Cincinnati Financial Corporation

“Our main business is property casualty insurance marketed through independent insurance agencies in 46 states. Our headquarters is in Fairfield, Ohio.”

“Cincinnati Financial Corporation owns 100% of four subsidiaries: The Cincinnati Insurance Company (Cincinnati Insurance), Cincinnati Global Underwriting Ltd.SM (Cincinnati Global), CSU Producer Resources Inc. and CFC Investment Company.”

“Approximately 70% of our commercial in-force policies have annual premiums of $10,000 or less, accounting in total for approximately 10% of our 2025 commercial lines premium volume.”

“We refer to our high net worth products and services as Cincinnati Private ClientSM, representing approximately 60% of our personal lines insurance premiums.”

“In 2025, we estimated that 39% of our general liability premiums, and 38% of our workers’ compensation premiums came from the construction industry based on North American Industry Classification System (NAICS) codes.”

“Distribution through independent insurance agents or brokers represents approximately 60% of overall U.S. property casualty insurance premiums and approximately 80% of commercial property casualty insurance premiums”

“CFC Investment Company, which offers commercial leasing and financing services to our agencies, their clients and other customers.”

“The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, known as Cincinnati Re®.”

“The Cincinnati Life Insurance Company (Cincinnati Life), which provides life insurance policies and fixed annuities”

“Cincinnati Global owns 100% of Cincinnati Global Underwriting Agency Ltd.SM, a London-based, global specialty underwriter for Lloyd's Syndicate 318”

“At the end of 2025, for example, approximately 86% of our homeowner policies were accompanied by a personal auto policy in the same account.”

“The Cincinnati Specialty Underwriters Insurance Company (Cincinnati Specialty Underwriters), which offers excess and surplus lines insurance products”

“We estimate that approximately 75% of 2025 commercial premiums were subject to annual rating or were written on a one-year policy term.”

“In 2025, our 10 highest volume personal lines states generated 59.2% of our earned premiums compared with 61.7% in 2024.”

“The excess and surplus lines segment contributed net earned premiums of $698 million to 2025 consolidated total revenues, or 5.5% of the total, and reported profit before income taxes of $85 million.”

“The personal lines insurance segment contributed net earned premiums of $3.199 billion to 2025 consolidated total revenues, or 25.3% of the total, and reported a loss before income taxes of $111 million.”

“Three competitive advantages distinguish our company, positioning us to build shareholder value and to be successful overall”

“Current accident year catastrophe losses709 409 352 73 16”

“Through The Cincinnati Insurance Company, Cincinnati Financial Corporation is one of the 25 largest property casualty insurers in the nation, based on net written premium volume for the first nine months of 2025”

“We believe profit margins can be improved with additional information and expanded pricing capabilities we can access with the use of technology and analytics.”

“Premium growth initiatives also include expansion of Cincinnati Re and Cincinnati Global.”

“We are targeting an annual value creation ratio averaging 10% to 13% over the next five-year period. At 18.8% for 2025, our performance was above the high end of that range.”

“Within the life insurance market, we continue to view the voluntary life space as particularly attractive.”

“We believe that our initiatives to continually improve pricing precision and underwriting decision processes to manage loss cost effects will continue to benefit commercial lines profitability during 2026.”

“There has been increased regulatory scrutiny of the use of machine learning and AI, and it is likely that we will be subject to new regulations that could materially adversely affect our operations or ability to write business profitably in one or more jurisdictions.”

“our life insurance subsidiary reported net income of $106 million in 2025, compared with $91 million in 2024 and $75 million in 2023”

“Our systems have been, and will likely continue to be, subject to viruses or other malicious code, unauthorized access, cyberattacks, cyber frauds or other computer-related penetrations.”

“Net unfavorable reserve development on prior accident years of $41 million for commercial auto and $21 million for commercial casualty was recognized during 2025.”

“Inflation in various forms, such as we experienced in recent periods, reduces underwriting profitability due to higher losses and loss expenses to repair damaged autos or other property that we insure.”

“Generally, the maximum dividend that may be paid is limited to the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year.”

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