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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Fairfield, Cincinnati Financial (CINF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 9.16%. The insurer is currently shelling out a dividend of $0.94 per share, with a dividend yield of 2.11%. This compares to the Insurance - Property and Casualty industry's yield of 0.88% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $3.76 is up 8% from last year. Over the last 5 years, Cincinnati Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cincinnati Financial's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for CINF for this fiscal year. The Zacks Consensus Estimate for 2026 is $8.44 per share, representing a year-over-year earnings growth rate of 6.16%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CINF presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

The market expects Cincinnati Financial (CINF - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 26. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis insurer is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of -29.5%.

Revenues are expected to be $3.03 billion, up 5.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cincinnati Financial?For Cincinnati Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +13.87%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Cincinnati Financial will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cincinnati Financial would post earnings of $1.82 per share when it actually produced earnings of $1.43, delivering a surprise of -21.43%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cincinnati Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Insurance - Property and Casualty industry, The Hartford Insurance Group (HIG - Free Report) , is soon expected to post earnings of $3.15 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -16.7%. This quarter's revenue is expected to be $5.28 billion, up 3.3% from the year-ago quarter.

The consensus EPS estimate for The Hartford Insurance Group has been revised 0.3% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.95%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that The Hartford Insurance Group will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Shares of Cincinnati Financial Corporation (NASDAQ:CINF – Get Free Report) have earned an average rating of “Moderate Buy” from the five research firms that are presently covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $195.40.

A number of analysts recently issued reports on the stock. Bank of America downgraded shares of Cincinnati Financial from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $197.00 to $193.00 in a report on Thursday, July 30th. Keefe, Bruyette & Woods lowered their target price on shares of Cincinnati Financial from $201.00 to $190.00 and set a “market perform” rating on the stock in a research note on Wednesday, August 5th. Weiss Ratings upgraded Cincinnati Financial from a “buy (a-)” rating to a “buy (a)” rating in a research report on Thursday, September 10th. Piper Sandler upped their price target on Cincinnati Financial from $175.00 to $197.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Finally, Roth Capital upped their target price on Cincinnati Financial from $190.00 to $200.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th.

Check Out Our Latest Stock Analysis on CINF

Insider Buying and Selling at Cincinnati Financial In other news, Director Dirk Debbink purchased 1,000 shares of Cincinnati Financial stock in a transaction dated Tuesday, August 25th. The shares were purchased at an average price of $171.64 per share, with a total value of $171,640.00. Following the transaction, the director owned 62,059 shares in the company, valued at $10,651,806.76. This represents a 1.64% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.94% of the company’s stock. Institutional Inflows and Outflows Several hedge funds and other institutional investors have recently modified their holdings of the company. Rosenberg Matthew Hamilton grew its stake in shares of Cincinnati Financial by 94.8% in the third quarter. Rosenberg Matthew Hamilton now owns 520 shares of the insurance provider’s stock worth $83,000 after acquiring an additional 253 shares in the last quarter. Park National Corp OH lifted its position in Cincinnati Financial by 693.3% in the third quarter. Park National Corp OH now owns 90,478 shares of the insurance provider’s stock valued at $14,419,000 after acquiring an additional 79,073 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its position in shares of Cincinnati Financial by 985.8% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 36,517 shares of the insurance provider’s stock worth $5,820,000 after acquiring an additional 33,154 shares during the last quarter. CX Institutional boosted its stake in shares of Cincinnati Financial by 10.7% during the 3rd quarter. CX Institutional now owns 37,415 shares of the insurance provider’s stock worth $5,963,000 after acquiring an additional 3,623 shares in the last quarter. Finally, Planning Strategies Inc. lifted its stake in Cincinnati Financial by 6,740.0% in the 3rd quarter. Planning Strategies Inc. now owns 342 shares of the insurance provider’s stock valued at $55,000 after buying an additional 337 shares in the last quarter. 65.24% of the stock is currently owned by hedge funds and other institutional investors.

Cincinnati Financial Price Performance NASDAQ:CINF opened at $162.14 on Tuesday. The firm’s fifty day moving average is $170.57 and its two-hundred day moving average is $169.19. The firm has a market cap of $24.89 billion, a price-to-earnings ratio of 7.65, a PEG ratio of 2.76 and a beta of 0.52. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.31 and a current ratio of 0.31. Cincinnati Financial has a one year low of $150.00 and a one year high of $194.81.

Cincinnati Financial (NASDAQ:CINF – Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The insurance provider reported $1.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.82 by ($0.39). Cincinnati Financial had a net margin of 23.84% and a return on equity of 9.63%. The company had revenue of $4.27 billion during the quarter, compared to analyst estimates of $2.71 billion. During the same period last year, the firm earned $1.97 EPS. Research analysts expect that Cincinnati Financial will post 8.35 EPS for the current year.

Cincinnati Financial Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 23rd will be given a $0.94 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $3.76 dividend on an annualized basis and a dividend yield of 2.3%. Cincinnati Financial’s dividend payout ratio is 17.74%.

(Get Free Report)

Cincinnati Financial Corporation is an insurance holding company headquartered in Fairfield, Ohio. Through its subsidiaries, the company markets property and casualty insurance products primarily through a network of independent insurance agents.

Its offerings include commercial and personal property and casualty coverage, such as businessowners’ policies, commercial auto, workers’ compensation, homeowners and automobile insurance. The company also provides life insurance and related financial products through Cincinnati Life Insurance Company.

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, /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that at today's regular meeting, the board of directors declared a 94 cents-per-share regular quarterly cash dividend. The dividend is payable October 15, 2026, to shareholders of record as of September 23, 2026.

Stephen M. Spray, president and chief executive officer, commented, "Our financial strength remains in excellent shape, giving us the confidence and ability to continue executing on our plans to achieve profitable growth in our insurance operations. Our strong operations, in turn, create the basis for rewarding shareholders now and into the future. This October dividend payment completes 66 consecutive years of increasing annual cash dividends – a record we believe is matched by only seven other publicly traded U.S. companies."

About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.

Mailing Address:

Street Address:

P.O. Box 145496

6200 South Gilmore Road

Cincinnati, Ohio 45250-5496

Fairfield, Ohio 45014-5141

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 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 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 2025 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

SOURCE Cincinnati Financial Corporation

Cincinnati Financial Corporation (CINF) Q2 2026 Earnings Call July 28, 2026 11:00 AM EDT

Company Participants

Dennis McDaniel - VP & Investor Relations Officer
Stephen Spray - President, CEO & Director
Michael J. Sewell - CFO, Principal Accounting Officer, Executive VP & Treasurer

Conference Call Participants

Michael Phillips - Oppenheimer & Co. Inc., Research Division
Charles Peters - Raymond James & Associates, Inc., Research Division
Joshua Shanker - BofA Securities, Research Division
Michael Zaremski - BMO Capital Markets Equity Research
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Matthew Palazola

Presentation

Operator

Good day, everyone, and thank you for joining the Cincinnati Financial Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's session is being recorded. It is my pleasure to turn the floor over for opening remarks and introductions to Mr. Dennis McDaniel, Investor Relations. Please go ahead, sir.

Dennis McDaniel
VP & Investor Relations Officer

Hello. This is Dennis McDaniel at Cincinnati Financial. Thank you for joining us for our second quarter 2026 earnings conference call. Late yesterday, we issued a news release on our results, along with our supplemental financial package, including our quarter end investment portfolio. To find copies of any of these documents, please visit our investor website, investors.cinfin.com. The shortest route to the information is the Quarterly Results section near the middle of the Investor Overview page.

On this call, you'll first hear from President and Chief Executive Officer, Steve Spray; and then from Executive Vice President and Chief Financial Officer, Mike Sewell. After their prepared remarks, investors participating on the call may ask questions. At that time, some responses may be made by others in the room with us, including Executive Chairman, Steve Johnston; Chief Investment Officer, Steve Soloria; and Cincinnati Insurance's Chief Claims Officer, Marc Schambow; and Senior Vice President of Corporate Finance, Andy Schnell.

, /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

Second-quarter 2026 net income of $1.255 billion, or $8.05 per share, compared with $685 million, or $4.34 per share, in the second quarter of 2025, after recognizing an $882 million second-quarter 2026 after-tax increase in the fair value of equity securities still held. Second-quarter 2026 non-GAAP operating income* of $224 million, or $1.43 per share, compared with $311 million, or $1.97 per share, in the second quarter of last year. The decrease of $87 million included an unfavorable effect of $61 million from an increase in after-tax catastrophe losses. $570 million increase in second-quarter 2026 net income, compared with second-quarter 2025, including the effects of after-tax net increases of $657 million from net investment gains and $28 million from investment income, partially offset by a decrease of $115 million from property casualty underwriting profit. $108.64 book value per share at June 30, 2026, up $6.29 since year-end. 8.0% value creation ratio for the first six months of 2026, compared with 4.6% for the same period of 2025.  Financial Highlights

(Dollars in millions, except per share data)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Revenue Data

   Earned premiums

$    2,635

$    2,480

6

$    5,239

$    4,824

9

   Investment income, net of expenses

319

285

12

637

565

13

   Total revenues

4,274

3,248

32

7,137

5,814

23

Income Statement Data

   Net income

$    1,255

$       685

83

$    1,529

$       595

157

   Investment gains and losses, after-tax

1,031

374

176

975

321

204

   Non-GAAP operating income*

$       224

$       311

(28)

$       554

$       274

102

Per Share Data (diluted)

   Net income

$      8.05

$      4.34

85

$      9.78

$      3.77

159

   Investment gains and losses, after-tax

6.62

2.37

179

6.24

2.03

207

   Non-GAAP operating income*

$      1.43

$      1.97

(27)

$      3.54

$      1.74

103

   Book value

$  108.64

$    91.46

19

   Cash dividend declared

$      0.94

$      0.87

8

$      1.88

$      1.74

8

   Diluted weighted average shares outstanding

155.7

157.8

(1)

156.3

157.8

(1)

*

The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures section defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.

Forward-looking statements and related assumptions are subject to the risks outlined in the company's safe harbor statement.

Insurance Operations Highlights

100.8% second-quarter 2026 property casualty combined ratio, increased from 94.9% for the second quarter of 2025. 3% growth in second-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures. $353 million second-quarter 2026 property casualty new business written premiums, down 13%. Agencies appointed since the beginning of 2025 contributed $31 million or 9% of total new business written premiums. $30 million second-quarter 2026 life insurance subsidiary net income, up $4 million compared with the second quarter of 2025, and 5% growth in second-quarter 2026 term life insurance earned premiums. Investment and Balance Sheet Highlights

12% or $34 million increase in second-quarter 2026 pretax investment income, including a 14% increase in bond interest income and a 3% increase in stock portfolio dividends. Three-month increase of 4% in fair value of total investments at June 30, 2026, including a 2% increase for the bond portfolio and a 5% increase for the stock portfolio. $5.689 billion parent company cash and marketable securities at June 30, 2026, up 2% from year-end 2025. Investment Income Leads Second-Quarter Profits
Stephen M. Spray, president and chief executive officer, commented: "Investment income increased nicely, producing our main source of profits in the second quarter and bringing our total non-GAAP operating income to $554 million for the first half of the year.

"Turning to our insurance business, elevated catastrophe losses played a large part in an uptick in our combined ratio, coming in just shy of breakeven at 100.8% for the quarter. While not the result of any single storm, our field and headquarters claims associates have been busy, bringing compassion and expertise to our agents and policyholders across the country and close to home. Ohio was particularly impacted by bad weather this Spring with catastrophe losses reaching nearly four times higher than our 5-year second-quarter average for the state.

"On a six-month basis, we recorded a profitable 98.2% combined ratio. We are optimistic that further maturing of our plans to increase both product and geographic diversification will continue to help mute the impacts of catastrophe losses in any one quarter."

Focused on Outstanding Service and Pricing Discipline
"Consolidated net written premiums for the quarter and the first half of the year increased 3% and 5%, respectively. When market competition increases, our hallmark of personal service combines with data-driven analytics to support the ability of our agents to successfully retain their best clients.

"The power of segmentation in this market isn't simply about knowing when to walk away from an account that is underpriced in our view. It's also important that we work with our agents to offer advanced renewal quotes on accounts we believe are adequately priced.

"To help keep our pipeline of opportunities full, we continue to appoint new agencies in geographies where we see the best prospects for profitable growth. So far this year, we've appointed more than 200 agencies. With total agency relationships still under 3,000, we have a lot of runway to fuel growth without dampening the exclusivity of a Cincinnati contract that our current agents enjoy."

Book Value Reaches New Record
"At June 30, our book value again reached a record high, increasing 6% since December 31, 2025, to $108.64. Consolidated cash and total investments also reached a new high, nearly eclipsing $35 billion.

"Our ample capital allows us to execute on our long-term strategies and, at the same time, pay dividends to shareholders. Our value creation ratio, which considers the dividends we pay as well as growth in book value, was 8.0% for the first half of 2026."

Insurance Operations Highlights

Consolidated Property Casualty Insurance Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Earned premiums

$  2,548

$  2,397

6

$  5,067

$  4,661

9

Fee revenues

3

3

0

7

7

0

   Total revenues

2,551

2,400

6

5,074

4,668

9

Loss and loss expenses

1,808

1,587

14

3,475

3,474

0

Underwriting expenses

761

685

11

1,502

1,364

10

   Underwriting profit (loss)

$      (18)

$     128

nm

$       97

$    (170)

nm

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Loss and loss expenses

71.0 %

66.3 %

4.7

68.6 %

74.5 %

(5.9)

     Underwriting expenses

29.8

28.6

1.2

29.6

29.3

0.3

           Combined ratio

100.8 %

94.9 %

5.9

98.2 %

103.8 %

(5.6)

% Change

% Change

Agency renewal written premiums

$  2,254

$  2,135

6

$  4,299

$  4,047

6

Agency new business written premiums

353

404

(13)

692

787

(12)

Other written premiums

218

194

12

502

394

27

   Net written premiums

$  2,825

$  2,733

3

$  5,493

$  5,228

5

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Current accident year before catastrophe losses

58.3 %

56.5 %

1.8

58.2 %

58.4 %

(0.2)

     Current accident year catastrophe losses

14.4

12.4

2.0

12.8

19.4

(6.6)

     Prior accident years before catastrophe losses

(1.8)

(2.4)

0.6

(2.2)

(2.3)

0.1

     Prior accident years catastrophe losses

0.1

(0.2)

0.3

(0.2)

(1.0)

0.8

           Loss and loss expense ratio

71.0 %

66.3 %

4.7

68.6 %

74.5 %

(5.9)

Current accident year combined ratio before

  catastrophe losses

88.1 %

85.1 %

3.0

87.8 %

87.7 %

0.1

$92 million or 3 percent growth of second-quarter 2026 property casualty net written premiums, reflecting premium growth initiatives, price increases and a higher level of insured exposures. The contribution to second-quarter growth from Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM in total was approximately 1 percentage point. $51 million decrease in second-quarter 2026 new business premiums written by agencies, due to our personal lines insurance segment. The $51 million decrease included a $18 million increase in production from agencies appointed since the beginning of 2025. 220 new agency appointments in the first six months of 2026, including 36 that market only our personal lines products. 5.9 percentage-point second-quarter 2026 combined ratio increase, including an increase of 2.3 points for losses from catastrophes. 5.6 percentage-point six-month 2026 combined ratio improvement, including a decrease of 5.8 points from lower catastrophe losses. 1.7 percentage-point second-quarter 2026 benefit from favorable prior accident year reserve development of $42 million, compared with 2.6 points or $63 million for second-quarter 2025. 2.4 percentage-point six-month 2026 benefit from favorable prior accident year reserve development, compared with 3.3 points for the first six months of 2025. 0.2 percentage-point improvement in the six-month 2026 ratio for current accident year loss and loss expenses before catastrophes. 0.3 percentage-point increase in the underwriting expense ratio for the first six months of 2026, compared with the same period of 2025. Commercial Lines Insurance Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Earned premiums

$          1,251

$ 1,212

3

$          2,492

$ 2,391

4

Fee revenues

1

—

nm

2

2

0

   Total revenues

1,252

1,212

3

2,494

2,393

4

Loss and loss expenses

910

767

19

1,757

1,502

17

Underwriting expenses

391

358

9

768

707

9

   Underwriting profit (loss)

$              (49)

$      87

nm

$              (31)

$    184

nm

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Loss and loss expenses

72.8 %

63.3 %

9.5

70.5 %

62.8 %

7.7

     Underwriting expenses

31.3

29.6

1.7

30.8

29.6

1.2

           Combined ratio

104.1 %

92.9 %

11.2

101.3 %

92.4 %

8.9

% Change

% Change

Agency renewal written premiums

$          1,146

$ 1,116

3

$          2,330

$ 2,268

3

Agency new business written premiums

208

200

4

413

403

2

Other written premiums

(27)

(26)

(4)

(57)

(56)

(2)

   Net written premiums

$          1,327

$ 1,290

3

$          2,686

$ 2,615

3

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Current accident year before catastrophe losses

62.2 %

59.6 %

2.6

62.5 %

60.3 %

2.2

     Current accident year catastrophe losses

12.0

7.2

4.8

10.8

6.1

4.7

     Prior accident years before catastrophe losses

(1.3)

(3.3)

2.0

(2.7)

(2.9)

0.2

     Prior accident years catastrophe losses

(0.1)

(0.2)

0.1

(0.1)

(0.7)

0.6

           Loss and loss expense ratio

72.8 %

63.3 %

9.5

70.5 %

62.8 %

7.7

Current accident year combined ratio before

  catastrophe losses

93.5 %

89.2 %

4.3

93.3 %

89.9 %

3.4

$37 million or 3% growth in second-quarter 2026 commercial lines net written premiums, primarily due to higher agency renewal premiums. Three percent growth in six-month net written premiums. $30 million or 3% increase in second-quarter renewal written premiums, with commercial lines average renewal pricing increases near the high end of the low-single-digit percent range. $8 million or 4% increase in second-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market. 11.2 percentage-point second-quarter 2026 combined ratio increase, including an increase of 4.9 points for losses from catastrophes. 8.9 percentage-point six-month 2026 combined ratio increase, including an increase of 5.3 points from higher catastrophe losses. 1.4 percentage-point second-quarter 2026 benefit from favorable prior accident year reserve development of $17 million, compared with 3.5 points or $42 million for second-quarter 2025. 2.8 percentage-point six-month 2026 benefit from favorable prior accident year reserve development, compared with 3.6 points for the first six months of 2025. Personal Lines Insurance Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Earned premiums

$  880

$  804

9

$          1,753

$ 1,502

17

Fee revenues

1

2

(50)

3

3

0

   Total revenues

881

806

9

1,756

1,505

17

Loss and loss expenses

638

598

7

1,245

1,444

(14)

Underwriting expenses

242

222

9

480

432

11

   Underwriting profit (loss)

$      1

$   (14)

nm

$               31

$   (371)

nm

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Loss and loss expenses

72.4 %

74.4 %

(2.0)

71.0 %

96.1 %

(25.1)

     Underwriting expenses

27.5

27.6

(0.1)

27.4

28.8

(1.4)

           Combined ratio

99.9 %

102.0 %

(2.1)

98.4 %

124.9 %

(26.5)

% Change

% Change

Agency renewal written premiums

$  943

$  866

9

$          1,669

$ 1,500

11

Agency new business written premiums

78

141

(45)

154

268

(43)

Other written premiums

(31)

(27)

(15)

(58)

(116)

50

   Net written premiums

$  990

$  980

1

$          1,765

$ 1,652

7

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Current accident year before catastrophe losses

52.3 %

51.3 %

1.0

52.8 %

56.9 %

(4.1)

     Current accident year catastrophe losses

21.4

25.4

(4.0)

19.2

41.7

(22.5)

     Prior accident years before catastrophe losses

(2.1)

(0.7)

(1.4)

(1.3)

(0.8)

(0.5)

     Prior accident years catastrophe losses

0.8

(1.6)

2.4

0.3

(1.7)

2.0

           Loss and loss expense ratio

72.4 %

74.4 %

(2.0)

71.0 %

96.1 %

(25.1)

Current accident year combined ratio before

  catastrophe losses

79.8 %

78.9 %

0.9

80.2 %

85.7 %

(5.5)

$10 million or 1% growth in second-quarter 2026 personal lines net written premiums, including higher agency renewal written premiums that benefited from rate increases in the high-single-digit percent range, partially offset by lower new business premiums and policy retention in the upper-80% range that reflect pricing discipline. Seven percent growth in six-month net written premiums. $63 million or 45% decrease in second-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market. 2.1 percentage-point second-quarter 2026 combined ratio improvement, including a decrease of 1.6 points for losses from catastrophes. 26.5 percentage-point six-month 2026 combined ratio improvement, including a decrease of 20.5 points from lower catastrophe losses. 1.3 percentage-point second-quarter 2026 favorable prior accident year reserve development of $11 million, compared with 2.3 points or $19 million for second-quarter 2025. 1.0 percentage-point six-month 2026 benefit from favorable prior accident year reserve development, compared with 2.5 points for the first six months of 2025. Excess and Surplus Lines Insurance Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Earned premiums

$  189

$  174

9

$  369

$  336

10

Fee revenues

1

1

0

2

2

0

   Total revenues

190

175

9

371

338

10

Loss and loss expenses

118

110

7

228

209

9

Underwriting expenses

53

49

8

103

93

11

   Underwriting profit

$   19

$    16

19

$    40

$    36

11

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Loss and loss expenses

62.5 %

63.5 %

(1.0)

61.8 %

62.3 %

(0.5)

     Underwriting expenses

28.0

27.6

0.4

28.1

27.5

0.6

           Combined ratio

90.5 %

91.1 %

(0.6)

89.9 %

89.8 %

0.1

% Change

% Change

Agency renewal written premiums

$  165

$  153

8

$  300

$  279

8

Agency new business written premiums

67

63

6

125

116

8

Other written premiums

(13)

(14)

7

(24)

(25)

4

   Net written premiums

$  219

$  202

8

$  401

$  370

8

Ratios as a percent of earned premiums:

Pt. Change

Pt. Change

     Current accident year before catastrophe losses

64.6 %

64.9 %

(0.3)

64.6 %

65.2 %

(0.6)

     Current accident year catastrophe losses

0.9

1.6

(0.7)

1.0

1.2

(0.2)

     Prior accident years before catastrophe losses

(2.9)

(2.7)

(0.2)

(3.5)

(3.8)

0.3

     Prior accident years catastrophe losses

(0.1)

(0.3)

0.2

(0.3)

(0.3)

0.0

           Loss and loss expense ratio

62.5 %

63.5 %

(1.0)

61.8 %

62.3 %

(0.5)

Current accident year combined ratio before

  catastrophe losses

92.6 %

92.5 %

0.1

92.7 %

92.7 %

0.0

$17 million or 8% growth in second-quarter 2026 excess and surplus lines net written premiums, including higher agency renewal written premiums that benefited from price increases averaging in the low-single-digit percent range. Eight percent growth in six-month net written premiums. $4 million or 6% increase in second-quarter 2026 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market. 0.6 percentage-point second-quarter 2026 combined ratio improvement and an increase of 0.1 points in the six-month 2026 combined ratio, largely due to lower ratios for current accident year loss and loss expenses including catastrophe losses, partially offset by higher ratios for underwriting expenses. 3.0 percentage-point second-quarter 2026 benefit from favorable prior accident year reserve development of $6 million, compared with 3.0 points or $5 million for second-quarter 2025. 3.8 percentage-point six-month 2026 benefit from favorable prior accident year reserve development, compared with 4.1 points for the first six months of 2025. Life Insurance Subsidiary Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Term life insurance

$       64

$       61

5

$     125

$     118

6

Whole life insurance

13

13

0

27

26

4

Universal life and other

10

9

11

20

19

5

    Earned premiums

87

83

5

172

163

6

Investment income, net of expenses

54

49

10

108

99

9

Investment gains and losses, net

(1)

(4)

75

(1)

(5)

80

Fee revenues

2

2

0

3

3

0

Total revenues

142

130

9

282

260

8

Contract holders' benefits incurred

79

73

8

163

154

6

Underwriting expenses incurred

25

24

4

48

47

2

    Total benefits and expenses

104

97

7

211

201

5

Net income before income tax

38

33

15

71

59

20

Income tax provision

8

7

14

15

12

25

Net income of the life insurance subsidiary

$       30

$       26

15

$       56

$       47

19

$4 million increase in second-quarter 2026 earned premiums, including a 5% increase for term life insurance, our largest life insurance product line. $9 million increase in six-month 2026 life insurance subsidiary net income, primarily due to more favorable mortality experience, increased investment income and increased earned premiums, partially offset by less favorable impacts from the unlocking of interest rate and other actuarial assumptions. $23 million or 2% six-month 2026 increase, to $1.490 billion, in GAAP shareholders' equity for the life insurance subsidiary, primarily from net income that was partially offset by an increase in unrealized investment losses on fixed-maturity securities. Investment and Balance Sheet Highlights

Investments Results

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

% Change

2026

2025

% Change

Investment income, net of expenses

$                319

$     285

12

$                637

$       565

13

Investment interest credited to contract holders

(33)

(31)

(6)

(65)

(63)

(3)

Investment gains and losses, net

1,308

473

177

1,238

406

205

      Investments profit

$             1,594

$     727

119

$             1,810

$       908

99

Investment income:

   Interest

$                244

$     214

14

$                479

$       424

13

   Dividends

72

70

3

148

137

8

   Other

8

5

60

20

12

67

   Less investment expenses

5

4

25

10

8

25

      Investment income, pretax

319

285

12

637

565

13

      Less income taxes

55

49

12

110

97

13

      Total investment income, after-tax

$                264

$     236

12

$                527

$       468

13

Investment returns:

 Average invested assets plus cash and cash

   equivalents

$           34,421

$ 30,500

$           34,313

$  30,468

      Average yield pretax

3.71 %

3.74 %

3.71 %

3.71 %

      Average yield after-tax

3.07

3.10

3.07

3.07

      Effective tax rate

17.4

17.2

17.3

17.2

Fixed-maturity returns:

Average amortized cost

$           19,209

$ 17,372

$           18,938

$  17,334

Average yield pretax

5.08 %

4.93 %

5.06 %

4.89 %

Average yield after-tax

4.14

4.02

4.12

4.00

Effective tax rate

18.5

18.4

18.5

18.3

$34 million or 12% rise in second-quarter 2026 pretax investment income, including a 14% increase in interest income from fixed-maturity securities and a 3% increase in equity portfolio dividends. $1.382 billion in second-quarter 2026 pretax total investment gains, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio. (Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Investment gains and losses on equity securities sold, net

$          183

$            (1)

$           223

$             (3)

Unrealized gains and losses on equity securities still held, net

1,117

481

1,006

411

Investment gains and losses on fixed-maturity securities, net

5

(12)

5

(14)

Other

3

5

4

12

Subtotal - investment gains and losses reported in net income

1,308

473

1,238

406

Change in unrealized investment gains and losses - fixed
maturities and short-term

74

28

(146)

95

Total

$       1,382

$          501

$        1,092

$          501

Balance Sheet Highlights

(Dollars in millions, except share data)

At June 30,

At December 31,

2026

2025

   Total investments

$         33,153

$          31,783

   Total assets

43,231

41,002

   Short-term debt

17

25

   Long-term debt

791

790

   Shareholders' equity

16,671

15,911

   Book value per share

108.64

102.35

   Debt-to-total-capital ratio

4.6 %

4.9 %

$34.903 billion in consolidated cash and total investments at June 30, 2026, an increase of 5% from $33.214 billion at year-end 2025. $18.954 billion bond portfolio at June 30, 2026, with an average rating of A2/A. Fair value increased $409 million during the second quarter of 2026, including $316 million in net purchases of fixed-maturity securities. $13.194 billion equity portfolio was 39.8% of total investments, including $8.907 billion in appreciated value before taxes at June 30, 2026. Second-quarter 2026 increase in fair value of $625 million, including $678 million in net sales of equity securities. $7.04 second-quarter 2026 increase in book value per share, including an addition of $1.46 of net income before investment gains, $7.09 from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities, partially offset by $0.57 for other items and $0.94 from dividends declared to shareholders. Value creation ratio of 8.0% for the first six months of 2026, including 3.5% from net income before investment gains, which includes underwriting and investment income, and 6.2% from investment gains for equity securities, partially offset by 0.7% from changes in unrealized gains for fixed-maturity securities and 1.0% for other items. For additional information or to register for our conference call webcast, please visit investors.cinfin.com.

About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.

Mailing Address:

Street Address:

P.O. Box 145496

6200 South Gilmore Road

Cincinnati, Ohio 45250-5496

Fairfield, Ohio 45014-5141

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 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 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 2025 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

* * *

Cincinnati Financial Corporation

Condensed Consolidated Balance Sheets and Statements of Income (unaudited)

(Dollars in millions)

June 30,

December 31,

2026

2025

Assets

   Investments

$        33,153

$        31,783

   Cash and cash equivalents

1,750

1,431

   Premiums receivable

3,546

3,142

   Reinsurance recoverable

633

655

 Deferred policy acquisition costs

1,442

1,344

   Other assets

2,707

2,647

Total assets

$        43,231

$        41,002

Liabilities

   Insurance reserves

$        15,465

$        14,499

   Unearned premiums

5,724

5,254

   Deferred income tax

1,861

1,833

   Long-term debt and lease obligations

859

861

   Other liabilities

2,651

2,644

Total liabilities

26,560

25,091

Shareholders' Equity

   Common stock and paid-in capital

1,979

1,958

   Retained earnings

17,958

16,719

   Accumulated other comprehensive loss

(135)

(34)

   Treasury stock

(3,131)

(2,732)

Total shareholders' equity

16,671

15,911

Total liabilities and shareholders' equity

$        43,231

$        41,002

(Dollars in millions, except per share data)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Revenues

   Earned premiums

$         2,635

$         2,480

$          5,239

$          4,824

   Investment income, net of expenses

319

285

637

565

   Investment gains and losses, net

1,308

473

1,238

406

   Other revenues

12

10

23

19

      Total revenues

4,274

3,248

7,137

5,814

Benefits and Expenses

   Insurance losses and contract holders' benefits

1,887

1,660

3,638

3,628

   Underwriting, acquisition and insurance expenses

786

709

1,550

1,411

   Interest expense

14

14

27

27

   Other operating expenses

11

10

20

21

      Total benefits and expenses

2,698

2,393

5,235

5,087

Income Before Income Taxes

1,576

855

1,902

727

Provision for Income Taxes

321

170

373

132

Net Income

$         1,255

$            685

$          1,529

$             595

Per Common Share:

   Net income — basic

$           8.14

$           4.38

$            9.88

$            3.81

   Net income — diluted

8.05

4.34

9.78

3.77

Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; additional prior-period reconciliations available at investors.cinfin.com.)

Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules for insurance company regulation in the United States of America as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.

Management uses certain non-GAAP financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management's control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company's insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold in any period may be subject to management's discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses are recognized from certain changes in market values of securities without actual realization. Management believes that the level of investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.For these reasons, many investors and shareholders consider non-GAAP operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.

Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global. Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. 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. Cincinnati Financial Corporation

 Net Income Reconciliation

(Dollars in millions, except per share data)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net income

$        1,255

$           685

$         1,529

$           595

Less:

   Investment gains and losses, net

1,308

473

1,238

406

   Income tax on investment gains and losses

(277)

(99)

(263)

(85)

   Investment gains and losses, after-tax

1,031

374

975

321

Non-GAAP operating income

$           224

$           311

$            554

$           274

Diluted per share data:

Net income

$          8.05

$          4.34

$           9.78

$          3.77

Less:

   Investment gains and losses, net

8.40

3.00

7.92

2.57

   Income tax on investment gains and losses

(1.78)

(0.63)

(1.68)

(0.54)

   Investment gains and losses, after-tax

6.62

2.37

6.24

2.03

   Non-GAAP operating income

$          1.43

$          1.97

$           3.54

$          1.74

Life Insurance Reconciliation

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net income of the life insurance subsidiary

$             30

$             26

$             56

$             47

Investment gains and losses, net

(1)

(4)

(1)

(5)

Income tax on investment gains and losses

—

(1)

—

(1)

Non-GAAP operating income

31

29

57

51

Investment income, net of expenses

(54)

(49)

(108)

(99)

Investment interest credited to contract holders

33

31

65

63

Income tax excluding tax on investment gains and losses,
net

8

8

15

13

Life insurance segment profit

$             18

$             19

$             29

$             28

Property Casualty Insurance Reconciliation

(Dollars in millions)

Three months ended June 30, 2026

Consolidated

Commercial

Personal

E&S

Other*

Premiums:

   Net written premiums

$       2,825

$       1,327

$         990

$         219

$          289

   Unearned premiums change

(277)

(76)

(110)

(30)

(61)

   Earned premiums

$       2,548

$       1,251

$         880

$         189

$          228

Underwriting profit (loss)

$           (18)

$          (49)

$             1

$           19

$            11

(Dollars in millions)

Six months ended June 30, 2026

Consolidated

Commercial

Personal

E&S

Other*

Premiums:

   Net written premiums

$       5,493

$       2,686

$       1,765

$         401

$          641

   Unearned premiums change

(426)

(194)

(12)

(32)

(188)

   Earned premiums

$       5,067

$       2,492

$       1,753

$         369

$          453

Underwriting profit (loss)

$            97

$          (31)

$            31

$           40

$            57

(Dollars in millions)

Three months ended June 30, 2025

Consolidated

Commercial

Personal

E&S

Other*

Premiums:

   Net written premiums

$       2,733

$       1,290

$         980

$         202

$          261

   Unearned premiums change

(336)

(78)

(176)

(28)

(54)

   Earned premiums

$       2,397

$       1,212

$         804

$         174

$          207

Underwriting profit (loss)

$          128

$            87

$         (14)

$           16

$            39

(Dollars in millions)

Six months ended June 30, 2025

Consolidated

Commercial

Personal

E&S

Other*

Premiums:

   Net written premiums

$       5,228

$       2,615

$       1,652

$         370

$          591

   Unearned premiums change

(567)

(224)

(150)

(34)

(159)

   Earned premiums

$       4,661

$       2,391

$       1,502

$         336

$          432

Underwriting profit (loss)

$         (170)

$          184

$        (371)

$           36

$           (19)

Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. 

*Included in Other are the results of Cincinnati Re and Cincinnati Global.

Cincinnati Financial Corporation

Other Measures

Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company's insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this measure is useful, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all-inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting. Written premium: Under statutory accounting rules in the U.S., property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. The difference between written and earned premium is unearned premium.  Value Creation Ratio Calculations

(Dollars are per share)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Value creation ratio:

   End of period book value*

$      108.64

$        91.46

$      108.64

$        91.46

   Less beginning of period book value

101.60

87.78

102.35

89.11

   Change in book value

7.04

3.68

6.29

2.35

   Dividend declared to shareholders

0.94

0.87

1.88

1.74

   Total value creation

$          7.98

$          4.55

$          8.17

$          4.09

Value creation ratio from change in book value**

7.0 %

4.2 %

6.2 %

2.6 %

Value creation ratio from dividends declared to shareholders***

0.9

1.0

1.8

2.0

Value creation ratio

7.9 %

5.2 %

8.0 %

4.6 %

* 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

SOURCE Cincinnati Financial Corporation

Key Takeaways CINF benefits from Commercial Lines growth, disciplined underwriting and strong agency relationships.Specialty, Personal Lines and pricing initiatives support diversified earnings and profitable premium growth. Cincinnati Financial generates strong cash flow while rewarding shareholders through dividends and buybacks. Cincinnati Financial Corporation’s (CINF - Free Report) shares have risen 31.3% in a year, outperforming the industry’s growth of 7.2%. Its share price closed at $192.03 on Thursday and reached a 52-week high of $192.09, reflecting investor confidence.

Strong underwriting performance, healthy premium growth, improved pricing and higher investment income, along with a robust capital position, have increased investors' confidence. The company has surpassed earnings estimates in each of the last four quarters, with an average of 27.5%. While its premium valuation may limit multiple expansion, continued underwriting discipline, healthy premium growth and improving investment income should support long-term earnings growth.

Cincinnati Financial’s shares have outperformed its peers, including Arch Capital Group Ltd. (ACGL - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , which have gained 14.3% and 1.9%, respectively, while Palomar Holdings, Inc. (PLMR - Free Report) has lost 3.7% in a year.

1-Year Price Performance: CINF, ACGL, WRB, PLMR & Industry
Image Source: Zacks Investment Research

CINF’s Premium ValuationCincinnati Financial’s shares are trading at a premium to the industry. Its price-to-book value of 1.89X is higher than the industry average of 1.5X. However, it has a Value Score of B.

Image Source: Zacks Investment Research

CINF’s Growth Projection EncouragesThe Zacks Consensus Estimate for Cincinnati Financial’s 2026 earnings per share (EPS) is pinned at $8.66, indicating a year-over-year increase of 8.9%. The estimate for 2026 revenues is pegged at $12.05 billion, implying a year-over-year improvement of 7.7%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 4.9% and 6.6%, respectively, from the corresponding 2026 estimates.

The expected long-term earnings growth is pegged at 5.3%.  It has a Growth Score of B.

CINF’s Higher Return on EquityReturn on equity in the trailing-12 months was 10.6%, better than the industry average of 7.4%. This highlights the company’s efficiency in utilizing shareholders’ funds.

Factors Acting in Favor of CINFCincinnati Financial’s Commercial Lines Insurance segment has been consistently witnessing growth over the past several quarters, led by disciplined pricing, policy-level risk selection and strong independent agency relationships.  The company continues to leverage its agency-centric model to expand Commercial Lines through deeper agency relationships, expand its product offerings and drive profitable premium growth. Its disciplined underwriting approach and focus on risk selection should continue to support Commercial Lines' profitability despite a moderating pricing environment.

Cincinnati Financial continues to strengthen its diversified insurance platform through pricing discipline and targeted growth initiatives. Management expects property and casualty underwriting results to benefit from continued price increases and the expansion of Cincinnati Re and Cincinnati Global, which enhance pricing precision, broaden product offerings and improve income stability.

The Excess & Surplus (E&S) business continues to benefit from strong new business, favorable renewal pricing and product expansion. Meanwhile, Personal Lines remains a key growth driver, which is supported by the Cincinnati Private Client business, higher renewal pricing and geographic diversification. These businesses diversify earnings, reduce volatility and support long-term profitable growth.

Net investment income increased 14% year over year in the first quarter of 2026, driven by higher reinvestment yields, growth in fixed-income investments, and robust operating cash flows, which more than doubled year over year to $656 million in the first quarter of 2026. Backed by a large, high-quality investment portfolio, these factors continue to provide a meaningful earnings tailwind alongside underwriting operations.

Cincinnati Financial’s expansion strategy is driven by its exclusive partnerships with local, independent insurance agencies. This relationship-based model fosters strong customer loyalty, high retention rates and consistent business growth. As the insurer expands its agency network into underserved markets, it remains well-positioned to drive sustainable premium growth, deepen market penetration and create long-term shareholder value.

Cincinnati Financial has returned capital to its shareholders through share buybacks, dividend hikes and special dividends. It has an excellent track record of raising dividends for 65 straight years. Its dividend yield of 2.% is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors.

Risks for CINF StockCincinnati Financial’s results remain sensitive to catastrophe activity, particularly in property lines, and severity can vary sharply by period. Although reinsurance provides protection, elevated catastrophe losses could pressure underwriting margins.

Management continues to emphasize risk selection and segmentation, but rising loss costs, social inflation, larger jury awards and increasing claim severity could pressure profitability despite conservative reserves.

ConclusionStrong performance at the Commercial Lines segment, pricing discipline, agent-focused business models, higher investment income, consistent cash flow and prudent capital deployment support growth. However, exposure to catastrophe losses and loss-cost trends, including social inflation, remains a risk.

Higher return on equity, favorable growth estimates and an impressive dividend history should continue to benefit Cincinnati Financial over the long term. A VGM Score of A instils confidence. Given the premium valuation, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.