Item 2. Management’s Discussion and Analysis of Financial Condition and

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Item 2. Management’s Discussion and Analysis of Financial Condition and

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 business segment if pricing and loss trends would lead management to conclude that the segment could not achieve sustainable profitability
Unforeseen departure of certain executive officers or other key employees that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others
Our inability, or the inability of our independent agents, to attract and retain personnel
Events, such as a pandemic, an epidemic, natural catastrophe, or terrorism, which could hamper our ability to assemble our workforce, work effectively in a remote environment, or other failures of business continuity or disaster recovery programs

Regulatory, Compliance, and Legal Risks

Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:

◦Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates

◦Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules, and regulations

◦Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business

◦Increase assessments for guaranty funds, other insurance‑related assessments, or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes

◦Increase our provision for federal income taxes due to changes in tax laws, regulations, or interpretations

◦Increase other expenses

◦Limit our ability to set fair, adequate, and reasonable rates

◦Restrict our ability to cancel policies

◦Impose new underwriting standards

◦Place us at a disadvantage in the marketplace

◦Restrict our ability to execute our business model, including the way we compensate agents

Adverse outcomes from litigation, environmental claims, mass torts or administrative proceedings, including effects of social inflation and third-party litigation funding on the size and frequency of litigation awards
Events or actions, including unauthorized intentional circumvention of controls, which reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002
Effects of changing social, global, economic, and regulatory environments
Additional measures affecting corporate financial reporting and governance that can affect the market value of our common stock

Risks and uncertainties are further discussed in other filings with the Securities and Exchange Commission, including our 2024 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

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CORPORATE FINANCIAL HIGHLIGHTS

Net Income and Comprehensive Income Data


(Dollars in millions, except per share data)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Earned premiums	$	2,567	$	2,297	12	$	7,391	$	6,524	13
Investment income, net of expenses (pretax)	295		258		14	860		745		15
Investment gains and losses, net (pretax)	853		758		13	1,259		1,507		(16)
Total revenues	3,726		3,320		12	9,540		8,799		8
Net income	1,122		820		37	1,717		1,887		(9)
Comprehensive income	1,287		1,140		13	1,942		2,172		(11)
Net income per share—diluted	7.11		5.20		37	10.88		11.97		(9)
Cash dividends declared per share	0.87		0.81		7	2.61		2.43		7
Diluted weighted average shares outstanding	157.8		157.7		0	157.8		157.7		0

Total revenues increased $406 million for the third quarter of 2025, compared with the third quarter of 2024, including higher earned premiums, net investment gains and investment income. For the first nine months of 2025, compared with the same period of 2024, total revenues increased $741 million, primarily due to higher earned premiums and investment income offset by a decrease in net investment gains. Premium and investment revenue trends are discussed further in the respective sections of Financial Results.

Investment gains and losses are recognized on the sales of investments, on certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP. We have substantial discretion in the timing of investment sales, and that timing generally is independent of the insurance underwriting process. The change in fair value of securities is also generally independent of the insurance underwriting process.

Net income for the third quarter of 2025, compared with the third quarter of 2024, increased $302 million, including increases of $77 million in after-tax net investment gains and losses, $182 million in after-tax property casualty underwriting profit and $30 million in after-tax investment income. Catastrophe losses for the third quarter of 2025, mostly weather related, were $152 million lower after taxes and contributed favorably to both net income and property casualty underwriting profit. Life insurance segment results increased by $7 million on a pretax basis.

For the first nine months of 2025, net income decreased $170 million, compared with the first nine months of 2024,

including decreases of $193 million in after-tax investment gains and losses and $83 million in after-tax property casualty underwriting income, partially offset by an increase of $92 million in after-tax investment income. The property casualty underwriting income decrease included an unfavorable $248 million after-tax effect from higher catastrophe losses. Life insurance segment results increased by $3 million on a pretax basis.

Performance by segment is discussed below in Financial Results. As discussed in our 2024 Annual Report on Form 10-K, Item 7, Executive Summary, Page 46, there are several reasons why our performance during 2025 may ultimately be below our long-term targets.

The board of directors is committed to rewarding shareholders directly through cash dividends and through share repurchase authorizations. Through 2024, the company had increased the annual cash dividend rate for 64 consecutive years, a record we believe is matched by only seven other U.S. publicly traded companies. In January 2025, the board of directors increased the regular quarterly dividend to 87 cents per share, setting the stage for our 65th consecutive year of increasing cash dividends. During the first nine months of 2025, cash dividends declared by the company increased 7% compared with the same period of 2024. Our board regularly evaluates relevant factors in decisions related to dividends and share repurchases. The 2025 dividend increase reflected our strong operating performance and signaled management's and the board's positive outlook and confidence in our outstanding capital, liquidity and financial flexibility.

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Balance Sheet Data and Performance Measures


(Dollars in millions, except share data)	At September 30,			At December 31,
	2025			2024
Total investments	$	31,099		$	28,378
Total assets	40,567			36,501
Short-term debt	25			25
Long-term debt	790			790
Shareholders' equity	15,406			13,935
Book value per share	98.76			89.11
Debt-to-total-capital ratio	5.0		%	5.5		%

Total assets at September 30, 2025, increased 11% compared with year-end 2024, and included an increase of 10% in total investments that reflected net purchases and higher fair values for many securities in our equity portfolio. Shareholders' equity increased 11% and book value per share also increased 11% during the first nine months of 2025. Our debt-to-total-capital ratio (capital is the sum of debt plus shareholders' equity) decreased slightly compared with year-end 2024.

Our value creation ratio is our primary performance metric. As shown in the tables below, that ratio was 13.8% for the first nine months of 2025, compared with 17.8% for the same period in 2024. The decrease was primarily due to a reduction in overall net gains from our investment portfolio. Book value per share increased $9.65 during the first nine months of 2025 and contributed 10.9 percentage points to the value creation ratio, while dividends declared at $2.61 per share contributed 2.9 points. Value creation ratio major contributors and in total, along with calculations from per-share amounts, are shown in the tables below.


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Value creation ratio major contributors:
Net income before investment gains	3.1	%	1.7	%	5.2	%	5.8	%
Change in fixed-maturity securities, realized and unrealized gains	1.3		2.5		1.8		1.6
Change in equity securities, investment gains	4.7		5.2		7.1		10.4
Other	(0.2)		(0.4)		(0.3)		0.0
Value creation ratio	8.9	%	9.0	%	13.8	%	17.8	%

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(Dollars are per share)	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Value creation ratio:
End of period book value*	$	98.76		$	88.32		$	98.76		$	88.32
Less beginning of period book value	91.46			81.79			89.11			77.06
Change in book value	7.30			6.53			9.65			11.26
Dividend declared to shareholders	0.87			0.81			2.61			2.43
Total value creation	$	8.17		$	7.34		$	12.26		$	13.69

Value creation ratio from change in book value**	8.0		%	8.0		%	10.9		%	14.6		%
Value creation ratio from dividends declared to shareholders***	0.9			1.0			2.9			3.2
Value creation ratio	8.9		%	9.0		%	13.8		%	17.8		%

* Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding
** Change in book value divided by the beginning of period book value
*** Dividend declared to shareholders divided by beginning of period book value

DRIVERS OF LONG-TERM VALUE CREATION

Operating through The Cincinnati Insurance Company, Cincinnati Financial Corporation is one of the 25 largest property casualty insurers in the nation, based on 2024 net written premiums for approximately 2,000 U.S. stock and mutual insurer groups. We market our insurance products through a select group of independent insurance agencies as discussed in our 2024 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Page 6. At September 30, 2025, we actively marketed through 2,275 agencies located in 46 states. We maintain a long-term perspective that guides us in addressing immediate challenges or opportunities while focusing on the major decisions that best position our company for success through all market cycles.

To measure our long-term progress in creating shareholder value, our value creation ratio is our primary financial performance target. As discussed in our 2024 Annual Report on Form 10-K, Item 7, Executive Summary, Page 46, management believes this measure is a meaningful indicator of our long-term progress in creating shareholder value and has three primary performance drivers:

Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first nine months of 2025, our consolidated property casualty net written premium year-over-year growth was 10%, comparing favorably with the industry's 6% growth rate reported by A.M. Best for the first six months of 2025. For the five-year period 2020 through 2024, our growth rate exceeded that of the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business.
Combined ratio – We believe our underwriting philosophy and initiatives can generate an average GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%. For the first nine months of 2025, our GAAP combined ratio was 98.4%, including 14.2 percentage points of current accident year catastrophe losses partially offset by 2.5 percentage points of favorable loss reserve development on prior accident years. Our statutory combined ratio was 97.7% for the first nine months of 2025, comparing unfavorably with the industry's 96.4% reported by A.M. Best for the first six months of 2025. The industry's ratio again excludes its mortgage and financial guaranty lines of business.
Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index. For the first nine months of 2025, pretax investment income was $860 million, up 15% compared with the same period in 2024. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential.

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Financial Strength

An important part of our long-term strategy is financial strength, which is described in our 2024 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Financial Strength, Page 8. One aspect of our financial strength is prudent use of reinsurance ceded to help manage financial performance variability due to catastrophe loss experience. A description of how we use reinsurance ceded is included in our 2024 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, 2025 Reinsurance Ceded Programs, Page 105. Another aspect of our financial strength is our investment portfolio, which remains well-diversified as discussed in this quarterly report in Item 3, Quantitative and Qualitative Disclosures About Market Risk. Our strong parent-company liquidity and financial strength increase our flexibility to maintain a cash dividend through all periods and to continue to invest in and expand our insurance operations.

At September 30, 2025, we held $5.579 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $5.052 billion, or 90.6%, was invested in common stocks, and $249 million, or 4.5%, was cash or cash equivalents. Our debt-to-total-capital ratio was 5.0% at September 30, 2025. Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.0-to-1 for the 12 months ended September 30, 2025, matching year-end 2024.

Financial strength ratings assigned to us by independent rating firms also are important. In addition to rating our parent company's senior debt, four firms award insurer financial strength ratings to one or more of our insurance subsidiary companies based on their quantitative and qualitative analyses. These ratings primarily assess an insurer's ability to meet financial obligations to policyholders and do not necessarily address all of the matters that may be important to investors. Ratings are under continuous review and subject to change or withdrawal at any time by the rating agency. Each rating should be evaluated independently of any other rating; please see each rating agency's website for its most recent report on our ratings.

At October 24, 2025, our insurance subsidiaries continued to be highly rated.


Insurer Financial Strength Ratings
Rating agency	Standard market property casualty insurance subsidiaries			Life insurance subsidiary			Excess and surplus lines insurance subsidiary			Outlook
			Rating tier			Rating tier			Rating tier
A.M. Best Co. ambest.com	A+	Superior	2 of 16	A+	Superior	2 of 16	A+	Superior	2 of 16	Stable
Fitch Ratings fitchratings.com	AA-	Very Strong	4 of 21	AA-	Very Strong	4 of 21	-	-	-	Stable
Moody's Investors Service moodys.com	A1	Good	5 of 21	-	-	-	-	-	-	Stable
S&P Global Ratings spratings.com	A+	Strong	5 of 21	A+	Strong	5 of 21	-	-	-	Stable

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CONSOLIDATED PROPERTY CASUALTY INSURANCE HIGHLIGHTS

Consolidated property casualty insurance results include premiums and expenses for our standard market insurance segments (commercial lines and personal lines), our excess and surplus lines segment, Cincinnati Re® and our London-based global specialty underwriter Cincinnati Global Underwriting Ltd.SM (Cincinnati Global).


(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Earned premiums	$	2,484		$	2,217		12	$	7,145		$	6,284		14
Fee revenues	4			3			33	11			9			22
Total revenues	2,488			2,220			12	7,156			6,293			14
Loss and loss expenses from:
Current accident year before catastrophe losses	1,375			1,264			9	4,099			3,683			11
Current accident year catastrophe losses	111			306			(64)	1,015			709			43
Prior accident years before catastrophe losses	(6)			(53)			89	(113)			(140)			19
Prior accident years catastrophe losses	(16)			(18)			11	(63)			(71)			11
Loss and loss expenses	1,464			1,499			(2)	4,938			4,181			18
Underwriting expenses	731			659			11	2,095			1,884			11
Underwriting profit	$	293		$	62		373	$	123		$	228		(46)

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year before catastrophe losses	55.4		%	57.0		%	(1.6)	57.4		%	58.6		%	(1.2)
Current accident year catastrophe losses	4.4			13.8			(9.4)	14.2			11.2			3.0
Prior accident years before catastrophe losses	(0.2)			(2.4)			2.2	(1.6)			(2.2)			0.6
Prior accident years catastrophe losses	(0.7)			(0.8)			0.1	(0.9)			(1.1)			0.2
Loss and loss expenses	58.9			67.6			(8.7)	69.1			66.5			2.6
Underwriting expenses	29.3			29.8			(0.5)	29.3			30.0			(0.7)
Combined ratio	88.2		%	97.4		%	(9.2)	98.4		%	96.5		%	1.9

Combined ratio	88.2		%	97.4		%	(9.2)	98.4		%	96.5		%	1.9
Contribution from catastrophe losses and prior years reserve development	3.5			10.6			(7.1)	11.7			7.9			3.8
Combined ratio before catastrophe losses and prior years reserve development	84.7		%	86.8		%	(2.1)	86.7		%	88.6		%	(1.9)

Our consolidated property casualty insurance operations generated an underwriting profit of $293 million for the third quarter and $123 million for the first nine months of 2025. The third-quarter 2025 underwriting profit increase of $231 million, compared with third-quarter 2024, included a favorable decrease of $193 million in losses from catastrophes, mostly caused by severe weather, partially offset by a lower amount of total favorable reserve development on prior accident years. The change in underwriting profitability for the third quarter of 2025 also included a favorable effect from higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums. The nine-month underwriting profit of $123 million, compared with an underwriting profit of $228 million for the first nine months of 2024, included an unfavorable increase of $306 million in current accident year catastrophe losses, mostly caused by the January 2025 wildfires in southern California, and a lower amount of total favorable reserve development on prior accident years. For the first nine months of 2025, the combined ratio before catastrophe losses and prior years reserve development improved by 1.9 percentage points compared with the same period of 2024.

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Underwriting results for the third quarter and first nine months of 2025 included improved current accident year loss experience before catastrophe losses, as price increases have helped to offset recent-year elevated paid losses reflecting economic or other forms of inflation. Elevated inflation was a driver of higher losses and loss expenses in recent years as costs have increased significantly to repair damaged autos or other property that we insure. We also experienced higher losses for liability coverages for some of our lines of business. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear. The higher loss experience is discussed in Financial Results by property casualty insurance segment. We believe future property casualty underwriting results will continue to benefit from price increases and our ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices.

For all property casualty lines of business in aggregate, net loss and loss expense reserves at September 30, 2025, were $1.076 billion, or 11%, higher than at year-end 2024, including an increase of $900 million for the incurred but not reported (IBNR) portion.

We measure and analyze property casualty underwriting results primarily by the combined ratio and its component ratios. The GAAP-basis combined ratio is the percentage of incurred losses plus all expenses per each earned premium dollar – the lower the ratio, the better the performance. An underwriting profit results when the combined ratio is below 100%. A combined ratio above 100% indicates that an insurance company's losses and expenses exceeded premiums.

Our consolidated property casualty combined ratio for the third quarter of 2025 decreased by 9.2 percentage points, compared with the same period of 2024, including a decrease of 9.3 points from catastrophe losses and loss expenses. For the first nine months of 2025, compared with the 2024 nine-month period, our combined ratio increased by 1.9 percentage points, including an increase of 3.2 points from catastrophe losses and loss expenses. Other combined ratio components that changed are discussed below and in further detail in Financial Results by property casualty insurance segment.

The combined ratio can be affected significantly by natural catastrophe losses and other large losses as discussed in detail below. The combined ratio can also be affected by updated estimates of loss and loss expense reserves established for claims that occurred in prior periods, referred to as prior accident years. Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 2.5 percentage points in the first nine months of 2025, compared with 3.3 percentage points in the same period of 2024. Net favorable development is discussed in further detail in Financial Results by property casualty insurance segment.

The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first nine months of 2025. That 57.4% ratio was 1.2 percentage points lower, compared with the 58.6% accident year 2024 ratio measured as of September 30, 2024, including an increase of 0.2 points in the ratio for large losses of $2 million or more per claim, discussed below. The ratio improvement of 1.2 percentage points included an increase of 1.0 points for the IBNR portion and a decrease of 2.2 points for the case incurred portion. It also included an unfavorable 0.4 points for the net effect of $49 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.

The underwriting expense ratio decreased for the third quarter and first nine months of 2025, compared with the same periods a year ago. The decreases were primarily due to premium growth outpacing growth in various expenses. The nine-month 2025 ratio also included an unfavorable 0.2 points for the effect of reinstatement premiums. The ratio for both periods also included ongoing expense management efforts.

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Consolidated Property Casualty Insurance Premiums


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Agency renewal written premiums	$	2,037	$	1,795	13	$	6,084	$	5,321	14
Agency new business written premiums	356		406		(12)	1,143		1,159		(1)


Other written premiums	100		92		9	494		520		(5)
Net written premiums	2,493		2,293		9	7,721		7,000		10
Unearned premium change	(9)		(76)		88	(576)		(716)		20
Earned premiums	$	2,484	$	2,217	12	$	7,145	$	6,284	14

The trends in net written premiums and earned premiums summarized in the table above include the effects of price increases. Price change trends that heavily influence renewal written premium increases or decreases, along with other premium growth drivers for 2025, are discussed in more detail by segment below in Financial Results.

Consolidated property casualty net written premiums for the third quarter and nine months ended September 30, 2025, grew $200 million and $721 million compared with the same periods of 2024. Our premium growth initiatives from prior years have provided an ongoing favorable effect on growth during the current year, particularly as newer agency relationships mature over time.

Consolidated property casualty agency new business written premiums decreased by $50 million for the third quarter and $16 million for the first nine months of 2025, compared with the same periods of 2024, largely driven by the personal lines segment. Consolidated property casualty new business written premiums for third-quarter 2025 decreased 12% compared with a 30% increase in the third quarter of 2024. New agency appointments during 2025 and 2024 produced a $72 million increase in standard lines new business for the first nine months of 2025 compared with the same period of 2024. As we appoint new agencies that choose to move accounts to us, we report these accounts as new business. While this business is new to us, in many cases it is not new to the agent. We believe these seasoned accounts tend to be priced more accurately than business that may be less familiar to our agent upon obtaining it from a competing agent.

Net written premiums for Cincinnati Re, included in other written premiums, decreased by $2 million in the third quarter and increased $7 million for the nine months ended September 30, 2025, compared with the same periods of 2024, to $87 million and $505 million, respectively. Cincinnati Re assumes risks through reinsurance treaties and in some cases cedes part of the risk and related premiums to one or more unaffiliated reinsurance companies through transactions known as retrocessions.

Cincinnati Global is also included in other written premiums. Net written premiums for Cincinnati Global increased by $5 million in the third quarter and $29 million for the nine months ended September 30, 2025, to $82 million and $255 million, respectively, compared with the same periods of 2024.

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Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. A decrease in ceded premiums increased net written premiums by $6 million for the third quarter and an increase in ceded premiums decreased net written premiums by $69 million for the first nine months of 2025, compared with the same periods of 2024. Other written premiums for the first nine months of 2025 included a net unfavorable amount of $49 million for reinsurance treaty reinstatement premiums related to the California wildfires, including a favorable $14 million for Cincinnati Re and an unfavorable $63 million for our personal lines insurance segment.

Catastrophe losses and loss expenses typically have a material effect on property casualty results and can vary significantly from period to period. Losses from catastrophes contributed 3.7 and 13.3 percentage points to the combined ratio in the third quarter and first nine months of 2025, compared with 13.0 and 10.1 percentage points in the same periods of 2024. During the third quarter of 2025, there were no material changes to our estimates of ultimate losses related to the California wildfires.

Net losses from catastrophes for the first nine months of 2025 included recoveries from reinsurers that participate in our primary property catastrophe reinsurance treaty. There were no material changes during the third quarter to the estimated recovery of $429 million as of March 31, 2025, related to the California wildfires.

Effective July 1, 2025, we purchased an additional layer on our property catastrophe reinsurance treaty with a limit of $300 million, increasing the total limit from $1.500 billion to $1.800 billion. We retain 57.2% of losses between $1.500 billion and $1.800 billion. The provisions of this additional layer are similar to those included in the other layers. The annual ceded premiums for this additional coverage are estimated to be less than $5 million.

Effective June 1, 2025, we renewed the reinsurance program for Cincinnati Re only, which provides retrocession coverages with various triggers, exclusions and unique features. The program includes property catastrophe excess of loss coverage in excess of $90 million per occurrence with a total available limit of $73 million per occurrence. Ceded premiums for the one-year renewal period of coverage from the program are estimated to be approximately $16 million. There were no material changes during the third quarter to the estimated recovery of $38 million as of March 31, 2025, related to the California wildfires for the Cincinnati Re only program effective June 1, 2024, which expired during the second quarter.

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The following table shows consolidated property casualty insurance catastrophe losses and loss expenses incurred, net of reinsurance, as well as the effect of loss development on prior period catastrophe events. We individually list declared catastrophe events for which our incurred losses reached or exceeded $25 million.

Consolidated Property Casualty Insurance Catastrophe Losses and Loss Expenses Incurred


(Dollars in millions, net of reinsurance)	Three months ended September 30,																				Nine months ended September 30,
			Comm.				Pers.				E&S												Comm.				Pers.				E&S
Dates	Region		lines				lines				lines				Other				Total				lines				lines				lines				Other				Total
2025
Jan. 7-28	West		$	—			$	1			$	—			$	—			$	1			$	—			$	325			$	—			$	123			$	448
Mar. 14-17	Midwest, Northeast, South		4				7				—				—				11				52				96				1				2				151
Apr. 1-7	Midwest, South		(2)				(7)				—				—				(9)				17				34				—				—				51
May 15-16	Midwest, Northeast		7				19				—				2				28				29				83				1				2				115












All other 2025 catastrophes	28				48				—				4				80				83				157				2				8				250
Development on 2024 and prior catastrophes	(5)				(8)				—				(3)				(16)				(22)				(34)				(1)				(6)				(63)
Calendar year incurred total	$	32			$	60			$	—			$	3			$	95			$	159			$	661			$	3			$	129			$	952

2024

Mar. 12-17	Midwest, South		$	(4)			$	4			$	—			$	—			$	—			$	30			$	32			$	—			$	—			$	62
Mar. 31 - Apr. 4	Midwest, Northeast, South		(4)				2				—				—				(2)				10				24				—				—				34
May 6-10	Midwest, South		—				2				1				—				3				19				30				1				—				50
May 25-26	Midwest, South		2				1				1				—				4				38				29				2				—				69
Jul. 13 - 18	Midwest, Northeast		18				11				—				—				29				18				11				—				—				29
Sep. 25 - 28	Midwest, South (Helene)		35				117				—				26				178				35				117				—				26				178


All other 2024 catastrophes	18				49				—				27				94				101				153				3				30				287
Development on 2023 and prior catastrophes	(5)				(5)				—				(8)				(18)				(20)				(32)				—				(19)				(71)
Calendar year incurred total	$	60			$	181			$	2			$	45			$	288			$	231			$	364			$	6			$	37			$	638

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The following table includes data for losses incurred of $2 million or more per claim, net of reinsurance.

Consolidated Property Casualty Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Current accident year losses greater than $5 million	$	48		$	18		167	$	89		$	49		82
Current accident year losses $2 million - $5 million	35			51			(31)	95			101			(6)
Large loss prior accident year reserve development	49			19			158	132			56			136
Total large losses incurred	132			88			50	316			206			53
Losses incurred but not reported	158			185			(15)	650			601			8
Other losses excluding catastrophe losses	831			711			17	2,260			2,129			6
Catastrophe losses	83			282			(71)	921			621			48
Total losses incurred	$	1,204		$	1,266		(5)	$	4,147		$	3,557		17

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year losses greater than $5 million	1.9		%	0.9		%	1.0	1.3		%	0.8		%	0.5
Current accident year losses $2 million - $5 million	1.4			2.3			(0.9)	1.3			1.6			(0.3)
Large loss prior accident year reserve development	2.0			0.8			1.2	1.8			0.9			0.9
Total large loss ratio	5.3			4.0			1.3	4.4			3.3			1.1
Losses incurred but not reported	6.4			8.4			(2.0)	9.1			9.6			(0.5)
Other losses excluding catastrophe losses	33.4			32.0			1.4	31.6			33.8			(2.2)
Catastrophe losses	3.4			12.7			(9.3)	12.9			9.9			3.0
Total loss ratio	48.5		%	57.1		%	(8.6)	58.0		%	56.6		%	1.4

We believe the inherent variability of aggregate loss experience for our portfolio of larger policies is greater than that of our portfolio of smaller policies, and we continue to monitor the variability in addition to general inflationary trends in loss costs. Our analysis continues to indicate no unexpected concentration of large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The third-quarter 2025 property casualty total large losses incurred of $132 million, net of reinsurance, was higher than the $70 million quarterly average during full-year 2024 and the $88 million experienced for the third quarter of 2024. The ratio for these large losses was 1.3 percentage points higher compared with last year's third quarter. The third-quarter 2025 amount of total large losses incurred unfavorably contributed to the increase in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 1.1 points higher than the first half of 2024. We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million. Losses by size are discussed in further detail in results of operations by property casualty insurance segment.

FINANCIAL RESULTS

Consolidated results reflect the operating results of each of our five segments along with the parent company, Cincinnati Re, Cincinnati Global and other activities reported as "Other." The five segments are:

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

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COMMERCIAL LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Earned premiums	$	1,229		$	1,137		8	$	3,620		$	3,326		9
Fee revenues	2			1			100	4			3			33
Total revenues	1,231			1,138			8	3,624			3,329			9
Loss and loss expenses from:
Current accident year before catastrophe losses	728			691			5	2,171			2,037			7
Current accident year catastrophe losses	37			65			(43)	181			251			(28)
Prior accident years before catastrophe losses	(13)			(45)			71	(81)			(97)			16
Prior accident years catastrophe losses	(5)			(5)			0	(22)			(20)			(10)
Loss and loss expenses	747			706			6	2,249			2,171			4
Underwriting expenses	373			351			6	1,080			1,028			5
Underwriting profit	$	111		$	81		37	$	295		$	130		127

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year before catastrophe losses	59.2		%	60.7		%	(1.5)	60.0		%	61.3		%	(1.3)
Current accident year catastrophe losses	3.0			5.8			(2.8)	5.0			7.5			(2.5)
Prior accident years before catastrophe losses	(1.0)			(4.0)			3.0	(2.2)			(2.9)			0.7
Prior accident years catastrophe losses	(0.4)			(0.4)			0.0	(0.6)			(0.6)			0.0
Loss and loss expenses	60.8			62.1			(1.3)	62.2			65.3			(3.1)
Underwriting expenses	30.3			30.9			(0.6)	29.8			30.9			(1.1)
Combined ratio	91.1		%	93.0		%	(1.9)	92.0		%	96.2		%	(4.2)

Combined ratio	91.1		%	93.0		%	(1.9)	92.0		%	96.2		%	(4.2)
Contribution from catastrophe losses and prior years reserve development	1.6			1.4			0.2	2.2			4.0			(1.8)
Combined ratio before catastrophe losses and prior years reserve development	89.5		%	91.6		%	(2.1)	89.8		%	92.2		%	(2.4)

Overview

Performance highlights for the commercial lines segment include:

Premiums – Earned premiums and net written premiums for the commercial lines segment grew during the third quarter and first nine months of 2025, compared with the same periods a year ago, primarily due to agency renewal written premium growth that continued to include higher average pricing. The table below analyzes the primary components of premiums. We continue to use predictive analytics tools to improve pricing precision and segmentation while leveraging our local relationships with agents through the efforts of our teams that work closely with them. We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a policy-by-policy basis whether to write or renew a policy.

Agency renewal written premiums increased 6% for the third quarter and 7% for the first nine months of 2025, compared with the same periods of 2024, including price increases. During the third quarter of 2025, our overall standard commercial lines policies averaged estimated renewal price increases at percentages in the mid-single-digit range. We continue to segment commercial lines policies, emphasizing identification and retention of those we believe have relatively stronger pricing. Conversely, we have been seeking stricter renewal terms and conditions on policies we believe have relatively weaker pricing, thus retaining fewer of those policies. We measure average changes in commercial lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for the respective policies.

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Our average overall commercial lines renewal pricing change includes the impact of flat pricing for certain coverages within package policies written for a three-year term that were in force but did not expire during the period being measured. Therefore, our reported change in average commercial lines renewal pricing reflects a blend of three-year policies that did not expire and other policies that did expire during the measurement period. For commercial lines policies that did expire and were then renewed during the third quarter of 2025, we estimate that our average percentage price increases were in the mid-single-digit range for our commercial casualty, commercial property and commercial auto lines of business. The estimated average percentage price change for workers' compensation was a decrease in the mid-single-digit range.

Our commercial lines segment's increase in agency renewal written premiums for the first nine months of 2025 also included changes in the level of insured exposures. Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials to repair damaged commercial structures. We use building valuation software to automate much of that underwriting process and may also manually adjust premiums to reflect property costs.

Renewal premiums for certain policies, primarily our commercial casualty and workers' compensation lines of business, include the results of policy audits that adjust initial premium amounts based on differences between estimated and actual sales or payroll related to a specific policy. Audits completed during the first nine months of 2025 contributed $70 million to net written premiums, compared with $81 million for the same period of 2024.

New business written premiums for commercial lines decreased $2 million for the third quarter, but increased $26 million during the first nine months of 2025, compared with the same periods of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Trend analysis for year-over-year comparisons of individual quarters is more difficult to assess for commercial lines new business written premiums, due to inherent variability. That variability is often driven by larger policies with annual premiums greater than $100,000.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our commercial lines insurance segment, a decrease in ceded premiums increased net written premiums by approximately $5 million and $11 million for the third quarter and first nine months of 2025, compared with the same periods of 2024.

Commercial Lines Insurance Premiums


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Agency renewal written premiums	$	1,043	$	987	6	$	3,311	$	3,086	7
Agency new business written premiums	185		187		(1)	588		562		5
Other written premiums	(30)		(36)		17	(86)		(101)		15
Net written premiums	1,198		1,138		5	3,813		3,547		7
Unearned premium change	31		(1)		nm	(193)		(221)		13
Earned premiums	$	1,229	$	1,137	8	$	3,620	$	3,326	9

Combined ratio – The third-quarter 2025 commercial lines combined ratio improved by 1.9 percentage points, compared with the third quarter of 2024, including a decrease of 2.8 points in losses from catastrophes. The third-quarter combined ratio decreased by 1.5 points from current accident year loss and loss expenses before catastrophe losses, including a decrease of 0.9 points for the IBNR portion and a decrease of 0.6 points for the case incurred portion. For the first nine months of 2025, the combined ratio improved by 4.2 percentage points, compared with the same period a year ago, including a decrease of 2.5 points in losses from catastrophes. The nine-month 2025 combined ratio also included a decrease of 1.3 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 1.5 points for the IBNR portion and a decrease of 2.8 points for the case incurred portion. Underwriting results also included favorable reserve development on prior accident years, as discussed below. The current accident year ratios were measured as of September 30 of the respective years and included a ratio for large losses of $2 million or more per claim, discussed below, for the first nine months of 2025 that matched the same period of 2024.

When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends for inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company. Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged business properties or autos that we insure, in addition to

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higher losses for liability coverages for some of our lines of business. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 2.6 and 4.4 percentage points of the combined ratio for the third quarter and first nine months of 2025, compared with 5.4 and 6.9 percentage points for the same periods a year ago. Through 2024, the 10-year annual average for that catastrophe measure for the commercial lines segment was 6.0 percentage points, and the five-year annual average was 6.6 percentage points.

The net effect of reserve development on prior accident years during the third quarter and first nine months of 2025 was favorable for commercial lines overall by $18 million and $103 million, compared with $50 million and $117 million for the same periods in 2024. For the first nine months of 2025, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development, while our commercial casualty and commercial auto lines of business included net unfavorable development. The net favorable reserve development recognized during the first nine months of 2025 for our commercial lines insurance segment was mainly for accident years 2024 and 2023 and was primarily due to lower-than-anticipated loss emergence on known claims. Our commercial casualty line of business included $21 million of unfavorable reserve development on prior accident years for the first nine months of 2025 while commercial auto included $35 million. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The commercial lines underwriting expense ratio decreased for the third quarter and first nine months of 2025, compared with the same periods a year ago. The decreases were primarily due to premium growth outpacing growth in various expenses. The ratio for both periods also included ongoing expense management efforts.

Commercial Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Current accident year losses greater than $5 million	$	48		$	11		336	$	60		$	42		43
Current accident year losses $2 million - $5 million	12			36			(67)	49			58			(16)
Large loss prior accident year reserve development	47			20			135	105			54			94
Total large losses incurred	107			67			60	214			154			39
Losses incurred but not reported	67			117			(43)	336			365			(8)
Other losses excluding catastrophe losses	405			337			20	1,106			1,089			2
Catastrophe losses	29			58			(50)	152			223			(32)
Total losses incurred	$	608		$	579		5	$	1,808		$	1,831		(1)

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year losses greater than $5 million	3.9		%	1.0		%	2.9	1.7		%	1.3		%	0.4
Current accident year losses $2 million - $5 million	1.0			3.2			(2.2)	1.3			1.7			(0.4)
Large loss prior accident year reserve development	3.8			1.7			2.1	2.9			1.6			1.3
Total large loss ratio	8.7			5.9			2.8	5.9			4.6			1.3
Losses incurred but not reported	5.4			10.3			(4.9)	9.3			11.0			(1.7)
Other losses excluding catastrophe losses	33.0			29.7			3.3	30.5			32.8			(2.3)
Catastrophe losses	2.4			5.1			(2.7)	4.2			6.7			(2.5)
Total loss ratio	49.5		%	51.0		%	(1.5)	49.9		%	55.1		%	(5.2)

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We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The third-quarter 2025 commercial lines total large losses incurred of $107 million, net of reinsurance, was higher than the quarterly average of $49 million during full-year 2024 and the $67 million of total large losses incurred for the third quarter of 2024. The increase in commercial lines large losses for the first nine months of 2025 was primarily due to our commercial property line of business. The third-quarter 2025 ratio for commercial lines total large losses was 2.8 percentage points higher than last year's third-quarter ratio. The third-quarter 2025 amount of total large losses incurred unfavorably contributed to the increase in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 0.5 points higher than the first half of 2024. We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

PERSONAL LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Earned premiums	$	838		$	678		24	$	2,340		$	1,897		23
Fee revenues	1			2			(50)	4			4			0
Total revenues	839			680			23	2,344			1,901			23
Loss and loss expenses from:
Current accident year before catastrophe losses	425			367			16	1,280			1,052			22
Current accident year catastrophe losses	68			186			(63)	695			396			76
Prior accident years before catastrophe losses	22			5			340	10			5			100
Prior accident years catastrophe losses	(8)			(5)			(60)	(34)			(32)			(6)
Loss and loss expenses	507			553			(8)	1,951			1,421			37
Underwriting expenses	233			196			19	665			554			20
Underwriting profit (loss)	$	99		$	(69)		nm	$	(272)		$	(74)		(268)

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year before catastrophe losses	50.7		%	54.0		%	(3.3)	54.7		%	55.4		%	(0.7)
Current accident year catastrophe losses	8.0			27.4			(19.4)	29.7			20.9			8.8
Prior accident years before catastrophe losses	2.6			0.9			1.7	0.4			0.3			0.1
Prior accident years catastrophe losses	(0.9)			(0.8)			(0.1)	(1.4)			(1.7)			0.3
Loss and loss expenses	60.4			81.5			(21.1)	83.4			74.9			8.5
Underwriting expenses	27.8			28.8			(1.0)	28.4			29.2			(0.8)
Combined ratio	88.2		%	110.3		%	(22.1)	111.8		%	104.1		%	7.7

Combined ratio	88.2		%	110.3		%	(22.1)	111.8		%	104.1		%	7.7
Contribution from catastrophe losses and prior years reserve development	9.7			27.5			(17.8)	28.7			19.5			9.2
Combined ratio before catastrophe losses and prior years reserve development	78.5		%	82.8		%	(4.3)	83.1		%	84.6		%	(1.5)

Overview

Performance highlights for the personal lines segment include:

Premiums – Personal lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2025, primarily due to agency renewal written premium growth that included higher average pricing. Cincinnati Private ClientSM net written premiums included in the personal lines insurance segment results totaled approximately $572 million and $1.526 billion for the third quarter and first nine months of 2025, compared with $479 million and $1.281 billion for the same periods of 2024. Direct written premiums for Cincinnati Private Client policies grew 23% for the first nine months of 2025 compared with the same period

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of 2024. Cincinnati Private Client net written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $47 million in the third quarter and $94 million in the first nine months of 2025, compared with $46 million in the third quarter and $131 million in the first nine months of 2024. The table below analyzes the primary components of premiums.

Agency renewal written premiums increased 24% and 26% for the third quarter and first nine months of 2025, reflecting rate increases in selected states, a higher level of insured exposures and other factors such as changes in policy deductibles or mix of business. Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials used to repair damaged homes.

We estimate that premium rates for our personal auto line of business increased at average percentages in the high-single-digit range during the first nine months of 2025. For our homeowner line of business, we estimate that premium rates for the first nine months of 2025 increased at average percentages in the low-double-digit range. For both our personal auto and homeowner lines of business, some individual policies experienced lower or higher rate changes based on each risk's specific characteristics and enhanced pricing precision enabled by predictive models.

Personal lines new business written premiums decreased $49 million or 30% for the third quarter of 2025, compared with the same period of 2024, including approximately $28 million from Cincinnati Private Client policies and $21 million from middle-market policies. Cincinnati Private Client new business premiums from California decreased approximately $9 million for the third quarter of 2025 compared with the prior year. For the first nine months of 2025, compared with the same period of 2024, personal lines new business written premiums decreased $66 million, or 15%, including approximately $31 million from Cincinnati Private Client policies and $35 million from middle-market policies. We believe we maintained underwriting and pricing discipline across all personal lines markets as we expanded use of enhanced pricing precision tools.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our personal lines insurance segment, an increase in 2025 ceded premiums reduced net written premiums by approximately $1 million and $71 million for the third quarter and first nine months of 2025, compared with the same periods of 2024. Ceded premiums for the first nine months of 2025 included a net amount of $63 million for reinsurance reinstatement premiums related to the January 2025 wildfires in southern California. The $63 million of reinstatement premiums included $61 million for our homeowner line of business.

Personal Lines Insurance Premiums


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Agency renewal written premiums	$	864	$	695	24	$	2,364	$	1,870	26
Agency new business written premiums	116		165		(30)	384		450		(15)
Other written premiums	(29)		(28)		(4)	(145)		(74)		(96)
Net written premiums	951		832		14	2,603		2,246		16
Unearned premium change	(113)		(154)		27	(263)		(349)		25
Earned premiums	$	838	$	678	24	$	2,340	$	1,897	23

Combined ratio – Our personal lines combined ratio for the third quarter of 2025 improved by 22.1 percentage points, compared with third-quarter 2024, including a decrease of 19.5 points in losses from catastrophes. The third-quarter 2025 combined ratio improvement also included a decrease of 3.3 percentage points from current accident year loss and loss expenses before catastrophe losses, including a decrease of 1.0 points for the IBNR portion and a decrease of 2.3 points for the case incurred portion. For the first nine months of 2025, the combined ratio increased by 7.7 percentage points, compared with the same period a year ago, including an increase of 9.1 points in losses from catastrophes. The nine-month 2025 combined ratio also included a decrease of 0.7 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.3 points for the IBNR portion and a decrease of 3.0 points for the case incurred portion. The nine-month 2025 current accident year ratio before catastrophe losses included an unfavorable 1.4 points for the effect of reinstatement premiums. The total current accident year ratios before catastrophe losses were measured as of September 30 of the respective years and included an increase of 0.8 percentage points for the first nine months of 2025 in the ratio for large losses of $2 million or more per claim, discussed below.

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or our company. Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged autos or homes that we insure. Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 7.1 and 28.3 percentage points of the combined ratio for the third quarter and first nine months of 2025, compared with 26.6 and 19.2 points for the same periods a year ago. The 10-year annual average catastrophe loss ratio for the personal lines segment through 2024 was 12.1 percentage points, and the five-year annual average was 13.9 percentage points.

In addition to the average rate increases discussed above, we continue to refine our pricing to better match premiums to the risk of loss on individual policies. Improved pricing precision and broad-based rate increases are expected to help position the combined ratio at a profitable level over the long term. In addition, greater geographic diversification is expected to reduce the volatility of homeowner loss ratios attributable to weather-related catastrophe losses over time.

The net effect of reserve development on prior accident years during the third quarter of 2025 was unfavorable by $14 million and favorable by $24 million for the first nine months of 2025 for personal lines overall, compared with less than $1 million unfavorable and $27 million favorable for the same periods of 2024. Our homeowner line of business was the main contributor to the personal lines net favorable reserve development for the first nine months of 2025. The net favorable reserve development was primarily due to lower-than-anticipated loss emergence on known claims. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The personal lines underwriting expense ratio decreased for the third quarter and first nine months of 2025, compared with the same periods a year ago. The third-quarter and nine-month decreases were primarily due to growth in premiums outpacing growth in various expenses. The nine-month 2025 ratio also included an unfavorable 0.7 points for the effect of reinstatement premiums. The ratios for both periods also included ongoing expense management efforts.

Personal Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Current accident year losses greater than $5 million	$	—		$	7		(100)	$	29		$	7		314
Current accident year losses $2 million - $5 million	23			13			77	46			39			18
Large loss prior accident year reserve development	2			(1)			nm	27			2			nm
Total large losses incurred	25			19			32	102			48			113
Losses incurred but not reported	32			33			(3)	143			86			66
Other losses excluding catastrophe losses	316			256			23	827			743			11
Catastrophe losses	54			178			(70)	645			357			81
Total losses incurred	$	427		$	486		(12)	$	1,717		$	1,234		39

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year losses greater than $5 million	0.0		%	1.1		%	(1.1)	1.3		%	0.4		%	0.9
Current accident year losses $2 million - $5 million	2.9			2.0			0.9	2.0			2.1			(0.1)
Large loss prior accident year reserve development	0.2			(0.2)			0.4	1.1			0.1			1.0
Total large loss ratio	3.1			2.9			0.2	4.4			2.6			1.8
Losses incurred but not reported	3.8			5.0			(1.2)	6.1			4.6			1.5
Other losses excluding catastrophe losses	37.5			37.6			(0.1)	35.4			39.0			(3.6)
Catastrophe losses	6.5			26.2			(19.7)	27.5			18.8			8.7
Total loss ratio	50.9		%	71.7		%	(20.8)	73.4		%	65.0		%	8.4

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region, policy inception, agency or field marketing territory. In the third quarter of 2025, the personal lines total large loss ratio, net of reinsurance, was 0.2 percentage points higher than last year's third quarter. The increase in personal lines total large losses incurred for the first nine months of 2025 occurred primarily for our homeowner line of business and inland marine coverages in our other personal line of business. The third-quarter 2025 amount of total large losses incurred unfavorably contributed to the increase in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 2.7 points higher than the first half of 2024. We believe results for the three- and nine-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

EXCESS AND SURPLUS LINES INSURANCE RESULTS


(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Earned premiums	$	174		$	157		11	$	510		$	447		14
Fee revenues	1			—			nm	3			2			50
Total revenues	175			157			11	513			449			14

Loss and loss expenses from:
Current accident year before catastrophe losses	112			100			12	331			288			15
Current accident year catastrophe losses	—			2			(100)	4			6			(33)
Prior accident years before catastrophe losses	(4)			5			nm	(17)			5			nm
Prior accident years catastrophe losses	—			—			0	(1)			—			nm
Loss and loss expenses	108			107			1	317			299			6
Underwriting expenses	48			42			14	141			122			16
Underwriting profit	$	19		$	8		138	$	55		$	28		96

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year before catastrophe losses	64.1		%	64.2		%	(0.1)	64.8		%	64.6		%	0.2
Current accident year catastrophe losses	0.2			1.7			(1.5)	0.9			1.4			(0.5)
Prior accident years before catastrophe losses	(2.1)			2.9			(5.0)	(3.2)			1.0			(4.2)
Prior accident years catastrophe losses	(0.1)			(0.2)			0.1	(0.3)			0.0			(0.3)
Loss and loss expenses	62.1			68.6			(6.5)	62.2			67.0			(4.8)
Underwriting expenses	27.7			26.7			1.0	27.6			27.3			0.3
Combined ratio	89.8		%	95.3		%	(5.5)	89.8		%	94.3		%	(4.5)

Combined ratio	89.8		%	95.3		%	(5.5)	89.8		%	94.3		%	(4.5)
Contribution from catastrophe losses and prior years reserve development	(2.0)			4.4			(6.4)	(2.6)			2.4			(5.0)
Combined ratio before catastrophe losses and prior years reserve development	91.8		%	90.9		%	0.9	92.4		%	91.9		%	0.5

Overview

Performance highlights for the excess and surplus lines segment include:

Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the third quarter and first nine months of 2025, compared with the same period a year ago, including increases in both agency renewal and new business written premiums. Renewal written premiums rose 15% for the third quarter and 12% for the nine months ended September 30, 2025, compared with the same periods of 2024, largely due to higher renewal pricing. For both 2025 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range. We measure average changes in excess and surplus lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for respective policies.

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New business written premiums produced by agencies increased by 2% for the third quarter and 16% for the first nine months of 2025 compared with the same periods of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Some of what we report as new business came from accounts that were not new to our agents. We believe our agents' seasoned accounts tend to be priced more accurately than business that may be less familiar to them.

Excess and Surplus Lines Insurance Premiums


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Agency renewal written premiums	$	130	$	113	15	$	409	$	365	12
Agency new business written premiums	55		54		2	171		147		16
Other written premiums	(10)		(10)		0	(35)		(29)		(21)
Net written premiums	175		157		11	545		483		13
Unearned premium change	(1)		—		nm	(35)		(36)		3
Earned premiums	$	174	$	157	11	$	510	$	447	14

Combined ratio – The excess and surplus lines combined ratio improved by 5.5 percentage points for the third quarter and 4.5 points for the first nine months of 2025, compared with the same periods of 2024. The improvements were primarily due to favorable reserve development on prior accident year loss and loss expenses for the three and nine months ended September 30, 2025, compared with unfavorable development for the same periods of 2024.

The 64.1% third-quarter 2025 ratio for current accident year loss and loss expenses before catastrophe losses was 0.1 percentage points lower, compared with the 64.2% accident year 2024 ratio measured as of September 30, 2024, including a decrease of 2.4 points for the IBNR portion and an increase of 2.3 points for the case incurred portion. The nine-month 2025 ratio for current accident year loss and loss expenses before catastrophe losses was 0.2 percentage points higher, compared with the 64.6% accident year 2024 ratio measured as of September 30, 2024, including an increase of 2.7 points for the IBNR portion and a decrease of 2.5 points for the case incurred portion.

Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was favorable by 2.2% for the third quarter and 3.5% for the first nine months of 2025, compared with unfavorable 2.7% and 1.0% for the same periods of 2024. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

The excess and surplus lines underwriting expense ratio increased for the third quarter and first nine months of 2025 compared with the same periods a year ago, largely due to an increase in commission expenses. The ratios also included ongoing expense management efforts and premium growth.

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Excess and Surplus Lines Insurance Losses Incurred by Size


(Dollars in millions, net of reinsurance)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Current accident year losses greater than $5 million	$	—		$	—		nm	$	—		$	—		nm
Current accident year losses $2 million - $5 million	—			2			(100)	—			4			(100)
Large loss prior accident year reserve development	—			—			nm	—			—			nm
Total large losses incurred	—			2			(100)	—			4			(100)
Losses incurred but not reported	16			12			33	93			59			58
Other losses excluding catastrophe losses	59			55			7	125			143			(13)
Catastrophe losses	—			2			(100)	3			6			(50)
Total losses incurred	$	75		$	71		6	$	221		$	212		4

Ratios as a percent of earned premiums:							Pt. Change							Pt. Change
Current accident year losses greater than $5 million	0.0		%	0.0		%	0.0	0.0		%	0.0		%	0.0
Current accident year losses $2 million - $5 million	0.0			1.3			(1.3)	0.0			0.9			(0.9)
Large loss prior accident year reserve development	0.0			0.0			0.0	0.0			0.0			0.0
Total large loss ratio	0.0			1.3			(1.3)	0.0			0.9			(0.9)
Losses incurred but not reported	9.2			7.1			2.1	18.3			13.2			5.1
Other losses excluding catastrophe losses	33.6			35.4			(1.8)	24.4			32.1			(7.7)
Catastrophe losses	0.0			1.5			(1.5)	0.5			1.3			(0.8)
Total loss ratio	42.8		%	45.3		%	(2.5)	43.2		%	47.5		%	(4.3)

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. In the third quarter of 2025, the excess and surplus lines total ratio for large losses, net of reinsurance, was 1.3 percentage points lower than last year's third quarter. The third-quarter 2025 amount of total large losses incurred contributed favorably to the decrease in the nine-month 2025 total large loss ratio, compared with 2024, in addition to a first-half 2025 ratio that was 0.7 points lower than the first half of 2024. We believe results for the three- and nine month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

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LIFE INSURANCE RESULTS


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Earned premiums	$	83	$	80	4	$	246	$	240	3
Fee revenues	1		1		0	4		4		0
Total revenues	84		81		4	250		244		2
Contract holders' benefits incurred	76		79		(4)	230		226		2
Investment interest credited to contract holders	(32)		(32)		0	(95)		(94)		(1)
Underwriting expenses incurred	23		24		(4)	70		70		0
Total benefits and expenses	67		71		(6)	205		202		1
Life insurance segment profit	$	17	$	10	70	$	45	$	42	7

Overview

Performance highlights for the life insurance segment include:

Revenues – Revenues increased for the nine months ended September 30, 2025, compared with the same period a year ago, driven by higher earned premiums from term life insurance, our largest life insurance product line.

Net in-force life insurance policy face amounts increased 3% to $86.438 billion at September 30, 2025, from $84.245 billion at year-end 2024.

Fixed annuity deposits received for the three and nine months ended September 30, 2025, were $8 million and $20 million, compared with $10 million and $29 million for the same periods of 2024. Fixed annuity deposits have a minimal impact on earned premiums because deposits received are initially recorded as liabilities. Profit is earned over time by way of interest rate spreads. We do not write variable or equity-indexed annuities.

Life Insurance Premiums


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Term life insurance	$	61	$	58	5	$	179	$	174	3
Whole life insurance	14		13		8	40		39		3
Universal life and other	8		9		(11)	27		27		0
Net earned premiums	$	83	$	80	4	$	246	$	240	3

Profitability – Our life insurance segment typically reports a smaller profit compared with the life insurance subsidiary because profits from investment income spreads are included in our investments segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A profit of $45 million for our life insurance segment in the first nine months of 2025, compared with a profit of $42 million for the same period of 2024, was primarily due to increased earned premiums.

Life insurance segment benefits and expenses consist principally of contract holders' (policyholders') benefits incurred related to traditional life and interest-sensitive products and operating expenses incurred, net of deferred acquisition costs. Total benefits increased in the first nine months of 2025 primarily due to less favorable impacts from the unlocking of interest rate and other actuarial assumptions.

Underwriting expenses for the first nine months of 2025 matched the same period a year ago.

We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products. On a basis that includes investment income and investment gains or losses from life-insurance-related

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invested assets, the life insurance subsidiary reported net income of $28 million and $75 million for the three and nine months ended September 30, 2025, compared with $20 million and $63 million for the three and nine months ended September 30, 2024. The life insurance subsidiary portfolio had net after-tax investment losses of $1 million and $5 million for the three and nine months ended September 30, 2025, compared with less than $1 million and $7 million for the three and nine months ended September 30, 2024.

INVESTMENTS RESULTS

Overview

The investments segment contributes investment income and investment gains and losses to results of operations. Investments traditionally are our primary source of pretax and after-tax profits.

Investment Income

Pretax investment income grew 14% for the third quarter and 15% for the first nine months of 2025, compared with the same periods of 2024. Interest income increased by $40 million and $122 million for the three and nine months ended September 30, 2025, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rate environment for several years prior to 2022. Dividend income increased by $1 million for the third quarter and decreased by $3 million for the first nine months of 2025. The decrease for the first nine months of 2025 was primarily due to the unfavorable effect on dividend income from net sales of equity securities during the second half of 2024. That effect was partially offset by net purchases of equity securities during the first nine months of 2025 and dividend rates that have generally been increasing, although more slowly in recent quarters.

Investments Results


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Total investment income, net of expenses	$	295	$	258	14	$	860	$	745	15
Investment interest credited to contract holders	(32)		(32)		0	(95)		(94)		(1)
Investment gains and losses, net	853		758		13	1,259		1,507		(16)
Investments profit, pretax	$	1,116	$	984	13	$	2,024	$	2,158	(6)

We continue to consider the low interest rate environment that prevailed for several years prior to 2022 as well as the potential for a continuation of both elevated inflation and higher bond yields as we position our portfolio. As bonds in our generally laddered portfolio mature or are called over the near term, we will reinvest with a balanced approach, keeping in mind our long-term strategy and pursuing attractive risk-adjusted after-tax yields. The table below shows the average pretax yield-to-amortized cost associated with expected principal redemptions for our fixed-maturity portfolio. The expected principal redemptions are based on par amounts and include dated maturities, calls and prefunded municipal bonds that we expect will be called during each respective time period.


(Dollars in millions)	% Yield		Principal redemptions
At September 30, 2025
Fixed-maturity pretax yield profile:
Expected to mature during the remainder of 2025	4.85	%	$	269
Expected to mature during 2026	4.82		997
Expected to mature during 2027	5.20		1,027
Average yield and total expected maturities from the remainder of 2025 through 2027	5.00		$	2,293

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The table below shows the average pretax yield-to-amortized cost for fixed-maturity securities acquired during the periods indicated. The average yield for total fixed-maturity securities acquired during the first nine months of 2025 was higher than the 5.06% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2024. Our fixed-maturity portfolio's average yield of 4.96% for the first nine months of 2025, from the investment income table below, was lower than the 5.06% yield for the year-end 2024 fixed-maturities portfolio.


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Average pretax yield-to-amortized cost on new fixed-maturities:
Acquired taxable fixed-maturities	5.63	%	5.63	%	5.81	%	5.81	%
Acquired tax-exempt fixed-maturities	4.83		4.09		4.75		4.12
Average total fixed-maturities acquired	5.52		5.53		5.69		5.68

While our bond portfolio more than covers our insurance reserve liabilities, we believe our diversified common stock portfolio of mainly blue chip, dividend-paying companies represents one of our best investment opportunities for the long term. We discussed our portfolio strategies in our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21, and Item 7, Investments Outlook, Page 89. We discuss risks related to our investment income and our fixed-maturity and equity investment portfolios in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.

The table below provides details about investment income. Average yields in this table are based on the average invested asset and cash amounts indicated in the table, using fixed-maturity securities valued at amortized cost and all other securities at fair value.


(Dollars in millions)	Three months ended September 30,							Nine months ended September 30,
	2025			2024			% Change	2025			2024			% Change
Investment income:
Interest	$	227		$	187		21	$	651		$	529		23
Dividends	69			68			1	206			209			(1)
Other	4			7			(43)	16			18			(11)
Less investment expenses	5			4			25	13			11			18
Investment income, pretax	295			258			14	860			745			15
Less income taxes	51			44			16	148			125			18
Total investment income, after-tax	$	244		$	214		14	$	712		$	620		15

Investment returns:
Average invested assets plus cash and cash equivalents	$	31,899		$	29,107			$	31,345		$	28,447
Average yield pretax	3.70		%	3.55		%		3.66		%	3.49		%
Average yield after-tax	3.06			2.94				3.03			2.91
Effective tax rate	17.3			16.9				17.2			16.8

Fixed-maturity returns:
Average amortized cost	$	17,816		$	15,592			$	17,515		$	15,218
Average yield pretax	5.10		%	4.80		%		4.96		%	4.63		%
Average yield after-tax	4.16			3.93				4.04			3.80
Effective tax rate	18.4			18.1				18.4			18.0

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Total Investment Gains and Losses

Investment gains and losses are recognized on the sale of investments, for certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP. The change in fair value for equity securities still held is included in investment gains and losses and also in net income. The change in unrealized gains or losses for fixed-maturity securities is included as a component of other comprehensive income (OCI). Accounting requirements for the allowance for credit losses for the fixed-maturity portfolio are disclosed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128.

The table below summarizes total investment gains and losses, before taxes.


(Dollars in millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Investment gains and losses:
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 maturities:
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 investment gains and losses reported in net income	853		758		1,259		1,507

Change in unrealized investment gains and losses:

Fixed maturities	241		497		336		367

Total	$	1,094	$	1,255	$	1,595	$	1,874

Of the 5,331 fixed-maturity and short-term securities in the portfolio, 17 securities were trading below 70% of amortized cost at September 30, 2025. Our asset impairment committee regularly monitors the portfolio, including a quarterly review of the entire portfolio for potential credit losses. We believe that if liquidity in the markets were to significantly deteriorate or economic conditions were to significantly weaken, we could experience declines in portfolio values and possibly increases in the allowance for credit losses or write-downs to fair value.

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OTHER

We report as Other the noninvestment operations of the parent company and a noninsurance subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global, including earned premiums, loss and loss expenses and underwriting expenses in the table below.

Total revenues for the first nine months of 2025 for our Other operations increased, compared with the same period of 2024, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $33 million and $28 million, respectively. Cincinnati Re had $444 million of earned premiums for the first nine months of 2025 and generated an underwriting loss of $10 million, including an unfavorable impact of $103 million of net catastrophe losses from the January 2025 wildfires in southern California. Cincinnati Global had $231 million of earned premiums for the first nine months of 2025 and generated an underwriting profit of $55 million. Total expenses for Other increased for the first nine months of 2025, primarily due to higher loss and loss expenses from Cincinnati Re and Cincinnati Global.

Other income (loss) in the table below represents profit before income taxes. For the first nine months of 2025, total other loss resulted from an underwriting loss from Cincinnati Re and interest expense from debt of the parent company. For the first nine months of 2024, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Interest and fees on loans and leases	$	3	$	3	0	$	8	$	7	14
Earned premiums	243		245		(1)	675		614		10
Other revenues	3		—		nm	7		3		133
Total revenues	249		248		0	690		624		11
Interest expense	13		13		0	40		40		0
Loss and loss expenses	102		133		(23)	421		290		45
Underwriting expenses	77		70		10	209		180		16
Operating expenses	6		6		0	27		19		42
Total expenses	198		222		(11)	697		529		32
Total other income (loss)	$	51	$	26	96	$	(7)	$	95	nm

TAXES

We had $291 million and $423 million of income tax expense for the three and nine months ended September 30, 2025, compared with $220 million and $492 million of income tax expense for the same periods of 2024. The effective tax rate for the three and nine months ended September 30, 2025, was 20.6% and 19.8% compared with 21.2% and 20.7% for the same periods last year. The change in our effective tax rate between periods was primarily due to large changes in our net investment gains and losses included in income for the periods and changes in underwriting income and investment income.

Historically, we have pursued a strategy of investing some portion of cash flow in tax-advantaged, fixed-maturity and equity securities to minimize our overall tax liability and maximize after-tax earnings. See Tax-Exempt Fixed Maturities in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk for further discussion on municipal bond purchases in our fixed-maturity investment portfolio. For tax years after 2017, for our property casualty insurance subsidiaries, approximately 75% of interest from tax-advantaged, fixed-maturity investments and approximately 40% of dividends from qualified equities are exempt from federal tax after applying proration. For our noninsurance companies, the dividend received deduction exempts 50% of dividends from qualified equities. Our life insurance company does not own tax-advantaged, fixed-maturity investments or equities subject to the dividend received deduction. Details about our effective tax rate are in this quarterly report Item 1, Note 9, Income Taxes.

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LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2025, shareholders' equity was $15.406 billion, compared with $13.935 billion at December 31, 2024. Total debt was $815 million at September 30, 2025, unchanged from December 31, 2024. At September 30, 2025, cash and cash equivalents totaled $1.460 billion, compared with $983 million at December 31, 2024.

In addition to our historically positive operating cash flow to meet the needs of operations, we have the ability to slow investing activities or sell a portion of our high-quality, liquid investment portfolio if such need arises. We also have additional capacity to borrow on our revolving short-term line of credit, as described further below.

SOURCES OF LIQUIDITY

Subsidiary Dividends

Our lead insurance subsidiary declared dividends of $350 million to the parent company in the first nine months of 2025, compared with $290 million for the same period of 2024. For full-year 2024, our lead insurance subsidiary paid dividends totaling $290 million to the parent company. State of Ohio regulatory requirements restrict the dividends our insurance subsidiary can pay. For full-year 2025, total dividends that our insurance subsidiary can pay to our parent company without regulatory approval are approximately $1.245 billion.

Investing Activities

Investment income is a source of liquidity for both the parent company and its insurance subsidiaries. We continue to focus on portfolio strategies to balance near-term income generation and long-term book value growth.

Parent company obligations can be funded with income on investments held at the parent-company level or through sales of securities in that portfolio, although our investment philosophy seeks to compound cash flows over the long term. These sources of capital can help minimize subsidiary dividends to the parent company, protecting insurance subsidiary capital.

For a discussion of our historic investment strategy, portfolio allocation and quality, see our 2024 Annual Report on Form 10-K, Item 1, Investments Segment, Page 21.

Insurance Underwriting

Our property casualty and life insurance underwriting operations provide liquidity because we generally receive premiums before paying losses under the policies purchased with those premiums. After satisfying our cash requirements, we invest excess cash flows, increasing future investment income.

Historically, cash receipts from property casualty and life insurance premiums, along with investment income, have been more than sufficient to pay claims, operating expenses and dividends to the parent company.

The table below shows a summary of the operating cash flow for property casualty insurance (direct method):


(Dollars in millions)	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Premiums collected	$	2,626	$	2,343	12	$	7,369	$	6,593	12
Loss and loss expenses paid	(1,217)		(1,114)		(9)	(3,862)		(3,218)		(20)
Commissions and other underwriting expenses paid	(634)		(585)		(8)	(2,226)		(2,008)		(11)
Cash flow from underwriting	775		644		20	1,281		1,367		(6)
Investment income received	217		192		13	630		533		18
Cash flow from operations	$	992	$	836	19	$	1,911	$	1,900	1

Collected premiums for property casualty insurance rose $776 million during the first nine months of 2025, compared with the same period in 2024. Loss and loss expenses paid for the 2025 period increased $644 million. Commissions and other underwriting expenses paid increased $218 million.

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We discuss our future obligations for claims payments and for underwriting expenses in our 2024 Annual Report on Form 10-K, Item 7, Obligations, Page 95.

Capital Resources

At September 30, 2025, our debt-to-total-capital ratio was 5.0%, considerably below our 35% covenant threshold, with $790 million in long-term debt and $25 million in borrowing on our revolving short-term line of credit. At September 30, 2025, $275 million was available for future cash management needs as part of the general provisions of the line of credit agreement, with another $300 million available as part of an accordion feature. Based on our capital requirements at September 30, 2025, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year. As a result, we expect changes in our debt-to-total-capital ratio to continue to be largely a function of the contribution of unrealized investment gains or losses to shareholders' equity. During 2024, we terminated our unsecured letter of credit agreement, which provided a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's. We replaced the letter of credit agreement with common equities, bringing total common equities held in Lloyd's trust accounts to $235 million.

On October 10, 2025, we terminated our $300 million credit agreement and simultaneously entered into a new $400 million unsecured revolving credit agreement expiring on October 10, 2030, with two optional one-year extensions. The credit facility is fully subscribed among four lenders and includes a $400 million accordion feature, a $400 million sublimit for letters of credit, and a $75 million sublimit for swing line loans. The debt-to-total-capital ratio covenant threshold remains at 35%. Current borrowings under the credit agreement were $25 million on October 10, 2025.

We provide details of our three long-term notes in this quarterly report Item 1, Note 3, Fair Value Measurements. None of the notes are encumbered by rating triggers.

Four independent ratings firms award insurer financial strength ratings to our property casualty insurance companies and three firms rate our life insurance company. On September 3, 2025, Fitch Ratings changed our parent company debt rating to A from A-. No additional changes to our parent company debt ratings occurred during the first nine months of 2025. Our debt ratings are discussed in our 2024 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, Long-Term Debt, Page 94.

Off-Balance Sheet Arrangements

We do not use any special-purpose financing vehicles or have any undisclosed off-balance sheet arrangements (as that term is defined in applicable SEC rules) that are reasonably likely to have a current or future material effect on the company's financial condition, results of operation, liquidity, capital expenditures or capital resources. Similarly, the company holds no fair-value contracts for which a lack of marketplace quotations would necessitate the use of fair-value techniques.

USES OF LIQUIDITY

Our parent company and insurance subsidiary have contractual obligations and other commitments. In addition, one of our primary uses of cash is to enhance shareholder return.

Contractual Obligations

We estimated our future contractual obligations as of December 31, 2024, in our 2024 Annual Report on Form 10-K, Item 7, Contractual Obligations, Page 95. There have been no material changes to our estimates of future contractual obligations since our 2024 Annual Report on Form 10-K.

Other Commitments

In addition to our contractual obligations, we have other property casualty operational commitments:

Commissions – Commissions paid were $1.469 billion in the first nine months of 2025. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year.
Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $757 million in the first nine months of 2025.

There were no contributions to our qualified pension plan during the first nine months of 2025.

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Investing Activities

After fulfilling operating requirements, we invest cash flows from underwriting, investment and other corporate activities in fixed-maturity and equity securities on an ongoing basis to help achieve our portfolio objectives. We discuss our investment strategy and certain portfolio attributes in this quarterly report Item 3, Quantitative and Qualitative Disclosures About Market Risk.

Uses of Capital

Uses of cash to enhance shareholder return include dividends to shareholders and shares acquired under our repurchase program. In January, May and August 2025, the board of directors declared regular quarterly cash dividends of 87 cents per share for an indicated annual rate of $3.48 per share. During the first nine months of 2025, we used $392 million to pay cash dividends to shareholders.

PROPERTY CASUALTY INSURANCE LOSS AND LOSS EXPENSE RESERVES

For the business lines in the commercial and personal lines insurance segments, and in total for the excess and surplus lines insurance segment and other property casualty insurance operations, the following table details gross reserves among case, IBNR (incurred but not reported) and loss expense reserves, net of salvage and subrogation reserves. Reserving practices are discussed in our 2024 Annual Report on Form 10-K, Item 7, Property Casualty Loss and Loss Expense Obligations and Reserves, Page 96.

Total gross reserves at September 30, 2025, increased $1.258 billion compared with December 31, 2024. Case loss reserves increased by $237 million, IBNR loss reserves increased by $801 million and loss expense reserves increased by $220 million. The total gross increase was primarily due to our commercial casualty and homeowner lines of business, excess and surplus lines insurance segment and Cincinnati Re.

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Property Casualty Gross Reserves


(Dollars in millions)	Loss reserves				Loss expense reserves		Total gross reserves
	Case reserves		IBNR reserves				Percent of total
At September 30, 2025
Commercial lines insurance:
Commercial casualty	$	1,206	$	1,682	$	869	$	3,757	33.6	%
Commercial property	224		235		104		563		5.0
Commercial auto	433		441		178		1,052		9.4
Workers' compensation	378		579		101		1,058		9.5
Other commercial	168		71		168		407		3.6
Subtotal	2,409		3,008		1,420		6,837		61.1
Personal lines insurance:
Personal auto	283		154		125		562		5.0
Homeowner	353		263		117		733		6.5
Other personal	107		236		10		353		3.2
Subtotal	743		653		252		1,648		14.7
Excess and surplus lines	401		520		332		1,253		11.2
Cincinnati Re	225		992		8		1,225		10.9
Cincinnati Global	113		115		4		232		2.1
Total	$	3,891	$	5,288	$	2,016	$	11,195	100.0	%
At December 31, 2024
Commercial lines insurance:
Commercial casualty	$	1,121	$	1,498	$	824	$	3,443	34.7	%
Commercial property	251		199		90		540		5.4
Commercial auto	423		355		159		937		9.4
Workers' compensation	389		564		89		1,042		10.5
Other commercial	159		45		137		341		3.4
Subtotal	2,343		2,661		1,299		6,303		63.4
Personal lines insurance:
Personal auto	260		106		100		466		4.7
Homeowner	244		134		88		466		4.7
Other personal	102		166		9		277		2.8
Subtotal	606		406		197		1,209		12.2
Excess and surplus lines	395		425		289		1,109		11.2
Cincinnati Re	191		880		8		1,079		10.8
Cincinnati Global	119		115		3		237		2.4
Total	$	3,654	$	4,487	$	1,796	$	9,937	100.0	%

LIFE POLICY AND INVESTMENT CONTRACT RESERVES

Gross life policy and investment contract reserves were $3.003 billion at September 30, 2025, compared with $2.960 billion at year-end 2024. Details about these reserves are in this quarterly report Item 1, Note 5, Life Policy and Investment Contract Reserves. We discussed our life insurance reserving practices in our 2024 Annual Report on Form 10-K, Item 7, Life Insurance Policyholder Obligations and Reserves, Page 102.

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OTHER MATTERS

SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are discussed in our 2024 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128, and updated in this quarterly report Item 1, Note 1, Accounting Policies.

In conjunction with those discussions, in the Management's Discussion and Analysis in the 2024 Annual Report on Form 10-K, management reviewed the estimates and assumptions used to develop reported amounts related to the most significant policies. Management discussed the development and selection of those accounting estimates with the audit committee of the board of directors.

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