CINCINNATI FINANCIAL CORP

Previous wording

Total revenues increased $704 million for the second quarter of 2025, compared with the second quarter of 2024, including higher net investment gains, earned premiums and investment income. For the first six months of 2025, compared with the same period of 2024, total revenues increased $335 million, primarily due to higher earned premiums and investment income offset by a decrease in net investment gains. Premium and investment revenue trends are discussed further in the respective sections of Financial Results.

Current wording

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

Previous wording

Net income for the second quarter of 2025, compared with the second quarter of 2024, increased $373 million, including increases of $266 million in after-tax net investment gains and losses, $73 million in after-tax property casualty underwriting profit and $34 million in after-tax investment income. Catastrophe losses for the second quarter of 2025, mostly weather related, were $45 million higher after taxes and unfavorably affected both net income and property casualty underwriting profit. Life insurance segment results decreased by $3 million on a pretax basis.

Current wording

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

Previous wording

For the first six months of 2025, net income decreased $472 million, compared with the first six months of 2024,

Current wording

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

Previous wording

including decreases of $270 million in after-tax investment gains and losses and $265 million in after-tax property casualty underwriting income, partially offset by an increase of $62 million in after-tax investment income. The property casualty underwriting income decrease included an unfavorable $401 million after-tax effect from higher catastrophe losses. Life insurance segment results decreased by $4 million on a pretax basis.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

Total assets at June 30, 2025, increased 6% compared with year-end 2024, and included an increase of 4% in total investments that reflected net purchases and higher fair values for many securities in our equity portfolio. Shareholders' equity increased 3% and book value per share also increased 3% during the first six months of 2025. Our debt-to-total-capital ratio (capital is the sum of debt plus shareholders' equity) decreased slightly compared with year-end 2024.

Current wording

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

Previous wording

Our value creation ratio is our primary performance metric. As shown in the tables below, that ratio was 4.6% for the first six months of 2025, compared with 8.2% for the same period in 2024. The decrease was primarily due to a reduction in overall net gains from our investment portfolio and an underwriting loss from our insurance operations. Book value per share increased $2.35 during the first six months of 2025 and contributed 2.6 percentage points to the value creation ratio, while dividends declared at $1.74 per share contributed 2.0 points. Value creation ratio major contributors and in total, along with calculations from per-share amounts, are shown in the tables below.

Current wording

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

Previous wording

Operating through The Cincinnati Insurance Company, Cincinnati Financial Corporation is one of the 25 largest property casualty insurers in the nation, based on 2024 net written premiums for approximately 2,000 U.S. stock and mutual insurer groups. We market our insurance products through a select group of independent insurance agencies as discussed in our 2024 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Page 6. At June 30, 2025, we actively marketed through 2,258 agencies located in 46 states. We maintain a long-term perspective that guides us in addressing immediate challenges or opportunities while focusing on the major decisions that best position our company for success through all market cycles.

Current wording

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

Previous wording

•Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first six months of 2025, our consolidated property casualty net written premium year-over-year growth was 11%. As of February 2025, A.M. Best projected the industry's full-year 2025 written premium growth at approximately 7%. For the five-year period 2020 through 2024, our growth rate exceeded that of the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business.

Current wording

•Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first nine months of 2025, our consolidated property casualty net written premium year-over-year growth was 10%, comparing favorably with the industry's 6% growth rate reported by A.M. Best for the first six months of 2025. For the five-year period 2020 through 2024, our growth rate exceeded that of the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business.

Previous wording

•Combined ratio – We believe our underwriting philosophy and initiatives can generate an average GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%. For the first six months of 2025, our GAAP combined ratio was 103.8%, including 19.4 percentage points of current accident year catastrophe losses partially offset by 3.3 percentage points of favorable loss reserve development on prior accident years. Our statutory combined ratio was 102.6% for the first six months of 2025. As of February 2025, A.M. Best projected the industry's full-year 2025 statutory combined ratio at approximately 99%, including approximately 9 percentage points of catastrophe losses and a favorable effect of less than 1 percentage point of loss reserve development on prior accident years. The industry's ratio again excludes its mortgage and financial guaranty lines of business.

Current wording

•Combined ratio – We believe our underwriting philosophy and initiatives can generate an average GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%. For the first nine months of 2025, our GAAP combined ratio was 98.4%, including 14.2 percentage points of current accident year catastrophe losses partially offset by 2.5 percentage points of favorable loss reserve development on prior accident years. Our statutory combined ratio was 97.7% for the first nine months of 2025, comparing unfavorably with the industry's 96.4% reported by A.M. Best for the first six months of 2025. The industry's ratio again excludes its mortgage and financial guaranty lines of business.

Previous wording

•Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index. For the first six months of 2025, pretax investment income was $565 million, up 16% compared with the same period in 2024. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential.

Current wording

•Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index. For the first nine months of 2025, pretax investment income was $860 million, up 15% compared with the same period in 2024. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential.

Previous wording

At June 30, 2025, we held $5.094 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $4.719 billion, or 92.6%, was invested in common stocks, and $70 million, or 1.4%, was cash or cash equivalents. Our debt-to-total-capital ratio was 5.4% at June 30, 2025. Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.1-to-1 for the 12 months ended June 30, 2025, compared with 1.0-to-1 at year-end 2024.

Current wording

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

Previous wording

Our consolidated property casualty insurance operations generated an underwriting profit of $128 million for the second quarter of 2025 and an underwriting loss of $170 million for the first six months of 2025. The second-quarter 2025 underwriting profit increase of $93 million, compared with second-quarter 2024, included an unfavorable increase of $57 million in losses from catastrophes, mostly caused by severe weather, and a higher amount of total favorable reserve development on prior accident years. The change in underwriting profitability for the second quarter of 2025 also included a favorable effect from higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums. The six-month underwriting loss of $170 million, compared with an underwriting profit of $166 million for the first six months of 2024, included an unfavorable increase of $501 million in current accident year catastrophe losses, mostly caused by the January 2025 wildfires in southern California, partially offset by a higher amount of total favorable reserve development on prior accident years. For the first six months of 2025, the combined ratio before catastrophe losses and prior years reserve development improved by 1.9 percentage points compared with the same period of 2024.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

For all property casualty lines of business in aggregate, net loss and loss expense reserves at June 30, 2025, were $829 million, or 9%, higher than at year-end 2024, including an increase of $711 million for the incurred but not reported (IBNR) portion.

Current wording

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

Previous wording

Our consolidated property casualty combined ratio for the second quarter of 2025 decreased by 3.6 percentage points, compared with the same period of 2024, including an increase of 1.0 points from catastrophe losses and loss expenses. For the first six months of 2025, compared with the 2024 six-month period, our combined ratio increased by 7.7 percentage points, including an increase of 9.8 points from catastrophe losses and loss expenses. Other combined ratio components that changed are discussed below and in further detail in Financial Results by property casualty insurance segment.

Current wording

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

Previous wording

The combined ratio can be affected significantly by natural catastrophe losses and other large losses as discussed in detail below. The combined ratio can also be affected by updated estimates of loss and loss expense reserves established for claims that occurred in prior periods, referred to as prior accident years. Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 3.3 percentage points in the first six months of 2025, compared with 3.4 percentage points in the same period of 2024. Net favorable development is discussed in further detail in Financial Results by property casualty insurance segment.

Current wording

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

Previous wording

The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first six months of 2025. That 58.4% ratio was 1.1 percentage points lower, compared with the 59.5% accident year 2024 ratio measured as of June 30, 2024, including an increase of 0.2 points in the ratio for large losses of $2 million or more per claim, discussed below. The ratio improvement of 1.1 percentage points included an increase of 1.9 points for the IBNR portion and a decrease of 3.0 points for the case incurred portion. It also included 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.

Current wording

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

Previous wording

The underwriting expense ratio decreased for the second quarter and first six months of 2025, compared with the same periods a year ago. The decreases were primarily due to premium growth outpacing growth in various expenses. The six-month 2025 ratio also included an unfavorable 0.3 points for the effect of reinstatement premiums. The ratio for both periods also included ongoing expense management efforts.

Current wording

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

Previous wording

Consolidated property casualty net written premiums for the second quarter and six months ended June 30, 2025, grew $274 million and $521 million compared with the same periods of 2024. Our premium growth initiatives from prior years have provided an ongoing favorable effect on growth during the current year, particularly as newer agency relationships mature over time.

Current wording

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

Previous wording

Consolidated property casualty agency new business written premiums decreased by $3 million for the second quarter and increased by $34 million for the first six months of 2025, compared with the same periods of 2024. The second quarter decrease was driven by the personal lines segment. Personal lines new business written premiums for second-quarter 2025 decreased 13% compared with a 54% increase in the second quarter of 2024. New agency appointments during 2025 and 2024 produced a $55 million increase in standard lines new business for the first six months of 2025 compared with the same period of 2024. As we appoint new agencies that choose to move accounts to us, we report these accounts as new business. While this business is new to us, in many cases it is not new to the agent. We believe these seasoned accounts tend to be priced more accurately than business that may be less familiar to our agent upon obtaining it from a competing agent.

Current wording

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

Previous wording

Net written premiums for Cincinnati Re, included in other written premiums, decreased by $43 million in the second quarter and increased $10 million for the six months ended June 30, 2025, compared with the same periods of 2024, to $164 million and $418 million, respectively. Cincinnati Re assumes risks through reinsurance treaties and in some cases cedes part of the risk and related premiums to one or more unaffiliated reinsurance companies through transactions known as retrocessions.

Current wording

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

Previous wording

Cincinnati Global is also included in other written premiums. Net written premiums for Cincinnati Global increased by $30 million in the second quarter and $24 million for the six months ended June 30, 2025, to $97 million and $173 million, respectively, compared with the same periods of 2024.

Current wording

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

Previous wording

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. A decrease in ceded premiums increased net written premiums by $4 million for the second quarter and an increase in ceded premiums decreased net written premiums by $76 million for the first six months of 2025, compared with the same periods of 2024. Other written premiums for the first six months of 2025 included a net unfavorable amount of $52 million for reinsurance treaty reinstatement premiums related to the California wildfires, including a favorable $12 million for Cincinnati Re and an unfavorable $64 million for our personal lines insurance segment.

Current wording

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

Previous wording

Catastrophe losses and loss expenses typically have a material effect on property casualty results and can vary significantly from period to period. Losses from catastrophes contributed 12.2 and 18.4 percentage points to the combined ratio in the second quarter and first six months of 2025, compared with 11.2 and 8.6 percentage points in the same periods of 2024. During the second quarter of 2025, there were no material changes to our estimates of ultimate losses related to the California wildfires.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous wording

We believe the inherent variability of aggregate loss experience for our portfolio of larger policies is greater than that of our portfolio of smaller policies, and we continue to monitor the variability in addition to general inflationary trends in loss costs. Our analysis continues to indicate no unexpected concentration of large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The second-quarter 2025 property casualty total large losses incurred of $82 million, net of reinsurance, was higher than the $70 million quarterly average during full-year 2024 and the $74 million experienced for the second quarter of 2024. The ratio for these large losses was 0.2 percentage points lower compared with last year's second quarter. The second-quarter 2025 amount of total large losses incurred unfavorably contributed to the increase in the six-month 2025 total large loss ratio, compared with 2024, in addition to a first-quarter 2025 ratio that was 2.3 points higher than the first quarter of 2024. We believe results for the three- and six-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million. Losses by size are discussed in further detail in results of operations by property casualty insurance segment.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

Agency renewal written premiums increased 9% for the second quarter and 8% for the first six months of 2025, compared with the same periods of 2024, including price increases. During the second quarter of 2025, our overall standard commercial lines policies averaged estimated renewal price increases at percentages near the high end of the mid-single-digit range. We continue to segment commercial lines policies, emphasizing identification and retention of those we believe have relatively stronger pricing. Conversely, we have been seeking stricter renewal terms and conditions on policies we believe have relatively weaker pricing, thus retaining fewer of those policies. We measure average changes in commercial lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for the respective policies.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous wording

Renewal premiums for certain policies, primarily our commercial casualty and workers' compensation lines of business, include the results of policy audits that adjust initial premium amounts based on differences between estimated and actual sales or payroll related to a specific policy. Audits completed during the first six months of 2025 contributed $48 million to net written premiums, compared with $54 million for the same period of 2024.

Current wording

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

Previous wording

New business written premiums for commercial lines increased $7 million and $28 million during the second quarter and first six months of 2025, compared with the same periods of 2024, as we continued to carefully underwrite each policy in a highly competitive market. Trend analysis for year-over-year comparisons of individual quarters is more difficult to assess for commercial lines new business written premiums, due to inherent variability. That variability is often driven by larger policies with annual premiums greater than $100,000.

Current wording

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

Previous wording

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. For our commercial lines insurance segment, a decrease in ceded premiums increased net written premiums by approximately $3 million and $6 million for the second quarter and first six months of 2025, compared with the same periods of 2024.

Current wording

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

Previous wording

•Combined ratio – The second-quarter 2025 commercial lines combined ratio improved by 6.2 percentage points, compared with the second quarter of 2024, including a decrease of 2.3 points in losses from catastrophes. The second-quarter combined ratio decreased by 0.4 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 4.9 points for the IBNR portion and a decrease of 5.3 points for the case incurred portion. For the first six months of 2025, the combined ratio improved by 5.5 percentage points, compared with the same period a year ago, including a decrease of 2.4 points in losses from catastrophes. The six-month 2025 combined ratio also included a decrease of 1.2 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.8 points for the IBNR portion and a decrease of 4.0 points for the case incurred portion. Underwriting results also included favorable reserve development on prior accident years, as discussed below. The current accident year ratios were measured as of June 30 of the respective years and included a decrease of 0.4 percentage points for the first six months of 2025 in the ratio for large losses of $2 million or more per claim, discussed below.

Current wording

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

Previous wording

Catastrophe losses and loss expenses accounted for 7.0 and 5.4 percentage points of the combined ratio for the second quarter and first six months of 2025, compared with 9.3 and 7.8 percentage points for the same periods a year ago. Through 2024, the 10-year annual average for that catastrophe measure for the commercial lines segment was 6.0 percentage points, and the five-year annual average was 6.6 percentage points.

Current wording

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

Previous wording

The net effect of reserve development on prior accident years during the second quarter and first six months of 2025 was favorable for commercial lines overall by $42 million and $85 million, compared with $29 million and $67 million for the same periods in 2024. For the first six months of 2025, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development, while our commercial auto line of business included net unfavorable development. The net favorable reserve development recognized during the first six months of 2025 for our commercial lines insurance segment was mainly for accident years 2024 and 2023 and was primarily due to lower-than-anticipated loss emergence on known claims. Our commercial casualty line of business included $3 million of favorable reserve development on prior accident years for the first six months of 2025. Reserve estimates are inherently uncertain as described in our 2024 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 51.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses. Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory. The second-quarter 2025 commercial lines total large losses incurred of $41 million, net of reinsurance, was lower than the quarterly average of $49 million during full-year 2024 and the $64 million of total large losses incurred for the second quarter of 2024. The increase in commercial lines large losses for the first six months of 2025 was primarily due to our commercial property line of business. The second-quarter 2025 ratio for commercial lines total large losses was 2.3 percentage points lower than last year's second-quarter ratio. The second-quarter 2025 amount of total large losses incurred contributed to the increase in the six-month 2025 total large loss ratio, compared with 2024, partially offsetting a first-quarter 2025 ratio that was 3.5 points higher than the first quarter of 2024. We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Current wording

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