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) September 30, December 31, 2025 2024 Assets Investments Fixed maturities, at fair value (amortized cost: 2025—$ 17,847 ; 2024—$ 16,735 ) $ 17,630 $ 16,182 Equity securities, at fair value (cost: 2025—$ 4,154 ; 2024—$ 3,953 ) 12,547 11,185 Short-term investments, at fair value (amortized cost: 2025—$ 149 ; 2024—$ 298 ) 149 298 Other invested assets 773 713 Total investments 31,099 28,378 Cash and cash equivalents 1,460 983 Investment income receivable 233 222 Finance receivable 147 120 Premiums receivable 3,307 2,969 Reinsurance recoverable 679 523 Prepaid reinsurance premiums 100 70 Deferred policy acquisition costs 1,360 1,242 Land, building and equipment, net, for company use (accumulated depreciation: 2025—$ 361 ; 2024—$ 347 ) 213 214 Other assets 998 828 Separate accounts 971 952 Total assets $ 40,567 $ 36,501 Liabilities Insurance reserves Loss and loss expense reserves $ 11,260 $ 10,003 Life policy and investment contract reserves 3,003 2,960 Unearned premiums 5,423 4,813 Other liabilities 1,829 1,487 Deferred income tax 1,792 1,476 Note payable 25 25 Long-term debt and lease obligations 858 850 Separate accounts 971 952 Total liabilities 25,161 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 1,543 1,502 Retained earnings 16,179 14,869 Accumulated other comprehensive loss ( 84 ) ( 309 ) Treasury stock at cost (2025— 42.3 million shares and 2024— 41.9 million shares) ( 2,629 ) ( 2,524 ) Total shareholders' equity 15,406 13,935 Total liabilities and shareholders' equity $ 40,567 $ 36,501 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenues Earned premiums $ 2,567 $ 2,297 $ 7,391 $ 6,524 Investment income, net of expenses 295 258 860 745 Investment gains and losses, net 853 758 1,259 1,507 Fee revenues 5 4 15 13 Other revenues 6 3 15 10 Total revenues 3,726 3,320 9,540 8,799 Benefits and Expenses Insurance losses and contract holders' benefits 1,540 1,578 5,168 4,407 Underwriting, acquisition and insurance expenses 754 683 2,165 1,954 Interest expense 13 13 40 40 Other operating expenses 6 6 27 19 Total benefits and expenses 2,313 2,280 7,400 6,420 Income Before Income Taxes 1,413 1,040 2,140 2,379 Provision for Income Taxes Current 128 171 167 293 Deferred 163 49 256 199 Total provision for income taxes 291 220 423 492 Net Income $ 1,122 $ 820 $ 1,717 $ 1,887 Per Common Share Net income — basic $ 7.19 $ 5.25 $ 10.99 $ 12.06 Net income — diluted 7.11 5.20 10.88 11.97 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Net Income $ 1,122 $ 820 $ 1,717 $ 1,887 Other Comprehensive Income (Loss) Change in unrealized gains and losses on investments, net of tax of $ 51 , $ 106 , $ 71 and $ 78 , respectively 190 391 265 289 Amortization of pension actuarial loss (gain) and prior service cost, net of tax (benefit) of $ 0 , $ 0 , $ 0 and $ 0 , respectively — — ( 2 ) 1 Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $( 7 ), $( 20 ), $( 10 ) and $( 2 ), respectively ( 25 ) ( 71 ) ( 38 ) ( 5 ) Other comprehensive income 165 320 225 285 Comprehensive Income $ 1,287 $ 1,140 $ 1,942 $ 2,172 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 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 1,528 1,466 1,502 1,437 Share-based awards 2 4 ( 1 ) 4 Share-based compensation 11 10 36 36 Other 2 2 6 5 End of period 1,543 1,482 1,543 1,482 Retained Earnings Beginning of period 15,193 13,897 14,869 13,084 Net income 1,122 820 1,717 1,887 Dividends declared ( 136 ) ( 126 ) ( 407 ) ( 380 ) End of period 16,179 14,591 16,179 14,591 Accumulated Other Comprehensive Loss Beginning of period ( 249 ) ( 470 ) ( 309 ) ( 435 ) Other comprehensive income 165 320 225 285 End of period ( 84 ) ( 150 ) ( 84 ) ( 150 ) Treasury Stock Beginning of period ( 2,568 ) ( 2,513 ) ( 2,524 ) ( 2,385 ) Share-based awards — 3 10 15 Shares acquired - share repurchase authorization ( 60 ) — ( 102 ) ( 121 ) Shares acquired - share-based compensation plans ( 1 ) ( 7 ) ( 14 ) ( 26 ) Other — 1 1 1 End of period ( 2,629 ) ( 2,516 ) ( 2,629 ) ( 2,516 ) Total Shareholders' Equity $ 15,406 $ 13,804 $ 15,406 $ 13,804 (In millions, except per common share) Common Stock - Shares Outstanding Beginning of period 156.3 156.2 156.4 157.0 Share-based awards 0.1 0.1 0.4 0.5 Shares acquired - share repurchase authorization ( 0.4 ) — ( 0.7 ) ( 1.1 ) Shares acquired - share-based compensation plans — ( 0.1 ) ( 0.1 ) ( 0.2 ) Other — 0.1 — 0.1 End of period 156.0 156.3 156.0 156.3 Dividends declared per common share $ 0.87 $ 0.81 $ 2.61 $ 2.43 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Third-Quarter 2025 10-Q Page 6 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in millions) Nine months ended September 30, 2025 2024 Cash Flows From Operating Activities Net income $ 1,717 $ 1,887 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 126 115 Investment gains and losses, net ( 1,235 ) ( 1,499 ) Interest credited to contract holders 33 34 Deferred income tax expense 256 199 Changes in: Premiums and reinsurance receivable ( 524 ) ( 356 ) Deferred policy acquisition costs ( 118 ) ( 148 ) Other assets ( 57 ) ( 8 ) Loss and loss expense reserves 1,257 878 Life policy and investment contract reserves 34 54 Unearned premiums 610 755 Other liabilities 43 55 Current income tax receivable/payable 23 41 Net cash provided by operating activities 2,165 2,007 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 2,602 2,354 Sale of equity securities 201 1,332 Purchase of fixed maturities ( 3,546 ) ( 3,797 ) Purchase of equity securities ( 319 ) ( 282 ) Change in short-term investments, net 154 — Changes in finance receivables ( 30 ) ( 10 ) Investment in building and equipment ( 12 ) ( 18 ) Change in other invested assets, net ( 67 ) ( 68 ) Net cash used in investing activities ( 1,017 ) ( 489 ) Cash Flows From Financing Activities Payment of cash dividends to shareholders ( 392 ) ( 365 ) Shares acquired - share repurchase authorization ( 102 ) ( 121 ) Proceeds from stock options exercised 8 7 Contract holders' funds deposited 47 58 Contract holders' funds withdrawn ( 121 ) ( 152 ) Other ( 111 ) ( 100 ) Net cash used in financing activities ( 671 ) ( 673 ) Net change in cash and cash equivalents 477 845 Cash and cash equivalents at beginning of year 983 907 Cash and cash equivalents at end of period $ 1,460 $ 1,752 Supplemental Disclosures of Cash Flow Information: Interest paid $ 27 $ 27 Income taxes paid 99 221 Noncash Activities Equipment acquired under finance lease obligations $ 16 $ 13 Share-based compensation 29 41 Other assets and other liabilities 344 562 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Third-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 September 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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, cash flows or 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. ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . ASU 2025-06 modernizes the accounting for internal-use software costs by eliminating references to prescriptive and sequential software development stages and updating the cost capitalization criteria. The effective date of ASU 2025-06 is for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, 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. Cincinnati Financial Corporation Third-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 September 30, 2025 gains losses Fixed-maturity: Corporate $ 9,385 $ 171 $ 193 $ 9,363 States, municipalities and political subdivisions 5,043 24 221 4,846 Government-sponsored enterprises 2,348 3 5 2,346 Asset-backed 776 11 9 778 United States government 272 3 1 274 Foreign government 23 — — 23 Total fixed-maturity 17,847 212 429 17,630 Short-term 149 — — 149 Total fixed-maturity and short-term investments $ 17,996 $ 212 $ 429 $ 17,779 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 September 30, 2025, is primarily due to a decrease in U.S. Treasury yields and a slight tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at September 30, 2025 and December 31, 2024, respectively. Cincinnati Financial Corporation Third-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 September 30, 2025 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity: Corporate $ 793 $ 14 $ 2,887 $ 179 $ 3,680 $ 193 States, municipalities and political subdivisions 873 20 2,019 201 2,892 221 Government-sponsored enterprises 922 3 488 2 1,410 5 Asset-backed 173 4 91 5 264 9 United States government — — 27 1 27 1 Foreign government 1 — — — 1 — Total fixed-maturity $ 2,762 $ 41 $ 5,512 $ 388 $ 8,274 $ 429 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 September 30, 2025 Maturity dates: Due in one year or less $ 1,008 $ 1,001 5.6 % Due after one year through five years 3,667 3,679 20.7 Due after five years through ten years 4,084 4,109 23.1 Due after ten years 9,237 8,990 50.6 Total $ 17,996 $ 17,779 100.0 % 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 Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Investment income: Interest $ 227 $ 187 $ 651 $ 529 Dividends 69 68 206 209 Other 4 7 16 18 Total 300 262 873 756 Less investment expenses 5 4 13 11 Total $ 295 $ 258 $ 860 $ 745 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ ( 9 ) $ 24 $ ( 5 ) $ 146 Unrealized gains and losses on securities still held, net 855 817 1,259 1,446 Subtotal 846 841 1,254 1,592 Fixed-maturity securities: Gross realized gains 2 1 3 5 Gross realized losses ( 1 ) ( 87 ) ( 1 ) ( 94 ) Change in allowance for credit losses, net — — ( 15 ) ( 25 ) Subtotal 1 ( 86 ) ( 13 ) ( 114 ) Other 6 3 18 29 Total $ 853 $ 758 $ 1,259 $ 1,507 The fair value of our equity portfolio was $ 12.547 billion and $ 11.185 billion at September 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 $ 940 million and $ 891 million, which were 7.7 % and 8.2 % of our publicly traded common equities portfolio and 3.1 % and 3.2 % of the total investment portfolio at September 30, 2025, and December 31, 2024, respectively. The allowance for credit losses on fixed-maturity securities was $ 41 million and $ 33 million at September 30, 2025, and December 31, 2024, respectively. Reductions in the allowance for credit losses for securities sold were $ 6 million and $ 7 million for the three and nine months ended September 30, 2025. There were 2,831 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $ 429 million and $ 631 million at September 30, 2025, and December 31, 2024, respectively. Of those totals, 17 and 19 fixed-maturity securities had fair values below 70 % of amortized cost at September 30, 2025, and December 31, 2024, respectively. Cincinnati Financial Corporation Third-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 September 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 September 30, 2025 Fixed maturities, available for sale: Corporate $ — $ 9,363 $ — $ 9,363 States, municipalities and political subdivisions — 4,846 — 4,846 Government-sponsored enterprises — 2,346 — 2,346 Asset-backed — 778 — 778 United States government 274 — — 274 Foreign government — 23 — 23 Subtotal 274 17,356 — 17,630 Common equities 12,209 — — 12,209 Nonredeemable preferred equities — 338 — 338 Separate accounts taxable fixed maturities 35 877 — 912 Short-term investments 149 — — 149 Top Hat savings plan mutual funds and common equity (included in Other assets) 100 — — 100 Total $ 12,767 $ 18,571 $ — $ 31,338 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 Third-Quarter 2025 10-Q Page 12 Table of Contents We also held Level 1 cash and cash equivalents of $ 1.460 billion and $ 983 million at September 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 September 30, December 31, September 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 September 30, 2025 Note payable $ — $ 25 $ — $ 25 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 419 — 419 6.125 % senior notes, due 2034 — 404 — 404 Total $ — $ 877 $ — $ 877 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 Third-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 September 30, 2025 Life policy loans $ — $ — $ 42 $ 42 Deferred annuities $ — $ — $ 541 $ 541 Structured settlements — 125 — 125 Total $ — $ 125 $ 541 $ 666 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 $ 37 million and $ 36 million at September 30, 2025, and December 31, 2024, respectively. Recorded reserves for the deferred annuities were $ 565 million and $ 595 million at September 30, 2025, and December 31, 2024, respectively. Recorded reserves for the structured settlements were $ 112 million and $ 116 million at September 30, 2025, and December 31, 2024, respectively. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Gross loss and loss expense reserves, beginning of period $ 11,001 $ 9,494 $ 9,937 $ 8,975 Less reinsurance recoverable 504 303 269 362 Net loss and loss expense reserves, beginning of period 10,497 9,191 9,668 8,613 Net incurred loss and loss expenses related to: Current accident year 1,486 1,570 5,114 4,392 Prior accident years ( 22 ) ( 71 ) ( 176 ) ( 211 ) Total incurred 1,464 1,499 4,938 4,181 Net paid loss and loss expenses related to: Current accident year 616 574 1,800 1,262 Prior accident years 601 540 2,062 1,956 Total paid 1,217 1,114 3,862 3,218 Net loss and loss expense reserves, end of period 10,744 9,576 10,744 9,576 Plus reinsurance recoverable 451 290 451 290 Gross loss and loss expense reserves, end of period $ 11,195 $ 9,866 $ 11,195 $ 9,866 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 $ 65 million and $ 62 million at September 30, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves. We experienced $ 22 million of favorable development on prior accident years, including $ 18 million of favorable development in commercial lines, $ 14 million of unfavorable development in personal lines and $ 4 million of favorable development in excess and surplus lines for the three months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $ 38 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 $ 24 million for the commercial casualty line and $ 10 million for the commercial auto line. We experienced $ 176 million of favorable development on prior accident years, including $ 103 million of favorable development in commercial lines, $ 24 million of favorable development in personal lines and $ 18 million of favorable development in excess and surplus lines for the nine months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $ 113 million for the commercial property line and $ 45 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 $ 35 million for the commercial auto line and $ 21 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 47 million for the homeowner line. Cincinnati Financial Corporation Third-Quarter 2025 10-Q Page 15 Table of Contents We experienced $ 71 million of favorable development on prior accident years, including $ 50 million of favorable development in commercial lines, less than $ 1 million of unfavorable development in personal lines and $ 5 million of unfavorable development in excess and surplus lines for the three months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $ 33 million for the commercial property line and $ 16 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. We experienced $ 211 million of favorable development on prior accident years, including $ 117 million of favorable development in commercial lines, $ 27 million of favorable development in personal lines and $ 5 million of unfavorable development in excess and surplus lines for the nine months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $ 76 million for the commercial property line, $ 56 million for the workers' compensation line and $ 10 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $ 27 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 37 million for the homeowner line. Cincinnati Financial Corporation Third-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) September 30, 2025 December 31, 2024 Life policy reserves: Term $ 1,099 $ 1,051 Whole life 430 405 Other 99 98 Subtotal 1,628 1,554 Investment contract reserves: Deferred annuities 565 595 Universal life 588 586 Structured settlements 112 116 Other 110 109 Subtotal 1,375 1,406 Total life policy and investment contract reserves $ 3,003 $ 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 Third-Quarter 2025 10-Q Page 17 Table of Contents (Dollars in millions) Three months ended September 30, 2025 2024 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,678 $ 220 $ 1,620 $ 215 Beginning balance at original discount rate 1,731 226 1,701 225 Effect of changes in cash flow assumptions — — ( 1 ) ( 1 ) Effect of actual variances from expected experience ( 11 ) 1 ( 4 ) — Adjusted beginning of period balance 1,720 227 1,696 224 Issuances 44 7 34 9 Interest accrual 19 2 20 2 Net premiums collected ( 45 ) ( 8 ) ( 45 ) ( 8 ) Ending balance at original discount rate 1,738 228 1,705 227 Effect of changes in discount rate assumptions ( 27 ) ( 3 ) 3 — Balance, end of period 1,711 225 1,708 227 Present value of expected future policy benefits: Balance, beginning of period 2,720 634 2,634 619 Beginning balance at original discount rate 2,821 651 2,772 636 Effect of changes in cash flow assumptions — ( 1 ) ( 1 ) ( 2 ) Effect of actual variances from expected experience ( 16 ) 1 ( 7 ) ( 1 ) Adjusted beginning of period balance 2,805 651 2,764 633 Issuances 44 7 34 8 Interest accrual 32 8 32 8 Benefits paid ( 37 ) ( 9 ) ( 48 ) ( 8 ) Ending balance at original discount rate 2,844 657 2,782 641 Effect of changes in discount rate assumptions ( 52 ) ( 3 ) 12 27 Balance, end of period 2,792 654 2,794 668 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,081 429 1,086 441 Impact of flooring at cohort level 18 1 22 — Net life policy reserves 1,099 430 1,108 441 Less reinsurance recoverable at original discount rate ( 67 ) ( 25 ) ( 92 ) ( 25 ) Less effect of discount rate assumption changes on reinsurance recoverable ( 8 ) ( 4 ) ( 10 ) ( 5 ) Net life policy reserves, after reinsurance recoverable $ 1,024 $ 401 $ 1,006 $ 411 Weighted-average duration of the net life policy reserves in years 11 15 11 16 Cincinnati Financial Corporation Third-Quarter 2025 10-Q Page 18 Table of Contents (Dollars in millions) Nine months ended September 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 ) — ( 13 ) — Effect of actual variances from expected experience ( 14 ) — ( 23 ) ( 3 ) Adjusted beginning of period balance 1,701 228 1,676 222 Issuances 120 14 110 20 Interest accrual 57 7 56 7 Net premiums collected ( 140 ) ( 21 ) ( 137 ) ( 22 ) Ending balance at original discount rate 1,738 228 1,705 227 Effect of changes in discount rate assumptions ( 27 ) ( 3 ) 3 — Balance, end of period 1,711 225 1,708 227 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 ) ( 1 ) ( 30 ) — Effect of actual variances from expected experience ( 22 ) — ( 35 ) ( 5 ) Adjusted beginning of period balance 2,778 645 2,700 623 Issuances 120 14 110 20 Interest accrual 96 25 94 24 Benefits paid ( 150 ) ( 27 ) ( 122 ) ( 26 ) Ending balance at original discount rate 2,844 657 2,782 641 Effect of changes in discount rate assumptions ( 52 ) ( 3 ) 12 27 Balance, end of period 2,792 654 2,794 668 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,081 429 1,086 441 Impact of flooring at cohort level 18 1 22 — Net life policy reserves 1,099 430 1,108 441 Less reinsurance recoverable at original discount rate ( 67 ) ( 25 ) ( 92 ) ( 25 ) Less effect of discount rate assumption changes on reinsurance recoverable ( 8 ) ( 4 ) ( 10 ) ( 5 ) Net life policy reserves, after reinsurance recoverable $ 1,024 $ 401 $ 1,006 $ 411 Weighted-average duration of the net life policy reserves in years 11 15 11 16 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $ 2 million and $ 3 million at September 30, 2025 and 2024, respectively. Cincinnati Financial Corporation Third-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 September 30, 2025 2024 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,996 $ 2,792 $ 4,840 $ 2,794 Expected future gross premiums 4,675 2,764 4,524 2,736 Whole life Expected future benefit payments $ 1,729 $ 654 $ 1,702 $ 668 Expected future gross premiums 698 427 687 428 The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies: (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Gross premiums Term $ 76 $ 72 $ 227 $ 221 Whole life 14 15 41 41 Total $ 90 $ 87 $ 268 $ 262 Interest accretion Term $ 13 $ 12 $ 39 $ 38 Whole life 6 6 18 17 Total $ 19 $ 18 $ 57 $ 55 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the nine months ended September 30, 2025, and 2024 . The following table shows the weighted-average interest rate for our term and whole life products : At September 30, 2025 2024 Term Interest accretion rate 5.22 % 5.21 % Current discount rate 4.78 4.53 Whole life Interest accretion rate 5.85 % 5.89 % Current discount rate 5.51 5.14 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. Cincinnati Financial Corporation Third-Quarter 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 September 30, Nine months ended September 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 $ 575 $ 454 $ 618 $ 456 $ 595 $ 456 $ 656 $ 457 Premiums received 7 8 10 9 19 27 29 28 Policy charges — ( 10 ) — ( 10 ) — ( 30 ) — ( 30 ) Surrenders and withdrawals ( 15 ) ( 3 ) ( 25 ) ( 2 ) ( 50 ) ( 9 ) ( 88 ) ( 9 ) Benefit payments ( 7 ) ( 1 ) ( 4 ) ( 1 ) ( 15 ) ( 6 ) ( 9 ) ( 4 ) Interest credited 5 5 6 4 16 15 17 14 Balance, end of period $ 565 $ 453 $ 605 $ 456 $ 565 $ 453 $ 605 $ 456 Weighted average crediting rate 3.71 % 4.43 % 3.64 % 4.36 % 3.71 % 4.43 % 3.64 % 4.36 % Net amount at risk $ — $ 3,719 $ — $ 3,865 $ — $ 3,719 $ — $ 3,865 Cash surrender value 559 426 599 426 559 426 599 426 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 September 30, 2025 Deferred annuity 1.00-3.00% $ 63 $ 205 $ 14 $ 237 $ 519 3.01-4.00% 46 — — — 46 Total $ 109 $ 205 $ 14 $ 237 $ 565 Universal life 1.00-3.00% $ — $ 54 $ 57 $ 15 $ 126 3.01-4.00% 51 — 4 — 55 Greater than 4.00% 272 — — — 272 Total $ 323 $ 54 $ 61 $ 15 $ 453 At September 30, 2024 Deferred annuity 1.00-3.00% $ 4 $ 309 $ 14 $ 231 $ 558 3.01-4.00% 47 — — — 47 Total $ 51 $ 309 $ 14 $ 231 $ 605 Universal life 1.00-3.00% $ — $ 55 $ 64 $ 5 $ 124 3.01-4.00% 50 — 4 — 54 Greater than 4.00% 278 — — — 278 Total $ 328 $ 55 $ 68 $ 5 $ 456 Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Balance, beginning of period $ 132 $ 128 $ 130 $ 128 Balance, beginning of period before shadow reserve adjustments 133 130 131 129 Effect of changes in cash flow assumptions ( 1 ) — ( 1 ) ( 2 ) Effect of actual variances from expected experience 1 — 3 — Adjusted beginning of period balance 133 130 133 127 Interest accrual 1 1 3 3 Excess death benefits ( 2 ) ( 2 ) ( 11 ) ( 5 ) Attributed assessments 3 3 9 9 Effect of changes in interest rate assumptions 1 3 2 1 Balance, end of period before shadow reserve adjustments 136 135 136 135 Shadow reserve adjustments ( 1 ) ( 1 ) ( 1 ) ( 1 ) Balance, end of period 135 134 135 134 Less reinsurance recoverable, end of period 6 6 6 6 Net other additional liability, after reinsurance recoverable $ 141 $ 140 $ 141 $ 140 Weighted-average duration of the other additional liability in years 26 29 26 29 The following table shows balances and changes in separate accounts liability balances during the period: (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Balance, beginning of period $ 991 $ 948 $ 952 $ 925 Interest credited before policy charges 12 10 34 31 Benefit payments ( 1 ) — ( 9 ) ( 3 ) Other ( 31 ) ( 15 ) ( 6 ) ( 10 ) Balance, end of period $ 971 $ 943 $ 971 $ 943 Cash surrender value $ 969 $ 941 $ 969 $ 941 Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 1,005 $ 878 $ 886 $ 749 Capitalized deferred policy acquisition costs 458 436 1,456 1,318 Amortized deferred policy acquisition costs ( 469 ) ( 427 ) ( 1,348 ) ( 1,180 ) Deferred policy acquisition costs asset, end of period $ 994 $ 887 $ 994 $ 887 Life: Deferred policy acquisition costs asset, beginning of period $ 362 $ 351 $ 356 $ 344 Capitalized deferred policy acquisition costs 11 11 33 33 Amortized deferred policy acquisition costs ( 7 ) ( 8 ) ( 23 ) ( 23 ) Deferred policy acquisition costs asset, end of period $ 366 $ 354 $ 366 $ 354 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,367 $ 1,229 $ 1,242 $ 1,093 Capitalized deferred policy acquisition costs 469 447 1,489 1,351 Amortized deferred policy acquisition costs ( 476 ) ( 435 ) ( 1,371 ) ( 1,203 ) Deferred policy acquisition costs asset, end of period $ 1,360 $ 1,241 $ 1,360 $ 1,241 Cincinnati Financial Corporation Third-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 September 30, 2025 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 251 $ 53 $ 7 $ 51 $ 362 Capitalized deferred policy acquisition costs 9 1 1 — 11 Amortized deferred policy acquisition costs ( 6 ) — — ( 1 ) ( 7 ) Balance, end of period $ 254 $ 54 $ 8 $ 50 $ 366 Three months ended September 30, 2024 Balance, beginning of period $ 241 $ 50 $ 8 $ 52 $ 351 Capitalized deferred policy acquisition costs 9 1 — 1 11 Amortized deferred policy acquisition costs ( 7 ) — — ( 1 ) ( 8 ) Balance, end of period $ 243 $ 51 $ 8 $ 52 $ 354 (Dollars in millions) Nine months ended September 30, 2025 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 245 $ 52 $ 8 $ 51 $ 356 Capitalized deferred policy acquisition costs 27 4 1 1 33 Amortized deferred policy acquisition costs ( 18 ) ( 2 ) ( 1 ) ( 2 ) ( 23 ) Balance, end of period $ 254 $ 54 $ 8 $ 50 $ 366 Nine months ended September 30, 2024 Balance, beginning of period $ 236 $ 48 $ 8 $ 52 $ 344 Capitalized deferred policy acquisition costs 25 5 1 2 33 Amortized deferred policy acquisition costs ( 18 ) ( 2 ) ( 1 ) ( 2 ) ( 23 ) Balance, end of period $ 243 $ 51 $ 8 $ 52 $ 354 Cincinnati Financial Corporation Third-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 September 30, 2025 2024 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 458 ) $ ( 99 ) $ ( 359 ) $ ( 700 ) $ ( 151 ) $ ( 549 ) OCI before investment gains and losses, net, recognized in net income 242 51 191 411 88 323 Investment gains and losses, net, recognized in net income ( 1 ) — ( 1 ) 86 18 68 OCI 241 51 190 497 106 391 AOCI, end of period $ ( 217 ) $ ( 48 ) $ ( 169 ) $ ( 203 ) $ ( 45 ) $ ( 158 ) Pension obligations: AOCI, beginning of period $ 73 $ 17 $ 56 $ 31 $ 8 $ 23 OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income — — — — — — OCI — — — — — — AOCI, end of period $ 73 $ 17 $ 56 $ 31 $ 8 $ 23 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 69 $ 15 $ 54 $ 71 $ 15 $ 56 OCI before investment gains and losses, net, recognized in net income ( 32 ) ( 7 ) ( 25 ) ( 91 ) ( 20 ) ( 71 ) Investment gains and losses, net, recognized in net income — — — — — — OCI ( 32 ) ( 7 ) ( 25 ) ( 91 ) ( 20 ) ( 71 ) AOCI, end of period $ 37 $ 8 $ 29 $ ( 20 ) $ ( 5 ) $ ( 15 ) Summary of AOCI: AOCI, beginning of period $ ( 316 ) $ ( 67 ) $ ( 249 ) $ ( 598 ) $ ( 128 ) $ ( 470 ) Investments OCI 241 51 190 497 106 391 Pension obligations OCI — — — — — — Life policy reserves, reinsurance recoverable and other OCI ( 32 ) ( 7 ) ( 25 ) ( 91 ) ( 20 ) ( 71 ) Total OCI 209 44 165 406 86 320 AOCI, end of period $ ( 107 ) $ ( 23 ) $ ( 84 ) $ ( 192 ) $ ( 42 ) $ ( 150 ) Cincinnati Financial Corporation Third-Quarter 2025 10-Q Page 25 Table of Contents (Dollars in millions) Nine months ended September 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 323 68 255 253 54 199 Investment gains and losses, net, recognized in net income 13 3 10 114 24 90 OCI 336 71 265 367 78 289 AOCI, end of period $ ( 217 ) $ ( 48 ) $ ( 169 ) $ ( 203 ) $ ( 45 ) $ ( 158 ) 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 ( 48 ) ( 10 ) ( 38 ) ( 7 ) ( 2 ) ( 5 ) Investment gains and losses, net, recognized in net income — — — — — — OCI ( 48 ) ( 10 ) ( 38 ) ( 7 ) ( 2 ) ( 5 ) AOCI, end of period $ 37 $ 8 $ 29 $ ( 20 ) $ ( 5 ) $ ( 15 ) Summary of AOCI: AOCI, beginning of period $ ( 393 ) $ ( 84 ) $ ( 309 ) $ ( 553 ) $ ( 118 ) $ ( 435 ) Investments OCI 336 71 265 367 78 289 Pension obligations OCI ( 2 ) — ( 2 ) 1 — 1 Life policy reserves, reinsurance recoverable and other OCI ( 48 ) ( 10 ) ( 38 ) ( 7 ) ( 2 ) ( 5 ) Total OCI 286 61 225 361 76 285 AOCI, end of period $ ( 107 ) $ ( 23 ) $ ( 84 ) $ ( 192 ) $ ( 42 ) $ ( 150 ) 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 Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Direct written premiums $ 2,482 $ 2,285 $ 7,542 $ 6,772 Assumed written premiums 98 102 597 577 Ceded written premiums ( 87 ) ( 94 ) ( 418 ) ( 349 ) Net written premiums $ 2,493 $ 2,293 $ 7,721 $ 7,000 Direct earned premiums $ 2,440 $ 2,179 $ 7,020 $ 6,128 Assumed earned premiums 162 159 514 466 Ceded earned premiums ( 118 ) ( 121 ) ( 389 ) ( 310 ) Earned premiums $ 2,484 $ 2,217 $ 7,145 $ 6,284 Direct incurred loss and loss expenses $ 1,408 $ 1,415 $ 5,065 $ 3,960 Assumed incurred loss and loss expenses 78 103 405 242 Ceded incurred loss and loss expenses ( 22 ) ( 19 ) ( 532 ) ( 21 ) Incurred loss and loss expenses $ 1,464 $ 1,499 $ 4,938 $ 4,181 Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Direct earned premiums $ 104 $ 101 $ 307 $ 301 Ceded earned premiums ( 21 ) ( 21 ) ( 61 ) ( 61 ) Earned premiums $ 83 $ 80 $ 246 $ 240 Direct contract holders' benefits incurred $ 91 $ 92 $ 289 $ 262 Ceded contract holders' benefits incurred ( 15 ) ( 13 ) ( 59 ) ( 36 ) Contract holders' benefits incurred $ 76 $ 79 $ 230 $ 226 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 receivable was $ 18 million at both September 30, 2025, and December 31, 2024. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at September 30, 2025, and December 31, 2024. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Tax at statutory rate: $ 296 21.0 % $ 219 21.0 % $ 449 21.0 % $ 500 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds ( 6 ) ( 0.4 ) ( 5 ) ( 0.5 ) ( 17 ) ( 0.8 ) ( 16 ) ( 0.7 ) Dividend received exclusion ( 5 ) ( 0.4 ) ( 6 ) ( 0.6 ) ( 16 ) ( 0.7 ) ( 16 ) ( 0.7 ) Other 6 0.4 12 1.3 7 0.3 24 1.1 Provision for income taxes $ 291 20.6 % $ 220 21.2 % $ 423 19.8 % $ 492 20.7 % 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. Applicable impacts of the Tax Act have been reflected in the tax provision at September 30, 2025, and do not have a material impact on our consolidated 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 September 30, 2025, and December 31, 2024. Cincinnati Global Cincinnati Global had no operating loss carryforwards in the United States and $ 50 million and $ 78 million in the United Kingdom at September 30, 2025, and December 31, 2024, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group. Cincinnati Financial Corporation Third-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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Numerator: Net income—basic and diluted $ 1,122 $ 820 $ 1,717 $ 1,887 Denominator: Basic weighted-average common shares outstanding 156.1 156.2 156.3 156.5 Effect of share-based awards: Stock options 1.1 0.9 1.0 0.7 Nonvested shares 0.6 0.6 0.5 0.5 Diluted weighted-average shares 157.8 157.7 157.8 157.7 Earnings per share: Basic $ 7.19 $ 5.25 $ 10.99 $ 12.06 Diluted $ 7.11 $ 5.20 $ 10.88 $ 11.97 Number of anti-dilutive share-based awards 0.3 0.6 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 nine months ended September 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 September 30, Nine months ended September 30, 2025 2024 2025 2024 Service cost $ 2 $ 1 $ 4 $ 4 Non-service (benefit) costs: Interest cost 3 4 10 10 Expected return on plan assets ( 6 ) ( 5 ) ( 17 ) ( 16 ) Amortization of actuarial (gain) loss and prior service cost — — ( 2 ) 1 Total non-service benefit ( 3 ) ( 1 ) ( 9 ) ( 5 ) Net periodic benefit $ ( 1 ) $ — $ ( 5 ) $ ( 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 $ 7 million to our 401(k) and Top Hat savings plans during both the third quarter of 2025 and 2024 and contributions of $ 26 million and $ 23 million for the first nine months of 2025 and 2024, respectively. We made no contributions to our qualified pension plan during the first nine months of 2025. Cincinnati Financial Corporation Third-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 Third-Quarter 2025 10-Q Page 31 Table of Contents Segment information is summarized in the following table: (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Commercial lines insurance Commercial lines insurance premiums $ 1,229 $ 1,137 $ 3,620 $ 3,326 Fee revenues 2 1 4 3 Total commercial lines insurance revenues 1,231 1,138 3,624 3,329 Loss and loss expenses 747 706 2,249 2,171 Underwriting expenses 373 351 1,080 1,028 Total commercial lines income before income taxes 111 81 295 130 Personal lines insurance Personal lines insurance premiums 838 678 2,340 1,897 Fee revenues 1 2 4 4 Total personal lines insurance revenues 839 680 2,344 1,901 Loss and loss expenses 507 553 1,951 1,421 Underwriting expenses 233 196 665 554 Total personal lines income (loss) before income taxes 99 ( 69 ) ( 272 ) ( 74 ) Excess and surplus lines insurance Excess and surplus lines insurance premiums 174 157 510 447 Fee revenues 1 — 3 2 Total excess and surplus lines insurance revenues 175 157 513 449 Loss and loss expenses 108 107 317 299 Underwriting expenses 48 42 141 122 Total excess and surplus lines income before income taxes 19 8 55 28 Life insurance Life insurance premiums 83 80 246 240 Fee revenues 1 1 4 4 Total life insurance revenues 84 81 250 244 Contract holders' benefits incurred 76 79 230 226 Investment interest credited to contract holders ( 32 ) ( 32 ) ( 95 ) ( 94 ) Underwriting expenses incurred 23 24 70 70 Total life insurance income before income taxes 17 10 45 42 Investments Investment income, net of expenses 295 258 860 745 Investment gains and losses, net 853 758 1,259 1,507 Total investment revenue 1,148 1,016 2,119 2,252 Investment interest credited to contract holders 32 32 95 94 Total investment income before income taxes 1,116 984 2,024 2,158 Reconciliation to condensed consolidated income before income taxes Total segment revenues 3,477 3,072 8,850 8,175 Other earned premiums 243 245 675 614 Other revenues 6 3 15 10 Total revenues 3,726 3,320 9,540 8,799 Total segment benefits and expenses 2,115 2,058 6,703 5,891 Other loss and loss expenses 102 133 421 290 Other underwriting expenses 77 70 209 180 Other benefits and expenses 19 19 67 59 Total benefits and expenses 2,313 2,280 7,400 6,420 Total income before income taxes $ 1,413 $ 1,040 $ 2,140 $ 2,379 Cincinnati Financial Corporation Third-Quarter 2025 10-Q Page 32 Table of Contents Identifiable assets by segment are summarized in the following table: (Dollars in millions) September 30, December 31, 2025 2024 Identifiable assets: Property casualty insurance $ 7,078 $ 5,927 Life insurance 1,689 1,658 Investments 30,575 27,887 Other 1,225 1,029 Total $ 40,567 $ 36,501