CINCINNATI FINANCIAL CORP 10-Q

Item 1. Financial Statements (unaudited) Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in millions, except per share data) June 30, December 31, 2025 2024 Assets Investments Fixed maturities, at fair value (amortized cost: 2025—$ 17,535 ; 2024—$ 16,735 ) $ 17,077 $ 16,182 Equity securities, at fair value (cost: 2025—$ 4,012 ; 2024—$ 3,953 ) 11,649 11,185 Short-term investments, at fair value (amortized cost: 2025—$ 100 ; 2024—$ 298 ) 100 298 Other invested assets 743 713 Total investments 29,569 28,378 Cash and cash equivalents 995 983 Investment income receivable 223 222 Finance receivable 121 120 Premiums receivable 3,420 2,969 Reinsurance recoverable 749 523 Prepaid reinsurance premiums 130 70 Deferred policy acquisition costs 1,367 1,242 Land, building and equipment, net, for company use (accumulated depreciation: 2025—$ 355 ; 2024—$ 347 ) 214 214 Other assets 1,063 828 Separate accounts 991 952 Total assets $ 38,842 $ 36,501 Liabilities Insurance reserves Loss and loss expense reserves $ 11,072 $ 10,003 Life policy and investment contract reserves 2,959 2,960 Unearned premiums 5,444 4,813 Other liabilities 1,607 1,487 Deferred income tax 1,584 1,476 Note payable 25 25 Long-term debt and lease obligations 859 850 Separate accounts 991 952 Total liabilities 24,541 22,566 Commitments and contingent liabilities (Note 12) Shareholders' Equity Common stock, par value—$ 2 per share; (authorized: 2025 and 2024— 500 million shares; issued: 2025 and 2024— 198.3 million shares) 397 397 Paid-in capital 1,528 1,502 Retained earnings 15,193 14,869 Accumulated other comprehensive loss ( 249 ) ( 309 ) Treasury stock at cost (2025— 42.0 million shares and 2024— 41.9 million shares) ( 2,568 ) ( 2,524 ) Total shareholders' equity 14,301 13,935 Total liabilities and shareholders' equity $ 38,842 $ 36,501 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 3 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Income (Dollars in millions, except per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues Earned premiums $ 2,480 $ 2,156 $ 4,824 $ 4,227 Investment income, net of expenses 285 242 565 487 Investment gains and losses, net 473 137 406 749 Fee revenues 5 5 10 9 Other revenues 5 4 9 7 Total revenues 3,248 2,544 5,814 5,479 Benefits and Expenses Insurance losses and contract holders' benefits 1,660 1,480 3,628 2,829 Underwriting, acquisition and insurance expenses 709 655 1,411 1,271 Interest expense 14 14 27 27 Other operating expenses 10 9 21 13 Total benefits and expenses 2,393 2,158 5,087 4,140 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 for income taxes 170 74 132 272 Net Income $ 685 $ 312 $ 595 $ 1,067 Per Common Share 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 Second-Quarter 2025 10-Q Page 4 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (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 $ 707 $ 284 $ 655 $ 1,032 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 5 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders' Equity (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Common Stock Beginning of period $ 397 $ 397 $ 397 $ 397 Share-based awards — — — — End of period 397 397 397 397 Paid-In Capital Beginning of period 1,511 1,446 1,502 1,437 Share-based awards 4 6 ( 3 ) — Share-based compensation 10 12 25 26 Other 3 2 4 3 End of period 1,528 1,466 1,528 1,466 Retained Earnings Beginning of period 14,644 13,712 14,869 13,084 Net income 685 312 595 1,067 Dividends declared ( 136 ) ( 127 ) ( 271 ) ( 254 ) End of period 15,193 13,897 15,193 13,897 Accumulated Other Comprehensive Loss Beginning of period ( 271 ) ( 442 ) ( 309 ) ( 435 ) Other comprehensive income (loss) 22 ( 28 ) 60 ( 35 ) End of period ( 249 ) ( 470 ) ( 249 ) ( 470 ) Treasury Stock Beginning of period ( 2,563 ) ( 2,459 ) ( 2,524 ) ( 2,385 ) Share-based awards 4 4 10 12 Shares acquired - share repurchase authorization — ( 46 ) ( 42 ) ( 121 ) Shares acquired - share-based compensation plans ( 10 ) ( 12 ) ( 13 ) ( 19 ) Other 1 — 1 — End of period ( 2,568 ) ( 2,513 ) ( 2,568 ) ( 2,513 ) Total Shareholders' Equity $ 14,301 $ 12,777 $ 14,301 $ 12,777 (In millions, except per common share) Common Stock - Shares Outstanding Beginning of period 156.3 156.5 156.4 157.0 Share-based awards 0.1 0.1 0.3 0.4 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 Dividends declared per common share $ 0.87 $ 0.81 $ 1.74 $ 1.62 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 6 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in millions) Six months ended June 30, 2025 2024 Cash Flows From Operating Activities Net income $ 595 $ 1,067 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 93 76 Investment gains and losses, net ( 392 ) ( 744 ) Interest credited to contract holders 22 22 Deferred income tax expense 93 150 Changes in: Premiums and reinsurance receivable ( 737 ) ( 464 ) Deferred policy acquisition costs ( 125 ) ( 136 ) Other assets ( 65 ) ( 16 ) Loss and loss expense reserves 1,069 505 Life policy and investment contract reserves 8 34 Unearned premiums 631 707 Other liabilities ( 54 ) ( 34 ) Current income tax receivable/payable ( 87 ) ( 72 ) Net cash provided by operating activities 1,051 1,095 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 1,348 852 Sale of equity securities 34 347 Purchase of fixed maturities ( 2,060 ) ( 1,623 ) Purchase of equity securities ( 95 ) ( 256 ) Change in short-term investments, net 201 — Changes in finance receivables ( 3 ) ( 4 ) Investment in building and equipment ( 7 ) ( 12 ) Change in other invested assets, net ( 32 ) ( 44 ) Net cash used in investing activities ( 614 ) ( 740 ) Cash Flows From Financing Activities Payment of cash dividends to shareholders ( 258 ) ( 241 ) Shares acquired - share repurchase authorization ( 42 ) ( 121 ) Proceeds from stock options exercised 6 4 Contract holders' funds deposited 31 39 Contract holders' funds withdrawn ( 80 ) ( 105 ) Other ( 82 ) ( 67 ) Net cash used in financing activities ( 425 ) ( 491 ) Net change in cash and cash equivalents 12 ( 136 ) Cash and cash equivalents at beginning of year 983 907 Cash and cash equivalents at end of period $ 995 $ 771 Supplemental Disclosures of Cash Flow Information: Interest paid $ 27 $ 27 Income taxes paid 97 174 Noncash Activities Equipment acquired under finance lease obligations $ 12 $ 9 Share-based compensation 26 33 Other assets and other liabilities 254 217 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 7 Table of Contents NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 — Accounting Policies The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted. Our 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. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2024 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year. Pending Accounting Updates ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements . ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires increased quantitative and qualitative disclosure of certain categories of expenses. The effective date of ASU 2024-03 is for annual periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 8 Table of Contents NOTE 2 – Investments The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments: (Dollars in millions) Amortized cost Gross unrealized Fair value At June 30, 2025 gains losses Fixed-maturity: Corporate $ 9,136 $ 107 $ 256 $ 8,987 States, municipalities and political subdivisions 5,004 8 304 4,708 Government-sponsored enterprises 2,455 1 9 2,447 Asset-backed 736 8 12 732 United States government 184 — 1 183 Foreign government 20 — — 20 Total fixed-maturity 17,535 124 582 17,077 Short-term 100 — — 100 Total fixed-maturity and short-term investments $ 17,635 $ 124 $ 582 $ 17,177 At December 31, 2024 Fixed-maturity: Corporate $ 8,652 $ 61 $ 333 $ 8,380 States, municipalities and political subdivisions 4,976 15 270 4,721 Government-sponsored enterprises 2,282 1 9 2,274 Asset-backed 567 1 17 551 United States government 228 — 2 226 Foreign government 30 — — 30 Total fixed-maturity 16,735 78 631 16,182 Short-term 298 — — 298 Total fixed-maturity and short-term investments $ 17,033 $ 78 $ 631 $ 16,480 The decrease in net unrealized investment losses in our fixed-maturity portfolio at 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 Page 9 Table of Contents 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 June 30, 2025 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity: Corporate $ 1,738 $ 51 $ 3,037 $ 205 $ 4,775 $ 256 States, municipalities and political subdivisions 1,505 49 2,062 255 3,567 304 Government-sponsored enterprises 1,427 9 124 — 1,551 9 Asset-backed 237 7 78 5 315 12 United States government — — 62 1 62 1 Foreign government — — — — — — Total fixed-maturity 4,907 116 5,363 466 10,270 582 Short-term 100 — — — 100 — Total fixed-maturity and short-term investments $ 5,007 $ 116 $ 5,363 $ 466 $ 10,370 $ 582 At December 31, 2024 Fixed-maturity: Corporate $ 2,815 $ 78 $ 3,634 $ 255 $ 6,449 $ 333 States, municipalities and political subdivisions 1,513 25 1,898 245 3,411 270 Government-sponsored enterprises 1,876 8 92 1 1,968 9 Asset-backed 331 10 96 7 427 17 United States government 48 — 100 2 148 2 Foreign government — — 3 — 3 — Total fixed-maturity 6,583 121 5,823 510 12,406 631 Short-term 100 — — — 100 — Total fixed-maturity and short-term investments $ 6,683 $ 121 $ 5,823 $ 510 $ 12,506 $ 631 Contractual maturity dates for our fixed-maturity and short-term investments were: (Dollars in millions) Amortized cost Fair value % of fair value At June 30, 2025 Maturity dates: Due in one year or less $ 1,087 $ 1,082 6.3 % Due after one year through five years 3,766 3,760 21.9 Due after five years through ten years 3,955 3,916 22.8 Due after ten years 8,827 8,419 49.0 Total $ 17,635 $ 17,177 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 10 Table of Contents The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Investment income: Interest $ 214 $ 173 $ 424 $ 342 Dividends 70 69 137 141 Other 5 4 12 11 Total 289 246 573 494 Less investment expenses 4 4 8 7 Total $ 285 $ 242 $ 565 $ 487 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ ( 1 ) $ 7 $ ( 3 ) $ 4 Unrealized gains and losses on securities still held, net 481 142 411 747 Subtotal 480 149 408 751 Fixed-maturity securities: Gross realized gains 1 4 1 4 Gross realized losses — ( 6 ) — ( 7 ) Change in allowance for credit losses, net ( 13 ) ( 16 ) ( 15 ) ( 25 ) Subtotal ( 12 ) ( 18 ) ( 14 ) ( 28 ) Other 5 6 12 26 Total $ 473 $ 137 $ 406 $ 749 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 Page 11 Table of Contents NOTE 3 – Fair Value Measurements In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2024, and ultimately management determines fair value. See our 2024 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 138, for information on characteristics and valuation techniques used in determining fair value. Fair Value Disclosures for Assets The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at 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 June 30, 2025 Fixed maturities, available for sale: Corporate $ — $ 8,987 $ — $ 8,987 States, municipalities and political subdivisions — 4,708 — 4,708 Government-sponsored enterprises — 2,447 — 2,447 Asset-backed — 732 — 732 United States government 183 — — 183 Foreign government — 20 — 20 Subtotal 183 16,894 — 17,077 Common equities 11,309 — — 11,309 Nonredeemable preferred equities — 340 — 340 Separate accounts taxable fixed maturities 19 902 — 921 Short-term investments 100 — — 100 Top Hat savings plan mutual funds and common equity (included in Other assets) 94 — — 94 Total $ 11,705 $ 18,136 $ — $ 29,841 At December 31, 2024 Fixed maturities, available for sale: Corporate $ — $ 8,380 $ — $ 8,380 States, municipalities and political subdivisions — 4,721 — 4,721 Government-sponsored enterprises — 2,274 — 2,274 Asset-backed — 551 — 551 United States government 226 — — 226 Foreign government — 30 — 30 Subtotal 226 15,956 — 16,182 Common equities 10,836 — — 10,836 Nonredeemable preferred equities — 349 — 349 Separate accounts taxable fixed maturities — 876 — 876 Short-term investments 298 — — 298 Top Hat savings plan mutual funds and common equity (included in Other assets) 87 — — 87 Total $ 11,447 $ 17,181 $ — $ 28,628 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 12 Table of Contents 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 The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements. This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest rate Year of issue June 30, December 31, June 30, December 31, 2025 2024 2025 2024 6.900 % 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920 % 2005 Senior debentures, due 2028 391 391 391 391 6.125 % 2004 Senior notes, due 2034 372 372 374 374 Total $ 790 $ 790 $ 793 $ 793 The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2025 Note payable $ — $ 25 $ — $ 25 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 421 — 421 6.125 % senior notes, due 2034 — 399 — 399 Total $ — $ 874 $ — $ 874 At December 31, 2024 Note payable $ — $ 25 $ — $ 25 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 416 — 416 6.125 % senior notes, due 2034 — 390 — 390 Total $ — $ 860 $ — $ 860 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 13 Table of Contents 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 June 30, 2025 Life policy loans $ — $ — $ 42 $ 42 Deferred annuities $ — $ — $ 549 $ 549 Structured settlements — 125 — 125 Total $ — $ 125 $ 549 $ 674 At December 31, 2024 Life policy loans $ — $ — $ 41 $ 41 Deferred annuities $ — $ — $ 561 $ 561 Structured settlements — 127 — 127 Total $ — $ 127 $ 561 $ 688 Outstanding principal and interest for these life policy loans totaled $ 36 million at both 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 Page 14 Table of Contents 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 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 Less reinsurance recoverable 551 332 269 362 Net loss and loss expense reserves, beginning of period 10,156 8,846 9,668 8,613 Net incurred loss and loss expenses related to: Current accident year 1,650 1,452 3,628 2,822 Prior accident years ( 63 ) ( 40 ) ( 154 ) ( 140 ) Total incurred 1,587 1,412 3,474 2,682 Net paid loss and loss expenses related to: Current accident year 591 483 1,184 688 Prior accident years 655 584 1,461 1,416 Total paid 1,246 1,067 2,645 2,104 Net loss and loss expense reserves, end of period 10,497 9,191 10,497 9,191 Plus reinsurance recoverable 504 303 504 303 Gross loss and loss expense reserves, end of period $ 11,001 $ 9,494 $ 11,001 $ 9,494 We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $ 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 $ 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. 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 Page 15 Table of Contents 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 Page 16 Table of Contents NOTE 5 – Life Policy and Investment Contract Reserves We establish the reserves for traditional life policies including term, whole life and other products based on the present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to pro vide for all benefits and claim expenses. We estimate future benefits and claim expenses and net premium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually, 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. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables. We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets: (Dollars in millions) June 30, 2025 December 31, 2024 Life policy reserves: Term $ 1,061 $ 1,051 Whole life 414 405 Other 100 98 Subtotal 1,575 1,554 Investment contract reserves: Deferred annuities 575 595 Universal life 586 586 Structured settlements 114 116 Other 109 109 Subtotal 1,384 1,406 Total life policy and investment contract reserves $ 2,959 $ 2,960 The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves are as follows: Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 17 Table of Contents (Dollars in millions) Three months ended June 30, 2025 2024 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,659 $ 220 $ 1,660 $ 219 Beginning balance at original discount rate 1,719 227 1,710 225 Effect of changes in cash flow assumptions ( 4 ) — ( 12 ) 1 Effect of actual variances from expected experience 5 ( 1 ) ( 10 ) ( 3 ) Adjusted beginning of period balance 1,720 226 1,688 223 Issuances 41 4 41 6 Interest accrual 19 2 18 3 Net premiums collected ( 49 ) ( 6 ) ( 46 ) ( 7 ) 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 2,703 631 2,698 637 Beginning balance at original discount rate 2,812 648 2,780 633 Effect of changes in cash flow assumptions ( 12 ) — ( 29 ) 2 Effect of actual variances from expected experience 8 ( 1 ) ( 14 ) ( 4 ) Adjusted beginning of period balance 2,808 647 2,737 631 Issuances 40 4 41 7 Interest accrual 32 8 31 8 Benefits paid ( 59 ) ( 8 ) ( 37 ) ( 10 ) 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 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 18 Table of Contents (Dollars in millions) Six months ended June 30, 2025 2024 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,638 $ 218 $ 1,700 $ 223 Beginning balance at original discount rate 1,719 228 1,712 225 Effect of changes in cash flow assumptions ( 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 Page 19 Table of Contents 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 June 30, 2025 2024 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,947 $ 2,720 $ 4,819 $ 2,634 Expected future gross premiums 4,632 2,697 4,513 2,597 Whole life Expected future benefit payments $ 1,709 $ 634 $ 1,680 $ 619 Expected future gross premiums 688 415 675 401 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 June 30, Six months ended June 30, 2025 2024 2025 2024 Gross premiums Term $ 77 $ 75 $ 151 $ 149 Whole life 14 13 27 26 Total $ 91 $ 88 $ 178 $ 175 Interest accretion Term $ 13 $ 13 $ 26 $ 26 Whole life 6 5 12 11 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 six months ended June 30, 2025, and 2024 . The following table shows the weighted-average interest rate for our term and whole life products : At June 30, 2025 2024 Term Interest accretion rate 5.22 % 5.22 % Current discount rate 4.93 5.24 Whole life Interest accretion rate 5.86 % 5.90 % Current discount rate 5.68 5.67 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 20 Table of Contents The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (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 Premiums received 8 9 10 9 12 19 19 19 Policy charges — ( 10 ) — ( 10 ) — ( 20 ) — ( 20 ) Surrenders and withdrawals ( 18 ) ( 3 ) ( 26 ) ( 3 ) ( 35 ) ( 6 ) ( 63 ) ( 7 ) Benefit payments ( 3 ) ( 4 ) ( 2 ) ( 1 ) ( 8 ) ( 5 ) ( 5 ) ( 3 ) Interest credited 6 5 5 5 11 10 11 10 Balance, end of period $ 575 $ 454 $ 618 $ 456 $ 575 $ 454 $ 618 $ 456 Weighted average crediting rate 3.71 % 4.43 % 3.59 % 4.33 % 3.71 % 4.43 % 3.59 % 4.33 % Net amount at risk $ — $ 3,746 $ — $ 3,892 $ — $ 3,746 $ — $ 3,892 Cash surrender value 568 426 612 425 568 426 612 425 The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances. The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At June 30, 2025 Deferred annuity 1.00-3.00% $ 9 $ 269 $ 14 $ 237 $ 529 3.01-4.00% 46 — — — 46 Total $ 55 $ 269 $ 14 $ 237 $ 575 Universal life 1.00-3.00% $ — $ 55 $ 56 $ 15 $ 126 3.01-4.00% 51 — 4 — 55 Greater than 4.00% 273 — — — 273 Total $ 324 $ 55 $ 60 $ 15 $ 454 At June 30, 2024 Deferred annuity 1.00-3.00% $ 4 $ 324 $ 14 $ 228 $ 570 3.01-4.00% 48 — — — 48 Total $ 52 $ 324 $ 14 $ 228 $ 618 Universal life 1.00-3.00% $ — $ 60 $ 59 $ 4 $ 123 3.01-4.00% 49 5 — — 54 Greater than 4.00% 279 — — — 279 Total $ 328 $ 65 $ 59 $ 4 $ 456 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 21 Table of Contents 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 June 30, Six months ended June 30, 2025 2024 2025 2024 Balance, beginning of period $ 130 $ 129 $ 130 $ 128 Balance, beginning of period before shadow reserve adjustments 131 130 131 129 Effect of changes in cash flow assumptions — ( 2 ) — ( 2 ) Effect of actual variances from expected experience — — 2 — Adjusted beginning of period balance 131 128 133 127 Interest accrual 1 1 2 2 Excess death benefits ( 2 ) ( 1 ) ( 9 ) ( 3 ) Attributed assessments 3 3 6 6 Effect of changes in interest rate assumptions — ( 1 ) 1 ( 2 ) Balance, end of period before shadow reserve adjustments 133 130 133 130 Shadow reserve adjustments ( 1 ) ( 2 ) ( 1 ) ( 2 ) Balance, end of period 132 128 132 128 Less reinsurance recoverable, end of period 6 6 6 6 Net other additional liability, after reinsurance recoverable $ 138 $ 134 $ 138 $ 134 Weighted-average duration of the other additional liability in years 26 29 26 29 The following table shows balances and changes in separate accounts balances during the period: (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 Interest credited before policy charges 11 11 22 21 Benefit payments — ( 3 ) ( 8 ) ( 3 ) Other 21 13 25 5 Balance, end of period $ 991 $ 948 $ 991 $ 948 Cash surrender value $ 959 $ 932 $ 959 $ 932 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 22 Table of Contents NOTE 6 – Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 937 $ 796 $ 886 $ 749 Capitalized deferred policy acquisition costs 513 475 998 882 Amortized deferred policy acquisition costs ( 445 ) ( 393 ) ( 879 ) ( 753 ) Deferred policy acquisition costs asset, end of period $ 1,005 $ 878 $ 1,005 $ 878 Life: Deferred policy acquisition costs asset, beginning of period $ 360 $ 347 $ 356 $ 344 Capitalized deferred policy acquisition costs 10 12 22 22 Amortized deferred policy acquisition costs ( 8 ) ( 8 ) ( 16 ) ( 15 ) Deferred policy acquisition costs asset, end of period $ 362 $ 351 $ 362 $ 351 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,297 $ 1,143 $ 1,242 $ 1,093 Capitalized deferred policy acquisition costs 523 487 1,020 904 Amortized deferred policy acquisition costs ( 453 ) ( 401 ) ( 895 ) ( 768 ) Deferred policy acquisition costs asset, end of period $ 1,367 $ 1,229 $ 1,367 $ 1,229 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 23 Table of Contents The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Three months ended June 30, 2025 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 248 $ 53 $ 8 $ 51 $ 360 Capitalized deferred policy acquisition costs 9 1 — — 10 Amortized deferred policy acquisition costs ( 6 ) ( 1 ) ( 1 ) — ( 8 ) Balance, end of period $ 251 $ 53 $ 7 $ 51 $ 362 Three months ended June 30, 2024 Balance, beginning of period $ 238 $ 49 $ 8 $ 52 $ 347 Capitalized deferred policy acquisition costs 8 2 1 1 12 Amortized deferred policy acquisition costs ( 5 ) ( 1 ) ( 1 ) ( 1 ) ( 8 ) Balance, end of period $ 241 $ 50 $ 8 $ 52 $ 351 (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 Page 24 Table of Contents 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 June 30, 2025 2024 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 486 ) $ ( 105 ) $ ( 381 ) $ ( 625 ) $ ( 134 ) $ ( 491 ) OCI before investment gains and losses, net, recognized in net income 16 3 13 ( 93 ) ( 21 ) ( 72 ) Investment gains and losses, net, recognized in net income 12 3 9 18 4 14 OCI 28 6 22 ( 75 ) ( 17 ) ( 58 ) AOCI, end of period $ ( 458 ) $ ( 99 ) $ ( 359 ) $ ( 700 ) $ ( 151 ) $ ( 549 ) Pension obligations: AOCI, beginning of period $ 74 $ 17 $ 57 $ 30 $ 8 $ 22 OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income ( 1 ) — ( 1 ) 1 — 1 OCI ( 1 ) — ( 1 ) 1 — 1 AOCI, end of period $ 73 $ 17 $ 56 $ 31 $ 8 $ 23 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 68 $ 15 $ 53 $ 34 $ 7 $ 27 OCI before investment gains and losses, net, recognized in net income 1 — 1 37 8 29 Investment gains and losses, net, recognized in net income — — — — — — OCI 1 — 1 37 8 29 AOCI, end of period $ 69 $ 15 $ 54 $ 71 $ 15 $ 56 Summary of AOCI: AOCI, beginning of period $ ( 344 ) $ ( 73 ) $ ( 271 ) $ ( 561 ) $ ( 119 ) $ ( 442 ) Investments OCI 28 6 22 ( 75 ) ( 17 ) ( 58 ) Pension obligations OCI ( 1 ) — ( 1 ) 1 — 1 Life policy reserves, reinsurance recoverable and other OCI 1 — 1 37 8 29 Total OCI 28 6 22 ( 37 ) ( 9 ) ( 28 ) AOCI, end of period $ ( 316 ) $ ( 67 ) $ ( 249 ) $ ( 598 ) $ ( 128 ) $ ( 470 ) Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 25 Table of Contents (Dollars in millions) Six months ended June 30, 2025 2024 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 553 ) $ ( 119 ) $ ( 434 ) $ ( 570 ) $ ( 123 ) $ ( 447 ) OCI before investment gains and losses, net, recognized in net income 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 Second-Quarter 2025 10-Q Page 26 Table of Contents NOTE 8 – Reinsurance Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions. The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Direct written premiums $ 2,672 $ 2,362 $ 5,060 $ 4,487 Assumed written premiums 196 236 499 475 Ceded written premiums ( 135 ) ( 139 ) ( 331 ) ( 255 ) Net written premiums $ 2,733 $ 2,459 $ 5,228 $ 4,707 Direct earned premiums $ 2,333 $ 2,015 $ 4,580 $ 3,949 Assumed earned premiums 162 155 352 307 Ceded earned premiums ( 98 ) ( 95 ) ( 271 ) ( 189 ) Earned premiums $ 2,397 $ 2,075 $ 4,661 $ 4,067 Direct incurred loss and loss expenses $ 1,508 $ 1,352 $ 3,657 $ 2,545 Assumed incurred loss and loss expenses 91 63 327 139 Ceded incurred loss and loss expenses ( 12 ) ( 3 ) ( 510 ) ( 2 ) Incurred loss and loss expenses $ 1,587 $ 1,412 $ 3,474 $ 2,682 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 27 Table of Contents Our life insurance company purchases reinsurance for protection of a portion of the risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles. The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Direct earned premiums $ 104 $ 101 $ 203 $ 200 Ceded earned premiums ( 21 ) ( 20 ) ( 40 ) ( 40 ) Earned premiums $ 83 $ 81 $ 163 $ 160 Direct contract holders' benefits incurred $ 104 $ 76 $ 198 $ 170 Ceded contract holders' benefits incurred ( 31 ) ( 8 ) ( 44 ) ( 23 ) Contract holders' benefits incurred $ 73 $ 68 $ 154 $ 147 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 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 Page 28 Table of Contents 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 June 30, Six months ended June 30, 2025 2024 2025 2024 Tax at statutory rate: $ 180 21.0 % $ 81 21.0 % $ 153 21.0 % $ 281 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds ( 6 ) ( 0.7 ) ( 6 ) ( 1.6 ) ( 11 ) ( 1.5 ) ( 11 ) ( 0.8 ) Dividend received exclusion ( 6 ) ( 0.7 ) ( 5 ) ( 1.3 ) ( 11 ) ( 1.5 ) ( 10 ) ( 0.7 ) Other 2 0.3 4 1.1 1 0.2 12 0.8 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. domestic operations and those related to Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both June 30, 2025, and December 31, 2024. Cincinnati Global 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 Second-Quarter 2025 10-Q Page 29 Table of Contents NOTE 10 – Net Income Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Numerator: Net income—basic and diluted $ 685 $ 312 $ 595 $ 1,067 Denominator: Basic weighted-average common shares outstanding 156.3 156.3 156.4 156.6 Effect of share-based awards: Stock options 0.9 0.7 1.0 0.7 Nonvested shares 0.6 0.5 0.4 0.4 Diluted weighted-average shares 157.8 157.5 157.8 157.7 Earnings per share: Basic $ 4.38 $ 1.99 $ 3.81 $ 6.82 Diluted $ 4.34 $ 1.98 $ 3.77 $ 6.77 Number of anti-dilutive share-based awards 0.3 1.2 0.4 1.3 The source of dilution of our common shares are certain equity-based awards. See our 2024 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 173, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three 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 June 30, Six months ended June 30, 2025 2024 2025 2024 Service cost $ 1 $ 2 $ 2 $ 3 Non-service (benefit) costs: Interest cost 3 3 7 6 Expected return on plan assets ( 5 ) ( 6 ) ( 11 ) ( 11 ) Amortization of actuarial (gain) loss and prior service cost ( 1 ) 1 ( 2 ) 1 Total non-service benefit ( 3 ) ( 2 ) ( 6 ) ( 4 ) Net periodic benefit $ ( 2 ) $ — $ ( 4 ) $ ( 1 ) See our 2024 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 167, for information on our retirement benefits. The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2025 and 2024. We made matching contributions totaling $ 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 Page 30 Table of Contents NOTE 12 – Commitments and Contingent Liabilities The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending third-party claims brought against insureds and as an insurer defending against coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows. The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of state or national classes. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates. On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial. NOTE 13 – Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker (CODM) is the chief executive officer who regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are: • Commercial lines insurance • Personal lines insurance • Excess and surplus lines insurance • Life insurance • Investments We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2024 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 176, for a description of revenue, income or loss before inco me taxes, including its components, an d identifiable assets for each of the five segments. Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 31 Table of Contents Segment information is summarized in the following table: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Commercial lines insurance Commercial lines insurance premiums $ 1,212 $ 1,107 $ 2,391 $ 2,189 Fee revenues — 1 2 2 Total commercial lines insurance revenues 1,212 1,108 2,393 2,191 Loss and loss expenses 767 746 1,502 1,465 Underwriting expenses 358 352 707 677 Total commercial lines income before income taxes 87 10 184 49 Personal lines insurance Personal lines insurance premiums 804 631 1,502 1,219 Fee revenues 2 1 3 2 Total personal lines insurance revenues 806 632 1,505 1,221 Loss and loss expenses 598 489 1,444 868 Underwriting expenses 222 185 432 358 Total personal lines loss before income taxes ( 14 ) ( 42 ) ( 371 ) ( 5 ) Excess and surplus lines insurance Excess and surplus lines insurance premiums 174 151 336 290 Fee revenues 1 1 2 2 Total excess and surplus lines insurance revenues 175 152 338 292 Loss and loss expenses 110 102 209 192 Underwriting expenses 49 42 93 80 Total excess and surplus lines income before income taxes 16 8 36 20 Life insurance Life insurance premiums 83 81 163 160 Fee revenues 2 2 3 3 Total life insurance revenues 85 83 166 163 Contract holders' benefits incurred 73 68 154 147 Investment interest credited to contract holders ( 31 ) ( 31 ) ( 63 ) ( 62 ) Underwriting expenses incurred 24 24 47 46 Total life insurance income before income taxes 19 22 28 32 Investments Investment income, net of expenses 285 242 565 487 Investment gains and losses, net 473 137 406 749 Total investment revenue 758 379 971 1,236 Investment interest credited to contract holders 31 31 63 62 Total investment income before income taxes 727 348 908 1,174 Reconciliation to condensed consolidated income before income taxes Total segment revenues 3,036 2,354 5,373 5,103 Other earned premiums 207 186 432 369 Other revenues 5 4 9 7 Total revenues 3,248 2,544 5,814 5,479 Total segment benefits and expenses 2,201 2,008 4,588 3,833 Other loss and loss expenses 112 75 319 157 Other underwriting expenses 56 52 132 110 Other benefits and expenses 24 23 48 40 Total benefits and expenses 2,393 2,158 5,087 4,140 Total income before income taxes $ 855 $ 386 $ 727 $ 1,339 Cincinnati Financial Corporation Second-Quarter 2025 10-Q Page 32 Table of Contents Identifiable assets by segment are summarized in the following table: (Dollars in millions) June 30, December 31, 2025 2024 Identifiable assets: Property casualty insurance $ 6,999 $ 5,927 Life insurance 1,716 1,658 Investments 29,057 27,887 Other 1,070 1,029 Total $ 38,842 $ 36,501