Cincinnati Financial (CINF) investor relations material

Executive summary

• Net income for Q2 2025 was $685M, up 120% year-over-year, driven by robust investment gains, premium growth, and disciplined underwriting despite elevated catastrophe losses.

• Book value per share reached a record $91.46 at June 30, 2025, up 2.6% since year-end.

• Value creation ratio was 4.6% for the first half of 2025, down from 8.2% in the prior year period.

• The board raised the quarterly dividend to $0.87 per share, marking the 65th consecutive annual increase.

• Personal lines were impacted by storms but showed improvement, with expectations for stronger profitability in the second half.

Financial highlights

• Q2 2025 net income: $685M vs. $312M in Q2 2024; Q2 EPS (diluted): $4.34 vs. $1.98.

• Total Q2 2025 revenues increased 28% year-over-year to $3.25B; earned premiums grew 15% to $2.48B.

• Non-GAAP operating income rose 52% to $311M; property casualty combined ratio improved by 3.6 points to 94.9%.

• Investment income increased 18% year-over-year, with bond interest income up 24% and favorable valuation changes in both equity and bond portfolios.

• Catastrophe losses after tax increased $45M in Q2, mainly from wildfires and storms.

Outlook and guidance

• Management expects continued benefit from price increases, disciplined pricing, and risk segmentation to improve underwriting profitability.

• Combined ratio target remains 92–98% over five years; YTD 2025 GAAP combined ratio was 103.8% due to elevated catastrophe losses.

• Expense ratio targeted below 30%, with ongoing efforts to further reduce it.

• Dividend growth and capital strength expected to support future shareholder returns.

• Underwriting discipline and data-driven analytics are expected to support profitable growth through market cycles.