Cincinnati Financial (CINF) investor relations material

Executive summary

• Net income for Q2 2026 was $1.255 billion ($8.05/share), up 83% year-over-year, driven by strong investment gains and increased earned premiums, despite higher catastrophe losses impacting underwriting results.

• Non-GAAP operating income for Q2 2026 was $224 million, down 28% year-over-year, mainly due to higher catastrophe losses.

• Book value per share reached a record $108.64 at June 30, 2026, up 6% since year-end 2025.

• Value creation ratio for the first half of 2026 was 8.0%, compared to 4.6% in the same period of 2025.

Financial highlights

• Total revenues for Q2 2026 were $4.274 billion, up 32% year-over-year; earned premiums grew 6% and investment income rose 12%.

• Net investment gains surged 177% to $1.308 billion in Q2 2026, primarily from unrealized equity gains.

• Property-casualty combined ratio rose to 100.8%, up 5.9 points year-over-year, with 2.3 points from higher catastrophe losses.

• Book value per share increased by $7.04 in Q2 2026, including $7.09 from investment gains.

• Debt-to-total-capital ratio improved to 4.6% at June 30, 2026.

Outlook and guidance

• Management expects continued premium growth above industry averages, with ongoing pricing discipline and investment in agency relationships.

• Combined ratio target remains within 92%-98% over five years; investment income growth is expected to continue as higher-yielding bonds are added.

• Management remains optimistic about further product and geographic diversification to mitigate catastrophe impacts.

• Dividend increases are expected to continue, reflecting strong capital and liquidity.

• Focus remains on long-term relationships with independent agents and maintaining profit-first discipline, especially in personal lines.