Item 1. Financial Statements (unaudited)

Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Balance Sheets


(Dollars in millions, except per share data)	September 30,		December 31,
	2025		2024
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2025—$17,847; 2024—$16,735)	$	17,630	$	16,182
Equity securities, at fair value (cost: 2025—$4,154; 2024—$3,953)	12,547		11,185
Short-term investments, at fair value (amortized cost: 2025—$149; 2024—$298)	149		298
Other invested assets	773		713
Total investments	31,099		28,378
Cash and cash equivalents	1,460		983

Investment income receivable	233		222
Finance receivable	147		120
Premiums receivable	3,307		2,969
Reinsurance recoverable	679		523
Prepaid reinsurance premiums	100		70
Deferred policy acquisition costs	1,360		1,242
Land, building and equipment, net, for company use (accumulated depreciation: 2025—$361; 2024—$347)	213		214
Other assets	998		828
Separate accounts	971		952
Total assets	$	40,567	$	36,501

Liabilities
Insurance reserves
Loss and loss expense reserves	$	11,260	$	10,003
Life policy and investment contract reserves	3,003		2,960
Unearned premiums	5,423		4,813
Other liabilities	1,829		1,487
Deferred income tax	1,792		1,476
Note payable	25		25
Long-term debt and lease obligations	858		850
Separate accounts	971		952
Total liabilities	25,161		22,566

Commitments and contingent liabilities (Note 12)

Shareholders' Equity
Common stock, par value—$2 per share; (authorized: 2025 and 2024—500 million shares; issued: 2025 and 2024—198.3 million shares)	397		397
Paid-in capital	1,543		1,502
Retained earnings	16,179		14,869
Accumulated other comprehensive loss	(84)		(309)
Treasury stock at cost (2025—42.3 million shares and 2024—41.9 million shares)	(2,629)		(2,524)
Total shareholders' equity	15,406		13,935
Total liabilities and shareholders' equity	$	40,567	$	36,501

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Income


(Dollars in millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Revenues
Earned premiums	$	2,567	$	2,297	$	7,391	$	6,524
Investment income, net of expenses	295		258		860		745
Investment gains and losses, net	853		758		1,259		1,507
Fee revenues	5		4		15		13
Other revenues	6		3		15		10
Total revenues	3,726		3,320		9,540		8,799
Benefits and Expenses
Insurance losses and contract holders' benefits	1,540		1,578		5,168		4,407
Underwriting, acquisition and insurance expenses	754		683		2,165		1,954
Interest expense	13		13		40		40
Other operating expenses	6		6		27		19
Total benefits and expenses	2,313		2,280		7,400		6,420
Income Before Income Taxes	1,413		1,040		2,140		2,379
Provision for Income Taxes
Current	128		171		167		293
Deferred	163		49		256		199
Total provision for income taxes	291		220		423		492
Net Income	$	1,122	$	820	$	1,717	$	1,887
Per Common Share
Net income — basic	$	7.19	$	5.25	$	10.99	$	12.06
Net income — diluted	7.11		5.20		10.88		11.97

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net Income	$	1,122	$	820	$	1,717	$	1,887
Other Comprehensive Income (Loss)
Change in unrealized gains and losses on investments, net of tax of $51, $106, $71 and $78, respectively	190		391		265		289
Amortization of pension actuarial loss (gain) and prior service cost, net of tax (benefit) of $0, $0, $0 and $0, respectively	—		—		(2)		1
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(7), $(20), $(10) and $(2), respectively	(25)		(71)		(38)		(5)
Other comprehensive income	165		320		225		285
Comprehensive Income	$	1,287	$	1,140	$	1,942	$	2,172

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Common Stock
Beginning of period	$	397	$	397	$	397	$	397
Share-based awards	—		—		—		—
End of period	397		397		397		397

Paid-In Capital
Beginning of period	1,528		1,466		1,502		1,437
Share-based awards	2		4		(1)		4
Share-based compensation	11		10		36		36
Other	2		2		6		5
End of period	1,543		1,482		1,543		1,482

Retained Earnings
Beginning of period	15,193		13,897		14,869		13,084


Net income	1,122		820		1,717		1,887
Dividends declared	(136)		(126)		(407)		(380)
End of period	16,179		14,591		16,179		14,591

Accumulated Other Comprehensive Loss
Beginning of period	(249)		(470)		(309)		(435)


Other comprehensive income	165		320		225		285
End of period	(84)		(150)		(84)		(150)

Treasury Stock
Beginning of period	(2,568)		(2,513)		(2,524)		(2,385)
Share-based awards	—		3		10		15
Shares acquired - share repurchase authorization	(60)		—		(102)		(121)
Shares acquired - share-based compensation plans	(1)		(7)		(14)		(26)
Other	—		1		1		1
End of period	(2,629)		(2,516)		(2,629)		(2,516)

Total Shareholders' Equity	$	15,406	$	13,804	$	15,406	$	13,804

(In millions, except per common share)
Common Stock - Shares Outstanding
Beginning of period	156.3		156.2		156.4		157.0
Share-based awards	0.1		0.1		0.4		0.5
Shares acquired - share repurchase authorization	(0.4)		—		(0.7)		(1.1)
Shares acquired - share-based compensation plans	—		(0.1)		(0.1)		(0.2)
Other	—		0.1		—		0.1
End of period	156.0		156.3		156.0		156.3

Dividends declared per common share	$	0.87	$	0.81	$	2.61	$	2.43

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

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Cincinnati Financial Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows


(Dollars in millions)	Nine months ended September 30,
	2025		2024
Cash Flows From Operating Activities
Net income	$	1,717	$	1,887
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	126		115
Investment gains and losses, net	(1,235)		(1,499)

Interest credited to contract holders	33		34
Deferred income tax expense	256		199
Changes in:

Premiums and reinsurance receivable	(524)		(356)
Deferred policy acquisition costs	(118)		(148)
Other assets	(57)		(8)
Loss and loss expense reserves	1,257		878
Life policy and investment contract reserves	34		54
Unearned premiums	610		755
Other liabilities	43		55
Current income tax receivable/payable	23		41
Net cash provided by operating activities	2,165		2,007
Cash Flows From Investing Activities
Sale, call or maturity of fixed maturities	2,602		2,354

Sale of equity securities	201		1,332
Purchase of fixed maturities	(3,546)		(3,797)
Purchase of equity securities	(319)		(282)

Change in short-term investments, net	154		—
Changes in finance receivables	(30)		(10)

Investment in building and equipment	(12)		(18)
Change in other invested assets, net	(67)		(68)
Net cash used in investing activities	(1,017)		(489)
Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(392)		(365)
Shares acquired - share repurchase authorization	(102)		(121)

Proceeds from stock options exercised	8		7
Contract holders' funds deposited	47		58
Contract holders' funds withdrawn	(121)		(152)
Other	(111)		(100)
Net cash used in financing activities	(671)		(673)
Net change in cash and cash equivalents	477		845
Cash and cash equivalents at beginning of year	983		907
Cash and cash equivalents at end of period	$	1,460	$	1,752
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	27	$	27
Income taxes paid	99		221
Noncash Activities

Equipment acquired under finance lease obligations	$	16	$	13
Share-based compensation	29		41
Other assets and other liabilities	344		562

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

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 — Accounting Policies

The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted.

Our September 30, 2025, condensed consolidated financial statements are unaudited. We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2024 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year.

Pending Accounting Updates

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

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

ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires increased quantitative and qualitative disclosure of certain categories of expenses. The effective date of ASU 2024-03 is for annual periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements.

ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 modernizes the accounting for internal-use software costs by eliminating references to prescriptive and sequential software development stages and updating the cost capitalization criteria. The effective date of ASU 2025-06 is for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows.

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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 September 30, 2025			gains			losses
Fixed-maturity:
Corporate	$	9,385		$	171		$	193	$	9,363
States, municipalities and political subdivisions	5,043			24			221		4,846
Government-sponsored enterprises	2,348			3			5		2,346
Asset-backed	776			11			9		778
United States government	272			3			1		274
Foreign government	23			—			—		23

Total fixed-maturity	17,847			212			429		17,630




Short-term	149			—			—		149
Total fixed-maturity and short-term investments	$	17,996		$	212		$	429	$	17,779
At December 31, 2024
Fixed-maturity:
Corporate	$	8,652		$	61		$	333	$	8,380
States, municipalities and political subdivisions	4,976			15			270		4,721
Government-sponsored enterprises	2,282			1			9		2,274
Asset-backed	567			1			17		551
United States government	228			—			2		226
Foreign government	30			—			—		30

Total fixed-maturity	16,735			78			631		16,182
Short-term	298			—			—		298




Total fixed-maturity and short-term investments	$	17,033		$	78		$	631	$	16,480

The decrease in net unrealized investment losses in our fixed-maturity portfolio at September 30, 2025, is primarily due to a decrease in U.S. Treasury yields and a slight tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at September 30, 2025 and December 31, 2024, respectively.

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The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:


(Dollars in millions)	Less than 12 months				12 months or more				Total
At September 30, 2025	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity:
Corporate	$	793	$	14	$	2,887	$	179	$	3,680	$	193
States, municipalities and political subdivisions	873		20		2,019		201		2,892		221
Government-sponsored enterprises	922		3		488		2		1,410		5
Asset-backed	173		4		91		5		264		9
United States government	—		—		27		1		27		1
Foreign government	1		—		—		—		1		—
Total fixed-maturity	$	2,762	$	41	$	5,512	$	388	$	8,274	$	429







At December 31, 2024
Fixed-maturity:
Corporate	$	2,815	$	78	$	3,634	$	255	$	6,449	$	333
States, municipalities and political subdivisions	1,513		25		1,898		245		3,411		270
Government-sponsored enterprises	1,876		8		92		1		1,968		9
Asset-backed	331		10		96		7		427		17
United States government	48		—		100		2		148		2
Foreign government	—		—		3		—		3		—
Total fixed-maturity	6,583		121		5,823		510		12,406		631
Short-term	100		—		—		—		100		—




Total fixed-maturity and short-term investments	$	6,683	$	121	$	5,823	$	510	$	12,506	$	631

Contractual maturity dates for our fixed-maturity and short-term investments were:


(Dollars in millions)	Amortized cost		Fair value		% of fair value
At September 30, 2025
Maturity dates:
Due in one year or less	$	1,008	$	1,001	5.6	%
Due after one year through five years	3,667		3,679		20.7
Due after five years through ten years	4,084		4,109		23.1
Due after ten years	9,237		8,990		50.6
Total	$	17,996	$	17,779	100.0	%

Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.

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


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Investment income:
Interest	$	227	$	187	$	651	$	529
Dividends	69		68		206		209
Other	4		7		16		18
Total	300		262		873		756
Less investment expenses	5		4		13		11
Total	$	295	$	258	$	860	$	745

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	(9)	$	24	$	(5)	$	146
Unrealized gains and losses on securities still held, net	855		817		1,259		1,446
Subtotal	846		841		1,254		1,592
Fixed-maturity securities:
Gross realized gains	2		1		3		5
Gross realized losses	(1)		(87)		(1)		(94)
Change in allowance for credit losses, net	—		—		(15)		(25)

Subtotal	1		(86)		(13)		(114)

Other	6		3		18		29

Total	$	853	$	758	$	1,259	$	1,507

The fair value of our equity portfolio was $12.547 billion and $11.185 billion at September 30, 2025, and December 31, 2024, respectively. Microsoft Corporation (Nasdaq:MSFT) and Apple Inc. (Nasdaq:AAPL), equity holdings, were our largest single investment holdings with fair values of $940 million and $891 million, which were 7.7% and 8.2% of our publicly traded common equities portfolio and 3.1% and 3.2% of the total investment portfolio at September 30, 2025, and December 31, 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $41 million and $33 million at September 30, 2025, and December 31, 2024, respectively. Reductions in the allowance for credit losses for securities sold were $6 million and $7 million for the three and nine months ended September 30, 2025.

There were 2,831 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $429 million and $631 million at September 30, 2025, and December 31, 2024, respectively. Of those totals, 17 and 19 fixed-maturity securities had fair values below 70% of amortized cost at September 30, 2025, and December 31, 2024, respectively.

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NOTE 3 – Fair Value Measurements

In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2024, and ultimately management determines fair value. See our 2024 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 138, for information on characteristics and valuation techniques used in determining fair value.

Fair Value Disclosures for Assets

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at September 30, 2025, and December 31, 2024. We do not have any liabilities carried at fair value.


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At September 30, 2025
Fixed maturities, available for sale:
Corporate	$	—	$	9,363	$	—	$	9,363
States, municipalities and political subdivisions	—		4,846		—		4,846
Government-sponsored enterprises	—		2,346		—		2,346
Asset-backed	—		778		—		778
United States government	274		—		—		274
Foreign government	—		23		—		23


Subtotal	274		17,356		—		17,630
Common equities	12,209		—		—		12,209
Nonredeemable preferred equities	—		338		—		338
Separate accounts taxable fixed maturities	35		877		—		912
Short-term investments	149		—		—		149
Top Hat savings plan mutual funds and common equity (included in Other assets)	100		—		—		100
Total	$	12,767	$	18,571	$	—	$	31,338

At December 31, 2024
Fixed maturities, available for sale:
Corporate	$	—	$	8,380	$	—	$	8,380
States, municipalities and political subdivisions	—		4,721		—		4,721
Government-sponsored enterprises	—		2,274		—		2,274
Asset-backed	—		551		—		551
United States government	226		—		—		226
Foreign government	—		30		—		30

Subtotal	226		15,956		—		16,182
Common equities	10,836		—		—		10,836
Nonredeemable preferred equities	—		349		—		349
Separate accounts taxable fixed maturities	—		876		—		876
Short-term investments	298		—		—		298
Top Hat savings plan mutual funds and common equity (included in Other assets)	87		—		—		87
Total	$	11,447	$	17,181	$	—	$	28,628

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We also held Level 1 cash and cash equivalents of $1.460 billion and $983 million at September 30, 2025, and December 31, 2024, respectively.

Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value

The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements.

This table summarizes the book value and principal amounts of our long-term debt:


(Dollars in millions)			Book value				Principal amount
Interest rate	Year of issue		September 30,		December 31,		September 30,		December 31,
		2025	2024		2025		2024
6.900%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920%	2005	Senior debentures, due 2028	391		391		391		391
6.125%	2004	Senior notes, due 2034	372		372		374		374
Total			$	790	$	790	$	793	$	793

The following table shows fair values of our note payable and long-term debt:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At September 30, 2025
Note payable	$	—	$	25	$	—	$	25
6.900% senior debentures, due 2028	—		29		—		29
6.920% senior debentures, due 2028	—		419		—		419
6.125% senior notes, due 2034	—		404		—		404
Total	$	—	$	877	$	—	$	877

At December 31, 2024
Note payable	$	—	$	25	$	—	$	25
6.900% senior debentures, due 2028	—		29		—		29
6.920% senior debentures, due 2028	—		416		—		416
6.125% senior notes, due 2034	—		390		—		390
Total	$	—	$	860	$	—	$	860

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The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At September 30, 2025
Life policy loans	$	—	$	—	$	42	$	42

Deferred annuities	$	—	$	—	$	541	$	541
Structured settlements	—		125		—		125
Total	$	—	$	125	$	541	$	666

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

Deferred annuities	$	—	$	—	$	561	$	561
Structured settlements	—		127		—		127
Total	$	—	$	127	$	561	$	688

Outstanding principal and interest for these life policy loans totaled $37 million and $36 million at September 30, 2025, and December 31, 2024, respectively.

Recorded reserves for the deferred annuities were $565 million and $595 million at September 30, 2025, and December 31, 2024, respectively. Recorded reserves for the structured settlements were $112 million and $116 million at September 30, 2025, and December 31, 2024, respectively.

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NOTE 4 – Property Casualty Loss and Loss Expenses

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


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Gross loss and loss expense reserves, beginning of period	$	11,001	$	9,494	$	9,937	$	8,975
Less reinsurance recoverable	504		303		269		362
Net loss and loss expense reserves, beginning of period	10,497		9,191		9,668		8,613





Net incurred loss and loss expenses related to:
Current accident year	1,486		1,570		5,114		4,392
Prior accident years	(22)		(71)		(176)		(211)
Total incurred	1,464		1,499		4,938		4,181
Net paid loss and loss expenses related to:
Current accident year	616		574		1,800		1,262
Prior accident years	601		540		2,062		1,956
Total paid	1,217		1,114		3,862		3,218
Net loss and loss expense reserves, end of period	10,744		9,576		10,744		9,576
Plus reinsurance recoverable	451		290		451		290
Gross loss and loss expense reserves, end of period	$	11,195	$	9,866	$	11,195	$	9,866

We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $65 million and $62 million at September 30, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves.

We experienced $22 million of favorable development on prior accident years, including $18 million of favorable development in commercial lines, $14 million of unfavorable development in personal lines and $4 million of favorable development in excess and surplus lines for the three months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $38 million for the commercial property line and $17 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $24 million for the commercial casualty line and $10 million for the commercial auto line.

We experienced $176 million of favorable development on prior accident years, including $103 million of favorable development in commercial lines, $24 million of favorable development in personal lines and $18 million of favorable development in excess and surplus lines for the nine months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $113 million for the commercial property line and $45 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $35 million for the commercial auto line and $21 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $47 million for the homeowner line.

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We experienced $71 million of favorable development on prior accident years, including $50 million of favorable development in commercial lines, less than $1 million of unfavorable development in personal lines and $5 million of unfavorable development in excess and surplus lines for the three months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $33 million for the commercial property line and $16 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

We experienced $211 million of favorable development on prior accident years, including $117 million of favorable development in commercial lines, $27 million of favorable development in personal lines and $5 million of unfavorable development in excess and surplus lines for the nine months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $76 million for the commercial property line, $56 million for the workers' compensation line and $10 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $27 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $37 million for the homeowner line.

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NOTE 5 – Life Policy and Investment Contract Reserves

We establish the reserves for traditional life policies including term, whole life and other products based on the present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to 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, typically in the second quarter, to determine any necessary updates. These assumptions are also updated on an interim basis if evidence suggests that they should be revised. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables.

We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments.

The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets:


(Dollars in millions)	September 30, 2025		December 31, 2024
Life policy reserves:
Term	$	1,099	$	1,051
Whole life	430		405
Other	99		98
Subtotal	1,628		1,554
Investment contract reserves:
Deferred annuities	565		595
Universal life	588		586
Structured settlements	112		116
Other	110		109
Subtotal	1,375		1,406
Total life policy and investment contract reserves	$	3,003	$	2,960

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

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(Dollars in millions)	Three months ended September 30,
	2025				2024
	Term		Whole life		Term		Whole life
Present value of expected net premiums:
Balance, beginning of period	$	1,678	$	220	$	1,620	$	215
Beginning balance at original discount rate	1,731		226		1,701		225
Effect of changes in cash flow assumptions	—		—		(1)		(1)
Effect of actual variances from expected experience	(11)		1		(4)		—
Adjusted beginning of period balance	1,720		227		1,696		224
Issuances	44		7		34		9
Interest accrual	19		2		20		2
Net premiums collected	(45)		(8)		(45)		(8)
Ending balance at original discount rate	1,738		228		1,705		227
Effect of changes in discount rate assumptions	(27)		(3)		3		—
Balance, end of period	1,711		225		1,708		227

Present value of expected future policy benefits:
Balance, beginning of period	2,720		634		2,634		619
Beginning balance at original discount rate	2,821		651		2,772		636
Effect of changes in cash flow assumptions	—		(1)		(1)		(2)
Effect of actual variances from expected experience	(16)		1		(7)		(1)
Adjusted beginning of period balance	2,805		651		2,764		633
Issuances	44		7		34		8
Interest accrual	32		8		32		8
Benefits paid	(37)		(9)		(48)		(8)
Ending balance at original discount rate	2,844		657		2,782		641
Effect of changes in discount rate assumptions	(52)		(3)		12		27
Balance, end of period	2,792		654		2,794		668

Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums	1,081		429		1,086		441
Impact of flooring at cohort level	18		1		22		—
Net life policy reserves	1,099		430		1,108		441
Less reinsurance recoverable at original discount rate	(67)		(25)		(92)		(25)
Less effect of discount rate assumption changes on reinsurance recoverable	(8)		(4)		(10)		(5)
Net life policy reserves, after reinsurance recoverable	$	1,024	$	401	$	1,006	$	411

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

Cincinnati Financial Corporation Third-Quarter 2025 10-Q

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(Dollars in millions)	Nine months ended September 30,
	2025				2024
	Term		Whole life		Term		Whole life
Present value of expected net premiums:
Balance, beginning of period	$	1,638	$	218	$	1,700	$	223
Beginning balance at original discount rate	1,719		228		1,712		225
Effect of changes in cash flow assumptions	(4)		—		(13)		—
Effect of actual variances from expected experience	(14)		—		(23)		(3)
Adjusted beginning of period balance	1,701		228		1,676		222
Issuances	120		14		110		20
Interest accrual	57		7		56		7
Net premiums collected	(140)		(21)		(137)		(22)
Ending balance at original discount rate	1,738		228		1,705		227
Effect of changes in discount rate assumptions	(27)		(3)		3		—
Balance, end of period	1,711		225		1,708		227

Present value of expected future policy benefits:
Balance, beginning of period	2,668		623		2,751		657
Beginning balance at original discount rate	2,812		646		2,765		628
Effect of changes in cash flow assumptions	(12)		(1)		(30)		—
Effect of actual variances from expected experience	(22)		—		(35)		(5)
Adjusted beginning of period balance	2,778		645		2,700		623
Issuances	120		14		110		20
Interest accrual	96		25		94		24
Benefits paid	(150)		(27)		(122)		(26)
Ending balance at original discount rate	2,844		657		2,782		641
Effect of changes in discount rate assumptions	(52)		(3)		12		27
Balance, end of period	2,792		654		2,794		668

Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums	1,081		429		1,086		441
Impact of flooring at cohort level	18		1		22		—
Net life policy reserves	1,099		430		1,108		441
Less reinsurance recoverable at original discount rate	(67)		(25)		(92)		(25)
Less effect of discount rate assumption changes on reinsurance recoverable	(8)		(4)		(10)		(5)
Net life policy reserves, after reinsurance recoverable	$	1,024	$	401	$	1,006	$	411

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

The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $2 million and $3 million at September 30, 2025 and 2024, respectively.

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The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies:


(Dollars in millions)	At September 30,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Term
Expected future benefit payments	$	4,996	$	2,792	$	4,840	$	2,794
Expected future gross premiums	4,675		2,764		4,524		2,736
Whole life
Expected future benefit payments	$	1,729	$	654	$	1,702	$	668
Expected future gross premiums	698		427		687		428

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


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Gross premiums
Term	$	76	$	72	$	227	$	221
Whole life	14		15		41		41

Total	$	90	$	87	$	268	$	262
Interest accretion
Term	$	13	$	12	$	39	$	38
Whole life	6		6		18		17

Total	$	19	$	18	$	57	$	55

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the nine months ended September 30, 2025, and 2024.

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


	At September 30,
	2025		2024
Term
Interest accretion rate	5.22	%	5.21	%
Current discount rate	4.78		4.53
Whole life
Interest accretion rate	5.85	%	5.89	%
Current discount rate	5.51		5.14

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

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


(Dollars in millions)	Three months ended September 30,												Nine months ended September 30,
	2025						2024						2025						2024
	Deferred annuity			Universal life			Deferred annuity			Universal life			Deferred annuity			Universal life			Deferred annuity			Universal life
Balance, beginning of period	$	575		$	454		$	618		$	456		$	595		$	456		$	656		$	457
Premiums received	7			8			10			9			19			27			29			28
Policy charges	—			(10)			—			(10)			—			(30)			—			(30)
Surrenders and withdrawals	(15)			(3)			(25)			(2)			(50)			(9)			(88)			(9)
Benefit payments	(7)			(1)			(4)			(1)			(15)			(6)			(9)			(4)
Interest credited	5			5			6			4			16			15			17			14

Balance, end of period	$	565		$	453		$	605		$	456		$	565		$	453		$	605		$	456

Weighted average crediting rate	3.71		%	4.43		%	3.64		%	4.36		%	3.71		%	4.43		%	3.64		%	4.36		%
Net amount at risk	$	—		$	3,719		$	—		$	3,865		$	—		$	3,719		$	—		$	3,865
Cash surrender value	559			426			599			426			559			426			599			426

The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances.

The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts:


(Dollars in millions)	At guaranteed minimum		1 to 50 basis points above		51-150 basis points above		Greater than 150 basis points		Total
At September 30, 2025
Deferred annuity
1.00-3.00%	$	63	$	205	$	14	$	237	$	519
3.01-4.00%	46		—		—		—		46

Total	$	109	$	205	$	14	$	237	$	565
Universal life
1.00-3.00%	$	—	$	54	$	57	$	15	$	126
3.01-4.00%	51		—		4		—		55
Greater than 4.00%	272		—		—		—		272
Total	$	323	$	54	$	61	$	15	$	453

At September 30, 2024
Deferred annuity
1.00-3.00%	$	4	$	309	$	14	$	231	$	558
3.01-4.00%	47		—		—		—		47

Total	$	51	$	309	$	14	$	231	$	605
Universal life
1.00-3.00%	$	—	$	55	$	64	$	5	$	124
3.01-4.00%	50		—		4		—		54
Greater than 4.00%	278		—		—		—		278
Total	$	328	$	55	$	68	$	5	$	456

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The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts:


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Balance, beginning of period	$	132	$	128	$	130	$	128

Balance, beginning of period before shadow reserve adjustments	133		130		131		129
Effect of changes in cash flow assumptions	(1)		—		(1)		(2)
Effect of actual variances from expected experience	1		—		3		—
Adjusted beginning of period balance	133		130		133		127
Interest accrual	1		1		3		3
Excess death benefits	(2)		(2)		(11)		(5)
Attributed assessments	3		3		9		9

Effect of changes in interest rate assumptions	1		3		2		1
Balance, end of period before shadow reserve adjustments	136		135		136		135
Shadow reserve adjustments	(1)		(1)		(1)		(1)
Balance, end of period	135		134		135		134
Less reinsurance recoverable, end of period	6		6		6		6

Net other additional liability, after reinsurance recoverable	$	141	$	140	$	141	$	140

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

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


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Balance, beginning of period	$	991	$	948	$	952	$	925
Interest credited before policy charges	12		10		34		31

Benefit payments	(1)		—		(9)		(3)




Other	(31)		(15)		(6)		(10)
Balance, end of period	$	971	$	943	$	971	$	943

Cash surrender value	$	969	$	941	$	969	$	941

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NOTE 6 – Deferred Policy Acquisition Costs

Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income.

The table below shows the deferred policy acquisition costs and asset reconciliation.


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Property casualty:
Deferred policy acquisition costs asset, beginning of period	$	1,005	$	878	$	886	$	749
Capitalized deferred policy acquisition costs	458		436		1,456		1,318
Amortized deferred policy acquisition costs	(469)		(427)		(1,348)		(1,180)
Deferred policy acquisition costs asset, end of period	$	994	$	887	$	994	$	887

Life:
Deferred policy acquisition costs asset, beginning of period	$	362	$	351	$	356	$	344
Capitalized deferred policy acquisition costs	11		11		33		33
Amortized deferred policy acquisition costs	(7)		(8)		(23)		(23)

Deferred policy acquisition costs asset, end of period	$	366	$	354	$	366	$	354

Consolidated:
Deferred policy acquisition costs asset, beginning of period	$	1,367	$	1,229	$	1,242	$	1,093
Capitalized deferred policy acquisition costs	469		447		1,489		1,351
Amortized deferred policy acquisition costs	(476)		(435)		(1,371)		(1,203)

Deferred policy acquisition costs asset, end of period	$	1,360	$	1,241	$	1,360	$	1,241

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


(Dollars in millions)
Three months ended September 30, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	251	$	53	$	7	$	51	$	362
Capitalized deferred policy acquisition costs	9		1		1		—		11
Amortized deferred policy acquisition costs	(6)		—		—		(1)		(7)
Balance, end of period	$	254	$	54	$	8	$	50	$	366

Three months ended September 30, 2024
Balance, beginning of period	$	241	$	50	$	8	$	52	$	351
Capitalized deferred policy acquisition costs	9		1		—		1		11
Amortized deferred policy acquisition costs	(7)		—		—		(1)		(8)
Balance, end of period	$	243	$	51	$	8	$	52	$	354


(Dollars in millions)
Nine months ended September 30, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	245	$	52	$	8	$	51	$	356
Capitalized deferred policy acquisition costs	27		4		1		1		33
Amortized deferred policy acquisition costs	(18)		(2)		(1)		(2)		(23)
Balance, end of period	$	254	$	54	$	8	$	50	$	366

Nine months ended September 30, 2024
Balance, beginning of period	$	236	$	48	$	8	$	52	$	344
Capitalized deferred policy acquisition costs	25		5		1		2		33
Amortized deferred policy acquisition costs	(18)		(2)		(1)		(2)		(23)
Balance, end of period	$	243	$	51	$	8	$	52	$	354

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NOTE 7 – Accumulated Other Comprehensive Income

Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows:


(Dollars in millions)	Three months ended September 30,
	2025						2024
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(458)	$	(99)	$	(359)	$	(700)	$	(151)	$	(549)


OCI before investment gains and losses, net, recognized in net income	242		51		191		411		88		323
Investment gains and losses, net, recognized in net income	(1)		—		(1)		86		18		68
OCI	241		51		190		497		106		391
AOCI, end of period	$	(217)	$	(48)	$	(169)	$	(203)	$	(45)	$	(158)

Pension obligations:
AOCI, beginning of period	$	73	$	17	$	56	$	31	$	8	$	23
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	—		—		—		—		—		—
OCI	—		—		—		—		—		—
AOCI, end of period	$	73	$	17	$	56	$	31	$	8	$	23

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	69	$	15	$	54	$	71	$	15	$	56


OCI before investment gains and losses, net, recognized in net income	(32)		(7)		(25)		(91)		(20)		(71)
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(32)		(7)		(25)		(91)		(20)		(71)
AOCI, end of period	$	37	$	8	$	29	$	(20)	$	(5)	$	(15)

Summary of AOCI:
AOCI, beginning of period	$	(316)	$	(67)	$	(249)	$	(598)	$	(128)	$	(470)


Investments OCI	241		51		190		497		106		391
Pension obligations OCI	—		—		—		—		—		—
Life policy reserves, reinsurance recoverable and other OCI	(32)		(7)		(25)		(91)		(20)		(71)
Total OCI	209		44		165		406		86		320
AOCI, end of period	$	(107)	$	(23)	$	(84)	$	(192)	$	(42)	$	(150)

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(Dollars in millions)	Nine months ended September 30,
	2025						2024
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)


OCI before investment gains and losses, net, recognized in net income	323		68		255		253		54		199
Investment gains and losses, net, recognized in net income	13		3		10		114		24		90
OCI	336		71		265		367		78		289
AOCI, end of period	$	(217)	$	(48)	$	(169)	$	(203)	$	(45)	$	(158)

Pension obligations:
AOCI, beginning of period	$	75	$	17	$	58	$	30	$	8	$	22
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	(2)		—		(2)		1		—		1
OCI	(2)		—		(2)		1		—		1
AOCI, end of period	$	73	$	17	$	56	$	31	$	8	$	23

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)


OCI before investment gains and losses, net, recognized in net income	(48)		(10)		(38)		(7)		(2)		(5)
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(48)		(10)		(38)		(7)		(2)		(5)
AOCI, end of period	$	37	$	8	$	29	$	(20)	$	(5)	$	(15)

Summary of AOCI:
AOCI, beginning of period	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)


Investments OCI	336		71		265		367		78		289
Pension obligations OCI	(2)		—		(2)		1		—		1
Life policy reserves, reinsurance recoverable and other OCI	(48)		(10)		(38)		(7)		(2)		(5)
Total OCI	286		61		225		361		76		285
AOCI, end of period	$	(107)	$	(23)	$	(84)	$	(192)	$	(42)	$	(150)

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.

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NOTE 8 – Reinsurance

Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions.

The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses:


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Direct written premiums	$	2,482	$	2,285	$	7,542	$	6,772
Assumed written premiums	98		102		597		577
Ceded written premiums	(87)		(94)		(418)		(349)
Net written premiums	$	2,493	$	2,293	$	7,721	$	7,000

Direct earned premiums	$	2,440	$	2,179	$	7,020	$	6,128
Assumed earned premiums	162		159		514		466
Ceded earned premiums	(118)		(121)		(389)		(310)
Earned premiums	$	2,484	$	2,217	$	7,145	$	6,284

Direct incurred loss and loss expenses	$	1,408	$	1,415	$	5,065	$	3,960
Assumed incurred loss and loss expenses	78		103		405		242
Ceded incurred loss and loss expenses	(22)		(19)		(532)		(21)
Incurred loss and loss expenses	$	1,464	$	1,499	$	4,938	$	4,181

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Our life insurance company purchases reinsurance for protection of a portion of the risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles.

The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred:


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Direct earned premiums	$	104	$	101	$	307	$	301

Ceded earned premiums	(21)		(21)		(61)		(61)
Earned premiums	$	83	$	80	$	246	$	240

Direct contract holders' benefits incurred	$	91	$	92	$	289	$	262

Ceded contract holders' benefits incurred	(15)		(13)		(59)		(36)
Contract holders' benefits incurred	$	76	$	79	$	230	$	226

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

The allowance for uncollectible property casualty premiums receivable was $18 million at both September 30, 2025, and December 31, 2024. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at September 30, 2025, and December 31, 2024.

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NOTE 9 – Income Taxes

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


(Dollars in millions)	Three months ended September 30,								Nine months ended September 30,
	2025				2024				2025				2024
Tax at statutory rate:	$	296	21.0	%	$	219	21.0	%	$	449	21.0	%	$	500	21.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(6)		(0.4)		(5)		(0.5)		(17)		(0.8)		(16)		(0.7)
Dividend received exclusion	(5)		(0.4)		(6)		(0.6)		(16)		(0.7)		(16)		(0.7)

Other	6		0.4		12		1.3		7		0.3		24		1.1
Provision for income taxes	$	291	20.6	%	$	220	21.2	%	$	423	19.8	%	$	492	20.7	%

The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries.

The One Big Beautiful Bill Act (the “Tax Act”) was enacted on July 4, 2025, and makes permanent several provisions from the 2017 Tax Cuts and Jobs Act. Applicable impacts of the Tax Act have been reflected in the tax provision

at September 30, 2025, and do not have a material impact on our consolidated financial statements.

We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations and those related to Cincinnati Global Underwriting Ltd.SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both September 30, 2025, and December 31, 2024.

Cincinnati Global

Cincinnati Global had no operating loss carryforwards in the United States and $50 million and $78 million in the United Kingdom at September 30, 2025, and December 31, 2024, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group.

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NOTE 10 – Net Income Per Common Share

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share:


(In millions, except per share data)		Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Numerator:
Net income—basic and diluted		$	1,122		$	820		$	1,717		$	1,887
Denominator:
Basic weighted-average common shares outstanding		156.1			156.2			156.3			156.5
Effect of share-based awards:
Stock options		1.1			0.9			1.0			0.7
Nonvested shares		0.6			0.6			0.5			0.5
Diluted weighted-average shares		157.8			157.7			157.8			157.7
Earnings per share:
Basic		$	7.19		$	5.25		$	10.99		$	12.06
Diluted		$	7.11		$	5.20		$	10.88		$	11.97
Number of anti-dilutive share-based awards		0.3			0.6			0.4			1.3

The source of dilution of our common shares are certain equity-based awards. See our 2024 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 173, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three and nine months ended September 30, 2025 and 2024.

NOTE 11 – Employee Retirement Benefits

The following summarizes the components of net periodic benefit for our qualified and supplemental pension plans:


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Service cost	$	2	$	1	$	4	$	4
Non-service (benefit) costs:
Interest cost	3		4		10		10
Expected return on plan assets	(6)		(5)		(17)		(16)
Amortization of actuarial (gain) loss and prior service cost	—		—		(2)		1

Total non-service benefit	(3)		(1)		(9)		(5)
Net periodic benefit	$	(1)	$	—	$	(5)	$	(1)

See our 2024 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 167, for information on our retirement benefits. The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2025 and 2024.

We made matching contributions totaling $7 million to our 401(k) and Top Hat savings plans during both the third quarter of 2025 and 2024 and contributions of $26 million and $23 million for the first nine months of 2025 and 2024, respectively.

We made no contributions to our qualified pension plan during the first nine months of 2025.

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NOTE 12 – Commitments and Contingent Liabilities

The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending third-party claims brought against insureds and as an insurer defending against coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows.

The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of state or national classes. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates.

On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial.

NOTE 13 – Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker (CODM) is the chief executive officer who regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are:

Commercial lines insurance
Personal lines insurance
Excess and surplus lines insurance
Life insurance
Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2024 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 176, for a description of revenue, income or loss before income taxes, including its components, and identifiable assets for each of the five segments.

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Segment information is summarized in the following table:


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024

Commercial lines insurance





Commercial lines insurance premiums	$	1,229	$	1,137	$	3,620	$	3,326
Fee revenues	2		1		4		3
Total commercial lines insurance revenues	1,231		1,138		3,624		3,329
Loss and loss expenses	747		706		2,249		2,171
Underwriting expenses	373		351		1,080		1,028
Total commercial lines income before income taxes	111		81		295		130

Personal lines insurance



Personal lines insurance premiums	838		678		2,340		1,897
Fee revenues	1		2		4		4
Total personal lines insurance revenues	839		680		2,344		1,901
Loss and loss expenses	507		553		1,951		1,421
Underwriting expenses	233		196		665		554
Total personal lines income (loss) before income taxes	99		(69)		(272)		(74)

Excess and surplus lines insurance
Excess and surplus lines insurance premiums	174		157		510		447
Fee revenues	1		—		3		2
Total excess and surplus lines insurance revenues	175		157		513		449
Loss and loss expenses	108		107		317		299
Underwriting expenses	48		42		141		122
Total excess and surplus lines income before income taxes	19		8		55		28

Life insurance
Life insurance premiums	83		80		246		240
Fee revenues	1		1		4		4
Total life insurance revenues	84		81		250		244
Contract holders' benefits incurred	76		79		230		226
Investment interest credited to contract holders	(32)		(32)		(95)		(94)
Underwriting expenses incurred	23		24		70		70
Total life insurance income before income taxes	17		10		45		42

Investments
Investment income, net of expenses	295		258		860		745
Investment gains and losses, net	853		758		1,259		1,507
Total investment revenue	1,148		1,016		2,119		2,252
Investment interest credited to contract holders	32		32		95		94
Total investment income before income taxes	1,116		984		2,024		2,158

Reconciliation to condensed consolidated income before income taxes
Total segment revenues	3,477		3,072		8,850		8,175
Other earned premiums	243		245		675		614
Other revenues	6		3		15		10
Total revenues	3,726		3,320		9,540		8,799
Total segment benefits and expenses	2,115		2,058		6,703		5,891
Other loss and loss expenses	102		133		421		290
Other underwriting expenses	77		70		209		180
Other benefits and expenses	19		19		67		59
Total benefits and expenses	2,313		2,280		7,400		6,420
Total income before income taxes	$	1,413	$	1,040	$	2,140	$	2,379

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Identifiable assets by segment are summarized in the following table:


(Dollars in millions)	September 30,		December 31,
	2025		2024
Identifiable assets:
Property casualty insurance	$	7,078	$	5,927
Life insurance	1,689		1,658
Investments	30,575		27,887
Other	1,225		1,029
Total	$	40,567	$	36,501

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