Cincinnati Financial Reports Second-Quarter 2025 Results
CINCINNATI, July 28, 2025 /PRNewswire/ -- Cincinnati Financial Corporation (NASDAQ:CINF) today reported:
Second-quarter 2025 net income of $685 million, or $4.34 per share, compared with $312 million, or $1.98 per share, in the second quarter of 2024, after recognizing a $380 million second-quarter 2025 after-tax increase in the fair value of equity securities still held.
Second-quarter 2025 non-GAAP operating income* of $311 million, or $1.97 per share, compared with $204 million, or $1.29 per share, in the second quarter of last year. The increase of $107 million included an unfavorable effect of $45 million from an increase in after-tax catastrophe losses.
$373 million increase in second-quarter 2025 net income, compared with second-quarter 2024, including the effects of after-tax net increases of $266 million from net investment gains, $73 million from property casualty underwriting profit and $34 million from investment income.
$91.46 book value per share at June 30, 2025, up $2.35 since year-end.
4.6% value creation ratio for the first six months of 2025, compared with 8.2% for the same period of 2024.
Financial Highlights
(Dollars in millions, except per share data)
Three months ended June 30,
Six months ended June 30,
2025
2024
% Change
2025
2024
% Change
Revenue Data
Earned premiums
$ 2,480
$ 2,156
15
$ 4,824
$ 4,227
14
Investment income, net of expenses
285
242
18
565
487
16
Total revenues
3,248
2,544
28
5,814
5,479
6
Income Statement Data
Net income
$ 685
$ 312
120
$ 595
$ 1,067
(44)
Investment gains and losses, after-tax
374
108
246
321
591
(46)
Non-GAAP operating income*
$ 311
$ 204
52
$ 274
$ 476
(42)
Per Share Data (diluted)
Net income
$ 4.34
$ 1.98
119
$ 3.77
$ 6.77
(44)
Investment gains and losses, after-tax
2.37
0.69
243
2.03
3.75
(46)
Non-GAAP operating income*
$ 1.97
$ 1.29
53
$ 1.74
$ 3.02
(42)
Book value
$ 91.46
$ 81.79
12
Cash dividend declared
$ 0.87
$ 0.81
7
$ 1.74
$ 1.62
7
Diluted weighted average shares outstanding
157.8
157.5
0
157.8
157.7
0
*
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
94.9% second-quarter 2025 property casualty combined ratio, improved from 98.5% for the second quarter of 2024.
11% growth in second-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
$404 million second-quarter 2025 property casualty new business written premiums, down 1%. Agencies appointed since the beginning of 2024 contributed $38 million or 9% of total new business written premiums.
$26 million second-quarter 2025 life insurance subsidiary net income, up $2 million compared with the second quarter of 2024, and 3% growth in second-quarter 2025 term life insurance earned premiums.
Investment and Balance Sheet Highlights
18% or $43 million increase in second-quarter 2025 pretax investment income, including a 24% increase in bond interest income and a 1% increase in stock portfolio dividends.
Three-month increase of 4% in fair value of total investments at June 30, 2025, including a 3% increase for the bond portfolio and a 5% increase for the stock portfolio.
$5.061 billion parent company cash and marketable securities at June 30, 2025, down 3% from year-end 2024.
Confident in Long-Term PlansStephen M. Spray, president and chief executive officer, commented: "I'm pleased with our overall second-quarter 2025 results. It was a solid quarter, showing the strength of our agent-centered strategy and the value of our long-term plans to steadily expand product and geographic diversification as well as deepen pricing segmentation and sophistication.
"We saw the increases in weather-related catastrophe events that started the year continue in the second quarter. In April, May and June, 20 total catastrophes were declared, including the heart-breaking floods in Texas. Our claims associates continued to deliver fast, fair and empathetic service, paying more than half a billion dollars in catastrophe-related claims so far in 2025.
"While our 103.8% combined ratio for the first six months of the year is higher than we'd like it to be, that ratio for our second quarter improved 3.6 points to 94.9%. Again demonstrating the strength of our long-term initiatives, our current accident year combined ratio before catastrophe losses improved 3.1 points for the quarter and 1.9 points for the first six months, reaching 85.1% and 87.7%, respectively.
"Pretax investment income for the second quarter also grew, rising 18% to $285 million, driven by a 24% increase in bond interest income."
Balancing Growth and Profitability"We believe combining our hallmark of personal service with data-driven analytics will allow us to grow profitably through all market cycles. Property casualty consolidated net written premiums grew 11% for both the second quarter and the first half of 2025, surpassing $5 billion in the first six months for the first time ever.
"Keeping underwriting discipline in mind, we've managed average commercial lines price increases near the high end of the mid-single-digit percent range and excess and surplus lines in the high-single-digit percentage range. Personal lines homeowner prices increased on average in the low-double digit percent range and auto in the high-single-digit percent range.
"In May, we launched our fifth product brokered through CSU Producer Resources Inc. with the support of Cincinnati Global Underwriting Ltd. We believe having this additional capability is also boosting our ability to write more excess and surplus lines business overall, contributing to the strong 24% increase in second-quarter new business written premiums for our E&S segment."
Book Value Reaches New Record"At June 30, our book value again reached a record high, increasing 2.6% since December 31, 2024, to $91.46. Consolidated cash and total investments also reached a new high, exceeding $30 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 4.6% for the first half of 2025."
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 2,397
$ 2,075
16
$ 4,661
$ 4,067
15
Fee revenues
3
3
0
7
6
17
Total revenues
2,400
2,078
15
4,668
4,073
15
Loss and loss expenses
1,587
1,412
12
3,474
2,682
30
Underwriting expenses
685
631
9
1,364
1,225
11
Underwriting profit (loss)
$ 128
$ 35
266
$ (170)
$ 166
nm
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
66.3 %
68.1 %
(1.8)
74.5 %
66.0 %
8.5
Underwriting expenses
28.6
30.4
(1.8)
29.3
30.1
(0.8)
Combined ratio
94.9 %
98.5 %
(3.6)
103.8 %
96.1 %
7.7
% Change
% Change
Agency renewal written premiums
$ 2,135
$ 1,843
16
$ 4,047
$ 3,526
15
Agency new business written premiums
404
407
(1)
787
753
5
Other written premiums
194
209
(7)
394
428
(8)
Net written premiums
$ 2,733
$ 2,459
11
$ 5,228
$ 4,707
11
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
56.5 %
57.8 %
(1.3)
58.4 %
59.5 %
(1.1)
Current accident year catastrophe losses
12.4
12.2
0.2
19.4
9.9
9.5
Prior accident years before catastrophe losses
(2.4)
(0.9)
(1.5)
(2.3)
(2.1)
(0.2)
Prior accident years catastrophe losses
(0.2)
(1.0)
0.8
(1.0)
(1.3)
0.3
Loss and loss expense ratio
66.3 %
68.1 %
(1.8)
74.5 %
66.0 %
8.5
Current accident year combined ratio before
catastrophe losses
85.1 %
88.2 %
(3.1)
87.7 %
89.6 %
(1.9)
$274 million or 11% growth of second-quarter 2025 property casualty net written premiums, and six-month growth of 11%, reflecting premium growth initiatives, price increases and a higher level of insured exposures. The contribution from Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM in total reduced the second-quarter growth rate by less than 1 percentage point, reflecting pricing discipline where market conditions softened.
$3 million decrease in second-quarter 2025 new business premiums written by agencies, driven by our personal lines insurance segment. The $3 million decrease included a $31 million increase in standard market property casualty production from agencies appointed since the beginning of 2024.
258 new agency appointments in the first six months of 2025, including 47 that market only our personal lines products.
3.6 percentage-point second-quarter 2025 combined ratio improvement, despite an increase of 1.0 points for losses from catastrophes.
7.7 percentage-point six-month 2025 combined ratio increase, including an increase of 9.8 points from higher catastrophe losses.
2.6 percentage-point second-quarter 2025 benefit from favorable prior accident year reserve development of $63 million, compared with 1.9 points or $40 million for second-quarter 2024.
3.3 percentage-point six-month 2025 benefit from favorable prior accident year reserve development, compared with 3.4 points for the first six months of 2024.
1.1 percentage-point improvement in the six-month 2025 ratio for current accident year loss and loss expenses before catastrophes, including an unfavorable 0.6 points for the net effect of $52 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.
0.8 percentage-point decrease in the underwriting expense ratio for the first six months of 2025, compared with the same period of 2024, primarily due to growth in earned premiums outpacing growth in various expenses.
Commercial Lines Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 1,212
$ 1,107
9
$ 2,391
$ 2,189
9
Fee revenues
—
1
(100)
2
2
0
Total revenues
1,212
1,108
9
2,393
2,191
9
Loss and loss expenses
767
746
3
1,502
1,465
3
Underwriting expenses
358
352
2
707
677
4
Underwriting profit
$ 87
$ 10
770
$ 184
$ 49
276
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
63.3 %
67.4 %
(4.1)
62.8 %
67.0 %
(4.2)
Underwriting expenses
29.6
31.7
(2.1)
29.6
30.9
(1.3)
Combined ratio
92.9 %
99.1 %
(6.2)
92.4 %
97.9 %
(5.5)
% Change
% Change
Agency renewal written premiums
$ 1,116
$ 1,023
9
$ 2,268
$ 2,099
8
Agency new business written premiums
200
193
4
403
375
7
Other written premiums
(26)
(30)
13
(56)
(65)
14
Net written premiums
$ 1,290
$ 1,186
9
$ 2,615
$ 2,409
9
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
59.6 %
60.0 %
(0.4)
60.3 %
61.5 %
(1.2)
Current accident year catastrophe losses
7.2
10.0
(2.8)
6.1
8.5
(2.4)
Prior accident years before catastrophe losses
(3.3)
(1.9)
(1.4)
(2.9)
(2.3)
(0.6)
Prior accident years catastrophe losses
(0.2)
(0.7)
0.5
(0.7)
(0.7)
0.0
Loss and loss expense ratio
63.3 %
67.4 %
(4.1)
62.8 %
67.0 %
(4.2)
Current accident year combined ratio before
catastrophe losses
89.2 %
91.7 %
(2.5)
89.9 %
92.4 %
(2.5)
$104 million or 9% growth in second-quarter 2025 commercial lines net written premiums, including higher agency renewal and new business written premiums. Nine percent growth in six-month net written premiums.
$93 million or 9% increase in second-quarter renewal written premiums, with commercial lines average renewal pricing increases near the high end of the mid-single-digit percent range.
$7 million or 4% increase in second-quarter 2025 new business premiums written by agencies, as we continue to carefully underwrite each policy in a highly competitive market.
6.2 percentage-point second-quarter 2025 combined ratio improvement, including a decrease of 2.3 points for losses from catastrophes.
5.5 percentage-point six-month 2025 combined ratio improvement, including a decrease of 2.4 points from lower catastrophe losses.
3.5 percentage-point second-quarter 2025 benefit from favorable prior accident year reserve development of $42 million, compared with 2.6 points or $29 million for second-quarter 2024.
3.6 percentage-point six-month 2025 benefit from favorable prior accident year reserve development, compared with 3.0 points for the first six months of 2024.
Personal Lines Insurance Results
(Dollars in millions)
Three months ended June 30,
Six months ended June 30,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 804
$ 631
27
$ 1,502
$ 1,219
23
Fee revenues
2
1
100
3
2
50
Total revenues
806
632
28
1,505
1,221
23
Loss and loss expenses
598
489
22
1,444
868
66
Underwriting expenses
222
185
20
432
358
21
Underwriting loss
$ (14)
$ (42)
67
$ (371)
$ (5)
