Cincinnati Financial 10-Q 2025-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2025.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from _____________________ to _____________________.

Commission file number 0-4604

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio																		31-0746871
(State or other jurisdiction of incorporation or organization)																		(I.R.S. Employer Identification No.)
			6200 S. Gilmore Road,						Fairfield,			Ohio						45014-5141
(Address of principal executive offices)																		(Zip code)

Registrant's telephone number, including area code: (513) 870-2000

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol(s)						Name of each exchange on which registered
Common stock						CINF						Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☑Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a nonaccelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☑ Large accelerated filer ☐ Accelerated filer ☐ Nonaccelerated filer ☐ Smaller reporting company

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

☐Yes ☑ No

As of July 23, 2025, there were 156,376,422 shares of common stock outstanding.

CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTER ENDED June 30, 2025

TABLE OF CONTENTS

Part I – Financial Information			3
Item 1. Financial Statements (unaudited)			3
Condensed Consolidated Balance Sheets			3
Condensed Consolidated Statements of Income			4
Condensed Consolidated Statements of Comprehensive Income			5
Condensed Consolidated Statements of Shareholders’ Equity			6
Condensed Consolidated Statements of Cash Flows			7
Notes to Condensed Consolidated Financial Statements (unaudited)			8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			33
Safe Harbor Statement			33
Corporate Financial Highlights			36
Financial Results			45
Liquidity and Capital Resources			60
Other Matters			64
Item 3. Quantitative and Qualitative Disclosures about Market Risk			64
Item 4. Controls and Procedures			71
Part II – Other Information			72
Item 1. Legal Proceedings			72
Item 1A. Risk Factors			72
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			73
Item 5. Other Information			74
Item 6. Exhibits			75

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Part I – Financial Information

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in millions, except per share data)						June 30,						December 31,
						2025						2024
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2025—$17,535; 2024—$16,735)						$	17,077					$	16,182
Equity securities, at fair value (cost: 2025—$4,012; 2024—$3,953)						11,649						11,185
Short-term investments, at fair value (amortized cost: 2025—$100; 2024—$298)						100						298
Other invested assets						743						713
Total investments						29,569						28,378
Cash and cash equivalents						995						983
Investment income receivable						223						222
Finance receivable						121						120
Premiums receivable						3,420						2,969
Reinsurance recoverable						749						523
Prepaid reinsurance premiums						130						70
Deferred policy acquisition costs						1,367						1,242
Land, building and equipment, net, for company use (accumulated depreciation: 2025—$355; 2024—$347)						214						214
Other assets						1,063						828
Separate accounts						991						952
Total assets						$	38,842					$	36,501
Liabilities
Insurance reserves
Loss and loss expense reserves						$	11,072					$	10,003
Life policy and investment contract reserves						2,959						2,960
Unearned premiums						5,444						4,813
Other liabilities						1,607						1,487
Deferred income tax						1,584						1,476
Note payable						25						25
Long-term debt and lease obligations						859						850
Separate accounts						991						952
Total liabilities						24,541						22,566
Commitments and contingent liabilities (Note 12)
Shareholders' Equity
Common stock, par value—$2 per share; (authorized: 2025 and 2024—500 million shares; issued: 2025 and 2024—198.3 million shares)						397						397
Paid-in capital						1,528						1,502
Retained earnings						15,193						14,869
Accumulated other comprehensive loss						(249)						(309)
Treasury stock at cost (2025—42.0 million shares and 2024—41.9 million shares)						(2,568)						(2,524)
Total shareholders' equity						14,301						13,935
Total liabilities and shareholders' equity						$	38,842					$	36,501

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(Dollars in millions, except per share data)			Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Revenues
Earned premiums			$	2,480					$	2,156					$	4,824					$	4,227
Investment income, net of expenses			285						242						565						487
Investment gains and losses, net			473						137						406						749
Fee revenues			5						5						10						9
Other revenues			5						4						9						7
Total revenues			3,248						2,544						5,814						5,479
Benefits and Expenses
Insurance losses and contract holders' benefits			1,660						1,480						3,628						2,829
Underwriting, acquisition and insurance expenses			709						655						1,411						1,271
Interest expense			14						14						27						27
Other operating expenses			10						9						21						13
Total benefits and expenses			2,393						2,158						5,087						4,140
Income Before Income Taxes			855						386						727						1,339
Provision for Income Taxes
Current			81						61						39						122
Deferred			89						13						93						150
Total provision for income taxes			170						74						132						272
Net Income			$	685					$	312					$	595					$	1,067
Per Common Share
Net income — basic			$	4.38					$	1.99					$	3.81					$	6.82
Net income — diluted			4.34						1.98						3.77						6.77

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

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Results of Operations

The following discussion highlights significant factors influencing the condensed consolidated results of operations and financial position of Cincinnati Financial Corporation. It should be read in conjunction with the consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K. Unless otherwise noted, the industry data is prepared by A.M. Best Co., a leading insurance industry statistical, analytical and financial strength rating organization. Information from A.M. Best is presented on a statutory basis for insurance company regulation in the United States of America. When we provide our results on a comparable statutory basis, we label it as such; all other company data is presented in accordance with accounting principles generally accepted in the United States of America (GAAP).

We present per share data on a diluted basis unless otherwise noted, adjusting those amounts for all stock splits and dividends. Dollar amounts are rounded to millions; calculations of percent changes are based on dollar amounts rounded to the nearest million. Certain percentage changes are identified as not meaningful (nm).

SAFE HARBOR STATEMENT

Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by forward-looking statements. Any forward-looking statements contained herein, are based upon our current estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like “seek,” “expect,” “will,” “should,” “could,” “might,” “anticipate,” “believe,” “estimate,” “intend,” “likely,” “future,” or other similar expressions. Forward-looking statements speak only as of the date they were made; we assume no obligation to update such statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not limited to:

Insurance-Related Risks

• Risks and uncertainties associated with our loss reserves or actual claim costs exceeding reserves

• Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance

• Unusually high levels of catastrophe losses due to risk concentrations or changes in weather patterns, environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causes; and our ability to manage catastrophe risk

• Risks associated with analytical models in key areas such as underwriting, pricing, capital management, reserving, investments, reinsurance, and catastrophe risk management

• Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates

• Events or conditions that could weaken or harm our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth

• Mergers, acquisitions, and other consolidations of agencies that result in a concentration of a significant amount of premium in one agency or agency group and/or alter our competitive advantages

• Our inability to manage business opportunities, growth prospects, and expenses for our ongoing operations

• Changing consumer insurance-buying habits

• The inability to obtain adequate ceded reinsurance on acceptable terms, for acceptable amounts, and from financially strong reinsurers; and the potential for nonpayment or delay in payment by reinsurers

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• Domestic and global events, such as the wars in Ukraine and in the Middle East, future pandemics, inflationary trends, changes in U.S. trade and tariff policy, and disruptions in the banking and financial services industry, resulting in insurance losses, capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:

◦Securities market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions that affect our investment portfolio and book value

◦Significant or prolonged decline in the fair value of securities and impairment of the assets

◦Significant decline in investment income due to reduced or eliminated dividend payouts from securities

◦Significant rise in losses from surety or director and officer policies written for financial institutions or other insured entities or in losses from policies written by Cincinnati Re or Cincinnati Global

◦An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses

◦Decreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activity

◦The inability of our workforce, agencies, or vendors to perform necessary business functions

Financial, Economic, and Investment Risks

• Declines in overall stock market values negatively affecting our equity portfolio and book value

• Downgrades in our financial strength ratings

• Interest rate fluctuations or other factors that could significantly affect:

◦Our ability to generate growth in investment income

◦Values of our fixed-maturity investments and accounts in which we hold bank-owned life insurance contract assets

◦Our traditional life policy reserves

• Economic volatility and illiquidity associated with our alternative investments in private equity, private credit, real property, and limited partnerships

• Failure to comply with covenants and other requirements under our credit facilities, senior debt, and other debt obligations

• Recession, prolonged elevated inflation, or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies

• The inability of our subsidiaries to pay dividends consistent with current or past levels impacting our ability to pay shareholder dividends or repurchase shares

General Business, Technology, and Operational Risks

• Ineffective information technology systems or failing to develop and implement improvements in technology

• Difficulties with technology or data security breaches, including cyberattacks, could negatively affect our, or our agents’, ability to conduct business; disrupt our relationships with agents, policyholders, and others; cause reputational damage, mitigation expenses, data loss, and expose us to liability

• Difficulties with our operations and technology that may negatively impact our ability to conduct business, including cloud-based data information storage, data security, remote working capabilities, and/or outsourcing relationships and third-party operations and data security

• Disruption of the insurance market caused by technology innovations - such as driverless cars - that could decrease consumer demand for insurance products

• Delays, inadequate data developed internally or from third parties, or performance inadequacies from ongoing development and implementation of underwriting and pricing models and methods, including usage-based insurance methods, automation, artificial intelligence, or technology projects and enhancements expected to increase our efficiency, pricing accuracy, underwriting profit, and competitiveness

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• Intense competition, and the impact of innovation, emerging technologies, artificial intelligence and changing customer preferences on the insurance industry and the markets in which we operate, could harm our ability to maintain or increase our business volumes and profitability

• Inability to defer policy acquisition costs for any busi

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Our greatest exposure to market risk is through our investment portfolio. Market risk is the potential for a decrease in securities' fair value resulting from broad yet uncontrollable forces such as: inflation, economic growth or recession, interest rates, world political conditions or other widespread unpredictable events. It is comprised of many individual risks that, when combined, create a macroeconomic impact.

Our view of potential risks and our sensitivity to such risks is discussed in our 2024 Annual Report on Form 10-K, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, Page 112.

The fair value of our investment portfolio was $28.826 billion at June 30, 2025, up $1.161 billion from year-end 2024, including a $895 million increase in the fixed-maturity portfolio, a $464 million increase in the equity portfolio and a $198 million decrease in short-term investments.

(Dollars in millions)			At June 30, 2025																		At December 31, 2024
			Cost or amortized cost			Percent of total						Fair value			Percent of total						Cost or amortized cost			Percent of total						Fair value			Percent of total
Taxable fixed maturities			$	13,437		62.0		%				$	13,166		45.7		%				$	12,668		60.4		%				$	12,243		44.2		%
Tax-exempt fixed maturities			4,098			18.9						3,911			13.6						4,067			19.4						3,939			14.2
Common equities			3,626			16.8						11,309			39.2						3,568			17.0						10,836			39.2
Nonredeemable preferred equities			386			1.8						340			1.2						385			1.8						349			1.3
Short-term investments			100			0.5						100			0.3						298			1.4						298			1.1
Total			$	21,647		100.0		%				$	28,826		100.0		%				$	20,986		100.0		%				$	27,665		100.0		%

At June 30, 2025, substantially all of our consolidated investment portfolio, measured at fair value, is classified as Level 1 or Level 2. See Item 1, Note 3, Fair Value Measurements, for additional discussion of our valuation techniques.

In addition to our investment portfolio, the total investments amount reported in our condensed consolidated balance sheets includes Other invested assets. Other invested assets included $594 million of private equity investments, $99 million of real estate through direct property ownership and development projects in the United States, $36 million of life policy loans and $14 million in Lloyd's deposit at June 30, 2025.

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FIXED-MATURITY SECURITIES INVESTMENTS

By maintaining a well-diversified fixed-maturity portfolio, we attempt to reduce overall risk. We invest new money in the bond market on a regular basis, targeting what we believe to be optimal risk-adjusted, after-tax yields. Risk, in this context, includes interest rate, call, reinvestment rate, credit and liquidity risk. We do not make a concerted effort to alter duration on a portfolio basis in response to anticipated movements in interest rates. By regularly investing in the bond market, we build a broad, diversified portfolio that we believe mitigates the impact of adverse economic factors.

In the first six months of 2025, the increase in fair value of our fixed-maturity portfolio was due to net purchases of securities, plus a decrease in our net unrealized loss position that reflected a decrease in U.S. Treasury yields partially offset by a slight widening of corporate credit spreads. At June 30, 2025, our fixed-maturity portfolio with an average rating of A2/A+ was valued at 97.4% of its amortized cost, compared with 96.7% at December 31, 2024.

At June 30, 2025, our investment-grade fixed-maturity securities represented 97.9% of the portfolio based on ratings provided by nationally recognized statistical rating organizations or the Securities Valuation Office of the National Association of Insurance Commissioners.

Attributes of the fixed-maturity portfolio include:

						At June 30, 2025									At December 31, 2024
Weighted average yield-to-amortized cost						5.16			%						5.06			%
Weighted average maturity						10.7			yrs						10.2			yrs
Effective duration						5.3			yrs						5.0			yrs

We discuss maturities of our fixed-maturity portfolio in our 2024 Annual Report on Form 10-K, Item 8, Note 2, Investments, Page 135, and in this quarterly report Item 2, Investments Results.

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TAXABLE FIXED MATURITIES

Our taxable fixed-maturity portfolio, with a fair value of $13.166 billion at June 30, 2025, included:

(Dollars in millions)						At June 30, 2025						At December 31, 2024
Investment-grade corporate						$	8,716					$	8,070
Government-sponsored enterprises						2,447						2,274
States, municipalities and political subdivisions						797						782
Asset-backed						732						551
Noninvestment-grade corporate						271						310
United States government						183						226
Foreign government						20						30
Total						$	13,166					$	12,243

Our strategy is to buy, and typically hold, fixed-maturity investments to maturity, but we monitor credit profiles and fair value movements when determining holding periods for individual securities. With the exception of United States agency issues that include government-sponsored enterprises, no individual issuer's securities accounted for more than 0.8% of the taxable fixed-maturity portfolio at June 30, 2025. Our investment-grade corporate bonds had an average rating of Baa1 by Moody's or BBB+ by S&P Global Ratings and represented 66.2% of the taxable fixed-maturity portfolio's fair value at June 30, 2025, compared with 65.9% at year-end 2024.

The heaviest concentration in our investment-grade corporate bond portfolio, based on fair value at

June 30, 2025, was the financial sector. It represented 31.4% of our investment-grade corporate bond portfolio, compared with 33.8% at year-end 2024. The utility and energy sectors represented 13.0% and 11.0%, compared with 13.0% and 10.6%, respectively, at year-end 2024. No other sector exceeded 10% of our investment-grade corporate bond portfolio.

As discussed in our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30, investments in the financial sector include various risks. See risk factors entitled “Financial disruption or a prolonged economic downturn could affect our investment performance” and “Our ability to achieve our performance objectives could be affected by changes in the financial, credit and capital markets or the general economy.”

Our taxable fixed-maturity portfolio at June 30, 2025, included $732 million of asset-backed securities at fair value with an average rating of Aa2/AA.

TAX-EXEMPT FIXED MATURITIES

At June 30, 2025, we had $3.911 billion of tax-exempt fixed-maturity securities at fair value with an average rating of Aa2/AA by Moody's and S&P Global Ratings. We traditionally have purchased municipal bonds focusing on general obligation and essential services issues, such as water, waste disposal or others. The portfolio is well diversified among approximately 1,900 municipal bond issuers. No single municipal issuer accounted for more than 0.6% of the tax-exempt fixed-maturity portfolio at June 30, 2025.

INTEREST RATE SENSITIVITY ANALYSIS

Because of our strong surplus, long-term investment horizon and ability to hold most fixed-maturity investments until maturity, we believe the company is adequately positioned if interest rates were to rise. Although the fair values of our existing holdings may suffer, a higher rate environment would provide the opportunity to invest cash flow in higher-yielding securities, while reducing the likelihood of untimely redemptions of currently callable securities. While higher interest rates would be expected to continue to increase the number of fixed-maturity holdings trading below 100% of amortized cost, we believe lower fixed-maturity security values due solely to interest rate changes would not signal a decline in credit quality. We continue to manage the portfolio with an eye toward both meeting current income needs and managing interest rate risk.

Our dynamic financial planning model uses analytical tools to assess market risks. As part of this model, the effective duration of the fixed-maturity portfolio is continually monitored by our investment department to evaluate the theoretical impact of interest rate movements.

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The table below summarizes the effect of hypothetical changes in interest rates on the fair value of the fixed-maturity portfolio:

(Dollars in millions)						Effect from interest rate change in basis points
						-200						-100						—						100						200
At June 30, 2025						$	18,906					$	17,985					$	17,077					$	16,093					$	15,100
At December 31, 2024						$	17,750					$	16,967					$	16,182					$	15,317					$	14,433

The effective duration of the fixed-maturity portfolio as of June 30, 2025, was 5.3 years, up from 5.0 years at year-end 2024. The above table is a theoretical presentation showing that an instantaneous, parallel shift in the yield curve of 100 basis points could produce an approximately 5.5% change in the fair value of the fixed-maturity portfolio. Generally speaking, the higher a bond is rated, the more directly correlated movements in its fair value are to changes in the general level of interest rates, exclusive of call features. The fair values of average- to lower-rated corporate bonds are additionally influenced by the expansion or contraction of credit spreads.

In our dynamic financial planning model, the selected interest rate change of 100 to 200 basis points represents our view of a shift in rates that is quite possible over a one-year period. The rates modeled should not be considered a prediction of future events as interest rates may be much more volatile in the future. The analysis is not intended to provide a precise forecast of the effect of changes in rates on our results or financial condition, nor does it take into account any actions that we might take to reduce exposure to such risks.

SHORT-TERM INVESTMENTS

Our short-term investments consist of commercial paper purchased within one year of maturity. We make short-term investments primarily with funds to be used to make upcoming cash payments, such as dividends, taxes or other corporate purposes. At June 30, 2025, we had $100 million of short-term investments.

EQUITY INVESTMENTS

Our equity investments, with a fair value totaling $11.649 billion at June 30, 2025, included $11.309 billion of common stock securities of companies generally with strong indications of paying and growing their dividends. Other criteria we evaluate include increasing sales and earnings, proven management and a favorable outlook. We believe our equity investment style is an appropriate long-term strategy. While our long-term financial position would be affected by prolonged changes in the market valuation of our investments, we believe our strong surplus position and cash flow provide a cushion against short-term fluctuations in valuation. Continued payment of cash dividends by the issuers of our common equity holdings can provide a floor to their valuation.

The table below summarizes the effect of hypothetical changes in market prices on fair value of our equity portfolio.

(Dollars in millions)			Effect from market price change in percent
						-30%						-20%						-10%						—						10%						20%						30%
At June 30, 2025						$	8,154					$	9,319					$	10,484					$	11,649					$	12,814					$	13,979					$	15,144
At December 31, 2024						$	7,830					$	8,948					$	10,067					$	11,185					$	12,304					$	13,422					$	14,541

At June 30, 2025, Microsoft (Nasdaq:MSFT) was our largest single common stock holding with a fair value of $903 million, or 8.0% of our publicly traded common stock portfolio and 3.1% of the total investment portfolio. Forty-two holdings (among nine different sectors) each had a fair value greater than $100 million.

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Common Stock Portfolio Industry Sector Distribution

			Percent of common stock portfolio
			At June 30, 2025												At December 31, 2024
			Cincinnati Financial						S&P 500 Industry Weightings						Cincinnati Financial						S&P 500 Industry Weightings
Sector:
Information technology			33.0		%				33.1		%				32.6		%				32.5		%
Industrials			14.4						8.6						14.3						8.2
Financial			13.3						14.0						12.4						13.6
Healthcare			9.6						9.3						10.8						10.1
Consumer staples			7.5						5.5						6.9						5.5
Consumer discretionary			7.4						10.4						7.6						11.2
Materials			4.1						1.9						4.7						1.9
Energy			4.1						3.0						4.2						3.2
Utilities			3.2						2.4						3.1						2.3
Real estate			2.1						2.0						2.1						2.1
Communication services			1.3						9.8						1.3						9.4
Total			100.0		%				100.0		%				100.0		%				100.0		%

UNREALIZED INVESTMENT GAINS AND LOSSES

At June 30, 2025, unrealized investment gains before taxes for the fixed-maturity portfolio totaled $124 million and unrealized investment losses amounted to $582 million before taxes.

The $458 million net unrealized loss position in our fixed-maturity portfolio at June 30, 2025, decreased in the first six months of 2025, primarily due to a decrease in U.S. Treasury yields partially offset by a slight widening of corporate credit spreads. The net loss position for our current fixed-maturity holdings will naturally decline over time as individual securities approach maturity. In addition, changes in interest rates can cause rapid, significant changes in fair values of fixed-maturity securities and the net loss position, as discussed in Quantitative and Qualitative Disclosures About Market Risk.

For federal income tax purposes, taxes on gains from appreciated investments generally are not due until securities are sold. We believe that the appreciated value of equity securities, compared with the cost of securities that is generally used as a tax basis, is a useful measure to help evaluate how fair value can change over time. On this basis, the net unrealized investment gains at June 30, 2025, consisted of a net gain position in our equity portfolio of $7.637 billion. Events or factors such as economic growth or recession can affect the fair value and unrealized investment gains of our equity securities. The five largest holdings in our common stock portfolio at June 30, 2025, were Microsoft, Apple (Nasdaq:AAPL), Broadcom Inc. (Nasdaq:AVGO), JPMorgan Chase & Co (NYSE:JPM), and Abbvie Inc. (NYSE:ABBV), which had a combined fair value of $3.171 billion.

Unrealized Investment Losses

We expect the number of fixed-maturity securities trading below amortized cost to fluctuate as interest rates rise or fall and credit spreads expand or contract due to prevailing economic conditions. Further, amortized costs for some securities are revised through write-downs recognized in prior periods. At June 30, 2025, 3,537 of the 5,278 fixed-maturity and short-term securities we owned had fair values below amortized cost, compared with 3,723 of the 5,090 securities we owned at year-end 2024. The 3,537 holdings with fair values below amortized cost at June 30, 2025, represented 60.4% of the fair value of our fixed-maturity and short-term investments portfolio and $582 million in unrealized losses.

• 2,658 of the 3,537 holdings had fair value between 90% and 100% of amortized cost at June 30, 2025. These primarily consist of securities whose current valuation is largely the result of interest rate factors. The fair value of these 2,658 securities was $8.867 billion, and they accounted for $236 million in unrealized losses.

• 831 of the 3,537 holdings had fair value between 70% and 90% of amortized cost at June 30, 2025. We believe the 831 securities will continue to pay interest and ultimately pay principal upon

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maturity. The issuers of these 831 securities have strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of these securities was $1.452 billion, and they accounted for $320 million in unrealized losses.

• 48 of the 3,537 holdings had fair value below 70% of amortized cost at June 30, 2025. We believe these securities will continue to pay interest and ultimately pay principal upon maturity. The fair value of these securities was $51 million, and they accounted for $26 million in unrealized losses.

The table below reviews fair values and unrealized losses by investment category and by the overall duration of the securities' continuous unrealized loss position.

(Dollars in millions)						Less than 12 months												12 months or more												Total
At June 30, 2025						Fair value						Unrealized losses						Fair value						Unrealized losses						Fair value						Unrealized losses
Fixed-maturity:
Corporate						$	1,738					$	51					$	3,037					$	205					$	4,775					$	256
States, municipalities and political subdivisions						1,505						49						2,062						255						3,567						304
Government-sponsored enterprises						1,427						9						124						—						1,551						9
Asset-backed						237						7						78						5						315						12
United States government						—						—						62						1						62						1
Foreign government						—						—						—						—						—						—
Total fixed-maturity						4,907						116						5,363						466						10,270						582
Short-term						100						—						—						—						100						—
Total fixed-maturity and short-term investments						$	5,007					$	116					$	5,363					$	466					$	10,370					$	582
At December 31, 2024
Fixed-maturity:
Corporate						$	2,815					$	78					$	3,634					$	255					$	6,449					$	333
States, municipalities and political subdivisions						1,513						25						1,898						245						3,411						270
Government-sponsored enterprises						1,876						8						92						1						1,968						9
Asset-backed						331						10						96						7						427						17
United States government						48						—						100						2						148						2
Foreign government						—						—						3						—						3						—
Total fixed-maturity						6,583						121						5,823						510						12,406						631
Short-term						100						—						—						—						100						—
Total fixed-maturity and short-term investments						$	6,683					$	121					$	5,823					$	510					$	12,506					$	631

At June 30, 2025, applying our invested asset impairment policy, we determined that the total of $582 million, for securities in an unrealized loss position in the table above, was not the result of a credit loss.

During the first six months of 2025, no fixed maturity securities were written down to fair value, due to an intention to be sold. The allowance for credit losses increased $14 million during the first six months of 2025. During the first six months of 2024, no fixed maturity securities were written down to fair value, due to an intention to be sold. The increase in the allowance for credit losses was $25 million during the first six months of 2024.

During the full year of 2024, no securities were written down to fair value. At December 31, 2024, 3,723 fixed-maturity and short-term securities with a total unrealized loss of $631 million were in an unrealized loss position. Of that total, 19 securities had fair values below 70% of amortized cost.

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The following table summarizes the investment portfolio by severity of decline:

(Dollars in millions)						Number of issues						Amortized cost						Fair value						Gross unrealized gain (loss)						Gross investment income
At June 30, 2025
Taxable fixed maturities:
Fair valued below 70% of amortized cost						8						$	18					$	11					$	(7)					$	—
Fair valued at 70% to less than 100% of amortized cost						1,647						7,771						7,389						(382)						193
Fair valued at 100% and above of amortized cost						1,082						5,648						5,766						118						140
Investment income on securities sold in current year						—						—						—						—						18
Total						2,737						13,437						13,166						(271)						351
Tax-exempt fixed maturities:
Fair valued below 70% of amortized cost						40						59						40						(19)						1
Fair valued at 70% to less than 100% of amortized cost						1,841						3,004						2,830						(174)						50
Fair valued at 100% and above of amortized cost						659						1,035						1,041						6						18
Investment income on securities sold in current year						—						—						—						—						2
Total						2,540						4,098						3,911						(187)						71
Fixed-maturities summary:
Fair valued below 70% of amortized cost						48						77						51						(26)						1
Fair valued at 70% to less than 100% of amortized cost						3,488						10,775						10,219						(556)						243
Fair valued at 100% and above of amortized cost						1,741						6,683						6,807						124						158
Investment income on securities sold in current year						—						—						—						—						20
Total						5,277						17,535						17,077						(458)						422
Short-term investments:
Fair valued below 70% of cost						—						—						—						—						—
Fair valued at 70% to less than 100% of cost						1						100						100						—						1
Fair valued at 100% and above of cost						—						—						—						—						—
Investment income on securities sold in current year						—						—						—						—						2
Total						1						100						100						—						3
Fixed maturities and short-term investments summary:
Fair valued below 70% of cost						48						77						51						(26)						1
Fair valued at 70% to less than 100% of cost						3,489						10,875						10,319						(556)						244
Fair valued at 100% and above of cost						1,741						6,683						6,807						124						158
Investment income on securities sold in current year						—						—						—						—						22
Total						5,278						$	17,635					$	17,177					$	(458)					$	425
At December 31, 2024
Fixed maturities and short-term investments summary:
Fair valued below 70% of amortized cost						19						$	43					$	28					$	(15)					$	2
Fair valued at 70% to less than 100% of amortized cost						3,704						13,094						12,478						(616)						461
Fair valued at 100% and above of amortized cost						1,367						3,896						3,974						78						184
Investment income on securities sold in current year						—						—						—						—						86
Total						5,090						$	17,033					$	16,480					$	(553)					$	733

See our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Asset Impairment, Page 56.

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Evaluation of Disclosure Controls and Procedures – The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)).

Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The company's management, with the participation of the company's chief executive officer and chief financial officer, has evaluated the effectiveness of the design and operation of the company's disclosure controls and procedures as of June 30, 2025. Based upon that evaluation, the company's chief executive officer and chief financial officer concluded that the design and operation of the company's disclosure controls and procedures provided reasonable assurance that the disclosure controls and procedures are effective to ensure:

• that information required to be disclosed in the company's reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and

• that such information is accumulated and communicated to the company's management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting – During the three months ended June 30, 2025, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

Neither the company nor any of our subsidiaries are involved in any litigation believed to be material other than ordinary, routine litigation incidental to the nature of our business.

Our risk factors have not changed materially since they were described in our 2024 Annual Report on Form 10-K filed February 24, 2025. Investors should not interpret the disclosure of a risk to imply that the risk has not already materialized.

More recently, changes in international trade regulation or foreign trade policy, including tariffs, could lead to higher than anticipated inflation and supply chain disruption, which impacts personal and commercial insurance loss costs and premiums.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not sell any of our shares that were not registered under the Securities Act during the first six months of 2025. Our repurchase program does not have an expiration date. On January 26, 2018, an additional 15 million shares were authorized, which expanded our current repurchase program. We have 5,314,506 shares available for purchase under our programs at June 30, 2025.

Period						Total number of shares purchased						Average price paid per share						Total number of shares purchased as part of publicly announced plans or programs						Maximum number of shares that may yet be purchased under the plans or programs
April 1-30, 2025						—						$	—					—						5,314,506
May 1-31, 2025						—						—						—						5,314,506
June 1-30, 2025						—						—						—						5,314,506
Totals						—						—						—

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Neither the company nor any of our officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement as defined by Item 408(a) and Item 408(d) of Regulation S-K during the last fiscal quarter.

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Exhibit No.						Exhibit Description
3.1						Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (as of May 29, 2025)
3.2						Amended and Restated Code of Regulations of Cincinnati Financial Corporation, as of May 6, 2023 (incorporated by reference to Exhibit 3.1 filed with the company's Current Report on Form 8-K filed on May 9, 2023)
31A						Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer
31B						Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer
32						Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002
101.INS						The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						XBRL Taxonomy Extension Label Linkbase Document
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CINCINNATI FINANCIAL CORPORATION
Date: July 28, 2025
/S/ Michael J. Sewell
Michael J. Sewell, CPA
Chief Financial Officer, Executive Vice President and Treasurer
(Principal Accounting Officer)

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