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, 2026 2025 Assets Investments Fixed maturities, at fair value (amortized cost: 2026—$ 19,280 ; 2025—$ 18,304 ) $ 18,954 $ 18,123 Equity securities, at fair value (cost: 2026—$ 4,287 ; 2025—$ 4,155 ) 13,194 12,694 Short-term investments, at fair value (amortized cost: 2026—$ 143 ; 2025—$ 148 ) 142 148 Other invested assets 863 818 Total investments 33,153 31,783 Cash and cash equivalents 1,750 1,431 Investment income receivable 252 235 Finance receivable 143 146 Premiums receivable 3,546 3,142 Reinsurance recoverable 633 655 Prepaid reinsurance premiums 124 71 Deferred policy acquisition costs 1,442 1,344 Land, building and equipment, net, for company use (accumulated depreciation: 2026—$ 376 ; 2025—$ 367 ) 211 219 Other assets 981 995 Separate accounts 996 981 Total assets $ 43,231 $ 41,002 Liabilities Insurance reserves Loss and loss expense reserves $ 12,479 $ 11,507 Life policy and investment contract reserves 2,986 2,992 Unearned premiums 5,724 5,254 Other liabilities 1,638 1,638 Deferred income tax 1,861 1,833 Note payable 17 25 Long-term debt and lease obligations 859 861 Separate accounts 996 981 Total liabilities 26,560 25,091 Commitments and contingent liabilities (Note 12) Shareholders' Equity Common stock, par value—$ 2 per share; (authorized: 2026 and 2025— 500 million shares; issued: 2026 and 2025— 198.3 million shares) 397 397 Paid-in capital 1,582 1,561 Retained earnings 17,958 16,719 Accumulated other comprehensive loss ( 135 ) ( 34 ) Treasury stock at cost (2026— 44.9 million shares and 2025— 42.9 million shares) ( 3,131 ) ( 2,732 ) Total shareholders' equity 16,671 15,911 Total liabilities and shareholders' equity $ 43,231 $ 41,002 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Revenues Earned premiums $ 2,635 $ 2,480 $ 5,239 $ 4,824 Investment income, net of expenses 319 285 637 565 Investment gains and losses, net 1,308 473 1,238 406 Fee revenues 5 5 10 10 Other revenues 7 5 13 9 Total revenues 4,274 3,248 7,137 5,814 Benefits and Expenses Insurance losses and contract holders' benefits 1,887 1,660 3,638 3,628 Underwriting, acquisition and insurance expenses 786 709 1,550 1,411 Interest expense 14 14 27 27 Other operating expenses 11 10 20 21 Total benefits and expenses 2,698 2,393 5,235 5,087 Income Before Income Taxes 1,576 855 1,902 727 Provision for Income Taxes Current 182 81 316 39 Deferred 139 89 57 93 Total provision for income taxes 321 170 373 132 Net Income $ 1,255 $ 685 $ 1,529 $ 595 Per Common Share Net income — basic $ 8.14 $ 4.38 $ 9.88 $ 3.81 Net income — diluted 8.05 4.34 9.78 3.77 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Net Income $ 1,255 $ 685 $ 1,529 $ 595 Other Comprehensive Income (loss) Change in unrealized gains and losses on investments, net of tax (benefit) of $ 16 , $ 6 , $( 30 ) and $ 20 , respectively 58 22 ( 116 ) 75 Amortization of pension actuarial gain and prior service cost, net of tax (benefit) of $ 0 , $ 0 , $ 0 and $ 0 , respectively ( 1 ) ( 1 ) ( 2 ) ( 2 ) Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $( 3 ), $ 0 , $ 3 and $( 3 ), respectively ( 7 ) 1 17 ( 13 ) Other comprehensive income (loss) 50 22 ( 101 ) 60 Comprehensive Income $ 1,305 $ 707 $ 1,428 $ 655 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 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 1,561 1,511 1,561 1,502 Share-based awards 7 4 ( 10 ) ( 3 ) Share-based compensation 12 10 27 25 Other 2 3 4 4 End of period 1,582 1,528 1,582 1,528 Retained Earnings Beginning of period 16,848 14,644 16,719 14,869 Net income 1,255 685 1,529 595 Dividends declared ( 145 ) ( 136 ) ( 290 ) ( 271 ) End of period 17,958 15,193 17,958 15,193 Accumulated Other Comprehensive Loss Beginning of period ( 185 ) ( 271 ) ( 34 ) ( 309 ) Other comprehensive income (loss) 50 22 ( 101 ) 60 End of period ( 135 ) ( 249 ) ( 135 ) ( 249 ) Treasury Stock Beginning of period ( 2,907 ) ( 2,563 ) ( 2,732 ) ( 2,524 ) Share-based awards 6 4 16 10 Shares acquired - share repurchase authorization ( 215 ) — ( 394 ) ( 42 ) Shares acquired - share-based compensation plans ( 13 ) ( 10 ) ( 19 ) ( 13 ) Other ( 2 ) 1 ( 2 ) 1 End of period ( 3,131 ) ( 2,568 ) ( 3,131 ) ( 2,568 ) Total Shareholders' Equity $ 16,671 $ 14,301 $ 16,671 $ 14,301 (In millions, except per common share) Common Stock - Shares Outstanding Beginning of period 154.6 156.3 155.4 156.4 Share-based awards 0.2 0.1 0.5 0.3 Shares acquired - share repurchase authorization ( 1.3 ) — ( 2.4 ) ( 0.3 ) Shares acquired - share-based compensation plans ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.1 ) End of period 153.4 156.3 153.4 156.3 Dividends declared per common share $ 0.94 $ 0.87 $ 1.88 $ 1.74 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 Cash Flows From Operating Activities Net income $ 1,529 $ 595 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 82 93 Investment gains and losses, net ( 1,231 ) ( 392 ) Interest credited to contract holders 21 22 Deferred income tax expense 57 93 Changes in: Premiums and reinsurance receivable ( 435 ) ( 737 ) Deferred policy acquisition costs ( 98 ) ( 125 ) Other assets ( 20 ) ( 65 ) Loss and loss expense reserves 972 1,069 Life policy and investment contract reserves 40 8 Unearned premiums 470 631 Other liabilities ( 62 ) ( 54 ) Current income tax receivable/payable 31 ( 87 ) Net cash provided by operating activities 1,356 1,051 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 1,644 1,348 Sale of equity securities 1,195 34 Purchase of fixed maturities ( 2,584 ) ( 2,060 ) Purchase of equity securities ( 463 ) ( 95 ) Change in short-term investments, net 9 201 Changes in finance receivables 1 ( 3 ) Investment in building and equipment ( 4 ) ( 7 ) Change in other invested assets, net ( 48 ) ( 32 ) Net cash used in investing activities ( 250 ) ( 614 ) Cash Flows From Financing Activities Payment of cash dividends to shareholders ( 276 ) ( 258 ) Shares acquired - share repurchase authorization ( 395 ) ( 42 ) Changes in note payable ( 8 ) — Proceeds from stock options exercised 10 6 Contract holders' funds deposited 33 31 Contract holders' funds withdrawn ( 76 ) ( 80 ) Other ( 75 ) ( 82 ) Net cash used in financing activities ( 787 ) ( 425 ) Net change in cash and cash equivalents 319 12 Cash and cash equivalents at beginning of year 1,431 983 Cash and cash equivalents at end of period $ 1,750 $ 995 Supplemental Disclosures of Cash Flow Information: Interest paid $ 26 $ 27 Income taxes paid 249 97 Noncash Activities Equipment acquired under finance lease obligations $ 7 $ 12 Share-based compensation 48 26 Other assets and other liabilities 66 254 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026, 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 2025 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 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 disclosure of certain categories of expenses contained within relevant expense captions. 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. The ASU should be applied prospectively with retrospective application and 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 Second-Quarter 2026 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, 2026 gains losses Fixed-maturity: Corporate $ 10,592 $ 105 $ 241 $ 10,456 States, municipalities and political subdivisions 5,023 41 182 4,882 Government-sponsored enterprises 2,512 — 41 2,471 Asset-backed 812 6 10 808 United States government 321 — 4 317 Foreign government 20 — — 20 Total fixed-maturity 19,280 152 478 18,954 Short-term 143 — 1 142 Total fixed-maturity and short-term investments $ 19,423 $ 152 $ 479 $ 19,096 At December 31, 2025 Fixed-maturity: Corporate $ 9,750 $ 164 $ 203 $ 9,711 States, municipalities and political subdivisions 5,065 35 181 4,919 Government-sponsored enterprises 2,360 3 4 2,359 Asset-backed 793 12 8 797 United States government 312 2 1 313 Foreign government 24 — — 24 Total fixed-maturity 18,304 216 397 18,123 Short-term 148 — — 148 Total fixed-maturity and short-term investments $ 18,452 $ 216 $ 397 $ 18,271 The increase in net unrealized investment losses in our fixed-maturity portfolio at June 30, 2026, is primarily due to an increase in U.S. Treasury yields partially offset by a slight tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA at both June 30, 2026 and December 31, 2025. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity: Corporate $ 3,194 $ 42 $ 2,580 $ 199 $ 5,774 $ 241 States, municipalities and political subdivisions 316 2 2,063 180 2,379 182 Government-sponsored enterprises 2,152 38 193 3 2,345 41 Asset-backed 202 3 184 7 386 10 United States government 276 3 20 1 296 4 Foreign government 14 — — — 14 — Total fixed-maturity 6,154 88 5,040 390 11,194 478 Short-term 142 1 — — 142 1 Total fixed-maturity and short-term investments $ 6,296 $ 89 $ 5,040 $ 390 $ 11,336 $ 479 At December 31, 2025 Fixed-maturity: Corporate $ 849 $ 15 $ 2,926 $ 188 $ 3,775 $ 203 States, municipalities and political subdivisions 204 2 2,346 179 2,550 181 Government-sponsored enterprises 983 3 195 1 1,178 4 Asset-backed 101 2 184 6 285 8 United States government 69 — 20 1 89 1 Total fixed-maturity $ 2,206 $ 22 $ 5,671 $ 375 $ 7,877 $ 397 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, 2026 Maturity dates: Due in one year or less $ 857 $ 852 4.4 % Due after one year through five years 3,308 3,299 17.3 Due after five years through ten years 5,156 5,132 26.9 Due after ten years 10,102 9,813 51.4 Total $ 19,423 $ 19,096 100.0 % 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 2026 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, 2026 2025 2026 2025 Investment income: Interest $ 244 $ 214 $ 479 $ 424 Dividends 72 70 148 137 Other 8 5 20 12 Total 324 289 647 573 Less investment expenses 5 4 10 8 Total $ 319 $ 285 $ 637 $ 565 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 183 $ ( 1 ) $ 223 $ ( 3 ) Unrealized gains and losses on securities still held, net 1,117 481 1,006 411 Subtotal 1,300 480 1,229 408 Fixed-maturity securities: Gross realized gains 7 1 9 1 Gross realized losses ( 1 ) — ( 2 ) — Change in allowance for credit losses, net ( 1 ) ( 13 ) ( 2 ) ( 15 ) Subtotal 5 ( 12 ) 5 ( 14 ) Other 3 5 4 12 Total $ 1,308 $ 473 $ 1,238 $ 406 The fair value of our equity portfolio was $ 13.194 billion and $ 12.694 billion at June 30, 2026, and December 31, 2025, respectively. Apple Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with fair values of $ 1.004 billion and $ 958 million, which was 7.8 % and 7.7 % of our publicly traded common equities portfolio and 3.1 % and 3.1 % of the total investment portfolio at June 30, 2026, and December 31, 2025. The allowance for credit losses on fixed-maturity securities was $ 55 million and $ 54 million at June 30, 2026, and December 31, 2025, respectively. Reductions in the allowance for credit losses for securities sold were immaterial for the three months ended June 30, 2026. Reductions in the allowance for credit losses for securities sold were $ 1 million for the six months ended June 30, 2026. 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 2,880 and 2,597 fixed-maturity investments in a total unrealized loss position of $ 479 million and $ 397 million at June 30, 2026, and December 31, 2025, respectively. Of those totals, 14 and 13 fixed-maturity securities had fair values below 70 % of amortized cost at June 30, 2026, and December 31, 2025, respectively. Cincinnati Financial Corporation Second-Quarter 2026 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, 2025, and ultimately management determines fair value. See our 2025 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 134, 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, 2026, and December 31, 2025. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2026 Fixed maturities, available for sale: Corporate $ — $ 10,456 $ — $ 10,456 States, municipalities and political subdivisions — 4,882 — 4,882 Government-sponsored enterprises — 2,471 — 2,471 Asset-backed — 808 — 808 United States government 317 — — 317 Foreign government — 20 — 20 Subtotal 317 18,637 — 18,954 Common equities 12,883 — — 12,883 Nonredeemable preferred equities — 311 — 311 Separate accounts taxable fixed maturities 100 850 — 950 Short-term investments 142 — — 142 Top Hat savings plan mutual funds and common equity (included in Other assets) 112 — — 112 Total $ 13,554 $ 19,798 $ — $ 33,352 At December 31, 2025 Fixed maturities, available for sale: Corporate $ — $ 9,711 $ — $ 9,711 States, municipalities and political subdivisions — 4,919 — 4,919 Government-sponsored enterprises — 2,359 — 2,359 Asset-backed — 797 — 797 United States government 313 — — 313 Foreign government — 24 — 24 Subtotal 313 17,810 — 18,123 Common equities 12,373 — — 12,373 Nonredeemable preferred equities — 321 — 321 Separate accounts taxable fixed maturities 35 872 — 907 Short-term investments 148 — — 148 Top Hat savings plan mutual funds and common equity (included in Other assets) 102 — — 102 Total $ 12,971 $ 19,003 $ — $ 31,974 Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 12 Table of Contents We also held Level 1 cash and cash equivalents of $ 1.750 billion and $ 1.431 billion at June 30, 2026, and December 31, 2025, 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, 2026 2025 2026 2025 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 373 372 374 374 Total $ 791 $ 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, 2026 Note payable $ — $ 17 $ — $ 17 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 408 — 408 6.125 % senior notes, due 2034 — 393 — 393 Total $ — $ 847 $ — $ 847 At December 31, 2025 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 — 404 — 404 Total $ — $ 874 $ — $ 874 Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 Life policy loans $ — $ — $ 43 $ 43 Deferred annuities $ — $ — $ 519 $ 519 Structured settlements — 117 — 117 Total $ — $ 117 $ 519 $ 636 At December 31, 2025 Life policy loans $ — $ — $ 43 $ 43 Deferred annuities $ — $ — $ 530 $ 530 Structured settlements — 123 — 123 Total $ — $ 123 $ 530 $ 653 Outstanding principal and interest for these life policy loans totaled $ 39 million and $ 38 million at June 30, 2026, and December 31, 2025, respectively. Recorded reserves for the deferred annuities were $ 540 million and $ 554 million at June 30, 2026, and December 31, 2025, respectively. Recorded reserves for the structured settlements were $ 107 million and $ 111 million at June 30, 2026, and December 31, 2025, respectively. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Gross loss and loss expense reserves, beginning of period $ 11,884 $ 10,707 $ 11,450 $ 9,937 Less reinsurance recoverable 406 551 438 269 Net loss and loss expense reserves, beginning of period 11,478 10,156 11,012 9,668 Net incurred loss and loss expenses related to: Current accident year 1,850 1,650 3,598 3,628 Prior accident years ( 42 ) ( 63 ) ( 123 ) ( 154 ) Total incurred 1,808 1,587 3,475 3,474 Net paid loss and loss expenses related to: Current accident year 612 591 846 1,184 Prior accident years 681 655 1,648 1,461 Total paid 1,293 1,246 2,494 2,645 Net loss and loss expense reserves, end of period 11,993 10,497 11,993 10,497 Plus reinsurance recoverable 413 504 413 504 Gross loss and loss expense reserves, end of period $ 12,406 $ 11,001 $ 12,406 $ 11,001 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 $ 73 million and $ 71 million at June 30, 2026, and 2025, respectively, for certain life and health loss and loss expense reserves. We experienced $ 42 million of favorable development on prior accident years, including $ 17 million of favorable development in commercial lines, $ 11 million of favorable development in personal lines and $ 6 million of favorable development in excess and surplus lines for the three months ended June 30, 2026. Within commercial lines, we recognized favorable reserve development of $ 19 million for the commercial property line and $ 15 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 $ 14 million for the commercial casualty line. We experienced $ 123 million of favorable development on prior accident years, including $ 70 million of favorable development in commercial lines, $ 18 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, 2026. Within commercial lines, we recognized favorable reserve development of $ 50 million for the commercial property line and $ 24 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 $ 11 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $ 19 million for the homeowner line. Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 15 Table of Contents 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 2026 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, 2026 December 31, 2025 Life policy reserves: Term $ 1,116 $ 1,103 Whole life 425 426 Other 102 100 Subtotal 1,643 1,629 Investment contract reserves: Deferred annuities 540 554 Universal life 586 589 Structured settlements 107 111 Other 110 109 Subtotal 1,343 1,363 Total life policy and investment contract reserves $ 2,986 $ 2,992 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 2026 10-Q Page 17 Table of Contents (Dollars in millions) Three months ended June 30, 2026 2025 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,688 $ 221 $ 1,659 $ 220 Beginning balance at original discount rate 1,749 227 1,719 227 Effect of changes in cash flow assumptions 21 ( 5 ) ( 4 ) — Effect of actual variances from expected experience ( 4 ) — 5 ( 1 ) Adjusted beginning of period balance 1,766 222 1,720 226 Issuances 40 4 41 4 Interest accrual 20 3 19 2 Net premiums collected ( 50 ) ( 7 ) ( 49 ) ( 6 ) Ending balance at original discount rate 1,776 222 1,731 226 Effect of changes in discount rate assumptions ( 57 ) ( 6 ) ( 53 ) ( 6 ) Balance, end of period 1,719 216 1,678 220 Present value of expected future policy benefits: Balance, beginning of period 2,760 640 2,703 631 Beginning balance at original discount rate 2,877 666 2,812 648 Effect of changes in cash flow assumptions 36 ( 8 ) ( 12 ) — Effect of actual variances from expected experience ( 9 ) — 8 ( 1 ) Adjusted beginning of period balance 2,904 658 2,808 647 Issuances 39 4 40 4 Interest accrual 34 9 32 8 Benefits paid ( 46 ) ( 9 ) ( 59 ) ( 8 ) Ending balance at original discount rate 2,931 662 2,821 651 Effect of changes in discount rate assumptions ( 108 ) ( 21 ) ( 101 ) ( 17 ) Balance, end of period 2,823 641 2,720 634 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,104 425 1,042 414 Impact of flooring at cohort level 12 — 19 — Net life policy reserves 1,116 425 1,061 414 Less reinsurance recoverable at original discount rate ( 70 ) ( 24 ) ( 68 ) ( 25 ) Less effect of discount rate assumption changes on reinsurance recoverable ( 4 ) ( 3 ) ( 7 ) ( 3 ) Net life policy reserves, after reinsurance recoverable $ 1,042 $ 398 $ 986 $ 386 Weighted-average duration of the net life policy reserves in years 11 14 11 15 Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 18 Table of Contents (Dollars in millions) Six months ended June 30, 2026 2025 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,709 $ 225 $ 1,638 $ 218 Beginning balance at original discount rate 1,743 228 1,719 228 Effect of changes in cash flow assumptions 21 ( 5 ) ( 4 ) — Effect of actual variances from expected experience ( 10 ) — ( 3 ) ( 1 ) Adjusted beginning of period balance 1,754 223 1,712 227 Issuances 79 8 76 7 Interest accrual 39 5 38 5 Net premiums collected ( 96 ) ( 14 ) ( 95 ) ( 13 ) Ending balance at original discount rate 1,776 222 1,731 226 Effect of changes in discount rate assumptions ( 57 ) ( 6 ) ( 53 ) ( 6 ) Balance, end of period 1,719 216 1,678 220 Present value of expected future policy benefits: Balance, beginning of period 2,794 650 2,668 623 Beginning balance at original discount rate 2,863 662 2,812 646 Effect of changes in cash flow assumptions 36 ( 8 ) ( 12 ) — Effect of actual variances from expected experience ( 16 ) — ( 6 ) ( 1 ) Adjusted beginning of period balance 2,883 654 2,794 645 Issuances 78 8 76 7 Interest accrual 66 17 64 17 Benefits paid ( 96 ) ( 17 ) ( 113 ) ( 18 ) Ending balance at original discount rate 2,931 662 2,821 651 Effect of changes in discount rate assumptions ( 108 ) ( 21 ) ( 101 ) ( 17 ) Balance, end of period 2,823 641 2,720 634 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,104 425 1,042 414 Impact of flooring at cohort level 12 — 19 — Net life policy reserves 1,116 425 1,061 414 Less reinsurance recoverable at original discount rate ( 70 ) ( 24 ) ( 68 ) ( 25 ) Less effect of discount rate assumption changes on reinsurance recoverable ( 4 ) ( 3 ) ( 7 ) ( 3 ) Net life policy reserves, after reinsurance recoverable $ 1,042 $ 398 $ 986 $ 386 Weighted-average duration of the net life policy reserves in years 11 14 11 15 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $ 1 million and $ 2 million at June 30, 2026 and 2025, respectively. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 5,183 $ 2,823 $ 4,947 $ 2,720 Expected future gross premiums 4,782 2,782 4,632 2,697 Whole life Expected future benefit payments $ 1,765 $ 641 $ 1,709 $ 634 Expected future gross premiums 710 423 688 415 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, 2026 2025 2026 2025 Gross premiums Term $ 80 $ 77 $ 157 $ 151 Whole life 14 14 28 27 Total $ 94 $ 91 $ 185 $ 178 Interest accretion Term $ 14 $ 13 $ 27 $ 26 Whole life 6 6 12 12 Total $ 20 $ 19 $ 39 $ 38 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the six months ended June 30, 2026, and 2025 . The following table shows the weighted-average interest rate for our term and whole life products : At June 30, 2026 2025 Term Interest accretion rate 5.30 % 5.22 % Current discount rate 5.32 4.93 Whole life Interest accretion rate 5.85 % 5.86 % Current discount rate 5.78 5.68 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 2026 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, 2026 2025 2026 2025 Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 546 $ 449 $ 582 $ 457 $ 554 $ 451 $ 595 $ 456 Premiums received 8 9 8 9 14 18 12 19 Policy charges — ( 10 ) — ( 10 ) — ( 20 ) — ( 20 ) Surrenders and withdrawals ( 15 ) ( 4 ) ( 18 ) ( 3 ) ( 30 ) ( 9 ) ( 35 ) ( 6 ) Benefit payments ( 4 ) ( 2 ) ( 3 ) ( 4 ) ( 8 ) ( 3 ) ( 8 ) ( 5 ) Interest credited 5 5 6 5 10 10 11 10 Balance, end of period $ 540 $ 447 $ 575 $ 454 $ 540 $ 447 $ 575 $ 454 Weighted average crediting rate 3.79 % 4.42 % 3.71 % 4.43 % 3.79 % 4.42 % 3.71 % 4.43 % Net amount at risk $ — $ 3,610 $ — $ 3,746 $ — $ 3,610 $ — $ 3,746 Cash surrender value 533 422 568 426 533 422 568 426 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 June 30, 2026 Deferred annuity 1.00-3.00% $ 235 $ 2 $ 18 $ 242 $ 497 3.01-4.00% 43 — — — 43 Total $ 278 $ 2 $ 18 $ 242 $ 540 Universal life 1.00-3.00% $ — $ 53 $ 57 $ 18 $ 128 3.01-4.00% 51 — 5 — 56 Greater than 4.00% 263 — — — 263 Total $ 314 $ 53 $ 62 $ 18 $ 447 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 Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Balance, beginning of period $ 141 $ 130 $ 138 $ 130 Balance, beginning of period before shadow reserve adjustments 142 131 138 131 Effect of changes in cash flow assumptions ( 5 ) — ( 5 ) — Effect of actual variances from expected experience — — 1 2 Adjusted beginning of period balance 137 131 134 133 Interest accrual 2 1 3 2 Excess death benefits ( 2 ) ( 2 ) ( 4 ) ( 9 ) Attributed assessments 3 3 6 6 Effect of changes in interest rate assumptions — — 1 1 Balance, end of period before shadow reserve adjustments 140 133 140 133 Shadow reserve adjustments ( 1 ) ( 1 ) ( 1 ) ( 1 ) Balance, end of period 139 132 139 132 Less reinsurance recoverable, end of period 7 6 7 6 Net other additional liability, after reinsurance recoverable $ 146 $ 138 $ 146 $ 138 Weighted-average duration of the other additional liability in years 25 26 25 26 The following table shows balances and changes in separate accounts liability balances during the period: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Balance, beginning of period $ 988 $ 959 $ 981 $ 952 Interest credited before policy charges 13 11 24 22 Benefit payments ( 6 ) — ( 7 ) ( 8 ) Other 1 21 ( 2 ) 25 Balance, end of period $ 996 $ 991 $ 996 $ 991 Cash surrender value $ 990 $ 959 $ 990 $ 959 Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 1,011 $ 937 $ 974 $ 886 Capitalized deferred policy acquisition costs 534 513 1,046 998 Amortized deferred policy acquisition costs ( 480 ) ( 445 ) ( 955 ) ( 879 ) Deferred policy acquisition costs asset, end of period $ 1,065 $ 1,005 $ 1,065 $ 1,005 Life: Deferred policy acquisition costs asset, beginning of period $ 373 $ 360 $ 370 $ 356 Capitalized deferred policy acquisition costs 12 10 23 22 Amortized deferred policy acquisition costs ( 8 ) ( 8 ) ( 16 ) ( 16 ) Deferred policy acquisition costs asset, end of period $ 377 $ 362 $ 377 $ 362 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,384 $ 1,297 $ 1,344 $ 1,242 Capitalized deferred policy acquisition costs 546 523 1,069 1,020 Amortized deferred policy acquisition costs ( 488 ) ( 453 ) ( 971 ) ( 895 ) Deferred policy acquisition costs asset, end of period $ 1,442 $ 1,367 $ 1,442 $ 1,367 Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 260 $ 56 $ 8 $ 49 $ 373 Capitalized deferred policy acquisition costs 10 1 1 — 12 Amortized deferred policy acquisition costs ( 6 ) ( 1 ) ( 1 ) — ( 8 ) Balance, end of period $ 264 $ 56 $ 8 $ 49 $ 377 Three months ended June 30, 2025 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 (Dollars in millions) Six months ended June 30, 2026 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 257 $ 55 $ 8 $ 50 $ 370 Capitalized deferred policy acquisition costs 19 3 1 — 23 Amortized deferred policy acquisition costs ( 12 ) ( 2 ) ( 1 ) ( 1 ) ( 16 ) Balance, end of period $ 264 $ 56 $ 8 $ 49 $ 377 Six months ended June 30, 2025 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 Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 401 ) $ ( 86 ) $ ( 315 ) $ ( 486 ) $ ( 105 ) $ ( 381 ) OCI before investment gains and losses, net, recognized in net income 79 17 62 16 3 13 Investment gains and losses, net, recognized in net income ( 5 ) ( 1 ) ( 4 ) 12 3 9 OCI 74 16 58 28 6 22 AOCI, end of period $ ( 327 ) $ ( 70 ) $ ( 257 ) $ ( 458 ) $ ( 99 ) $ ( 359 ) Pension obligations: AOCI, beginning of period $ 84 $ 19 $ 65 $ 74 $ 17 $ 57 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 $ 83 $ 19 $ 64 $ 73 $ 17 $ 56 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 82 $ 17 $ 65 $ 68 $ 15 $ 53 OCI before investment gains and losses, net, recognized in net income ( 10 ) ( 3 ) ( 7 ) 1 — 1 Investment gains and losses, net, recognized in net income — — — — — — OCI ( 10 ) ( 3 ) ( 7 ) 1 — 1 AOCI, end of period $ 72 $ 14 $ 58 $ 69 $ 15 $ 54 ​ Summary of AOCI: AOCI, beginning of period $ ( 235 ) $ ( 50 ) $ ( 185 ) $ ( 344 ) $ ( 73 ) $ ( 271 ) Investments OCI 74 16 58 28 6 22 Pension obligations OCI ( 1 ) — ( 1 ) ( 1 ) — ( 1 ) Life policy reserves, reinsurance recoverable and other OCI ( 10 ) ( 3 ) ( 7 ) 1 — 1 Total OCI 63 13 50 28 6 22 AOCI, end of period $ ( 172 ) $ ( 37 ) $ ( 135 ) $ ( 316 ) $ ( 67 ) $ ( 249 ) Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 25 Table of Contents (Dollars in millions) Six months ended June 30, 2026 2025 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 181 ) $ ( 40 ) $ ( 141 ) $ ( 553 ) $ ( 119 ) $ ( 434 ) OCI before investment gains and losses, net, recognized in net income ( 141 ) ( 29 ) ( 112 ) 81 17 64 Investment gains and losses, net, recognized in net income ( 5 ) ( 1 ) ( 4 ) 14 3 11 OCI ( 146 ) ( 30 ) ( 116 ) 95 20 75 AOCI, end of period $ ( 327 ) $ ( 70 ) $ ( 257 ) $ ( 458 ) $ ( 99 ) $ ( 359 ) Pension obligations: AOCI, beginning of period $ 85 $ 19 $ 66 $ 75 $ 17 $ 58 OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income ( 2 ) — ( 2 ) ( 2 ) — ( 2 ) OCI ( 2 ) — ( 2 ) ( 2 ) — ( 2 ) AOCI, end of period $ 83 $ 19 $ 64 $ 73 $ 17 $ 56 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 52 $ 11 $ 41 $ 85 $ 18 $ 67 OCI before investment gains and losses, net, recognized in net income 20 3 17 ( 16 ) ( 3 ) ( 13 ) Investment gains and losses, net, recognized in net income — — — — — — OCI 20 3 17 ( 16 ) ( 3 ) ( 13 ) AOCI, end of period $ 72 $ 14 $ 58 $ 69 $ 15 $ 54 Summary of AOCI: AOCI, beginning of period $ ( 44 ) $ ( 10 ) $ ( 34 ) $ ( 393 ) $ ( 84 ) $ ( 309 ) Investments OCI ( 146 ) ( 30 ) ( 116 ) 95 20 75 Pension obligations OCI ( 2 ) — ( 2 ) ( 2 ) — ( 2 ) Life policy reserves, reinsurance recoverable and other OCI 20 3 17 ( 16 ) ( 3 ) ( 13 ) Total OCI ( 128 ) ( 27 ) ( 101 ) 77 17 60 AOCI, end of period $ ( 172 ) $ ( 37 ) $ ( 135 ) $ ( 316 ) $ ( 67 ) $ ( 249 ) 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 2026 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 treaties and catastrophe bonds 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, 2026 2025 2026 2025 Direct written premiums $ 2,739 $ 2,672 $ 5,246 $ 5,060 Assumed written premiums 216 196 497 499 Ceded written premiums ( 130 ) ( 135 ) ( 250 ) ( 331 ) Net written premiums $ 2,825 $ 2,733 $ 5,493 $ 5,228 Direct earned premiums $ 2,479 $ 2,333 $ 4,927 $ 4,580 Assumed earned premiums 170 162 337 352 Ceded earned premiums ( 101 ) ( 98 ) ( 197 ) ( 271 ) Earned premiums $ 2,548 $ 2,397 $ 5,067 $ 4,661 Direct incurred loss and loss expenses $ 1,759 $ 1,508 $ 3,354 $ 3,657 Assumed incurred loss and loss expenses 84 91 165 327 Ceded incurred loss and loss expenses ( 35 ) ( 12 ) ( 44 ) ( 510 ) Incurred loss and loss expenses $ 1,808 $ 1,587 $ 3,475 $ 3,474 Cincinnati Financial Corporation Second-Quarter 2026 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 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, 2026 2025 2026 2025 Direct earned premiums $ 107 $ 104 $ 212 $ 203 Ceded earned premiums ( 20 ) ( 21 ) ( 40 ) ( 40 ) Earned premiums $ 87 $ 83 $ 172 $ 163 Direct contract holders' benefits incurred $ 96 $ 104 $ 195 $ 198 Ceded contract holders' benefits incurred ( 17 ) ( 31 ) ( 32 ) ( 44 ) Contract holders' benefits incurred $ 79 $ 73 $ 163 $ 154 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 June 30, 2026, and December 31, 2025. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at June 30, 2026, and December 31, 2025. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Tax at statutory rate: $ 331 21.0 % $ 180 21.0 % $ 399 21.0 % $ 153 21.0 % Increase (decrease) resulting from: Nontaxable or nondeductible items Tax-exempt income from municipal bonds ( 6 ) ( 0.4 ) ( 6 ) ( 0.7 ) ( 12 ) ( 0.6 ) ( 11 ) ( 1.5 ) Dividend received exclusion ( 6 ) ( 0.4 ) ( 6 ) ( 0.7 ) ( 12 ) ( 0.6 ) ( 11 ) ( 1.5 ) Other nontaxable or nondeductible items — — — — ( 1 ) ( 0.1 ) 2 0.3 Other 2 0.2 2 0.3 ( 1 ) ( 0.1 ) ( 1 ) ( 0.1 ) Provision for income taxes $ 321 20.4 % $ 170 19.9 % $ 373 19.6 % $ 132 18.2 % The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries. 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, 2026, and December 31, 2025. Cincinnati Global Cincinnati Global had no operating loss carryforwards in the United States and $ 26 million and $ 50 million in the United Kingdom at June 30, 2026, and December 31, 2025, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group. Cincinnati Financial Corporation Second-Quarter 2026 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, 2026 2025 2026 2025 Numerator: Net income—basic and diluted $ 1,255 $ 685 $ 1,529 $ 595 Denominator: Basic weighted-average common shares outstanding 154.1 156.3 154.7 156.4 Effect of share-based awards: Stock options 1.1 0.9 1.1 1.0 Nonvested shares 0.5 0.6 0.5 0.4 Diluted weighted-average shares 155.7 157.8 156.3 157.8 Earnings per share: Basic $ 8.14 $ 4.38 $ 9.88 $ 3.81 Diluted $ 8.05 $ 4.34 $ 9.78 $ 3.77 Number of anti-dilutive share-based awards 0.3 0.3 0.5 0.4 The source of dilution of our common shares are certain equity-based awards. See our 2025 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 169, 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, 2026 and 2025. 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, 2026 2025 2026 2025 Service cost $ 1 $ 1 $ 2 $ 2 Non-service (benefit) costs: Interest cost 3 3 7 7 Expected return on plan assets ( 6 ) ( 5 ) ( 12 ) ( 11 ) Amortization of actuarial gain and prior service cost ( 1 ) ( 1 ) ( 2 ) ( 2 ) Total non-service benefit ( 4 ) ( 3 ) ( 7 ) ( 6 ) Net periodic benefit $ ( 3 ) $ ( 2 ) $ ( 5 ) $ ( 4 ) See our 2025 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 163, 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 2026 and 2025. We made matching contributions totaling $ 9 million and $ 8 million to our 401(k) and Top Hat savings plans during the second quarter of 2026 and 2025, respectively, and contributions of $ 17 million and $ 19 million for the first half of 2026 and 2025, respectively. We made no contributions to our qualified pension plan during the first six months of 2026. Cincinnati Financial Corporation Second-Quarter 2026 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 five 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 2025 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 172, 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 2026 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, 2026 2025 2026 2025 Commercial lines insurance Commercial lines insurance premiums $ 1,251 $ 1,212 $ 2,492 $ 2,391 Fee revenues 1 — 2 2 Total commercial lines insurance revenues 1,252 1,212 2,494 2,393 Loss and loss expenses 910 767 1,757 1,502 Underwriting expenses 391 358 768 707 Total commercial lines income (loss) before income taxes ( 49 ) 87 ( 31 ) 184 Personal lines insurance Personal lines insurance premiums 880 804 1,753 1,502 Fee revenues 1 2 3 3 Total personal lines insurance revenues 881 806 1,756 1,505 Loss and loss expenses 638 598 1,245 1,444 Underwriting expenses 242 222 480 432 Total personal lines income (loss) before income taxes 1 ( 14 ) 31 ( 371 ) Excess and surplus lines insurance Excess and surplus lines insurance premiums 189 174 369 336 Fee revenues 1 1 2 2 Total excess and surplus lines insurance revenues 190 175 371 338 Loss and loss expenses 118 110 228 209 Underwriting expenses 53 49 103 93 Total excess and surplus lines income before income taxes 19 16 40 36 Life insurance Life insurance premiums 87 83 172 163 Fee revenues 2 2 3 3 Total life insurance revenues 89 85 175 166 Contract holders' benefits incurred 79 73 163 154 Investment interest credited to contract holders ( 33 ) ( 31 ) ( 65 ) ( 63 ) Underwriting expenses incurred 25 24 48 47 Total life insurance income before income taxes 18 19 29 28 Investments Investment income, net of expenses 319 285 637 565 Investment gains and losses, net 1,308 473 1,238 406 Total investment revenue 1,627 758 1,875 971 Investment interest credited to contract holders 33 31 65 63 Total investment income before income taxes 1,594 727 1,810 908 Reconciliation to condensed consolidated income before income taxes Total segment revenues 4,039 3,036 6,671 5,373 Other earned premiums 228 207 453 432 Other revenues 7 5 13 9 Total revenues 4,274 3,248 7,137 5,814 Total segment benefits and expenses 2,456 2,201 4,792 4,588 Other loss and loss expenses 142 112 245 319 Other underwriting expenses 75 56 151 132 Other benefits and expenses 25 24 47 48 Total benefits and expenses 2,698 2,393 5,235 5,087 Total income before income taxes $ 1,576 $ 855 $ 1,902 $ 727 Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 32 Table of Contents Identifiable assets by segment are summarized in the following table: (Dollars in millions) June 30, December 31, 2026 2025 Identifiable assets: Property casualty insurance $ 7,542 $ 6,916 Life insurance 1,744 1,695 Investments 32,544 31,199 Other 1,401 1,192 Total $ 43,231 $ 41,002