CINF

Cincinnati Financial (CINF) is back in focus after a slower second quarter, with higher catastrophe losses and an underwriting loss, followed by a fresh dividend declaration and a larger share repurchase authorization. Cincinnati Financial shares are trading at US$172.38 after a mixed second quarter, with the stock falling 6.43% over the past 30 days but still up 7.74% over 90 days as investors reassess catastrophe risk and underwriting quality. Despite the recent volatility in the share price, total shareholder return of 14.44% over one year and 74.79% over three years points to a stronger long term outcome. The new dividend and expanded buyback plan add another layer to how the board is responding to that track record. Compare how Cincinnati Financial stacks up against insurance peers reacting to catastrophe risk and capital returns by scanning our hand picked 75 resilient stocks with low risk scores for potential alternatives. After a weaker quarter and a larger buyback plan, Cincinnati Financial now asks you to weigh recent execution against that capital return signal. Is it worth stepping in at US$172.38 or waiting for a clearer entry? The most followed narrative on Cincinnati Financial presents a fair value of $190 against the current $172.38 share price, which points to a modest valuation gap that analysts explain through a detailed set of revenue, margin, and earnings assumptions. Read the complete narrative. Read the complete narrative. Want to see what has to happen for that $190 fair value on Cincinnati Financial to hold up? The narrative leans on softer revenue, tighter margins, and a much richer earnings multiple than the wider insurance group. The key is how those moving parts fit together in the cash flow model and whether that earnings base can support a higher valuation over time. Result: Fair Value of $190 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Cincinnati Financial still faces two clear swing factors: rising catastrophe exposure that can unsettle quarterly earnings and tougher competition that may pressure pricing power. Find out about the key risks to this Cincinnati Financial narrative. The earlier narrative framed Cincinnati Financial as modestly undervalued against a $190 fair value based on analyst assumptions. A different lens comes from Simply Wall St’s DCF model, which estimates future cash flow value at $137.23 while the stock trades at $172.38. That points to an overvalued result and raises the question of which set of expectations you trust more. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Cincinnati Financial for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals around Cincinnati Financial, it makes sense to move fast, review the full picture of both concerns and positives, then decide where you stand with the 3 key rewards and 1 important warning sign. If Cincinnati Financial raises fresh questions for you, do not stop here. Use the Simply Wall St screener to line up other ideas that could better fit your goals. Target income first and review companies that feature strong payouts and resilience through the 11 dividend fortresses. Hunt for opportunities with solid fundamentals and clean balance sheets using the list of solid balance sheet and fundamentals (51 results). Get ahead of the crowd by scanning a focused group of potential future standouts with the 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CINF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Cincinnati Financial (CINF). Shares have lost about 6.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cincinnati Financial due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Cincinnati Financial Corporation before we dive into how investors and analysts have reacted as of late. CINF Q2 Earnings Miss Estimates, Revenues Rise Y/Y on Premium GrowthCincinnati Financial reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter.Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%.Quarterly results benefited from strong premium growth, improved pricing, and higher net investment income. However, weaker underwriting performance, driven by higher catastrophe losses, weighed on results. Earned premiums climbed 6.3% year over year to $2.6 billion, driven by higher renewal pricing, increased insured exposures and new business growth. The figure marginally missed the Zacks Consensus Estimate by 1.5%.Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%Total benefits and expenses increased 12.8% year over year to $2.7 billion, mainly due to higher insurance losses and underwriting, acquisition and insurance expenses.In its property and casualty insurance business, CINF reported an underwriting loss of $18 million, compared to an underwriting profit of $128 million in the year-ago quarter, reflecting higher catastrophe losses.  The Zacks Consensus Estimates was $62.6 million.The combined ratio, a key measure of underwriting profitability, deteriorated 590 basis points year over year to 100.8%, underperforming the consensus estimate of 97.1. Commercial Lines Insurance: Total revenues of $1.25 billion increased 3% year over year, driven by a 3% increase in earned premiums and higher investment income.Underwriting recorded a loss of $49 million, against a profit of $87 million in the prior-year quarter. The combined ratio deteriorated 1,120 basis points year over year to 104.1%. The Zacks Consensus Estimate was 99.8%.Personal Lines Insurance: Total revenues of $881 million increased 9% year over year, driven by a 9% rise in earned premiums. The Zacks Consensus Estimate was $889 million.Underwriting profit increased significantly year over year to $1 million from a loss of $14 million, missing the Zacks Consensus Estimate of $6 million. The combined ratio deteriorated 210 basis points year over year to 99.9%.  The Zacks Consensus Estimate was 98.1.Excess and Surplus Lines Insurance: Total revenues of $190 million grew 9% year over year, aided by a 9% increase in earned premiums. The Zacks Consensus Estimate was $185 million.Underwriting profit increased 19% year over year to $19 million, significantly surpassing the Zacks Consensus Estimate of $14.5 million. The combined ratio improved 60 basis points year over year to 90.5%. The Zacks Consensus Estimate was 92.4%.Life Insurance: Total revenues were $142 million, up 9% year over year, driven by 5% higher earned premiums and 10% higher investment income, net of expenses. The Zacks Consensus Estimate was $140.3 million. Total benefits and expenses increased 7% year over year to $104 million. As of June 30, 2026, Cincinnati Financial reported total assets of $43.2 billion, up 5.4% from the 2025-end level.Long-term debt was $791 million, remaining nearly flat from the 2025-end level.The company's debt-to-total-capital ratio improved to 4.6% from 4.9% at 2025-end.As of June 30, 2026, CINF’s book value per share increased 6.1% from the 2025-end level to $108.64. In the past month, investors have witnessed a downward trend in estimates review. Currently, Cincinnati Financial has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Cincinnati Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Kinsale Capital Group, Inc. (KNSL), a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended June 2026 more than a month ago. Kinsale Capital Group reported revenues of $548.52 million in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $5.54 for the same period compares with $4.78 a year ago. Kinsale Capital Group is expected to post earnings of $4.87 per share for the current quarter, representing a year-over-year change of -6.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%. Kinsale Capital Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Cincinnati Financial (NASDAQ:CINF) and its peers. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.9% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states. Cincinnati Financial reported revenues of $2.97 billion, up 6.9% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and net premiums earned estimates. The market seems disappointed with the results as the stock is down 7.2% since reporting and currently trades at $170.95. Read our full report on Cincinnati Financial here, it’s free. Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE:ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%. Essent Group reported revenues of $362.7 million, up 13.6% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates. The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $68.47. Is now the time to buy Essent Group? Access our full analysis of the earnings results here, it’s free. Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership. Radian Group reported revenues of $580.7 million, up 90.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates. As expected, the stock is down 6.3% since the results and currently trades at $36.71. Read our full analysis of Radian Group’s results here. With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE:EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States. Employers Holdings reported revenues of $220.2 million, down 10.6% year on year. This print beat analysts’ expectations by 8.4%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates. The stock is down 1.1% since reporting and currently trades at $49.22. Read our full, actionable report on Employers Holdings here, it’s free. Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing. HCI Group reported revenues of $246.7 million, up 11.1% year on year. This number topped analysts’ expectations by 2.5%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ net premiums earned estimates but a miss of analysts’ book value per share estimates. The stock is up 2.4% since reporting and currently trades at $185.22. Read our full, actionable report on HCI Group here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

CINCINNATI, Aug. 21, 2026 /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 FinancialCincinnati 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. Safe Harbor StatementOur 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: 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: 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: 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/cincinnati-financial-corporation-declares-regular-quarterly-cash-dividend-302857526.html

Cincinnati Financial’s second quarter reflected resilience in a softening property casualty market, but the company missed Wall Street’s revenue and non-GAAP profit expectations. Management pointed to modestly elevated catastrophe losses and persistent pricing discipline as key factors influencing results. CEO Steve Spray explained that, while catastrophe losses were “modestly higher than our longer-term average,” other property casualty metrics fell largely in line with internal expectations. The slowing premium growth, particularly in personal lines, was attributed to a deliberate focus on profitability and risk segmentation rather than aggressive expansion. Is now the time to buy CINF? Find out in our full research report (it’s free). Revenue: $2.97 billion vs analyst estimates of $3.00 billion (6.9% year-on-year growth, 1.2% miss) Adjusted EPS: $1.43 vs analyst expectations of $1.82 (21.3% miss) Operating Margin: 53.1%, up from 30.8% in the same quarter last year Market Capitalization: $27.27 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Phillips (Oppenheimer) asked about the spike in large commercial lines losses and whether it signaled a trend, to which CEO Steve Spray and CFO Mike Sewell explained the volatility was within expectations and not indicative of a broader shift. Michael Phillips (Oppenheimer) questioned whether commission structures might change to attract more business amid market softening. Spray emphasized that the company’s compensation to agents remains competitive and unchanged, with a focus on aligning agent incentives to profitability. Charles Peters (Raymond James) inquired about the drivers behind premium growth and the resilience of Cincinnati Re and Global segments. Spray clarified that exposure growth and rate accounted for most of the increase and that reinsurance operations are positioned to be opportunistic. Joshua Shanker (Bank of America) asked about the personal lines re-underwriting process, particularly in response to catastrophe risk. Spray described it as ongoing, with specific actions in California after wildfires and continued focus on rate adequacy and risk selection. Meyer Shields (KBW) questioned the increase in loss ratio for Cincinnati Global and its relation to Middle East conflicts. Sewell attributed the rise to a specific loss in Saudi Arabia and a European event cancellation, not to broader systemic issues. Looking ahead, StockStory analysts will be monitoring (1) continued progress on margin improvement in personal lines as prior rate increases earn through, (2) further evidence of underwriting discipline in commercial and reinsurance segments amid competitive pressures, and (3) the impact of expense management initiatives, especially technology investments, on operating efficiency. Shifts in catastrophe loss trends and developments in legal system risk will also be important to watch. Cincinnati Financial currently trades at $177.68, down from $184.23 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 3% consolidated net written premium growth to a combination of rate increases (approximately two-thirds) and higher insured exposures (approximately one-third). The 100.8% property casualty combined ratio was impacted by catastrophe losses that were modestly higher than the longer-term average, particularly in commercial lines. Pricing discipline remains the primary focus, with underwriters emphasizing risk segmentation on a policy-by-policy basis rather than chasing volume in a softening market. Commercial and excess and surplus lines saw renewal price increases near the high end of the low single-digit range, while personal lines achieved high single-digit increases. The Personal Lines segment is undergoing a strategic shift toward high net worth clients, which now represent over 60% of the segment's business. Cincinnati Re achieved 16% premium growth by remaining opportunistic and nimble in the assumed reinsurance market, despite broader industry pressures. Operational performance was supported by a 12% increase in investment income, driven by strong insurance cash flows and higher yields on fixed maturity securities. Management expects continued pressure on premium growth as market conditions temper, but will maintain a 'profit first' approach over volume acquisition. The company aims to further improve margins in Personal Lines by continuing to earn in rate increases and refining risk selection, particularly regarding catastrophe exposure. Expense management efforts will focus on keeping non-commission cost increases lower than premium growth, despite the need for ongoing technology and talent investments. Loss reserving strategy remains consistent, targeting the upper half of the actuarially estimated range to account for uncertainties like legal system abuse and severity trends. The company plans to maintain its agency-centric model, believing that deep relationships with independent agents provide a competitive advantage in a softening cycle. A $1.3 billion pre-tax net gain was recognized due to the increase in fair value of equity securities held in the investment portfolio. Commercial casualty experienced $14 million of unfavorable reserve development driven by updated ultimate loss estimates for a small number of insureds in older accident years. Cincinnati Global's results were impacted by a $10 million charge related to conflict in the Middle East and a $7.5 million reserve for a contingency event linked to a European heat wave. The company executed a higher-than-typical level of equity security sales ($678 million) as part of a portfolio rebalancing similar to actions taken in late 2024. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized recent large losses (greater than $2 million) as inherent volatility rather than a trend, noting the loss ratio for these claims remained consistent at 2.2%. Underwriters are performing after-action reviews on every large loss to ensure pricing and risk selection metrics remain robust. Management stated there is no pressure to amend commission structures, as their profit-sharing model already aligns agent incentives with profitable underwriting. Efforts to lower the expense ratio will focus on non-commission costs and corporate efficiencies rather than reducing agent compensation. The slowdown in personal lines growth was described as predictable following a period where the portfolio doubled in size over four years. Management confirmed a retrenchment in California following wildfire losses but reiterated a long-term commitment to becoming a premier high net worth carrier. The accident year casualty loss ratio is being held at prudent levels due to industry-wide concerns regarding legal system abuse and severity uncertainty. Management is waiting for further data progression before adjusting reserves, citing a need for caution in the current legal environment.

This article first appeared on GuruFocus. Net Income: Nearly $1.3 billion for Q2 2026, including $882 million after-tax from increased fair value of equity securities. Non-GAAP Operating Income: $224 million for Q2 2026, compared to $311 million a year ago. Combined Ratio: 100.8% for Q2 2026, up 5.9 percentage points from last year, with a 2.3 point increase from catastrophe losses. Net Written Premiums Growth: 3% for consolidated property casualty in Q2 2026. Commercial Lines Combined Ratio: 104.1%, increased by 11.2 percentage points, including 4.9 points from higher catastrophe losses. Personal Lines Combined Ratio: 99.9%, improved by 2.1 percentage points, including a 1.6 point decrease from lower catastrophe losses. Excess and Surplus Lines Combined Ratio: 90.5%, with net written premiums growth of 8%. Cincinnati Re Net Written Premiums Growth: 16% for Q2 2026, with a combined ratio of 87.6%. Cincinnati Global Combined Ratio: 110.8%, with premium growth of 1%. Life Insurance Net Income Growth: 15% for Q2 2026. Term Life Insurance Earned Premiums Growth: 5% for Q2 2026. Value Creation Ratio (VCR): 7.9% for Q2 2026. Investment Income Growth: 12% for Q2 2026. Bond Interest Income Growth: 14% for Q2 2026. Cash Flow from Operating Activities: $1.4 billion for the first six months of 2026, up 29% from a year ago. Dividends Paid: $143 million in Q2 2026. Share Repurchases: Approximately 1.3 million shares at an average price of $161.93, totaling $216 million. Book Value Per Share: $108.64 at the end of Q2 2026. Warning! GuruFocus has detected 7 Warning Sign with FMX. Is CINF fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cincinnati Financial Corp (NASDAQ:CINF) reported a net income of nearly $1.3 billion for the second quarter of 2026, including a significant after-tax gain from the increase in fair value of equity securities. The company's consolidated property casualty net written premiums grew by 3% for the quarter, reflecting pricing discipline and risk segmentation. Cincinnati Re's net written premiums increased by 16% with an impressive combined ratio of 87.6%, contributing to premium growth and risk diversification. The life insurance subsidiary experienced a strong quarter with 15% net income growth and a 5% increase in term life insurance earned premiums. Investment income grew by 12% in the second quarter, driven by strong cash flow from insurance operations and higher yields on the fixed maturity portfolio. The property casualty combined ratio increased to 100.8% in the second quarter of 2026, up by 5.9 percentage points compared to the previous year, due to higher catastrophe losses. Non-GAAP operating income decreased to $224 million for the quarter, down from $311 million a year ago. Commercial lines experienced a combined ratio increase to 104.1%, with a significant impact from higher catastrophe losses. The personal lines segment saw a slowdown in net written premium growth, impacted by lower new business premiums due to softening market conditions. Cincinnati Global reported a high combined ratio of 110.8%, indicating challenges in maintaining profitability in this segment. Q: Can you provide insights on the recent spike in large loss activity in the commercial lines? Is this a trend to watch closely? A: Stephen Spray, President and CEO, explained that the spike in large losses is not indicative of a trend but rather inherent volatility. Michael Sewell, CFO, added that the year-to-date large losses were consistent with past years, and there is no unexpected concentration of large losses by risk category or region. Q: How do you approach expense management, particularly in relation to agency commissions, in a soft market? A: Stephen Spray emphasized that Cincinnati Financial maintains a fair commission structure and a strong profit-sharing contract with agents, aligning with their agency-focused strategy. Michael Sewell noted efforts to keep non-commission costs lower than premium growth, despite rising costs. Q: What factors contributed to the 3% growth in net written premiums, and how are Cincinnati Re and Cincinnati Global performing? A: Stephen Spray stated that two-thirds of the growth came from rate increases and one-third from exposure growth. Cincinnati Re showed strong growth with a 16% increase in net written premiums, while Cincinnati Global experienced a modest 1% growth due to pricing and underwriting discipline. Q: With slowing growth in personal lines, how do you view the future of this segment? A: Stephen Spray indicated that while growth has slowed, it was expected following a period of rapid expansion. The focus remains on long-term profitability, with room for margin improvement through rate adjustments and risk selection. Q: Can you comment on the impact of the Middle East conflict on Cincinnati Global's loss ratio? A: Michael Sewell reported a net charge of about $10 million related to the conflict in Saudi Arabia and an additional $7.5 million reserve for a contingency event due to a heat wave in Europe, impacting the loss ratio. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Quarterly results benefited from strong premium growth, improved pricing, and higher net investment income. However, weaker underwriting performance, driven by higher catastrophe losses, weighed on results. Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation Quote Earned premiums climbed 6.3% year over year to $2.6 billion, driven by higher renewal pricing, increased insured exposures and new business growth. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8% Total benefits and expenses increased 12.8% year over year to $2.7 billion, mainly due to higher insurance losses and underwriting, acquisition and insurance expenses. In its property and casualty insurance business, CINF reported an underwriting loss of $18 million, compared to an underwriting profit of $128 million in the year-ago quarter, reflecting higher catastrophe losses.  The Zacks Consensus Estimates was $62.6 million. The combined ratio, a key measure of underwriting profitability, deteriorated 590 basis points year over year to 100.8%, underperforming the consensus estimate of 97.1. Commercial Lines Insurance: Total revenues of $1.25 billion increased 3% year over year, driven by a 3% increase in earned premiums and higher investment income. Underwriting recorded a loss of $49 million, against a profit of $87 million in the prior-year quarter. The combined ratio deteriorated 1,120 basis points year over year to 104.1%. The Zacks Consensus Estimate was 99.8%. Personal Lines Insurance: Total revenues of $881 million increased 9% year over year, driven by a 9% rise in earned premiums. The Zacks Consensus Estimate was $889 million. Underwriting profit increased significantly year over year to $1 million from a loss of $14 million, missing the Zacks Consensus Estimate of $6 million. The combined ratio deteriorated 210 basis points year over year to 99.9%.  The Zacks Consensus Estimate was 98.1. Excess and Surplus Lines Insurance: Total revenues of $190 million grew 9% year over year, aided by a 9% increase in earned premiums. The Zacks Consensus Estimate was $185 million. Underwriting profit increased 19% year over year to $19 million, significantly surpassing the Zacks Consensus Estimate of $14.5 million. The combined ratio improved 60 basis points year over year to 90.5%. The Zacks Consensus Estimate was 92.4%. Life Insurance: Total revenues were $142 million, up 9% year over year, driven by 5% higher earned premiums and 10% higher investment income, net of expenses. The Zacks Consensus Estimate was $140.3 million. Total benefits and expenses increased 7% year over year to $104 million. As of June 30, 2026, Cincinnati Financial reported total assets of $43.2 billion, up 5.4% from the 2025-end level. Long-term debt was $791 million, remaining nearly flat from the 2025-end level. The company's debt-to-total-capital ratio improved to 4.6% from 4.9% at 2025-end. As of June 30, 2026, CINF’s book value per share increased 6.1% from the 2025-end level to $108.64. Cincinnati Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written plunged 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. The combined ratio improved 220 basis points to 98. W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. W.R. Berkley’s net premiums written were $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. Operating revenues totaled $ 3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. Net investment income grew 10.4% to $418.7 million, supported by higher invested assets and higher portfolio yields. The figure topped our estimate of $407 million. The consensus estimate was $395.6 million. RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%. Gross premiums written increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Net investment income increased 16.8% year over year to $46 million. The combined ratio deteriorated 110 basis points year over year to 85.6. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Cincinnati Financial Corporation? Here are five stocks we like better. Net income surged to nearly $1.3 billion, boosted by an $882 million after-tax increase in the fair value of equity securities, while non-GAAP operating income fell to $224 million from $311 million year over year. Property-casualty net written premiums grew 3% as Cincinnati Financial prioritized pricing discipline in a softer market. The quarterly combined ratio worsened to 100.8%, though the first-half current accident-year ratio before catastrophes remained stable at 87.8%. Investment income increased 12%, and the company maintained strong capital metrics, including record book value of $108.64 per share, $5.7 billion in parent-company cash and marketable securities, and debt below 10% of total capital. Worried About a Fading Rally? Consider These 3 Dividend Stocks Cincinnati Financial (NASDAQ:CINF) reported second-quarter 2026 net income of nearly $1.3 billion, aided by an $882 million after-tax increase in the fair value of equity securities still held. Non-GAAP operating income declined to $224 million from $311 million a year earlier as the insurer maintained pricing discipline amid what management described as a softening property-casualty market. President and Chief Executive Officer Steve Spray said the company’s results reflected continued execution of its underwriting strategy, although catastrophe losses were modestly above its longer-term average. The property-casualty combined ratio was 100.8% for the quarter, worsening by 5.9 percentage points from the prior-year period. Catastrophe losses accounted for 2.3 percentage points of that increase. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Dividend Aristocrats or Dividend Kings: Which Is Best for You? For the first six months of 2026, Cincinnati Financial’s current accident-year combined ratio before catastrophe losses was 87.8%, essentially unchanged from 87.7% in the first half of 2025. Consolidated property-casualty net written premiums increased 3% during the second quarter. Spray said the slower growth reflected the company’s emphasis on policy-by-policy pricing and risk segmentation rather than pursuing premium volume in a softer market. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Management said roughly two-thirds of the consolidated premium growth came from pricing and about one-third came from increased insured exposures, including higher sales, payrolls and property values. Commercial lines: Net written premiums rose 3%, while the combined ratio increased 11.2 percentage points to 104.1%. Higher catastrophe losses added 4.9 percentage points to the ratio. Personal lines: Net written premiums increased 1%, with lower new-business premiums reflecting softer market conditions. The combined ratio improved 2.1 percentage points to 99.9%, including a 1.6-point benefit from lower catastrophe losses. Excess and surplus lines: Net written premiums grew 8%, and the segment reported a 90.5% combined ratio. Cincinnati Re: Net written premiums increased 16%, while its combined ratio was 87.6%. Cincinnati Global: Net written premiums rose 1%, and the combined ratio was 110.8%. Spray said commercial lines and excess-and-surplus lines renewal pricing averaged near the high end of the low-single-digit percentage range during the quarter. Personal auto and homeowners renewal pricing increases remained in the high-single-digit range. → 2 Stocks Built to Thrive If Inflation Refuses to Fade During the question-and-answer session, management said Cincinnati Re’s growth can be more opportunistic and seasonal because of its assumed reinsurance business. Cincinnati Global, meanwhile, has faced pressure in larger-property, shared-and-layered direct and facultative business, though the company said it remains focused on underwriting and pricing discipline. Chief Financial Officer Mike Sewell said the company recorded about 30 current-accident-year commercial large losses of more than $2 million through the first half, totaling approximately $112 million. That compared with 26 losses totaling $101 million in the first half of 2025. Sewell said the year-over-year increase in property large losses was primarily tied to one claim that reached the company’s working treaty, affecting results by roughly $15 million. He said large losses represented a 2.2% loss ratio in both periods when measured against earned premiums, and management did not see an unexpected concentration by risk category or geography. Spray said the company conducts reviews after every large loss and views the recent activity as inherent volatility rather than evidence of a broader trend. On personal lines, Spray said Cincinnati Financial had doubled the segment’s premium base over the four years through the end of 2025 and expected growth to moderate after the hard market. He said the company continues to see room for margin improvement in personal lines and is prioritizing profitability, underwriting terms, risk selection and catastrophe management. High-net-worth business accounts for a little more than 60% of personal lines premiums, according to Spray. He said the company expects that share to continue increasing, while remaining committed to middle-market personal-lines coverage because of its importance to the independent agencies it represents. Management said it has reassessed California homeowners exposure following wildfire losses, including aggregations, terms, conditions and pricing. Investment income rose 12% in the second quarter, supported by insurance operating cash flow and higher fixed-maturity portfolio yields. Bond interest income increased 14%, while the fixed-maturity portfolio’s average pretax yield reached 5.08%, up 15 basis points from a year earlier. The company made net fixed-maturity purchases of $316 million in the quarter and $940 million in the first half. It also reported net sales of equity securities totaling $678 million in the quarter. Sewell said the portfolio rebalancing was higher than in a typical quarter but was similar to activity in the third quarter of 2024 and did not signal a change in investment strategy. Before taxes, Cincinnati Financial recorded a $1.3 billion net gain in its equity portfolio and a $79 million gain in its bond portfolio during the quarter. At quarter-end, the investment portfolio’s net appreciated value was approximately $8.6 billion. Cash flow from operating activities totaled $1.4 billion in the first six months, up 29% from a year earlier. The underwriting expense ratio increased 1.2 percentage points in the quarter, driven by higher commission expense and the timing of certain costs. Sewell said the company aims to keep the expense ratio below 30% while continuing to invest in technology and employees. Prior-year reserve development provided a $42 million benefit in the second quarter, improving the combined ratio by 1.7 percentage points. However, commercial casualty experienced $14 million of unfavorable reserve development tied to updated loss estimates for a small number of insureds in one older accident year. Management said it is maintaining a prudent view of casualty reserves amid legal-system-abuse concerns and pressure on claim severity. Cincinnati Global’s quarterly results included about $10 million in net charges related to conflict in Saudi Arabia and a roughly $7.5 million reserve for a U.S. event-cancellation contingency, management said. The company paid $143 million in shareholder dividends and repurchased approximately 1.3 million shares for $216 million, or an average price of $161.93 per share. Book value reached a record $108.64 per share, while consolidated shareholders’ equity approached $17 billion. Parent-company cash and marketable securities totaled $5.7 billion, and debt to total capital remained below 10%. Cincinnati Financial Corporation (NASDAQ: CINF) is an insurance holding company headquartered in the Cincinnati area of Ohio that provides property and casualty insurance products and related services. Founded as part of the Cincinnati Insurance group, the company operates through a set of insurance subsidiaries to underwrite and service policies for both personal and commercial customers. Cincinnati Financial is publicly traded and emphasizes underwriting discipline and long-term relationships with its distribution partners and policyholders. The company's core business centers on property and casualty insurance, including homeowners, automobile, commercial casualty, commercial multi-peril, and specialty commercial coverages. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cincinnati Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

CINCINNATI, July 27, 2026 /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. 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 ProfitsStephen 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." $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. $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. $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. $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. $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. $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. $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 FinancialCincinnati 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. Safe Harbor StatementOur 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: 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: 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: 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. * * * 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 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. 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