Item 8. Financial Statements and Supplementary Data

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Item 8. Financial Statements and Supplementary Data

Responsibility for Financial Statements

We have prepared the consolidated financial statements of Cincinnati Financial Corporation and our subsidiaries for the year ended December 31, 2025, in accordance with accounting principles generally accepted in the United States of America (GAAP).

We are responsible for the integrity and objectivity of these financial statements. The amounts, presented on an accrual basis, reflect our best estimates and judgment. These statements are consistent in all material aspects with other financial information in the Annual Report on Form 10-K. Our accounting system and related internal controls are designed to assure that our books and records accurately reflect the company’s transactions in accordance with established policies and procedures as implemented by qualified personnel.

Our board of directors has established an audit committee of independent outside directors. We believe these directors are free from any relationships that could interfere with their independent judgment as audit committee members.

The audit committee meets periodically with management, our independent registered public accounting firm and our internal auditors to discuss how each is handling its respective responsibilities. The audit committee reports its findings to the board of directors. The audit committee recommends to the board the annual appointment of the independent registered public accounting firm. The audit committee reviews with this firm the scope of the audit assignment and the adequacy of internal controls and procedures.

Deloitte & Touche LLP, our independent registered public accounting firm, audited the consolidated financial statements of Cincinnati Financial Corporation and subsidiaries for the year ended December 31, 2025. Deloitte & Touche LLP met with our audit committee to discuss the results of its audit. They have the opportunity to discuss the adequacy of internal controls and the quality of financial reporting without management present.

Cincinnati Financial Corporation - 2025 10-K - Page 115

Management’s Annual Report on Internal Control Over Financial Reporting

The management of Cincinnati Financial Corporation and its subsidiaries is responsible for establishing and maintaining adequate internal controls, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (GAAP). The company’s internal control over financial reporting includes those policies and procedures that:

Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the company are being made only in accordance with authorizations of management and the directors of the company; and
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human error and the circumvention of overriding controls. Accordingly, even effective internal control can provide only reasonable assurance with respect to financial statement preparation and presentation. Further, because of changes in conditions, the effectiveness of internal control may vary over time.

The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of December 31, 2025, as required by Section 404 of the Sarbanes Oxley Act of 2002. Management’s assessment was based on the criteria established in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and was designed to provide reasonable assurance that the company maintained effective internal control over financial reporting as of December 31, 2025. The assessment led management to conclude that, as of December 31, 2025, the company’s internal control over financial reporting was effective based on those criteria.

The company’s independent registered public accounting firm has issued an audit report on our internal control over financial reporting as of December 31, 2025.

/S/ Stephen M. Spray

Stephen M. Spray

President and Chief Executive Officer

/S/ Michael J. Sewell

Michael J. Sewell, CPA

Chief Financial Officer, Executive Vice President and Treasurer

(Principal Accounting Officer)

February 23, 2026

Cincinnati Financial Corporation - 2025 10-K - Page 116

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Cincinnati Financial Corporation

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Cincinnati Financial Corporation and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15(b) (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Property and Casualty Insurance Loss and Loss Expense Reserves — Refer to Note 4 to the financial statements*.*

Critical Audit Matter Description

The Company’s property and casualty insurance loss and loss expense reserves for long-tailed lines of business, such as workers’ compensation, commercial casualty and certain other liability lines (referred to as “loss and loss expense reserves”), are determined by the Company using actuarial methods, models, assumptions, and judgment to estimate the reserves (“actuarial estimates”) required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of the financial statement date. The actuarial estimates of loss and loss expense reserves are subject to review and adjustment by Company management.

Loss and loss expense reserves are inherently uncertain as to timing and amount and the recorded loss and loss expense reserves may vary materially from the actual ultimate cost of claims. Given the subjectivity in estimating ultimate loss and loss expense reserves, due to uncertainties concerning the future emergence of loss and loss expenses, inflation trends, and the judicial environment, among other factors, auditing loss and loss expense reserves involved an especially high degree of auditor judgment, including the need to involve our actuarial specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to loss and loss expense reserves included the following, among others:

We tested the effectiveness of controls related to loss and loss expense reserves, including those over the review of actuarial methods, models, assumptions and judgments used, and management’s review of the estimates.
We tested the underlying data that served as the basis for the actuarial analyses, including historical claims data, to test the reasonableness of key inputs to the actuarial estimates.
With the assistance of our actuarial specialists, we used the Company’s claims data and other inputs, to develop a range of independent estimates for the loss and loss expense reserves. We used these independent estimates to assess the reasonableness of the Company’s reserves by comparing our estimates to the Company’s recorded loss and loss expense reserves.
We compared the Company’s prior year estimates of expected incurred losses to actual experience during the current year to identify potential bias in the determination of loss and loss expense reserves.

/S/ DELOITTE & TOUCHE LLP

Cincinnati, Ohio

February 23, 2026

We have served as the Company’s auditor since 1980.

Cincinnati Financial Corporation - 2025 10-K - Page 118

Cincinnati Financial Corporation and Subsidiaries

Consolidated Balance Sheets


(Dollars in millions, except per share data)	December 31,		December 31,
	2025		2024
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2025—$18,304; 2024—$16,735)	$	18,123	$	16,182
Equity securities, at fair value (cost: 2025—$4,155; 2024—$3,953)	12,694		11,185
Short-term investments, at fair value (amortized cost: 2025—$148; 2024—$298)	148		298
Other invested assets	818		713
Total investments	31,783		28,378
Cash and cash equivalents	1,431		983
Investment income receivable	235		222
Finance receivable	146		120
Premiums receivable	3,142		2,969
Reinsurance recoverable	655		523
Prepaid reinsurance premiums	71		70
Deferred policy acquisition costs	1,344		1,242
Land, building and equipment, net, for company use (accumulated depreciation: 2025—$367; 2024—$347)	219		214
Other assets	995		828
Separate accounts	981		952
Total assets	$	41,002	$	36,501

Liabilities
Insurance reserves
Loss and loss expense reserves	$	11,507	$	10,003
Life policy and investment contract reserves	2,992		2,960
Unearned premiums	5,254		4,813
Other liabilities	1,638		1,487
Deferred income tax	1,833		1,476
Note payable	25		25
Long-term debt and lease obligations	861		850
Separate accounts	981		952
Total liabilities	25,091		22,566

Commitments and contingent liabilities (Note 16)

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	1,561		1,502
Retained earnings	16,719		14,869
Accumulated other comprehensive loss	(34)		(309)
Treasury stock, at cost (2025—42.9 million shares and 2024—41.9 million shares)	(2,732)		(2,524)
Total shareholders' equity	15,911		13,935
Total liabilities and shareholders' equity	$	41,002	$	36,501

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

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Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income


(Dollars in millions, except per share data)	Years ended December 31,
	2025		2024		2023
Revenues
Earned premiums	$	9,983	$	8,889	$	7,958
Investment income, net of expenses	1,165		1,025		894
Investment gains and losses, net	1,442		1,391		1,127
Fee revenues	20		17		21
Other revenues	21		15		13
Total revenues	12,631		11,337		10,013
Benefits and Expenses
Insurance losses and contract holders' benefits	6,640		5,737		5,274
Underwriting, acquisition and insurance expenses	2,924		2,657		2,384
Interest expense	53		53		54
Other operating expenses	34		32		25
Total benefits and expenses	9,651		8,479		7,737
Income Before Income Taxes	2,980		2,858		2,276
Provision for Income Taxes
Current	304		449		210
Deferred	283		117		223
Total provision for income taxes	587		566		433
Net Income	$	2,393	$	2,292	$	1,843
Per Common Share
Net income—basic	$	15.32	$	14.65	$	11.74
Net income—diluted	15.17		14.53		11.66

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

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Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Net Income	$	2,393	$	2,292	$	1,843
Other Comprehensive Income (Loss)
Change in unrealized gains and losses on investments, net of tax of $79, $4 and $59, respectively	293		13		218
Amortization of pension actuarial gains and losses and prior service cost, net of tax (benefit) of $2, $9 and $(1), respectively	8		36		(5)
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(7), $21 and $(8), respectively	(26)		77		(34)

Other comprehensive income	275		126		179
Comprehensive Income	$	2,668	$	2,418	$	2,022

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

Cincinnati Financial Corporation - 2025 10-K - Page 121

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Common Stock
Beginning of year	$	397	$	397	$	397
Share-based awards	—		—		—
End of year	397		397		397

Paid-In Capital
Beginning of year	1,502		1,437		1,392
Share-based awards	1		8		(3)
Share-based compensation	46		46		40
Other	12		11		8
End of year	1,561		1,502		1,437

Retained Earnings
Beginning of year	14,869		13,084		11,711



Net income	2,393		2,292		1,843
Dividends declared	(543)		(507)		(470)

End of year	16,719		14,869		13,084

Accumulated Other Comprehensive Income (Loss)
Beginning of year	(309)		(435)		(614)


Other comprehensive income	275		126		179

End of year	(34)		(309)		(435)

Treasury Stock
Beginning of year	(2,524)		(2,385)		(2,324)
Share-based awards	14		18		11
Shares acquired - share repurchase authorization	(205)		(126)		(67)
Shares acquired - share-based compensation plans	(19)		(33)		(8)
Other	2		2		3
End of year	(2,732)		(2,524)		(2,385)

Total Shareholders' Equity	$	15,911	$	13,935	$	12,098

(In millions)
Common Stock - Shares Outstanding
Beginning of year	156.4		157.0		157.1
Share-based awards	0.4		0.7		0.4
Shares acquired - share repurchase authorization	(1.4)		(1.1)		(0.6)
Shares acquired - share-based compensation plans	(0.1)		(0.3)		—
Other	0.1		0.1		0.1
End of year	155.4		156.4		157.0

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

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Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Cash Flows From Operating Activities
Net income	$	2,393	$	2,292	$	1,843
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	168		130		112
Investment gains and losses, net	(1,405)		(1,367)		(1,108)

Interest credited to contract holders	44		44		45
Deferred income tax expense	283		117		223
Changes in:

Premiums and reinsurance receivable	(306)		(266)		(264)
Deferred policy acquisition costs	(102)		(149)		(80)
Other assets	(73)		(14)		(30)
Loss and loss expense reserves	1,504		953		650
Life policy and investment contract reserves	55		69		99
Unearned premiums	441		694		430
Other liabilities	84		134		90
Current income tax receivable/payable	26		12		42
Net cash provided by operating activities	3,112		2,649		2,052
Cash Flows From Investing Activities
Sale, call or maturity of fixed maturities	3,777		3,202		1,136

Sale of equity securities	335		1,599		206
Purchase of fixed maturities	(5,388)		(5,732)		(2,554)
Purchase of equity securities	(409)		(321)		(220)
Change in short-term investments, net	156		(295)		—
Changes in finance receivables	(30)		(15)		(15)

Investment in buildings and equipment	(20)		(22)		(18)
Change in other invested assets, net	(112)		(112)		(143)
Net cash used in investing activities	(1,691)		(1,696)		(1,608)
Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(525)		(490)		(454)
Shares acquired - share repurchase authorization	(205)		(126)		(67)
Changes in note payable	—		—		(25)
Proceeds from stock options exercised	10		10		9
Contract holders' funds deposited	66		73		83
Contract holders' funds withdrawn	(166)		(190)		(218)

Other	(153)		(154)		(129)
Net cash used in financing activities	(973)		(877)		(801)
Net change in cash and cash equivalents	448		76		(357)
Cash and cash equivalents at beginning of year	983		907		1,264
Cash and cash equivalents at end of year	$	1,431	$	983	$	907
Supplemental Disclosures of Cash Flow Information
Interest paid	$	53	$	53	$	54
Income taxes paid	220		395		136
Noncash Activities

Equipment acquired under finance lease obligations	$	24	$	19	$	20
Share-based compensation	37		51		19
Other assets and other liabilities	113		103		77

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

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Notes to Consolidated Financial Statements

NOTE 1 – Summary of Significant Accounting Policies

Nature of Operations

Cincinnati Financial Corporation (CFC) operates through The Cincinnati Insurance Company and Cincinnati Global Underwriting Ltd.SM (Cincinnati Global) insurance subsidiaries and two complementary subsidiary companies.

The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 2,292 independent insurance agencies with 3,702 reporting locations across 46 states. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities; and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re®.

The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers.

Basis of Presentation

Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). Foreign exchange rates related to Cincinnati Global's operations did not have a material impact to our consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation.

The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates.

Investments

Our portfolio investments are primarily in publicly traded fixed-maturity, equity security and short-term investments. Fixed-maturity (taxable bonds, including redeemable preferred equities, tax-exempt bonds and asset-backed securities) and short-term (commercial paper purchased within one year of maturity) investments classified as available for sale and equity security investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Changes in fair value of fixed-maturity and short-term investments are reported in other comprehensive income while changes in fair value of equity securities are reported in net income. The number of fixed-maturity securities with fair values below 100% of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values.

An available for sale fixed maturity is impaired if the fair value of the security is below amortized cost. The impaired loss is charged to net income when we have the intent to sell the security or it is more likely than not we will be required to sell the security before recovery of the amortized cost. For impaired securities we intend to hold, an allowance for credit related losses is recorded in investment losses when the company determines a credit loss has been incurred based on certain factors such as adverse conditions, credit rating downgrades or failure of the issuer to make scheduled principal or interest payments. A credit loss is determined using a discounted cash flow analysis by comparing the present value of expected cash flows with the amortized cost basis, limited to the difference between fair value and amortized cost. Noncredit losses are recognized in other comprehensive income as a change in unrealized gains and losses on investments. As securities are sold, we recognize the gain or loss in net income based on the trade date.

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Included within our other invested assets were $641 million and $567 million of private equity investments, $123 million and $94 million of real estate through direct property ownership and development projects in the United States, $38 million and $36 million of life policy loans and $16 million and $16 million held on deposit at Lloyd's at December 31, 2025 and 2024, respectively. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Lloyd's deposits primarily consist of highly liquid short-term investment instruments. Life policy loans are carried at the receivable value.

Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security.

Fair Value Disclosures

Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity, fixed-maturity and short-term securities (including assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendors, outside resources that supply global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing services' valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendors is immaterial.

For the purpose of Accounting Standards Codification (ASC) 825, Financial Instruments disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2025, to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details.

Cash and Cash Equivalents

Cash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value.

Property Casualty Insurance

The consolidated property casualty companies actively write property casualty insurance through independent agencies in 46 states. Our 10 largest states generated 50.2% and 50.1% of total earned premiums in 2025 and 2024, respectively. Ohio, our largest state, accounted for 12.8% and 13.1% of total earned premiums in 2025 and 2024, respectively. Illinois, New York, and North Carolina each accounted for between 4% and 6% of total earned premiums in 2025. Our largest single agency relationship accounted for approximately 0.5% of our total property casualty earned premiums in 2025. No aggregate agency relationship locations under a single ownership structure accounted for more than 8% of our total property casualty earned premiums in 2025. We record revenues for installment charges as fee revenues in the consolidated statements of income.

Property casualty written premiums are deferred and recorded as earned premiums primarily on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies.

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Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums.

An allowance for credit losses on uncollectible property casualty premiums is updated and reviewed on a quarterly basis. The allowance for credit losses was $18 million, $18 million and $16 million at December 31, 2025, 2024 and 2023, respectively. Changes in the amount for each period were immaterial.

We establish reserves to cover the expected cost of claims, losses and expenses related to investigating, processing and resolving claims. Although the appropriate amount of reserves is inherently uncertain, we base our decisions on past experience and current facts. Reserves are based on claims reported prior to the end of the year and estimates of incurred but not reported (IBNR) claims. We regularly review and update reserves using the most current information available. Any resulting adjustments are reflected in current calendar year insurance losses and policyholder benefits. We estimate that we may recover some of our costs through salvage and subrogation.

Policyholder Dividends

Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses.

Life Insurance

We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts.

Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance, are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period.

We establish reserves for traditional long-duration contracts, 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 provide 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 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. Certain assumptions, including the mortality, lapse and long-term interest rate reversion targets, were updated in 2025 as part of our annual assumption unlocking. See Note 5, Life Policy and Investment Contract Reserves, for further detail regarding the measurement impact on traditional long-duration contract reserves due to changes in the inputs, judgments and assumptions during the period.

We also offer universal life, deferred annuity and other investment contracts. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when assessed. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract.

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These administration charges are deferred and are recognized over the period when we provide those future services. Deferred annuities provide regular income payments to annuitants once certain criteria are met. During the deferral period, payments made by the annuitants under the contract accumulate at the crediting rate declared by the company but not less than a contract-specified guaranteed minimum interest rate. We also do not record deferred annuity premiums as revenue.

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 insurance 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.

We capitalize acquisition costs associated with successfully acquiring traditional and universal life long-duration contracts. We charge these capitalized costs to expenses on a constant-level basis that approximates straight-line amortization over the expected term of the related contracts.

An allowance for credit losses on uncollectible life insurance premiums is updated and reviewed on a quarterly basis. At December 31, 2025, 2024 and 2023, the allowance, including changes in the amount for each period, was immaterial.

Separate Accounts

We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for certain BOLIs, when required by the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products.

We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are carried at an amount equal to the contract holders’ account value, plus any cumulative unrealized gains on the related assets impacting separate account liabilities. The contract holders’ account value exceeded the current fair value of the BOLI invested assets and cash by approximately $19 million and $42 million at December 31, 2025 and 2024, respectively.

Generally, investment income and investment gains and losses of the separate accounts accrue directly to the contract holder, and we do not include them in the consolidated statements of income. Revenues and expenses related to separate accounts consist of contractual fees and mortality, surrender and expense risk charges. Also, each separate account BOLI includes a negotiated capital gain and loss sharing arrangement between the company and the bank. A percentage of each separate account’s investment gains and losses representing contract fees and assessments accrues to us and is transferred from the separate account to our general account and is recognized as revenue or expense. We record as revenues separate account investment management fees in fee revenues of the consolidated statements of income.

Reinsurance

The Cincinnati Insurance Company offers reinsurance assumed for casualty (predominantly domestic exposure), specialty and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools.

Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and primarily earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium.

We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available.

We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do

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not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss.

Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid.

An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. At December 31, 2025, 2024 and 2023, the allowances, including changes in the amount for each period, were immaterial.

Income Taxes

We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in taxable income and financial statement income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves, international earnings and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income.

See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense.

Earnings per Share

Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method.

Land, Building and Equipment

We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting fees and internal payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three to 39.5 years) using straight-line and accelerated methods. Depreciation expense was $36 million for 2025, $34 million for 2024 and $30 million for 2023. We review our accumulated depreciation for our building, equipment and software assets and write off fully depreciated assets for obsolescence and nonuse. We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2025, 2024 or 2023.

Finance Receivables

Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. At December 31, 2025, 2024 and 2023, the allowance, including changes in the amount for each period, was immaterial.

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Employee Benefit Pension Plan

We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan.

Share-Based Compensation

We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10-year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three-year vesting term. We also grant performance-based restricted stock units that vest if certain market conditions are attained. In 2025, the CFC compensation committee approved share-based awards including incentive stock options, nonqualified stock options, service-based restricted and performance-based restricted stock units. See Note 17, Share-Based Associate Compensation Plans, for further details.

Goodwill and Intangible Assets

We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life consist of broker relationships and are amortized on a straight-line basis over the estimated useful life of 15 years. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles at September 30, which did not result in the recognition of an impairment loss. Within Cincinnati Global, and included in Other, the company held goodwill of $30 million and intangible assets with an indefinite life of $31 million at December 31, 2025 and 2024, respectively.

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Adopted Accounting Updates

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. We retrospectively adopted this ASU effective December 31, 2025. The adoption did not have a material impact on our company's consolidated financial position, results of operations, cash flows or disclosures.

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. A relevant expense caption is an expense caption presented on the face of the income statement that contains employee compensation, depreciation, intangible asset amortization and other captions. The ASU also requires a qualitative description of the remaining amount of relevant expense captions as well as total selling expenses on an interim basis and how selling expenses are defined on an annual basis. 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.

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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 December 31, 2025			gains			losses
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






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 December 31, 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 December 31, 2025 and 2024, respectively.

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The table below provides fair values and 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 December 31, 2025	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
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







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 December 31, 2025
Maturity dates:
Due in one year or less	$	993	$	990	5.4	%
Due after one year through five years	3,565		3,582		19.6
Due after five years through ten years	4,403		4,434		24.3
Due after ten years	9,491		9,265		50.7
Total	$	18,452	$	18,271	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.

The company had cash and fixed-maturity securities with a fair value of $115 million and $107 million, on deposit with various states in compliance with regulatory requirements at December 31, 2025 and 2024, respectively. In addition, cash and fixed-maturity securities deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $87 million and $91 million at December 31, 2025 and 2024, respectively. The company had common equities with a fair value of $229 million and $216 million, at December 31, 2025 and 2024, respectively, held in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations.

In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity, real estate investments and asset-backed securities issued by third-parties. The company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments.

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


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Investment income:
Interest	$	875	$	733	$	600
Dividends	280		283		282
Other	27		25		25
Total	1,182		1,041		907
Less investment expenses	17		16		13
Total	$	1,165	$	1,025	$	894

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	(13)	$	181	$	(17)
Unrealized gains and losses on securities still held, net	1,448		1,275		1,168



Subtotal	1,435		1,456		1,151
Fixed-maturity securities:
Gross realized gains	7		5		4
Gross realized losses	(2)		(95)		(5)
Change in allowance for credit losses, net	(30)		(26)		(17)
Write-down of impaired securities with intent to sell	—		—		(4)
Subtotal	(25)		(116)		(22)

Other	32		51		(2)
Total	$	1,442	$	1,391	$	1,127

The fair value of our equity portfolio was $12.694 billion and $11.185 billion at December 31, 2025 and 2024, respectively. Apple, Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $958 million and $891 million, which was 7.7% and 8.2% of our publicly traded common equities portfolio and 3.1% and 3.2% of the total investment portfolio at December 31, 2025 and 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $54 million, $33 million and $18 million at December 31, 2025, 2024 and 2023, respectively. Reductions in the allowance for credit losses for securities sold were $9 million and $11 million for the years ended December 31, 2025 and 2024, respectively, and none for the year ended December 31, 2023.

There were 2,597, 3,723 and 2,840 fixed-maturity and short-term investments in a total unrealized loss position of $397 million, $631 million and $687 million at December 31, 2025, 2024 and 2023, respectively. Of those totals, 13, 19 and 20 fixed-maturity securities had fair values below 70% of amortized cost at December 31, 2025, 2024 and 2023, respectively.

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NOTE 3 – Fair Value Measurements

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. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques:

Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.

The technique used for the Level 2 fixed-maturity securities is the application of market-based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to asset-backed securities, key inputs also include prepayment and default projections based on performance of the underlying collateral and current market data. Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor.

The Level 2 nonredeemable preferred equities technique used is the application of market-based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor.

Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:

◦Quotes from brokers or other external sources that are not considered binding;

◦Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or

◦Quotes from brokers or other external sources where the inputs are not deemed observable.

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The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2025 and 2024. We do not have any liabilities carried at fair value.


(Dollars in millions)	Level 1					Level 3
At December 31, 2025			Level 2			Total
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

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

We also held Level 1 cash and cash equivalents of $1.431 billion and $983 million at December 31, 2025 and 2024, respectively. Level 3 assets reported at fair value in our consolidated financial statements are not material, and therefore no further disclosures are provided.

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Fair Value Disclosure 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 consolidated financial statements.

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 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

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

Fair value of the note payable was determined based upon the outstanding balance at December 31, 2025 and 2024, because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively traded. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt was $793 million at December 31, 2025 and 2024. None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs.

The following table shows the fair value of our life policy loans, included in other invested assets:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At December 31, 2025
Life policy loans	$	—	$	—	$	43	$	43

At December 31, 2024
Life policy loans	$	—	$	—	$	41	$	41

Outstanding principal and interest for these life policy loans totaled $38 million and $36 million at December 31, 2025 and 2024, respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience.

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The following table shows fair value 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 December 31, 2025
Deferred annuities	$	—	$	—	$	530	$	530
Structured settlements	—		123		—		123
Total	$	—	$	123	$	530	$	653

At December 31, 2024
Deferred annuities	$	—	$	—	$	561	$	561
Structured settlements	—		127		—		127
Total	$	—	$	127	$	561	$	688

Recorded reserves for the deferred annuities were $554 million and $595 million at December 31, 2025 and 2024, respectively. Recorded reserves for the structured settlements were $111 million and $116 million at December 31, 2025 and 2024, respectively.

Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2025 and 2024, to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled.

Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2025 and 2024, to account for nonperformance risk. The structured settlements were classified as Level 2, as an active market does not exist, but fair value is based on observable inputs.

Cincinnati Financial Corporation - 2025 10-K - Page 137

NOTE 4 – Property Casualty Loss and Loss Expenses

We use actuarial methods, models, assumptions 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 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 finance 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.

Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects.

Our claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims.

For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves.

Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves.

Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings.

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


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Gross loss and loss expense reserves, January 1	$	9,937	$	8,975	$	8,336
Less reinsurance recoverable	269		362		405
Net loss and loss expense reserves, January 1	9,668		8,613		7,931



Net incurred loss and loss expenses related to:
Current accident year	6,531		5,672		5,173
Prior accident years	(196)		(236)		(215)
Total incurred	6,335		5,436		4,958
Net paid loss and loss expenses related to:
Current accident year	2,389		1,951		1,875
Prior accident years	2,602		2,430		2,401
Total paid	4,991		4,381		4,276

Net loss and loss expense reserves, December 31	11,012		9,668		8,613
Plus reinsurance recoverable	438		269		362
Gross loss and loss expense reserves, December 31	$	11,450	$	9,937	$	8,975

Cincinnati Financial Corporation - 2025 10-K - Page 138

The reserve for loss and loss expense in the consolidated balance sheets also included $57 million, $66 million and $75 million, at December 31, 2025, 2024 and 2023, respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided.

We experienced $196 million of favorable development on prior accident years including $130 million of favorable development in commercial lines, $4 million of favorable development in personal lines and $19 million of favorable development in excess and surplus lines during 2025. Within commercial lines, we recognized favorable development of $126 million for the commercial property line and $65 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $41 million for the commercial auto line and $21 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $49 million for the homeowner line of business and unfavorable reserve development of $36 million in the other personal line of business.

We experienced $236 million of favorable development on prior accident years including $138 million of favorable development in commercial lines, $26 million of favorable development in personal lines and $8 million of unfavorable development in excess and surplus lines during 2024. Within commercial lines, we recognized favorable development of $83 million for the workers' compensation line and $74 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $26 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $54 million for the homeowner line of business and unfavorable reserve development of $20 million in personal auto.

We experienced $215 million of favorable development on prior accident years including $123 million of favorable development in commercial lines, $64 million of favorable development in personal lines and $11 million of favorable development in excess and surplus lines during 2023. Within commercial lines, we recognized favorable development of $66 million for the workers' compensation line and $55 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $15 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $53 million for the homeowner line of business and $15 million in personal auto.

Included in our lines of business are asbestos and environmental claims. We carried $136 million and $119 million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2025 and 2024, respectively. The asbestos and environmental claims amounts for each respective year constituted less than 2.0% of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have no exposure to asbestos and environmental claims related to Cincinnati Global. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date.

Cincinnati Financial Corporation - 2025 10-K - Page 139

The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2025.


(Dollars in millions)	Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance		Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance		Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance		Total liabilities for loss and ALAE, net of reinsurance		Reinsurance recoverable on unpaid losses		Total liabilities for gross loss and loss expense reserves




Commercial casualty	$	7,653	$	4,165	$	137	$	3,625	$	51	$	3,676
Workers' compensation	1,736		1,078		329		987		51		1,038
Commercial auto	2,756		1,789		40		1,007		3		1,010
Commercial property	3,445		3,041		26		430		19		449
Personal auto	2,546		2,055		10		501		21		522
Homeowner	3,679		3,188		7		498		124		622
Excess and surplus	2,174		994		9		1,189		31		1,220
Other lines											2,266
Total liabilities for loss and ALAE reserves											10,803
Unallocated loss adjustment expense reserves											647
Gross loss and loss expense reserves											$	11,450

For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance.

In the following tables, commercial casualty, workers' compensation and excess and surplus lines each disclose 10 accident years of loss and ALAE reserves and the cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and the cumulative number of reported claims consistent with the number of years for which claims incurred typically remain outstanding.

Cincinnati Financial Corporation - 2025 10-K - Page 140

Commercial Casualty

The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)																					As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,																						Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	563	$	574	$	557	$	555	$	554	$	538	$	531	$	525	$	538	$	533		$	16	22
2017			610		597		577		571		555		554		553		575		578			21		22
2018					650		641		622		588		612		618		638		632			35		23
2019							672		643		607		669		682		718		736			66		21
2020									674		629		606		593		619		647			64		15
2021											714		697		697		694		691			132		15
2022													924		902		876		894			199		15
2023															950		843		841			301		12
2024																	1,004		969			587		10
2025																			1,132			916		7
Total																			$	7,653

Cumulative paid losses and ALAE, net of reinsurance
2016	$	46	$	126	$	228	$	331	$	395	$	434	$	466	$	485	$	498	$	506
2017			48		122		234		320		392		437		486		512		536
2018					44		148		253		345		441		505		542		567
2019							39		134		259		394		503		576		639
2020									33		102		242		345		437		521
2021											31		123		251		370		466
2022													37		141		311		472
2023															46		146		303
2024																	42		123
2025																			32
Total																			4,165
All outstanding liabilities before 2016, net of reinsurance																			137
Liabilities for loss and ALAE, net of reinsurance																			$	3,625

The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business:


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8	9	10
Average annual percentage payout	5.6%	12.6%	18.7%	16.9%	13.8%	9.6%	7.2%	4.1%	3.2%	1.5%

Cincinnati Financial Corporation - 2025 10-K - Page 141

Workers’ Compensation

The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)																					As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,																						Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	230	$	218	$	206	$	188	$	183	$	183	$	183	$	181	$	182	$	182		$	24	16
2017			218		208		190		183		172		167		160		159		159			22		15
2018					222		207		199		186		179		175		174		172			27		15
2019							224		215		202		188		178		174		172			32		14
2020									204		190		172		153		148		138			23		11
2021											202		190		183		174		169			38		11
2022													209		205		182		168			42		11
2023															221		188		171			52		10
2024																	197		193			74		8
2025																			212			102		7
Total																			$	1,736

Cumulative paid losses and ALAE, net of reinsurance
2016	$	46	$	97	$	119	$	131	$	141	$	146	$	148	$	150	$	152	$	154
2017			45		88		106		114		119		122		126		127		129
2018					48		95		115		127		133		135		138		138
2019							49		94		115		122		129		132		135
2020									37		68		82		96		101		104
2021											37		82		100		113		120
2022													37		76		94		103
2023															36		71		89
2024																	36		71
2025																			35
Total																			1,078
All outstanding liabilities before 2016, net of reinsurance																			329
Liabilities for loss and ALAE, net of reinsurance																			$	987

The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business:


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8	9	10
Average annual percentage payout	23.6%	24.6%	11.1%	6.5%	4.0%	2.0%	1.5%	0.8%	1.1%	1.0%

Cincinnati Financial Corporation - 2025 10-K - Page 142

Commercial Auto

The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)											As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,												Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2021		2022		2023		2024		2025
2021	$	470	$	477	$	465	$	463	$	470		$	18	39
2022			558		569		560		563			34		41
2023					550		544		560			58		38
2024							565		561			149		34
2025									602			283		30
Total									$	2,756

Cumulative paid losses and ALAE, net of reinsurance
2021	$	179	$	278	$	346	$	398	$	429
2022			217		332		410		474
2023					216		322		404
2024							196		291
2025									191
Total									1,789
All outstanding liabilities before 2021, net of reinsurance									40
Liabilities for loss and ALAE, net of reinsurance									$	1,007

The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	36.5%	19.2%	14.3%	11.2%	6.8%

Cincinnati Financial Corporation - 2025 10-K - Page 143

Commercial Property

The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)											As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,												Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2021		2022		2023		2024		2025
2021	$	607	$	586	$	576	$	575	$	573		$	3	14
2022			813		779		752		744			6		16
2023					833		786		768			9		14
2024							763		660			19		12
2025									700			173		9
Total									$	3,445

Cumulative paid losses and ALAE, net of reinsurance
2021	$	326	$	527	$	558	$	564	$	569
2022			393		691		727		736
2023					506		719		745
2024							429		595
2025									396
Total									3,041
All outstanding liabilities before 2021, net of reinsurance									26
Liabilities for loss and ALAE, net of reinsurance									$	430

The following table shows the average annual percentage payout of incurred losses for the commercial property line of business:


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	59.5%	32.0%	4.6%	1.1%	0.7%

Cincinnati Financial Corporation - 2025 10-K - Page 144

Personal Auto

The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)											As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,												Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2021		2022		2023		2024		2025
2021	$	350	$	343	$	342	$	344	$	344		$	2	80
2022			427		418		429		424			4		86
2023					466		474		478			10		93
2024							592		599			40		107
2025									701			149		112
Total									$	2,546

Cumulative paid losses and ALAE, net of reinsurance
2021	$	219	$	278	$	304	$	325	$	336
2022			277		349		382		406
2023					304		389		425
2024							372		473
2025									415
Total									2,055
All outstanding liabilities before 2021, net of reinsurance									10
Liabilities for loss and ALAE, net of reinsurance									$	501

The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	62.7%	17.3%	7.7%	5.8%	3.0%

Cincinnati Financial Corporation - 2025 10-K - Page 145

Homeowner

The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)											As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,												Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2021		2022		2023		2024		2025
2021	$	495	$	449	$	440	$	440	$	440		$	2	19
2022			552		505		500		503			4		20
2023					742		693		689			12		24
2024							842		793			35		24
2025									1,254			180		22
Total									$	3,679

Cumulative paid losses and ALAE, net of reinsurance
2021	$	285	$	405	$	424	$	431	$	435
2022			299		461		481		491
2023					468		637		663
2024							523		717
2025									882
Total									3,188
All outstanding liabilities before 2021, net of reinsurance									7
Liabilities for loss and ALAE, net of reinsurance									$	498

The following table shows the average annual percentage payout of incurred losses for the homeowner line of business:


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	65.7%	27.1%	4.1%	1.7%	0.9%

Cincinnati Financial Corporation - 2025 10-K - Page 146

Excess and Surplus Lines

The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:


(Dollars in millions, reported claims in thousands)																			As of December 31, 2025
Incurred losses and ALAE, net of reinsurance for the years ended December 31,																						Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims

Accident	Unaudited
Year	2016		2017		2018		2019		2020		2021		2022		2023		2024			2025
2016	$	93	$	87	$	84	$	82	$	90	$	91	$	88	$	89	$	91		$	90	$	2	3
2017			104		95		95		94		94		91		94		98			97		4		3
2018					116		109		110		108		107		105		111			112		5		3
2019							137		135		141		139		142		149			148		12		3
2020									172		172		160		152		165			167		17		4
2021											217		235		233		253			254		49		4
2022													294		280		285			291		90		4
2023															328		276			274		113		3
2024																	368			338		192		3
2025																				403		309		2
Total																				$	2,174

Cumulative paid losses and ALAE, net of reinsurance
2016	$	10	$	21	$	39	$	51	$	62	$	75	$	81	$	83	$	84		$	88
2017			11		23		41		57		68		77		88		90			92
2018					11		26		50		62		75		88		95			102
2019							13		34		55		79		102		116			128
2020									16		37		56		86		118			130
2021											17		45		82		132			167
2022													21		46		85			135
2023															15		43			83
2024																	29			54
2025																				15
Total																				994
All outstanding liabilities before 2016, net of reinsurance																				9
Liabilities for loss and ALAE, net of reinsurance																				$	1,189

The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses.


Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8	9	10
Average annual percentage payout	8.3%	11.1%	16.2%	15.8%	14.1%	10.7%	7.5%	3.9%	1.6%	4.2%

Cincinnati Financial Corporation - 2025 10-K - Page 147

NOTE 5 – Life Policy and Investment Contract Reserves

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 consolidated balance sheets:


(Dollars in millions)	At December 31,
	2025		2024
Life policy reserves:
Term	$	1,103	$	1,051
Whole life	426		405
Other	100		98
Subtotal	1,629		1,554
Investment contract reserves:
Deferred annuities	554		595
Universal life	589		586
Structured settlements	111		116
Other	109		109
Subtotal	1,363		1,406
Total life policy and investment contract reserves	$	2,992	$	2,960

Cincinnati Financial Corporation - 2025 10-K - Page 148

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


(Dollars in millions)	Years ended December 31,
	2025				2024				2023
	Term		Whole life		Term		Whole life		Term		Whole life
Present value of expected net premiums:
Balance, beginning of period	$	1,638	$	218	$	1,700	$	223	$	1,643	$	208
Beginning balance at original discount rate	1,719		228		1,712		225		1,708		217
Effect of changes in cash flow assumptions	(3)		—		(12)		1		(7)		(7)
Effect of actual variances from expected experience	(24)		(1)		(20)		(4)		(20)		3
Adjusted beginning of period balance	1,692		227		1,680		222		1,681		213
Issuances	162		20		149		25		143		31
Interest accrual	76		10		74		10		72		9
Net premiums collected	(187)		(29)		(184)		(29)		(184)		(28)
Ending balance at original discount rate	1,743		228		1,719		228		1,712		225
Effect of changes in discount rate assumptions	(34)		(3)		(81)		(10)		(12)		(2)
Balance, end of period	1,709		225		1,638		218		1,700		223

Present value of expected future policy benefits:
Balance, beginning of period	2,668		623		2,751		657		2,584		614
Beginning balance at original discount rate	2,812		646		2,765		628		2,692		607
Effect of changes in cash flow assumptions	(11)		(1)		(29)		—		2		(10)
Effect of actual variances from expected experience	(36)		(1)		(32)		(4)		(24)		3
Adjusted beginning of period balance	2,765		644		2,704		624		2,670		600
Issuances	163		20		149		25		143		30
Interest accrual	128		33		125		32		121		31
Benefits paid	(193)		(35)		(166)		(35)		(169)		(33)
Ending balance at original discount rate	2,863		662		2,812		646		2,765		628
Effect of changes in discount rate assumptions	(69)		(12)		(144)		(23)		(14)		29
Balance, end of period	2,794		650		2,668		623		2,751		657

Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums	1,085		425		1,030		405		1,051		434
Impact of flooring at cohort level	18		1		21		—		15		—
Net life policy reserves	1,103		426		1,051		405		1,066		434
Less reinsurance recoverable at original discount rate	(67)		(25)		(94)		(25)		(97)		(23)
Less effect of discount rate assumption changes on reinsurance recoverable	(7)		(3)		(8)		(3)		(10)		(5)
Net life policy reserves, after reinsurance recoverable	$	1,029	$	398	$	949	$	377	$	959	$	406

Weighted-average duration of the net life policy reserves in years	11		15		11		15		11		16

The total impact of flooring at cohort level in the above table includes the effect of discount rate assumption changes of $2 million, $3 million and $2 million at December 31, 2025, 2024 and 2023, respectively.

Cincinnati Financial Corporation - 2025 10-K - Page 149

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 December 31,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Term
Expected future benefit payments	$	5,032	$	2,794	$	4,883	$	2,668
Expected future gross premiums	4,703		2,768		4,556		2,625
Whole life
Expected future benefit payments	$	1,746	$	650	$	1,718	$	623
Expected future gross premiums	705		428		694		412

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


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Gross premiums
Term	$	304	$	297	$	289
Whole life	55		54		52

Total	$	359	$	351	$	341
Interest accretion
Term	$	52	$	51	$	49
Whole life	23		22		22

Total	$	75	$	73	$	71

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the years ended December 31, 2025, 2024 and 2023, respectively.

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


	At December 31,
	2025		2024
Term
Interest accretion rate	5.32	%	5.22	%
Current discount rate	4.91		5.17
Whole life
Interest accretion rate	5.85	%	5.88	%
Current discount rate	5.63		5.75

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

Cincinnati Financial Corporation - 2025 10-K - Page 150

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


(Dollars in millions)	Years ended December 31,
	2025						2024						2023
	Deferred annuity			Universal life			Deferred annuity			Universal life			Deferred annuity			Universal life
Balance, beginning of period	$	595		$	456		$	656		$	457		$	734		$	457
Premiums received	29			36			35			37			44			39
Policy charges	—			(40)			—			(40)			—			(39)
Surrenders and withdrawals	(75)			(13)			(105)			(12)			(130)			(13)
Benefit payments	(16)			(8)			(13)			(5)			(14)			(6)
Interest credited	21			20			22			19			22			19

Balance, end of period	$	554		$	451		$	595		$	456		$	656		$	457

Weighted average crediting rate	3.73		%	4.42		%	3.68		%	4.39		%	3.51		%	4.30		%
Net amount at risk	$	—		$	3,682		$	—		$	3,833		$	—		$	3,949
Cash surrender value	547			424			589			427			651			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 December 31, 2025
Deferred annuity
1.00-3.00%	$	129	$	127	$	15	$	239	$	510
3.01-4.00%	44		—		—		—		44

Total	$	173	$	127	$	15	$	239	$	554
Universal life
1.00-3.00%	$	—	$	54	$	56	$	16	$	126
3.01-4.00%	51		—		5		—		56
Greater than 4.00%	269		—		—		—		269
Total	$	320	$	54	$	61	$	16	$	451

At December 31, 2024
Deferred annuity
1.00-3.00%	$	4	$	297	$	13	$	234	$	548
3.01-4.00%	47		—		—		—		47

Total	$	51	$	297	$	13	$	234	$	595
Universal life
1.00-3.00%	$	—	$	55	$	64	$	5	$	124
3.01-4.00%	50		—		5		—		55
Greater than 4.00%	277		—		—		—		277
Total	$	327	$	55	$	69	$	5	$	456

Cincinnati Financial Corporation - 2025 10-K - Page 151

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)	Years ended December 31,
	2025		2024		2023
Balance, beginning of period	$	130	$	128	$	121

Balance, beginning of period before shadow reserve adjustments	131		129		123
Effect of changes in cash flow assumptions	(1)		(2)		(6)
Effect of actual variances from expected experience	3		3		—
Adjusted beginning of period balance	133		130		117
Interest accrual	5		4		4
Excess death benefits	(13)		(13)		(6)
Attributed assessments	12		12		12
Effect of changes in interest rate assumptions	1		(2)		2
Balance, end of period before shadow reserve adjustments	138		131		129
Shadow reserve adjustments	—		(1)		(1)
Balance, end of period	138		130		128
Less reinsurance recoverable, end of period	5		7		6

Net other additional liability, after reinsurance recoverable	$	143	$	137	$	134

Weighted-average duration of the other additional liability in years	26		29		32

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


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Balance, beginning of period	$	952	$	925	$	892
Interest credited before policy charges	46		42		42

Benefit payments	(11)		(6)		(10)


Other	(6)		(9)		1
Balance, end of period	$	981	$	952	$	925

Cash surrender value	$	977	$	948	$	917

Cincinnati Financial Corporation - 2025 10-K - Page 152

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 consolidated statements of income in 2025, 2024 and 2023, 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)	Years ended December 31,
	2025		2024		2023
Property casualty:
Deferred policy acquisition costs asset, January 1	$	886	$	749	$	682
Capitalized deferred policy acquisition costs	1,908		1,748		1,488
Amortized deferred policy acquisition costs	(1,820)		(1,611)		(1,421)
Deferred policy acquisition costs asset, December 31	$	974	$	886	$	749

Life:
Deferred policy acquisition costs asset, January 1	$	356	$	344	$	331
Capitalized deferred policy acquisition costs	45		42		42
Amortized deferred policy acquisition costs	(31)		(30)		(29)

Deferred policy acquisition costs asset, December 31	$	370	$	356	$	344

Consolidated:
Deferred policy acquisition costs asset, January 1	$	1,242	$	1,093	$	1,013
Capitalized deferred policy acquisition costs	1,953		1,790		1,530
Amortized deferred policy acquisition costs	(1,851)		(1,641)		(1,450)

Deferred policy acquisition costs asset, December 31	$	1,344	$	1,242	$	1,093

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


(Dollars in millions)
Year ended December 31, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	245	$	52	$	8	$	51	$	356
Capitalized deferred policy acquisition costs	37		6		1		1		45
Amortized deferred policy acquisition costs	(25)		(3)		(1)		(2)		(31)
Balance, end of period	$	257	$	55	$	8	$	50	$	370

Year ended December 31, 2024
Balance, beginning of period	$	236	$	48	$	8	$	52	$	344
Capitalized deferred policy acquisition costs	32		7		1		2		42
Amortized deferred policy acquisition costs	(23)		(3)		(1)		(3)		(30)
Balance, end of period	$	245	$	52	$	8	$	51	$	356

Year ended December 31, 2023
Balance, beginning of period	$	228	$	43	$	7	$	53	$	331
Capitalized deferred policy acquisition costs	30		8		2		2		42
Amortized deferred policy acquisition costs	(22)		(3)		(1)		(3)		(29)
Balance, end of period	$	236	$	48	$	8	$	52	$	344

Cincinnati Financial Corporation - 2025 10-K - Page 153

NOTE 7 – Note Payable

We had one unsecured revolving credit facility through multiple commercial banks that was due to expire on February 4, 2026. On October 10, 2025, we terminated our $300 million credit agreement and simultaneously entered into a new $400 million unsecured revolving credit agreement expiring on October 10, 2030, with two optional one-year extensions. The credit facility is fully subscribed among four lenders and includes a $400 million accordion feature, a $400 million sublimit for letters of credit, and a $75 million sublimit for swing line loans. Terms and conditions of the agreement include a debt-to-total capital maximum of 35%. We had no compensating balance requirements on short-term debt for either 2025 or 2024. The line of credit had $25 million drawn at both December 31, 2025 and 2024. The interest rate charged on our borrowings on these credit agreements ranged from 4.88% to 5.34% during 2025 and ranged from 5.56% to 6.34% during 2024. In addition, we have letters of credit related to our Cincinnati Re operations with no amounts drawn at December 31, 2025 and 2024. On September 12, 2024, we terminated our $94 million unsecured letter of credit agreement, which provided a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's, and replaced the letter of credit agreement with common equities held in Lloyd's trust accounts.

Cincinnati Financial Corporation - 2025 10-K - Page 154

NOTE 8 – Long-Term Debt and Lease Obligations

This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers:


(Dollars in millions)			Book value				Principal amount
Interest rate	Year of issue		At December 31,				At 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 finance lease term for equipment and autos is generally three to six years while the operating lease term for real estate properties is typically five years. Lease obligations totaled $71 million and $60 million in 2025 and 2024, respectively. Below are the lease obligations we expect to pay through 2031 and thereafter, including $8 million of interest for finance and operating leases:


(Dollars in millions)	Years ended December 31,
	2026		2027		2028		2029		2030		2031 and thereafter
Finance lease obligations	$	18	$	15	$	13	$	10	$	6	$	3
Operating lease obligations	3		3		2		2		2		2
Total lease obligations	$	21	$	18	$	15	$	12	$	8	$	5

The following table provides lease cost and other information:


(Dollars in millions)	Years ended December 31,
	2025			2024			2023
Lease cost:
Finance lease cost	$	18		$	16		$	14
Operating lease cost	3			3			3
Total lease cost	$	21		$	19		$	17

Other information finance leases:
Finance cash outflows	$	18		$	17		$	16
Weighted average discount rate	5.06		%	4.88		%	4.35		%
Weighted average remaining lease term in years	3.87			3.96			3.89

Other information operating leases:
Operating cash outflows	$	4		$	3		$	3
Weighted average discount rate	5.21		%	4.44		%	4.66		%
Weighted average remaining lease term in years	4.06			3.47			4.30

Cincinnati Financial Corporation - 2025 10-K - Page 155

NOTE 9 – Shareholders’ Equity and Dividend Restrictions

Declared cash dividends per share were $3.48, $3.24 and $3.00 for the years ended December 31, 2025, 2024 and 2023, respectively.

Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $550 million, $290 million and $526 million in 2025, 2024 and 2023, respectively. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2026, the total that our lead insurance subsidiary may pay in dividends is approximately $975 million.

Dividend payments from Cincinnati Global to the parent company are subject to regulation by U.K. law. Cincinnati Global paid no dividends to the parent company in 2025, 2024 or 2023.

Cincinnati Financial Corporation - 2025 10-K - Page 156

Accumulated Other Comprehensive Income

The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life policy reserves, reinsurance recoverable and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI).


(Dollars in millions)	2025						2024						2023
	Before tax		Income tax		Net		Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, January 1	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)	$	(847)	$	(182)	$	(665)


OCI before investment gains and losses, net, recognized in net income	347		74		273		(99)		(20)		(79)		255		55		200
Investment gains and losses, net, recognized in net income	25		5		20		116		24		92		22		4		18
OCI	372		79		293		17		4		13		277		59		218

AOCI, December 31	$	(181)	$	(40)	$	(141)	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)

Pension obligations:
AOCI, January 1	$	75	$	17	$	58	$	30	$	8	$	22	$	36	$	9	$	27
OCI excluding amortization recognized in net income	13		3		10		44		9		35		2		1		1
Amortization recognized in net income	(3)		(1)		(2)		1		—		1		(8)		(2)		(6)
OCI	10		2		8		45		9		36		(6)		(1)		(5)
AOCI, December 31	$	85	$	19	$	66	$	75	$	17	$	58	$	30	$	8	$	22

Life policy reserves, reinsurance recoverable and other:
AOCI, January 1	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)	$	29	$	5	$	24


OCI before investment gains and losses, net, recognized in net income	(33)		(7)		(26)		98		21		77		(42)		(8)		(34)
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—		—		—		—
OCI	(33)		(7)		(26)		98		21		77		(42)		(8)		(34)
AOCI, December 31	$	52	$	11	$	41	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)

Summary of AOCI:
AOCI, January 1	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)	$	(782)	$	(168)	$	(614)


Investments OCI	372		79		293		17		4		13		277		59		218
Pension obligations OCI	10		2		8		45		9		36		(6)		(1)		(5)
Life policy reserves, reinsurance recoverable and other OCI	(33)		(7)		(26)		98		21		77		(42)		(8)		(34)
Total OCI	349		74		275		160		34		126		229		50		179

AOCI, December 31	$	(44)	$	(10)	$	(34)	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)

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

Cincinnati Financial Corporation - 2025 10-K - Page 157

NOTE 10 – 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 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)	Years ended December 31,
	2025		2024		2023
Direct written premiums	$	9,891	$	8,994	$	7,784
Assumed written premiums	686		676		597
Ceded written premiums	(495)		(427)		(335)
Net written premiums	$	10,082	$	9,243	$	8,046

Direct earned premiums	$	9,474	$	8,338	$	7,407
Assumed earned premiums	673		642		569
Ceded earned premiums	(494)		(412)		(331)
Earned premiums	$	9,653	$	8,568	$	7,645

Direct incurred loss and loss expenses	$	6,446	$	5,106	$	4,843
Assumed incurred loss and loss expenses	472		355		280
Ceded incurred loss and loss expenses	(583)		(25)		(165)
Incurred loss and loss expenses	$	6,335	$	5,436	$	4,958

Our life insurance company purchases reinsurance for protection of a portion of 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)	Years ended December 31,
	2025		2024		2023
Direct earned premiums	$	412	$	404	$	394
Ceded earned premiums	(82)		(83)		(81)
Earned premiums	$	330	$	321	$	313

Direct contract holders' benefits incurred	$	378	$	358	$	391
Ceded contract holders' benefits incurred	(73)		(57)		(75)
Contract holders' benefits incurred	$	305	$	301	$	316

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

Cincinnati Financial Corporation - 2025 10-K - Page 158

NOTE 11 – Income Taxes

The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows:


(Dollars in millions)	At December 31,
	2025		2024
Deferred tax assets:
Unearned premiums	$	210	$	193
Loss and loss expense reserves	168		141
Net operating loss on international earnings	13		19

Foreign tax credits	34		23
Other	62		80


Total gross deferred tax assets	487		456
Deferred tax liabilities:
Investment gains and other, net	1,783		1,434
Deferred acquisition costs	229		212
Life policy reserves	86		96
Deferred international earnings	77		56
Investments	56		55
Other	89		79
Total gross deferred tax liabilities	2,320		1,932
Net deferred income tax liability	$	1,833	$	1,476

Deferred tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount recognized for tax purposes.

Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets on our U.S. domestic operations will be realized. As a result, we have no valuation allowance at December 31, 2025 and 2024, for our U.S. domestic operations.

For financial reporting purposes, income before income taxes includes the following components:


(Dollars in millions)	For the years ended December 31,
	2025		2024		2023
United States	$	2,890	$	2,766	$	2,195
International	90		92		81
Total income before income taxes	$	2,980	$	2,858	$	2,276

Cincinnati Financial Corporation - 2025 10-K - Page 159

The provision for income taxes consists of:


(Dollars in millions)	For the years ended December 31,
	2025		2024		2023
Provision for income taxes:
Current – United States	$	296	$	445	$	209

International	8		4		1
Total current	304		449		210
Deferred – United States	271		101		216

International	12		16		7
Total deferred	283		117		223
Total provision for income taxes	$	587	$	566	$	433

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


(Dollars in millions)	Years ended December 31,
	2025				2024				2023
Tax at statutory rate:	$	626	21.0	%	$	600	21.0	%	$	478	21.0	%
Increase (decrease) resulting from:
Nontaxable or nondeductible items
Tax-exempt income from municipal bonds	(23)		(0.8)		(21)		(0.7)		(21)		(0.9)
Dividend received exclusion	(21)		(0.7)		(22)		(0.8)		(22)		(1.0)
Other nontaxable or nondeductible items	10		0.3		3		0.1		5		0.2


Other	(5)		(0.1)		6		0.2		(7)		(0.3)
Provision for income taxes	$	587	19.7	%	$	566	19.8	%	$	433	19.0	%

The increase (decrease) resulting from Other in the table above includes the effect of state and local income taxes, the majority of which related to two states for the years ended December 31, 2025, 2024 and 2023.

The provision for federal income taxes is based upon the filing of a consolidated income tax return for the company and its domestic subsidiaries within the United States. We had no operating or capital loss carryforwards in the United States at December 31, 2025 and 2024. As more fully discussed below, Cincinnati Global, has operating loss carryforwards in the United Kingdom.

The One Big Beautiful Bill Act

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

and do not have a material impact on our consolidated financial statements.

Unrecognized Tax Benefits

During the third quarter of 2024, we were notified by the IRS that the audit of tax years ended December 31, 2021 and 2020, had concluded. The statute of limitations closed in September 2025 for these two tax years. The statute of limitations is closed for tax years ended December 31, 2021, and earlier, and is open for tax years ended December 31, 2022, and later.

In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions and record these amounts in our provision for income taxes for both current and deferred taxes. The statute of limitations for state income tax purposes has closed for tax years ended December 31, 2021, and earlier.

Cincinnati Global operates in the United Kingdom and as such, is subject to tax in that jurisdiction. The statute of limitations for tax return review by His Majesty’s Revenue and Customs (HMRC) has closed for tax returns with a submission deadline ended December 31, 2023, and earlier. There are currently no tax returns under review by HMRC.

Cincinnati Financial Corporation - 2025 10-K - Page 160

Income taxes paid in our consolidated statements of cash flows are shown net of refunds received. We received a $1 million refund in 2025, no refund in 2024 and a $2 million refund in 2023.

Income taxes paid net of refunds received consists of:


(Dollars in millions)	For the years ended December 31,
	2025		2024		2023
Income taxes paid net of refunds received:






United States	$	211	$	386	$	135
International	9		9		1
Total income taxes paid net of refunds received	$	220	$	395	$	136

Cincinnati Global

Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets of Cincinnati Global will be realized. As a result, we had no valuation allowance at December 31, 2025, 2024 or 2023.

The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance:


(Dollars in millions)	Years ended December 31,
		2025		2024		2023
Valuation allowance, January 1		$	—	$	—	$	31

Current year operations		—		—		(31)
Valuation allowance, December 31		$	—	$	—	$	—

Cincinnati Global had no operating loss carryforwards in the United States and $50 million in the United Kingdom at December 31, 2025, and none in the United States and $78 million in the United Kingdom at December 31, 2024. These Cincinnati Global losses can only be utilized within the Cincinnati Global group in both the United States and in the United Kingdom and cannot offset the income of our domestic operations in the United States.

Cincinnati Financial Corporation - 2025 10-K - Page 161

NOTE 12 – 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)		Years ended December 31,
	2025			2024			2023
Numerator:
Net income—basic and diluted		$	2,393		$	2,292		$	1,843
Denominator:
Basic weighted-average common shares outstanding		156.1			156.4			157.0
Effect of share-based awards:
Stock options		1.0			0.8			0.7
Nonvested shares		0.6			0.6			0.4
Diluted weighted-average shares		157.7			157.8			158.1
Earnings per share:
Basic		$	15.32		$	14.65		$	11.74
Diluted		15.17			14.53			11.66
Number of anti-dilutive share-based awards		0.4			1.1			1.3

The sources of dilution of our common shares are certain equity-based awards as discussed in Note 17, Share-Based Associate Compensation Plans. The above table includes the number of anti-dilutive share-based awards at year-end 2025, 2024 and 2023.

Cincinnati Financial Corporation - 2025 10-K - Page 162

NOTE 13 – Employee Retirement Benefits

We sponsor a qualified defined benefit pension plan that we closed entry into for new associates as of June 30, 2008, and only participants 40 years of age or older as of August 31, 2008, could elect to continue to participate. During 2008, we changed the form of retirement benefit we offer some associates to a company match on contributions to a 401(k) plan as further explained below. For participants remaining in the pension plan, we continue to fund future benefit obligations. Benefits for the defined benefit pension plan are based on years of credited service and compensation level. Contributions are based on the prescribed method defined in the Pension Protection Act. Our net periodic benefit cost is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. The qualified plan has been amended to allow for distribution of vested balances to terminated participants.

We sponsor a defined contribution plan (401(k) plan) for eligible associates with matching company contributions totaling $32 million, $29 million and $26 million during the years 2025, 2024 and 2023, respectively. Associates who are not accruing benefits under the pension plan are eligible to receive the company match of up to 6% of cash compensation. Participants vest in the company match for the 401(k) plan after three years of eligible service.

We maintain a supplemental executive retirement plan (SERP) with a benefit obligation of $15 million at

year-end 2025 and $13 million at year-end 2024, which is included in the projected benefit obligation. The company also makes available to a select group of associates the CFC Top Hat Savings Plan, a nonqualified deferred compensation plan, which had a fair value of $102 million and $87 million at December 31, 2025 and 2024, respectively. Company matching contributions to the CFC Top Hat Savings Plan totaled approximately $2 million, $1 million and $1 million for the years 2025, 2024 and 2023, respectively.

Defined Benefit Pension Plan Assumptions

We evaluate our pension plan assumptions annually and update them as necessary. This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans:


	Qualified Pension Plan				SERP
	2025		2024		2025		2024
Discount rate	5.56	%	5.68	%	5.43	%	5.66	%
Rate of compensation increase	2.25-3.25		4.00		2.25-3.25		4.00

To determine the discount rate for each plan, a theoretical settlement portfolio of high-quality rated corporate bonds was chosen to provide payments approximately matching the plan’s projected benefit payments. A single interest rate for each plan was determined resulting in a discounted value of the plan's benefit payments that equates to the market value of the selected bonds. The discount rate is reflective of current market interest rate conditions and our plan's liability characteristics. Based on this analysis, we decreased the rate from the prior year by 0.12 percentage points for the qualified pension plan and by 0.23 percentage points for the SERP. Compensation increase assumptions reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. The mortality assumption is updated annually to reflect the updated mortality scales. The Pri-2012 tables with Scale MP-2021 was used for the years 2025, 2024 and 2023.

This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans:


	Qualified Pension Plan						SERP
	2025		2024		2023		2025		2024		2023
Discount rate	5.68	%	5.04	%	5.34	%	5.66	%	5.11	%	5.42	%
Expected return on plan assets	7.00		7.00		7.00		n/a		n/a		n/a
Rate of compensation increase	4.00		4.00		4.50		4.00		4.00		4.50

The discount rate was increased by 0.64 percentage points for the qualified pension plan and 0.55 percentage points for the SERP due to market interest rate conditions at the beginning of 2025. The discount rate assumptions for our benefit obligation generally track with high-quality rated corporate bond yields chosen in our theoretical settlement portfolio, and yearly adjustments reflect any changes to those bond yields. We believe the expected

Cincinnati Financial Corporation - 2025 10-K - Page 163

return on plan assets is representative of the expected long-term rate of return on these assets, which is consistent with 2025 expectations of interest rates and based partially on the fact that the plan’s common stock holdings pay dividends. We review historical actual return on plan assets when determining our expected long-term rate of return. Total portfolio return for 2025 was 13.1% and for 2024 was 18.7%. Our compensation increase assumptions in 2025 reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases.

Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows:


(Dollars in millions)	At December 31,
	2025		2024
Change in projected benefit obligation:
Benefit obligation, January 1	$	258	$	263
Service cost	5		6
Interest cost	14		13
Actuarial loss (gain)	7		(9)
Benefits paid	(21)		(15)

Projected benefit obligation, December 31	$	263	$	258

Change in plan assets:
Fair value of plan assets, January 1	$	358	$	317
Actual return on plan assets	43		56

Benefits paid	(21)		(15)
Fair value of plan assets, December 31	$	380	$	358

Funded status, December 31	$	117	$	100

Accumulated benefit obligation	$	252	$	243

Our funded status for 2025 compared to 2024 improved primarily due to a positive return on plan assets, offset by increases in the actuarial loss resulting from the difference between actual and expected experience and increases in discount rates.

Cincinnati Financial Corporation - 2025 10-K - Page 164

A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31:


(Dollars in millions)	At December 31,
	2025		2024
Pension amounts recognized in the consolidated balance sheets:

Other assets	$	117	$	100
Total	$	117	$	100

Pension amounts recognized in accumulated other comprehensive income:
Net actuarial gain	$	(86)	$	(76)
Prior service cost	1		1
Total	$	(85)	$	(75)

Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31:


(Dollars in millions)	Years ended December 31,
	2025		2024		2023
Net periodic benefit cost:
Service cost	$	5	$	6	$	6
Non-service costs (benefit):
Interest cost	14		13		13
Expected return on plan assets	(23)		(21)		(21)
Amortization of actuarial (gain) loss and prior service cost	(3)		1		(2)
Other	—		—		(6)
Net periodic benefit	$	(7)	$	(1)	$	(10)

Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial gain	$	(13)	$	(44)	$	(2)
Amortization and recognition of actuarial gain (loss)	3		(1)		8


Total recognized in other comprehensive (income) loss	$	(10)	$	(45)	$	6
Total recognized in net periodic benefit and other comprehensive income	$	(17)	$	(46)	$	(4)

The 2025 change in the amount recognized in other comprehensive income is largely due to decreases in actuarial gain resulting from differences between actual and expected experience, increases in discount rates, and less favorable return on assets compared to 2024.

Service costs and non-service costs (benefit) are allocated in the same proportion primarily to underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the consolidated statements of income for 2025, 2024 and 2023.

Defined Benefit Pension Plan Assets

The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our internal investment department; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored, while also holding the appropriate level of cash and fixed-maturity securities to provide for obligations in the near term. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions.

Cincinnati Financial Corporation - 2025 10-K - Page 165

Including cash, during 2025 we held approximately 82% of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 9% in domestic corporate fixed-maturity investments, 7% percent in cash, 1% in United States government fixed-maturity investments, and 1% in states, municipalities and taxable political subdivisions fixed-maturity investments. Our common equity portfolio consisted of 32% in the information technology sector, 19% in the financial sector, 19% in the industrials sector, and 12% in the healthcare sector, at year-end 2025. No additional sectors accounted for 10% or more of our common equity portfolio balance at year-end 2025.

Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2025 and 2024. The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2025 and 2024. Excluded from the table below is cash on hand of $26 million and $36 million at December 31, 2025 and 2024, respectively.


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At December 31, 2025
Fixed maturities, available for sale:
United States government	$	5	$	—	$	—	$	5
Corporate	—		32		—		32
States, municipalities and political subdivisions	—		5		—		5
Total fixed maturities, available for sale	5		37		—		42
Common equities	312		—		—		312
Total	$	317	$	37	$	—	$	354

At December 31, 2024
Fixed maturities, available for sale:
United States government	$	13	$	—	$	—	$	13
Corporate	—		7		—		7
States, municipalities and political subdivisions	—		5		—		5
Total fixed maturities, available for sale	13		12		—		25
Common equities	297		—		—		297
Total	$	310	$	12	$	—	$	322

Our pension plan assets included 100,610 shares of the company’s common stock, which had a fair value of $16 million and $14 million at December 31, 2025 and 2024, respectively. The defined benefit pension plan did not purchase or sell any of our common stock during 2025 or 2024. The company paid less than $1 million in both 2025 and 2024 in cash dividends on our common stock to the pension plan.

We estimate $11 million of benefit payments from the SERP during 2026. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service:


(Dollars in millions)	Years ended December 31,
	2026		2027		2028		2029		2030		2031 - 2035
Expected future benefit payments	$	40	$	31	$	32	$	31	$	29	$	105

Cincinnati Financial Corporation - 2025 10-K - Page 166

NOTE 14 – Statutory Accounting Information

Insurance companies’ statutory financial statements are presented on the basis of accounting practices prescribed or permitted by applicable state insurance departments of domicile. Insurance companies use statutory accounting practices (SAP) as recognized by various states. We have adopted the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual, version effective January 1, 2001, and updates through the current year as a component of prescribed or permitted practices by laws of the state of domicile. The primary differences between SAP and GAAP include the valuation of investment gains and losses, expensing of policy acquisition costs, actuarial assumptions for life insurance reserves and deferred income taxes based on differences in statutory and taxable income.

Statutory net income and capital and surplus are determined in accordance with SAP prescribed or permitted by insurance regulatory authorities for five legal entities, our lead insurance subsidiary and its four insurance subsidiaries. Statutory capital and surplus for our insurance subsidiary, The Cincinnati Insurance Company, includes capital and surplus of its four insurance subsidiaries. All capital and surplus amounts exceed statutory risk-based capital requirements. The statutory net income and statutory capital and surplus are presented below:


(Dollars in millions)	Net income						Capital and surplus
	Years ended December 31,						At December 31,
	2025		2024		2023		2025		2024
The Cincinnati Insurance Company	$	962	$	1,245	$	607	$	9,749	$	8,603
The Cincinnati Casualty Company	18		28		13		588		555
The Cincinnati Indemnity Company	7		6		3		142		138
The Cincinnati Specialty Underwriters Insurance Company	129		86		76		810		699
The Cincinnati Life Insurance Company	120		96		90		623		508

NOTE 15 – Transactions With Affiliated Parties

We paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $11 million, $10 million and $9 million on premium volume of $60 million, $55 million and $51 million for 2025, 2024 and 2023, respectively.

Cincinnati Financial Corporation - 2025 10-K - Page 167

NOTE 16 – 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.

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NOTE 17 – Share-Based Associate Compensation Plans

Four equity compensation plans currently permit us to grant various types of equity awards. We currently grant incentive stock options, nonqualified stock options, service-based restricted stock units and performance-based restricted stock units to associates, including some with market-based performance objectives under our shareholder-approved plans. We also have a Holiday Stock Plan that permits annual awards of one share of common stock to each full-time associate for each full calendar year of service up to a maximum of 10 shares. One of our equity compensation plans permits us to grant stock to our outside directors as a component of their annual compensation. We used treasury shares for share-based compensation award issues or exercises during 2025 and 2024.

Share-based compensation cost after tax was $37 million, $37 million and $32 million for the years ended

December 31, 2025, 2024 and 2023, respectively. The related income tax benefit recognized was $9 million,$9 million and $8 million for the years ended December 31, 2025, 2024 and 2023, respectively. Options exercised during the years ended December 31, 2025, 2024 and 2023, had intrinsic value of $26 million, $32 million and $14 million, respectively. Intrinsic value is the market price less the exercise price. Options vested during the years ended December 31, 2025 and 2024 had total intrinsic value of $18 million and $12 million, respectively. Options vested during the year ended December 31, 2023 had no intrinsic value because the weighted average exercise price was greater than the market price on the reporting date.

As of December 31, 2025, we had $44 million of unrecognized total compensation cost related to nonvested stock options and restricted stock unit awards. That cost will be recognized over a weighted-average period of 1.7 years.

Stock Options

Stock options are granted to associates at an exercise price equal to the fair value as determined by the average high and low sales price reported on the Nasdaq Global Select Market for the grant date and are exercisable over 10-year periods. The stock options generally vest ratably over a three-year period. In determining the share-based compensation amounts, we estimate the fair value of each option granted on the date of grant using the Black Scholes pricing model. We make the following assumptions to develop the Black Scholes pricing model as follows:

Weighted-average expected term is based on historical experience of similar awards with consideration for current exercise trends.
Expected volatility is based on our stock price over a historical period that approximates the expected term.
Dividend yield is determined by dividing the annualized per share dividend by the stock price on the date of grant.
Risk-free rates are the implied yield currently available on zero-coupon U.S. Treasury issues with a remaining term approximating the expected term.

The following weighted average assumptions were used in determining fair value for option grants issued:


	2025	2024	2023
Weighted-average expected term	8-9 years	8-9 years	8-9 years
Expected volatility	29.26-30.51%	28.94-29.98%	28.25-29.61%
Dividend yield	2.53%	2.88%	2.39%
Risk-free rates	4.57-4.61%	4.38-4.41%	3.98-3.99%
Weighted-average fair value of options granted during the period	$43.92	$33.05	$38.22

Cincinnati Financial Corporation - 2025 10-K - Page 169

Below is a summary of option information for the year 2025:


(Dollars in millions, except exercise price. Shares in thousands)	Shares	Weighted- average exercise price		Aggregate intrinsic value		Weighted-average remaining contractual life
Outstanding option shares at January 1, 2025	3,504	$	98.54
Granted	382	137.56
Exercised	(370)	78.91
Forfeited or expired	(56)	96.29
Outstanding option shares at December 31, 2025	3,460	104.98		$	202	5.22 years



Options exercisable at end of period	2,684	$	98.85	$	173	4.28 years

Cash received from the exercise of options was $10 million, $10 million and $9 million for the years ended December 31, 2025, 2024 and 2023, respectively. We acquired 125,845, 259,224 and 72,549 shares totaling

$19 million, $33 million and $8 million, respectively, from associates in consideration for option exercises during 2025, 2024 and 2023. The weighted-average remaining contractual life for options expected to vest as of December 31, 2025, was 8.46 years.

Under all active shareholder approved plans, a total of 19.3 million shares were authorized to be granted. At December 31, 2025, 10.5 million shares remained available for future issuance under the plans. During 2025, we granted 11,546 shares of common stock to our directors for 2024 board service fees.

Restricted Stock Units

Service-based restricted stock units granted to associates are valued at fair value of the shares on the date of grant less the present value of the dividends that holders of restricted stock units do not receive on the shares underlying the restricted stock units during the vesting period. Service-based restricted stock units generally cliff vest three years after the date of grant. We also grant restricted stock units which vest on a three year ratable vesting schedule. Service-based restricted stock units vested during the year had an intrinsic value of $23 million, $23 million and $22 million for the years ended December 31, 2025, 2024 and 2023, respectively.

We have performance-based awards that vest on the first day of March after a three-calendar-year performance period. These awards vest according to the level of three-year total shareholder return achieved compared with a peer group over a three-year performance period with payouts ranging from 0% to 200% for awards granted in 2025, 2024 and 2023. Three-year total shareholder return is calculated by using annualized total return of a stock to an investor due to capital gain appreciation plus reinvestment of all dividends.

For the three-year performance period ended December 31, 2025, our total shareholder return exceeded eight of our nine peers. We expect 200% payout of these shares to occur in March 2026. During 2025, we issued 20,543 shares of performance-based restricted stock units at threshold-level performance hurdle for the three-year performance period ended December 31, 2024, as our total shareholder return exceeded three of nine peers in our 2022 peer group. During 2024, no shares of performance-based restricted stock units were issued for the three-year performance period ended December 31, 2023, as our total shareholder return exceeded two of eight peers in our 2021 peer group. Performance-based awards vested during the year ended December 31, 2025 had an intrinsic value of $3 million.

These performance-based awards are valued using a Monte-Carlo valuation on the date of grant, which uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each peer and the pairwise correlations of each peer being modeled. Compensation cost is recognized regardless of whether the market-based performance objective has been satisfied. We make assumptions to develop the Monte-Carlo model as follows:

Correlation coefficients are based upon the stock price data used to calculate the historical volatilities. The correlation coefficients are used to model the way the price of each entity's stock tends to move in relation to each other.

Cincinnati Financial Corporation - 2025 10-K - Page 170

Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period.
Dividend yield is based on our current expected annual cash dividend and the valuation date stock price.
Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance measurement period.

The following assumptions were used in determining fair value for performance-based grants issued:


	2025	2024	2023
Expected term	2.87 years	2.86 years	2.86 years
Expected volatility	21.38-41.62%	21.33-42.97%	25.98-47.73%
Dividend yield	2.53%	2.88%	2.37%
Risk-free rates	4.22%	4.41%	4.32%

Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2025:


(Shares in thousands)	Service-based shares	Weighted- average grant date fair value		Performance-based shares	Weighted- average grant date fair value
Nonvested at January 1, 2025	498	$	111.03	230	$	133.60
Granted	177	127.90		75	120.83
Vested	(159)	115.71		(21)	140.50
Forfeited or canceled	(21)	114.77		(48)	140.50
Nonvested at December 31, 2025	495	115.41		236	127.58

Cincinnati Financial Corporation - 2025 10-K - Page 171

NOTE 18 – Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. Our 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.

Revenues come primarily from unaffiliated customers:

All four insurance segments record revenues from insurance premiums earned.
Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees.
Our investments’ revenues consist of pretax net investment income and investment gains and losses.
Other revenues are primarily finance income and earned premiums of Cincinnati Re and Cincinnati Global.

Income or loss before income taxes for each segment are reported based on the nature of that business area’s operations:

Income or loss before income taxes for the insurance segments is defined as underwriting profit or loss.

◦For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred.

◦For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders.

Income or loss before income taxes for the investments segment is net investment income plus investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment.
Income or loss before income taxes for the Other category is primarily due to Cincinnati Re and Cincinnati Global premiums earned minus loss and loss expenses and underwriting expenses incurred. It also includes interest expense from debt of the parent company as well as operating expenses of our headquarters.

For all segments, the CODM uses income or loss before income taxes, and its components, to allocate resources (including associate, financial and capital resources) primarily during the annual budgeting and forecasting process and throughout the year as necessary. For the commercial lines, personal lines, excess and surplus and life segments, the CODM uses this metric to assess performance by analyzing the relationship between premium revenue and loss and loss expenses and underwriting expenses. As part of this analysis, the drivers and components of those revenue and expense items, such as pricing, exposure growth and inflation, are also considered as necessary. For the investments segment, the CODM considers overall investment performance as well as current conditions to invest available cash flow in both fixed-maturity and equity securities in a manner that balances current income needs with longer-term investment growth goals.

We do not separately report the identifiable assets of property casualty insurance for the commercial, personal and excess and surplus lines segments or for Cincinnati Re because we do not use that measure to analyze performance. We include all investment portfolio assets, regardless of ownership, in the investments segment.

Cincinnati Financial Corporation - 2025 10-K - Page 172

Segment information is summarized in the following table:


(Dollars in millions)	Years ended December 31,
	2025		2024		2023

Commercial lines insurance





Commercial lines insurance premiums	$	4,863	$	4,486	$	4,264
Fee revenues	5		4		4
Total commercial lines insurance revenues	4,868		4,490		4,268
Loss and loss expenses	2,970		2,795		2,787
Underwriting expenses	1,459		1,384		1,313
Total commercial lines income before income taxes	439		311		168

Personal lines insurance



Personal lines insurance premiums	3,199		2,623		2,044
Fee revenues	5		5		4
Total personal lines insurance revenues	3,204		2,628		2,048
Loss and loss expenses	2,419		1,795		1,442
Underwriting expenses	896		762		610
Total personal lines income (loss) before income taxes	(111)		71		(4)

Excess and surplus lines insurance
Excess and surplus lines insurance premiums	698		615		542
Fee revenues	4		3		3
Total excess and surplus lines insurance revenues	702		618		545
Loss and loss expenses	425		411		350
Underwriting expenses	192		167		141
Total excess and surplus lines income before income taxes	85		40		54

Life insurance
Life insurance premiums	330		321		313
Fee revenues	6		5		10
Total life insurance revenues	336		326		323
Contract holders' benefits incurred	305		301		316
Investment interest credited to contract holders	(127)		(125)		(121)
Underwriting expenses incurred	93		93		87
Total life insurance income before income taxes	65		57		41

Investments
Investment income, net of expenses	1,165		1,025		894
Investment gains and losses, net	1,442		1,391		1,127
Total investment revenue	2,607		2,416		2,021
Investment interest credited to contract holders	127		125		121
Total investments income before income taxes	2,480		2,291		1,900

Reconciliation to consolidated income before income taxes
Total segment revenues	11,717		10,478		9,205
Other earned premiums	893		844		795
Other revenues	21		15		13
Total revenues	12,631		11,337		10,013
Total segment benefits and expenses	8,759		7,708		7,046
Other loss and loss expenses	521		435		379
Other underwriting expenses	284		251		233
Other benefits and expenses	87		85		79
Total benefits and expenses	9,651		8,479		7,737
Total income before income taxes	$	2,980	$	2,858	$	2,276

Cincinnati Financial Corporation - 2025 10-K - Page 173

Identifiable assets by segment are summarized in the following table:


(Dollars in millions)	December 31,		December 31,
	2025		2024
Identifiable assets:
Property casualty insurance	$	6,916	$	5,927
Life insurance	1,695		1,658
Investments	31,199		27,887
Other	1,192		1,029
Total	$	41,002	$	36,501

Cincinnati Financial Corporation - 2025 10-K - Page 174

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