30, 2024.

Within commercial lines, we recognized favorable reserve development of $ 44 million for the commercial property line, $ 40 million for the workers' compensation line and $ 11 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

This was partially offset by unfavorable reserve development of $ 29 million for the commercial casualty line.

Within personal lines, we recognized favorable reserve development of $ 27 million for the homeowner line.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 5 – Life Policy and Investment Contract Reserves

2 unchanged sentences

We estimate future benefits and claim expenses and net premium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption.

The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates.

The cash flow assumptions are established based on our current expectations and are reviewed annually, typically in the second quarter, to determine any necessary updates.

These assumptions are also updated on an interim basis if evidence suggests that they should be revised.

6 unchanged sentences

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

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

(Dollars in millions) June 30, 2025 December 31, 2024

Life policy reserves:

9 unchanged sentences

Total life policy and investment contract reserves $ 2,959 $ 2,960

Cincinnati Financial Corporation First-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended March 31,

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

(Dollars in millions) Three months ended June 30,

Term Whole life Term Whole life

31 unchanged sentences

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

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

(Dollars in millions) Six months ended June 30,

Term Whole life Term Whole life

Present value of expected net premiums:

Balance, beginning of period $ 1,638 $ 218 $ 1,700 $ 223

Beginning balance at original discount rate 1,719 228 1,712 225

Effect of changes in cash flow assumptions ( 4 ) — ( 12 ) 1

Effect of actual variances from expected experience ( 3 ) ( 1 ) ( 19 ) ( 3 )

Adjusted beginning of period balance 1,712 227 1,681 223

Issuances 76 7 76 11

Interest accrual 38 5 36 5

Net premiums collected ( 95 ) ( 13 ) ( 92 ) ( 14 )

Ending balance at original discount rate 1,731 226 1,701 225

Effect of changes in discount rate assumptions ( 53 ) ( 6 ) ( 81 ) ( 10 )

Balance, end of period 1,678 220 1,620 215

Present value of expected future policy benefits:

Balance, beginning of period 2,668 623 2,751 657

Beginning balance at original discount rate 2,812 646 2,765 628

Effect of changes in cash flow assumptions ( 12 ) — ( 29 ) 2

Effect of actual variances from expected experience ( 6 ) ( 1 ) ( 28 ) ( 4 )

Adjusted beginning of period balance 2,794 645 2,708 626

Issuances 76 7 76 12

Interest accrual 64 17 62 16

Benefits paid ( 113 ) ( 18 ) ( 74 ) ( 18 )

Ending balance at original discount rate 2,821 651 2,772 636

Effect of changes in discount rate assumptions ( 101 ) ( 17 ) ( 138 ) ( 17 )

Balance, end of period 2,720 634 2,634 619

Net liability for future policy benefits:

Present value of expected future policy benefits less expected net premiums 1,042 414 1,014 404

Impact of flooring at cohort level 19 — 21 —

Net life policy reserves 1,061 414 1,035 404

Less reinsurance recoverable at original discount rate ( 68 ) ( 25 ) ( 95 ) ( 24 )

Less effect of discount rate assumption changes on reinsurance recoverable ( 7 ) ( 3 ) ( 7 ) ( 4 )

Net life policy reserves, after reinsurance recoverable $ 986 $ 386 $ 933 $ 376

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

The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $ 2 million and $ 3 million at June 30, 2025 and 2024, respectively.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions) At March 31,

(Dollars in millions) At June 30,

Undiscounted Discounted Undiscounted Discounted

4 unchanged sentences

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Gross premiums

6 unchanged sentences

Total $ 19 $ 18 $ 38 $ 37

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

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as immaterial for the six months ended June 30, 2025, and 2024 .

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

4 unchanged sentences

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended March 31,

Deferred annuity Universal life Deferred annuity Universal life

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

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

Balance, beginning of period $ 582 $ 457 $ 631 $ 456 $ 595 $ 456 $ 656 $ 457

11 unchanged sentences

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

At March 31, 2025

At June 30, 2025

Deferred annuity

7 unchanged sentences

Total $ 324 $ 55 $ 60 $ 15 $ 454

At March 31, 2024

At June 30, 2024

Deferred annuity

7 unchanged sentences

Total $ 328 $ 65 $ 59 $ 4 $ 456

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Balance, beginning of period $ 130 $ 129 $ 130 $ 128

14 unchanged sentences

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Balance, beginning of period $ 959 $ 927 $ 952 $ 925

4 unchanged sentences

Cash surrender value $ 959 $ 932 $ 959 $ 932

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 6 – Deferred Policy Acquisition Costs

4 unchanged sentences

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Property casualty:

12 unchanged sentences

Deferred policy acquisition costs asset, end of period $ 1,367 $ 1,229 $ 1,367 $ 1,229

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

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

(Dollars in millions)

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

Three months ended June 30, 2025 Term Whole life Deferred annuity Universal life Total

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

2 unchanged sentences

Balance, end of period $ 251 $ 53 $ 7 $ 51 $ 362

Three months ended March 31, 2024

Three months ended June 30, 2024

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

2 unchanged sentences

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

(Dollars in millions)

Six months ended June 30, 2025 Term Whole life Deferred annuity Universal life Total

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

Capitalized deferred policy acquisition costs 18 3 — 1 22

Amortized deferred policy acquisition costs ( 12 ) ( 2 ) ( 1 ) ( 1 ) ( 16 )

Balance, end of period $ 251 $ 53 $ 7 $ 51 $ 362

Six months ended June 30, 2024

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

Capitalized deferred policy acquisition costs 16 4 1 1 22

Amortized deferred policy acquisition costs ( 11 ) ( 2 ) ( 1 ) ( 1 ) ( 15 )

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

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 7 – Accumulated Other Comprehensive Income

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30,

Before tax Income tax Net Before tax Income tax Net

23 unchanged sentences

AOCI, end of period $ ( 316 ) $ ( 67 ) $ ( 249 ) $ ( 598 ) $ ( 128 ) $ ( 470 )

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

(Dollars in millions) Six months ended June 30,

Before tax Income tax Net Before tax Income tax Net

AOCI, beginning of period $ ( 553 ) $ ( 119 ) $ ( 434 ) $ ( 570 ) $ ( 123 ) $ ( 447 )

OCI before investment gains and losses, net, recognized in net income 81 17 64 ( 158 ) ( 34 ) ( 124 )

Investment gains and losses, net, recognized in net income 14 3 11 28 6 22

OCI 95 20 75 ( 130 ) ( 28 ) ( 102 )

AOCI, end of period $ ( 458 ) $ ( 99 ) $ ( 359 ) $ ( 700 ) $ ( 151 ) $ ( 549 )

Pension obligations:

AOCI, beginning of period $ 75 $ 17 $ 58 $ 30 $ 8 $ 22

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

Amortization recognized in net income ( 2 ) — ( 2 ) 1 — 1

OCI ( 2 ) — ( 2 ) 1 — 1

AOCI, end of period $ 73 $ 17 $ 56 $ 31 $ 8 $ 23

Life policy reserves, reinsurance recoverable and other:

AOCI, beginning of period $ 85 $ 18 $ 67 $ ( 13 ) $ ( 3 ) $ ( 10 )

OCI before investment gains and losses, net, recognized in net income ( 16 ) ( 3 ) ( 13 ) 84 18 66

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

OCI ( 16 ) ( 3 ) ( 13 ) 84 18 66

AOCI, end of period $ 69 $ 15 $ 54 $ 71 $ 15 $ 56

Summary of AOCI:

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

Investments OCI 95 20 75 ( 130 ) ( 28 ) ( 102 )

Pension obligations OCI ( 2 ) — ( 2 ) 1 — 1

Life policy reserves, reinsurance recoverable and other OCI ( 16 ) ( 3 ) ( 13 ) 84 18 66

Total OCI 77 17 60 ( 45 ) ( 10 ) ( 35 )

AOCI, end of period $ ( 316 ) $ ( 67 ) $ ( 249 ) $ ( 598 ) $ ( 128 ) $ ( 470 )

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income.

Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 8 – Reinsurance

3 unchanged sentences

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Direct written premiums $ 2,672 $ 2,362 $ 5,060 $ 4,487

10 unchanged sentences

Incurred loss and loss expenses $ 1,587 $ 1,412 $ 3,474 $ 2,682

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Our life insurance company purchases reinsurance for protection of a portion of the risks that are written.

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Direct earned premiums $ 104 $ 101 $ 203 $ 200

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

The allowance for uncollectible property casualty premiums was $ 17 million and $ 18 million at March 31, 2025, and December 31, 2024, respectively.

The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at March 31, 2025, and December 31, 2024.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

The allowance for uncollectible property casualty premiums was $ 17 million and $ 18 million at June 30, 2025, and December 31, 2024, respectively.

The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at June 30, 2025, and December 31, 2024.

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 9 – Income Taxes

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Tax at statutory rate:

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Other 2 0.3 4 1.1 1 0.2 12 0.8

Provision (benefit) for income taxes $ ( 38 ) 29.7 % $ 198 20.8 %

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

Provision for income taxes $ 170 19.9 % $ 74 19.2 % $ 132 18.2 % $ 272 20.3 %

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

The One Big Beautiful Bill Act (the "Tax Act") was enacted on July 4, 2025, and makes permanent several provisions from the 2017 Tax Cuts and Jobs Act.

We do not expect the enactment of the Tax Act to have a material impact on our financial statements.

We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S.

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

domestic operations or Cincinnati Global at both March 31, 2025, and December 31, 2024.

domestic operations or Cincinnati Global at both June 30, 2025, and December 31, 2024.

Cincinnati Global

Cincinnati Global had no operating loss carryforwards in the United States and $ 67 million and $ 78 million in the United Kingdom at March 31, 2025, and December 31, 2024, respectively.

Cincinnati Global had no operating loss carryforwards in the United States and $ 59 million and $ 78 million in the United Kingdom at June 30, 2025, and December 31, 2024, respectively.

These Cincinnati Global losses can only be utilized within the Cincinnati Global group.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

NOTE 10 – Net Income (Loss) Per Common Share

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 10 – Net Income Per Common Share

Basic earnings per share are computed based on the weighted average number of common shares outstanding.

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

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

Net income (loss)—basic and diluted

(In millions, except per share data) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Basic weighted-average common shares

outstanding 156.4 156.8

Net income—basic and diluted

$ 685 $ 312 $ 595 $ 1,067

Basic weighted-average common shares outstanding 156.3 156.3 156.4 156.6

Effect of share-based awards:

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Diluted weighted-average shares 157.8 157.5 157.8 157.7

Earnings (loss) per share:

Earnings per share:

Basic $ 4.38 $ 1.99 $ 3.81 $ 6.82

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See our 2024 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 173, for information about share-based awards.

The above table shows the number of anti-dilutive share-based awards for the three months ended March 31, 2025 and 2024.

In accordance with Accounting Standards Codification 260, Earnings per Share , the assumed exercise of share-based awards was excluded from the computation of diluted loss per share for the three months ended March 31, 2025, because their exercise would have anti-dilutive effects.

The above table shows the number of anti-dilutive share-based awards for the three and six months ended June 30, 2025 and 2024.

NOTE 11 – Employee Retirement Benefits

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

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Service cost $ 1 $ 2 $ 2 $ 3

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Expected return on plan assets ( 5 ) ( 6 ) ( 11 ) ( 11 )

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

Amortization of actuarial (gain) loss and prior service cost ( 1 ) 1 ( 2 ) 1

Total non-service benefit ( 3 ) ( 2 ) ( 6 ) ( 4 )

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The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2025 and 2024.

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

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

Cincinnati Financial Corporation First-Quarter 2025 10-Q

We made matching contributions totaling $ 8 million and $ 7 million to our 401(k) and Top Hat savings plans during the second quarter of 2025 and 2024, respectively, and contributions of $ 19 million and $ 16 million for the first half of 2025 and 2024, respectively.

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

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

NOTE 12 – Commitments and Contingent Liabilities

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These actions include, among others, putative class actions seeking certification of state or national classes.

Such proceedings have alleged, for example, improper depreciation of labor costs in repair estimates.

The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates.

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See our 2024 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 176, for a description of revenue, income or loss before inco me taxes, including its components, an d identifiable assets for each of the five segments.

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Segment information is summarized in the following table:

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Commercial lines insurance

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Underwriting expenses 222 185 432 358

Total personal lines income (loss) before income taxes ( 357 ) 37

Total personal lines loss before income taxes ( 14 ) ( 42 ) ( 371 ) ( 5 )

Excess and surplus lines insurance

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Total investment income before income taxes 727 348 908 1,174

Reconciliation to condensed consolidated income (loss) before income taxes

Reconciliation to condensed consolidated income before income taxes

Total segment revenues 3,036 2,354 5,373 5,103

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Total benefits and expenses 2,393 2,158 5,087 4,140

Total income (loss) before income taxes $ ( 128 ) $ 953

Cincinnati Financial Corporation First-Quarter 2025 10-Q

Total income before income taxes $ 855 $ 386 $ 727 $ 1,339

Cincinnati Financial Corporation Second-Quarter 2025 10-Q

Identifiable assets by segment are summarized in the following table:

(Dollars in millions) March 31, December 31,

(Dollars in millions) June 30, December 31,

Identifiable assets:

5 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.

What changed 10-Q

Item 1. Financial Statements